Pinnacle West Capital Corporation (PNW): Business Model Canvas [Jan-2025 Mis à jour]

Dans le paysage dynamique de la fourniture d'énergie, Pinnacle West Capital Corporation (PNW) émerge comme un acteur pivot dans l'écosystème électrique de l'Arizona, équilibrant stratégiquement la production d'électricité traditionnelle avec des solutions d'innovations d'énergie renouvelable. Cette toile complète du modèle commercial dévoile comment PNW transforme les défis énergétiques complexes en propositions de valeur durable, en tirant parti des technologies de pointe, des infrastructures robustes et une approche centrée sur le client qui va au-delà de la simple distribution d'électricité. En intégrant de manière transparente l'innovation technologique, la responsabilité environnementale et les partenariats stratégiques, PNW redéfinit l'avenir du secteur des services publics, offrant aux résidents et aux entreprises de l'Arizona un modèle convaincant de gestion de l'énergie moderne.

Pinnacle West Capital Corporation (PNW) - Modèle commercial: partenariats clés

Arizona Public Service Electric (filiale de l'utilitaire primaire)

En tant que première filiale de Pinnacle West Capital Corporation, Arizona Public Service Electric (APS) maintient des partenariats critiques avec diverses parties prenantes.

Type de partenariat	Détails	Valeur annuelle
Opérations de services publics	APS dessert 1,3 million de clients électriques en Arizona	5,2 milliards de dollars de revenus (2022)
Territoire de service	Couvre 11 000 miles carrés en Arizona	95% de la population de l'Arizona

Fabricants d'équipement pour l'infrastructure de production d'électricité

Pinnacle West collabore avec des fabricants d'équipements spécialisés pour l'infrastructure de production d'électricité.

• General Electric (Turbine Technologies)
• Siemens Energy
• Systèmes de puissance Mitsubishi

Fabricant	Type d'équipement	Investissement
Électrique générale	Turbines à gaz	Investissement de 350 millions de dollars (2022-2023)
Siemens Energy	Infrastructure renouvelable	Partenariat de 275 millions de dollars

Fournisseurs de technologies d'énergie renouvelable

Pinnacle West s'associe activement aux fournisseurs de technologies d'énergie renouvelable pour étendre le portefeuille d'énergie propre.

• Premier solaire
• Sunpower Corporation
• Nextera Energy Resources

Fournisseur	Focus technologique	Capacité renouvelable
Premier solaire	Fabrication du panneau photovoltaïque	Projet solaire de 350 MW
Énergie nextère	Développement du vent et du solaire	Intégration renouvelable de 500 MW

Organes réglementaires du gouvernement local et des États

Pinnacle West maintient des partenariats stratégiques avec les organismes de réglementation pour assurer la conformité et l'alignement stratégique.

• Arizona Corporation Commission
• Arizona Department of Environmental Quality
• Commission fédérale de la réglementation de l'énergie (FERC)

Institutions financières pour les investissements en capital

Les partenariats financiers critiques soutiennent les stratégies d'infrastructure et d'expansion de Pinnacle West.

Institution financière	Focus de partenariat	Montant d'investissement
JPMorgan Chase	Financement des infrastructures	CONDITION DE CRÉDIT 750 millions de dollars
Banque d'Amérique	Investissements en énergie renouvelable	Émission d'obligations vertes de 500 millions de dollars

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: Activités clés

Génération et distribution d'énergie électrique

Pinnacle West Capital Corporation génère et distribue l'électricité via l'Arizona Public Service (APS), desservant environ 1,3 million de clients dans l'Arizona. Capacité de production totale en 2023: 6 298 MW.

Source de génération	Capacité (MW)	Pourcentage
Nucléaire	3,942	62.6%
Gaz naturel	1,574	25%
Énergie renouvelable	782	12.4%

Développement du projet d'énergie renouvelable

Attaché à l'expansion des énergies renouvelables avec 3,2 milliards de dollars d'investissement dans une infrastructure d'énergie propre.

• Pipeline de projet solaire: 1 500 MW d'ici 2025
• Intégration d'énergie éolienne: 400 MW planifiés
• Capacité de stockage de la batterie: 250 MW

Maintenance des infrastructures de grille

Investissement annuel sur les infrastructures: 1,1 milliard de dollars pour la modernisation et la fiabilité du réseau.

