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): August 3, 2023

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 August 3, 2023, Pinnacle West Capital Corporation (“Pinnacle West”) issued a press release regarding its financial results for the fiscal quarter ended June 30, 2023 and its earnings outlook for 2023. 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 August 3, 2023. This information contains Pinnacle West operating results for the fiscal quarter ended June 30, 2023 and its earnings outlook for 2023. 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 August 3, 2023
99.2	Pinnacle West Arizona Public Service Company	Pinnacle West Capital Corporation Second Quarter 2023 Results slide presentation accompanying August 3, 2023 conference call
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: August 3, 2023	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY
	(Registrant)
Dated: August 3, 2023	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer

EX-99.1

FOR IMMEDIATE RELEASE		August 3, 2023
Media Contact: Analyst Contact:	Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334
Website:	pinnaclewest.com

PINNACLE WEST REPORTS LOWER 2023 SECOND-QUARTER FINANCIAL RESULTS

•Mild weather and higher operating costs impact earnings

•APS supports customers through the summer season

•Company seeks flexible energy resources to serve Arizona's growing energy needs

PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported a consolidated net income attributable to common shareholders of $106.7 million, or $0.94 per diluted share of common stock, for the quarter ended June 30, 2023. This result compares with consolidated net income of $164.3 million, or $1.45 per diluted share, for the same period in 2022.

Weather was a major driver in the lower second-quarter results, with the Phoenix region experiencing the mildest June since 2009. Other factors included higher operations and maintenance expenses (including increases in non-nuclear generation operating costs and higher transmission, distribution and customer service costs), higher interest charges and lower pension and other postretirement non-service credits. These were partially offset by higher transmission revenue and higher revenue from the Lost Fixed Cost Recovery (LFCR) mechanism.

“We saw cooler-than-usual temperatures in the second quarter compared to a warmer-than average second quarter in 2022. This June was especially mild. Given how big an impact air conditioning has on energy use in the low desert, it’s no surprise that our financial results are lower this quarter,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner, citing National Weather Service Phoenix data showing that the average June 2023 temperature was almost five degrees cooler than June 2022.

“While the heat was slow to get started, it certainly showed up in time for the Fourth of July, and the Phoenix area set a new record for consecutive days above 110 degrees in July. On July 20, the company hit a new all-time peak of 8,193 megawatts,” said Guldner. “Thanks to our employees’ impressive planning and operating performance, customers continued to receive the reliable service they count on. This performance – combined with robust customer growth and a resolution to the 2019 rate case appeal in June – puts us in a strong position entering the second half of the year.”

Summer is Our Season

June 21 may have been the first official day of summer, but employees at Arizona Public Service Co. (APS), the company’s regulated utility and principal subsidiary, work hard year-round to prepare for the season’s heat, wildfire risks and potential storms.

As temperatures rise, the company helps customers get ready too. Practical tips and energy-saving strategies can aid in managing monthly electricity bills, from installing a smart thermostat through the Cool Rewards demand response program to using the rate plan comparison tool to ensure customers are on the right plan for their energy use. APS also works with communities at higher fire risk to raise awareness about defensible space and having an emergency plan in place.

The company joins forces with local nonprofits to provide heat relief to vulnerable individuals throughout Arizona. In partnership with St. Vincent de Paul, APS helps shelter families through emergency community housing and eviction prevention assistance and supports The Salvation Army’s cooling and hydration stations in nine Arizona counties, among other initiatives.

Ensuring adequate energy supply is another important part of our summer readiness, and several projects came online recently, including 141 megawatts (MW) of battery energy storage at AZ Sun solar sites, 150 MW at the Agave Solar Plant and 238 MW of wind energy through a power purchase agreement.

Seeking Flexible, Innovative Energy Resources for the Future

APS not only is focused on serving customers this summer; the company is taking steps to secure energy supply for years to come. In June, APS issued an all-source request for proposal (RFP) seeking project proposals for flexible and innovative resources to serve growing energy needs as more people and businesses continue to move to Arizona.

