Risk Sleuth
PNW · 10-K filed 25 Feb 2026 · year to 31 Dec 2025

Pinnacle West Capital

37 named things its latest annual report says its results depend on, each in the company's own words. 18 of them are also named by other companies we've read.

Suppliers

Navajo Transitional Energy Company (NTEC)

depends on
NTEC, a company formed by the Navajo Nation to own the mine that serves Four Corners and develop other energy projects, is the coal supplier for Four Corners.Business (Item 1)

Partners and platforms

Nuclear Electric Insurance Limited (NEIL)

depends on · approximately $24.2 millionnamed as a risk
In addition, APS is subject to retrospective premium adjustments under its nuclear property insurance policies with NEIL for approximately $24.2 million if NEIL’s losses in any policy year exceed accumulated funds and if the retrospective premium assessment is declared by NEIL’s Board of Directors.Risk factors (Item 1A)

Also named by CEG, ETR, VST

Western Energy Imbalance Market (WEIM)

depends on
In 2016, APS began to participate in the WEIM, a voluntary, real-time optimization market operated by the CAISO.Business (Item 1)

SPP Markets+

APS has made a market decision to pursue participation in SPP Markets+, which is expected to go live in October 2027.Business (Item 1)

Other companies

Arizona Public Service Company (APS)

concentrated in · essentially all of our revenues and earningsnamed as a risk
We derive essentially all of our revenues and earnings from our wholly-owned subsidiary, APS.Risk factors (Item 1A)

Palo Verde Generating Station

operates in · approximately 18% of APS’s owned and leased generation capacitynamed as a risk
Palo Verde constitutes approximately 18% of APS’s owned and leased generation capacity.Risk factors (Item 1A)

Four Corners Generating Station

operates in · 970 MWnamed as a risk
APS has a total entitlement from Four Corners of 970 MW.Business (Item 1)

International Brotherhood of Electrical Workers (IBEW)

Approximately 1,120 APS employees
Approximately 1,120 APS employees are union employees represented by International Brotherhood of Electrical Workers (“IBEW”).Business (Item 1)

Also named by AEE, EIX, ES, EVRG, FE, MYRG, NEE, SO and 2 more

Cholla Power Plant

operates innamed as a risk
In APS’s rate case application filed in 2025 (the “2025 Rate Case”), APS requested recovery in rates of the ongoing environmental remediation and CCR closure costs associated with Cholla and any remaining unrecovered plant costs.Business (Item 1)

Navajo Generating Station

named as a risk
APS will seek continued recovery in rates or the book value of its remaining investment in the plant.Business (Item 1)

Navajo Nation

depends on
APS, on behalf of the Four Corners participants, negotiated amendments to an existing facility lease with the Navajo Nation, which extends the Four Corners leasehold interest from 2016 to 2041.Business (Item 1)

Places

Arizona

concentrated in · 11 of Arizona’s 15 counties
APS is Arizona’s largest and longest-serving electric company and generates safe, affordable electricity in 11 of Arizona’s 15 counties.Business (Item 1)

Also named by ABR, AMKR, AXON, BBSI, BRK/B, DJCO, ELS, ENSG and 5 more

Hazards

Drought

operates innamed as a risk
Prolonged and extreme drought conditions can also affect APS’s long-term ability to access the water resources necessary for thermal electricity generation operations.Risk factors (Item 1A)

Also named by AESI, AM, AWK, BF/B, BMI, CEG, EOG, ES and 8 more

Wildfire

operates innamed as a risk
In addition, APS could be sued regardless of fault for damages incurred as a result of wildfires and may not be able to recover all or a substantial portion of any such damages or costs from insurance or through rates.Risk factors (Item 1A)

Also named by A, AEP, ARE, BKH, CB, CRC, EVRG, MDU and 2 more

Extreme heat

operates innamed as a risk
Extreme heat events and rising temperatures are projected to reduce the generation capacity of thermal-power plants and decrease the efficiency of the transmission grid.Risk factors (Item 1A)

Also named by CTRE

Commodities and inputs

Colorado River

depends on · 18 percent or 512,000-acre feetnamed as a risk
A Tier 1 shortage reduces Arizona’s share of the Colorado River water by 18 percent or 512,000-acre feet; however, due to in-state conservation measures, Arizona has kept more Colorado River water in Lake Mead than is required by the shortage.Business (Item 1)

Uranium

depends on · 100% of Palo Verde’s requirements for uranium concentrates through 2028 and 70% through 2029
The Palo Verde participants have contracted for 100% of Palo Verde’s requirements for uranium concentrates through 2028 and 70% through 2029; 100% of Palo Verde’s requirements for conversion services through 2030 and 32% through 2031; 100% of Palo Verde’s requirements for enrichment services through 2028; and 100% of Palo Verde’s requirements for fuel fabrication through 2027 for Unit 2 and Unit 1 and 2028 for Unit 3.Business (Item 1)

Also named by AEE, AEP, CEG, DTE, DUK, ETR, EVRG, LEU and 2 more

Natural gas

exposed to its pricenamed as a risk
APS is exposed to the impact of market fluctuations in the price and transportation costs of electricity, natural gas, and coal to the extent that unhedged positions exist.Risk factors (Item 1A)

