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): November 3, 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 2.02. Results of Operations and Financial Condition.

    The following information is furnished pursuant to Item 2.02.

    On November 3, 2022, Pinnacle West Capital Corporation (“Pinnacle West”) issued a press release regarding its financial results for the fiscal quarter ended September 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

    The following information is furnished pursuant to Item 7.01.

    Pinnacle West is providing a copy of the slide presentation made in connection with the quarterly earnings conference call on November 3, 2022. This information contains Pinnacle West operating results for the fiscal quarter ended September 30, 2022, earnings outlook for 2022 and a quarterly consolidated statistical summary. The slide presentation is attached hereto as Exhibit 99.2 and is concurrently being posted to Pinnacle West’s website at www.pinnaclewest.com.

Item 9.01.    Financial Statements and Exhibits.

    (d)    Exhibits

Exhibit No.	Registrant(s)	Description
99.1	Pinnacle West Arizona Public Service Company	Earnings News Release issued on November 3, 2022
99.2	Pinnacle West Arizona Public Service Company	Pinnacle West Capital Corporation Third Quarter 2022 Results slide presentation accompanying November 3, 2022 conference call
104.0	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: November 3, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY
	(Registrant)
Dated: November 3, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE		November 3, 2022
Media Contact: Analyst Contact:	Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334
Website:	pinnaclewest.com

PINNACLE WEST REPORTS LOWER 2022 THIRD-QUARTER RESULTS

•Quarterly results buoyed by strongoperational performance, warmer weather than a year ago

•Employees ensure reliable customer service despite damaging monsoon season

•APS among most improved utilities for residential and business customer satisfaction

PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders for the 2022 third quarter of $326.3 million, or $2.88 per diluted share. This result compares with net income of $339.8 million, or $3.00 per share, for the same period a year ago.

Like the first two quarters of 2022, the company’s lower third-quarter results reflect the unfavorable outcome of the company’s prior rate case, which was implemented on Dec. 1, 2021. As a result of that rate decision, the Company is no longer deferring costs related to the Four Corners selective catalytic reduction (SCR) and Ocotillo modernization projects to a regulatory asset. These costs are now reflected in the income statement and result in a reduction in net income.

Other factors negatively affecting the 2022 third-quarter results were lower revenue driven by the inability to continue using alternative revenue accounting treatment for the lost fixed cost recovery (LFCR) mechanism; higher depreciation and amortization expense due to increased plant assets and updated depreciation rates; and higher operations and maintenance expense. These negative factors were partially offset by warmer weather than a year ago; customer growth of 2.0 percent; increased retail sales of 1.3 percent; and lower income taxes.

“During the quarter, our employees continued to do what they do best: maintain reliable electric service for our 1.3 million customers despite monsoon storms that created damaging winds, heavy rains and flash flooding,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner. “Our workforce safely and quickly restored service to customers after multiple volatile summer storms toppled a combined 811 poles – 255 more poles than the prior three summers combined.”

Guldner noted the company’s generation fleet also operated well. In particular, Palo Verde Generating Station – the nation’s largest energy producer, all carbon-free – recorded a summer capacity factor of 100.2% – its highest figure since tracking began in 2010.

“Our careful long-term planning, resource adequacy, flexibility and innovative programs proved beneficial to our customers throughout the summer,” he said, adding that the company also was able to assist neighboring utilities during an early-September heatwave that resulted in 15 energy emergency declarations by others across the West. “Those off-system sales directly benefit APS customers by lowering our overall costs while helping maintain regional grid stability.”

APS Commitment to Customer Satisfaction Reflected in Latest J.D. Power Results

Delivering value to Arizona Public Service (APS) customers went beyond just keeping lights on and air-conditioners running through the summer season. J.D. Power’s (JDP) 2022 third-quarter residential results also reflected APS’s commitment to improving customers’ overall experience.

Compared to 2021, APS has made quartile gains in every single driver of residential customer satisfaction. Consequently, overall satisfaction is now well above industry benchmarks when compared to the company’s large investor-owned peers. This improvement places the company firmly into the second quartile for residential customer satisfaction. APS’s strongest performing drivers through the first three quarters of 2022 were Customer Care (phone and digital), Power Quality and Reliability, Corporate Citizenship, and Billing & Payment. Additionally, JDP’s Business 2022 mid-year results place the company in the first quartile nationally for business customers.

