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Increasingly, companies are being valued on more than what they produce.
Successful enterprises, by their nature, make good products and provide their customers with good service. However, the companies that are judged most favorably by the financial community are those that embrace corporate responsibility as a key component in creating shareholder value.
At Pinnacle West and our family of companies, we recognize and stress the importance of the “traditional” aspects of shareholder value – namely operational and financial excellence. But we also realize areas such as customer satisfaction, social and environmental performance, business ethics and safety are equally important.
Our customer base is undergoing tremendous growth — a pace three times the national average. While this growth puts great demands on our operations, it has made us a better operating, more efficient company.
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In 1999, each employee served about 199 customers. Today that number is about 225 customers per employee.
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In the most recent J.D. Power residential and business customer satisfaction surveys, APS – our electric utility – ranked in the top 10 percent nationally, and first among investor-owned utilities in the West, in overall customer satisfaction.
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In 1996, the average APS customer experienced 1.5 electricity outages in a year. In 2004, that number decreased to about one outage – a 33 percent improvement.
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For the third time in as many studies, we earned the top rating – AAA – from Innovest Strategic Value Advisors, for our environmental performance.
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For the fourth consecutive year, we decreased our number of preventable recordable injuries.
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Last year, employees contributed more than 127,000 hours for more than 200 charitable causes while serving on the boards of some of the most important organizations in the state. In 2004, our company and its employees gave more than $3.3 million through our annual United Way campaign and together raised more than $6.5 million dollars for charitable organizations and social service agencies.
These are the kind of accomplishments that are valued not only by customers, employees and the communities we serve, but also by Wall Street. In 2004, Innovest Strategic Advisors ranked Pinnacle West as the top utility in its Intangible Value Assessment (IVA). The IVA is designed to uncover investment value potential by measuring companies in areas such as corporate governance, community outreach and employee relations.
While we are proud of where we are as a company, we will not rest on past accomplishments, nor will the growth we are experiencing allow us to become complacent. We understand that in order to be successful in the future, we must continue on a path of continuous improvement and maintain a rigorous focus on doing the right thing.
That means taking care of our customers, taking care of the environment and taking care of our employees.
Thank you for your interest in this report and our company.
Sincerely,
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Jack E. Davis
President
Pinnacle West Capital Corporation |
Edward Z. Fox
Vice President, EHS
Arizona Public Service
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Jack E. Davis
President & Chief Operating Officer of Pinnacle West Capital Corporation; President & Chief Executive Officer of Arizona Public Service Company
Edward Z. Fox
Vice President, Communications, Environment & Safety, Arizona Public Service Company
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