Profile: Pinnacle West Capital Corp (PNW)
16 Mar 2018
Pinnacle West Capital Corporation, incorporated on February 20, 1985, is a holding company that operates through its subsidiaries. The Company operates through regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution. The Company's subsidiaries include Arizona Public Service Company (APS), which is a vertically-integrated electric utility that provides retail or wholesale electric service to the State of Arizona, with the exceptions of one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona.
The Company's subsidiary APS provided electric service to approximately 1.2 million customers, as of December 31, 2016. The Company owned and leased 6,236 megawatt (MW) of regulated generation capacity and the Company held a mix of both long-term and short-term purchased power agreements for additional capacity, including agreements for the purchase of renewable energy, as of December 31, 2016. APS has ownership interests in or leases the coal, nuclear, gas, oil and solar generating facilities. APS's coal-fueled generating facilities include Four Corners, Cholla and Navajo Generating Station. Four Corners is located in the northwestern corner of New Mexico. Four Corners was a five-unit coal-fired power plant, as of December 31, 2016. As of December 31, 2016, APS operated the plant and owned 63% of Four Corners Units 4 and 5. APS had a total entitlement from Four Corners of 970 MW, as of December 31, 2016.
The Company's Cholla Power Plant (Cholla) is a four-unit coal-fired power plant, which is located in northeastern Arizona. APS operated the plant and owned 100% of Cholla Units 1, 2 and 3, as of December 31, 2016. APS operates Cholla Unit 4, which is owned by PacifiCorp. APS had a total entitlement from Cholla of 387 MW, as of December 31, 2016. The Navajo Plant is a three-unit coal-fired power plant located in northern Arizona. Salt River Project operated the plant and APS owned a 14% interest in Navajo Units 1, 2 and 3, as of December 31, 2016. APS had a total entitlement from the Navajo Plant of 315 MW, as of December 31, 2016. APS operates the Palo Verde, which is a three-unit nuclear power plant located approximately 50 miles west of Phoenix, Arizona. APS operated the plant and owned 29.1% of Palo Verde Units 1 and 3 and approximately 17% of Unit 2, as of December 31, 2016. APS had a total entitlement from Palo Verde of 1,146 MW, as of December 31, 2016.
As of December 31, 2016, APS had six natural gas power plants located throughout Arizona, consisting of Redhawk, located near Palo Verde; Ocotillo, located in Tempe; Sundance, located in Coolidge; West Phoenix, located in southwest Phoenix; Saguaro, located north of Tucson; and Yucca, located near Yuma. Various units at Yucca run on either gas or oil. As of December 31, 2016, APS had one oil-only power plant, Douglas, located in the town of Douglas, Arizona. APS owns and operates plants with the exception of one oil-only combustion turbine unit and one oil and gas steam unit at Yucca that are operated by APS and owned by the Imperial Irrigation District. APS had a total entitlement from these plants of 3,179 MW, as of December 31, 2016. Ocotillo is a 330 MW four-unit gas plant located in the metropolitan Phoenix area. APS developed utility scale solar resources through the 170 MW AZ Sun Program. APS developed the 40 MW Red Rock Solar Plant, which it owned and operated, as of December 31, 2016. Additionally, APS owned and operated more than 40 small solar systems around the state, which hads a capacity to produce approximately four MW of renewable energy, as of December 31, 2016. This fleet of solar systems includes a three MW facility located at the Prescott Airport and one MW of small solar in various locations across Arizona. APS has also developed solar photovoltaic distributed energy systems installed as part of the Community Power Project in Flagstaff, Arizona. APS owned, operated and received energy from approximately one MW of solar photovoltaic distributed energy systems located within a certain test area in Flagstaff, Arizona, as of December 31, 2016.
The Company's subsidiary BCE focuses on the electric energy industry. The Company's joint venture, named TransCanyon, is pursuing transmission opportunities within the 11 states that comprise the Western Electricity Coordinating Council, excluding opportunities related to transmission service of the retail service territories of the venture partners' utility affiliates. El Dorado owns minority interests in various energy-related investments and Arizona community-based ventures.
Pinnacle West Capital Corp
400 N 5th St
PHOENIX AZ 85004-3902