Composant d'infrastructure	Investissement ($ m)
Mise à niveau des lignes de transmission	425
Modernisation de la sous-station	315
Technologies de grille intelligente	360

Gestion du programme d'efficacité énergétique

Mis en œuvre des programmes d'efficacité énergétique avec Budget annuel de 78 millions de dollars.

• Remises d'efficacité énergétique résidentielle: 35 millions de dollars
• Programmes commerciaux de gestion de l'énergie: 28 millions de dollars
• Assistance énergétique à faible revenu: 15 millions de dollars

Service client et solutions énergétiques

Opérations de service à la clientèle avec des ressources dédiées et des plateformes technologiques.

Métrique de service	Valeur
Représentants du service à la clientèle	850
Utilisateurs de plate-forme numérique	620,000
Volume d'interaction client annuel	4,2 millions

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: Ressources clés

Installations de production d'électricité

Pinnacle West Capital Corporation exploite les installations de production d'électricité suivantes:

Type d'installation	Capacité (MW)	Nombre d'installations
Nucléaire (Palo verde)	3,942	1
Solaire	2,232	Multiple
Combustible fossile (gaz naturel)	4,236	5

Infrastructure de transmission et de distribution

Détails de l'infrastructure de la fonction publique de l'Arizona (APS):

• Lignes de transmission totales: 6 300 miles
• Lignes de distribution: 28 000 miles
• Territoire de service: 95 000 miles carrés
• Soules: 280

Ingénierie qualifiée et main-d'œuvre technique

Catégorie des employés	Nombre total
Total des employés	6,300
Ingénieurs	1,200
Spécialistes techniques	1,800

Technologies avancées de gestion de l'énergie

• Investissements technologiques de la grille intelligente: 425 millions de dollars
• Capacité de stockage d'énergie: 350 MW
• Infrastructure de charge de véhicule électrique: 2 500 bornes de recharge

Capital financier pour les investissements des infrastructures

Métrique financière	Montant
Actif total	23,4 milliards de dollars
Dépenses en capital annuelles	1,6 milliard de dollars
Dette à long terme	7,2 milliards de dollars

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: propositions de valeur

Approvisionnement en électricité fiable pour les résidents de l'Arizona

Arizona Public Service (APS), une filiale de Pinnacle West, dessert environ 1,3 million de clients électriques dans 11 comtés en Arizona. La société offre l'électricité à 95,7% de la population de l'Arizona, couvrant 2 900 miles carrés.

Métrique de service	Valeur
Total des clients	1,3 million
Couverture de zone de service	2 900 milles carrés
Population a servi	95.7%

Options d'énergie durable et de plus en plus renouvelable

En 2022, le portefeuille des énergies renouvelables de Pinnacle West comprend:

• Capacité de génération solaire: 2 200 mégawatts
• Capacité de génération de vent: 390 mégawatts
• Engagé à 65% d'énergie sans carbone d'ici 2030

Taux d'électricité compétitifs

Tarifs d'électricité résidentiels moyens pour APS en 2023:

Catégorie de taux	Prix ​​par kWh
Tarif résidentiel	$0.1257
Comparaison moyenne nationale	3,4% inférieur à la moyenne nationale

Programmes avancés d'efficacité énergétique

Investissements et programmes d'efficacité énergétique:

• Investissement annuel de l'efficacité énergétique: 52,4 millions de dollars
• Économies d'énergie réalisées: 328 gigawattheures en 2022
• Rebout des clients pour les appareils économes en énergie: jusqu'à 1 200 $

Engagement envers la durabilité environnementale

Métriques de la durabilité environnementale:

Métrique de la durabilité	Valeur cible / courant
Réduction des émissions de carbone	Réduction à 80% d'ici 2040
Génération actuelle sans carbone	50%
Investissement total dans l'énergie propre	3,2 milliards de dollars

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: Relations clients

Plateformes de service client numérique

Pinnacle West Capital Corporation exploite le portail de service client en ligne de l'Arizona Service (APS) avec les mesures clés suivantes:

• Inscriptions de compte en ligne: 1,1 million de clients
• Téléchargements d'applications mobiles: 427 000 en 2023
• Taux de paiement des factures numériques: 68% du total des clients

