#1PINNACLE WEST CAPITAL CORPORATION Investor Presentation June 2022 -chargepoint#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, inflation, 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 maintaining reliability and customer service levels; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), 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 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, war, acts of war, international sanctions, 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; general economic conditions, including inflation rates, monetary fluctuations and supply chain constraints; 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 trust, 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 for the fiscal year ended December 31, 2021 and in Part II, Item 1A of the Pinnacle West/APS Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, which you should review carefully before placing any reliance on our financial statements, disclosures or earnings outlook. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. In this presentation, references to net income and earnings per share (EPS) refer to amounts attributable to common shareholders. PINNACLE WEST CAPITAL CORPORATION#3THE PINNACLE WEST STORY Navigating Short-Term Challenges. Longer-Term, A Powerful Growth Story 1 Company Profile - Solid Foundation 2 3 Growth Outlook Remains Strong Customer Initiatives and ESG Leadership 4 Financial Outlook - Sets Clear Expectations 3 aps aps PINNACLE WEST CAPITAL CORPORATION#4AT A GLANCE Arizona's Largest Electric Company Service Territory¹ Nevada Utah Colorado Key Facts as of Dec. 31, 2021 Consolidated assets $22B FARMINGTON LAS VEGAS Arizona FOUR CORNERS Revenues $3.8B New Mexico KINGMAN FLAGSTAFF WINSLOW HOLBROOK CHOLLA Market cap ~$8B BAGDAD Generating capacity owned California or leased year end ~6.3 GW PRESCOTT PHOENIX PALO VERDE OCOTILLO GLOBE WEST PHOENIX SUNDANCE 00 REDHAWK CASA YUMA GILA BEND GRANDE Customers 1.3M Current % from clean energy ~50% YUCCA SAGUARO TUCSON APS Retail Electric Service Territory Major APS Power Plants Nuclear plant in U.S. Largest DOUGLAS NOGALES Principal APS Transmission Lines Major APS Solar Power Plants As of December 31,2021 PINNACLE WEST CAPITAL CORPORATION#5Attractive Customer Mix and Shifting Generation Profile Retail Sales Mix¹ Other >1% - Energy Mix Will Shift Going Forward¹ Demand Side Management 15% Gas 29% Commercial & Industrial 49% Residential 50% Purchased 5% Renewable 10% Nuclear 25% 1 As of December 31, 2021. Coal 16%#66 THE PINNACLE WEST STORY Navigating Short-Term Challenges. Longer-Term, A Powerful Growth Story 1 Company Profile - Solid Foundation 2 3 4 Financial Outlook Growth Outlook Remains Strong Customer Initiatives and ESG Leadership - Sets Clear Expectations aps aps PINNACLE WEST CAPITAL CORPORATION#7Why We Are Optimistic About the Future Key Reasons 1 Solid long-term performance record 2 N Robust economic growth in Arizona and our service territory 3 A clear plan for a clean energy transition 4 Ability to navigate the regulatory environment over time 5 Strong commitment to execute strategy PINNACLE WEST CAPITAL CORPORATION#8Last 10 Years: Strong Performance Track Record 8 $3.45 $2.18 EPS and Annualized Dividends Per Share Earnings per share 5% CAGR Dividends per share 5% CAGR $5.47 $3.40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 PINNACLE WEST CAPITAL CORPORATION#9Record of Delivering On Our Promise to Provide Affordable Energy 6 Increase in Residential Electricity Demand (MWH) Decrease in Average Residential Customer Bill Jan. 2018 to Nov. 2021 +9.0% -5.0% Jan. 2018 to Dec. 2021 PINNACLE WEST CAPITAL CORPORATION#1010 Arizona remains among the fastest growing states