Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Investor Presentation (September 2026)
36 slides from Pinnacle West Capital's investor presentation, Sep 8, 2026
Slide 1: Powering Arizona’s Future
Powering Arizona’s Future September Investor Meetings
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: Table of Contents
Table of Contents 1. Company Profile 2. Growth Outlook & Energy Future 3. Financial Outlook 4. 2025 Rate Case
Slide 4: Company Profile
PINNACLE \WEST CAPITAL CORPORATION
Slide 5: Arizona’s largest electric company
Arizona’s largest electric company Service Territory Key facts as of Dec. 31, 2025 Consolidated assets $30B Market cap $10.62B Generating capacity owned or leased 6.3GW (year end) Customers 1.4M Current % from clean energy 58% Retail sales mix 50%/50% (Residential/Non-Residential) As of December 31,
Slide 6: Growth Outlook & Energy Future
Growth Outlook & Energy Future
Slide 7: Arizona continues to be an attractive service territory with strong customer growth
Arizona continues to be an attractive service territory with strong customer growth Arizona economy continues to New APS Customer Meter Sets be robust and attractive 40,000 • Phoenix housing is affordable compared to 30,000 major cities in the region 20,000 • Maricopa County ranked top county for 10
Slide 8: Best-in-class service territory supports high tech growth and economic development
Best-in-class service territory supports high tech growth and economic development Arizona is an attractive location for business growth • Infrastructure ─ close proximity to major markets in the West with accessibility by rail or truck • Weather predictability ─ low propensity for natural disasters
Slide 9: Arizona’s commercial and industrial growth is diverse
Arizona’s commercial and industrial growth is diverse Source: Arizona Commerce Authority 9
Slide 10: Strong track record of consistently robust sales growth
Strong track record of consistently robust sales growth Weather-Normalized Retail Sales Growth Continued trend of robust sales growth 10% • 10 consecutive quarters of growth within or 9.6% exceeding the original long-term guidance range of 9% 4%-6% • Strong C&I sales growth as extra high load factor
Slide 11: We have an improved regulatory environment
We have an improved regulatory environment Improvements at the Arizona Corporation Commission • Balanced, constructive and more consistent outcomes, including improved ROE to APS • Approval of Formula Rate Policy Statement • Reaffirmation of Rate Case Settlement Policy • Continued support of adjusto
Slide 12: Significant investment opportunity to serve increased demand
Significant investment opportunity to serve increased demand There is significant additional load we need to be ready to serve Which is requiring us to invest New gas generation: • Announced new gas generation of up to 2 GWs • Announced incremental investment of up to $440M for conversion of retired
Slide 13: Transmission expansion could drive significant capital investment
Transmission expansion could drive significant capital investment Cumulative Transmission CapEx $6 billion + of investment $2.1B $0.6B 2026 2028 2035 Major Transmission Projects in Development Transmission Investment Strategy • Investments in Extra High Voltage (EHV) transmission to Project Miles/kV
Slide 14: We are focused on maintaining customer affordability
We are focused on maintaining customer affordability APS rates have remained well below the Maintaining Affordability rate of inflation • Disciplined cost management: Process Average annual % change 2018-2025 improvements and preventative maintenance to CPI CPI (PHX) APS Rates reduce operating costs
Slide 15: Future Financial Outlook
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Slide 16: Our investor goals going forward
Our investor goals going forward 1. Long-term EPS growth of 5%-7% off original 2024 midpoint, supporting competitive total shareholder return 2. Optimized capital plan to reliably serve growing service territory, driving strong rate base growth 3. Managing a healthy capital structure with accretive
Slide 17: Long-term outlook potential remains solid
Long-term outlook potential remains solid EPS Growth off original 2024 midpoint1 Potential drivers for more consistent and timely cost recovery • Reduction of regulatory lag including formula rates • Rate case cadence and potential settlement of future rate cases 5%-7% • Continued support of adjusto
Slide 18: Capital plan to support reliability and continued growth within our service territory
Capital plan to support reliability and continued growth within our service territory APS Total 2025-2028 $10.35B1 $2.65B $2.70B $2.60B $2.40B $710 $740 $825 $890 Generation $695 $860 $550 Transmission $465 Distribution Other $765 $795 $750 $710 $460 $420 $380 $335 2025A 2026E 2027E 2028E Source: 20
Slide 19: Increased rate base growth within our service territory
Increased rate base growth within our service territory Current Approved Rate Base and Test Year Detail End-of-Year Rate Base and Growth Guidance1 ACC FERC ACC FERC $4.0 Rate Effective Date 03/08/2024 06/01/2026 $2.82 $2.52 Test Year Ended 6/30/20221 12/31/2025 $15.7 Equity Layer 51.93% 51.99% $12.2
Slide 20: Optimized financing plan to support balanced capital structure
