UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

| Date of report (Date of earliest event reported): | August 3, 2022 | | --- | --- || Commission File<br>Number | Exact Name of Each Registrant as specified in its<br>charter; State of Incorporation; Address; and<br>Telephone Number | | | IRS Employer<br>Identification No. | | --- | --- | --- | --- | --- | | 1-8962 | PINNACLE WEST CAPITAL CORPORATION | | | 86-0512431 | | | (an Arizona corporation) | | | | | | 400 North Fifth Street, P.O. Box 53999 | | | | | | Phoenix | Arizona | 85072-3999 | | | | (602) | 250-1000 | | | | 1-4473 | ARIZONA PUBLIC SERVICE COMPANY | | | 86-0011170 | | | (an Arizona corporation) | | | | | | 400 North Fifth Street, P.O. Box 53999 | | | | | | Phoenix | Arizona | 85072-3999 | | | | (602) | 250-1000 | | |

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	PNW	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

This combined Form 8-K is separately filed or furnished by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing or furnishing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing or furnishing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

Item 2.02. Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On August 3, 2022, Pinnacle West Capital Corporation (“Pinnacle West”) issued a press release regarding its financial results for the fiscal quarter ended June 30, 2022. A copy of the press release is attached hereto as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

Pinnacle West is providing a copy of the slide presentation made in connection with the quarterly earnings conference call on August 3, 2022. This information contains Pinnacle West operating results for the fiscal quarter ended June 30, 2022, earnings outlook for 2022 and a quarterly consolidated statistical summary. The slide presentation is attached hereto as Exhibit 99.2 and is concurrently being posted to Pinnacle West’s website at www.pinnaclewest.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.	Registrant(s)	Description
99.1	Pinnacle West<br>Arizona Public Service Company	Earnings News Release issued on August 3, 2022
99.2	Pinnacle West<br>Arizona Public Service Company	Pinnacle West Capital Corporation Second Quarter 2022 Results slide presentation accompanying August 3, 2022 conference call
104.0	Pinnacle West<br>Arizona Public Service Company	104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PINNACLE WEST CAPITAL CORPORATION
	(Registrant)
Dated: August 3, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY
	(Registrant)
Dated: August 3, 2022	By: /s/ Andrew Cooper
	Andrew Cooper
	Senior Vice President and
	Chief Financial Officer

Document

FOR IMMEDIATE RELEASE		August 3, 2022
Media Contact:<br>Analyst Contact:	Alan Bunnell (602) 250-3376<br>Amanda Ho (602) 250-3334
Website:	pinnaclewest.com

PINNACLE WEST REPORTS LOWER 2022 SECOND-QUARTER RESULTS

•Quarterly results consistent with expectations; full-year 2022 earnings guidance maintained

•Customer and sales growth continue to bolster the company’s underlying fundamentals

•EPA recognizes APS as 2022 ENERGY STAR® Partner of the Year

PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $164.3 million, or $1.45 per diluted share of common stock, for the quarter ended June 30, 2022. This result compares with earnings of $215.7 million, or $1.91 per share, in the same 2021 period.

As with the 2022 first quarter, the company’s second-quarter results reflect the unfavorable outcome of the company’s recent general rate case, which was implemented on Dec. 1, 2021. As a result of that rate decision, the Company is no longer deferring costs related to the Four Corners selective catalytic reduction (SCR) and Ocotillo modernization projects to a regulatory asset. These costs are now reflected in the income statement and result in a reduction in net income. Other factors negatively affecting the 2022 second-quarter results were higher depreciation and amortization expense due to increased plant assets and updated depreciation rates; lower revenue driven by the inability to continue using alternative revenue accounting treatment for the lost fixed cost recovery (LFCR) mechanism; and higher operations and maintenance expense. These negative factors were partially offset by customer growth and lower income taxes.