The 2023 all-source RFP seeks approximately 1,000 MW to serve customers with even more around-the-clock energy – enough to power about 150,000 Arizona homes. This solicitation is designed to procure a balanced and diverse portfolio that advances clean energy while maintaining reliability and affordability for customers.

“We are seeking the best combination of technologies to serve our customers and deliver value,” said Guldner. “Our resource planning team welcomes a variety of proposals and technologies to support a diverse and affordable energy mix for Arizona. That could include new solar plants and battery energy storage, natural gas resources that can transition to clean hydrogen fuel in the future, and other resources that can ramp up quickly to serve customers during triple-digit summer afternoons.”

This RFP is focused on projects to serve customers beginning between 2026-2028. To learn more about the 2023 all-source RFP, deadlines and instructions to apply, visit aps.com/rfp.

Financial Outlook

Given the positive impact of the 2019 rate case appeal resolution in June and extremely hot weather to start the third quarter – partially offset by higher than previously forecasted operations and maintenance expenses and more moderate weather-normalized sales growth – the company increased its 2023 consolidated earnings range to $4.10 to $4.30 per diluted share on a weather-normalized basis from a previously disclosed range of $3.95 to $4.15 per diluted share. Key factors and assumptions underlying the 2023 outlook can be found in the second quarter 2023 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 2023 second-quarter results, as well as recent

developments, at noon ET (9 a.m. Arizona time) today, August 3. Join the live webcast at www.pinnaclewest.com/presentations for audio of the call and slides, or dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 804430. A replay of the webcast can be accessed for 30 days at pinnaclewest.com/presentations. A replay of the call also will be available until 11:59 p.m. ET, Thursday, August 10, 2023, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 48638.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of approximately $24 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 approximately 1.4 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. 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 current economic environment and its effects, such as lower economic growth, a tight labor market, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects;

•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 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;

•the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, 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, including as a result of delays in the development and application of new technologies;

•the cost of debt, including increased cost as a result of rising interest rates, and equity capital and the ability to access capital markets when required;

•environmental, economic, and other concerns surrounding coal-fired generation, including regulation of GHG 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, 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				SIX MONTHS ENDED
	JUNE 30,				JUNE 30,
	2023		2022		2023		2022
Operating Revenues	$	1,121,703	$	1,061,669	$	2,066,658	$	1,845,200
Operating Expenses
Fuel and purchased power	407,754		352,187		802,258		617,456
Operations and maintenance	277,238		245,387		527,318		463,729
Depreciation and amortization	195,101		186,497		387,007		373,102
Taxes other than income taxes	57,642		54,118		114,780		112,116
Other expenses	688		385		1,298		1,210
Total	938,423		838,574		1,832,661		1,567,613
Operating Income	183,280		223,095		233,997		277,587
Other Income (Deductions)
Allowance for equity funds used during construction	13,034		12,086		28,095		21,833
Pension and other postretirement non-service credits - net	10,474		25,257		20,339		49,066
Other income	6,406		1,682		12,483		3,386
Other expense	(4,813)		(4,584)		(8,944)		(8,006)
Total	25,101		34,441		51,973		66,279
Interest Expense
Interest charges	93,832		68,103		181,951		133,492
Allowance for borrowed funds used during construction	(12,317)		(5,873)		(25,039)		(10,355)
Total	81,515		62,230		156,912		123,137
Income Before Income Taxes	126,866		195,306		129,058		220,729
Income Taxes	15,897		26,688		17,080		30,849
Net Income	110,969		168,618		111,978		189,880
Less: Net income attributable to noncontrolling interests	4,306		4,306		8,612		8,612
Net Income Attributable To Common Shareholders	$	106,663	$	164,312	$	103,366	$	181,268
Weighted-Average Common Shares Outstanding - Basic	113,411		113,172		113,385		113,137
Weighted-Average Common Shares Outstanding - Diluted	113,717		113,369		113,657		113,332
Earnings Per Weighted-Average Common Share Outstanding
Net income attributable to common shareholders - basic	$	0.94	$	1.45	$	0.91	$	1.60
Net income attributable to common shareholders - diluted	$	0.94	$	1.45	$	0.91	$	1.60

