Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Q3 2026 Earnings Presentation
31 slides from Pinnacle West Capital's earnings presentation, Nov 3, 2026
Slide 1: Powering Arizona's Future Third-Quarter Financial Results
Powering Arizona’s Future Third-Quarter Financial Results November 3, 2026
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as “estimate,” “predict,” “may,” “believe,” “plan,” “expect
Slide 3: Third-Quarter results: Q3 2026 vs Q3 2025 EPS
$0.30 $0.03 ($0.11) $0.01 ($0.06) $0.01 ($0.10) $0.02 $3.39 $3.49 Q3 2026 vs Q3 2025 Operating Revenue less Fuel and Purchased Power Sales / Usage $ 0.35 Weather $ 0.09 LFCR / Other $ 0.02 Transmission $ (0.04) RES / DSM $ (0.12)Q3 2025 Q3 2026 1 Includes costs and offsetting operating revenues asso
Slide 4: Key Factors and Assumptions
Key Factors and Assumptions (as of November 3, 2026) 2026 Adjusted gross margin (operating revenues, net of fuel and purchased power expenses, x/RES,DSM)1 $3.45 – $3.51 billion • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 8.0%-10.0% • Includes 5.0%-7.
Slide 5: 2026 EPS guidance key drivers
2026 EPS guidance of $5.05-$5.25 key drivers1 Weather-normalized retail electricity sales growth of 8%-10% (includes 5%-7% from large C&I) Depreciation, amortization and property taxes due to higher plant in service Retail customer growth of 1.5%- 2.5% Financing costs (debt & equity) Trans
Slide 6: Capital plan to support reliability and continued growth
$335 $460 $420 $380 $710 $765 $795 $750 $465 $550 $695 $860 $890 $825 $740 $710 2025A 2026E 2027E 2028E APS Total 2025-2028 $10.35B1 Generation Transmission Distribution Other $2.40B $2.60B $2.65B $2.70B Source: 2026-2028 as disclosed in the Third Quarter 2026 Form 10-Q 1 The estimated capital expen
Slide 7: Current Approved Rate Base and Test Year Detail
Current Approved Rate Base and Test Year Detail End-of-Year Rate Base and Growth Guidance1 ACC FERC Rate Effective Date 03/08/2024 06/01/2026 Test Year Ended 6/30/20221 12/31/2025 Equity Layer 51.93% 51.99% Allowed ROE 9.55% 10.75% Rate Base $10.36B2 $2.81B $12.23 $13.33 $15.7 $2.52 $2.82 $4.0 2024
Slide 8: Operations & Maintenance Guidance
8 Operations & Maintenance Guidance • Total O&M remains flat with rapidly growing customer base • Lean culture and declining O&M per MWh goal • Reduction of year-over-year O&M including planned outages We are focused on cost control and customer affordability $955 $978 $1,035- $1,045 $141 $143 $75-$
Slide 9: 2026 Financing Plan Execution
Approx. $3.8B Cash from Operations1 Total Capital Investment $2.6B-$2.9B APS Debt2 $300M-$350M PNW Debt2 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. 3 PNW equity is net of $485M already priced through January 2026. 2026 Financing Plan Exe
Slide 10: Corporate Ratings
Corporate Ratings1 Senior Unsecured Ratings Short-Term Ratings Outlook APS Moody’s Baa1 Baa1 P-2 Stable S&P BBB+ BBB+ A-2 Stable Fitch BBB+ A- F2 Stable Pinnacle West Moody’s Baa2 Baa2 P-2 Stable S&P BBB+ BBB A-2 Stable Fitch BBB BBB F3 Stable 10 1 Ratings as of October 30, 2026. Outlooks were reaff
Slide 11: Debt maturity profile
$0 $200 $400 $600 $800 $1,000 $1,200 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 2052 2054 2056 APS Fixed APS Floating PNW Fixed($millions) As of September 30, 2026 11 Debt maturity profile shows well managed and stable financing plan
Slide 12: Pinnacle West Capital Corporation
PINNACLE WEST CAPITAL CORPORATION
Slide 13: 2025 APS Rate Case – Updated Positions
13 2025 APS Rate Case – Updated Positions Overview of rate request ($ in millions) key components Rate Base Growth $206 12 months Post-test Year Plant $162 Fair Value Increment $89 WACC (7.63%) $129 Other (Base fuel, depreciation study, etc.) $107 Total Revenue Requirement $692 Adjustor Transfers $(
Slide 14: 2025 APS Rate Case – Updated Positions
14 2025 APS Rate Case – Updated Positions Overview of rate request ($ in millions) key components Test Year Ended December 31, 2024 Total Rate Base - Adjusted $15.8B ACC Rate Base - Adjusted $13.1B Embedded Long-Term Cost of Debt 4.26% Allowed Return on Equity 10.70% ROE Band for Formula Rate +/- 40
Slide 15: Formula Rate Adjustment Mechanism proposal
15 2025 APS Rate Case – Updated Positions Formula Rate Adjustment Mechanism (FRAM) proposal • Historic test year, with authorized ROE and capital structure approved in most recent rate case • Inclusion of 6 months post-test year plant • Removal of System Reliability Benefit and the Tax Expense Adjus
Slide 16: 2025 APS Rate Case - Testimony Summaries
16 2025 APS Rate Case - Testimony Summaries 1. Eliminate if FRAM approved 2. If the FRAM is adopted, the Commission should consider an ROE at the lower end of Staff's recommended range (9.55% - 9.80%) 3. Eliminate if FRAM approved and maintains 120-day schedule 4. Staff is currently evaluating the p
Slide 17: Arizona economy continues to be robust and attractive
