Pinnacle West Capital Corp
- Industry
- Electric Utilities
- Exchange
- US
- Country
- USA
- IPO date
- Jul 19, 1984
- Employees
- 6,610
- Website
- www.pinnaclewest.com
Composite valuation range · conservative $75–$85 / fair $85–$100 / optimistic $100–$115. At $105.38, Within the optimistic intrinsic-value range · much expectation priced in.
At publication $99.74 (May 30, 2026)
Data from EODHD, shown in the reporting currency; for reference only, not investment advice.
Pinnacle West Capital Corporation, through its subsidiary, provides retail and wholesale electric services in the state of Arizona. The company engages in the generation, transmission, and distribution of electricity using nuclear, gas, oil, coal, and solar generating facilities. Its transmission facilities include overhead lines and underground lines; and distribution facilities consist of overhead lines and underground primary cables. The company also owns and maintains substations, including transmission and distribution yards; and owns energy storage facilities. Pinnacle West Capital Corporation was incorporated in 1985 and is headquartered in Phoenix, Arizona.
History
Pinnacle West Capital Corporation is an investor-owned electric utility holding company headquartered in Phoenix, Arizona. It went public on July 19, 1984 and was incorporated in 1985. Nearly all of its revenue and profit come from its principal subsidiary, Arizona Public Service (APS), one of Arizona's largest and oldest electric companies, which provides electricity to roughly 1.4 million retail customers across 11 of Arizona's 15 counties using nuclear, gas, oil, coal, and solar generating facilities. The company generates, transmits, and distributes electricity and also owns substations and energy storage facilities. Revenue grew from about $3.8 billion in 2021 to roughly $5.34 billion in 2025, and the company employs about 6,610 people. In 2025 it completed a CEO transition, with Ted Geisler taking over.
Industry position
Pinnacle West operates as a regulated electric utility through APS, holding the position of Arizona's largest and oldest electric company. Within its franchise territory the traditional retail electricity business has no direct competitor, functioning as a single-region monopoly with regulated returns set under the Arizona Corporation Commission (ACC) and the Federal Energy Regulatory Commission (FERC); the company's approved ACC/FERC rate base totals about $12.23 billion, with an ACC-allowed return on equity of 9.55% and a FERC-allowed return on equity of 10.75%. Its moat derives from institutional factors—franchise territory, licensing, the rate-setting regime, construction approvals, transmission rights, and nuclear qualification—together with high switching costs, since customers within the territory have essentially no alternative grid. Its service area is among the faster-growing in the United States, with first-quarter 2026 customer growth of 2.2% and long-term customer growth expected at 1.5%–2.5%. Peer regulated electric utilities include Ameren (AEE), Xcel Energy (XEL), Eversource (ES), and Edison International (EIX).