Canal de service numérique	Taux d'engagement client
Portail Web	72%
Application mobile	53%
Plates-formes en libre-service	61%

Informations sur la consommation d'énergie personnalisées

APS fournit un suivi détaillé de la consommation d'énergie avec:

• Surveillance horaire de la consommation d'énergie
• Recommandations d'efficacité énergétique personnalisées
• Rapports comparatifs de consommation d'énergie du quartier

Programmes d'engagement communautaire

Les mesures d'interaction communautaire comprennent:

• Investissement communautaire annuel: 3,2 millions de dollars
• Programmes d'éducation client: 42 événements annuels
• Taux de participation au client: 37%

Canaux de facturation et de soutien directs

Canal de support	Temps de réponse moyen	Taux de satisfaction client
Support téléphonique	7,5 minutes	86%
Assistance par e-mail	24 heures	79%
Chat en direct	4,2 minutes	91%

Services de consultation de l'efficacité énergétique

Statistiques du programme d'efficacité:

• Audits d'énergie gratuits réalisés: 12 500 par an
• Économies d'énergie totales: 47 millions de kWh par an
• Participation des clients: 22% des clients résidentiels

Pinnacle West Capital Corporation (PNW) - Modèle commercial: canaux

Portail client en ligne

Le portail en ligne APS Energy Central dessert environ 1,2 million de comptes clients en Arizona. Le portail a traité 3,4 millions de paiements de factures en ligne en 2022, ce qui représente 68% du total des transactions clients.

Caractéristique du portail	Statistiques d'utilisation
Utilisateurs actifs mensuels	782,000
Taux d'adoption de la rémunération des factures en ligne	62%
Volume annuel de transaction numérique	41,6 millions

Application mobile

L'application mobile APS prend en charge la gestion de l'énergie en temps réel pour les clients.

• Compte de téléchargement d'applications: 345 000
• Utilisateurs mobiles actifs mensuels: 215 000
• Transactions de paiement mobile: 1,2 million par an

Centres de service client physique

Pinnacle West exploite 12 emplacements de service client physique à travers l'Arizona.

Type d'emplacement	Nombre de centres	Interactions annuelles du client
Centres urbains	8	426,000
Centres ruraux	4	89,000

Assistance du centre d'appels

APS maintient l'infrastructure de support client centralisé.

• Volume d'appel annuel: 2,6 millions
• Temps de réponse moyen: 3,2 minutes
• Taux de satisfaction client: 87%

Programmes locaux de sensibilisation communautaire

Les canaux d'engagement communautaire comprennent des programmes d'efficacité énergétique et des initiatives éducatives.

Programme de sensibilisation	Participants annuels	Investissement
Ateliers d'efficacité énergétique	12,500	1,3 million de dollars
Programmes d'éducation scolaire	45 000 étudiants	$750,000

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: segments de clientèle

Consommateurs d'électricité résidentielle

En 2022, Arizona Public Service (APS), une filiale de Pinnacle West Capital Corporation, dessert environ 1,3 million de clients d'électricité résidentielle en Arizona.

Catégorie client	Nombre de clients	Facture mensuelle moyenne
Clients résidentiels	1,300,000	$132.45

Clients commerciaux

Pinnacle West dessert environ 126 000 clients commerciaux d'électricité à travers l'Arizona.

• Segment des petites entreprises
• Entreprises commerciales de taille moyenne
• GRANDES clients d'entreprise

Taille de l'entreprise	Nombre de clients	Consommation d'électricité (MWH)
Petites entreprises	85,000	1,200,000
Entreprises moyennes	35,000	2,500,000
Grandes entreprises	6,000	3,800,000

Utilisateurs de puissance industrielle

Les clients industriels représentent un segment important avec environ 1 200 consommateurs d'électricité à volume élevé.

Secteur	Nombre de clients	Consommation d'électricité annuelle (MWH)
Fabrication	450	4,500,000
Exploitation minière	250	2,800,000
Technologie	500	3,200,000

Entités municipales et gouvernementales

Pinnacle West dessert 250 clients municipaux et gouvernementaux de l'Arizona, fournissant un soutien critique aux infrastructures.

