#1PINNACLE WEST CAPITAL CORPORATION 2022 Corporate Responsibility Report Overview April 22, 2022#22 Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend,” “assume,” “project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: the potential effects of the continued COVID-19 pandemic, including, but not limited to, demand for energy, economic growth, our employees and contractors, vaccine mandates, supply chain, expenses, capital markets, capital projects, operations and maintenance activities, uncollectable accounts, liquidity, cash flows, or other unpredictable events; our ability to manage capital expenditures and operations and maintenance costs while maintaini liability and customer service levels; variations in demand for electricity, including those due to weather seasonality, the general economy or social conditions, customer and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investments; our ability to meet renewable energy and energy efficiency mandates through our adjustor and recovery mechanisms and recover related costs; the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; current and future economic conditions in Arizona, including in real estate markets; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events, or similar occurrences; the development of new technologies which may affect electric sales or delivery; the cost of debt and equity capital and the ability to access capital markets when required; environmental, economic and other concerns surrounding coal-fired generation, including regulation of greenhouse gas emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trusts, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facility and system conditions and operating costs; the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of our counterparties, power plant participants and power plant land owners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and ACC orders. These and other factors are discussed in Risk Factors described in Part I, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K review for the fiscal year ended December 31, 2021, which you should review carefully before placing any reliance on our financial statements, disclosures or earnings outlook." PINNACLE WEST CAPITAL CORPORATION#33 Creating a Sustainable Energy Future for Arizona 66 Building a clean and sustainable future for all Arizonans means that we work to protect our natural resources, support our communities, and build trust through transparency. 99 Ann Becker VP Sustainability, APS ESG Executive Council Chair PINNACLE WEST CAPITAL CORPORATION#44 AT A GLANCE Arizona's Largest Electric Company Nevada LAS VEGAS California YUCCA KINGMAN YUMA Service Territory¹ Arizona APS Retail Electric Service Territory Major APS Power Plants Principal APS Transmission Lines Major APS Solar Power Plants BAGDAD PALO VERDE 00 REDHAWK PRESCOTT PHOENIX O WEST PHOENIX GILA BEND 1 As of December 31,2021 Utah FLAGSTAFF WINSLOW OCOTILLO SUNDANCE CASA GRANDE SAGUARO GLOBE TUCSON NOGALES HOLBROOK CHOLLA DOUGLAS Colorado FARMINGTON FOUR CORNERS New Mexico Key Facts as of Dec. 31, 2021 Consolidated assets Revenues Market cap Generating capacity owned or leased year end Customers - Current % from clean energy Nuclear plant in U.S. $22B $3.8B ~$8B ~6.3 GW 1.3M ~50% Largest PINNACLE WEST CAPITAL CORPORATION#5LO 5 Leading ESG Practices Guide Our Approach - Snapshot Environmental One of two North American electric utility to achieve CDP Leadership scores for Water and Climate¹ MSCI ESG "AA" rating² Reduced carbon by 32% since 2005 and retired over 1,000 MW of coal Social Launched new diversity, equity and inclusion strategy 44% of new hires ethnically or racially diverse Commitment to support Coal Community Transition Plan Governance 36% of independent directors gender or ethnically diverse ESG executive council Board oversight of strategy and risk 1Pinnacle West is only one of two North American electric utility companies to achieve leadership scores in both climate change and water security out of the 140-plus electric utilities that were scored through CDP's questionnaires in 2021, with nearly 12,000 companies being scored in total. 2 Report dated April 27, 2021. PINNACLE WEST CAPITAL CORPORATION#66 2021 ESG Highlights 1 ENVIRONMENTAL 2 SOCIAL 3 GOVERNANCE PINNACLE WEST CAPITAL CORPORATION#77 A Clear Plan for Clean Energy Transition-100% clean, carbon-free electricity by 2050 个个1 24% Announced seasonal operations of Four Corners beginning 2023 Progress Towards Meeting Clean Energy Commitment¹ Contracted for nearly 1,400 MWs of clean energy and storage to be in service for APS customers by 2024 2005 Charted course for healthy mix of APS-owned and third party- owned assets, to be continued through future planned RFPs Pathway 1 Since January 2020 2019 50% 2030 65% 2050 100% € PINNACLE WEST CAPITAL CORPORATION#88 Key New Energy Sources Keeping us Tracking to our Goals Tracking our 2030 Clean Energy Target ● ● ● ● ● Initiatives Solar generation Wind generation Gas as a bridge fuel Demand-side management Energy storage solutions Innovation 29% 2021 2030 16% 25% 5% 10% 15% Coal Gas 10% 6-7% Purchased Nuclear 14-19% DSM 18% Renewables** 15% *Clean energy is energy derived from zero-carbon resources; this includes grid-scale and distributed renewables, demand side management savings, nuclear and purchases of renewable energy. **Renewables include energy from wind, solar, geothermal, biomass, distributed generations and solar purchase power agreements. 33-36% Tracking our 2030 Renewable Energy Target 2021 15% *Renewable is measured in accordance with the ACC's Renewable Energy Standard as a percent of retail sales. 0 45% 2030 PINNACLE WEST CAPITAL CORPORATION#9Coal Exit Strategy - 7 Years Earlier than Originally Projected Navajo 315 MW (now retired) 2018 Cholla 387 MW 2025 2019 2031 Coal Free ¹Starting in 2023 and subject to the necessary approvals, Four Corners will move to a seasonal operating schedule that will further reduce annual carbon emissions at Four Corners by an estimated 20-25%. Remaining Four Corners 970 MW 2031¹ 2025 Original projection 2038 PINNACLE WEST CAPITAL CORPORATION#10Advancing On Path to 100% Clean Energy - Three-Year Capital Plan of $4.7B 10 $1.5B $214 $260 $263 $595 $170 2021 $1.53B $250 $340 2022-2024 as disclosed in the 2021 Annual Report on Form 10-K. $250 $510 $175 2022E $1.53B $270 $330 $210 $530 $185 2023E Total 2022-2024 $4.7B $1.65B $190 $560 $210 $500 $190 2024E Other Generation Clean Generation Transmission Distribution Other PINNACLE WEST CAPITAL CORPORATION#11Collaboration Is Integral to Our Clean Energy Commitment 11 ● ● ● Collaboration APS's new Green Power Partners Program will provide businesses with special options to reach their sustainability goals Sponsored the Electric Power Research Institute's Low- Carbon Resource Initiative Engaged in a collaborative stakeholder process to develop a Statewide Transportation Electrification Strategy and Plan. Collaborate with Municipalities to attain their renewable energy goals, energy efficiency and overall sustainability. € PINNACLE WEST CAPITAL CORPORATION#12Responsible Water Management Supports Viability of Our Communities in the Desert Southwest 12 Commitment to reduce groundwater usage ● • 2021 - 33% groundwater reduction¹ ● 2021 73% of all water consumed by APS power plants was treated effluent water Projected conservation Water Conservation of groundwater usage 2035 - 80% groundwater reduction¹ and 95% use of treated effluent water ● ¹Based on 2014 usage baseline € PINNACLE WEST CAPITAL CORPORATION