Tag Archives: Don Brandt

boardroom

Pinnacle West Adds Two Members to Its Board

Pinnacle West Capital Corporation (NYSE: PNW) announced today that its Board of Directors has elected two new members to the Board: Richard P. “Rick” Fox, an independent business consultant, and David Wagener, managing partner of investment and advisory firm Wagener Capital Management.

The appointments, effective immediately, increase the number of Pinnacle West directors from nine to 11 members, of which 10 are independent members. Fox and Wagener will stand for re-election along with all other directors at the Pinnacle West Annual Meeting of Shareholders in May. Both also were appointed to the board of directors of Arizona Public Service Company.

“We are pleased to add the talent and financial acumen of these two respected individuals,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt. “Rick has a deep understanding of financial and accounting matters, as well as extensive board experience at publicly traded companies. David has 30-plus years in the energy industry, including extensive knowledge of utility regulation, finance and investment banking.

“We look forward to the perspectives both individuals will provide to our strategy and operations as we continue to focus on delivering value for our customers and shareholders.”

Fox, 66, has served as a consultant and independent board member since 2001 for companies in various industries. He previously held executive, operational and financial positions at CyberSafe Corporation; Wall Data, Inc.; and PACCAR, Inc.; and is a former Managing Partner of Ernst & Young’s Seattle office.

Fox has an undergraduate degree in business with a major in Accounting from Ohio University, and an MBA from the Fuqua School of Business at Duke University (Fuqua Scholar). He is a Certified Public Accountant.

Wagener, 59, is the managing partner of Wagener Capital Management, an investment and advisory firm serving utility and private equity companies. He previously held executive positions at Salomon Brothers and Goldman Sachs & Co.

Wagener holds a BA from Harvard College and an MBA from the University of Chicago.

Pinnacle West Capital, an energy holding company based in Phoenix, has consolidated assets of nearly $14 billion, more than 6,300 megawatts of generating capacity and about 6,600 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the Company provides retail electricity service to more than 1.1 million Arizona homes and businesses. For more information about Pinnacle West, visit the Company’s website at pinnaclewest.com.

state land department

State Land Department, APS Partner On First Solar Facility To Be Built On State Land

Arizona’s State Land Department and Arizona Public Service are working in coordination to build the first-ever solar project on Arizona State Trust lands. Nearly 400 acres in Yuma County will soon be home to the 35-megawatt APS Foothills Solar Plant. The cost to APS for a 35-year lease on the land is $10 million, which will go primarily to help fund Arizona public education.“It is a commitment we share with Governor Brewer, the Arizona Corporation Commission and other key decision makers in Arizona. Together, we have taken another important step toward creating a sustainable energy future for Arizona.”

The unprecedented decision to build this project on State land supports Arizona Governor Janice K. Brewer’s goals to facilitate and encourage renewable energy and economic development in Arizona.

“This collaboration furthers our ongoing efforts to establish Arizona as a global leader in renewable energy,” said Governor Brewer. “The project will bring quality solar jobs to Arizona and dollars to support our state’s public schools – all while utilizing Arizona’s most abundant resource, the sun, to generate clean and renewable energy. It’s the first of many solar projects that will benefit the entire state and cement our status as the ‘Solar King.’ ”

For the past eight months, the State Land Department has done extensive work to identify State Trust land sites suitable for solar development. With these locations in mind, State Land Department Commissioner Maria Baier approached APS about building a solar plant on State Trust land. This led to an independent assessment by APS to determine the most suitable development location for its next solar plant – which yielded the Yuma Foothills project site. The fit was ideal for Arizona and for the company.

The result is APS’s fifth, and largest, AZ Sun project to date. The Foothills Solar Plant will have a capacity of 35 megawatts, or enough to power 8,750 Arizona homes. All the electricity produced from this facility will be used to serve local Yuma residents.

“Through our growing investment in solar energy, we are helping the environment, creating jobs and protecting our customers against potentially volatile fuel prices,” said Don Brandt, APS Chairman and Chief Executive Officer. “It is a commitment we share with Governor Brewer, the Arizona Corporation Commission and other key decision makers in Arizona. Together, we have taken another important step toward creating a sustainable energy future for Arizona.”

Foothills will create more than 100 construction jobs and will break ground in August 2012. The plant is expected to come online in two phases – the first 17 MW will reach commercial operation by March 2013; the remaining 18 MW will reach commercial operation by December 2013. APS has hired Atlanta, Ga.-based AMEC to construct the facility.

