Pinnacle West Capital Corporation (PNW): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico da provisão de energia, a Pinnacle West Capital Corporation (PNW) surge como um participante fundamental no ecossistema de eletricidade do Arizona, equilibrando estrategicamente a geração tradicional de energia com soluções de energia renovável inovadora. Essa tela abrangente de modelo de negócios revela como a PNW transforma desafios de energia complexos em propostas de valor sustentável, alavancando tecnologias de ponta, infraestrutura robusta e uma abordagem centrada no cliente que vai além da mera distribuição de eletricidade. Ao integrar perfeitamente a inovação tecnológica, a responsabilidade ambiental e as parcerias estratégicas, a PNW está redefinindo o futuro do setor de utilidade, oferecendo aos residentes e empresas do Arizona um modelo atraente de gerenciamento de energia moderno.

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: Parcerias -chave

Arizona Public Service Electric (subsidiária da utilidade primária)

Como a principal subsidiária da Pinnacle West Capital Corporation, o Arizona Public Service Electric (APS) mantém parcerias críticas com várias partes interessadas.

Tipo de parceria	Detalhes	Valor anual
Operações de utilidade	APS atende a 1,3 milhão de clientes elétricos no Arizona	Receita de US $ 5,2 bilhões (2022)
Território de serviço	Cobre 11.000 milhas quadradas no Arizona	95% da população do Arizona

Fabricantes de equipamentos para infraestrutura de geração de energia

A Pinnacle West colabora com fabricantes de equipamentos especializados para infraestrutura de geração de energia.

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

Fabricante	Tipo de equipamento	Investimento
General Electric	Turbinas a gás	Investimento de US $ 350 milhões (2022-2023)
Siemens Energy	Infraestrutura renovável	Parceria de US $ 275 milhões

Provedores de tecnologia de energia renovável

A Pinnacle West faz parceria ativamente com os provedores de tecnologia de energia renovável para expandir o portfólio de energia limpa.

• Primeiro solar
• SunPower Corporation
• Recursos Energéticos da Nextera

Provedor	Foco em tecnologia	Capacidade renovável
Primeiro solar	Fabricação de painéis fotovoltaicos	Projeto solar de 350 MW
Energia Nextera	Desenvolvimento eólico e solar	Integração renovável de 500 MW

Órgãos regulatórios locais e estaduais

A Pinnacle West mantém parcerias estratégicas com agências reguladoras para garantir a conformidade e o alinhamento estratégico.

• Comissão da Corporação do Arizona
• Departamento de Qualidade Ambiental do Arizona
• Comissão Federal de Regulamentação de Energia (FERC)

Instituições financeiras para investimentos de capital

Parcerias financeiras críticas apóiam as estratégias de infraestrutura e expansão da Pinnacle West.

Instituição financeira	Foco em parceria	Valor do investimento
JPMorgan Chase	Financiamento de infraestrutura	Linha de crédito de US $ 750 milhões
Bank of America	Investimentos de energia renovável	Emissão de títulos verdes de US $ 500 milhões

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: Atividades -chave

Geração e distribuição de energia elétrica

A Pinnacle West Capital Corporation gera e distribui eletricidade através do Arizona Public Service (APS), atendendo a aproximadamente 1,3 milhão de clientes em todo o Arizona. Capacidade total de geração em 2023: 6.298 MW.

Fonte de geração	Capacidade (MW)	Percentagem
Nuclear	3,942	62.6%
Gás natural	1,574	25%
Energia renovável	782	12.4%

Desenvolvimento de projetos de energia renovável

Comprometido com a expansão de energia renovável com Investimento de US $ 3,2 bilhões em infraestrutura de energia limpa.

• Pipeline do projeto solar: 1.500 MW até 2025
• Integração de energia eólica: 400 MW planejada
• Capacidade de armazenamento de bateria: 250 MW

Manutenção da infraestrutura da grade

Investimento anual de infraestrutura: US $ 1,1 bilhão para modernização e confiabilidade da rede.

Componente de infraestrutura	Investimento ($ m)
Atualização das linhas de transmissão	425
Modernização da subestação	315
Tecnologias de grade inteligente	360

Gerenciamento do programa de eficiência energética

Implementou programas de eficiência energética com Orçamento anual de US $ 78 milhões.

