PINNACLE WEST CAPITAL CORP 10-Q

Item 5. OTHER INFORMATION Union Matters Approximately, 1,100 APS employees are union employees represented by the International Brotherhood of Electrical Workers (“IBEW”). The collective bargaining agreement expired on April 1, 2023, and APS and IBEW have engaged the services of a federal mediator to help facilitate ongoing negotiations. APS and IBEW remain committed to continue bargaining in good faith, and the current contract remains in full force and effect while negotiations continue. Environmental Matters EPA Revised Effluent Limitation Guideline Proposal . With respect to the management of bottom-ash transport wastewater at Four Corners, on March 8, 2023 EPA issued a revised proposal for effluent limitation guidelines governing power plant wastewater. For discharges of bottom-ash transport wastewater, EPA has proposed a more stringent “zero-liquid discharge” standard. We cannot at this time predict the outcome of this regulatory proceeding or when the EPA will take final action on this proposal. Depending on the eventual outcome, the costs associated with APS’s management of bottom-ash transport wastewater could materially increase, which could affect APS’s financial position, results of operations, or cash flows. Revised Mercury and Air Toxics Standard (“MATS”) Proposal. On April 5, 2023, EPA proposed revisions to the existing MATS regulations governing emissions of toxic air pollution from existing coal-fired power plants. If finalized, the proposal would make the limits used to demonstrate compliance with MATS, filterable particulate matter, significantly more stringent (potentially by an order of magnitude) and require the use of continuous emissions monitoring systems to ensure compliance (as opposed to periodic performance testing). Regulations would take effect for existing coal-fired power plants within three years of the proposal becoming final. We cannot at this time predict the outcome of this regulatory proceeding or when the EPA will take final action on this proposal. Depending on the eventual outcome, the costs associated with APS’s 94 Table of Contents controls for filterable particulate matter could materially increase, which could affect APS’s financial position, results of operations, and cash flows. 95 Table of Contents Item 6. EXHIBITS (a) Exhibits Exhibit No. Registrant(s) Description 31.1 Pinnacle West Certificate of Jeffrey B. Guldner, Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended 31.2 Pinnacle West Certificate of Andrew Cooper, Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended 31.3 APS Certificate of Jeffrey B. Guldner, Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended 31.4 APS Certificate of Andrew Cooper, Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended 32.1* Pinnacle West Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 32.2* APS Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 101.INS Pinnacle West APS XBRL Instance Document - the instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document. 101.SCH Pinnacle West APS XBRL Taxonomy Extension Schema Document 101.CAL Pinnacle West APS XBRL Taxonomy Extension Calculation Linkbase Document 101.LAB Pinnacle West APS XBRL Taxonomy Extension Label Linkbase Document 101.PRE Pinnacle West APS XBRL Taxonomy Extension Presentation Linkbase Document 101.DEF Pinnacle West APS XBRL Taxonomy Definition Linkbase Document 104 Pinnacle West APS Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) ________________________________ *Furnished herewith as an Exhibit. 96 Table of Contents In addition, Pinnacle West and APS hereby incorporate the following Exhibits pursuant to Exchange Act Rule 12b-32 and Regulation §229.10(d) by reference to the filings set forth below: Exhibit No. Registrant(s) Description Previously Filed as Exhibit(1) Date Filed 3.1 Pinnacle West Pinnacle West Capital Corporation Bylaws, amended as of February 19, 2020 3.1 to Pinnacle West/APS February 25, 2020 Form 8-K Report, File Nos. 1-8962 and 1-4473 2/25/2020 3.2 Pinnacle West Articles of Incorporation, restated as of May 21, 2008 3.1 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File Nos. 1-8962 and 1-4473 8/7/2008 3.3 APS Articles of Incorporation, restated as of May 25, 1988 4.2 to APS’s Form S-3 Registration Nos. 33-33910 and 33-55248 by means of September 24, 1993 Form 8-K Report, File No. 1-4473 9/29/1993 3.4 APS Amendment to the Articles of Incorporation of Arizona Public Service Company, amended May 16, 2012 3.1 to Pinnacle West/APS May 22, 2012 Form 8-K Report, File Nos. 1-8962 and 1-4473 5/22/2012 3.5 APS Arizona Public Service Company Bylaws, amended as of December 16, 2008 3.4 to Pinnacle West/APS December 31, 2008 Form 10-K Report, File Nos. 1-8962 and 1-4473 2/20/2009 10.1 Pinnacle West Second Amended and Restated Five-Year Credit Agreement, dated as of April 10, 2023, among Pinnacle West, as Borrower, Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, and the lenders and other parties thereto 10.1 to Pinnacle West/APS April 10, 2023 Form 8-K Report, File Nos. 1-8962 and 1-4473 4/10/2023 10.2 Pinnacle West APS Five-Year Credit Agreement, dated as of April 10, 2023, among APS, as Borrower, Barclays Bank PLC, as Agent, Co-Sustainability Structuring Agent and Issuing Bank, and the lenders and other parties thereto 10.2 to Pinnacle West/APS April 10, 2023 Form 8-K Report, File Nos. 1-8962 and 1-4473 4/10/2023 _______________________________ (1) Reports filed under File Nos. 1-4473 and 1-8962 were filed in the office of the Securities and Exchange Commission located in Washington, D.C. 97 Table of Contents SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. PINNACLE WEST CAPITAL CORPORATION (Registrant) Dated: May 4, 2023 By: /s/ Andrew Cooper Andrew Cooper Senior Vice President and Chief Financial Officer (Principal Financial Officer and Officer Duly Authorized to sign this Report) ARIZONA PUBLIC SERVICE COMPANY (Registrant) Dated: May 4, 2023 By: /s/ Andrew Cooper Andrew Cooper Senior Vice President and Chief Financial Officer (Principal Financial Officer and Officer Duly Authorized to sign this Report) 98