Pinnacle West (PNW) official guidance

We expect that project could add up to approximately $440 million of incremental capital investment, mostly in 2027 and 2028.

Based on our strong execution through the first half of the year, we are reiterating all other aspects of our guidance and currently expect to finish the year at the top end of our earnings guidance range of $4.55-$4.75 per share.

Once complete, the project is expected to provide approximately 380 MW of reliable dispatchable generation by 2029.

As I mentioned in the prepared remarks, this was a lot closer to our long-term sales growth guidance range, which we provide through 2030, which is 5%-7% relative to the 4%-6% that we're showing for this year.

As I mentioned in the prepared remarks, this was a lot closer to our long-term sales growth guidance range, which we provide through 2030, which is 5%-7% relative to the 4%-6% that we're showing for this year.

You know, at this point, through various equity forward transactions, we've accumulated almost $850 million of equity to put to work. You know, our stated need for this year is $650 million in terms of equity.

In terms of what those base needs are that, you know, $1 billion-$1.2 billion that we put out there for, you know, new money being raised from 2026 through 2028, we've already started to, you know, eat into that number by several hundred million.

We continued to have a strong focus on cost management, and we are maintaining our goal of declining O&M per megawatt-hour.

Management's goal is to be able to consistently earn within that 50 basis points, given there's some element of structural lag that'll continue to exist. I think the latest thinking on design elements for a formula rate as well as assuming a constructive outcome ultimately in the rate case revenue requirement would allow us to do so by 2029 or going forward.

Sure, Fayyaz. Andrew, yeah, we're committed to keeping our holdco debt at a judicious level and that mid-teens level. You know, I believe if you, if you calculated it at year-end, it was at 17%, so, you know, kind of within the range that we're targeting. As you look at the financing plan for 2026, the, you know, holdco debt levels are intended to be, you know, quite modest and stay, you know, within that bandwidth.

Consistent with that strategy, our rate-based growth guidance remains unchanged at 7% -9% through 2028.

Our weather-normalized sales growth guidance for 2026 remains unchanged at 4%-6%, with Extra High Load Factor CNI customers expected to contribute 3%-5% of that growth.

APS experienced robust customer growth of 2.4% in 2025 and anticipates projected average annual growth in the range of 1.5% to 2.5% through 2030.

Over the next five years, future sales are expected to increase between 5% and 7% annually due in large part to the expected additions of several large commercial and manufacturing facilities.

We are therefore narrowing our customer growth guidance range to the high end of 2%-2.5% for the year.

Customer growth next year is expected at 1.5%-2.5%, supported by Arizona's ongoing population and business expansion.

Based on strong sales growth, along with above-normal weather, an increase in transmission revenues, and contributions from El Dorado, we are raising our 2025 EPS guidance from a range of $4.40-$4.60 per share up to $4.90-$5.10 per share.

For 2026, approximately 85% of our equity need has already been priced, with an additional $1 billion-$1.2 billion of Pinnacle West equity forecasted through 2028.

With the ability to de-risk future operating expenses, our updated guidance reflects an increase to our forecasted O&M for the year to a range of $1.025 billion-$1.045 billion.

On the O&M front, our 2026 outlook reflects our commitment to cost efficiency. We expect a slight year-over-year decrease despite continued customer growth, and we remain focused on reducing O&M per megawatt hour over the long term.