EX-99.2

POWERING GROWTH DELIVERING VALUE Second Quarter 2023 Results August 3, 2023 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 current economic environment and its effects, such as lower economic growth, a tight labor market, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects; 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 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; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, 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, including as a result of delays in the development and application of new technologies; the cost of debt, including increased cost as a result of rising interest rates, and equity capital and the ability to access capital markets when required; environmental, economic, and other concerns surrounding coal-fired generation, including regulation of GHG 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 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, 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. Second Quarter 2023

2nd Quarter impacted by mild weather and higher expenses 3 2nd Quarter 2023 vs. 2nd Quarter 2022 2Q 2022 2Q 2023 $1.45 $0.94 Operating Revenue less Fuel and Purchased Power1 $0.03 O&M1 $(0.21) D&A $(0.06) Operating Revenue less Fuel and Purchased Power Weather Transmission LFCR RES/DSM Other $ $ $ $ $ (0.25) 0.12 0.10 0.05 0.01 Pension & OPEB Non- service Credits, net $(0.10) 1 Includes costs and offsetting operating revenues associated with renewable energy and demand side management programs, see slides 18 & 29 for more information. 2 Income taxes are negatively impacted this quarter due to the timing of when permanent tax items and credits are recognized through the effective tax rate. All other includes taxes other than income taxes, other income and other expenses. Interest, net AFUDC $(0.12) Second Quarter 2023 Income Taxes and all other2 $(0.05)

2023 EPS guidance Second Quarter 20234 Key Factors and Assumptions as of August 3, 2023 2023 Adjusted gross margin (operating revenues, net of fuel and purchased power expenses, x/RES,DSM,CCT)1 $2.72 – $2.77 billion • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 2.0%-4.0% • Includes 1.0%-2.0% contribution to sales growth of new large manufacturing facilities and several large data centers • Assumes normal weather for balance of year forecast Adjusted operating and maintenance expense (O&M x/RES,DSM,CCT)1 $915 – $935 million Other operating expenses (depreciation and amortization, and taxes other than income taxes) $1.02 – $1.03 billion Other income (pension and other post-retirement non-service credits, other income and other expense) $43 – $48 million Interest expense, net of allowance for borrowed and equity funds used during construction (Total AFUDC ~$96 million) $265 – $285 million Net income attributable to noncontrolling interests $17 million Effective tax rate 12.0% – 12.5% Average diluted common shares outstanding 113.7 million EPS Guidance $4.10 – $4.30 1 Excludes costs and offsetting operating revenues associated with renewable energy and demand side management programs. For reconciliation, see slide 29.

Key drivers for EPS guidance1 1 Retail customer growth of 1.5%-2.5% Weather-normalized retail electricity sales growth of 2.0%-4.0% Transmission revenues LFCR SCR Settlement Second Quarter 20235 2023 EPS guidance of $4.10-$4.30 key drivers1,2 • Long-term EPS growth target of 5%-7%3 • Retail customer growth of 1.5%-2.5%4 • Weather-normalized retail electricity sales growth of 4.5%-6.5%4 1 Arrows represent expected comparative year-over-year impact of each driver on earnings. 2 As of August 3, 2023. Long-term guidance and key drivers  Depreciation, amortization and property taxes due to higher plant in service  Operations and maintenance expense  Interest expense  Pension and OPEB 3 Long-term EPS growth target based on the Company’s current weather-normalized 5-year compound annual growth rate projections from 2022-2026. 4 Forecasted guidance range through 2025.

$167 $265 $260 $255 $577 $520 $530 $530 $217 $260 $300 $300 $345 $360 $465 $520 $226 $265 $245 $245 2022 2023E 2024E 2025E Other Generation Clean Generation Transmission Distribution Other APS Total 2023-2025 $5.32B $1.53B $1.67B $1.80B $1.85B 6 Managed capital plan to support customer growth, reliability, and clean transition 2023–2025 as disclosed in the Second Quarter 2023 Form 10-Q. Second Quarter 2023

