Pinnacle West Capital Corporation (PNW): Business Model Canvas

In der dynamischen Landschaft der Energieversorgung entwickelt sich die Pinnacle West Capital Corporation (PNW) zu einem zentralen Akteur im Elektrizitätsökosystem von Arizona, der die traditionelle Stromerzeugung strategisch mit innovativen Lösungen für erneuerbare Energien in Einklang bringt. Dieses umfassende Business Model Canvas enthüllt, wie PNW komplexe Energieherausforderungen in nachhaltige Wertversprechen umwandelt und dabei modernste Technologien, eine robuste Infrastruktur und einen kundenorientierten Ansatz nutzt, der über die bloße Stromverteilung hinausgeht. Durch die nahtlose Integration von technologischer Innovation, Umweltverantwortung und strategischen Partnerschaften definiert PNW die Zukunft des Versorgungssektors neu und bietet Einwohnern und Unternehmen in Arizona ein überzeugendes Modell für modernes Energiemanagement.

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Wichtige Partnerschaften

Arizona Public Service Electric (Hauptniederlassung des Versorgungsunternehmens)

Als wichtigste Tochtergesellschaft der Pinnacle West Capital Corporation pflegt Arizona Public Service Electric (APS) wichtige Partnerschaften mit verschiedenen Interessengruppen.

Partnerschaftstyp	Details	Jährlicher Wert
Versorgungsbetrieb	APS bedient 1,3 Millionen Stromkunden in Arizona	5,2 Milliarden US-Dollar Umsatz (2022)
Servicegebiet	Deckt 11.000 Quadratmeilen in Arizona ab	95 % der Bevölkerung Arizonas

Gerätehersteller für die Energieerzeugungsinfrastruktur

Pinnacle West arbeitet mit spezialisierten Geräteherstellern für die Stromerzeugungsinfrastruktur zusammen.

• General Electric (Turbinentechnologien)
• Siemens Energy
• Mitsubishi Power Systems

Hersteller	Gerätetyp	Investition
General Electric	Gasturbinen	350-Millionen-Dollar-Investition (2022–2023)
Siemens Energy	Erneuerbare Infrastruktur	275-Millionen-Dollar-Partnerschaft

Anbieter von Technologien für erneuerbare Energien

Pinnacle West arbeitet aktiv mit Anbietern erneuerbarer Energietechnologien zusammen, um das Portfolio sauberer Energien zu erweitern.

• Erste Solar
• SunPower Corporation
• NextEra-Energieressourcen

Anbieter	Technologiefokus	Erneuerbare Kapazität
Erste Solar	Herstellung von Photovoltaikmodulen	350 MW Solarprojekt
NextEra-Energie	Wind- und Solarentwicklung	500 MW erneuerbare Integration

Lokale und staatliche Regulierungsbehörden

Pinnacle West unterhält strategische Partnerschaften mit Regulierungsbehörden, um Compliance und strategische Ausrichtung sicherzustellen.

• Kommission der Arizona Corporation
• Arizona Department of Environmental Quality
• Federal Energy Regulatory Commission (FERC)

Finanzinstitute für Kapitalanlagen

Wichtige Finanzpartnerschaften unterstützen die Infrastruktur- und Expansionsstrategien von Pinnacle West.

Finanzinstitut	Partnerschaftsfokus	Investitionsbetrag
JPMorgan Chase	Infrastrukturfinanzierung	Kreditfazilität in Höhe von 750 Millionen US-Dollar
Bank of America	Investitionen in erneuerbare Energien	Emission einer grünen Anleihe im Wert von 500 Millionen US-Dollar

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Hauptaktivitäten

Stromerzeugung und -verteilung

Die Pinnacle West Capital Corporation erzeugt und verteilt Strom über den Arizona Public Service (APS) und bedient rund 1,3 Millionen Kunden in ganz Arizona. Gesamterzeugungskapazität Stand 2023: 6.298 MW.

Generationsquelle	Kapazität (MW)	Prozentsatz
Nuklear	3,942	62.6%
Erdgas	1,574	25%
Erneuerbare Energie	782	12.4%

Projektentwicklung für erneuerbare Energien

Engagiert für den Ausbau erneuerbarer Energien mit 3,2 Milliarden US-Dollar Investition in saubere Energieinfrastruktur.

• Solarprojektpipeline: 1.500 MW bis 2025
• Windenergieintegration: 400 MW geplant
• Batteriespeicherkapazität: 250 MW

Wartung der Netzinfrastruktur

Jährliche Infrastrukturinvestitionen: 1,1 Milliarden US-Dollar für Netzmodernisierung und -zuverlässigkeit.

