Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Investor Presentation (October 2025)
36 slides from Pinnacle West Capital's investor presentation, Oct 14, 2025
Slide 1: Renewed, Reliable and Resilient
Renewed, Reliable and Resilient October 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
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, 2024 Consolidated assets $26B Market cap $9.64B Generating capacity owned or leased 6.5GW (year end) Customers 1.4M Current % from clean energy 54% Retail sales mix 52%/48% (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 30,000 to major cities in the region 20,000 • U.S. Census ranked Maricopa County 10,00
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: 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 11: SRB will expand our capacity to self-build generation with reduced lag
SRB will expand our capacity to self-build generation to meet customer need with reduced lag System Reliability Benefit Surcharge Key Features • Projects that compete on cost and reliability from All-Source Request for Proposals • Determines prudency of new generation between general rate cases • In
Slide 12: Transmission expansion will drive increased capital investment
Transmission expansion will drive increased capital investment Support Increase customer Access to resiliency growth markets Making progress on multiple strategic transmission opportunities as part of 2025-2027 capital expenditure plan Length Est. In- Line Voltage Status (miles) Service Sundance to
Slide 13: We are focused on maintaining customer affordability
We are focused on maintaining customer affordability APS rates have remained well below Maintaining Affordability the Average rate%ofchange annual inflation 2018-2024 • Disciplined cost management: Process improvements and preventative maintenance to CPI CPI (PHX) APS Rates 6% reduce operating costs
Slide 14: Future Financial Outlook
PINNACLE \WEST CAPITAL CORPORATION
Slide 15: 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 and supported by SRB 3. Managing a healthy capital stru
Slide 16: 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 17: 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 2024-2027 $9.66B CapEx Profile Today $2.65B $2.55B $2.40B $2.06B $870 $950 Q4 2023 $905 $807 Generation Transmission $675 $750 $9.66B $450 Distribution $340 Other $7.80B $665 $670 $637 $675 $273 $380 $335
Slide 18: Rate Base growing within our service territory
Rate Base growing within our service territory Current Approved Rate Base and Test Year Detail End-of-Year Rate Base and Growth Guidance1 ACC FERC ACC FERC Rate Effective Date 03/08/2024 06/01/2025 $3.2 Test Year Ended 6/30/20221 12/31/2024 $2.52 $2.12 Equity Layer 51.93% 52.28% Allowed ROE 9.55% 10
Slide 19: Optimized financing plan to support balanced capital structure
Optimized financing plan to support balanced capital structure 2025-2027 Financing Plan Funding Strategy • External equity to support balanced APS capital Approx. structure and expanded, accretive capital $7.6B investment • Equity needs < prior targeted 40% of new $700-900M capital PNW Equity $500M-
Slide 20: We are focused on cost control and customer affordability
We are focused on cost control and customer affordability Operations & Maintenance Guidance O&M Guidance (millions) • Reduced year-over-year core O&M excluding planned outages • Planned major outage in Q1 at Four Corners Unit 4 $70 $55 - $65 • Lean culture and declining O&M per MWh goal Planned $141
Slide 21: Long term goal remains declining O&M per MWh
Long term goal remains declining O&M per MWh PNW O&M (as adjusted) per MWh1 Average annual % change 2017-2024 O&M per MWh Weather Normalized Sales (MWh) CPI CPI (PHX) PNW O&M 4.67% 3.59% $32 2.97% 2017 2018 2019 2020 2021 2022 2023 2024 2024 1 O&M amounts, as adjusted, exclude RES/DSM of $141M and i
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 • Managing long-term $3.58 dividend payout ratio into sustained 65-75% $2.50 ~4.1% DPS CAGR 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Futu