Approved Rate BaseTotal APS Rate Base Growth Guidance Year-End Steady rate base growth 7 ACC FERC Rate Effective Date 12/01/2021 6/1/2023 Test Year Ended 06/30/20191 12/31/2022 Rate Base $8.6B2 $2.0B Equity Layer 54.7% 50.3% Allowed ROE 8.9%3 10.75% 1 Adjusted to include post test-year plant in service through 06/30/2020 2 Rate Base excludes $215M approved through Joint Resolution in Case No. E-01345A-19-0236. 3 ROE adjusted to reflect ROE approved through Joint Resolution in Case No. E-01345A-19-0236. Rate base $ in billions, rounded $9.8 $12.5 $1.9 $2.7 2021 2022 2023 2024 2025 Projected 5-7% Annual FERC ACC $11.7 $15.2 Second Quarter 2023

Our goal continues to be declining O&M (as adjusted) per MWh 8 O&M (as adjusted) per MWh Total O&M (as adjusted)1 2022: $892M 2023: $915M-$935M 1 O&M amounts, as adjusted, exclude RES/DSM amounts of $95M in 2022 and $120M-$130M in 2023. Planned outage amounts included in O&M are $43M in 2022 and a projected $45M-$55M in 2023. For reconciliation, see slide 29. Second Quarter 2023 ~$30/MWh 2022

Forecasted sources of capital to fund investments from 2022-2024 No plans to issue equity before end of next rate case 9 Approx. $3 billion Approx. $1.25 billion $5.0 billion APS Debt2 PNW Debt2 Cash from Operations1 Approx. $300 million $400-$500 million 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. Second Quarter 2023 Total Capital Investment PNW Equity/ Alternatives

Strong balance sheet with attractive long-term debt maturity profile1 10 $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 June 30, 2023 Second Quarter 2023 1 Does not include debt at Bright Canyon Energy.

APPENDIX

Arizona remains among the fastest growing states in the U.S. 12 Consistent Residential Growth Past Five Years Strong 2.5% Sales CAGR Past Three Years 0.6% 0.8% 4.2% 2.4% 2.0%-4.0% 0% 1% 2% 3% 4% 5% 6% '19 '20 '21 '22 '23E Total Sales Growth2,3 2Weather-normalized 32019-2021 as reported in PNW Statistical Reports Second Quarter 2023 1.9% 2.1% 2.3% 2.4% 2.2% 1.5%-2.5% 0% 1% 2% 3% '18 '19 '20 '21 '22 '23E APS Residential Growth Natn'l Avg. - Residential Residential Customer Growth1 1National average from 2022 Itron Annual Energy Survey Report

Best-in-class service territory supports high tech growth and economic development 13 Our Approach: Focus on Four Main Areas Supports Influx of Manufacturing and Distribution – Examples • Business attraction and expansion • Community development • Entrepreneurial support • Infrastructure support • Taiwan Semiconductor Increased investment from $12B to $40B factory • Proctor & Gamble $500M capital investment in manufacturing facility • Jacuzzi $30M investment in 143k sq ft facility • Rehrig Pacific Company $80M investment in manufacturing facility • Air Products & Chemicals $160M investment in manufacturing facility • KORE Power $850M DOE loan to fund 1.3M sq ft facility Second Quarter 2023

A clear plan for clean energy transition 14 Progress Towards Meeting Clean Energy Commitment Pathway 2005 2019 2030 2050 Since 2020, have contracted over 4,300 MW of clean energy and storage to be in service for APS customers by end of 2025 Successfully installed 201 MW of APS owned batteries at our AZ Sun sites and 150 MW of solar at the Agave Solar Facility Charted course for healthy mix of APS-owned and third party- owned assets, to be continued through future planned RFPs 24% 50% 65% 100% Second Quarter 2023

Clean Energy Commitment – Over 4,300MW in development since 2020 Second Quarter 202315 Robust, Diverse Procurement Activity Energy Storage • 201 MW APS owned resources to retrofit entire fleet of AZ Sun facilities − In service in 2023 • 1,842 MW under long-term PPAs • All resources to be in service between 2022 and 2025 Solar • 150 MW APS owned Agave Solar Facility • 1,425 MW under long-term PPAs • All resources to be in-service between 2022 and 2025 Wind • 654 MW under three long-term PPAs • Resources in service or will be in-service 2023 and 2024 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