in the U.S. Annual Employment Growth Last Three Years¹ Steady Housing Growth² Single Family & Multifamily Housing Permits Maricopa County (1)% National 1 2019-2021 1% 8,425 Arizona 18% CAGR 43,378 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 2 Maricopa County population 4.5M, 62% of state population PINNACLE WEST CAPITAL CORPORATION#11Best-in-class service territory supports high tech growth and economic development Our Approach: Focus on Four Main Areas • • Business attraction and expansion Community development . Entrepreneurial support • Infrastructure support 11 First Quarter 2022 • • Supports Influx of Manufacturing and Data Centers - Examples Taiwan Semiconductor Began building $12B factory Chang Chun Petrochemical Building 250k sq ft facility Williams-Sonoma Leased 1.2M sq ft facility Nestle USA Building 625k sq ft facility KORE Power Building 1M sq facility Kohler Co. Building 1M sq ft facility Data centers are projected to create up to 640 MW of capacity needs by 2035 PINNACLE WEST CAPITAL CORPORATION#1212 We Will Pursue Improvements in the Regulatory Environment ✓ Appealing last rate case to clarify the prudency standard in Arizona ✓ Filing a new rate case to reduce regulatory lag and improve the ROE ✓ Work with stakeholders on common issues including reducing regulatory lag and improving customer experience ✓ Continue to find alignment with the regulators ✓ Focus on customer affordability PINNACLE WEST CAPITAL CORPORATION#1313 We Have Embraced a Customer-Centric Strategy Deliver exceptional customer service Make intelligent and clean investments to support a growing Arizona Customer Focused Ensure superior reliability and operating performance, anchored in safety Preserve strong financial health while sustaining customer affordability PINNACLE WEST CAPITAL CORPORATION#14THE PINNACLE WEST STORY Navigating Short-Term Challenges. Longer-Term, A Powerful Growth Story 1 Company Profile - Solid Foundation 2 3 Growth Outlook Remains Strong Customer Initiatives and ESG Leadership 4 Financial Outlook - Sets Clear Expectations 14 aps aps PINNACLE WEST CAPITAL CORPORATION#15A clear plan for clean energy transition. Progress Towards Meeting Clean Energy Commitment¹ Announced seasonal operations of Four Corners beginning 2023 Contracted for nearly 1600 MW of clean energy and storage to be in service for APS customers by end of 2024 Charted course for healthy mix of APS-owned and third party- owned assets, to be continued through future planned RFPs Pathway 2005 2019 2030 24% 50% 65% 15 1 Since January 2020 2050 100% PINNACLE WEST CAPITAL CORPORATION#16Coal Exit Strategy - 7 Years Earlier than Originally Projected 16 2018 Navajo 315 MW (now retired) 2019 Cholla 387 MW 2025 2025 Remaining Four Corners 970 MW 20311 2031 Coal Free Original projection 2038 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%. PINNACLE WEST CAPITAL CORPORATION#1717 Coal Exit and Expiring Purchase Contracts Will Create a 6,000 MW Supply-Demand Gap by 2035 Peak Capacity (MW) 12,000 10,000 Total Load Requirements 8,000 Existing / Signed Contracts 6,000 4,000 2,000 0 2020 2023 Existing Owned Resources 2026 2029 2032 2035 1 Will need more additions than 6,000 MW due to new resources being paired to meet reliability requirements (i.e., solar with storage requires 100 MW solar plus 100 MW of storage). 