Tag Archives: Pinnacle West Capital Corporation

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Pinnacle West declares quarterly dividend

Pinnacle West Capital Corporation’s Board of Directors today declared a quarterly dividend of $0.595 per share of common stock, payable on March 2, 2015, to shareholders of record on February 2, 2015.

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of about $14 billion, nearly 6,400 megawatts of generating capacity and about 6,400 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the Company provides retail electricity service to nearly 1.2 million Arizona homes and businesses. For more information about Pinnacle West, visit the Company’s website at pinnaclewest.com.

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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.

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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