2023 Planned Outage schedule Second Quarter 202316 Coal, Nuclear and Large Gas Planned Outages Q2 Q4 Plant Unit Duration in Days Plant Unit Estimated Duration in Days Palo Verde 2 34 Palo Verde 1 35 Redhawk CC1 56

$15 ($17) Q1 Q2 Q3 Q4 Gross margin effects of weather Second Quarter 202317 Variances vs. Normal$ in millions pretax 2023 $(2) Million All periods recalculated to current 10-year rolling average (2012 – 2021). Numbers may not foot due to rounding.

Renewable Energy & Demand Side Management expenses1 Second Quarter 202318 $10 $4 $12 $11 $15 $9 $13 $16 $18 $11 $18 $21 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Demand Side Management Renewable Energy 2022 $95 Million 1Renewable energy and demand side management expenses are substantially offset by adjustment mechanisms. 2023 $63 Million Numbers may not foot due to rounding.

Residential PV applications1 Second Quarter 202319 1Monthly data equals applications received minus cancelled applications. As of June 30, 2023 approximately 166,145 residential grid-tied solar photovoltaic (PV) systems have been installed in APS’s service territory, totaling approximately 1,457 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 2020 Applications 2021 Applications 2022 Applications 2023 Applications 139 169 200 120 2020 2021 2022 2023

Credit Ratings Summary 20 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 August 3, 2023. Second Quarter 2023

2022 APS Rate Case Application – Rebuttal Testimony Second Quarter 202321 Key Financials Test year ended June 30, 2022 Total Rate Base - Adjusted $13.0 Billion ACC Rate Base - Adjusted $10.4 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

2022 APS Rate Case Application – Rebuttal Testimony1 1 • Eliminate the Environmental Improvement Surcharge and collect costs through base rates • Maintain the Lost Fixed Cost Recovery Mechanism and Demand Side Management Adjustor Charge as separate mechanisms • Adopt a System Reliability Benefit recovery mechanism and maintain REAC in its current state • Modify the performance incentive in the Demand Side Management Adjustor Charge • Increase the Power Supply Adjustor Annual Cap from $0.004/kWh to $0.006/kWh to ensure timely recovery of fuel and purchase power costs • Maintain as inactive the Tax Expense Adjustor Mechanism • Maintain the Transmission Cost Adjustment Mechanism Second Quarter 202322 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 New Customer Program Proposals

2022 APS Rate Case Application – Rebuttal Testimony 1 23 Overview of Rate Increase Rebuttal Request ($ in Millions) Key Components1 • Initial Application Filed October 28, 2022; Rebuttal Filed July 12, 2023 • 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/ratecase Additional Details Rate Base Growth $130 Revenue Impact of 12 Months Post Test Year Plant and Four Corners ELG 120 Weighted Average Cost of Capital of 7.17% 78 0.5% Fair Value Increment 34 New Customer Programs, Coal Community Transition and Other 21 Total Revenue Request $383 Customer Net Base Rate Impact on Day 1 11.3% 1Numbers may not foot due to rounding. Second Quarter 2023

2022 APS Rate Case - Testimony Summary11 Second Quarter 202324 1As of August 3, 2023. Numbers may not foot due to rounding. 2Alternatively, RUCO recommends a ROE of 8.7% if the Commission imputes a hypothetical capital structure with 46% equity layer. APS Rebuttal ACC Staff Surrebuttal Testimony RUCO Surrebuttal Testimony Return on Equity 10.25% 9.68% 8.2%2 Fair Value Increment 0.50% 0.50% 0.0% Post Test-Year Plant 12 months + Four Corners ELG 12 months + Four Corners ELG 6 months New Capital Tracking Mechanism All-Source Capital Recovery Mechanism (System Reliability Benefit or SRB) Not supported as proposed Did not address SRB Existing Adjustors • Keep current suite of adjustors with minor changes • Maintain LFCR and DSM as separate adjustors • Maintain LFCR and DSM as separate adjustors • Eliminate LFCR; increase DSM recovery through base rates Additional items • Updated Pension expense • 50% D&O • 50% Incentive Comp • Opposed Pension update • 50% D&O • 50% Incentive Comp • 50% D&O • 25% Incentive Comp Total Revenue Requirement Increase $383.1M $281.9M $84.9M Customer Net Base Rate Impact on Day 1 11.3% 8.4% 2.5%