“Second-quarter results were in line with our expectations, and we remain well-positioned to meet our financial commitments for the full year,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner, citing strong year-over-year second-quarter sales growth of 3.2%, robust customer growth of 2%, superior reliability and operating performance by employees, and continued cost management.

EPA Recognizes Company’s Energy Efficiency and Demand Response Programs

For the second consecutive year, the Environmental Protection Agency (EPA) recognized Arizona Public Service with the ENERGY STAR Partner of the Year Award for excellence in customer energy efficiency programs. These offerings include the APS Marketplace, a one-stop online shop that offers customers smart energy products at competitive prices, and the company’s Cool Rewards program. In the last year alone, these and other APS energy efficiency programs have helped the company manage energy demand and reduce lifetime carbon dioxide emissions by 2.3 billion pounds – the equivalent of removing 224,791 gasoline-powered passenger vehicles from Arizona roadways.

“In its fourth year of operation, our Cool Rewards demand response program essentially operates as a virtual power plant where our customers provide nearly 100 megawatts of flexible, clean capacity,” said Guldner. “The program connects nearly 66,000 APS customers with smart thermostat technology that helps them save money, while also playing an integral role in conserving energy when the demand on the electric grid is at its highest. This partnership helps us ensure reliable, uninterrupted service to our customers on the hottest Arizona days, while also assisting us on our journey to 100% clean and carbon-free electricity by 2050.”

APS Helping Customers Manage Their Energy Use, Bills, Heat

In addition to its award-winning energy efficiency programs, APS provides a variety of resources and money-saving tips to help customers stay comfortable and manage their electric bills through summer’s scorching temperatures.

The APS mobile app and aps.com let customers check their energy use, access energy-saving tips customized to their service plan, and monitor and report outages.

Additionally, in the face of extreme temperatures and prolonged heat, APS has expanded its heat-relief initiatives, including partnering with local community organizations to aid the state’s most vulnerable populations. This includes support for The Salvation Army’s network of 18 cooling and hydration stations across Arizona; a collaboration with the Foundation for Senior Living offering emergency repair or replacement of AC systems during the scorching summer months; and an emergency shelter and eviction-protection program in partnership with St. Vincent de Paul.

The company also offers a variety of assistance programs for those who are struggling with their bill. These offerings include the Energy Support programs, which provide limited-income customers with a monthly discount on their bill; Crisis Bill Assistance, providing up to $800 annually to qualified limited-income customers who experience unexpected financial hardship; and Project SHARE, a Salvation Army-administered service providing up to $300 annually in emergency energy bill assistance.

APS customers needing aid are encouraged to visit aps.com/support for a full list of assistance programs, including up-to-date details on year-round financial resources and support.

Financial Outlook

For 2022, the company continues to expect its consolidated earnings guidance will be in the range of $3.90 to $4.10 per diluted share on a weather-normalized basis. Key factors and assumptions underlying the 2022 outlook can be found in the second-quarter 2022 earnings presentation slides at pinnaclewest.com/investors.

Conference Call and Webcast

Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the company’s 2022 second-quarter results, as well as recent developments, at noon ET (9 a.m. Arizona time) today, August 3. Join the live webcast at www.pinnaclewest.com/presentations for audio of the call and slides, or dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 507998. A replay of the webcast can be accessed for 30 days at pinnaclewest.com/presentations. A replay of the call also will be available until 11:59 p.m. ET, Wednesday, Aug. 10, 2022, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 45856.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of approximately $23 billion, about 6,300 megawatts of generating capacity and nearly 5,900 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides retail electricity service to more than 1.3 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.

Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. Several factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:

•the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, inflation, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows or other unpredictable events;

•our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;

•variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customers and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements;

•the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and feverish temperature variations in the area where APS conducts its business;

•power plant and transmission system performance and outages;

•competition in retail and wholesale power markets;

•regulatory and judicial decisions, developments and proceedings;

•new legislation, ballot initiatives and regulation, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets;

•fuel and water supply availability;

•our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment;

•our ability to meet renewable energy and energy efficiency mandates and recover related costs;

•the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition and results of operations;

•risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty;

•current and future economic conditions in Arizona, including in real estate markets;

•the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, war, acts of war, international sanctions, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events, or similar occurrences;

•the development of new technologies which may affect electric sales or delivery;

•the cost of debt and equity capital and the ability to access capital markets when required;

•general economic conditions, including inflation rates, monetary fluctuations, and supply chain constraints;

•environmental, economic and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions;

•volatile fuel and purchased power costs;

•the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements;

•the liquidity of wholesale power markets and the use of derivative contracts in our business;

•potential shortfalls in insurance coverage;

•new accounting requirements or new interpretations of existing requirements;

•generation, transmission and distribution facility and system conditions and operating costs;

•the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region;

•the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and

•restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders.

These and other factors are discussed in Risk Factors described in Part 1, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2021, and in Part II, Item 1A in of the Pinnacle West/APS Quarterly Reports on Forms 10-Q for the quarters ended March 31, 2022, and June 30, 2022, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.

#

PINNACLE WEST CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share amounts)

	THREE MONTHS ENDED		SIX MONTHS ENDED
	JUNE 30,		JUNE 30,
	2022	2021	2022	2021
Operating Revenues	$1,061,669	$1,000,249	$1,845,200	$1,696,724
Operating Expenses
Fuel and purchased power	352,187	269,835	617,456	468,062
Operations and maintenance	245,387	229,690	463,729	459,745
Depreciation and amortization	186,497	158,750	373,102	316,570
Taxes other than income taxes	54,118	59,495	112,116	118,978
Other expenses	385	4,093	1,210	7,449
Total	838,574	721,863	1,567,613	1,370,804
Operating Income	223,095	278,386	277,587	325,920
Other Income (Deductions)
Allowance for equity funds used during construction	12,086	9,990	21,833	19,197
Pension and other postretirement non-service credits - net	25,257	28,175	49,066	55,966
Other income	1,682	12,207	3,386	24,636
Other expense	(4,584)	(5,184)	(8,006)	(9,037)
Total	34,441	45,188	66,279	90,762
Interest Expense
Interest charges	68,103	62,777	133,492	124,715
Allowance for borrowed funds used during construction	(5,873)	(5,199)	(10,355)	(10,193)
Total	62,230	57,578	123,137	114,522
Income Before Income Taxes	195,306	265,996	220,729	302,160
Income Taxes	26,688	46,560	30,849	42,210
Net Income	168,618	219,436	189,880	259,950
Less: Net income attributable to noncontrolling interests	4,306	3,739	8,612	8,612
Net Income Attributable To Common Shareholders	$164,312	$215,697	$181,268	$251,338
Weighted-Average Common Shares Outstanding - Basic	113,172	112,882	113,137	112,855
Weighted-Average Common Shares Outstanding - Diluted	113,369	113,223	113,332	113,158
Earnings Per Weighted-Average Common Share Outstanding
Net income attributable to common shareholders - basic	$1.45	$1.91	$1.60	$2.23
Net income attributable to common shareholders - diluted	$1.45	$1.91	$1.60	$2.22

a2q_2022xearningsxdeckxf

POWERING GROWTH DELIVERING VALUE Second Quarter 2022 Results August 3, 2022 1

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,” “require,” “intend,” “assume,” “project,” "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, inflation, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows, or other unpredictable events; our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investments; our ability to meet renewable energy and energy efficiency mandates and recover related costs; the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; current and future economic conditions in Arizona, including in real estate markets; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, war, acts of war, international sanctions, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events, or similar occurrences; the development of new technologies which may affect electric sales or delivery; the cost of debt and equity capital and the ability to access capital markets when required; general economic conditions, including inflation rates, monetary fluctuations and supply chain constraints; environmental, economic and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facility and system conditions and operating costs; the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of our counterparties, power plant participants and power plant land-owners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and ACC orders. These and other factors are discussed in Risk Factors described in Part I, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2021, Part II, Item 1A of the Pinnacle West/APS Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, and Part II, Item 1A of the Pinnacle West/APS Quarterly Report on Form 10-Q for the quarter ended June 30, 2022, which you should review carefully before placing any reliance on our financial statements, disclosures or earnings outlook. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. In this presentation, references to net income and earnings per share (EPS) refer to amounts attributable to common shareholders. Second Quarter 2022

