Pinnacle West

“we're closely monitoring progress of Transwestern's Southwest Desert Pipeline expansion, which has recently been upsized from 42 to 48 inches due to strong regional demand.”

Transwestern's upsized Southwest Desert Pipeline expansion is critical gas-supply infrastructure for Pinnacle West's planned generation growth.

“So Moody's is really the limiting constraint given their downward the threshold is 14%.”

Moody's 14% FFO-to-debt downgrade threshold is the binding credit-metric constraint shaping Pinnacle West's financing plan.

“In Arizona, TSMC continues to expand their footprint with its second fab moving to full production in 2027, a third fab under construction already, a fourth fab and advanced packaging facility in early development and 900 additional acres recently acquired for future expansion and growth.”

TSMC's ongoing multi-fab Arizona buildout is a major driver of Pinnacle West's large-load demand growth and grid investment.

“Meanwhile, Amkor Technology broke ground on a $7 billion advanced semiconductor packaging and testing facility, which is an increased investment of $5 billion over their original plans.”

Amkor's expanded $7B Arizona packaging/testing facility is part of PNW's committed large-load demand pipeline, signaling continued semiconductor buildout in its service territory.

“Taiwan Semiconductor reaffirmed its commitment to Arizona, accelerating production of 2-nanometer wafers and advanced technologies. They also announced plans to acquire a second location in Phoenix to support their vision for a stand-alone giga-fab cluster.”

TSMC is a committed extra-large load customer of Pinnacle West; its Arizona fab expansion and second Phoenix site drive PNW's data-center/manufacturing demand growth.

“SAI became profitable over the last year. It's an electric switchgear company actually serves the data center market, among others.”

Pinnacle West holds a minority equity stake in SAI through its El Dorado nonutility investment arm; SAI's swing to profitability, driven by data-center-market demand, produced a one-time equity-method gain this quarter.

“Earlier today, we announced a project with Transwestern Pipeline Company to support the Desert Southwest pipeline expansion. The new pipeline will help maintain year-round regional energy reliability by expanding transport capacity of natural gas from the Permian Basin to Arizona, enabling new gas generation infrastructure to be built in support of our customers into the next decade and beyond.”

Pinnacle West signed as anchor shipper on Transwestern's Desert Southwest pipeline expansion, securing long-term natural gas supply from the Permian Basin to support new Arizona gas generation.

“TSMC announced earlier this month that it plans to accelerate production time lines for some planned facilities by several quarters, and we're developing accelerated construction schedules now to meet their needs.”

TSMC is accelerating build-out of its Arizona facilities, prompting Pinnacle West to speed up construction of the power infrastructure needed to serve that demand, a sign of continued large-manufacturing load growth.

“as we work with TSMC, Amcor, and frankly a myriad of other recent economic development opportunities”

Amcor is named alongside TSMC as one of the large economic-development customers Pinnacle West is coordinating with to size its next resource procurement RFP.

“Mayo Clinic’s announcement of a nearly $2 billion investment in their Phoenix Healthcare Hospital Campus, the clinic’s largest investment to-date”

Mayo Clinic announced a nearly $2 billion expansion of its Phoenix hospital campus, its largest investment to date, cited as part of the diversified growth fueling Pinnacle West's service territory.

“the additional $100 billion investment by Taiwan Semiconductor Manufacturing Company, beyond their original $65 billion investment”

TSMC nearly tripled its planned Arizona investment to $165 billion total, now building three fabrication centers plus two advanced packaging facilities and an R&D park, a major driver of Pinnacle West's high-load-factor C&I sales growth.

“Step one was really for us to begin a formal collaboration with some of our utility partners in the state, Salt River Project and Tucson Electric, and begin assessing where locations may be suitable for new nuclear”

APS is formally collaborating with fellow Arizona utility Tucson Electric to assess potential new nuclear generation sites.