25 Application Filed October 28, 2022 Staff/Intervenor Direct Testimony Due June 5, 2023 Staff/Intervenor Direct Testimony (Rate Design) Due June 15, 2023 APS Rebuttal Testimony Due July 12, 2023 Staff/Intervenor Surrebuttal Testimony Due July 26, 2023 APS Rejoinder Testimony Due August 4, 2023 Pre-Hearing Conference August 7, 2023 Hearing Commences August 10, 2023 Arizona Public Service Company Docket # E-01345A-22-0144 1As of August 3, 2023 2022 APS Rate Case Procedural Schedule1 Second Quarter 2023

Regulatory 2023 key dates1 Second Quarter 202326 ACC Key Dates / Docket # Q1 Q2 Q3 Q4 2022 Rate Case: E-01345A-22-0144 Hearing to begin August 10 Power Supply Adjustor (PSA) E-01345A-19-0236: Effective March 1 2024 PSA Rate to be filed Nov 30 Transmission Cost Adjustor E-01345A-19-0236: Filed May 15; effective June 1 Environmental Improvement Surcharge E-01345A-19-0236: Filed Feb. 1 Effective April 1 Lost Fixed Cost Recovery (New docket): Filed July 31 Effective November 1 Resource Planning and Procurement: E-99999A-22-0046 2023 IRP to be filed November 1 2023 DSM/EE Implementation Plan E-01345A-22-0066: 2024 Plan to be filed November 30 2023 RES Implementation Plan E-01345A-22-0181: 2024 Plan filed June 30 Resource Comparison Proxy (New docket): Filed May 1 Effective Sep 1 Battery Storage PPAs through the PSA (New dockets): 4 Applications approved 2 pending applications 1Dates are estimated and subject to change.

Pension & Other Post Retirement Benefits (“OPEB”) 27 Second Quarter 2023 104% 107% 106% YE 2020 YE 2021 YE 2022 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. 2 +/- represent expected comparative year-over-year impact of each driver on benefit expense. 3 Net impact of higher expected return percentage applied to smaller asset value year-over-year. . Components of Benefit Cost 2023E2 Service Cost + Non-Service Costs/(Credit): Interest Cost - Expected Return on Assets3 - Amortization of Prior Service Costs = Amortization of Actuarial Losses/(Gains) - Discount Rate: Pension 2.92% 5.56% Expected Long-Term Return on Plan Assets: Pension 5.00% 6.70% Pension Expense Assumptions 2022 2023E Total Benefit Expense/(Income) $(61.5) $(12.2)

Components and Key Drivers of Benefit Costs1 Second Quarter 202328 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.

Non-GAAP Measure Reconciliation Second Quarter 202329 2022 Actuals4 2023 Guidance4 Operating revenues1 $4.32 billion $4.71 - $4.79 billion Fuel and purchased power expenses1 $1.63 billion $1.86 - $1.91 billion Gross Margin $2.69 billion $2.84 - $2.89 billion Adjustments: Renewable energy and demand side management programs2 $100 million $120 - $130 million Adjusted gross margin $2.59 billion $2.72 - $2.77 billion Operations and maintenance1,3 $987 million $1.04 - $1.06 billion Adjustments: Renewable energy and demand side management programs2 $95 million $120 - $130 million Adjusted operations and maintenance $892 million $915 - $935 million 1Line items from Consolidated Statements of Income. 2Includes $5M for CCT (Coal Community Transition) in 2022 and $3M in 2023 which is recovered through REAC (Renewable Energy Adjustment Charge) 3O&M per MWh was $33/MWh in 2022. 4Numbers may not foot due to rounding.