“There’s no doubt in my mind that creating customer value is inseparably linked to increasing shareholder value,” Guldner said. “Our team has embraced this customer-centric focus to achieve an industry-leading customer experience, while demonstrating compassion and advocacy for our customers. As a result, our employees’ commitment and focus has led to APS being among the most improved utilities in the nation for both residential and business customer satisfaction.”

A Look to the Future

Looking forward, Guldner said, “We are creating long-term value for customers and shareholders by executing our strategy of operational excellence and sound capital investment to meet the energy needs of one of the fastest growing regions in the country. Additionally, disciplined cost management remains a central theme at the company and – along with our recent rate case filing – is a key to future earnings improvement.”

Filed last week, the company’s general rate case will focus on a return to balanced ratemaking, which will enable the company to make responsible and necessary investments to meet the needs of its customers – today and in the future. These investments include:

•Ensuring service reliability and resilience;

•Securing a clean, balanced energy supply for Arizona; and

•Continuously improving support for all customers, including expanded bill assistance programs for those who need additional support.

Financial Outlook

Given the positive year-to-date impacts of beneficial weather, strong sales and customer growth, the company increased its 2022 consolidated earnings guidance range to $4.20 to $4.35 per diluted share from a previously disclosed range of $3.90 to $4.10 per share. Key factors and assumptions underlying the 2022 outlook – including inflationary pressures – can be found in the third-quarter 2022 earnings presentation slides at pinnaclewest.com/investors.

Conference Call and Webcast

Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s financial results and recent developments, and to provide an update on the company’s long-term financial outlook, at noon ET (9 a.m. Arizona time) today, Nov. 3. The webcast can be accessed at pinnaclewest.com/presentations and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 947938. A replay of the call also will be available at pinnaclewest.com/presentations or by telephone until 11:59 p.m. ET, Thursday, Nov. 10, 2022, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 46637.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of approximately $23 billion, about 6,300 megawatts of generating capacity and nearly 5,900 employees in

Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to more than 1.3 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.

Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.

FORWARD-LOOKING STATEMENTS

This press release contains 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," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. Several factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:

•the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, inflation, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows or other unpredictable events;

•our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;

•variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customers and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements;

•the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and feverish temperature variations in the area where APS conducts its business;

•power plant and transmission system performance and outages;

•competition in retail and wholesale power markets;

•regulatory and judicial decisions, developments and proceedings;

•new legislation, ballot initiatives and regulation, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets;

•fuel and water supply availability;

•our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment;

•our ability to meet renewable energy and energy efficiency mandates and recover related costs;

•the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition and results of operations;

•risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty;

•current and future economic conditions in Arizona, including in real estate markets;

•the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, war, acts of war, international sanctions, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events, or similar occurrences;

•the development of new technologies which may affect electric sales or delivery;

•the cost of debt and equity capital and the ability to access capital markets when required;

•general economic conditions, including inflation rates, monetary fluctuations, and supply chain constraints;

•environmental, economic and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions;

•volatile fuel and purchased power costs;

•the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements;

•the liquidity of wholesale power markets and the use of derivative contracts in our business;

•potential shortfalls in insurance coverage;

•new accounting requirements or new interpretations of existing requirements;

•generation, transmission and distribution facility and system conditions and operating costs;

•the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region;

•the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and

•restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders.

These and other factors are discussed in Risk Factors described in Part 1, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021, and in Part II, Item 1A in of the Pinnacle West/APS Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2022, and Sept. 30, 2022, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.

