Pinnacle West Capital Corporation (PNW): Canvas del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la provisión de energía, Pinnacle West Capital Corporation (PNW) surge como un jugador fundamental en el ecosistema de electricidad de Arizona, equilibrando estratégicamente la generación de energía tradicional con innovadoras soluciones de energía renovable. Este lienzo integral de modelo de negocio presenta cómo PNW transforma desafíos energéticos complejos en propuestas de valor sostenible, aprovechando tecnologías de vanguardia, infraestructura robusta y un enfoque centrado en el cliente que va más allá de la mera distribución de electricidad. Al integrar a la perfección la innovación tecnológica, la responsabilidad ambiental y las asociaciones estratégicas, PNW está redefiniendo el futuro del sector de servicios públicos, ofreciendo a los residentes y empresas de Arizona un modelo convincente de gestión de energía moderna.

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: asociaciones clave

Arizona Public Service Electric (subsidiaria de servicios públicos primarios)

Como la subsidiaria principal de Pinnacle West Capital Corporation, Arizona Public Service Electric (APS) mantiene asociaciones críticas con varias partes interesadas.

Tipo de asociación	Detalles	Valor anual
Operaciones de servicios públicos	APS atiende a 1,3 millones de clientes eléctricos en Arizona	$ 5.2 mil millones de ingresos (2022)
Territorio de servicio	Cubre 11,000 millas cuadradas en Arizona	95% de la población de Arizona

Fabricantes de equipos para infraestructura de generación de energía

Pinnacle West colabora con fabricantes de equipos especializados para la infraestructura de generación de energía.

• General Electric (tecnologías de turbinas)
• Energía de Siemens
• Sistemas de energía Mitsubishi

Fabricante	Tipo de equipo	Inversión
Electric General	Turbinas de gas	Inversión de $ 350 millones (2022-2023)
Energía de Siemens	Infraestructura renovable	Asociación de $ 275 millones

Proveedores de tecnología de energía renovable

Pinnacle West se asocia activamente con proveedores de tecnología de energía renovable para expandir la cartera de energía limpia.

• Primero solar
• SunPower Corporation
• Recursos energéticos nextera

Proveedor	Enfoque tecnológico	Capacidad renovable
Primero solar	Fabricación de panel fotovoltaico	Proyecto solar de 350 MW
Energía nextera	Desarrollo eólico y solar	Integración renovable de 500 MW

Organismos reguladores del gobierno local y estatal

Pinnacle West mantiene asociaciones estratégicas con agencias reguladoras para garantizar el cumplimiento y la alineación estratégica.

• Comisión de la Corporación de Arizona
• Departamento de Calidad Ambiental de Arizona
• Comisión Reguladora Federal de Energía (FERC)

Instituciones financieras para inversiones de capital

Las asociaciones financieras críticas apoyan las estrategias de infraestructura y expansión de Pinnacle West.

Institución financiera	Enfoque de asociación	Monto de la inversión
JPMorgan Chase	Financiamiento de infraestructura	Capacidad de crédito de $ 750 millones
Banco de América	Inversiones de energía renovable	Emisión de bonos verdes de $ 500 millones

Pinnacle West Capital Corporation (PNW) - Modelo de negocio: actividades clave

Generación y distribución de energía eléctrica

Pinnacle West Capital Corporation genera y distribuye electricidad a través del Servicio Público de Arizona (APS), atendiendo a aproximadamente 1.3 millones de clientes en Arizona. Capacidad de generación total a partir de 2023: 6.298 MW.

Fuente de generación	Capacidad (MW)	Porcentaje
Nuclear	3,942	62.6%
Gas natural	1,574	25%
Energía renovable	782	12.4%

Desarrollo del proyecto de energía renovable

Comprometido con la expansión de energía renovable con Inversión de $ 3.2 mil millones en infraestructura de energía limpia.

• Tubería del proyecto solar: 1.500 MW para 2025
• Integración de energía eólica: 400 MW planeado
• Capacidad de almacenamiento de la batería: 250 MW

Mantenimiento de la infraestructura de la cuadrícula

Inversión anual de infraestructura: $ 1.1 mil millones para modernización y confiabilidad de la red.