2nd Quarter results negatively impacted by rate case outcome 3 2nd Quarter 2022 vs. 2nd Quarter 2021 2Q 2021 2Q 2022 $1.91 $1.45 Operating Revenue less Fuel and Purchased Power1 $(0.14) O&M1 & 2 $(0.10) D&A2 $(0.18) Operating Revenue less Fuel and Purchased Power Federal Tax Reform3 Sales/Usage Weather Other Transmission LFCR GRC Base Rate Impact $ $ $ $ $ $ $ 0.25 0.03 (0.02) (0.02) (0.03) (0.11) (0.24) Pension & OPEB Non- service Credits, net $(0.02) All other, net2,4 $(0.06) 1 Includes costs and offsetting operating revenues associated with renewable energy and demand side management programs, see slide 20 for more information. 2 Includes the impacts from the absence of the Four Corners Selective Catalytic Reduction (SCR) equipment and Ocotillo Modernization Project (OMP) deferrals, and the elimination of State Equalization Tax Rate (SETR). 3 TEAM adjuster was transferred into Base Rates upon the conclusion of APS’s most recent rate case. 4 The Q2 2022 effective tax rate is impacted by a change in the timing of recognition for excess deferred taxes related to the 2017 Tax Cuts and Jobs Act. This timing difference is expected to resolve by year end. Second Quarter 2022 Other Taxes2 $0.04

Key drivers for EPS guidance1 1 • Retail customer growth 1.5%-2.5% • Weather-normalized retail electricity sales growth of 1.5%-2.5% • Transmission revenues • Operations and maintenance • Depreciation and amortization Second Quarter 20224 2022 key drivers • 2022 EPS guidance $3.90-$4.10 • Long-term EPS growth target of 5-7%2 • Retail customer growth 1.5%-2.5%3 • Weather-normalized retail electricity sales growth of 3.5-4.5%3 1 As of August 3, 2022. Long-term guidance and key drivers • Property Tax • Interest expense • AFUDC • Pension and OPEB 2 Long-term EPS growth rate based on the Company’s current 5-year compound annual growth rate projections from 2022-2026 3 Forecasted guidance range from 2022-2024

$170 $175 $185 $190 $595 $510 $530 $500 $263 $250 $210 $210 $260 $340 $330 $560 $214 $250 $270 $190 2021 2022E 2023E 2024E Other Generation Clean Generation Transmission Distribution Other Total 2022-2024 $4.7B $1.50B $1.53B $1.53B $1.65B 5 Managed capital plan to support customer growth, reliability, and clean transition 2022–2024 as disclosed in the Second Quarter 2022 Form 10-Q. Second Quarter 2022

Total Approved Rate BaseAPS Rate Base Growth Guidance Year-End Steady rate base growth Second Quarter 20226 ACC FERC Rate Effective Date 12/01/2021 6/1/2022 Test Year Ended 06/30/20191 12/31/2021 Rate Base $8.6B $1.9B Equity Layer 54.7% 51.3% Allowed ROE 8.7% 10.75% 1 Adjusted to include post test-year plant in service through 06/30/2020 Rate base $ in billions, rounded $9.1 $11.2 $1.8 $2.4 2020 2021 2022 2023 2024 Projected 5-6% Annual FERC ACC $10.9 $13.6