# # #

PINNACLE WEST CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share amounts)

	THREE MONTHS ENDED		NINE MONTHS ENDED
	SEPTEMBER 30,		SEPTEMBER 30,
	2022	2021	2022	2021
Operating Revenues	$1,469,871	$1,308,254	$3,315,071	$3,004,978
Operating Expenses
Fuel and purchased power	556,571	427,452	1,174,027	895,514
Operations and maintenance	251,663	232,386	715,392	692,131
Depreciation and amortization	190,389	163,523	563,491	480,093
Taxes other than income taxes	53,475	57,608	165,591	176,586
Other expenses - net	200	(2,088)	1,410	5,361
Total	1,052,298	878,881	2,619,911	2,249,685
Operating Income	417,573	429,373	695,160	755,293
Other Income (Deductions)
Allowance for equity funds used during construction	9,133	11,352	30,966	30,549
Pension and other postretirement non-service credits - net	24,673	28,135	73,739	84,101
Other income	2,219	12,083	5,605	36,719
Other expense	(6,745)	(6,182)	(14,751)	(15,219)
Total	29,280	45,388	95,559	136,150
Interest Expense
Interest charges	72,185	64,067	205,677	188,782
Allowance for borrowed funds used during construction	(8,692)	(5,273)	(19,047)	(15,466)
Total	63,493	58,794	186,630	173,316
Income Before Income Taxes	383,360	415,967	604,089	718,127
Income Taxes	52,728	71,863	83,577	114,073
Net Income	330,632	344,104	520,512	604,054
Less: Net income attributable to noncontrolling interests	4,306	4,306	12,918	12,918
Net Income Attributable To Common Shareholders	$326,326	$339,798	$507,594	$591,136
Weighted-Average Common Shares Outstanding - Basic	113,211	112,923	113,162	112,878
Weighted-Average Common Shares Outstanding - Diluted	113,463	113,217	113,376	113,178
Earnings Per Weighted-Average Common Share Outstanding
Net income attributable to common shareholders - basic	$2.88	$3.01	$4.49	$5.24
Net income attributable to common shareholders - diluted	$2.88	$3.00	$4.48	$5.22

EX-99.2

POWERING GROWTH DELIVERING VALUE Third Quarter 2022 Results November 3, 2022 1

Forward Looking Statements 2 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,” “believe,” “plan,” “expect,” “require,” “intend,” “assume,” “project,” "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," 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 Pinnacle West or APS. These factors include, but are not limited to: the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, inflation, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows, or other unpredictable events; our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investments; our ability to meet renewable energy and energy efficiency mandates and recover related costs; the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; current and future economic conditions in Arizona, including in real estate markets; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, war, acts of war, international sanctions, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events, or similar occurrences; the development of new technologies which may affect electric sales or delivery; the cost of debt and equity capital and the ability to access capital markets when required; general economic conditions, including inflation rates, monetary fluctuations and supply chain constraints; environmental, economic and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facility and system conditions and operating costs; the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of our counterparties, power plant participants and power plant land-owners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and ACC orders. These and other factors are discussed in Risk Factors described in Part I, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Part II, Item 1A of the Pinnacle West/APS Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and Part II, Item 1A of the Pinnacle West/APS Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, which you should review carefully before placing any reliance on our financial statements, disclosures or earnings outlook. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. In this presentation, references to net income and earnings per share (EPS) refer to amounts attributable to common shareholders. Third Quarter 2022

3rd Quarter negative prior rate case impacts partially offset by weather 3 3rd Quarter 2022 vs. 3rd Quarter 2021 3Q 2021 3Q 2022 $3.00 $2.88 Operating Revenue less Fuel and Purchased Power1 $0.22 O&M1 & 2 $(0.13) D&A2 $(0.18) Operating Revenue less Fuel and Purchased Power Federal Tax Reform3 Weather Other Transmission LFCR GRC Base Rate Impact $ $ $ $ $ $ 0.34 0.23 0.05 0.04 (0.10) (0.34) Pension & OPEB Non- service Credits, net $(0.02) Other, net2 $(0.09) 1 Includes costs and offsetting operating revenues associated with renewable energy and demand side management programs, see slide 23 for more information. 2 Includes the impacts from the absence of the Four Corners Selective Catalytic Reduction (SCR) equipment and Ocotillo Modernization Project (OMP) deferrals, and the elimination of State Equalization Tax Rate (SETR). 3 TEAM adjuster was transferred into Base Rates upon the conclusion of APS’s prior rate case. 4 The Q3 2022 effective tax rate is impacted by a change in the timing of recognition for excess deferred taxes related to the 2017 Tax Cuts and Jobs Act. This timing difference is expected to resolve by year end. Third Quarter 2022 Other Taxes2 $0.03 Interest, net AFUDC $(0.05) Income Taxes4 $0.10