Componente de infraestructura	Inversión ($ m)
Actualización de líneas de transmisión	425
Modernización de la subestación	315
Tecnologías de cuadrícula inteligente	360

Gestión del programa de eficiencia energética

Implementados programas de eficiencia energética con Presupuesto anual de $ 78 millones.

• RECUPOS DE EFICIENCIA ENERGÍA RESIDENCIAL: $ 35 millones
• Programas de gestión de energía comercial: $ 28 millones
• Asistencia energética de bajos ingresos: $ 15 millones

Servicio al cliente y soluciones energéticas

Operaciones de servicio al cliente con recursos dedicados y plataformas tecnológicas.

Métrico de servicio	Valor
Representantes de servicio al cliente	850
Usuarios de plataforma digital	620,000
Volumen anual de interacción con el cliente	4.2 millones

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: recursos clave

Instalaciones de generación de energía

Pinnacle West Capital Corporation opera las siguientes instalaciones de generación de energía:

Tipo de instalación	Capacidad (MW)	Número de instalaciones
Nuclear (Palo Verde)	3,942	1
Solar	2,232	Múltiple
Combustible fósil (gas natural)	4,236	5

Infraestructura de transmisión y distribución

Detalles de la infraestructura del Servicio Público de Arizona (APS):

• Total de transmisión: 6,300 millas
• Líneas de distribución: 28,000 millas
• Territorio de servicio: 95,000 millas cuadradas
• Substaciones: 280

Ingeniería especializada y fuerza laboral técnica

Categoría de empleado	Número total
Total de empleados	6,300
Ingenieros	1,200
Especialistas técnicos	1,800

Tecnologías avanzadas de gestión de energía

• Inversiones de tecnología de cuadrícula inteligente: $ 425 millones
• Capacidad de almacenamiento de energía: 350 MW
• Infraestructura de carga de vehículos eléctricos: 2,500 estaciones de carga

Capital financiero para inversiones de infraestructura

Métrica financiera	Cantidad
Activos totales	$ 23.4 mil millones
Gastos de capital anuales	$ 1.6 mil millones
Deuda a largo plazo	$ 7.2 mil millones

Pinnacle West Capital Corporation (PNW) - Modelo de negocio: propuestas de valor

Suministro de electricidad confiable para residentes de Arizona

El Servicio Público de Arizona (APS), una subsidiaria de Pinnacle West, atiende a aproximadamente 1.3 millones de clientes eléctricos en 11 condados en Arizona. La compañía entrega electricidad al 95.7% de la población de Arizona, que cubre 2.900 millas cuadradas.

Métrico de servicio	Valor
Total de clientes	1.3 millones
Cobertura del área de servicio	2.900 millas cuadradas
Población atendida	95.7%

Opciones de energía sostenible y cada vez más renovable

A partir de 2022, la cartera de energía renovable de Pinnacle West incluye:

• Capacidad de generación solar: 2.200 megavatios
• Capacidad de generación de viento: 390 megavatios
• Comprometido a 65% de energía sin carbono para 2030

Tasas de electricidad competitiva

Tasas de electricidad residencial promedio para APS en 2023:

Categoría de tarifa	Precio por kWh
Tarifa residencial	$0.1257
Comparación promedio nacional	3.4% por debajo del promedio nacional

Programas avanzados de eficiencia energética

Inversiones y programas de eficiencia energética:

• Inversión anual de eficiencia energética: $ 52.4 millones
• Ahorro de energía logrado: 328 Gigawatt-Hours en 2022
• Reembolsos de clientes para electrodomésticos de eficiencia energética: hasta $ 1,200

Compromiso con la sostenibilidad ambiental

Métricas de sostenibilidad ambiental:

Métrica de sostenibilidad	Valor objetivo/actual
Reducción de emisiones de carbono	Reducción del 80% por 2040
Generación actual libre de carbono	50%
Inversión total en energía limpia	$ 3.2 mil millones

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: relaciones con los clientes

Plataformas de servicio al cliente digital

Pinnacle West Capital Corporation opera el portal de servicio al cliente del Servicio Público de Arizona (APS) con las siguientes métricas clave:

• Registros de cuentas en línea: 1.1 millones de clientes
• Descargas de aplicaciones móviles: 427,000 a partir de 2023
• Tasa de pago de la factura digital: 68% del total de clientes