Also named by AA, ADM, AEE, AEP, AES, AESI, AGX, ALB and 132 more

Regulators

Federal Energy Regulatory Commission (FERC)

subject to · approximately 4.5% of APS’s electric operating revenuesnamed as a risk
During 2025, approximately 4.5% of APS’s electric operating revenues resulted from such sales and services.Business (Item 1)

Also named by AA, AEE, AEP, AM, AMRC, AR, ARES, ATO and 62 more

U.S. Department of Energy (DOE)

approximately $174.3 million
The DOE has approved and paid approximately $174.3 million for these claims (APS’s share is approximately $50.7 million).Business (Item 1)

Also named by AAON, AMRC, AOS, BWXT, CDE, CDRE, CEG, CLF and 16 more

Nuclear Regulatory Commission (NRC)

subject tonamed as a risk
In the event of noncompliance with its requirements, the NRC has the authority to impose a progressively increased inspection regime that could ultimately result in the shut-down of a unit or civil penalties, or both, depending upon the NRC’s assessment of the severity of the situation, until compliance is achieved.Risk factors (Item 1A)

Also named by AEE, AEP, BRK/B, BWXT, CAH, CDRE, CEG, CW and 20 more

NERC

subject tonamed as a risk
The increasing promulgation of NERC and NRC rules and standards will increase our compliance costs and our exposure to the potential risk of violations of the standards.Risk factors (Item 1A)

Also named by AEE, NRG, TLN

Arizona Corporation Commission (ACC)

subject tonamed as a risk
Decisions made by the ACC or FERC could have a material adverse impact on our financial condition, results of operations, or cash flows.Risk factors (Item 1A)

Laws and programs

Price-Anderson Act nuclear liability (retrospective assessment)

subject to · up to $144.9 million (but not more than $21.6 million per year)named as a risk
APS may be required under federal law to pay up to $144.9 million (but not more than $21.6 million per year) of liabilities arising out of a nuclear incident not only at Palo Verde, but at any other nuclear power plant in the United States.Risk factors (Item 1A)

Renewable Energy Standard (RES)

subject to · 30% of the applicable RES requirementnamed as a risk
The distributed renewable energy requirement is 30% of the applicable RES requirement for 2012 and subsequent years (APS was granted a waiver of this requirement in its 2026 RES Implementation Plan).Risk factors (Item 1A)

Energy Policy Act of 2005 (FERC reliability standards)

subject to · approximately $1.2 million per day per violationnamed as a risk
For example, under the Energy Policy Act of 2005, FERC can impose penalties (approximately $1.2 million per day per violation) for failure to comply with mandatory electric reliability standards.Risk factors (Item 1A)

South Indian Bend Wash Superfund Site

subject to · approximately $1.7 millionnamed as a risk
APS estimates that its costs to oversee and participate in the remedial investigation work will be approximately $1.7 million.Business (Item 1)

Motorola 52nd Street Superfund Site

subject to · approximately $3 million
APS’s expenditures related to this investigation and study are approximately $3 million.Business (Item 1)

U.S. tariffs

exposed to its pricenamed as a risk
Additionally, supply chains have been impacted and could be further impacted by inflation, tariffs, and other sociopolitical factors, resulting in equipment delays and increased costs.Risk factors (Item 1A)

Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more

EPA Coal Combustion Residuals (CCR) rule

subject tonamed as a risk
Depending on the eventual outcome, the costs associated with APS’s management of CCR could materially increase, which could affect our financial condition, results of operations, or cash flows.Business (Item 1)

Also named by AES, D, ETR, LNT, MDU, NI, PEG, SO and 1 more

EPA Good Neighbor Plan

subject tonamed as a risk
Should a federal program like the Good Neighbor Plan ultimately be imposed on APS and its operations in Arizona and New Mexico, it would have material impact on both the costs to operate current APS power plants and APS’s ability to develop new thermal generation to serve load.Business (Item 1)

Also named by ETR, EXP, TLN, VST

EPA Effluent Limitation Guidelines

subject tonamed as a risk
APS is currently evaluating its compliance options for Four Corners based on the ELG regulations finalized in April 2024 and is assessing what impacts the new standards will have on our financial condition, results of operations, and cash flows.Business (Item 1)

Also named by LNT, VST

Nuclear Waste Policy Act of 1982

subject tonamed as a risk
APS is directly involved in legal proceedings related to the DOE’s failure to meet its statutory and contractual obligations regarding acceptance of spent nuclear fuel and high-level waste.Business (Item 1)

Also named by OKLO, TLN

EPA power plant GHG emission standards (2024)

subject tonamed as a risk
If the current regulations were to remain in effect, they would likely lead to a material increase in APS’s costs to build, operate, and maintain new, frequently operated gas-fired power plants.Business (Item 1)

Ozone NAAQS (Maricopa County non-attainment)

subject tonamed as a risk
The vast majority of APS’s natural gas-fired EGUs are located in these jurisdictions.Business (Item 1)

Gila River Adjudication

subject tonamed as a risk
APS’s rights and the rights of the other Palo Verde participants to the use of groundwater and effluent at Palo Verde are potentially at issue in this adjudication.Business (Item 1)

California cap-and-trade program (AB 32)

subject to
Under the program, entities selling electricity into California, including APS, must hold carbon allowances to cover GHG emissions associated with electricity sales into California from outside the state.Business (Item 1)

Also named by APD, CRC, CVX, MP, PSX