Infrastrukturkomponente	Investition (Mio. USD)
Modernisierung der Übertragungsleitungen	425
Modernisierung von Umspannwerken	315
Smart-Grid-Technologien	360

Management von Energieeffizienzprogrammen

Umsetzung von Energieeffizienzprogrammen mit Jahresbudget: 78 Millionen US-Dollar.

• Rabatte für die Energieeffizienz von Wohngebäuden: 35 Millionen US-Dollar
• Kommerzielle Energiemanagementprogramme: 28 Millionen US-Dollar
• Energiehilfe für Geringverdiener: 15 Millionen US-Dollar

Kundenservice und Energielösungen

Kundendienstaktivitäten mit dedizierten Ressourcen und technologischen Plattformen.

Servicemetrik	Wert
Kundendienstmitarbeiter	850
Benutzer digitaler Plattformen	620,000
Jährliches Kundeninteraktionsvolumen	4,2 Millionen

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Schlüsselressourcen

Energieerzeugungsanlagen

Pinnacle West Capital Corporation betreibt die folgenden Stromerzeugungsanlagen:

Einrichtungstyp	Kapazität (MW)	Anzahl der Einrichtungen
Nuklear (Palo Verde)	3,942	1
Solar	2,232	Mehrere
Fossiler Brennstoff (Erdgas)	4,236	5

Übertragungs- und Verteilungsinfrastruktur

Details zur Infrastruktur des Arizona Public Service (APS):

• Gesamte Übertragungsleitungen: 6.300 Meilen
• Verteilungsleitungen: 28.000 Meilen
• Servicegebiet: 95.000 Quadratmeilen
• Unterstationen: 280

Qualifizierte Ingenieure und technische Arbeitskräfte

Mitarbeiterkategorie	Gesamtzahl
Gesamtzahl der Mitarbeiter	6,300
Ingenieure	1,200
Technische Spezialisten	1,800

Fortschrittliche Energiemanagementtechnologien

• Investitionen in Smart-Grid-Technologie: 425 Millionen US-Dollar
• Energiespeicherkapazität: 350 MW
• Ladeinfrastruktur für Elektrofahrzeuge: 2.500 Ladestationen

Finanzkapital für Infrastrukturinvestitionen

Finanzkennzahl	Betrag
Gesamtvermögen	23,4 Milliarden US-Dollar
Jährliche Kapitalausgaben	1,6 Milliarden US-Dollar
Langfristige Schulden	7,2 Milliarden US-Dollar

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Wertversprechen

Zuverlässige Stromversorgung für Einwohner von Arizona

Arizona Public Service (APS), eine Tochtergesellschaft von Pinnacle West, betreut rund 1,3 Millionen Stromkunden in 11 Landkreisen in Arizona. Das Unternehmen versorgt 95,7 % der Bevölkerung Arizonas auf einer Fläche von 2.900 Quadratmeilen mit Strom.

Servicemetrik	Wert
Gesamtzahl der Kunden	1,3 Millionen
Abdeckung des Servicebereichs	2.900 Quadratmeilen
Bevölkerung bedient	95.7%

Nachhaltige und zunehmend erneuerbare Energieoptionen

Ab 2022 umfasst das Portfolio erneuerbarer Energien von Pinnacle West:

• Solarerzeugungskapazität: 2.200 Megawatt
• Winderzeugungskapazität: 390 Megawatt
• Bis 2030 zu 65 % kohlenstofffreier Energie verpflichtet

Wettbewerbsfähige Stromtarife

Durchschnittliche Stromtarife für Privathaushalte für APS im Jahr 2023:

Preiskategorie	Preis pro kWh
Wohntarif	$0.1257
Nationaler Durchschnittsvergleich	3,4 % unter dem Landesdurchschnitt

Erweiterte Energieeffizienzprogramme

Investitionen und Programme zur Energieeffizienz:

• Jährliche Investition in Energieeffizienz: 52,4 Millionen US-Dollar
• Erzielte Energieeinsparungen: 328 Gigawattstunden im Jahr 2022
• Kundenrabatte für energieeffiziente Geräte: Bis zu 1.200 $

Engagement für ökologische Nachhaltigkeit

Kennzahlen zur ökologischen Nachhaltigkeit:

Nachhaltigkeitsmetrik	Ziel-/Aktueller Wert
Reduzierung der Kohlenstoffemissionen	Reduzierung um 80 % bis 2040
Aktuelle CO2-freie Generation	50%
Gesamtinvestition in saubere Energie	3,2 Milliarden US-Dollar

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Kundenbeziehungen

Digitale Kundenservice-Plattformen

Pinnacle West Capital Corporation betreibt das Online-Kundendienstportal Arizona Public Service (APS) mit den folgenden Schlüsselkennzahlen:

• Online-Kontoregistrierungen: 1,1 Millionen Kunden
• Downloads mobiler Apps: 427.000 im Jahr 2023
• Digitale Rechnungszahlungsrate: 68 % aller Kunden

