8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

FORM 8-K 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 28, 2022

Commission File Number	Exact Name of Each Registrant as specified in its charter; State of Incorporation; Address; and Telephone Number			IRS Employer Identification No.
1-8962	PINNACLE WEST CAPITAL CORPORATION			86-0512431
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix	Arizona	85072-3999
	(602)	250-1000
1-4473	ARIZONA PUBLIC SERVICE COMPANY			86-0011170
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix	Arizona	85072-3999
	(602)	250-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	PNW	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

This combined Form 8-K is separately filed or furnished by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing or furnishing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing or furnishing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

Item 7.01    Regulation FD Disclosure.

As described under Item 8.01 below, Arizona Public Service Company (“APS” or the “Company”) filed an application and related schedules for an annual increase in retail base rates with the Arizona Corporation Commission (the “ACC”) on October 28, 2022. These materials are posted on Pinnacle West Capital Corporation's website at http://www.pinnaclewest.com/investors. The information on this website is not incorporated by reference into this report. The ACC docket number is E-01345A-22-0144. On October 28, 2022, APS also issued a press release announcing its filing with the ACC described above. A copy of the press release is attached hereto as Exhibit 99.1.

Item 8.01 Other Events.

2022 Retail Rate Case

APS filed an application with the ACC on October 28, 2022 (the “2022 Rate Case”) seeking an increase in annual retail base rates on the date rates become effective (“Day 1”) of a net $460 million. This Day 1 net impact represents a total base revenue deficiency of $772 million offset by proposed adjustor transfers of cost recovery to annual retail rates and adjustor mechanism modifications. The average annual customer bill impact of APS’s request on Day 1 is an increase of 13.6%.

The principal provisions of APS’s application are:

•A test year comprised of twelve months ended June 30, 2022, adjusted as described below;

•An original cost rate base of $10.5 billion, which approximates the ACC-jurisdictional portion of the book value of utility assets, net of accumulated depreciation and other credits;

•The following proposed capital structure and costs of capital:

	Capital Structure		Cost of Capital
Long-term debt	48.07	%	3.85	%
Common stock equity	51.93	%	10.25	%
Weighted-average cost of capital			7.17	%

•A 1% return on the increment of fair value rate base above APS’s original cost rate base, as provided for by Arizona law;

•A rate of $0.038321 per kWh for the portion of APS’s retail base rates attributable to fuel and purchased power costs;

•Modification of its adjustment mechanisms including:

▪eliminate the Environmental Improvement Surcharge and collect costs through base rates,

▪eliminate the Lost Fixed Cost Recovery mechanism and collect costs through base rates and the Demand Side Management Adjustment Charge ("DSMAC"),

▪maintain as inactive the Tax Expense Adjustor Mechanism,

▪maintain the Transmission Cost Adjustment mechanism,

▪modify the performance incentive in the DSMAC, and

▪modify the Renewable Energy Adjustment Charge to include recovery of capital carrying costs of APS owned renewable and storage resources;

•Changes to its limited-income program, including a second tier to provide an additional discount for customers with greater need; and

•Twelve months of post-Test Year plant to reflect used and useful projects that will be placed into service prior to July 1, 2023.

APS requested that the increase become effective December 1, 2023. APS cannot predict the outcome of its request.

Forward-Looking Statements

This Report on Form 8-K and the application and related schedules for an annual increase in retail base rates filed with the ACC on October 28, 2022 contain forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “believe,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by us. A discussion of some of these risks and uncertainties is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022 and are available on our website at http://www.pinnaclewest.com, which you should review carefully before placing any reliance on our forward-looking statements or disclosures. We assume no obligation to update any forward-looking statements, even if our internal estimates change, except as may be required by applicable law.

Item 9.01    Financial Statements and Exhibits.

    (d)    Exhibits

Exhibit No.	Registrant(s)	Description
99.1	Pinnacle West Arizona Public Service Company	Press Release dated October 28, 2022 related to APS Rate Case Filing
104	Pinnacle West Arizona Public Service Company	104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PINNACLE WEST CAPITAL CORPORATION
	(Registrant)
Dated: October 28, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY
	(Registrant)
Dated: October 28, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE		Oct. 28, 2022
Media Contact:	Sherine Zaya sherine.zaya@aps.com	Page 1 of 1

APS FILES RATE CASE TO MAINTAIN RELIABLE, RESILIENT ENERGY FOR CUSTOMERS

PHOENIX – Arizona Public Service Co. (APS) today filed a rate case to meet the needs of its customers by ensuring the existing and future supply of reliable energy. The case would strengthen the state’s grid at a time when extreme weather and increased demand place unprecedented reliance on the electricity system.