Our goal is flat total O&M and declining O&M per MWh 7 2021 2022 2023 2024 $29/MWh O&M per MWh Total O&M1 2021: $865M 2022: $820M-$840M 1 Total O&M amounts exclude RES/DSM, and include planned outage amounts of $54M in 2021 and $40M-$50M in 2022. Second Quarter 2022

Forecasted sources of capital to fund investments through 2024 No plans to issue equity before end of next rate case 8 Approx. $3 billion Approx. $1 billion $4.7 billion APS Debt2 PNW Debt2 Cash from Operations1 $200-$300 million $400-$500 million 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. Second Quarter 2022 Total Capital Investment PNW Equity/ Alternatives

Strong balance sheet with attractive long-term debt maturity profile1 9 $M PNW Long-Term DebtAPS Long-Term Debt $0 $200 $400 $600 $800 $1,000 $1,200 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 As of June 30, 2022 Second Quarter 2022 1 Does not include debt at Bright Canyon Energy.

Pension & Other Post Retirement Benefits (“OPEB”) 10 Second Quarter 2022 97% 104% 107% YE 2019 YE 2020 YE 2021 Pension Funded Status1 • Liability driven investment strategy helps to minimize the impact of market volatility on funded status • Pension portfolio has an 80% target allocation to fixed income assets • Hedge 100% of interest rate volatility using a combination of fixed income portfolio assets and U.S. Treasury Futures contracts ($ in millions) 1 Excludes supplemental excess benefit retirement plan calculated on a PBO basis. . Benefit Expense Notes • Using the corridor accounting approach, gains and losses outside of the established corridor are amortized to benefit expense over the average service life • Gains and losses within the corridor do not impact benefit expense • Application of the corridor approach is a GAAP prescribed accounting method that is commonly utilized throughout the utility industry • Consistent with liability driven investing, at a higher funded status more historically-volatile assets are removed from the portfolio and replaced with fixed income securities, which is expected to reduce benefit cost volatility • Once fixed income assets in the portfolio are valued at year-end and any gains/losses are recognized, the future year expected return on fixed income assets changes with the then-prevailing level of fixed income yields Contributions 2021A 2022E 2023E 2024E Pension $100 $0 $0 $0 OPEB $0 $0 $0 $0

We continue to make progress towards key deliverables Second Quarter 202211 ➢ File appeal of last rate case ✓ Filed notice of appeal on December 17 ✓ Filed opening brief on April 27 ✓ Filed reply brief on July 27 ➢ Make progress on financing plan ✓ Deferring equity issuance until after next rate case ➢ File new rate case to recover grid investments and reduce regulatory lag ✓ Filed Notice of Intent in June ➢ Work with stakeholders on common issues ✓ Received approval of Customer Education and Outreach Plan ➢ Flat total O&M and declining O&M per MWh ➢ Continued progress towards Clean Energy Commitment ➢ Continued support in attracting high tech growth and economic development

APPENDIX

2022 EPS guidance Second Quarter 202213 Key Factors and Assumptions as of August 3, 2022 2022 Adjusted gross margin (operating revenues, net of fuel and purchased power expenses, x/RES,DSM,CCT) $2.52 – $2.55 billion • Retail customer growth about 1.5-2.5% • Weather-normalized retail electricity sales volume 1.5-2.5% higher compared to prior year o Includes 0.5-1.5% contribution to sales growth of new large manufacturing facilities and several large data centers • Assumes normal weather for full-year forecast Adjusted operating and maintenance (O&M x/RES,DSM,CCT) $820 – $840 million Other operating expenses (depreciation and amortization, and taxes other than income taxes) $987 – $998 million Other income (pension and other post-retirement non-service credits, other income and other expense) $62 – $66 million Interest expense, net of allowance for borrowed and equity funds used during construction (Total AFUDC ~$64 million) $214 – $232 million Net income attributable to noncontrolling interests $17 million Effective tax rate 13.5% Average diluted common shares outstanding 113.5 million EPS Guidance $3.90 – $4.10