Digitaler Servicekanal	Kundenbindungsrate
Webportal	72%
Mobile Anwendung	53%
Self-Service-Plattformen	61%

Personalisierte Einblicke in den Energieverbrauch

APS bietet eine detaillierte Verfolgung des Energieverbrauchs mit:

• Stündliche Überwachung des Energieverbrauchs
• Maßgeschneiderte Empfehlungen zur Energieeffizienz
• Vergleichende Berichte zum Energieverbrauch in der Nachbarschaft

Community-Engagement-Programme

Zu den Community-Interaktionsmetriken gehören:

• Jährliche Gemeinschaftsinvestition: 3,2 Millionen US-Dollar
• Kundenschulungsprogramme: 42 jährliche Veranstaltungen
• Kundenbeteiligungsquote: 37 %

Direkte Abrechnungs- und Supportkanäle

Support-Kanal	Durchschnittliche Reaktionszeit	Kundenzufriedenheitsrate
Telefonsupport	7,5 Minuten	86%
E-Mail-Support	24 Stunden	79%
Live-Chat	4,2 Minuten	91%

Beratungsdienste zur Energieeffizienz

Statistiken zum Effizienzprogramm:

• Durchgeführte kostenlose Energieaudits: 12.500 pro Jahr
• Gesamtenergieeinsparung: 47 Millionen kWh pro Jahr
• Kundenbeteiligung: 22 % Privatkunden

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Kanäle

Online-Kundenportal

Das Online-Portal APS Energy Central betreut rund 1,2 Millionen Kundenkonten in Arizona. Das Portal verarbeitete im Jahr 2022 3,4 Millionen Online-Rechnungszahlungen, was 68 % der gesamten Kundentransaktionen entspricht.

Portalfunktion	Nutzungsstatistik
Monatlich aktive Benutzer	782,000
Akzeptanzrate von Online-Rechnungszahlungen	62%
Jährliches digitales Transaktionsvolumen	41,6 Millionen

Mobile Anwendung

Die mobile APS-App unterstützt das Energiemanagement in Echtzeit für Kunden.

• Anzahl der App-Downloads: 345.000
• Monatlich aktive Mobilfunknutzer: 215.000
• Mobile Zahlungstransaktionen: 1,2 Millionen jährlich

Physische Kundendienstzentren

Pinnacle West betreibt 12 physische Kundendienststandorte in ganz Arizona.

Standorttyp	Anzahl der Zentren	Jährliche Kundeninteraktionen
Städtische Zentren	8	426,000
Ländliche Zentren	4	89,000

Callcenter-Unterstützung

APS unterhält eine zentralisierte Kundensupport-Infrastruktur.

• Jährliches Anrufvolumen: 2,6 Millionen
• Durchschnittliche Reaktionszeit: 3,2 Minuten
• Kundenzufriedenheitsrate: 87 %

Lokale Community-Outreach-Programme

Zu den Kanälen für gemeinschaftliches Engagement gehören Energieeffizienzprogramme und Bildungsinitiativen.

Outreach-Programm	Jährliche Teilnehmer	Investition
Energieeffizienz-Workshops	12,500	1,3 Millionen US-Dollar
Schulbildungsprogramme	45.000 Studierende	$750,000

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Kundensegmente

Stromverbraucher für Privathaushalte

Ab 2022 versorgt Arizona Public Service (APS), eine Tochtergesellschaft der Pinnacle West Capital Corporation, etwa 1,3 Millionen private Stromkunden in Arizona.

Kundenkategorie	Anzahl der Kunden	Durchschnittliche monatliche Rechnung
Privatkunden	1,300,000	$132.45

Gewerbliche Geschäftskunden

Pinnacle West beliefert rund 126.000 gewerbliche Stromkunden in ganz Arizona.

• Kleinunternehmenssegment
• Mittelständische Handelsunternehmen
• Große Firmenkunden

Unternehmensgröße	Kundenanzahl	Stromverbrauch (MWh)
Kleine Unternehmen	85,000	1,200,000
Mittelständische Unternehmen	35,000	2,500,000
Große Unternehmen	6,000	3,800,000

Industrielle Power-User

Mit rund 1.200 Großstromverbrauchern stellen Industriekunden ein bedeutendes Segment dar.

Sektor	Anzahl der Kunden	Jährlicher Stromverbrauch (MWh)
Herstellung	450	4,500,000
Bergbau	250	2,800,000
Technologie	500	3,200,000

Kommunale und staatliche Stellen

Pinnacle West bedient 250 kommunale und staatliche Kunden in ganz Arizona und bietet kritische Infrastrukturunterstützung.

