Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Q3 2026 Earnings Presentation
31 slides from Pinnacle West Capital's earnings presentation, Nov 3, 2026
Slide 1: Powering Arizona’s Future
Powering Arizona’s Future Third-Quarter Financial Results November 3, 2026
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: Third-Quarter results
Third-Quarter results Operating Q3 2026 vs Q3 2025 Revenue less Fuel Pension & and Purchased OPEB non- Power1 O&M1 service $0.30 $0.03 Other taxes $0.01 credits, net $0.01 ($0.11) ($0.06) $0.02 $3.49 $3.39 D&A ($0.10) Income taxes Interest, net AFUDC All other Operating Revenue less Fuel and Purchas
Slide 4: 2026 EPS guidance
2026 EPS guidance Key Factors and Assumptions (as of November 3, 2026) 2026 Adjusted gross margin (operating revenues, net of fuel and $3.45 – $3.51 billion purchased power expenses, x/RES,DSM)1 • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 8.0%-10.0%
Slide 5: Key drivers & assumptions for 2026 EPS guidance
Key drivers & assumptions for 2026 EPS guidance 2026 EPS guidance of $5.05-$5.25 key drivers1 Long-term guidance and key drivers Weather-normalized retail Depreciation, amortization and • Long-term EPS growth target of 5%-7% off electricity sales growth of property taxes due to higher original 2
Slide 6: 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 7: 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 8: 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 • Total O&M remains flat with rapidly growing Core O&M customer base $64 $50-$60 • Lean culture and declining O&M per MWh goal $70 • Reduction of year-over-year
Slide 9: 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. structure and expanded, accretive capital investment $8.0B • Of the $1.0B-$1.2B total incremental need, ~$920M is priced under equity for
Slide 10: We are focused on maintaining healthy credit ratings to support affordable growth
We are focused on maintaining healthy credit ratings to support affordable growth Corporate Senior Short-Term Credit Objectives Unsecured Outlook Ratings1 Ratings • Maintain current investment-grade ratings at Ratings both PNW and APS APS • Target PNW FFO/Debt range of 14%-16% over the long-term Moo
Slide 11: Debt maturity profile shows well managed and stable financing plan
Debt maturity profile shows well managed and stable financing plan ($millions) APS Fixed APS Floating PNW Fixed $1,200 $1,000 $800 $600 $400 $200 $0 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 As of September 30, 2026 11
Slide 12: Appendix
PINNACLE \WEST CAPITAL CORPORATION
Slide 13: 2025 APS Rate Case – Updated Positions
2025 APS Rate Case – Updated Positions Overview of rate request ($ 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 $(83)
Slide 14: 2025 APS Rate Case – Updated Positions
2025 APS Rate Case – Updated Positions Overview of rate request ($ 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 15: 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 16: 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% Eliminate SRB, LFCR & Eli
Slide 17: 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 18: 2026 IRP – Customers’ annual electricity needs are projected to more than double by 2041
2026 IRP – Customers’ annual electricity needs are projected to more than double by 2041 Load Growth Highlights Load Forecast Growth (GWh) • Strong long-term growth: Retail energy demand is projected to increase ~42,000 GWh by 2041, more 80,000 than doubling current customer needs 70,000 25% • Custo
Slide 19: 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 ~720 MW at Saguaro (2030) and ~1280MW at Desert Sun (2032) • Announced incremental investment of up to $440M
Slide 20: Our committed load has increased to 5.8 GW and is heavily de-risked
Our committed load has increased to 5.8 GW and is heavily de- risked • More than 84% of committed load is GW 5.8 GW of Committed Load Committed Load Growth yet to be served, requiring 6 by Segment substantial generation and Other transmission build out 5 • The load growth is diversified: Residential
Slide 21: 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% • 11 consecutive quarters of growth within or 9.6% 9.5% exceeding the original long-term guidance range of 9% 4%-6% • Strong C&I sales growth as extra high load f
Slide 22: Transmission expansion could drive significant capital investment
Transmission expansion could drive significant capital investment Cumulative Transmission CapEx $6 billion + of investment $2.1B $0.6B 2026 2028 2035 Major Transmission Projects in Development Transmission Investment Strategy Project Miles/kV Est. in-service • Investments in Extra High Voltage (EHV)
Slide 23: Arizona’s commercial and industrial growth is diverse
Arizona’s commercial and industrial growth is diverse Source: Arizona Commerce Authority 23
Slide 24: Renewable Energy & Demand Side Management expenses
Renewable Energy & Demand Side Management expenses1 ($ in millions pretax) Renewable Energy Demand Side Management $50 $45 $40 $35 $30 $24 $25 $15 $18 $14 $20 $6 $9 $15 $7 $10 $18 $19 $19 $17 $16 $5 $13 $9 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2025 2026 $143 Million $62 Million Numbers may not foot due to roun
Slide 25: 2026 gross margin effects of weather
2026 gross margin effects of weather Variances vs. Normal ($ in millions pretax) $28 $28 $17 Q1 Q2 Q3 Q4 2026 Total Weather Impact: $73 Million All periods recalculated to current 10-year rolling average (2015 – 2024). Numbers may not foot due to rounding. 25
Slide 26: 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 26
Slide 27: Non-GAAP Measure Reconciliation
Non-GAAP Measure Reconciliation 2025 Actual2 2026 Guidance2 Operating revenues1 $5.34 billion $5.76 - $5.86 billion Fuel and purchased power expenses1 $1.94 billion $2.23 - $2.27 billion Gross Margin $3.40 billion $3.53 - $3.59 billion Adjustments: Renewable energy and demand side management program
Slide 28: 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 29: 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 30: Consolidated Statistics
Consolidated Statistics 3 Months Ended September 30, 9 Months Ended September 30, 2026 2025 Incr (Decr) 2026 2025 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residential $ 1,032 $ 963 $ 69 $ 2,222 $ 2,064 $ 158 Business 863 765 98 2,173 1,944 229 Total Retail 1,895 1,728 167
Slide 31: Consolidated Statistics
Consolidated Statistics 3 Months Ended September 30, 9 Months Ended September 30, 2026 2025 Incr (Decr) 2026 2025 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 2,525 2,551 (26) 7,082 7,198 (116) Coal 1,659 1,770 (111) 4,477 4,319 158 Gas 3,588 3,339 249 7,767 7,768 (1) Oil 0 0 (0) 0
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