Achieved 2025 earnings of $5.05 per share, landing in the upper half of guidance despite a $0.71 year-over-year headwind from milder weather compared to the record heat of 2024.
Capitalized on Arizona’s industrial expansion, specifically citing TSMC’s multi-fab development and a 900-acre land acquisition as primary drivers for infrastructure requirements.
Managed robust 5% weather-normalized sales growth in 2025, fueled by a 7.5% increase in commercial and industrial (C&I) demand and the highest residential meter installations in 20 years.
Maintained operational excellence with Palo Verde nuclear plant operating at 100% summertime capacity factor and achieving top-quartile residential customer satisfaction scores.
Executed a disciplined cost-management strategy that delivered a 3.3% year-over-year decrease in O&M per megawatt-hour, aiming to offset inflationary pressures and regulatory lag.
Advanced the ‘growth pays for growth’ strategy by proposing new high-load factor tariffs to ensure large industrial customers contribute appropriately to grid expansion costs.
Reiterated 2026 earnings guidance of $4.55 to $4.75 per share, assuming a return to normal weather patterns and continued execution of the grid expansion plan.
Projected long-term sales growth of 5% to 7% through 2030, supported by 4.5 gigawatts of committed large-load demand and an additional 20-gigawatt uncommitted queue.
Anticipates a mid-2026 filing of an updated 15-year Integrated Resource Plan (IRP) to align resource procurement with accelerating semiconductor and data center ramp schedules.
Targets 7% to 9% rate base growth through 2028, with 2026 equity needs largely derisked through nearly $500 million in already priced financing.
Focuses on securing a formula rate construct in the pending rate case to reduce regulatory lag and create a more linear earnings trajectory starting in 2027.
The pending rate case remains on track with hearings scheduled for May 2025, focusing on cost allocation and the implementation of a formula rate mechanism.
Expanded revolving credit capacity by $550 million and extended facilities to 2031 to ensure liquidity for large-scale generation and transmission projects.
Noted the discontinuation of certain legacy DSM programs by the commission, which will result in offsetting decreases to both gross margin and O&M expenses in 2026.
Maintained HoldCo debt at 17% of total debt, with a long-term target in the mid-teens to preserve credit metric cushions above the 14% FFO-to-debt threshold.