• Descontos residenciais de eficiência energética: US $ 35 milhões
• Programas comerciais de gerenciamento de energia: US $ 28 milhões
• Assistência energética de baixa renda: US $ 15 milhões

Atendimento ao cliente e soluções de energia

Operações de atendimento ao cliente com recursos dedicados e plataformas tecnológicas.

Métrica de serviço	Valor
Representantes de atendimento ao cliente	850
Usuários da plataforma digital	620,000
Volume anual de interação do cliente	4,2 milhões

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: Recursos -chave

Instalações de geração de energia

A Pinnacle West Capital Corporation opera as seguintes instalações de geração de energia:

Tipo de instalação	Capacidade (MW)	Número de instalações
Nuclear (Palo Verde)	3,942	1
Solar	2,232	Múltiplo
Combustível fóssil (gás natural)	4,236	5

Infraestrutura de transmissão e distribuição

Detalhes da infraestrutura do Serviço Público do Arizona (APS):

• Total de linhas de transmissão: 6.300 milhas
• Linhas de distribuição: 28.000 milhas
• Território de serviço: 95.000 milhas quadradas
• Subestações: 280

Engenharia qualificada e força de trabalho técnica

Categoria de funcionários	Número total
Total de funcionários	6,300
Engenheiros	1,200
Especialistas técnicos	1,800

Tecnologias avançadas de gerenciamento de energia

• Investimentos de tecnologia de grade inteligente: US $ 425 milhões
• Capacidade de armazenamento de energia: 350 MW
• Infraestrutura de carregamento de veículos elétricos: 2.500 estações de carregamento

Capital financeiro para investimentos em infraestrutura

Métrica financeira	Quantia
Total de ativos	US $ 23,4 bilhões
Gastos anuais de capital	US $ 1,6 bilhão
Dívida de longo prazo	US $ 7,2 bilhões

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: proposições de valor

Suprimento confiável de eletricidade para residentes do Arizona

O Arizona Public Service (APS), uma subsidiária da Pinnacle West, atende aproximadamente 1,3 milhão de clientes elétricos em 11 municípios do Arizona. A empresa fornece eletricidade a 95,7% da população do Arizona, cobrindo 2.900 milhas quadradas.

Métrica de serviço	Valor
Total de clientes	1,3 milhão
Cobertura da área de serviço	2.900 milhas quadradas
População servida	95.7%

Opções de energia sustentável e cada vez mais renovável

A partir de 2022, o portfólio de energia renovável da Pinnacle West inclui:

• Capacidade de geração solar: 2.200 megawatts
• Capacidade de geração de vento: 390 megawatts
• Comprometido com 65% de energia livre de carbono até 2030

Taxas de eletricidade competitivas

Taxas médias de eletricidade residencial para APs em 2023:

Categoria de taxa	Preço por kWh
Taxa residencial	$0.1257
Comparação média nacional	3,4% abaixo da média nacional

Programas avançados de eficiência energética

Investimentos e programas de eficiência energética:

• Investimento anual de eficiência energética: US $ 52,4 milhões
• Economia de energia alcançada: 328 Gigawatt-Hours em 2022
• Recursos de clientes para aparelhos com eficiência energética: até US $ 1.200

Compromisso com a sustentabilidade ambiental

Métricas de sustentabilidade ambiental:

Métrica de sustentabilidade	Valor de destino/atual
Redução de emissão de carbono	80% de redução até 2040
Geração atual sem carbono	50%
Investimento total em energia limpa	US $ 3,2 bilhões

Pinnacle West Capital Corporation (PNW) - Modelo de Negócios: Relacionamentos do Cliente

Plataformas de atendimento ao cliente digital

A Pinnacle West Capital Corporation opera o Arizona Public Service (APS) Online Atending Portal com as seguintes métricas principais:

• Registros de conta on -line: 1,1 milhão de clientes
• Downloads de aplicativos móveis: 427.000 a partir de 2023
• Taxa de pagamento da conta digital: 68% do total de clientes

