PNW · 10-Q · 2026Q2 · Full report

Acquisition / Partnership / Divestiture

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 47 · Surprise 60 · No source text

In June 2025, APS entered into agreements to purchase two of the three leased interests in Palo Verde Unit 2. The acquired interests represented approximately 7% or 94 MW of Unit 2, and the transaction closed in September 2025. After closing, APS retained one remaining Unit 2 lease representing approximately 5.2% of the unit that expires in 2033. The 2025 Rate Case includes pro forma adjustments for the acquired interests, strengthening APS’s ownership of a foundational carbon-free generation asset.

Key facts

• In June 2025 APS entered into agreements to purchase two of the three leased interests in Unit 2 representing approximately 7% or 94 MW of Unit 2. source
• The Palo Verde leased-interest transaction closed in September 2025, leaving one remaining lease for approximately 5.2% of Unit 2 that expires in 2033. source
• El Dorado committed investments: $25 million in Energy Impact Partners (approximately $21 million funded as of June 30, 2026), $25 million in Copper Sky (approximately $19 million funded as of June 30, 2026), and $7.5 million in Westly Seed Fund (approximately $2 million funded as of June 30, 2026). source
• El Dorado’s equity investment in SAI has an investment carrying value of approximately $34 million as of June 30, 2026. source
• PNW Power indirectly owns 9.9% of Clear Creek (242 MW) and 5.1% of Nobles 2 (250 MW) wind farms; Clear Creek achieved commercial operation in May 2020 and Nobles 2 in December 2020. source

Impact estimates