Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Investor Day (November 2008)
14 slides from Pinnacle West Capital's investor day presentation, Nov 7, 2008
Slide 1: Palo Verde Overview
Palo Verde Overview Randy Edington Analyst Conference November 7, 2008
Slide 2: Palo Verde's Business Plan
We SAFELY and efficiently generate electricity for the long term Palo Verde's Business Plan
Slide 3: Improving Nuclear Generation Performance
Improving Nuclear Generation Performance '03 '04 '05 '06 '07 APS Capacity Factors 0.874 0.837 0.774 0.707 0.79 0.894 Industry Average 0.852 0.885 0.873 0.885 Capacity Factors APS Industry Average 12 Months Ended Sept '08 Top U.S. power producer past 15 years Goal to achieve consistent site capacity
Slide 4: Net Generation
Net Generation 2003 2004 2005 2006 2007 2008 Net Generation 28.6 28.1 25.8 24 26.8 30 Million MW Projected
Slide 5: O&M Cost Trends
O&M Cost Trends 2003 2013 O&M Costs - APS Share 70.2 81 86.3 101.3 119.3 133.1 136.2 131.6 125.7 120.5 116.8 Expected to peak in 2008 - 2009
Slide 6: Refueling and Steam Generator Replacement Outages
2003 2004 2005 2006 2007 2008 79.2 37.7 76.1 45.3 39 39 32.9 66.1 48.9 41.7 110.9 68.7 Total 112.1 103.8 125 87 149.9 107.7 Refueling and Steam Generator Replacement Outages Outage Days Projected Unit 1 Unit 2 Unit 3
Slide 7: Regulatory Activities
Regulatory Activities Site Integrated Business Plan (SIBP) Site Integrated Improvement Plan (SIIP) Confirmatory Action Letter (CAL) Expected to be cleared by end of 2009 NRC Reactor Oversight Action Matrix Unit 3 expected to be out of Column 4 by end of 2009 License Renewal Request
Slide 8: License Renewal
License Renewal Plan to file application by end of 2008 Request to extend operating licenses by 20 years License extension process expected to take about two years
Slide 9: Major Capital Improvements
Major Capital Improvements Completed projects Steam generators Low-pressure turbines Future projects Reactor vessel heads Rapid refueling packages Cooling towers All projects in capital expenditure forecasts
Slide 10: Steam Generators and Low-Pressure Turbines
Steam Generators and Low-Pressure Turbines Completed at all units in 2003 - 2007 Increased production capability 210 MW total site 61 MW APS share
Slide 11: Reactor Vessel Head Replacements
Reactor Vessel Head Replacements Planned timing (during normal refueling outages): Unit 2 - Fall 2009 Unit 1 - Spring 2010 Unit 3 - Fall 2010 Estimated outage duration About 60 days/unit Projected site costs (all units) $90-100 million total project APS share 29.1% APS share 29.1% APS share 29.1% AP
Slide 12: Rapid Refueling Packages
Rapid Refueling Packages Planned timing Concurrent with reactor vessel head replacements Projected site costs (all units) $100-110 million total project APS share 29.1%
Slide 13: Cooling Tower Replacements
Cooling Tower Replacements Currently in design stage Projected completion: 2015 Preliminary site project cost estimate (all units) $400 million total project APS share 29.1%
Slide 14: The Road to Excellence - 2013 Goals
The Road to Excellence - 2013 Goals Capacity factor greater than 88% Outages less than or equal to 30 days per unit Production cost less than or equal to $20 per megawatt-hour (2 cents per kWh) ISAR top quartile No NRC Findings greater than GREEN INPO 1