v3.25.1
Business Segments
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Business Segments Business Segments
 
Pinnacle West’s reportable business segment is our regulated electricity segment, which consists of retail and wholesale sales supplied under traditional cost-based regulation and related activities and includes electricity generation, transmission, and distribution. Our reportable segment activities are conducted through our wholly-owned subsidiary, APS. All other operating segment activities are insignificant to Pinnacle West.

For segment reporting purposes, Pinnacle West’s Chief Executive Officer performs the function of chief operating decision maker (“CODM”). Our CODM uses net income to measure an operating segment’s profitability. When assessing the performance of an operating segment, and making decisions about allocating resources, our CODM evaluates net income actual results compared to budget. Net income is also used when implementing strategic initiatives and selecting projects to meet business objectives. Our reportable segment’s revenue streams are dependent upon regulated rate recovery, which is a primary factor in how we identify operating segments.
For information on our reportable business segment’s revenues, significant expenses, net income, assets, and other reportable segment items, see the APS Condensed Consolidated Statements of Income, APS Condensed Consolidated Balance Sheets, and APS Condensed Consolidated Statements of Cash Flows. The following table reconciles our reportable segment’s revenues, significant expenses, and net income to the Pinnacle West Consolidated amounts (dollars in millions):

Three Months Ended March 31,
20252024
Regulated Electricity SegmentOther Pinnacle West ConsolidatedRegulated Electricity SegmentOther Pinnacle West Consolidated
Operating Revenues$1,032 $— $1,032 $952 $— $952 
Fuel and purchased power (380)— (380)(358)— (358)
Operations and maintenance(297)(3)(300)(254)(4)(258)
Depreciation and amortization (235)— (235)(210)— (210)
Taxes other than income taxes (59)— (59)(59)— (59)
Pension and other postretirement non-service credits, net3 — 3 12 — 12 
Allowance for equity funds used during construction13 — 13 10 — 10 
Other income and expenses, net3 11 14 4 19 23 
Interest expense and costs(79)(16)(95)(74)(13)(87)
Income Taxes3 3 6 (4)— (4)
Less: Net income attributable to noncontrolling interests(4)— (4)(4)— (4)
Net Income (Loss) $— $(5)$(5)$15 $2 $17 

The following table reconciles our reportable segment's assets to the Pinnacle West Consolidated amount (dollars in millions):
March 31, 2025December 31, 2024
Regulated Electricity SegmentOtherPinnacle West ConsolidatedRegulated Electricity SegmentOtherPinnacle West Consolidated
Total Assets$27,097 $139 $27,236 $25,988 $115 $26,103