Slide 23: We are focused on maintaining healthy credit ratings to support affordable growth
We are focused on maintaining healthy credit ratings to support affordable growth1 Balance Sheet Senior Targets Corporate Unsecured Short-Term • Solid investment-grade Ratings Ratings Ratings Outlook credit ratings APS • APS equity layer >50% • PNW FFO/Debt range Moody’s Baa1 Baa1 P-2 Stable of 14%-
Slide 24: Debt maturity profile shows well managed and stable financing plan
Debt maturity profile shows well managed and stable financing plan ($millions) APS Fixed APS Floating PNW Fixed PNW Floating $1,200 $1,000 $800 $600 $400 $200 $0 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 As of June 30, 2025 24
Slide 25: We have a stable foundation with solid execution going forward
We have a stable foundation with solid execution going forward • Service territory is one of the fastest growing in the nation with a diverse customer base • Improved regulatory environment with focus on reducing regulatory lag • Strong customer centric strategy focused on reliability and customer e
Slide 26: 2025 Rate Case
PINNACLE \WEST CAPITAL CORPORATION
Slide 27: 2025 APS rate case application
2025 APS rate case application Overview of rate request ($ in millions) key components Rate Base Growth $208 12 months Post-test Year Plant $82 Fair Value Increment $101 WACC (7.63%) $129 Other (Base fuel, depreciation study, etc.) $143 Total Revenue Requirement $662 Adjustor Transfers $(82) Net Rev
Slide 28: 2025 APS rate case application
2025 APS rate case application Overview of rate request ($ in millions) key components Test Year Ended December 31, 2024 Total Rate Base - Adjusted $15.3B ACC Rate Base - Adjusted $12.5B Embedded Long-Term Cost of Debt 4.26% Allowed Return on Equity 10.70% ROE Band for Formula Rate +/- 20bps Capital
Slide 29: 2025 APS rate case application
2025 APS rate case application Formula Rate Adjustment Mechanism (FRAM) proposal • Historic test year, with authorized ROE and capital structure approved in most recent rate case • Inclusion of 12 months projected plant • System Reliability Benefit costs transferred into each formula reset • No rate
Slide 30: Appendix
PINNACLE \WEST CAPITAL CORPORATION
Slide 31: 2025 Key Regulatory Dates
2025 Key Regulatory Dates Case/Docket # Q1 Q2 Q3 Q4 Notice of Intent filed May 15 ACC Letter of Sufficiency 2025 Rate Case E-01345A-25-0105: Application filed June 13 filed July 14 2025 PSA rate reset effective PSA reset Power Supply Adjustor (PSA) E-01345A-22-0144: March 1 to be filed Nov. 26 Filed
Slide 32: Residential PV Applications
Residential PV Applications 5,000 Residential DG (MWdc) Annual Additions 4,500 216 200 108 4,000 40 3,500 2022 2023 2024 2025 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2022 Applications 2023 Applications 2024 Applications 2025 Applications Monthly data equal
Slide 33: Renewable Energy & Demand Side Management expenses
Renewable Energy & Demand Side Management expenses1 ($ in millions pretax) Renewable Energy Demand Side Management $50 $45 $40 $35 $30 $26 $25 $16 $15 $18 $19 $12 $20 $15 $10 $17 $18 $18 $18 $14 $16 $5 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Renewable Energy and Demand Side Management expenses are substantiall
Slide 34: 2025 gross margin effects of weather
2025 gross margin effects of weather Variances vs. Normal ($ in millions pretax) $14 ($3) Q1 Q2 Q3 Q4 2025 Total Weather Impact: $12 Million All periods recalculated to current 10-year rolling average (2014 – 2023). 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: 2025 Planned Outage Schedule
2025 Planned Outage Schedule Coal, Nuclear and Large Gas Planned Outages Q1 Q2 Q4 Actual Duration in Actual Duration in Estimated Duration Plant Unit Plant Unit Plant Unit Days Days in Days Redhawk CC2 60 Palo Verde1 1 42 Palo Verde 3 36 Four Corners 4 72 Four Corners 4 12 1 Outage began at end of Q
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