PINNACLE WEST CAPITAL Business Summary

Pinnacle West Capital Corporation (PNW) is a Phoenix-based energy holding company that generates the vast majority of its revenue through regulated retail and wholesale electric services provided by its primary subsidiary, Arizona Public Service (APS). The company’s business model is centered on the generation, transmission, and distribution of electricity to approximately 1.4 million customers across a 35,000-square-mile service territory in central Arizona. PNW’s primary business segments are categorized under its utility operations, which leverage a diverse energy mix of nuclear, natural gas, coal, and renewable sources, notably featuring a 29.1% ownership stake in the Palo Verde Generating Station, the largest power producer in the United States. Direct competitors include regional and national utilities such as Evergy (EVRG), Alliant Energy (LNT), Ameren (AEE), and Tucson Electric Power (TEP). As the largest electric utility in Arizona, PNW maintains a dominant market position driven by the state's rapid population growth and industrial expansion, particularly in the data center and manufacturing sectors. The company is currently led by Theodore "Ted" N. Geisler, who assumed the roles of Chairman, President, and CEO on April 1, 2025, following a 23-year career within the organization where he previously served as President of APS, CFO, and CIO. The executive leadership team includes Andrew D. Cooper as Senior Vice President and CFO, and Jacob Tetlow as Executive Vice President and COO of APS. Pinnacle West was originally incorporated in 1985 as AZP Group Inc. to serve as a holding company for APS, which traces its operational roots back to the 1884 founding of the Phoenix Light & Fuel Co. The company’s board is overseen by Lead Director Paula J. Sims and includes notable members such as Ronald Butler Jr. (former EY Managing Partner) and Susan T. Flanagan (Operating Partner at Apollo Global Management). PNW is heavily backed by institutional investors, with major stakes held by Capital Research Global Investors, The Vanguard Group, and BlackRock.