Pinnacle West Capital Corporation
PNW Stock Oct 10, 2008 28.94   
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Key Issues

A Sustainable Energy Future
Providing a reliable energy future that addresses environmental constraints is our key sustainability issue. And in that context, our rapid growth presents the central sustainability challenge and opportunity for our company in the coming decade and beyond.  

Arizona is the fastest growing state in the nation and APS has been adding customers at three times the national average for electric utilities, with no signs of slowing. Each year, APS installs 40,000 new electric meters and serves an additional 100,000 customers — the equivalent of adding a medium-sized city to its service territory. The energy used by our customers is growing at about the same rate, as increases in home size, more appliances and other electrical equipment increases the amount of energy customers need, even with increasing efficiency and conservation efforts.

As shown in the chart below, we anticipate that both our electric demand and number of customers will about double over the next 20 years. This will require significant new power generation capacity as well as other infrastructure including transmission and distribution lines and substations. This tremendous growth poses quite a challenge as we work to ensure a sustainable energy future for our customers, balancing costs, rates, reliability, risks, environmental impacts and other issues. Many of these challenges, and our response, are discussed in this PNW Corporate Responsibility Report. Additional discussion on this issues is found in our PNW Annual Report and other reports found on our PNW Web page.

By 2025, APS will be nearly twice the Electric Company we are today

 

Pinnacle West believes that a sustainable energy future includes the following components:

  • Providing cost-effective energy to our customers over the long term
  • Effective fuel mix, including renewable energy, conventional fuels - used more efficiently (e.g. clean coal - IGCC, hydro gasification and natural gas), and nuclear power.
  • Highly-efficient end users who incorporate energy efficiency and sound energy use into their daily lives
  • An educated public
  • Robust consumer choice
  • Optimal use of resources to protect the environment and ensure sustainable fuel sources
     

While all of the sustainability issues discussed in this report are important to Pinnacle West, some areas have particular importance with respect to our key issue of balancing growth and the creation of a sustainable energy future. These issues are discussed in greater depth in our report, and include:

  1. Renewable Energy
  2. Technology Innovation & Future Fuels (e.g. hydrogen, synthetic natural gas, biofuels)

 

 
 

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