April Investor Meetings
Table of Contents
Company Profile
Growth Outlook & Energy Future
Financial Outlook
2025 Rate Case
Company Profile
Service Territory
Key facts as of Dec. 31, 2025 | |
Consolidated assets | $30B |
Market cap | $10.62B |
Generating capacity owned or leased (year end) | 6.3GW |
Customers | 1.4M |
Current % from clean energy | 58% |
Retail sales mix (Residential/Non-Residential) | 50%/50% |
As of December 31, 2025.
Arizona's largest electric company Growth Outlook & Energy Future
Arizona economy continues to be robust and attractive
Phoenix housing is affordable compared to major cities in the region
Maricopa County ranked top county for economic development in 2025 by Site Selection Magazine
Ranked #1 in the nation for semiconductor manufacturing by Business Facilities Magazine
Phoenix is ranked #1 out of 15 top growth markets for manufacturing by Newmark Group, a global real estate firm
Arizona State University ranked #1 in Innovation for 11th straight year by U.S. News and World Report
Phoenix remains #1 as best positioned industrial real estate market by Commercial Café Report
New APS Customer Meter Sets
40,000
30,000
20,000
10,000
-
2013
2017
2021
2025
Residential Customer Growth1
3%
2.4%
2.5%
1.5%-2.5%
2%
2.2%
2.3%
2.1%
1%
0%
2021
2022
2023
2024
2025
2026E
APS Residential Growth
Natn'l Avg.-Residential
1 National average from 2025 Itron Annual Energy Survey Report.
Arizona continues to be an attractive service territory with strong customer growth Best-in-class service territory supports high tech growth and economic developmentArizona 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 and greatest solar irradiance in America
Workforce availability ─ three major universities graduating a skilled labor force
Affordability ─ business friendly policies and regulation
Large C&I customers as a growth driver
Accounts for 4%-6% of the 5%-7% long-term weather normalized sales growth1 guidance
Amplifier effect for jobs and surrounding communities leading to residential growth
Proposed rate design modifications including direct assignment of generation costs to ensure growth pays for growth
1 Forecasted guidance range through 2030.
Arizona's commercial and industrial growth is diverseSource: Arizona Commerce Authority
5.2%
Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025
0%
1%
2%
3%
4.0%*
4%
5.4%
5%
5.9%
5.5% 5.5%
5.9%
6%
6.8%
7%
Weather-Normalized Retail Sales Growth
9 consecutive quarters of growth within or exceeding the original long-term guidance range of 4%-6%
Strong C&I sales growth as extra high load factor customers continue to ramp
Total retail sales continued strength in 2025
2.0% Residential Sales Growth in 2025
7.5% C&I Sales Growth in 2025
2026 sales growth guidance of 4%-6%
Long term sales growth increased to 5%-7% and extended through 2030
Continued trend of robust sales growth
* Excludes $11M reduction to unbilled revenues in January 2025
Strong track record of consistently robust sales growth We have an improved regulatory environmentImprovements 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 adjustor mechanisms to improve cost recovery
Commitments by the Company
Sustain investment in customer experience improvements
Continue to find alignment with regulators and work with stakeholders on common issues
Advocate for reduced regulatory lag
Focus on customer affordability
Which is requiring us to invest
There is significant additional load we need to be ready to serve
Significant investment opportunity to serve increased demand8.6GW
2025
System Peak
4.5GW
Committed Load
~20GW
Uncommitted Load Opportunity
New gas generation:
Announced new gas generation build of up to 2 GWs
Anchor shipper on new gas pipeline, expected to be in service by late 2029
Palo Verde generating station:
Approximately $200 million incremental investment made during Q3 2025 on buyout option for nearly 100 MW of nuclear capacity previously under sale-leaseback
Increased investment in Palo Verde capital program of approximately $500M over the next 10 years
Strategic transmission:
Several major transmission investments to support new resources and the overall system buildout
Additional investment in large transmission projects to enable access to out of state generation and additional markets
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 |
|
Helios to Milligan | ~23 mi/230kV | 2027 | |
