Long-Term Debt and Liquidity Matters (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Components of long-term debt on the Consolidated Balance Sheets

The following table presents the components of long-term debt on the Consolidated Balance Sheets outstanding at December 31, 2015 and 2014 (dollars in thousands):

	Maturity	Interest	December 31,
	Dates (a)	Rates	2015			2014
APS
Pollution control bonds:
Variable	2029-2038	(b)	$	92,405		$	156,405
Fixed	2024-2034	1.75%-5.75%	211,150			249,300
Total pollution control bonds			303,555			405,705
Senior unsecured notes	2016-2045	2.20%-8.75%	3,375,000			2,875,000
Palo Verde sale leaseback lessor notes	2015	8.00%	—			13,420
Term loan	2018	(c)	50,000			—
Unamortized discount			(10,374		)	(9,206		)
Unamortized premium			4,686			4,866
Unamortized debt issuance cost	(d)		(27,896		)	(24,642		)
Total APS long-term debt			3,694,971			3,265,143
Less current maturities	(e)		357,580			383,570
Total APS long-term debt less current maturities			3,337,391			2,881,573
Pinnacle West
Term loan	2017	(f)	125,000			125,000
TOTAL LONG-TERM DEBTLESS CURRENT MATURITIES			$	3,462,391		$	3,006,573

(a) This schedule does not reflect the timing of redemptions that may occur prior to maturities.

(b) The weighted-average rate for the variable rate pollution control bonds was 0.01%-0.24% at December 31, 2015 and 0.03%-0.27% at December 31, 2014.

(c) The weighted-average interest rate was 1.024% at December 31, 2015.

(d) In the fourth quarter of 2015, we adopted a new accounting standard related to balance sheet presentation of debt issuance costs. See Note 2 for additional details.

(e) Current maturities include $108 million of pollution control bonds expected to be remarketed in 2016 and $250 million in senior unsecured notes that mature in 2016.

(f) The weighted-average interest rate was 1.174% at December 31, 2015 and 1.019% at December 31, 2014.

Principal payments due on Pinnacle West's and APS's total long-term debt

The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in thousands):

Year	Consolidated Pinnacle West		Consolidated APS
2016	$	357,580	$	357,580
2017	125,000		—
2018	82,000		82,000
2019	500,000		500,000
2020	250,000		250,000
Thereafter	2,538,975		2,538,975
Total	$	3,853,555	$	3,728,555

Schedule of estimated fair value of long-term debt, including current maturities

The following table represents the estimated fair value of our long-term debt, including current maturities (dollars in thousands):

	As of December 31, 2015				As of December 31, 2014
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Pinnacle West	$	125,000	$	125,000	$	125,000	$	125,000
APS	3,694,971		3,981,367		3,265,143		3,714,108
Total	$	3,819,971	$	4,106,367	$	3,390,143	$	3,839,108