6,000 MW1 Closing the gap - opportunity PINNACLE WEST CAPITAL CORPORATION#1818 Pilot Project Exploring Hydrogen as Potential Solution for Long Duration Storage Profile of Project Possible Scenario for Palo Verde Nuclear Plant Collaborators • Palo Verde nuclear plant and Idaho National Laboratory Pilot Program . Examine long-term cost effectiveness of hydrogen production at utility scale Goal • Use of hydrogen for long term storage of energy 100% Plant Output Power to hydrogen - stored Power from storage to grid Power to grid Power to grid Mid-day Lower demand on grid Late afternoon/evening Peak demand PINNACLE WEST CAPITAL CORPORATION#1919 Key New Energy Sources to Achieve Goals Initiatives Resource Mix Change¹ Today 2035 • Solar generation Coal 16% 0% Wind generation Gas 29% 6%-17% • Gas as a bridge fuel • Demand-side management Nuclear 25% 16% • Energy storage solutions Purchased 5% 11% • Innovation Renewable/ 25% 56%-67% DSM As of December 31,2021 PINNACLE WEST CAPITAL CORPORATION#20Bringing the Residential Customer into the Advanced Economy 20 • • Initiatives Award-winning program to promote installation of advanced smart thermostats reduces demand during peak load window Super off-peak electric vehicle charging rate equivalent to ~30¢ per gallon gasoline Potential Impact Demand Savings During Peak Afternoon Window 300-500 MW VOLT 100-150 MW Today Future PINNACLE WEST CAPITAL CORPORATION#2121 Customer Driven Initiatives Underway - A Few Examples Take Charge AZ Customer Advisory Board Energy Efficiency Pilot program to encourage electric vehicle adoption by installing charging stations. Installed more than 250 chargers in 2021 • Gathers direct insight from residential customers • Identify customer concerns to shape solutions • Demand response programs to reward shift of energy usage to lower-cost times - smart thermostats - residential battery systems -grid-interactive water heaters PINNACLE WEST CAPITAL CORPORATION#2222 Helping our Communities Thrive Creates Lasting Benefits for our Company Community- $12.9 Million Minded Employees 24/7 Customer Customer Assistance Heat Relief Strategy Care Center Arizona Teachers K-12 08:0 Come in WE ARE Open We donated more than $12.9 million in 2021 Employees pledged $2 million to United Way and spent an estimated 91,000 hours volunteering Answered 76% of more than 1 million calls within 30 seconds or less Provide qualified limited income customers a 25% discount on their bill each month Partnered with local nonprofits to expand assistance to vulnerable individuals during Arizona's hot summer months Gave at total of $250,000 to 500 Arizona K-12 teachers to purchase classroom supplies PINNACLE WEST CAPITAL CORPORATION#2323 Enhanced Diversity, Equity and Inclusion Unites Our Team Employee Diversity in 2021 New Hires in 2021 Female Officers In 2021 • 33% are ethnically • 44% were ethnically or racially diverse • 40% of all officers are female • • or racially diverse 25% are female 16% are veterans • 37% were female 10% were veterans First female Chief Nuclear Officer at Palo Verde DEI Strategy In 2021, we launched our DEI Strategy. Key activities in 2021: . Four-part leadership education series for all officers Company-wide Inclusion Calendar • APS was honored with the 2021 Inclusive Workplace Award PINNACLE WEST CAPITAL CORPORATION#24Our Strong Governance Enables Successful Execution 24 Board Independence • Ten of our eleven Board members are independent . Robust Board refreshment, with director retirement policy • . Board Oversight EUR USD 2,5386 3,7762 2,3574 MARGIN 59 25 USD © Feto Mirth BUY 36538 SELL 45762 Order volume 1873 952 0000 Defined oversight of environmental, social and governance practices by the Corporate Governance and Public Responsibility Committee Robust management succession planning Board oversight of strategy and risk PINNACLE WEST CAPITAL CORPORATION#2525 Diverse Board Representation . • 36% of independent directors gender or ethnically diverse Diversity in skills, knowledge and expertise • Average tenure will be 8.01 years 1 As of May 18, 2022 PINNACLE WEST CAPITAL CORPORATION#26THE PINNACLE