Canal de serviço digital	Taxa de envolvimento do cliente
Portal da Web	72%
Aplicativo móvel	53%
Plataformas de autoatendimento	61%

Insumos de consumo de energia personalizados

APS fornece rastreamento detalhado de consumo de energia com:

• Monitoramento por uso horário de energia
• Recomendações personalizadas de eficiência energética
• Relatórios comparativos de consumo de energia da vizinhança

Programas de envolvimento da comunidade

As métricas de interação comunitária incluem:

• Investimento comunitário anual: US $ 3,2 milhões
• Programas de educação para clientes: 42 eventos anuais
• Taxa de participação do cliente: 37%

Canais de cobrança e suporte direto

Canal de suporte	Tempo médio de resposta	Taxa de satisfação do cliente
Suporte telefônico	7,5 minutos	86%
Suporte por e -mail	24 horas	79%
Bate -papo ao vivo	4,2 minutos	91%

Serviços de consulta de eficiência energética

Estatísticas do programa de eficiência:

• Auditorias de energia livre realizadas: 12.500 anualmente
• Economia total de energia: 47 milhões de kWh por ano
• Participação do cliente: 22% dos clientes residenciais

Pinnacle West Capital Corporation (PNW) - Modelo de Negócios: Canais

Portal de clientes on -line

O Portal Online da APS Energy Central atende aproximadamente 1,2 milhão de contas de clientes no Arizona. O portal processou 3,4 milhões de pagamentos de contas on -line em 2022, representando 68% do total de transações de clientes.

Recurso do portal	Estatísticas de uso
Usuários ativos mensais	782,000
Taxa de adoção de pagamento de conta on -line	62%
Volume anual de transação digital	41,6 milhões

Aplicativo móvel

O aplicativo móvel APS suporta gerenciamento de energia em tempo real para os clientes.

• Contagem de download de aplicativos: 345.000
• Usuários móveis ativos mensais: 215.000
• Transações de pagamento móvel: 1,2 milhão anualmente

Centros de atendimento ao cliente físico

A Pinnacle West opera 12 locais de atendimento ao cliente físico no Arizona.

Tipo de localização	Número de centros	Interações anuais do cliente
Centros urbanos	8	426,000
Centros rurais	4	89,000

Suporte de call center

A APS mantém a infraestrutura centralizada de suporte ao cliente.

• Volume anual de chamada: 2,6 milhões
• Tempo médio de resposta: 3,2 minutos
• Taxa de satisfação do cliente: 87%

Programas de divulgação comunitária local

Os canais de envolvimento da comunidade incluem programas de eficiência energética e iniciativas educacionais.

Programa de divulgação	Participantes anuais	Investimento
Oficinas de eficiência energética	12,500	US $ 1,3 milhão
Programas de educação escolar	45.000 estudantes	$750,000

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

Consumidores de eletricidade residencial

A partir de 2022, o Arizona Public Service (APS), uma subsidiária da Pinnacle West Capital Corporation, atende aproximadamente 1,3 milhão de clientes de eletricidade residencial no Arizona.

Categoria de cliente	Número de clientes	Conta mensal média
Clientes residenciais	1,300,000	$132.45

Clientes comerciais comerciais

A Pinnacle West atende a aproximadamente 126.000 clientes comerciais de eletricidade em todo o Arizona.

• Segmento de pequenas empresas
• Empresas comerciais de médio porte
• Grandes clientes corporativos

Tamanho comercial	Contagem de clientes	Consumo de eletricidade (MWH)
Pequenas empresas	85,000	1,200,000
Empresas médias	35,000	2,500,000
Grandes empresas	6,000	3,800,000

Usuários de energia industrial

Os clientes industriais representam um segmento significativo com aproximadamente 1.200 consumidores de eletricidade de alto volume.

Setor	Número de clientes	Consumo anual de eletricidade (MWH)
Fabricação	450	4,500,000
Mineração	250	2,800,000
Tecnologia	500	3,200,000

Entidades municipais e governamentais

A Pinnacle West atende a 250 clientes municipais e governamentais em todo o Arizona, fornecendo suporte crítico à infraestrutura.

