PNW · 10-Q · 2026Q3 · Full report

Supply Chain Constraints

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 42 · Surprise 42

APS said existing natural gas pipelines into Arizona are fully committed, limiting the availability of additional gas transportation as demand grows. In July 2025, APS executed a precedent agreement for long-term additional gas transportation, with the third-party-owned pipeline expected to be operational by late 2029. APS also reported that tariffs and supply-chain constraints led it to amend several agreements from its 2023 ASRFP to mitigate cost impacts. Its affordability initiative includes maintaining inventory to take advantage of lower pricing and avoid expediting fees, and using long-term contracts to mitigate procurement spending on critical items such as transformers.

Key facts

• In July 2025, APS executed a gas transportation precedent agreement to secure a long-term supply of additional natural gas transportation. source
• The third-party-owned and operated new pipeline is expected to be operational by late 2029. source
• Existing natural gas pipelines into Arizona are fully committed. source