Regierungstyp	Kundenanzahl	Jährliche Stromausgaben
Stadtverwaltungen	120	$45,000,000
Kreiseinrichtungen	80	$22,000,000
Staatliche Einrichtungen	50	$35,000,000

Stromverbraucher im Agrarsektor

Zu den landwirtschaftlichen Kunden zählen etwa 2.500 Stromverbraucher in den landwirtschaftlichen Regionen Arizonas.

Landwirtschaftlicher Teilsektor	Kundenanzahl	Jährlicher Stromverbrauch (MWh)
Pflanzenbau	1,800	1,500,000
Vieh	450	800,000
Bewässerungssysteme	250	1,200,000

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Kostenstruktur

Wartung von Stromerzeugungsanlagen

Jährliche Wartungskosten für Stromerzeugungsanlagen: 187,4 Millionen US-Dollar im Jahr 2022

Gerätetyp	Wartungsaufwand
Kernkraftwerk	92,6 Millionen US-Dollar
Kohlekraftwerke	45,3 Millionen US-Dollar
Erdgasanlagen	49,5 Millionen US-Dollar

Kosten für die Kraftstoffbeschaffung

Gesamtkosten für die Kraftstoffbeschaffung: 312,8 Millionen US-Dollar im Jahr 2022

• Erdgas: 178,6 Millionen US-Dollar
• Kohle: 94,2 Millionen US-Dollar
• Kernbrennstoff: 40 Millionen US-Dollar

Mitarbeitervergütung

Gesamtvergütung der Mitarbeiter: 342,5 Millionen US-Dollar im Jahr 2022

Mitarbeiterkategorie	Entschädigung
Vergütung von Führungskräften	18,7 Millionen US-Dollar
Betriebspersonal	213,4 Millionen US-Dollar
Verwaltungspersonal	110,4 Millionen US-Dollar

Entwicklung und Modernisierung der Infrastruktur

Gesamtinvestitionen in die Infrastruktur: 456,2 Millionen US-Dollar im Jahr 2022

• Netzmodernisierung: 187,6 Millionen US-Dollar
• Infrastruktur für erneuerbare Energien: 134,5 Millionen US-Dollar
• Modernisierung der Übertragungsleitung: 134,1 Millionen US-Dollar

Kosten für die Einhaltung gesetzlicher Vorschriften

Gesamtkosten für die Einhaltung gesetzlicher Vorschriften: 92,3 Millionen US-Dollar im Jahr 2022

Compliance-Kategorie	Kosten
Umweltvorschriften	42,6 Millionen US-Dollar
Sicherheitskonformität	31,7 Millionen US-Dollar
Berichterstattung und Dokumentation	18 Millionen Dollar

Pinnacle West Capital Corporation (PNW) – Geschäftsmodell: Einnahmequellen

Stromverkauf für Privathaushalte

Im Jahr 2022 meldete Arizona Public Service (APS), eine Tochtergesellschaft von Pinnacle West, einen Umsatz mit Stromverkäufen für Privathaushalte in Höhe von 2,4 Milliarden US-Dollar. Der durchschnittliche Strompreis für Privathaushalte betrug 13,42 Cent pro Kilowattstunde.

Privatkundensegment	Jahresumsatz	Anzahl der Kunden
Stromverkauf für Privathaushalte	2,4 Milliarden US-Dollar	1,2 Millionen

Gewerbestromabrechnung

Der kommerzielle Stromverkauf generierte für Pinnacle West im Jahr 2022 einen Umsatz von 1,8 Milliarden US-Dollar, was etwa 35 % des gesamten Stromverkaufsumsatzes entspricht.

Gewerbliches Kundensegment	Jahresumsatz	Durchschnittlicher Verbrauch
Kommerzieller Stromverkauf	1,8 Milliarden US-Dollar	4.500 kWh pro Monat

Gutschriften für erneuerbare Energien

Pinnacle West erwirtschaftete im Jahr 2022 45 Millionen US-Dollar aus dem Verkauf von Krediten für erneuerbare Energien, wobei Solar- und Windkredite den Großteil dieser Einnahmequelle ausmachen.

• Gesamtumsatz aus Gutschriften für erneuerbare Energien: 45 Millionen US-Dollar
• Solarkreditverkäufe: 28 Millionen US-Dollar
• Umsatz mit Windkrediten: 17 Millionen US-Dollar

Gebühren für das Energieeffizienzprogramm

Energieeffizienzprogramme generierten für Pinnacle West im Jahr 2022 Einnahmen in Höhe von 62 Millionen US-Dollar, wobei die Gebühren sowohl von Privat- als auch von Gewerbekunden erhoben wurden.

Programmtyp	Einnahmen	Kundenbeteiligung
Energieeffizienz von Wohngebäuden	38 Millionen Dollar	65.000 Teilnehmer
Kommerzielle Energieeffizienz	24 Millionen Dollar	2.500 Geschäftsteilnehmer

Netzanschluss- und Übertragungsgebühren

Netzanschluss- und Übertragungsgebühren trugen im Jahr 2022 350 Millionen US-Dollar zum Umsatz von Pinnacle West bei.