Optimized financing plan to support balanced capital structure 2026-2028 Financing Plan Funding Strategy • External equity to support balanced APS capital Approx. $8.0B structure and expanded, accretive capital investment • Of the $1.0B-$1.2B total incremental need, $685M $1.0B-$1.2B is priced under
Slide 21: We are focused on cost control and customer affordability
We are focused on cost control and customer affordability Operations & Maintenance Guidance O&M Guidance Planned Outages (millions) RES/DSM • Core O&M remains flat with rapidly growing Core O&M customer base $64 • Lean culture and declining O&M per MWh goal $70 • Reduction of year-over-year O&M incl
Slide 22: We have a proven dividend growth track record
1 We have a proven dividend growth track record Annualized Dividends per Share Dividend Targets • Long-term dividend growth • Attractive dividend yield $3.64 • Managing long-term dividend payout ratio into sustained 65-75% $2.62 ~3.7% DPS CAGR 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 Futu
Slide 23: We are focused on maintaining healthy credit ratings to support affordable growth
We are focused on maintaining healthy credit ratings to support affordable growth Corporate Senior Short-Term Credit Objectives Unsecured Outlook Ratings1 Ratings • Maintain current investment-grade ratings at Ratings both PNW and APS APS • Target PNW FFO/Debt range of 14%-16% over the long-term Moo
Slide 24: Debt maturity profile shows well managed and stable financing plan
Debt maturity profile shows well managed and stable financing plan ($millions) APS Fixed APS Floating PNW Fixed $1,200 $1,000 $800 $600 $400 $200 $0 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 As of August 31, 2026 24
Slide 25: We have a stable foundation with solid execution going forward
We have a stable foundation with solid execution going forward • Service territory is one of the fastest growing in the nation with a diverse customer base • Improved regulatory environment with focus on reducing regulatory lag • Strong customer centric strategy focused on reliability and customer e
Slide 26: 2025 Rate Case
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Slide 27: 2025 APS Rate Case – Updated Positions
2025 APS Rate Case – Updated Positions Overview of rate request ($ in millions) key components Rate Base Growth $206 12 months Post-test Year Plant $162 Fair Value Increment $89 WACC (7.63%) $129 Other (Base fuel, depreciation study, etc.) $107 Total Revenue Requirement $692 Adjustor Transfers $(83)
Slide 28: 2025 APS Rate Case – Updated Positions
2025 APS Rate Case – Updated Positions Overview of rate request ($ in millions) key components Test Year Ended December 31, 2024 Total Rate Base - Adjusted $15.8B ACC Rate Base - Adjusted $13.1B Embedded Long-Term Cost of Debt 4.26% Allowed Return on Equity 10.70% ROE Band for Formula Rate +/- 40bps
Slide 29: 2025 APS Rate Case – Updated Positions
2025 APS Rate Case – Updated Positions Formula Rate Adjustment Mechanism (FRAM) proposal • Historic test year, with authorized ROE and capital structure approved in most recent rate case • Inclusion of 6 months post-test year plant • Removal of System Reliability Benefit and the Tax Expense Adjustor
Slide 30: 2025 APS Rate Case - Testimony Summaries
2025 APS Rate Case - Testimony Summaries APS Direct ACC Direct APS Rebuttal ACC Surrebuttal APS Rejoinder Testimony Testimony Testimony Testimony Testimony Return on Equity 10.70% 9.55% - 9.80%2 10.70% 9.55% - 9.80%2 10.70% Fair Value Increment 1.00% 0.20% 0.90% 0.20% 0.90% Maintain SRB, TCA, PSA, E
Slide 31: Appendix
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Slide 32: 2026 Key Regulatory Dates
2026 Key Regulatory Dates Case/Docket # Q1 Q2 Q3 Q4 • APS Rebuttal Testimony filed April 3 • Staff and Intervenor Surrebuttal Staff and Intervenor Direct Testimony filed May 1 • Initial briefs filed August 27 Final Decision estimated Testimony filed March 2 and 2025 Rate Case E-01345A-25-0105: • APS
Slide 33: Renewable Energy & Demand Side Management expenses
Renewable Energy & Demand Side Management expenses1 ($ in millions pretax) Renewable Energy Demand Side Management $50 $45 $40 $35 $30 $24 $25 $15 $18 $14 $20 $6 $15 $7 $10 $18 $19 $19 $17 $16 $5 $9 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025 2026 $143 Million Numbers may not foot due to rounding. $40 Million 1
Slide 34: 2026 gross margin effects of weather
2026 gross margin effects of weather Variances vs. Normal ($ in millions pretax) $28 $17 Q1 Q2 Q3 Q4 2026 Total Weather Impact: $45 Million All periods recalculated to current 10-year rolling average (2015 – 2024). Numbers may not foot due to rounding. 34
Slide 35: Wildfire Mitigation
Wildfire Mitigation Our current practices are comprehensive and multi-faceted: Vegetation Grid Hardening Asset Monitoring and Operational Management Investments Inspection Awareness Mitigations • Comprehensive right- • Ongoing distribution • Enhanced line • Dedicated team of • Non-reclosing of-way c
Slide 36: 2026 Planned Outage Schedule
2026 Planned Outage Schedule Generation Planned Outages Q2 Q4 Estimated Duration Plant Unit Duration in Days Plant Unit in Days Palo Verde1 2 45 Palo Verde 1 46 1 Outage began at end of Q1 36
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