Arizona remains among the fastest growing states in the U.S. 14 Annual Employment Growth Last Three Years1 Steady Housing Growth2 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Single Family & Multifamily Housing Permits Maricopa County 8,425 43,378 2 Maricopa County population 4.5M, 62% of state population1 2019-2021 National Arizona (1)% 1% 18% CAGR Second Quarter 2022

Best-in-class service territory supports high tech growth and economic development 15 Our Approach: Focus on Four Main Areas Supports Influx of Manufacturing and Data Centers – Examples • Business attraction and expansion • Community development • Entrepreneurial support • Infrastructure support • Taiwan Semiconductor Began building $12B factory • Chang Chun Petrochemical Building 250k sq ft facility • Williams-Sonoma Leased 1.2M sq ft facility • Nestle USA Building 625k sq ft facility • KORE Power Building 1M sq facility • Kohler Co. Building 1M sq ft facility Data centers are projected to create up to 640 MW of capacity needs by 2035 Second Quarter 2022

A clear plan for clean energy transition 16 Progress Towards Meeting Clean Energy Commitment1 Pathway 2005 2019 2030 2050 Contracted for nearly 1,600 MW of clean energy and storage to be in service for APS customers by end of 2024 Issued All-Source RFP which seeks 1,000 – 1,500 MWs of resources, including up to 600 – 800 MWs of renewable resources to be in service from 2025 – 2027 Charted course for healthy mix of APS-owned and third party- owned assets, to be continued through future planned RFPs 24% 50% 65% 100% 1 Since January 2020 Second Quarter 2022

Clean Energy Commitment – ~1,600MW in development since 2020 Second Quarter 202217 Robust, Diverse Procurement Activity Energy Storage • 201 MW APS-owned resources to retrofit entire fleet of AZ Sun facilities • 300 MW under two long-term PPAs • All resources to be in service between 2022 and 2024 Solar • 150 MW owned by APS and sited near Redhawk generating facility • 160 MW under two long-term PPAs • All resources to be in service in 2023 Solar + Storage • 275 MW under two long-term innovative tolling PPAs • Resources to be in service in 2023 and 2024 Wind • 438 MW under two long-term PPAs • Resources to be in service by 2023 Demand Response • 75 MW under 5-year load management agreement; service began in 2021 • APS can call up to 18 load reduction events between June and September annually

2022 Planned Outage schedule Second Quarter 202218 Coal, Nuclear and Large Gas Planned Outages Q1 Q2 Q4 Plant Unit Duration in Days Plant Unit Duration in Days Plant Unit Estimated Duration in Days N/A N/A N/A Palo Verde 1 35 Palo Verde 3 30

$1 $26 Q1 Q2 Q3 Q4 Gross margin effects of weather Second Quarter 202219 Variances vs. Normal$ in millions pretax 2022 $26 Million All periods recalculated to current 10-year rolling average (2011 – 2020). Numbers may not foot due to rounding.

Renewable Energy & Demand Side Management expenses1 Second Quarter 202220 $7 $6 $10 $13 $10 $4 $11 $12 $18 $13 $13 $16 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Demand Side Management Renewable Energy 2021 $89 Million 1 Renewable energy and demand side management expenses are offset by adjustment mechanisms. 2022 $43 Million Numbers may not foot due to rounding.

Residential PV applications1 Second Quarter 202221 1Monthly data equals applications received minus cancelled applications. As of June 30, 2022 approximately 145,122 residential grid-tied solar photovoltaic (PV) systems have been installed in APS’s service territory, totaling approximately 1,239 MWdc of installed capacity. Excludes APS Solar Partner Program residential PV systems. Note: www.arizonagoessolar.org logs total residential application volume, including cancellations. Solar water heaters can also be found on the site but are not included in the chart above Residential DG (MWdc) Annual Additions 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2019 Applications 2020 Applications 2021 Applications 2022 Applications 122 139 169 101 2019 2020 2021 2022