• Gesamteinnahmen aus dem Netzanschluss: 350 Millionen US-Dollar
• Gebühren für die Nutzung der Übertragungsleitung: 225 Millionen US-Dollar
• Netzverbindungsgebühren: 125 Millionen US-Dollar

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Value Propositions

Highly reliable electric service, a top-quartile utility goal

Pinnacle West Capital Corporation employees continue to execute well, maintaining reliable electric service for its 1.4 million customers. The most important numbers that measure reliability place Pinnacle West Capital Corporation solidly in the top quartile of electric utilities across the nation.

Key operational statistics as of late 2025:

• Customer growth year-to-date Q3 2025: 2.4%.
• Residential sales growth year-to-date Q3 2025: 2%.
• Weather-normalized sales growth in Q3 2025: 5.4%.
• All-time record peak demand set on July 9, 2025: 8,527 megawatts (MW).

Supporting Arizona's economic growth with infrastructure capacity

Pinnacle West Capital Corporation is pursuing smart growth to support Arizona's expansion, which translates into healthy growth for the company. The capital plan is updated through 2028 to support critical investments in transmission and generation.

Infrastructure and Growth Projections:

Metric	Value/Target	Timeframe/Context
Long-term sales growth guidance	5% to 7%	Extended through 2030
Projected annual rate base growth	7% to 9%	Through 2027
Planned renewable energy, battery storage, and natural gas additions	9,805 MW	Between 2025 and 2028
Transmission CapEx planned	$2.6 billion cumulative	Through 2028
Identified transmission projects	$6 billion-plus	Through 2034

Industrial and data center customers are driving large, committed, and prospective demand.

Commitment to a carbon-neutral energy mix by 2050

Pinnacle West Capital Corporation has an aspirational goal to be carbon-neutral by 2050. The company is committed to shutting down all its coal-fired generation units by 2031.

• Coal-fired generation units retirement target: 2031.
• Carbon-free portion of 2025-2028 planned additions: More than 90% of 9,805 MW.
• Palo Verde Generating Station supplies about 27% of Arizona's electricity.

Customer affordability through disciplined O&M cost management

The company continues to prioritize reliability and affordability. Management has been focused on disciplined Operations & Maintenance (O&M) cost management, though forecasts have been updated.

Operations & Maintenance (O&M) Guidance:

• 2025 full-year O&M guidance range: $1.025 billion to $1.045 billion.
• Q3 2025 consolidated net income: $413.2 million, or $3.39 per diluted share.
• Rate case filing requested annual revenue increase: $580,000,000.

Stable, regulated return on equity (ROE) for investors

Pinnacle West Capital Corporation seeks to build Shareholder Value through strong credit metrics and financial health. The regulatory structure supports a stable return for investors.

Return on Equity Metrics:

ROE Type	Value	Context/Date
Allowed Return on Equity (ROE)	10.70%	Regulated Rate of Return
Reported Return on Equity (ROE)	8.57%	For the quarter ending November 3, 2025
2025 EPS Guidance Range	$4.90 to $5.10 per diluted share	Raised from $4.40-$4.60

The company has a 33-year streak of maintaining dividend payments.

Finance: review the impact of the $580 million revenue request on the allowed 10.70% ROE by next Tuesday.

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Customer Relationships

You're looking at the relationship Pinnacle West Capital Corporation, through its subsidiary Arizona Public Service (APS), maintains with the 1.4 million Arizona homes and businesses it serves. This relationship is foundational, given the regulated monopoly status in its service territory.

Dedicated regulatory-driven customer service and support

The service commitment is heavily influenced by regulatory outcomes. For instance, the current rate structure customers pay is based on Test Year expenses dating back to 2021. APS is actively engaged in its pending rate case, with a hearing scheduled for Q2 of next year (2026). The company aims for top quartile reliability among its peers; reliability is the product here. This focus was tested when APS customers set a new all-time record peak demand of 8,631 megawatts (MW) on August 7, 2025, during the third-hottest Arizona summer on record.

Proactive communication on outages and energy efficiency programs

Maintaining service during peak stress is a key customer interaction point. Employees executed well ensuring reliable service amid extreme summer temperatures, meeting the record demand. APS remains committed to providing cost-effective demand-side management and energy efficiency programs that help customers manage energy use. These initiatives support the aspirational goal of serving customers with 100% clean, carbon-free electricity by 2050.

Community engagement and utility bill assistance programs

Pinnacle West Capital Corp. actively engages in community giving, doling out money to entities like food banks and schools. Following the third quarter of 2025, the company specifically announced it expands support for community and utility bill assistance programs. The corporate parent is worth nearly $11 billion and has donated millions in the past to politicians, business groups, and community entities to advocate for sound public policy.