Tipo de governo	Contagem de clientes	Gastos anuais anuais
Governos da cidade	120	$45,000,000
Instalações do condado	80	$22,000,000
Instalações estaduais	50	$35,000,000

Consumidores de eletricidade do setor agrícola

Os clientes agrícolas representam aproximadamente 2.500 consumidores de eletricidade nas regiões agrícolas do Arizona.

Subsetor Agrícola	Contagem de clientes	Consumo anual de eletricidade (MWH)
Agricultura de culturas	1,800	1,500,000
Gado	450	800,000
Sistemas de irrigação	250	1,200,000

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: estrutura de custos

Manutenção de equipamentos de geração de energia

Custos anuais de manutenção para equipamentos de geração de energia: US $ 187,4 milhões em 2022

Tipo de equipamento	Despesa de manutenção
Usina nuclear	US $ 92,6 milhões
Usinas de carvão	US $ 45,3 milhões
Instalações de gás natural	US $ 49,5 milhões

Custos de aquisição de combustível

Despesas totais de aquisição de combustível: US $ 312,8 milhões em 2022

• Gás natural: US $ 178,6 milhões
• Carvão: US $ 94,2 milhões
• Combustível nuclear: US $ 40 milhões

Compensação dos funcionários

Compensação total dos funcionários: US $ 342,5 milhões em 2022

Categoria de funcionários	Compensação
Compensação executiva	US $ 18,7 milhões
Equipe de operações	US $ 213,4 milhões
Equipe administrativo	US $ 110,4 milhões

Desenvolvimento de infraestrutura e atualizações

Investimento total de infraestrutura: US $ 456,2 milhões em 2022

• Modernização da grade: US $ 187,6 milhões
• Infraestrutura de energia renovável: US $ 134,5 milhões
• Atualizações da linha de transmissão: US $ 134,1 milhões

Despesas de conformidade regulatória

Custos totais de conformidade regulatória: US $ 92,3 milhões em 2022

Categoria de conformidade	Despesa
Regulamentos ambientais	US $ 42,6 milhões
Conformidade de segurança	US $ 31,7 milhões
Relatórios e documentação	US $ 18 milhões

Pinnacle West Capital Corporation (PNW) - Modelo de negócios: fluxos de receita

Vendas de eletricidade residencial

Em 2022, o Arizona Public Service (APS), uma subsidiária da Pinnacle West, reportou receita de vendas de eletricidade residencial de US $ 2,4 bilhões. A taxa média de eletricidade residencial foi de 13,42 centavos por quilowatt-hora.

Segmento de clientes residenciais	Receita anual	Número de clientes
Vendas de eletricidade residencial	US $ 2,4 bilhões	1,2 milhão

Cobrança comercial de eletricidade

As vendas comerciais de eletricidade geraram US $ 1,8 bilhão em receita para a Pinnacle West em 2022, representando aproximadamente 35% da receita total de vendas de eletricidade.

Segmento de clientes comerciais	Receita anual	Consumo médio
Vendas comerciais de eletricidade	US $ 1,8 bilhão	4.500 kWh por mês

Créditos energéticos renováveis

A Pinnacle West gerou US $ 45 milhões com as vendas de crédito de energia renovável em 2022, com créditos solares e de vento compreendendo a maioria deste fluxo de receita.

• Receita total de créditos de energia renovável: US $ 45 milhões
• Vendas de crédito solar: US $ 28 milhões
• Vendas de crédito de vento: US $ 17 milhões

Taxas do programa de eficiência energética

Os programas de eficiência energética geraram US $ 62 milhões em receita para a Pinnacle West em 2022, com taxas cobradas de clientes residenciais e comerciais.

Tipo de programa	Receita	Participação do cliente
Eficiência energética residencial	US $ 38 milhões	65.000 participantes
Eficiência energética comercial	US $ 24 milhões	2.500 participantes de negócios

Conexão de grade e cargas de transmissão

As taxas de conexão e transmissão de grade contribuíram com US $ 350 milhões para a receita da Pinnacle West em 2022.

• Receita total de conexão da grade: US $ 350 milhões
• Taxas de uso da linha de transmissão: US $ 225 milhões
• Taxas de interconexão de grade: US $ 125 milhões

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.