Consolidated statistics Second Quarter 202330 3 Months Ended June 30 Numbers may not foot due to rounding. 3 Months Ended June 30 3 Months Ended June 30, 6 Months Ended June 30, 2023 2022 Incr (Decr) 2023 2022 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residential $ 542 $ 538 $ 5 $ 952 $ 905 $ 47 Business 517 463 54 923 822 101 Total Retail 1,059 1,000 59 1,875 1,727 148 Sales for Resale (Wholesale) 27 30 (3) 123 59 64 Transmission for Others 33 29 4 65 55 10 Other Miscellaneous Services 2 2 0 4 4 (0) Total Operating Revenues $ 1,122 $ 1,062 $ 60 $ 2,067 $ 1,845 $ 221 ELECTRIC SALES (GWH) Retail Residential 3,384 3,786 (401) 6,252 6,435 (183) Business 4,028 4,029 (1) 7,481 7,333 148 Total Retail Sales 7,413 7,815 (402) 13,733 13,768 (35) Sales for Resale (Wholesale) 955 541 414 2,001 1,227 774 Total Electric Sales 8,368 8,355 12 15,734 14,995 739 RETAIL SALES (GWH) - WEATHER NORMALIZED Residential 3,541 3,616 (75) 6,248 6,249 (1) Business 4,065 3,981 84 7,519 7,294 225 Total Retail Sales 7,606 7,597 9 13,767 13,543 224 Retail sales (GWH) (% over prior year) 0.1% 3.2% 1.7% 3.7% AVERAGE ELECTRIC CUSTOMERS Retail Customers Residential 1,222,319 1,197,089 25,230 1,222,612 1,197,432 25,180 Business 142,438 141,059 1,379 142,431 140,945 1,487 Total Retail 1,364,757 1,338,149 26,609 1,365,044 1,338,377 26,667 Wholesale Customers 53 54 (1) 54 54 1 Total Customers 1,364,810 1,338,203 26,607 1,365,098 1,338,430 26,668 Total Customer Growth (% over prior year) 2.0% 2.0% 2.0% 2.1% RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer) Residential 2,897 3,020 (124) 5,110 5,219 (108) Business 28,541 28,225 317 52,791 51,752 1,040

Consolidated statistics Second Quarter 202331 Numbers may not foot due to rounding. 3 Months Ended June 30 3 Months Ended June 30, 6 Months Ended June 30, 2023 2022 Incr (Decr) 2023 2022 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 1,991 2,192 (201) 4,497 4,589 (92) Coal 1,130 1,832 (702) 3,198 3,661 (463) Gas, Oil and Other 2,086 2,098 (12) 3,871 3,637 234 Renewables 153 181 (28) 153 297 (144) Total Generation Production 5,359 6,302 (943) 11,719 12,184 (465) Purchased Power Conventional 1,960 1,395 565 2,528 1,904 624 Resales 342 186 156 396 191 205 Renewables 797 739 58 1,415 1,373 42 Total Purchased Power 3,099 2,320 779 4,339 3,468 871 Total Energy Sources 8,458 8,622 (164) 16,058 15,652 406 POWER PLANT PERFORMANCE Capacity Factors - Owned Nuclear 80% 88% (8)% 90% 92% (2)% Coal 38% 62% (24)% 54% 62% (8)% Gas, Oil and Other 26% 27% (0)% 25% 23% 1% Solar 31% 36% (6)% 15% 30% (15)% System Average 39% 46% (7)% 43% 44% (2)% 3 Months Ended June 30, 6 Months Ended June 30, 2023 2022 Incr (Decr) 2023 2022 Incr (Decr) WEATHER INDICATORS - RESIDENTIAL Actual Cooling Degree-Days 424 570 (146) 424 570 (146) Heating Degree-Days 17 3 14 700 454 246 Average Humidity 17% 17% 0% 17% 17% 0% 10-Year Averages (2012 - 2021) Cooling Degree-Days 524 524 - 524 524 - Heating Degree-Days 5 5 448 448 - Average Humidity 17% 17% - 0% 0% -

XML

Document Entity and Information DEI	Aug. 03, 2023
Entity Information [Line Items]
Entity Central Index Key	0000764622
Document Type	8-K
Document Period End Date	Aug. 03, 2023
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	Aug. 03, 2023
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