Pinnacle West and APS face risks from economic volatility, fluctuating energy demand, climate change impacts, power plant performance, competition, regulatory changes, fuel supply, rate recovery, renewable energy mandates, nuclear plant operations, cybersecurity threats, and access to capital markets. Potential disallowances of costs, litigation, and changes in environmental regulations also pose risks. The performance of investments in nuclear decommissioning trusts and other special use funds is also a risk.
Financial Upside
Potential upside includes new customer rates, increased customer usage and growth, favorable weather, higher revenue from cost recovery mechanisms (CRS and LFCR), and gains from the sale of Bright Canyon Energy. Increased renewable energy surcharges and other regulatory programs also offer potential revenue increases. The company expects customer growth and sales to increase in the coming years.