2022 EPS guidance Third Quarter 20224 Key Factors and Assumptions as of November 3, 2022 2022 Adjusted gross margin (operating revenues, net of fuel and purchased power expenses, x/RES,DSM,CCT) $2.59 – $2.61 billion • Retail customer growth about 1.5-2.5% • Weather-normalized retail electricity sales volume 2.0-3.0% higher compared to prior year o Includes 0.5-1.5% contribution to sales growth of new large manufacturing facilities and several large data centers • Assumes normal weather for full-year forecast Adjusted operating and maintenance (O&M x/RES,DSM,CCT) $880 – $895 million Other operating expenses (depreciation and amortization, and taxes other than income taxes) $977 – $979 million Other income (pension and other post-retirement non-service credits, other income and other expense) $59 – $63 million Interest expense, net of allowance for borrowed and equity funds used during construction (Total AFUDC ~$64 million) $213 – $215 million Net income attributable to noncontrolling interests $17 million Effective tax rate 13.7% Average diluted common shares outstanding 113.4 million EPS Guidance $4.20 – $4.35

Key drivers for EPS guidance1 1 • Retail customer growth 1.5%-2.5% • Weather-normalized retail electricity sales growth of 2%-3% • Transmission revenues • Operations and maintenance • Depreciation and amortization Third Quarter 20225 2022 key drivers • Long-term EPS growth target of 5%-7%2 • Retail customer growth 1.5%-2.5%3 • Weather-normalized retail electricity sales growth of 3.5%-4.5%3 1 As of November 3, 2022. Long-term guidance and key drivers • Property Tax • Interest expense • AFUDC • Pension and OPEB 2 Long-term EPS growth rate based on the Company’s current weather-normalized 5-year compound annual growth rate projections from 2022-2026 3 Forecasted guidance range from 2022-2024

2022 APS Rate Case Application 1 Third Quarter 20226 Overview of Rate Increase Request ($ in Millions) Key Components1 • Filed October 28, 2022 • APS has requested rates become effective December 1, 2023 • Docket Number: E-01345A-22-0144 • Additional details, including filing, can be found at http://www.pinnaclewest.com/investors Additional Details Rate Base Growth $130 12 Months Post Test Year Plant 140 Weighted Average Cost of Capital of 7.17% 78 1% Fair Value Increment 78 New Customer Programs, Coal Community Transition and Other 34 Total Revenue Request $460 Customer Net Bill Impact on Day 1 13.6% 1Numbers may not foot due to rounding

2022 APS Rate Case Application 1 • 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 Adjustor Charge • Modify the Renewable Energy Adjustor Charge to include recovery of capital carrying costs of APS owned renewable and storage resources • Modify the performance incentive in the Demand Side Management Adjustor Charge • Maintain the Power Supply Adjustor to ensure timely recovery of fuel and purchase power costs • Maintain as inactive the Tax Expense Adjustor Mechanism • Maintain the Transmission Cost Adjustment mechanism Third Quarter 20227 Adjustment Mechanisms Overview • Enhance the current limited income program to include a second tier to provide an additional discount for customers with a greater need • Waiver of credit card and payment fees New Customer Program Proposals

2022 APS Rate Case Application Third Quarter 20228 Key Financials Test year ended June 30, 2022 Total Rate Base - Adjusted $13.1 Billion ACC Rate Base - Adjusted $10.5 Billion Embedded Long-Term Cost of Debt 3.85% Allowed Return on Equity 10.25% Capital Structure Long-term debt 48.07% Common equity 51.93% Base Fuel Rate (¢/kWh) 3.8321 Post-test year plant period 12 months