Canal de servicio digital	Tasa de participación del cliente
Portal web	72%
Aplicación móvil	53%
Plataformas de autoservicio	61%

Informes de consumo de energía personalizados

APS proporciona un seguimiento detallado de consumo de energía con:

• Monitoreo de uso de energía por hora
• Recomendaciones personalizadas de eficiencia energética
• Informes comparativos de consumo de energía del vecindario

Programas de participación comunitaria

Las métricas de interacción comunitaria incluyen:

• Inversión comunitaria anual: $ 3.2 millones
• Programas de educación del cliente: 42 eventos anuales
• Tasa de participación del cliente: 37%

Canales directos de facturación y soporte

Canal de soporte	Tiempo de respuesta promedio	Tasa de satisfacción del cliente
Soporte telefónico	7.5 minutos	86%
Soporte por correo electrónico	24 horas	79%
Chat en vivo	4.2 minutos	91%

Servicios de consulta de eficiencia energética

Estadísticas del programa de eficiencia:

• Auditorías de energía gratuita realizadas: 12,500 anuales
• Ahorro total de energía: 47 millones de kWh por año
• Participación del cliente: 22% de los clientes residenciales

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: canales

Portal de clientes en línea

APS Energy Central Online Portal sirve aproximadamente 1,2 millones de cuentas de clientes en Arizona. El portal procesó 3,4 millones de pagos de facturas en línea en 2022, lo que representa el 68% de las transacciones totales de los clientes.

Característica de portal	Estadísticas de uso
Usuarios activos mensuales	782,000
Tasa de adopción de pago de facturas en línea	62%
Volumen anual de transacción digital	41.6 millones

Aplicación móvil

La aplicación APS Mobile admite la gestión de energía en tiempo real para los clientes.

• Aplicación Descargar el recuento: 345,000
• Usuarios móviles activos mensuales: 215,000
• Transacciones de pago móvil: 1.2 millones anuales

Centros de servicio al cliente físico

Pinnacle West opera 12 ubicaciones físicas de servicio al cliente en Arizona.

Tipo de ubicación	Número de centros	Interacciones anuales del cliente
Centros urbanos	8	426,000
Centros rurales	4	89,000

Soporte del centro de llamadas

APS mantiene la infraestructura centralizada de atención al cliente.

• Volumen anual de llamadas: 2.6 millones
• Tiempo de respuesta promedio: 3.2 minutos
• Tasa de satisfacción del cliente: 87%

Programas de divulgación comunitaria local

Los canales de participación comunitaria incluyen programas de eficiencia energética e iniciativas educativas.

Programa de divulgación	Participantes anuales	Inversión
Talleres de eficiencia energética	12,500	$ 1.3 millones
Programas de educación escolar	45,000 estudiantes	$750,000

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: segmentos de clientes

Consumidores de electricidad residencial

A partir de 2022, el Servicio Público de Arizona (APS), una subsidiaria de Pinnacle West Capital Corporation, atiende a aproximadamente 1.3 millones de clientes de electricidad residencial en Arizona.

Categoría de clientes	Número de clientes	Factura mensual promedio
Clientes residenciales	1,300,000	$132.45

Clientes comerciales de negocios

Pinnacle West atiende a aproximadamente 126,000 clientes de electricidad comercial en Arizona.

• Segmento de pequeñas empresas
• Empresas comerciales de tamaño mediano
• Grandes clientes corporativos

Tamaño de negocio	Conteo de clientes	Consumo de electricidad (MWH)
Pequeñas empresas	85,000	1,200,000
Empresas medianas	35,000	2,500,000
Grandes empresas	6,000	3,800,000

Usuarios eléctricos industriales

Los clientes industriales representan un segmento significativo con aproximadamente 1,200 consumidores de electricidad de alto volumen.

Sector	Número de clientes	Consumo anual de electricidad (MWH)
Fabricación	450	4,500,000
Minería	250	2,800,000
Tecnología	500	3,200,000

Entidades municipales y gubernamentales

Pinnacle West atiende a 250 clientes municipales y gubernamentales en Arizona, proporcionando soporte crítico de infraestructura.

