Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Barclays Mid-West Utilities Conference 2015
11 slides from Pinnacle West Capital's conference presentation, Aug 19, 2015
Slide 1: Powering Growth, Delivering Value
POWERING GROWTH DELIVERING VALUE Barclays Mid-West Utilities Conference August 19-21, 2015 Powering Growth, Delivering Value
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,” “
Slide 3: Value Proposition
We are a vertically integrated, VALUE PROPOSITION regulated electric utility in the growing southwest U.S. • Top quartile ratings in Customer Satisfaction, Reliability and Safety Operational • Palo Verde Nuclear Generating station continues record levels of electricity Excellence production • Discip
Slide 4: Arizona Economic Indicators
Business services, healthcare, ARIZONA ECONOMIC tourism, and consumer services INDICATORS leading job recovery – each growing 3-7% YoY Home Prices – Metro Phoenix Nonresidential Building Vacancy – Metro Phoenix Value Relative to Jan ‘05 Vacancy Rate 175 25% Office 150 20% Industrial 125 15% 100 10%
Slide 5: Resource Planning
ACC considering modifications to the IRP filing schedule, including RESOURCE PLANNING* delaying the 2016 IRP filing for one-year to allow time to consider the impacts of the Clean Power Plan MW Composition of Energy Mix by Resource* 14,000 Load Requirement Including Reserves 2014 12,000 27.7% 9.5% 1
Slide 6: Capital Expenditures
70% of capital expenditures are CAPITAL recovered through rate adjustors EXPENDITURES (30%) and depreciation cash flow (40%) ($ Millions) $1,285 $79 Other $1,111 $1,056 $92 $331 $100 Distribution $883 $73 $375 $325 $146 Transmission $2 $242 $180 $113 Renewable $192 $1 Generation $192 $178 $80 $63 $4
Slide 7: Rate Design Modernization
RATE DESIGN MODERNIZATION Rate design changes needed to align Rate Design Modernization Steps: fixed costs and revenue • Grid Access Charge filing on April 2, 2015 Costs – APS Revenue – APS Residential Classes Residential Classes – Interim solution (2010) (2010) – Seeking increase to $3.00/kw (or ab
Slide 8: Key Dates for Rate Design
KEY DATES FOR RATE DESIGN • Residential demand rates started • Time of Use rates initiated - due to central air conditioning load Early Nearly half of our residential (currently about 10% of customers 1980’s customers are on TOU rates have a rate with a demand charge) • Net metering Technical Worksh
Slide 9: APS Solar Innovation
APS SOLAR Partnering with Arizona installers INNOVATION APS Solar Partner Program Solar Innovation Study • Installing 10 MW of APS-owned residential • APS is conducting home rate study to rooftop solar implement and study various − Equates to approximately 1,500 customers technology configurations (
Slide 10: Arizona Corporation Commission
ARIZONA CORPORATION COMMISSION Terms to January 2017 Terms to January 2019 Susan Bob Bob Tom Doug Bitter Smith (R) Burns (R) Stump (R)* Forese (R) Little (R) Chairman * Term limited - elected to four-year terms (limited to two consecutive) 10 Powering Growth, Delivering Value
Slide 11: Financial Strength
FINANCIAL STRENGTH • Goal of a consolidated earned ROE more than 9.5%, weather-normalized • Sustainable cost management ingrained in business planning framework • Strong balance sheet o A- rating or better at S&P, Moody’s and Fitch, all with stable outlook1 o Currently expect up to an additional $30
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