Even with increasing customer efficiencies, an aggressive demand-side management program and high performance from its existing power plants, Pinnacle West Capital Corp. (NYSE: PNW) will need to expand its electrical system by more than 50 percent over the next 12 years to meet Arizona’s future energy needs, Chairman Bill Post told shareholders at the Company’s Annual Meeting held today in Phoenix.
Post said that reliable, affordable electric power is the key energy cornerstone in a dynamic, modern economy. “The tie between growth in the economy and growth in dependable electricity is inarguable and mutually enabling. Compared to any other energy source, electricity is, by far, the greatest value. In the last 20 years, APS’ actual electric prices have gone up 10 percent. Inflation was up 82 percent and, by comparison, natural gas has increased 146 percent, gasoline has grown 292 percent, and oil has risen 695 percent.”
“As vital as electricity has been in Arizona, it will likely be more so in the future,” Post added. “Our principal subsidiary, Arizona Public Service (APS), will add customers at or near the fastest rate of any utility in the country. As a result, we will invest $10 billion in electric infrastructure over the next 10 years to provide the basic energy needs of Arizona.”
However, Post said the specifics of how the Company builds and pays for this future are key pieces of the puzzle that must be solved soon, especially given that Arizona’s growth means APS faces a need for new base load energy capacity within the next five to eight years.
A complete text of Post’s speech is available at the Company’s web site: www.pinnaclewest.com/presentations.
At the business portion of the annual meeting, Pinnacle West shareholders re-elected 12 individuals to the Company’s Board of Directors for one-year terms (the year they first were elected to the Board is in parentheses):
Edward N. Basha, Jr., Chairman of the Board and CEO of Bashas’ supermarket chain (1999); Susan Clark-Johnson, President, Gannett Newspaper Division, Gannett Co. (2008); Michael L. Gallagher, Attorney-at-Law and Chairman Emeritus with Gallagher & Kennedy, P.A. (1999); Pamela Grant, a civic leader and former President of Tablescapes Inc., party supply rentals (1985); Roy A. Herberger, Jr., President Emeritus of Thunderbird School of Global Management (1992); William S. Jamieson, President of Micah Institute of Asheville, N.C. (1991); Humberto S. Lopez, President of HSL Properties, Inc., a real estate development and investment firm (1995); Kathryn L. Munro, Principal of BridgeWest LLC, an investment company (2000); Bruce J. Nordstrom, President of Nordstrom and Associates, PC, a certified public accounting firm (2000); W. Douglas Parker, Chairman of the Board and CEO of US Airways Group (2007); William J. Post, Chairman of the Board and CEO of Pinnacle West Capital Corp. (1997); and William L. Stewart, former President and CEO of Pinnacle West Energy Corp. (2001).
In other proposals, shareholders approved an amendment to the Company’s Articles of Incorporation to provide for a majority shareholder vote to amend the Articles of Incorporation. Previously, a two-thirds vote was required to approve certain actions. Shareholders also ratified the selection of Deloitte & Touche LLP as the Company’s independent auditors for the 2008 fiscal year.
Based in Phoenix, Pinnacle West has consolidated assets of about $11 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. It also develops residential, commercial and industrial real estate projects.
Alan Bunnell, 602-250-3376
Rebecca Hickman, 602-250-5668
Lisa Malagon, 602-250-5671