Long-term, non-contractual relationship due to monopoly status

The relationship is inherently long-term because APS is the sole regulated provider. The customer base is growing robustly, which management is confident will continue. Customer growth for 2025 is narrowed to the high end of the 2% to 2.5% range. This growth is fueling sales, with weather-normalized sales growth reaching 5.4% in the third quarter of 2025, driven by 6.6% Commercial & Industrial growth and 4.3% residential growth for that quarter. Long-term sales growth guidance has been raised to 5% to 7% annually through 2030.

Here's a quick look at the customer and sales momentum through the third quarter of 2025:

Metric	Value/Rate	Period/Context
Total Retail Customers Served	1.4 million	As of late 2025
2025 Customer Growth Guidance (Narrowed)	High end of 2% to 2.5%	Full Year 2025
Weather-Normalized Sales Growth	5.4%	Q3 2025
Residential Sales Growth	4.3%	Q3 2025
Long-Term Sales Growth Projection	5% to 7% annually through 2030

Digital self-service tools for billing and usage monitoring

Investing in advanced digital platforms is a key part of the strategy to deliver customer experience excellence while lowering costs over time. These efforts are showing results, as APS now ranks in the top 10 nationally in the J.D. Power Utility Digital Experience Survey. The company continues to build and enhance its customer-centric culture.

• APS serves approximately 1.4 million retail customers.
• 2025 consolidated earnings guidance raised to $4.90 to $5.10 per diluted share.
• Forecasted 2025 adjusted core Operating & Maintenance (O&M) expenses are in the $910 million to $920 million range.
• APS expects to add 9,805 MW of new capacity between 2025 and 2028.

Finance: draft 13-week cash view by Friday.

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Channels

You're looking at how Pinnacle West Capital Corporation, through its principal subsidiary Arizona Public Service (APS), gets its regulated product-electricity-to its customers. For a utility of this scale, the channels are massive physical assets mixed with modern digital touchpoints.

Physical transmission and distribution power lines

The core channel is the physical grid itself. Pinnacle West Capital Corporation has consolidated assets valued at nearly $30 billion as of its late 2025 reporting. This infrastructure supports about 6,500 megawatts of generating capacity across Arizona and New Mexico. You should note the scale of planned investment; the capital plan from 2025 through 2027 includes $7.6 billion dedicated to strengthening this infrastructure, incorporating new generation, and expanding transmission resources to keep up with demand.

The physical delivery system is under constant expansion to serve a booming territory. For instance, in 2025, APS installed 32,000 new residential meters, the most since the Great Recession, directly reflecting the growth in the physical delivery channel.

Customer service centers and call centers

When the lights are on, the service needs to be there too. Pinnacle West Capital Corporation serves approximately 1.4 million Arizona homes and businesses. To support these customers, the company focuses heavily on service quality. In a recent period, their call center was ranked number one in their peer set, and overall customer experience ranked in the top quartile according to JD Power metrics. This focus is key because, honestly, for a utility, reliability and service are inseparable from the product itself.

The operational focus is clear, aiming for top-tier performance in a high-demand environment. You can expect metrics like First Response Time and Average Resolution Time to be tightly managed, though the specific 2025 figures for those operational metrics aren't public like the financial results are.

Digital channels: website and mobile application for billing

For routine interactions, the digital channels are essential for efficiency. While specific adoption rates for the website and mobile application aren't broken out in the earnings reports, the company is clearly investing here, aiming for a top tier digital experience. These platforms are the primary way the 1.4 million customers manage billing, check usage, and access information without tying up a call center agent. This digital self-service capability is critical to managing the high volume generated by the 2.4% customer growth seen in 2025.

• Digital experience is a recognized component of their overall high customer experience ranking.
• Self-service options help manage billing and account inquiries for 1.4 million customers.
• Digital investment supports the overall goal of operational excellence.

Direct communication via regulatory filings and public outreach

For a regulated utility, communication with governing bodies and the public is a mandatory channel. This involves detailed regulatory filings, such as the 2025 APS rate case application, which requested a net revenue increase of $580 million. On the public outreach side, community stewardship is a channel for building trust. For example, their Heat Relief program partnered with agencies to connect more than 140,000 people with services, which is a direct, non-billing interaction channel.

Key Account Managers for large Commercial & Industrial (C&I) customers

Large C&I customers are a distinct and growing segment that requires dedicated management. This segment is driving significant demand, evidenced by a 6.6% sales increase in Q3 2025. Key Account Managers act as the direct channel for these high-load customers, which include semiconductor manufacturers and data centers. This direct relationship is vital for managing their substantial energy needs and ensuring infrastructure investments align with their growth plans, which is part of the long-term sales growth guidance recently raised to 5% to 7% through 2030.