Pinnacle Peak to Ocotillo | ~50 mi/230kV | 2030 | |
Cotton Transmission Corridor: Panda to Freedom Lines #2 & #1 Jojoba to Rudd | ~80 mi/230kV ~29 mi/500kV | 2030/2031 2031 | |
Proposed Transmission for New Gas | TBD | 2030 | |
Source: APS 2026-2035 Ten Year Transmission System Plan
Transmission expansion could drive significant capital investmentAPS rates have remained well below the rate of inflation | ||
Average annual % change 2018-2025 | ||
CPI CPI (PHX) APS Rates | ||
4.24% | ||
3.62% | ||
2.67% | ||
2018 | 2019 2020 2021 2022 2023 2024 | 2025 |
Maintaining Affordability
Disciplined cost management: Process improvements and preventative maintenance to reduce operating costs
Customer growth: Long-term goal of declining O&M per MWh as service territory grows
Customer Programs: Innovative customer programs to help customers save energy and money
Balanced long-term capital plan: Infrastructure investments designed to maintain reliability yet minimize annual customer impact
Stakeholder engagement: Working with partners to ensure reliability, affordability, and recovery through appropriate rate design
Our investor goals going forward
Long-term EPS growth of 5%-7% off original 2024 midpoint, supporting competitive total shareholder return
Optimized capital plan to reliably serve growing service territory, driving strong rate base growth
Managing a healthy capital structure with accretive equity to support investment
Declining O&M per MWh with focus on customer affordability
Competitive shareholder dividend
Solid balance sheet and credit ratings
5%-7% CAGR
EPS Growth off original 2024 midpoint1
Reduction of regulatory lag including formula rates
Rate case cadence and potential settlement of future rate cases
Continued support of adjustor mechanisms
Continued economic development driving sales and customer growth
Continued cost management
Potential drivers for more consistent and timely cost recovery
1 Long-term EPS growth target based on the Company's current weather normalized compound annual growth rate projections from 2024-2028.
Long-term outlook potential remains solid Capital plan to support reliability and continued growth within our service territory
APS Total 2025-2028 $10.35B
$380
$750
$860
$710
$420
$795
$695
$740
$460
$765
$550
$825
$2.60B $2.65B $2.70B
$2.40B
$335
$710
$465
$890
Generation Transmission Distribution Other
2025A 2026E 2027E 2028E
Source: 2025-2028 as disclosed in the 2025 Form 10-K
End-of-Year Rate Base and Growth Guidance1
ACC FERC
2024
2025
2026
2027
2028
Projected
Rate base $ in billions, rounded
$12.23
$2.52
$15.7
$4.0
Current Approved Rate Base and Test Year Detail | ||
ACC | FERC | |
Rate Effective Date | 03/08/2024 | 06/01/2025 |
Test Year Ended | 6/30/20221 | 12/31/2024 |
Equity Layer | 51.93% | 52.28% |
Allowed ROE | 9.55% | 10.75% |
Rate Base | $10.36B2 | $2.47B |
1 Adjusted to include post-test year plant in service through 06/30/2023.
2 Rate Base excludes $215M approved through Joint Resolution in Case No. E-01345A-19-0236.
1 Guidance excludes CWIP amounts of $1.6B in 2024 and $2.7B-$3.2B in 2028.
2 Derived from APS annual update of formula transmission service rates.
3 Represents unadjusted ACC jurisdictional rate base consistent with regulatory filings.
Increased rate base growth within our service territory
2026 Financing Plan | |||
DEBT | Estimated Amount4 | Maturities | Completed |
APS | $1.2B | $250M | $600 |
PNW5 | $550M | $350M | $0 |
EQUITY | Estimated Amount | Priced6 | Settled |
PNW | $650M | $485M | $0 |
$300M-$350M
PNW Debt2
$1.0B-$1.2B
PNW Equity3
Approx.
$3.8B
Total Capital Investment
Cash from Operations1
$2.6B-$2.9B
APS Debt2
Approx.
$8.0B
2026-2028 Financing Plan
Funding Strategy
External equity to support balanced APS capital structure and expanded, accretive capital investment
Approximately 75% of the 2026 equity need has been priced
Maintain strong balance sheet and current credit ratings
1 Cash from operations is net of shareholder dividends.
2 APS and PNW debt issuance is net of maturities.
3 PNW equity is net of $485M already priced.
4 Includes maturities.
5 Excludes refinancing of existing term loan.
6 As of January 2026, amount represents $275M priced under PNW's Block Equity Forward in February 2024 and $210M priced through the At-the-Market (ATM) program.
Optimized financing plan to support balanced capital structure
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