PNW · 10-Q · 2026Q3 · Full report

Renewable Generation Transition

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 27 · Surprise 24

APS has an aspirational goal to be carbon-neutral by 2050, with remaining greenhouse-gas emissions from generation intended to be offset elsewhere. The goal is framed around potential generation and storage innovation and market changes, with the IRP and competitive ASRFP processes determining the path forward. APS’s October 2026 IRP identified customer demand and energy needs growing faster than previously forecast and considered economic growth, weather, and technology availability in planning its resource mix. APS also continues to consider dispatchable resources, including natural gas and coal-fired generation beyond 2031, as it pursues reliability and affordability alongside lower emissions over time.

Key facts

• In July 2026, APS announced plans to convert two Cholla units to natural gas, adding approximately 380 MW of gas-fired generation; construction is contemplated to begin in 2028, with a targeted 2029 in-service date, subject to change pending evaluation of other generation sources in the 2025 ASRFP. source
• In March 2026, APS announced its intention to renew all three Palo Verde unit operating licenses, extending operations from the mid-2040s through the mid-2060s. source
• Pinnacle West’s nine-month renewable energy program and similar regulatory program costs decreased $48 million year over year; these costs are partially offset in operating revenues and fuel and purchased power. source
• APS has an aspirational goal to be carbon-neutral by 2050, with an aim to offset any generation-related greenhouse-gas emissions remaining in 2050. source
• Small modular nuclear reactors are typically designed to generate 300 MW or less per unit, compared with 1,400 MW per Palo Verde unit. source
• Palo Verde generates more than 32 million MWh per year, enough power for roughly 3.4 million households or approximately 8.5 million people. source
• Pinnacle West’s third-quarter renewable energy program and similar regulatory program costs decreased $20 million year over year; these costs are partially offset in operating revenues and fuel and purchased power. source
• APS owns or leases 29.1% of Palo Verde Units 1, 2, and 3. source