The AZ Sun Program was approved by the ACC and enables APS to invest in the development of up to 200 megawatts of solar photovoltaic power plants across Arizona. APS will finance and own the projects, which are being designed and constructed by third-party solar developers, contractors and equipment providers. AZ Sun is good for APS customers because they benefit from the savings of renewable tax credits and utility-operated power plants for the entire useful life of the facilities.

The proceeds from land sales and leases of State Trust lands go to the beneficiaries of the State Land Trust, primarily Arizona Common Schools, supporting grades K-12. The Arizona State Land Department manages 9.3 million acres of Arizona State Trust Land. For more information about the Arizona State Land Department visit www.land.state.az.us or call (602) 542-4621.

Pinnacle West reports

Pinnacle West Reports Positive 2011 Fourth-quarter & Full-year Results

 ’Disciplined cost management’ and strong operational performance benefit bottom line

Pinnacle West Capital Corporation reported consolidated on-going earnings of $12.1 million, or $0.11 per diluted share of common stock, for the quarter ended December 31, 2011. This result compares with on-going earnings of $5.2 million, or $0.05 per share, in the same 2010 period. The Company’s net income attributable to common shareholders for the 2011 fourth quarter was $12.6 million, or $0.11 per diluted share, compared with net income of $7.4 million, or $0.07 per share, for the same quarter a year ago.

For full-year 2011, Pinnacle West reported consolidated on-going earnings of $328.1 million, or $2.99 per share, as compared to $324.7 million, or $3.03 per share, a year ago. Consolidated net income attributable to common shareholders for 2011 was $339.5 million, or $3.09 per diluted share, compared with 2010 net income of $350.1 million, or $3.27 per diluted share.

On-going earnings exclude results of discontinued operations primarily related to the Company’s real estate activities and former energy services business. A reconciliation of reported earnings to on-going earnings is provided at the end of this release.

“Disciplined cost management, concentration on our core electricity business and superior operational performance by our dedicated employees – particularly in the areas of customer service, reliability and safety – produced sound financial results,” said Pinnacle West Chairman, President and Chief Executive Officer Don Brandt.

Brandt added that the Company’s 2011 results exceeded its earnings guidance. The Company had projected that on-going earnings would be near the top of its guidance range of $2.75 to $2.90 per share. The actual results were due, in part, to lower than expected operating and maintenance costs, and cooler than normal weather that increased retail sales in the fourth quarter by a similar amount as the year-ago period.

“We achieved a significant milestone with the proposed settlement of APS’s pending retail rate case,” said Brandt. “The agreement has broad support and contains provisions important to customers, shareholders and other stakeholders.” The settlement is pending approval by the Arizona Corporation Commission. APS and the other parties have requested the agreement take effect July 1, 2012.

Brandt cited additional examples of the Company’s recent achievements:

  • In 2011, APS continued its top-tier customer satisfaction rating, maintained superior power plant performance, and provided its 1.1 million customers with record levels of service reliability.
  • Standard & Poor’s Corporation (S&P) raised credit ratings in June for Pinnacle West and APS to BBB, up from BBB-, thus reducing borrowing costs and improving access to debt markets. S&P cited the companies’ stronger credit metrics, reduction in debt, improving regulatory environment and prudent financial management as contributing factors.
  • APS also celebrated several renewable energy milestones as the AZ Sun Program (APS-owned solar energy) added 50 megawatts of new solar capacity, enough to serve more than 12,000 APS customers. With these plants, APS’s renewable energy portfolio now includes 423 megawatts with an additional 523 megawatts in development. New solar and wind plants to serve APS customers have created more than 2,400 design, engineering and construction jobs for Arizona.

The fourth-quarter on-going results comparison was positively impacted by the following major factors:

  • A decrease in operations and maintenance expenses improved earnings by $0.06 per share, due largely to lower power plant maintenance costs as a result of more work being completed earlier in the year than in 2010; and to lower employee benefit costs, partially offset by higher customer service and energy delivery expenses. The variance excludes costs associated with renewable energy and energy efficiency programs, which are offset by comparable amounts of operating revenues.
  • Higher transmission revenues improved earnings by $0.03 per share, primarily because of a retail transmission rate increase implemented in July 2011.

These positive factors were partially offset by the absence of tax benefits of $0.06 per share that were recorded in the 2010 fourth quarter, but were related to prior years.

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APS, the Company’s principal subsidiary, recorded 2011 fourth-quarter net income attributable to common shareholder of $14.3 million versus net income of $7.8 million for the comparable 2010 quarter. For 2011 as a whole, APS net income attributable to common shareholder was $336.2 million compared with $335.7 million for 2010.

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