Here's a quick look at the scale and growth impacting these direct channels as of late 2025:

Metric Category	Specific Data Point	Value/Amount
Customer Base Scale	Total Retail Customers Served	Approx. 1.4 million
Infrastructure Investment	Capital Plan (2025-2027)	$7.6 billion
Customer Growth (2025)	Q3 Retail Customer Growth Rate	2.4%
C&I Segment Performance	Q3 2025 Sales Increase	6.6%
Public Outreach Scale	Heat Relief Program People Connected	Over 140,000

Finance: draft 13-week cash view by Friday.

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Customer Segments

Pinnacle West Capital Corporation, through its principal subsidiary Arizona Public Service (APS), provides retail electricity service to approximately 1.4 million Arizona homes and businesses. The customer base is segmented primarily by usage profile and load characteristics.

The retail sales mix, reflecting the proportion of energy sold to each group, is detailed below, based on year-end 2024 figures which inform the 2025 operational structure.

Customer Segment Category	Retail Sales Mix Percentage	Key Metric/Example Data Point
Residential customers	52%	Projected residential customer growth for 2025 is at the high end of the 1.5% to 2.5% range.
Commercial and Industrial (C&I) customers	48%	Weather-normalized C&I sales growth reached 6.6% for the third quarter of 2025.
Large load customers (e.g., data centers, semiconductor manufacturers)	Included in C&I	TSMC announced a total investment of $165 billion in Arizona, with its first fabrication facility in full production.
Wholesale power purchasers and transmission service users	Separate from Retail Sales	Higher transmission service revenues contributed to the 2025 third-quarter net income increase of about $18 million compared to the 2024 third quarter.

The service territory is one of the fastest-growing in the United States, which directly impacts customer acquisition and energy demand forecasts for Pinnacle West Capital Corporation.

• Customers in the fastest-growing US service territory (Phoenix metro area): Maricopa County, home to about 70% of APS customers, ranked third for numeric growth among U.S. counties recently.
• Overall customer growth for 2025 is expected to be at the high end of the 2% to 2.5% range.
• The company anticipates customer growth will contribute 3% to 5% of its long-term weather-normalized sales growth.
• APS plans to add 9,805 MW of renewable energy, battery storage, and natural gas between 2025 and 2028 to meet this growth.

The Commercial and Industrial segment is a critical driver of near-term sales expansion, especially due to specific industrial anchors.

For the second quarter of 2025, the C&I segment showed robust sales growth of 8%, directly linked to the ramping of large manufacturing and data center customers.

The growth from large customers is significant enough that Pinnacle West Capital Corporation has updated its procedures for estimating unbilled revenues related to these customer classes.

Regarding transmission service users, Pinnacle West Capital Corporation's 2025 Ten-Year Plan includes developing 184 miles of new transmission lines and upgrading 687 miles of existing lines over the next 10 years to support the growing region, including a 28-mile 500kV line for the Phoenix metropolitan area.

The financial results for the third quarter of 2025 reflect the direct impact of these customer segments, with the company raising its 2025 consolidated earnings guidance to a range of $4.90 to $5.10 per diluted share.

The company's consolidated assets were nearly $30 billion as of the third quarter of 2025.

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Cost Structure

The cost structure for Pinnacle West Capital Corporation (PNW) is heavily weighted toward capital-intensive utility operations, driven by necessary infrastructure investment and the inherent costs of energy production and delivery in a growing service territory like Arizona.

High Capital Expenditures (CapEx)

Capital spending is a dominant cost driver, reflecting the need to maintain and upgrade assets to serve a rapidly expanding customer base. Pinnacle West Capital announced plans to invest approximately $\text{\$9.66 billion}$ in capital expenditures spanning from 2024 through 2027, focusing on generation, transmission, and distribution infrastructure. This translates to an average annual capital outlay near $\text{\$2.415 billion}$ to support reliability and clean energy integration.

Fuel and Purchased Power Expenses

These represent significant variable costs tied directly to energy generation and procurement. Volatile fuel and purchased power costs are explicitly noted as a risk factor for Pinnacle West Capital. For the third quarter of 2025, the impact of these costs, alongside weather effects, influenced the year-over-year change in operating revenue less these expenses.

Operations and Maintenance (O&M) Expenses

Operations and Maintenance (O&M) expenses are closely managed, with management signaling a focus on efficiency. For the full year 2025, Pinnacle West Capital revised its consolidated O&M guidance upward to a range of $\text{\$1.025 billion}$ to $\text{\$1.045 billion}$. The strategic goal is for these costs to decline on a per megawatt-hour (MWh) basis, which helps offset inflationary pressures and supports customer affordability, even as total spending increases due to system needs.