Type de gouvernement	Nombre de clients	Dépenses d'électricité annuelles
Gouvernements municipaux	120	$45,000,000
Installations du comté	80	$22,000,000
Installations d'État	50	$35,000,000

Consommateurs d'électricité du secteur agricole

Les clients agricoles comprennent environ 2 500 consommateurs d'électricité dans les régions agricoles de l'Arizona.

Sous-secteur agricole	Nombre de clients	Consommation d'électricité annuelle (MWH)
Agriculture des cultures	1,800	1,500,000
Bétail	450	800,000
Systèmes d'irrigation	250	1,200,000

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: Structure des coûts

Entretien de l'équipement de production d'énergie

Coûts de maintenance annuels pour l'équipement de production d'électricité: 187,4 millions de dollars en 2022

Type d'équipement	Frais de maintenance
Centrale nucléaire	92,6 millions de dollars
Centrales au charbon	45,3 millions de dollars
Installations de gaz naturel	49,5 millions de dollars

Coûts d'approvisionnement en carburant

Total des frais d'approvisionnement en carburant: 312,8 millions de dollars en 2022

• Gaz naturel: 178,6 millions de dollars
• Charbon: 94,2 millions de dollars
• Combustible nucléaire: 40 millions de dollars

Compensation des employés

Compensation totale des employés: 342,5 millions de dollars en 2022

Catégorie des employés	Compensation
Rémunération des dirigeants	18,7 millions de dollars
Personnel des opérations	213,4 millions de dollars
Personnel administratif	110,4 millions de dollars

Développement et mises à niveau des infrastructures

Investissement total des infrastructures: 456,2 millions de dollars en 2022

• Modernisation de la grille: 187,6 millions de dollars
• Infrastructure d'énergie renouvelable: 134,5 millions de dollars
• Mises à niveau de la ligne de transmission: 134,1 millions de dollars

Frais de conformité réglementaire

Coût total de conformité réglementaire: 92,3 millions de dollars en 2022

Catégorie de conformité	Frais
Règlements environnementaux	42,6 millions de dollars
Conformité à la sécurité	31,7 millions de dollars
Rapports et documentation	18 millions de dollars

Pinnacle West Capital Corporation (PNW) - Modèle d'entreprise: Strots de revenus

Ventes d'électricité résidentielle

En 2022, Arizona Public Service (APS), une filiale de Pinnacle West, a déclaré un chiffre d'affaires résidentiel de 2,4 milliards de dollars. Le taux d'électricité résidentiel moyen était de 13,42 cents par kilowatt-heure.

Segment de clientèle résidentiel	Revenus annuels	Nombre de clients
Ventes d'électricité résidentielle	2,4 milliards de dollars	1,2 million

Facturation commerciale d'électricité

Les ventes commerciales d'électricité ont généré 1,8 milliard de dollars de revenus pour Pinnacle West en 2022, ce qui représente environ 35% du chiffre d'affaires total des ventes d'électricité.

Segment de clientèle commercial	Revenus annuels	Consommation moyenne
Ventes d'électricité commerciale	1,8 milliard de dollars	4 500 kWh par mois

Crédits d'énergie renouvelable

Pinnacle West a généré 45 millions de dollars à partir des ventes de crédit aux énergies renouvelables en 2022, avec des crédits solaires et éoliens comprenant la majorité de cette source de revenus.

• Revenu total des crédits d'énergie renouvelable: 45 millions de dollars
• Ventes de crédit solaire: 28 millions de dollars
• Ventes de crédit au vent: 17 millions de dollars

Frais de programme d'efficacité énergétique

Les programmes d'efficacité énergétique ont généré 62 millions de dollars de revenus pour Pinnacle West en 2022, avec des frais recueillis auprès des clients résidentiels et commerciaux.

Type de programme	Revenu	Participation du client
Efficacité énergétique résidentielle	38 millions de dollars	65 000 participants
Efficacité énergétique commerciale	24 millions de dollars	2 500 participants aux entreprises

Connexion de la grille et frais de transmission

Les frais de connexion et de transmission de la grille ont contribué 350 millions de dollars aux revenus de Pinnacle West en 2022.

• Revenu total de connexion sur le réseau: 350 millions de dollars
• Frais d'utilisation de la ligne de transmission: 225 millions de dollars
• Frais d'interconnexion de la grille: 125 millions de dollars

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.