Please review our note on forward-looking statements.

A Path Forward

In a year that brought challenges few had imagined, Pinnacle West and its primary subsidiary Arizona Public Service (APS) continued to advance goals of clean energy innovation, improved collaboration with stakeholders, a renewed commitment to customers, strong financial performance and a brighter energy future for Arizona.

The year 2020 will be remembered as a time of upheaval. The COVID-19 virus claimed hundreds of thousands of victims in the United States and changed all our lives. From the most difficult circumstances can come strength and commitment. Our more than 6,000 employees demonstrated their skill, dedication and resilience serving our customers and powering an Arizona economy that remains robust despite the pandemic’s challenges.

APS’s customer growth increased 2.3 percent over the prior year, making the company’s service territory among the fastest growing in the nation.

Hotter-than-normal weather, robust customer growth and disciplined cost management led to net income of $550.6 million, or $4.87 per share, in 2020, surpassing our 2019 results of $538.3 million, or $4.77 per share.

We set our course toward providing customers with 100 percent clean energy by 2050 and made steady progress in our first year.

In 2020, We secured more than 400 megawatts of capacity and clean energy resources, including 200 megawatts of wind and 75 megawatts of demand response capability.

Annual dividends

INDICATED
ANNUAL DIVIDEND*
% INCREASE
(year over year)
2020 $3.32 6.1%
2019 $3.13 6.1%
2018 $2.95 6.1%
2017 $2.78 6.1%
2016 $2.62 4.8%
*Annual dividends are reviewed and approved at October board meeting

Reliability Our Customers Count On

The average APS customer in 2020 experienced less than one power outage (0.76) and faced fewer total minutes of interrupted service (70.1 minutes) than industry averages.

Even with the extreme challenges of 2020, the people of our company responded to the call and continued to strengthen a foundation of operational excellence, improving customer experience and strong financial performance.