PNW · 10-Q · 2026Q3 · Full report
Capital Expenditure Program
PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 63 · Surprise 50 · No source text
APS estimates capital expenditures of $2.6 billion in 2026, $2.65 billion in 2027, and $2.7 billion in 2028. These estimates exclude the Cholla gas conversion project, expected to cost up to approximately $440 million, and incremental capital expenditures related to the recently executed DPC. Planned spending covers generation, distribution, transmission, and other investments, including power lines, substations, and line extensions for new development. Capital expenditures are expected to be funded through internally generated cash and external financing, potentially including long-term debt and Pinnacle West common stock.
Key facts
- Estimated APS capital expenditures are $2.6 billion for 2026, $2.65 billion for 2027, and $2.7 billion for 2028. source
- The estimated APS capital expenditure forecast excludes the Cholla gas conversion project, expected to cost up to approximately $440 million, and incremental capital expenditures related to the recently executed DPC. source
- APS procured through its June 30, 2023 ASRFP 3,606 MW of battery storage, 517 MW of natural gas, 2,649 MW of solar, and 500 MW of wind resources expected to be in service from 2026 to 2028. source
- APS’s 2024 ASRFP resulted in amendments and extensions to two existing gas tolling agreements, securing 600 MW under each agreement through 2038 and 2046, respectively. source
- In its November 19, 2025 ASRFP, APS is seeking at least 1,000 MW of resources that can reach commercial operation between 2029 and 2031, while also considering earlier- or later-operating projects. source
- Pinnacle West’s consolidated cash used for investing activities was $1,872 million in the first nine months of 2026, compared with $1,833 million in 2025, an increase of $39 million, primarily related to a $137 million increase in capital expenditures, partly offset by a $98 million increase in contributions in aid of construction. source
- APS plans to add up to 2,000 MW of flexible natural gas generation to help meet Arizona’s growing around-the-clock energy needs. source
- Pinnacle West’s nine-month depreciation and amortization expenses increased $38 million year over year, primarily due to increased plant in service, partly offset by lower depreciation after Cholla operations ceased and lower intangible amortization. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | committed | -20.2% | Estimated APS capital expenditures are $2.6 billion for 2026, $2.65 billion for 2027, and $2.7 billion for 2028. |
| cash | negative | probable | -0.3% | The estimated APS capital expenditure forecast excludes the Cholla gas conversion project, expected to cost up to approximately $440… |
| cash | negative | realized | -0.1% | Pinnacle West’s consolidated cash used for investing activities was $1,872 million in the first nine months of 2026, compared with $1,833… |
| cash | negative | committed | — | APS procured through its June 30, 2023 ASRFP 3,606 MW of battery storage, 517 MW of natural gas, 2,649 MW of solar, and 500 MW of wind… |
| cash | negative | committed | — | APS’s 2024 ASRFP resulted in amendments and extensions to two existing gas tolling agreements, securing 600 MW under each agreement… |
| cash | negative | contingent | — | In its November 19, 2025 ASRFP, APS is seeking at least 1,000 MW of resources that can reach commercial operation between 2029 and 2031,… |