PNW · 8-K · 20260807PR000044
Generation Investment Program
PINNACLE WEST CAPITAL CORP · 2026-08-07 · Importance 64 · Surprise 42 · In source text
Pinnacle West announced up to 2 GW of new gas generation to support rising demand in Arizona. The company expects to invest up to approximately $440 million to convert the retired Cholla power plant to 380 MW of natural-gas generation. APS invested approximately $200 million to exercise a buyout option for nearly 100 MW of Palo Verde nuclear capacity previously under a sale-leaseback. APS also increased its Palo Verde capital program by approximately $500 million over the next 10 years and is anchoring a new gas pipeline expected to enter service by late 2029.
Key facts
- Announced new gas generation of up to 2 GWs source
- Announced incremental investment of up to $440M for conversion of retired Cholla power plant to 380MW of natural gas generation source
- Estimated capital expenditures presented exclude amounts related to Cholla gas conversion project currently expected to cost up to approximately $440 million source
- Approximately $200 million investment made on buyout option for nearly 100 MW of nuclear capacity previously under sale-leaseback at Palo Verde source
- 2026 Integrated Resource Plan to be filed October 30, 2026 (Docket E-99999A-25-0058) source
- Planned outage at Palo Verde (Q4) Unit 1 estimated duration: 46 days source
- Planned outage at Palo Verde (Q2) Unit 2 duration: 45 days (outage began at end of Q1) source
- Current percentage from clean energy as of December 31, 2025: 58% source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | probable | — | Announced incremental investment of up to $440M for conversion of retired Cholla power plant to 380MW of natural gas generation |
| assets | positive | realized | — | Approximately $200 million investment made on buyout option for nearly 100 MW of nuclear capacity previously under sale-leaseback at Palo… |
| cash | negative | realized | — | Approximately $200 million investment made on buyout option for nearly 100 MW of nuclear capacity previously under sale-leaseback at Palo… |