Pinnacle West Receives 'AAA' Rating From Innovest For Environmental Management & Performance


PHOENIX - Pinnacle West Capital Corporation (NYSE: PNW) has been recognized as an industry leader in demonstrating superior environmental and social performance characteristics by an international investment advisory firm.

Innovest Strategic Value Advisors, Inc., of New York, assigned Pinnacle West its top rating (AAA), and ranked the Company third out of 30 electric companies listed on the Standard & Poor's (S&P) 500 for environmental performance.

“To an increasing degree, financial analysts and investors are recognizing that there is a strong, positive, and growing correlation between companies' environmental commitment and their competitiveness and financial performance,” said Frank Dixon, Managing Director of Research and Development for Innovest. “In part, our study found that since 1990 Pinnacle West has integrated a strong environmental commitment into its overall business strategy.”

Innovest develops industry sector annual reports to help investors identify companies with excellent environmental performance records. The research firm has found a positive correlation between stock price and environmental performance mainly because environmental performance turns out to be an excellent proxy for management quality, the primary determinant of stock returns. Innovest's environmental ratings (ranging from AAA to CCC) identify environmental risks, management quality and profit opportunity differentials typically not identified by traditional financial analysts.

These ratings are based on a number of environmental risk factors including site liabilities, spills and releases, regulatory compliance and emissions. Pinnacle West received top ratings for 14 of the study's 19 performance indicators. The indicators include environmental management, performance improvement and opportunity factors.

“Environmental health and safety management is one of our company’s core business values and is a strong indicator of operational excellence,” said Ed Fox, Pinnacle West Vice President of Communications, Environment and Safety. “Focusing on environmental endeavors is good for our employees, shareholders and the communities where we live and work.

“We have not - and will not -- stray from that commitment," he said.

In 1994, Pinnacle West’s subsidiary Arizona Public Service became the first electric utility in the world to endorse the 10-point Code of Conduct adopted by the Coalition for Environmentally Responsible Economies (CERES). These CERES principles require public reporting of specific environmental achievements and goals.

“Endorsing these principles is an affirmation of our commitment to the importance of environmental investment and shareholder return,” added Fox.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $6.7 billion. Through its subsidiaries, the company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. The company also develops residential, commercial and industrial real estate projects through SunCor Development Company, and has some venture capital and other investments through El Dorado Investment Company.


This press release contains forward-looking statements that involve risks and uncertainties, which include, but are not limited to, the ongoing restructuring of the electric industry; the outcome of the regulatory proceedings relating to the restructuring; regional economic and market conditions, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital; weather variations affecting customer usage; and the strength of the real estate market. These factors and the other matters discussed above may cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by the Company.

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