PNW · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 26 · Surprise 24

APS reported that increased tariffs and supply chain constraints were affecting procurement costs and led it to amend several agreements from its 2023 ASRFP. The company is maintaining inventory to capture lower pricing and avoid expediting fees, while using long-term contracts to hedge volatility and mitigate procurement spending on critical items such as transformers. APS’s resource solicitations emphasize projects able to withstand supply chain pressures, tariff volatility, and other external disruptions.

Key facts

• APS amended several agreements from its ASRFP issued in 2023 due to increased tariffs and supply chain constraints. source