$170 $165 $185 $190 $595 $560 $530 $500 $263 $210 $210 $210 $260 $350 $330 $560 $214 $240 $270 $190 2021 2022E 2023E 2024E Other Generation Clean Generation Transmission Distribution Other APS Total 2022-2024 $4.7B $1.50B $1.53B $1.53B $1.65B 9 Managed capital plan to support customer growth, reliability, and clean transition 2022–2024 as disclosed in the Third Quarter 2022 Form 10-Q. Third Quarter 2022

Total Approved Rate BaseAPS Rate Base Growth Guidance Year-End Steady rate base growth Third Quarter 202210 ACC FERC Rate Effective Date 12/01/2021 6/1/2022 Test Year Ended 06/30/20191 12/31/2021 Rate Base $8.6B $1.9B Equity Layer 54.7% 51.3% Allowed ROE 8.7% 10.75% 1 Adjusted to include post test-year plant in service through 06/30/2020 Rate base $ in billions, rounded $9.1 $9.8 $11.2 $1.8 $1.9 $2.4 2020 2021 2022 2023 2024 $11.7 Projected 5-6% Annual FERC ACC $10.9 $13.6

Our goal continues to be declining O&M per MWh 11 O&M per MWh Total O&M1 2021: $865M 2022: $880M-$895M 1 Total O&M amounts exclude RES/DSM, and include planned outage amounts of $54M in 2021 and $40M-$50M in 2022. Third Quarter 2022 $29/MWh

Forecasted sources of capital to fund investments through 2024 No plans to issue equity before end of next rate case 12 Approx. $3 billion Approx. $1 billion $4.7 billion APS Debt2 PNW Debt2 Cash from Operations1 $200-$300 million $400-$500 million 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. Third Quarter 2022 Total Capital Investment PNW Equity/ Alternatives

Strong balance sheet with attractive long-term debt maturity profile1 13 $M PNW Long-Term DebtAPS Long-Term Debt $0 $200 $400 $600 $800 $1,000 $1,200 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 As of September 30, 2022 Third Quarter 2022 1 Does not include debt at Bright Canyon Energy.

We continue to make progress towards key deliverables Third Quarter 202214 ➢ File appeal of last rate case ✓ Filed notice of appeal on December 17 ✓ Filed opening brief on April 27 ✓ Filed reply brief on July 27 ✓ Oral Arguments set for November 30 ➢ Make progress on financing plan ✓ Deferring equity issuance until after next rate case ➢ File new rate case to recover grid investments and reduce regulatory lag ✓ Filed Notice of Intent in June ✓ Filed rate case October 28, 2022 (Docket No. E-01345A-22-0144) ➢ Work with stakeholders on common issues ✓ Received approval of Customer Education and Outreach Plan ➢ Flat total O&M and declining O&M per MWh ✓ Declining O&M per MWh despite inflationary environment ➢ Continue progress towards Clean Energy Commitment ➢ Continue support in attracting high tech growth and economic development

APPENDIX

Arizona remains among the fastest growing states in the U.S. 16 Annual Employment Growth Last Three Years1 Steady Housing Growth2 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Single Family & Multifamily Housing Permits Maricopa County 8,425 43,378 2 Maricopa County population 4.5M, 62% of state population1 2019-2021 National Arizona (1)% 1% 18% CAGR Third Quarter 2022

Best-in-class service territory supports high tech growth and economic development 17 Our Approach: Focus on Four Main Areas Supports Influx of Manufacturing and Data Centers – Examples • Business attraction and expansion • Community development • Entrepreneurial support • Infrastructure support • Taiwan Semiconductor Began building $12B factory • Chang Chun Petrochemical Building 250k sq ft facility • Williams-Sonoma Leased 1.2M sq ft facility • Nestle USA Building 625k sq ft facility • KORE Power Building 1M sq facility • Kohler Co. Building 1M sq ft facility Data centers are projected to create up to 640 MW of capacity needs by 2035 Third Quarter 2022

A clear plan for clean energy transition 18 Progress Towards Meeting Clean Energy Commitment1 Pathway 2005 2019 2030 2050 Contracted for nearly 1,600 MW of clean energy and storage to be in service for APS customers by end of 2024 Issued All-Source RFP which seeks 1,000 – 1,500 MWs of resources, including up to 600 – 800 MWs of renewable resources to be in service from 2025 – 2027 Charted course for healthy mix of APS-owned and third party- owned assets, to be continued through future planned RFPs 24% 50% 65% 100% 1 Since January 2020 Third Quarter 2022

