v3.26.1
Consolidation and Nature of Operations
 6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidation and Nature of Operations Consolidation and Nature of Operations
The unaudited condensed consolidated financial statements include the accounts of Pinnacle West and our subsidiaries, including APS, El Dorado, and PNW Power. Intercompany accounts and transactions between the consolidated companies have been eliminated. The unaudited Condensed Consolidated Financial Statements for Pinnacle West include the accounts of Pinnacle West and its subsidiaries as well as a VIE related to the Captive. The unaudited Condensed Consolidated Financial Statements for APS include the accounts of APS and the Palo Verde VIEs. In September 2025, APS purchased two of the three leased interests, resulting in the termination of the related lease agreements and discontinuation of VIE consolidation for those leases. As of June 30, 2026, one Palo Verde VIE lease arrangement remains active. See Note 9 for further discussion on Pinnacle West’s VIEs and APS’s remaining VIE. El Dorado is a wholly-owned subsidiary that invests in energy-related and Arizona community-based ventures. PNW Power is a wholly-owned subsidiary that holds certain investments in wind and transmission joint venture projects. Our accounting records are maintained in accordance with GAAP. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Amounts reported in our unaudited Condensed Consolidated Statements of Income are not necessarily indicative of amounts expected for the respective annual periods, due to the effects of seasonal temperature variations on energy consumption, timing of maintenance on electric generating units, and other factors.
Our condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments except as otherwise disclosed in the notes) that we believe are necessary for the fair presentation of our financial position, results of operations, and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in conformity with GAAP have been condensed or omitted, although we believe that the disclosures provided are adequate to make the interim information presented not misleading. The accompanying condensed consolidated financial statements and these notes should be read in conjunction with the audited consolidated financial statements and notes included in our 2025 Form 10-K.
Supplemental Cash Flow Information
     
The following table summarizes supplemental Pinnacle West cash flow information (dollars in thousands):
Six Months Ended June 30,
20262025
Cash paid during the period for:
Income taxes, net of refunds/credits$8,112 $7,743 
Interest, net of amounts capitalized223,625 189,041 
Significant non-cash investing and financing activities:
Accrued capital expenditures291,902 312,762 
Dividends accrued but not yet paid110,284 106,869 

The following table summarizes supplemental APS cash flow information (dollars in thousands):
Six Months Ended June 30,
20262025
Cash paid during the period for:
Income taxes, net of refunds/credits$10,260 $10,369 
Interest, net of amounts capitalized177,122 158,073 
Significant non-cash investing and financing activities:
Accrued capital expenditures291,902 312,762 
Dividends accrued but not yet paid110,600 106,900