Fayyaz Zuberi

Fayyaz Zuberi asked for an update on Pinnacle West Capital's capacity growth, including the latest thinking on the Integrated Resource Plan (IRP) planning and timing, and how to consider incremental transmission and gas generation opportunities compared to disclosed plans. He also inquired about the cadence to reach the mid-teens holdco debt target and the 2025 year-end metric.

Answer

Chairman, President, and CEO Ted Geisler explained that an updated 15-year IRP would be filed mid-year, reflecting robust long-term growth and the generation/transmission needed, including committed TSMC build-out and data center ramping. He noted that uncommitted data center demand and further TSMC expansion would be incremental to the current capital plan. Senior Vice President and CFO Andrew Cooper stated that holdco debt was at 17% at year-end 2025, within the target range, with modest holdco debt levels planned for 2026.

Fayyaz Zuberi inquired about the latest Integrated Resource Plan (IRP) planning, including its mid-year timing, and how to assess incremental transmission and gas generation opportunities beyond current disclosures. He also asked about the company's credit metric update, specifically the holdco debt as a percentage of total debt, the cadence to reach the mid-teens target, and the 2025 year-end metric.

Answer

Chairman, President, and CEO Ted Geisler explained that an updated 15-year IRP would be filed mid-year, detailing robust long-term growth and the generation/transmission needed, noting that the current capital plan extends through 2028. He highlighted that incremental data center demand from the uncommitted queue and further TSMC expansion would be additional to the disclosed plan. CFO Andrew Cooper stated that holdco debt was 17% at year-end 2025, within the target range, and 2026 holdco debt levels are expected to be modest.