PNW · 10-Q · 2026Q2 · Full report

Trade Policy and Tariffs

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 31 · Surprise 32 · In source text

Inflation and tariffs are increasing APS’s procurement costs and creating potential supply-chain constraints. CPI-U rose 4.2% nationally in the 12 months ended May 2026 and 3.0% in Phoenix in the 12 months ended April 2026. APS amended several agreements from its 2023 ASRFP to mitigate tariff and supply-chain impacts and is monitoring the U.S. Supreme Court’s decision on certain tariffs, as well as related executive and legislative actions. Management cautioned that ongoing geopolitical events and current or proposed tariffs could produce further price increases and constrain supply.

Key facts

• The OBBBA contains provisions restricting clean energy projects that begin construction after December 31, 2025 and receive material assistance from a prohibited foreign entity from being eligible for clean energy ITCs or PTCs. source

Impact estimates