Tipo de gobierno	Conteo de clientes	Gasto anual de electricidad
Gobiernos municipales	120	$45,000,000
Instalaciones del condado	80	$22,000,000
Instalaciones estatales	50	$35,000,000

Consumidores de electricidad del sector agrícola

Los clientes agrícolas comprenden aproximadamente 2.500 consumidores de electricidad en las regiones agrícolas de Arizona.

Subsector agrícola	Conteo de clientes	Consumo anual de electricidad (MWH)
Cultivo de cultivos	1,800	1,500,000
Ganado	450	800,000
Sistemas de riego	250	1,200,000

Pinnacle West Capital Corporation (PNW) - Modelo de negocio: Estructura de costos

Mantenimiento de equipos de generación de energía

Costos de mantenimiento anual para equipos de generación de energía: $ 187.4 millones en 2022

Tipo de equipo	Gasto de mantenimiento
Planta de energía nuclear	$ 92.6 millones
Centrales de carbón	$ 45.3 millones
Instalaciones de gas natural	$ 49.5 millones

Costos de adquisición de combustible

Gastos totales de adquisición de combustible: $ 312.8 millones en 2022

• Gas natural: $ 178.6 millones
• Carbón: $ 94.2 millones
• Combustible nuclear: $ 40 millones

Compensación de empleados

Compensación total de empleados: $ 342.5 millones en 2022

Categoría de empleado	Compensación
Compensación ejecutiva	$ 18.7 millones
Personal de operaciones	$ 213.4 millones
Personal administrativo	$ 110.4 millones

Desarrollo y actualizaciones de infraestructura

Inversión total de infraestructura: $ 456.2 millones en 2022

• Modernización de la cuadrícula: $ 187.6 millones
• Infraestructura de energía renovable: $ 134.5 millones
• Actualizaciones de la línea de transmisión: $ 134.1 millones

Gastos de cumplimiento regulatorio

Costos de cumplimiento regulatorio total: $ 92.3 millones en 2022

Categoría de cumplimiento	Gastos
Regulaciones ambientales	$ 42.6 millones
Cumplimiento de seguridad	$ 31.7 millones
Informes y documentación	$ 18 millones

Pinnacle West Capital Corporation (PNW) - Modelo de negocios: flujos de ingresos

Venta de electricidad residencial

En 2022, el Servicio Público de Arizona (APS), una subsidiaria de Pinnacle West, informó ingresos por ventas de electricidad residencial de $ 2.4 mil millones. La tasa promedio de electricidad residencial fue de 13.42 centavos por kilovatio-hora.

Segmento de clientes residenciales	Ingresos anuales	Número de clientes
Venta de electricidad residencial	$ 2.4 mil millones	1.2 millones

Facturación de electricidad comercial

Las ventas comerciales de electricidad generaron $ 1.8 mil millones en ingresos para Pinnacle West en 2022, lo que representa aproximadamente el 35% de los ingresos totales de ventas de electricidad.

Segmento de clientes comerciales	Ingresos anuales	Consumo promedio
Venta de electricidad comercial	$ 1.8 mil millones	4.500 kWh por mes

Créditos de energía renovable

Pinnacle West generó $ 45 millones a partir de ventas de crédito de energía renovable en 2022, con créditos solares y eólicos que comprenden la mayoría de este flujo de ingresos.

• Ingresos totales de créditos de energía renovable: $ 45 millones
• Ventas de crédito solar: $ 28 millones
• Ventas de crédito eólico: $ 17 millones

Tarifas del programa de eficiencia energética

Los programas de eficiencia energética generaron $ 62 millones en ingresos para Pinnacle West en 2022, con tarifas recaudadas de clientes residenciales y comerciales.

Tipo de programa	Ganancia	Participación del cliente
Eficiencia energética residencial	$ 38 millones	65,000 participantes
Eficiencia energética comercial	$ 24 millones	2.500 participantes comerciales

Conexión de la cuadrícula y cargos de transmisión

Los cargos de conexión y transmisión de la red contribuyeron con $ 350 millones a los ingresos de Pinnacle West en 2022.

• Ingresos de conexión total de la cuadrícula: $ 350 millones
• Tarifas de uso de la línea de transmisión: $ 225 millones
• Cargos de interconexión de cuadrícula: $ 125 millones

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.