Pinnacle West Capital Corporation · NYSE:PNW

Pinnacle West Capital — Corporate Update (April 2021)

14 slides from Pinnacle West Capital's corporate update, Apr 23, 2021

  1. Slide 1: Arizona Public Service Company 2021 Summer Preparedness

    Arizona Public Service Company 2021 Summer Preparedness

  2. Slide 2: Forward Looking Statements

    Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “

  3. Slide 3: APS Service Territory

    APS Service Territory • 11 of Arizona’s 15 counties • 34,646 square mile service area • Serving about 1.3 million customers • Nearly 500 substations; roughly 300,000 transformers; more than 550,000 poles and structures • Approximately 6,000 miles of transmission lines, 11,000 miles of overhead lines

  4. Slide 4: 2020 Recap

    2020 Recap APS Results • Arizona experienced the hottest summer on record, with 53 days above 110 degrees, and 14 days above 115 degrees • APS set an all-time peak in the summer 2020 at nearly 7700 MW • Customer partnerships contributed to a successful summer • Focus on resource planning, sufficient

  5. Slide 5: 2021 Peak Resources and Demand

    2021 Peak Resources and Demand 2019 Actual Peak 2020 Actual Peak Reserve Margin Peak Demand 5

  6. Slide 6: 2021 APS Resource Diversity

    2021 APS Resource Diversity 2021 Resource Peak Capacity (MWs) PEAK CAPACITY Nuclear 1,146 Coal 1,343 Natural Gas 5,094 Owned 3,296 PPAs 1,798 Short-term Purchases* 450 Microgrid/ESS (Quick Start) 32 Renewables 462 Solar 403 Owned Solar 120 Solar PPAs 283 Wind (PPAs) 33 Other (PPAs) 26 Incremental Cu

  7. Slide 7: APS has adequate fuel supply for all its generating facilities

    APS has adequate fuel supply for all its generating facilities • Palo Verde – 100% of fuel requirements contracted through 2026 – Overall station capacity factor 91.24% in 2020 • Conventional Generation – Fuel contracts in place for other APS generating facilities 7 7

  8. Slide 8: APS Natural Gas Supply and Transport

    APS Natural Gas Supply and Transport • Primary firm gas transportation contracts on three interstate gas pipelines: El Paso, Transwestern, North Baja (not pictured) • Access to San Juan and Permian gas supply basins • Firm gas transportation contracts to meet seasonal and annual peak needs 8 8

  9. Slide 9: Power Plant Summer Operations

    Power Plant Summer Operations • Seasonal readiness procedure in use since 2009 – Walkdowns ensure good material condition – Outfit employees with appropriate PPE – Review lessons learned – Survey critical control systems – Identify/prepare critical spares • Continued Response to COVID-19 – Adhering

  10. Slide 10: Transmission & Distribution

    Transmission & Distribution • 2020 Recap – 209 poles replaced – 2,536 wildfires statewide • Preventative Maintenance – Patrols and Inspections – Completed summer-specific substation maintenance • Infrastructure additions/replacements • Operational Strategies – Planned outages & Extreme Heat Days – I

  11. Slide 11: Fire Mitigation Preparedness

    Fire Mitigation Preparedness • Comprehensive Plan – Supports public safety, first responders, and land management • Fire Mitigation Patrols – 2,870 miles of overhead lines • Defensible Space Around Poles (DSAP) • Engineering Focus • Reclosing Strategy • Public Outreach – Send approximately 237,000 p

  12. Slide 12: Focus on the customer

    Focus on the customer • Improved Outage Map • Text alerts • Ice distribution • aps.com facelift • 24/7 call center • Continued response to COVID-19 12 12

  13. Slide 13: Emergency Management

    Emergency Management External Preparedness and Response • Update mutual assistance with neighboring utilities (SRP & TEP) • Coordination of summer operating study with nearby utilities • Fire and emergency management coordination with various Federal, State, and Local agencies. Internal Preparedness

  14. Slide 14: Summary

    Summary APS has adequate generation resources, fuel supplies and transmission capacity in place to reliably meet customer demand this summer. 14 14

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