Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Investor Day (November 2012)
22 slides from Pinnacle West Capital's investor day presentation, Nov 9, 2012
Slide 1: Palo Verde Overview
DELIVERING SUPERIOR SHAREHOLDER VALUE PALO VERDE OVERVIEW Randy Edington
Slide 2: Palo Verde Overview Agenda
2 PALO VERDE OVERVIEW AGENDA • Business plan/objectives • Performance trends • Major capital improvements • Fukushima follow-up • Operating license extensions
Slide 3: Palo Verde Mission
3 PALO VERDE MISSION We SAFELY and efficiently generate electricity for the long term.
Slide 4: Palo Verde Mission
4 PALO VERDE MISSION We SAFELY and efficiently generate electricity for the long term.
Slide 5: Palo Verde Mission
5 PALO VERDE MISSION We SAFELY and efficiently generate electricity for the long term.
Slide 6: Palo Verde Business Plan
6 PALO VERDE BUSINESS PLAN Our business plan guides all of our operations and initiatives. We SAFELY and efficiently generate electricity for the long term
Slide 7: Palo Verde Goals by 2013/2014
7 PALO VERDE GOALS BY 2013/2014 We target top-quartile cost per megawatt-hour by 2014. Safety • TISAR top quartile • No NRC Reactor Oversight Process issues: • No greater than GREEN findings • No cross-cutting issues • Industry metrics Cost • Less than $20 per MWh Generation (2 cents per kWh) • Grea
Slide 8: Palo Verde Business and Strategic Plans
8 PALO VERDE BUSINESS AND STRATEGIC PLANS
Slide 9: STARS Alliance
9 STARS ALLIANCE We team with other nuclear plants to create efficiencies and purchasing power. • Headquarters • Palo Verde (Arizona) • Callaway (Missouri) • Comanche Peak (Texas) CA KS • Diablo Canyon (California) MO AZ • San Onofre (California) • South Texas (Texas) TX • Wolf Creek (Kansas)
Slide 10: Palo Verde Net Generation
10 PALO VERDE NET GENERATION Palo Verde has exceeded 30 million megawatt-hours annual production seven times – the only U.S. plant to ever do so. 32 31.5 31.2 31.3 30.8 31 30.6 30.4 30.4 30.2 30 Million Megawatt Hours 29 28 27 26 25 24 23 22 21 20 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 20
Slide 11: Total Industrial Accident Rate
11 TOTAL INDUSTRIAL ACCIDENT RATE Palo Verde’s safety metrics compare favorably with industry norms and are improving. 0.6 ISAR TISAR 0.5 4th Quartile 0.4 ISAR/TISAR Rate 0.3 3rd Quartile 0.2 0.17 2nd Quartile 0.1 0.08 0.05 1st Quartile 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1
Slide 12: U.S. Nuclear Operating Costs
12 U.S. NUCLEAR OPERATING COSTS Palo Verde operating costs are below industry averages and improving. Dollars per Megawatt-Hour Industry Average Industry Median 2007 2008 2009 2010 2011 2012 Projected
Slide 13: Palo Verde Major Capital Projects
13 PALO VERDE MAJOR CAPITAL PROJECTS Completed capital projects position Palo Verde well for safe, efficient operations for the long term. • Major capital projects completed in past 10 years • Steam generator replacements • Reactor vessel head replacements • New rapid refueling packages • Main trans
Slide 14: Palo Verde Major Capital Projects
14 PALO VERDE MAJOR CAPITAL PROJECTS • Steam generators • Installed 2003-2007 • Reactor vessel heads • Installed 2009-2010
Slide 15: Palo Verde Major Capital Projects
15 PALO VERDE MAJOR CAPITAL PROJECTS Before • Rapid refueling After packages • Installed 2009-2010 • Increased efficiency and safety • Reduced future outage durations
Slide 16: Palo Verde Major Capital Projects
16 PALO VERDE MAJOR CAPITAL PROJECTS • Main transformers • 2008 to 2018 • Main generator rotors • Most recent outage • Circulating water system tie-in for potential future cooling towers • 2009-2010
Slide 17: Palo Verde Major Capital Projects
17 PALO VERDE MAJOR CAPITAL PROJECTS Energy Education Center • Public education • Response coordination in state-of-the-art Emergency Operations Facility • Joint Information Center
Slide 18: Fukushima Follow-Up
18 FUKUSHIMA FOLLOW-UP Fukushima Event Response Team Room
Slide 19: Fukushima Follow-Up
19 FUKUSHIMA FOLLOW-UP • Low risk of natural events at Palo Verde • Seismic and flooding walk-downs conducted • Changes in NRC regulations and industry standards Palo Verde
Slide 20: Fukushima Follow-Up
20 FUKUSHIMA FOLLOW-UP • FLEX / Beyond Design Bases Event Mitigation • Enhanced Procedures and Emergency Plans • Significant Investment in Safety
Slide 21: Palo Verde Economic Impact
21 PALO VERDE ECONOMIC IMPACT Palo Verde is estimated to favorably impact Arizona by $1.8 billion each year. • Largest single commercial taxpayer in Arizona • Nearly $50 million in property taxes annually • Local purchases of materials and services • Palo Verde employees donate approximately $1 mill
Slide 22: Palo Verde License Renewal
22 PALO VERDE LICENSE RENEWAL We SAFELY and efficiently generate electricity for the long term. 2067 2066 2065 2047 2046 2045 2027 2026 2025