Pinnacle West Capital Corp has recently released its 10-K report, providing a comprehensive overview of its financial performance and strategic direction. The company, through its subsidiary APS, is a leading electric utility provider in Arizona, serving approximately 1.4 million retail customers in 11 of the state's 15 counties. With consolidated assets of approximately $30 billion, Pinnacle West is committed to creating a sustainable energy future for Arizona, focusing on delivering safe, reliable, and affordable energy to its customers.
In its Annual Report on Form 10-K for the year ended December 31, 2024, Pinnacle West Capital Corp's management discussed various aspects of the company's operations. The report highlighted the company's strategic focus on ensuring reliability in energy services, emphasizing the goal of achieving top quartile reliability compared to peers. Pinnacle West is dedicated to maintaining a balanced energy mix, including the procurement of natural gas and battery storage to support reliable service and meet increasing energy needs. The company executed a gas transportation precedent agreement to secure a long-term supply of natural gas and plans to add up to 2,000 MW of flexible natural gas generation to its portfolio.
The report also underlined Pinnacle West's commitment to wildfire safety, with increased investment in fire mitigation efforts, system upgrades, and partnerships with government entities and first responders. The company's efforts to clear defensible space around its infrastructure and mitigate the risk associated with trees that could cause hazards demonstrate its focus on customer reliability, responsible forest management, and safe communities.
Furthermore, Pinnacle West remains dedicated to affordability for its customers, despite the impact of inflation on the cost of goods and services. The company has implemented various initiatives to maintain low residential rates, including internal opportunities such as training employees on identifying efficiency opportunities and external opportunities through customer programs designed to help reduce and manage bills. Pinnacle West is also seeking to reduce cross-subsidization of customer classes and ensure that growth pays for growth by requesting modifications to its cost allocation methodologies.
The report also highlighted Pinnacle West's resource planning efforts, aiming to prioritize reliability and affordability. The company performs a comprehensive study every three years to identify the resources required to meet customer needs, while also issuing competitive bid solicitations through the ASRFP process to optimize system reliability and customer affordability. In recent solicitations, Pinnacle West procured significant capacities of battery storage, natural gas, solar, and wind resources, reflecting its commitment to a balanced portfolio and resilience to external pressures.
As a result of these announcements, the company's shares have moved 1.1% on the market, and are now trading at a price of $93.71. Check out the company's full 10-K submission here.