Our credit ratings support growth opportunities 22 Corporate Ratings Senior Unsecured Ratings Short-Term Ratings Outlook APS1 Moody’s A3 A3 P-2 Negative S&P BBB+ BBB+ A-2 Negative Fitch BBB+ A- F2 Negative Pinnacle West1 Moody’s Baa1 Baa1 P-2 Negative S&P BBB+ BBB A-2 Negative Fitch BBB+ BBB+ F2 Negative Balance Sheet Targets • Strong investment grade credit ratings • APS equity layer >50% • FFO/Debt range of 16%-18% 1 We are disclosing credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds. Ratings are as of August 3, 2022. Second Quarter 2022

Regulatory 2022 key dates Second Quarter 202223 ACC Key Dates / Docket # Q1 Q2 Q3 Q4 Power Supply Adjustor (PSA): E-01345A-19-0236 Effective Feb 1 Lost Fixed Cost Recovery: E-01345A-22-0042 Filed Feb 15 Approved May 18 and effective Jun 1 Transmission Cost Adjustor: E-01345A-19-0236 Effective Jun 1 2022 DSM/EE Implementation Plan: E-01345A-21-0087 2022 RES Implementation Plan: E-01345A-21-0240 Approved May 18 and effective Jun 1 2019 Rate Case: E-01345A-19-0236 Court of Appeals in process; Filed opening brief Filed reply brief at Court of Appeals New TOU Hours to be implemented: Sep 1 Resource Planning and Procurement: E-00000V-19-0034 IRP Acknowledged Feb 10 Resource Comparison Proxy (RCP): E-01345A-22-0105 Approved July 12 and will be effective Sep 1 Rulemaking Requiring All-Source RFPs: RE-00000A-22-0029 Proposed Termination of Service Rule Modifications: RU-00000A-19-0132 Effective Apr 18

Components and Key Drivers of Benefit Costs1 Second Quarter 202224 Service Cost (a cost that increases Benefit Cost): • When discount rates decrease Service Cost increases and Benefit Cost increases (and vice versa) • Not impacted by asset assumptions Interest Cost (a cost that increases Benefit Cost): • When discount rates increase Interest Cost increases and Benefit Cost increases (and vice versa) • Not impacted by asset assumptions Expected Return on Plan Assets (an offset that decreases Benefit Cost): • Expected Return on Plan Assets increases and lowers Benefit Cost when (and vice versa): ▪ Future year beginning assets increase (e.g., fixed income assets increase when interest rates / yields decrease) ▪ The future year expected return on assets percentage increases (e.g., when interest rates / yields increase the future expected return percentage on fixed income assets increases) Amortization of Prior Service Credit (an offset that decreases Benefit Cost): • Not impacted by changes in discount rates or asset assumptions Amortization of Actuarial Losses (a cost that increases Benefit Cost; the opposite would be true for Actuarial Gains): • Increases when (and vice versa): ▪ Actual dollar return on plan assets is less than the expected return on plan assets (e.g., when fixed income assets decrease due to an increase in interest rates / yields) ▪ Liability increases (e.g., when discount rates decrease) • Note that only the net actuarial cumulative gain or loss is applied to the corridor 1 Represents some of the primary components of benefit cost, being disclosed to enhance the understanding of the key drivers; however, these components and drivers may not exhaustively account for all factors that comprise benefit cost in a given period. Benefit cost components are sensitive to changes in interest rates and market returns, often with offsetting impacts from various drivers. The sensitivity of benefit costs to changing interest rates and market returns can not necessarily be extrapolated. While increases in discount rates impact benefit costs, these impacts are less sensitive and impactful to benefit costs the further from 0% the discount rate moves.