Clean Energy Commitment – ~1,600MW in development since 2020 Third Quarter 202219 Robust, Diverse Procurement Activity Energy Storage • 201 MW APS-owned resources to retrofit entire fleet of AZ Sun facilities • 300 MW under two long-term PPAs • All resources to be in service between 2022 and 2024 Solar • 150 MW owned by APS and sited near Redhawk generating facility • 160 MW under two long-term PPAs • All resources to be in service in 2023 Solar + Storage • 275 MW under two long-term innovative tolling PPAs • Resources to be in service in 2023 and 2024 Wind • 438 MW under two long-term PPAs • Resources to be in service by 2023 Demand Response • 75 MW under 5-year load management agreement; service began in 2021 • APS can call up to 18 load reduction events between June and September annually

2022 Planned Outage schedule Third Quarter 202220 Coal, Nuclear and Large Gas Planned Outages Q1 Q2 Q4 Plant Unit Duration in Days Plant Unit Duration in Days Plant Unit Estimated Duration in Days N/A N/A N/A Palo Verde 1 35 Palo Verde 3 35

2023 Planned Outage schedule Third Quarter 202221 Coal, Nuclear and Large Gas Planned Outages Q1 Q2 Q4 Plant Unit Estimated Duration in Days Plant Unit Estimated Duration in Days Plant Unit Estimated Duration in Days N/A N/A N/A Palo Verde 2 35 Palo Verde 1 35 Redhawk CC1 34

$1 $26 $6 Q1 Q2 Q3 Q4 Gross margin effects of weather Third Quarter 202222 Variances vs. Normal$ in millions pretax 2022 $33 Million All periods recalculated to current 10-year rolling average (2011 – 2020). Numbers may not foot due to rounding.

Renewable Energy & Demand Side Management expenses1 Third Quarter 202223 $7 $6 $10 $13 $10 $4 $12 $11 $12 $18 $13 $13 $16 $18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Demand Side Management Renewable Energy 2021 $89 Million 1 Renewable energy and demand side management expenses are offset by adjustment mechanisms. 2022 $73 Million Numbers may not foot due to rounding.

Residential PV applications1 Third Quarter 202224 1Monthly data equals applications received minus cancelled applications. As of September 30, 2022 approximately 147,466 residential grid-tied solar photovoltaic (PV) systems have been installed in APS’s service territory, totaling approximately 1,273 MWdc of installed capacity. Excludes APS Solar Partner Program, APS Solar Communities, and Flagstaff Community Partnership Program. Note: www.arizonagoessolar.org logs total residential application volume, including cancellations. Residential DG (MWdc) Annual Additions 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 Applications 2020 Applications 2021 Applications 2022 Applications 122 139 169 149 2019 2020 2021 2022

Our credit ratings support growth opportunities 25 Corporate Ratings Senior Unsecured Ratings Short-Term Ratings Outlook APS1 Moody’s A3 A3 P-2 Negative S&P BBB+ BBB+ A-2 Negative Fitch BBB+ A- F2 Negative Pinnacle West1 Moody’s Baa1 Baa1 P-2 Negative S&P BBB+ BBB A-2 Negative Fitch BBB+ BBB+ F2 Negative Balance Sheet Targets • Strong investment grade credit ratings • APS equity layer >50% • FFO/Debt range of 16%-18% 1 We are disclosing credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds. Ratings are as of November 3, 2022. Third Quarter 2022

