Pinnacle West Capital facts for kids
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| Public company | |
| Traded as |
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| ISIN | ISIN: [https://isin.toolforge.org/?language=en&isin=US7234841010 US7234841010] |
| Industry | Electric utilities |
| Founded | 1985 |
| Headquarters | Phoenix, Arizona, U.S. |
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Key people
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Jeffrey B. Guldner (Chairman & CEO) |
| Revenue |  US$3.565 billion (2017) |
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Operating income
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US$934 million (2017) |
| US$508 million (2017) |
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Number of employees
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6,292 (2017) |
Pinnacle West Capital Corporation is an American company that owns and runs power companies. Its main company is Arizona Public Service (APS). APS provides electricity to many homes and businesses in Arizona. Pinnacle West is listed on the New York Stock Exchange, which means people can buy and sell parts of the company. It is also part of the S&P 500, a list of 500 large companies in the U.S.
Contents
History of Pinnacle West
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The story of Pinnacle West began in 1884. Back then, a company called Phoenix Light and Fuel Company started in Phoenix, Arizona. Its job was to bring electricity and heat to the town. In 1901, it built two power stations that used water to make electricity.
The company changed its name a few times. In 1906, it became Pacific Gas and Electric Company. Then, in 1920, it was called Central Arizona Light and Power. Another important power plant, the Childs-Irving Hydroelectric Facilities, started making power in 1909. This helped local mining operations. The company also started paying a share of its profits, called a dividend, to its owners every year from 1920 to 1989.
In 1925, the company joined a larger group called American Power and Light. But in 1945, it became independent again. It then merged with other power companies. In 1949, it joined Northern Arizona Power and Light. In 1952, it merged with Arizona Edison and finally changed its name to Arizona Public Service (APS).
By the 1970s, APS was a big company. Most of its power came from coal plants. It also used natural gas and a small amount of oil. The company's stock price grew, and it paid good dividends.
In 1985, Arizona Public Service Company changed its structure. It became a part of a new main company called AZP Group Inc. APS was the biggest part of this new group. In 1987, AZP Group changed its name again to Pinnacle West Capital Corporation. This is the name it still uses today.
In the early 1990s, Pinnacle West faced some challenges. The company tried to expand into new areas, but some of these attempts did not work out well. For example, it bought a large bank called MeraBank. However, this bank ran into problems and was taken over by the government in 1990. Because of these issues, the company stopped paying its dividend in 1991. This was the first time since 1920 that it had not paid a dividend.
However, Pinnacle West recovered quickly. By 1992, the company was making a profit again. It started paying dividends to its owners once more in 1993. The company also faced some disagreements about how it ran its nuclear power plant and how it treated employees who reported problems. These issues were resolved.
By 1995, Pinnacle West Capital was added to the S&P MidCap 400 index, which includes successful medium-sized companies. In 1997, Pinnacle West opened the first solar power plant in Arizona. Later, the company lost some money due to a large financial scandal involving another company.
In 2011, there was a big power outage in the Southwest. It affected parts of Arizona, California, and Mexico. This outage happened because of an issue at an APS power station. Officials investigated what happened. They found that an APS employee's actions caused the problem. The outage was not caused by terrorism. In 2014, APS agreed to pay a settlement related to this blackout.
In 2018, APS faced criticism for its policy of turning off power to customers who had not paid their bills. This led to new rules in Arizona that stopped power shutoffs on very hot summer days.
Where APS Serves
APS provides electricity to about two-thirds of the Phoenix area. This includes downtown Phoenix and many areas to the north and west. It also serves the downtown areas of cities like Chandler, Gilbert, Glendale, Peoria, Scottsdale, and Tempe. Outside of the Phoenix area, APS also serves cities like Flagstaff, Prescott, Yuma, and Douglas.
Power Plants
Pinnacle West owns and runs several power plants through its company, Arizona Public Service (APS). These plants create most of the electricity used in Arizona.
Coal Power
Pinnacle West owns parts of three coal power plants: Cholla Power Plant, Four Corners Generating Station, and Navajo Generating Station. The coal for these plants mostly comes from lands owned by the Navajo Nation. The Navajo generating plant stopped working in 2019. The Cholla plant is set to close in 2025. Since 2023, the Four Corners plant has been working at half power for most of the year, but at full power during the hot summer months when more electricity is needed. This has helped Arizona use less coal-produced energy.
Nuclear Power
Pinnacle West operates and partly owns the Palo Verde Nuclear Generating Station. This plant uses nuclear energy to create electricity. Since 2003, Pinnacle West has been involved in lawsuits with the government about where to store nuclear waste. In 2023, the government agreed to its ninth settlement with Pinnacle West, paying the company a total of $36 million for these issues. The plant has enough space to store its used nuclear fuel until 2047.
Natural Gas Power
Pinnacle West owns and runs six power plants that use natural gas or oil. In 2019, it updated one of its gas plants, Ocotillo. This update made the plant much more powerful, increasing its output from 290 megawatts to 690 megawatts.
Solar Power
Pinnacle West owns and operates two large solar power systems. It also has thirty smaller solar facilities. One large system, AZ Sun, received $675 million in investment from Pinnacle West and can produce up to 180 megawatts of power. Another plant, Red Rock solar plant, produces 44 megawatts. Pinnacle West is also adding solar panels to government buildings and homes.
Pinnacle West spent money to influence elections in 2012. This was part of an effort to change rules about "net metering." Net metering allows people with solar panels to sell extra electricity they produce back to the power company. In 2017, this effort led to net metering being completely stopped.
Future Plans
Pinnacle West plans to build facilities that can store 1200 megawatts of energy. This would be almost all of Arizona's energy storage capacity. The company also plans to increase its production of renewable energy by 50% from its 2023 level by the year 2025.
See also
- Path 46
- Palo Verde Nuclear Generating Station
- Four Corners Generating Station