APS invests more than $1.5 billion a year to maintain and grow Arizona’s energy infrastructure. That means replacing aging equipment, improving technology, reducing the impacts of power outages and increasing resiliency to wildfires and other threats.

In Arizona, regulated utilities such as APS must file a request with the Arizona Corporation Commission (ACC) for approval to recover costs. The open, public process ensures transparency to APS customers.

APS rates have stayed relatively flat since 2018.

“We have a responsibility to keep electricity as affordable as possible, while continuously expanding the grid to ensure reliability and energy resiliency,” said APS President Ted Geisler. “Our rates remain below the national average and have stayed flat since 2018. Our goal is to continue serving customers with top-tier reliability, but we need to recover recent costs so that we can keep up with Arizona’s growth.”

Beyond recovering the costs to maintain reliable and affordable service, the filing also reflects investments in cost-effective renewables, including new solar and battery storage, and upgrades to its power plants including Palo Verde Generating Station – the nation’s largest power producer, all of it clean and carbon-free.

Customer-focused programs also are a priority, with the proposed addition of two off-peak holidays, the elimination of payment transaction fees and tiered discounts for limited income customers.

In this rate case, which is proposed to take effect Dec. 1, 2023, APS is requesting a net $460 million annual revenue increase. If approved as proposed, the monthly bill would increase 13.6 percent – about $18 or roughly 60 cents per day for an average residential customer using 1,023 kilowatt-hours – though the impact will vary based on individual energy use and service plan.

Next steps in the ratemaking process, which typically lasts for at least one year, consist of the ACC setting a procedural schedule, which includes hearing dates and public comment sessions. The process concludes with a vote by the ACC commissioners. More information is available at aps.com/ratecase.

APS serves more than 1.3 million homes and businesses in 11 of Arizona’s 15 counties, and is a leader in delivering affordable, clean and reliable energy in the Southwest. The company is committed to serving customers with 100% clean power by 2050. As owner and operator of Palo Verde Generating Station, the nation’s largest producer of carbon-free electricity, and with one of the country’s most substantial renewable energy portfolios, APS’s current energy mix is 50% clean. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

FORWARD-LOOKING STATEMENTS

This news release, the report on Form 8-K, and the application and related schedules for an annual increase in retail base rates filed with the ACC on October 28, 2022 contain forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “believe,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by us. A discussion of some of these risks and uncertainties is contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2022 and are available on our website at http://www.pinnaclewest.com, which you should review carefully before placing any reliance on our forward-looking statements or disclosures. We assume no obligation to update any forward-looking statements, even if our internal estimates change, except as may be required by applicable law.

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XML

Document Entity and Information DEI	Oct. 28, 2022
Entity Information [Line Items]
Entity Central Index Key	0000764622
Document Type	8-K
Document Period End Date	Oct. 28, 2022
Entity File Number	1-8962
Entity Emerging Growth Company	false
Title of 12(b) Security	Common Stock
Soliciting Material	false
Written Communications	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Trading Symbol	PNW
Security Exchange Name	NYSE
Entity Registrant Name	PINNACLE WEST CAPITAL CORPORATION
Entity Tax Identification Number	86-0512431
Entity Address, Address Line One	400 North Fifth Street, P.O. Box 53999
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85072-3999
City Area Code	(602)
Local Phone Number	250-1000
Amendment Flag	false
Entity Incorporation, State or Country Code	AZ
Arizona Public Service Company [Member]
Entity Information [Line Items]
Entity Central Index Key	0000007286
Document Type	8-K
Document Period End Date	Oct. 28, 2022
Entity File Number	1-4473
Entity Emerging Growth Company	false
Soliciting Material	false
Written Communications	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Registrant Name	ARIZONA PUBLIC SERVICE COMPANY
Entity Tax Identification Number	86-0011170
Entity Address, Address Line One	400 North Fifth Street, P.O. Box 53999
Entity Address, City or Town	Phoenix
Entity Address, State or Province	AZ
Entity Address, Postal Zip Code	85072-3999
City Area Code	(602)
Local Phone Number	250-1000
Amendment Flag	false
Entity Incorporation, State or Country Code	AZ