Regulatory 2022 key dates Third Quarter 202226 ACC Key Dates / Docket # Q1 Q2 Q3 Q4 Power Supply Adjustor (PSA): E-01345A-19-0236 Effective Feb 1 Lost Fixed Cost Recovery: E-01345A-22-0042 Filed Feb 15 Approved May 18 and effective Jun 1 Transmission Cost Adjustor: E-01345A-19-0236 Effective Jun 1 2022 DSM/EE Implementation Plan: E-01345A-21-0087 2022 RES Implementation Plan: E-01345A-21-0240 Approved May 18 and effective Jun 1 2019 Rate Case: E-01345A-19-0236 Court of Appeals in process; filed opening brief Filed reply brief at Court of Appeals New TOU hours implemented: Sep 1 Court of Appeals oral arguments Nov 30 Resource Planning and Procurement: E-00000V-19-0034 IRP acknowledged Feb 10 Resource Comparison Proxy (RCP): E-01345A-22-0105 Approved July 12 and effective Sep 1 2022 Rate Case: E-01345A-22-0144 Application filed Oct 28 2022 Financing Application: E-01345A-22-0083 Application filed April 6

Pension & Other Post Retirement Benefits (“OPEB”) 27 Third Quarter 2022 97% 104% 107% YE 2019 YE 2020 YE 2021 Pension Funded Status1 • Liability driven investment strategy helps to minimize the impact of market volatility on funded status • Pension portfolio has an 80% target allocation to fixed income assets • Hedge 100% of interest rate volatility using a combination of fixed income portfolio assets and U.S. Treasury Futures contracts ($ in millions) 1 Excludes supplemental excess benefit retirement plan calculated on a PBO basis. . Benefit Expense Notes • Using the corridor accounting approach, gains and losses outside of the established corridor are amortized to benefit expense over the average service life • Gains and losses within the corridor do not impact benefit expense • Application of the corridor approach is a GAAP prescribed accounting method that is commonly utilized throughout the utility industry • Consistent with liability driven investing, at a higher funded status more historically-volatile assets are removed from the portfolio and replaced with fixed income securities, which is expected to reduce benefit cost volatility • Once fixed income assets in the portfolio are valued at year-end and any gains/losses are recognized, the future year expected return on fixed income assets changes with the then-prevailing level of fixed income yields Contributions 2021A 2022E 2023E 2024E Pension $100 $0 $0 $0 OPEB $0 $0 $0 $0

Components and Key Drivers of Benefit Costs1 Third Quarter 202228 Service Cost (a cost that increases Benefit Cost): • When discount rates decrease Service Cost increases and Benefit Cost increases (and vice versa) • Not impacted by asset assumptions Interest Cost (a cost that increases Benefit Cost): • When discount rates increase Interest Cost increases and Benefit Cost increases (and vice versa) • Not impacted by asset assumptions Expected Return on Plan Assets (an offset that decreases Benefit Cost): • Expected Return on Plan Assets increases and lowers Benefit Cost when (and vice versa): ▪ Future year beginning assets increase (e.g., fixed income assets increase when interest rates / yields decrease) ▪ The future year expected return on assets percentage increases (e.g., when interest rates / yields increase the future expected return percentage on fixed income assets increases) Amortization of Prior Service Credit (an offset that decreases Benefit Cost): • Not impacted by changes in discount rates or asset assumptions Amortization of Actuarial Losses (a cost that increases Benefit Cost; the opposite would be true for Actuarial Gains): • Increases when (and vice versa): ▪ Actual dollar return on plan assets is less than the expected return on plan assets (e.g., when fixed income assets decrease due to an increase in interest rates / yields) ▪ Liability increases (e.g., when discount rates decrease) • Note that only the net actuarial cumulative gain or loss is applied to the corridor 1 Represents some of the primary components of benefit cost, being disclosed to enhance the understanding of key drivers; however, these components and drivers may not exhaustively account for all factors that comprise benefit cost in a given period. Benefit cost components are sensitive to changes in interest rates and market returns, often with offsetting impacts from various drivers. The sensitivity of benefit costs to changing interest rates and market returns can not necessarily be extrapolated. While increases in discount rates impact benefit costs, these impacts are less sensitive and impactful to benefit costs the further from 0% the discount rate moves.