2.4% 2.2% 2.1% 2.3% 2.5% 1.5%-2.5% 0% 1% 2% 3% 2021 2022 2023 2024 2025 2026E Residential Customer Growth1 APS Residential Growth Natn'l Avg.-Residential 17 • Phoenix housing is affordable compared to major cities in the region • Maricopa County ranked top county for economic development in 2025 by
Slide 18: 2026 IRP – Customers' annual electricity needs projected to more than double
18 2026 IRP – Customers’ annual electricity needs are projected to more than double by 2041 • Strong long-term growth: Retail energy demand is projected to increase ~42,000 GWh by 2041, more than doubling current customer needs • Customer loads are diversified across all segments, de-risking future
Slide 19: Significant investment opportunity to serve increased demand
19 Significant investment opportunity to serve increased demand Which is requiring us to invest There is significant additional load we need to be ready to serve New gas generation: • Announced ~720 MW at Saguaro (2030) and ~1280MW at Desert Sun (2032) • Announced incremental investment of up to $44
Slide 20: Committed load has increased to 5.8 GW
20 Our committed load has increased to 5.8 GW and is heavily de- risked 9.2GW 2026 System Peak 9.2GW 2026 System Peak Manufacturing Data Centers Residential Other >90% in different phases of construction GW Committed Load Growth by Segment ~0.9 GW Currently Served ~4.9GW Not Yet Served 0 1 2 3 4 5 6
Slide 21: Continued trend of robust sales growth
5.9% 5.5% 5.9% 5.5% 4.0%* 5.2% 5.4% 6.8% 7.4%* 9.6% 9.5% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Weather-Normalized Retail Sales Growth 21 Strong track record of consistently robust sales growth * Excludes $11M reducti
Slide 22: Transmission expansion could drive significant capital investment
22 Transmission expansion could drive significant capital investment $6 billion + of investmentCumulative Transmission CapEx 2026 2028 2035 Source: APS 2026-2035 Ten Year Transmission System Plan • Investments in Extra High Voltage (EHV) transmission to support reliability, resiliency, and integrati
Slide 23: Arizona's commercial and industrial growth is diverse
Source: Arizona Commerce Authority 23 Arizona’s commercial and industrial growth is diverse
Slide 24: Renewable Energy & Demand Side Management expenses
$18 $16 $19 $19 $17 $9 $13 $15 $18 $24 $14 $6 $7 $9 $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 $50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Renewable Energy Demand Side Management 2025 $143 Million 2026 $62 Million 1 Renewable Energy and Demand Side Management expenses are substantially offset by adjustment mechanisms. N
Slide 25: 2026 gross margin effects of weather
$17 $28 $28 Q1 Q2 Q3 Q4 Variances vs. Normal All periods recalculated to current 10-year rolling average (2015 – 2024). Numbers may not foot due to rounding. ($ in millions pretax) 2026 Total Weather Impact: $73 Million 25 2026 gross margin effects of weather
Slide 26: Generation Planned Outages
Generation Planned Outages 26 2026 Planned Outage Schedule Q2 Plant Unit Duration in Days Palo Verde1 2 45 Q4 Plant Unit Estimated Duration in Days Palo Verde 1 46 1 Outage began at end of Q1
Slide 27: Non-GAAP Measure Reconciliation
2025 Actual2 2026 Guidance2 Operating revenues1 $5.34 billion $5.76 - $5.86 billion Fuel and purchased power expenses1 $1.94 billion $2.23 - $2.27 billion Gross Margin $3.40 billion $3.53 - $3.59 billion Adjustments: Renewable energy and demand side management programs $153 million $80 - $90 million
Slide 28: Regulatory case and docket schedule
Case/Docket # Q1 Q2 Q3 Q4 2025 Rate Case E-01345A-25-0105: Staff and Intervenor Direct Testimony filed March 2 and March 18 • APS Rebuttal Testimony filed April 3 • Staff and Intervenor Surrebuttal Testimony filed May 1 • APS Rejoinder Testimony filed May 11 • Rate Case hearing began May 18 • Initia
Slide 29: Wildfire Mitigation
29 Wildfire Mitigation Vegetation Management Asset Inspection Monitoring and Awareness Operational Mitigations • Comprehensive right- of-way clearance on maintained cycles • Defensible space around poles (DSAP) • Hazard tree program • Enhanced line patrols • Technology deployments • Drone use • Infr
Slide 30: Consolidated Statistics
30 Consolidated Statistics * Includes reduction of accrued unbilled revenues in January 2025. Numbers may not foot due to rounding. 3 Months Ended September 30, 9 Months Ended September 30, 2026 2025 Incr (Decr) 2026 2025 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residenti
Slide 31: Consolidated Statistics
31 Consolidated Statistics Numbers may not foot due to rounding. Due to hot weather starting in March, we are reporting CDDs through March for 2025, 2026, and the Normal *Includes net battery activity (charges less discharges). 3 Months Ended September 30, 9 Months Ended September 30, 2026 2025 Incr
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