Consolidated statistics1 Second Quarter 202225 3 Months Ended June 30 Numbers may not foot due to rounding. 3 Months Ended June 30 1 Retail electricity sales in kWh, adjusted to exclude the effects of weather variations, for the year ended December 31, 2021 compared with the prior-year period increased 4.2%, which reflects a correction to 2020 commercial and industrial customer sales volumes of 111 GWh. 3 Months Ended June 30, 6 Months Ended June 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) ELECTRIC OPERATING REVENUES (Dollars in Millions) Retail Residential $ 538 $ 532 $ 6 $ 905 $ 873 $ 32 Business 463 421 42 822 736 86 Total Retail 1,000 953 48 1,727 1,608 119 Sales for Resale (Wholesale) 30 18 12 59 36 23 Transmission for Others 29 23 7 55 42 13 Other Miscellaneous Services 2 7 (5) 4 11 (7) Total Operating Revenues $ 1,062 $ 1,000 $ 61 $ 1,845 $ 1,697 $ 148 ELECTRIC SALES (GWH) Retail Residential 3,786 3,799 (13) 6,435 6,380 55 Business 4,029 3,821 208 7,333 6,965 369 Total Retail Sales 7,815 7,620 194 13,768 13,345 423 Sales for Resale (Wholesale) 541 474 66 1,227 1,109 118 Total Electric Sales 8,355 8,094 261 14,995 14,454 542 RETAIL SALES (GWH) - WEATHER NORMALIZED Residential 3,570 3,548 23 6,214 6,101 113 Business 3,970 3,759 211 7,285 6,913 372 Total Retail Sales 7,540 7,307 234 13,499 13,014 485 Retail sales (GWH) (% over prior year) 3.2% 5.5% 3.7% 3.1% AVERAGE ELECTRIC CUSTOMERS Retail Customers Residential 1,197,089 1,172,488 24,602 1,197,432 1,171,410 26,022 Business 141,059 140,024 1,035 140,945 139,762 1,183 Total Retail 1,338,149 1,312,512 25,637 1,338,377 1,311,172 27,205 Wholesale Customers 54 46 8 54 43 11 Total Customers 1,338,203 1,312,558 25,645 1,338,430 1,311,215 27,216 Total Customer Growth (% over prior year) 2.0% 2.3% 2.1% 2.2% RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer) Residential 2,983 3,026 (43) 5,189 5,208 (19) Business 28,145 26,846 1,299 51,686 49,462 2,224

Consolidated statistics Second Quarter 202226 Numbers may not foot due to rounding. 3 Months Ended June 30 3 Months Ended June 30, 6 Months Ended June 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 2,192 2,079 113 4,589 4,538 51 Coal 1,832 1,201 630 3,661 2,535 1,126 Gas, Oil and Other 2,098 2,661 (563) 3,637 4,588 (951) Renewables 181 200 (19) 297 337 (40) Total Generation Production 6,302 6,141 161 12,184 11,998 186 Purchased Power - - Conventional 1,395 1,633 (238) 1,904 1,996 (92) Resales 186 140 46 191 145 45 Renewables 739 650 88 1,373 1,192 181 Total Purchased Power 2,320 2,423 (103) 3,468 3,333 135 Total Energy Sources 8,622 8,565 58 15,652 15,331 321 POWER PLANT PERFORMANCE Capacity Factors - Owned Nuclear 88% 83% 5% 92% 91% 1% Coal 62% 41% 21% 62% 43% 19% Gas, Oil and Other 27% 34% (7)% 23% 29% (6)% Solar 36% 40% (4)% 30% 34% (4)% System Average 46% 45% 1% 44% 44% 1% 3 Months Ended June 30, 6 Months Ended June 30, 2022 2021 Incr (Decr) 2022 2021 Incr (Decr) WEATHER INDICATORS - RESIDENTIAL Actual Cooling Degree-Days 570 575 (5) 570 575 (5) Heating Degree-Days 3 - 3 454 506 (52) Average Humidity 17% 15% 2% 17% 15% 2% 10-Year Averages (2011 - 2020) Cooling Degree-Days 504 504 - 504 504 - Heating Degree-Days 5 5 448 448 - Average Humidity 17% 17% - 0% 0% -