PNW · 10-Q · 2026Q2 · Full report
Capital Expenditure Program
PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 58 · Surprise 42 · In source text
APS issued a June 30, 2023 ASRFP that procured 3,606 MW of battery storage, 517 MW of natural gas, 2,649 MW of solar and 500 MW of wind resources expected to enter service from 2026 through 2028. APS’s 2024 ASRFP resulted in amendments and extensions to two gas tolling agreements securing 600 MW under each agreement through 2038 and 2046. In July 2026, APS announced plans to convert two Cholla units to natural gas, adding approximately 380 MW with construction contemplated for 2028 and targeted in-service operation in 2029. APS also plans to add up to 2,000 MW of flexible natural-gas generation to meet growing around-the-clock energy demand.
Key facts
- Estimated APS capital expenditures for Generation (Gas and Other, Nuclear, Renewables and Energy Storage), Distribution, Transmission and Other total $2,600 million for 2024, $2,650 million for 2025, and $2,700 million for 2026 (Estimated for the Year Ending December 31). source
- The Cholla gas conversion project is currently expected to cost up to approximately $440 million and these amounts are not included in the estimated capital expenditures table. source
- The Cholla gas conversion plan contemplates construction beginning in 2028 with a targeted in-service date in 2029. source
- Pinnacle West's consolidated net cash used for investing activities was $1,200 million in 2026 compared to $1,253 million in 2025, a decrease of $53 million. source
- Depreciation and amortization expenses were $19 million higher for the six months ended June 30, 2026 compared to the prior-year period, primarily due to increased plant in service and intangible assets, partially offset by operations ceasing at the Cholla plant. source
- Depreciation and amortization expenses were $14 million higher for the three months ended June 30, 2026 compared to the prior-year period, primarily due to increased plant in service, partially offset by operations ceasing at the Cholla plant. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| assets | positive | committed | +7.0% | Estimated APS capital expenditures for Generation (Gas and Other, Nuclear, Renewables and Energy Storage), Distribution, Transmission and… |
| assets | positive | probable | +0.7% | The Cholla gas conversion project is currently expected to cost up to approximately $440 million and these amounts are not included in the… |
| cash | positive | realized | +0.2% | Pinnacle West's consolidated net cash used for investing activities was $1,200 million in 2026 compared to $1,253 million in 2025, a… |
| assets | positive | probable | — | The Cholla gas conversion plan contemplates construction beginning in 2028 with a targeted in-service date in 2029. |