Here is a look at key financial metrics relevant to the cost base as of late 2025:

Cost/Metric Category	Latest Reported Value/Range	Reporting Period/Date
Forecasted 2024-2027 Total CapEx	$\text{\$9.66 billion}$	Through 2027
Revised 2025 Consolidated O&M Expense Guidance	$\text{\$1.025 billion}$ to $\text{\$1.045 billion}$	Full Year 2025
Interest Expense on Debt	$\text{\$93.53 million}$	Quarter Ending September 2025
Total Debt (Short-Term + Long-Term Debt & Capital Lease Obligation)	Approx. $\text{\$14.25 billion}$ (using Sep 2025 data)	September 2025
Weighted Average Cost of Capital (WACC)	$\text{4.55\%}$	As of November 27, 2025

Interest Expense on Long-Term Debt

Financing the substantial asset base requires significant debt, leading to interest expense. Pinnacle West Capital reported an Interest Expense on Debt of $\text{\$93.53 million}$ for the fiscal quarter ending in September of 2025. The company's capital structure, as referenced in mid-2025 regulatory filings, included approximately $\text{47.65\%}$ long-term debt. The overall cost of financing, represented by the Weighted Average Cost of Capital (WACC), was most recently calculated at $\text{4.55\%}$ as of late November 2025.

Regulatory Compliance and Depreciation/Amortization Costs

Depreciation and Amortization (D&A) is a non-cash cost that reflects the wear and tear of the utility plant. D&A costs have been variable; for instance, second-quarter 2025 results showed higher D&A due to new plant additions, while third-quarter 2025 results showed lower D&A partially due to operations ceasing at the Cholla plant.

Other regulatory and compliance costs are embedded in operations, but the need for timely cost recovery is managed through regulatory mechanisms. You should track these key cost components:

• Higher interest charges were noted as a negative factor impacting net income in the second quarter of 2025 compared to the prior year.
• Depreciation and amortization expense is directly influenced by the pace of capital additions and asset retirements.
• The company's 2026 earnings projection anticipates a decline from 2025 levels, partly due to expected higher financing and D&A costs.
• Regulatory lag remains a risk, as capital spending ramps up before rate relief takes effect, potentially pinching margins.

Finance: draft 13-week cash view by Friday.

Pinnacle West Capital Corporation (PNW) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Pinnacle West Capital Corporation (PNW) as of late 2025. The business model is heavily regulated, meaning revenue stability comes from serving a growing customer base under approved tariffs. It's all about volume and approved investment returns, so let's look at the hard numbers driving the top line.

The primary revenue engine is the regulated retail electric sales through its principal subsidiary, Arizona Public Service (APS). As of the third quarter of 2025, APS is serving approximately 1.4 million customers across central Arizona. This customer base is expanding; for the third quarter of 2025, the company reported a 2.4% increase in its customer base year-over-year. That growth, combined with a hot summer, drove weather-normalized sales growth of 5.4% for the quarter.

Here's a snapshot of the recent top-line performance, which is what we use to gauge the health of the revenue base:

Metric	Value	Period
Reported Operating Revenues	$1,820.7 million	Q3 2025
Q3 2025 Net Income Attributable to Common Shareholders	$413.2 million	Q3 2025
Reported Q3 2025 Earnings Per Share (EPS)	$3.39	Q3 2025
Long-Term Sales Growth Target	5% to 7% through 2030

Another key component feeding the revenue stream is income derived from infrastructure investment. Pinnacle West Capital Corporation is executing on a significant capital plan, with APS intending to invest more than $2.5 billion annually through 2028 for infrastructure additions and upgrades. The return on this investment is realized through rate base growth. Management projects rate base growth at 7% to 9% through 2028.

Beyond direct retail sales, the company captures revenue from its transmission assets. The Q3 2025 results specifically cited higher transmission service revenues as a positive contributor to the quarter's performance. This revenue stream is less dependent on local weather and more on system utilization and contracts with third parties.

Management's confidence in these revenue drivers-customer growth, sales volume, and capital deployment-is reflected in their updated outlook. For the full year 2025, Pinnacle West Capital Corporation raised its consolidated earnings per share (EPS) guidance to a range of $4.90 to $5.10 per diluted share. That's a significant lift from the previous range of $4.40 to $4.60. Looking ahead, the 2026 consolidated earnings guidance is set between $4.55 to $4.75 per diluted share on a weather-normalized basis.

To summarize the revenue drivers in a list, you see:

• Regulated retail electric sales to 1.4 million customers.
• Revenue tied to rate base growth projected at 7% to 9% through 2028.
• Contribution from higher transmission service revenues.
• Total Q3 2025 operating revenues of $1,820.7 million.
• 2025 full-year EPS guidance range raised to $4.90 to $5.10.

Finance: draft 13-week cash view by Friday.