Consolidated statistics1 Third Quarter 202229 3 Months Ended June 30 Numbers may not foot due to rounding. 3 Months Ended June 30 1 Retail electricity sales in kWh, adjusted to exclude the effects of weather variations, for the year ended December 31, 2021 compared with the prior-year period increased 4.2%, which reflects a correction to 2020 commercial and industrial customer sales volumes of 111 GWh. 3 Months Ended September 30, 9 Months Ended September 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residential $ 743 $ 682 61 $ 1,648 $ 1,554 $ 94 Business 548 481 67 1,370 1,216 154 Total Retail 1,291 1,163 128 3,018 2,771 247 Sales for Resale (Wholesale) 140 108 31 198 144 54 Transmission for Others 36 36 0 91 78 14 Other Miscellaneous Services 3 1 1 7 13 (5) Total Electric Operating Revenues $ 1,470 $ 1,308 162 $ 3,315 $ 3,005 $ 310 ELECTRIC SALES (GWH) Retail Residential 5,389 5,188 201 11,824 11,569 256 Business 4,768 4,478 290 12,101 11,442 658 Total Retail 10,157 9,666 491 23,925 23,011 914 Sales for Resale (Wholesale) 1,376 1,701 (326) 2,603 2,810 (207) Total Electric Sales 11,532 11,368 165 26,528 25,821 707 RETAIL SALES (GWH) - WEATHER NORMALIZED Residential 5,326 5,416 (90) 11,539 11,517 22 Business 4,763 4,542 221 12,047 11,454 593 Total Retail Sales 10,088 9,958 131 23,587 22,972 615 Retail sales (GWH) (% over prior year) 1.3% 4.0% 2.7% 3.5% AVERAGE ELECTRIC CUSTOMERS Retail Customers Residential 1,202,870 1,178,117 24,753 1,199,245 1,173,646 25,599 Business 141,619 140,013 1,606 141,169 139,845 1,324 Total Retail 1,344,489 1,318,130 26,360 1,340,414 1,313,491 26,923 Wholesale Customers 56 50 6 54 45 9 Total Customers 1,344,545 1,318,179 26,366 1,340,469 1,313,536 26,932 Total Customer Growth (% over prior year) 2.0% 2.3% 2.1% 2.2% RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer) Residential 4,428 4,597 (170) 9,622 9,813 (191) Business 33,630 32,437 1,193 85,340 81,908 3,432

Consolidated statistics Third Quarter 202230 Numbers may not foot due to rounding. 3 Months Ended June 30 3 Months Ended September 30, 9 Months Ended September 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 2,532 2,488 44 7,121 7,026 94 Coal 2,591 2,349 242 6,252 4,884 1,369 Gas, Oil and Other 2,814 3,096 (282) 6,451 7,684 (1,233) Renewables 155 169 (14) 452 506 (54) Total Generation Production 8,092 8,102 (10) 20,276 20,100 176 Purchased Power - - Conventional 2,389 3,083 (693) 4,294 5,079 (785) Resales 1,091 1,041 49 1,281 1,187 95 Renewables 493 468 25 1,866 1,660 206 Total Purchased Power 3,973 4,592 (619) 7,441 7,925 (484) Total Energy Sources 12,066 12,695 (629) 27,717 28,026 (308) POWER PLANT PERFORMANCE Capacity Factors - Owned Nuclear 100% 98% 2% 95% 94% 1% Coal 86% 78% 8% 70% 55% 15% Gas, Oil and Other 36% 39% (4)% 27% 33% (5)% Solar 31% 34% (3)% 30% 34% (4)% System Average 58% 58% (0)% 49% 49% 0% 3 Months Ended September 30, 9 Months Ended September 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) WEATHER INDICATORS - RESIDENTIAL Actual Cooling Degree-Days 1,266 1,105 161 1,836 1,680 156 Heating Degree-Days Not Applic. Not Applic. 454 506 (52) Average Humidity 35% 38% (3)% 28% 29% (1)% 10-Year Averages (2011 - 2020) Cooling Degree-Days 1,256 1,256 - 1,761 1,761 - Heating Degree-Days Not Applic. Not Applic. 448 448 - Average Humidity 30% 30% - 25% 25% -

XML

Document Entity and Information DEI	Nov. 03, 2022
Entity Information [Line Items]
Entity Central Index Key	0000764622
Document Type	8-K
Document Period End Date	Nov. 03, 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	Nov. 03, 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