Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support for their commercial paper programs, to refinance indebtedness, and for other general corporate purposes.

As of June 30, 2026, Pinnacle West had a $300 million revolving credit facility that matures on February 18, 2031. Pinnacle West has the option to increase the amount of the facility by $100 million to a total of $400 million, upon the satisfaction of certain conditions and with the consent of the lenders. Interest rates are based on Pinnacle West’s senior unsecured debt credit ratings. The facility is available to support Pinnacle West’s general corporate purposes, including support for Pinnacle West’s $300 million commercial paper program, bank borrowings, and issuances of letters of credit. As of June 30, 2026, Pinnacle West had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under its credit facility, and $104 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on June 30, 2026 was 3.85%.

Pinnacle West has an outstanding 364-day $175 million term loan facility that matures on December 3, 2026. Borrowings under the facility bear interest at SOFR plus 0.80% per annum. On December 3, 2025, Pinnacle West drew the full amount of $175 million.

On June 5, 2026, Pinnacle West issued $500 million of 4.65% senior unsecured notes that mature June 1, 2029. The net proceeds from the issuance were used to repay $350 million of floating rate senior unsecured notes that were due to mature June 10, 2026, to pay down $50 million of short-term indebtedness consisting of commercial paper, and for general corporate purposes.

As of June 30, 2026, APS had a $1.7 billion revolving credit facility that matures on February 18, 2031. APS has the option to increase the amount of the facility by $400 million to a total of $2.1 billion, upon the satisfaction of certain conditions and with the consent of the lenders. Interest rates are based on APS’s senior unsecured debt credit ratings. The facility is available to support APS’s general corporate purposes, including support for APS’s $1.5 billion commercial paper program, bank borrowings, and issuances of letters of credit. As of June 30, 2026, APS had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under the credit facility, and $540 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on June 30, 2026 was 3.92%.

On March 10, 2026, APS issued $600 million of 5.10% senior unsecured notes that mature March 15, 2036. The net proceeds from the issuances were used to repay short-term indebtedness consisting of commercial paper and for general corporate purposes.

On June 5, 2026, Pinnacle West contributed $100 million into APS in the form of an equity infusion. APS used this contribution to pay down short-term indebtedness consisting of commercial paper.

The ACC has authorized a limit on yearly equity infusions into APS equal to 2.5% of APS’s total assets each calendar year on a three-year rolling average basis, subject to APS’s equity ratio remaining below the most recently approved rate case capital structure plus 50 basis points. On July 31, 2026, APS submitted an application to the ACC requesting to increase the long-term debt limit from $9.5 billion to $12 billion. APS cannot predict the outcome of this matter.

Our long-term debt fair value estimates are classified within Level 2 of the fair value hierarchy. The following table presents the estimated fair value of our long-term debt, including current maturities (dollars in thousands):


	As of June 30, 2026				As of December 31, 2025
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Pinnacle West	$	1,815,466	$	1,937,539	$	1,665,736	$	1,731,388
APS	8,735,342		7,943,535		8,139,940		7,433,142
Total	$	10,550,808	$	9,881,074	$	9,805,676	$	9,164,530