WEST STORY Navigating Short-Term Challenges. Longer-Term, A Powerful Growth Story 1 Company Profile - Solid Foundation 2 3 Growth Outlook Remains Strong Customer Initiatives and ESG Leadership 4 Financial Outlook - Sets Clear Expectations 26 aps aps PINNACLE WEST CAPITAL CORPORATION#2727 2022 EPS guidance Adjusted gross margin (operating revenues, net of fuel and Key Factors and Assumptions as of May 4, 2022 purchased power expenses, x/RES,DSM,CCT) . Retail customer growth about 1.5-2.5% • Weather-normalized retail electricity sales volume 1.5-2.5% higher compared to prior year о 。 Includes 0.5-1.5% contribution to sales growth of new large manufacturing facilities and several large data centers 2022 $2.52 $2.55 billion • Assumes normal weather for full-year forecast Adjusted operating and maintenance (O&M X/RES,DSM, CCT) Other operating expenses (depreciation and amortization, and taxes other than income taxes) Other income (pension and other post-retirement non-service credits, other income and other expense) Interest expense, net of allowance for borrowed and equity funds used during construction (Total AFUDC ~$64 million) Net income attributable to noncontrolling interests Effective tax rate Average diluted common shares outstanding EPS Guidance $820 $840 million $987 $998 million - $62 $66 million $214 $232 million - $17 million 13.5% 113.5 million $3.90 $4.10 PINNACLE WEST CAPITAL CORPORATION#2828 What Investors Can Expect From Us Moving Forward 1 Strong EPS growth off 2022 2 Managing capital plan to support customer growth, reliability and clean transition 3 Steady rate base growth 4 Limiting equity dilution 5 Declining O&M per kWh 6 Dividend growth commitment 7 Optimize our balance sheet in support of investment PINNACLE WEST CAPITAL CORPORATION#29Projected 5-7% EPS Growth Off 20221 Long-Term Outlook 5-7% EPS CAGR Long-Term Upside Potential Remainder of SCRs in rates Acceleration of clean energy transition Economic Development driving sales and customer growth Continued cost management Reduction of regulatory lag 1 Amounts provided are the Company's current 5-year compound annual growth rate projections 29 PINNACLE WEST CAPITAL CORPORATION#3030 Managed capital plan to support customer growth, reliability, and clean transition $1.65B $1.50B $1.53B $1.53B $190 $214 $250 $270 Other Generation $260 $560 $340 $330 Clean Generation $263 $250 $210 $210 Transmission $595 $510 $530 Distribution $500 ■ Other $170 $175 2021 2022E $185 2023E $190 2024E 2022-2024 as disclosed in the First Quarter 2022 Form 10-Q. Total 2022-2024 $4.7B PINNACLE WEST CAPITAL CORPORATION#3131 Steady rate base growth APS Rate Base Growth Guidance Year-End $10.9 $1.8 $9.1 Total Approved Rate Base 5-6% Annual ACC FERC $13.6 Rate Effective 12/01/2021 6/1/2021 $2.4 FERC Date Test Year Ended 06/30/20191 12/31/2020 $11.2 ACC Rate Base $8.6B $1.8B Equity Layer 54.7% 51.6% Allowed ROE 8.7% 10.75% 2020 2021 2022 2023 2024 Projected Rate base $ in billions, rounded 1 Adjusted to include post test-year plant in service through 06/30/2020 PINNACLE WEST CAPITAL CORPORATION#32No plans to issue equity before end of next rate case $5.0 $4.5 Approx. $1 billion $4.0 Forecasted sources of capital to fund investments through 2024 $200-$300 million $400-$500 million PNW Equity/ Alternatives $4.7 billion PNW Debt² $3.5 Approx. $3 billion $3.0 APS Debt² $2.5 $2.0 $1.5 $1.0 $0.5 $0.0 Cash from Operations1 Total Capital Investment 32 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. PINNACLE WEST CAPITAL CORPORATION#33Our goal is flat total O&M and declining O&M per MWh 33 $29/MWh 2021 O&M per MWh 2022 VERSALIFT 1 Total O&M amounts exclude RES/DSM, and include planned outage amounts of $54M in 2021 and $40M-$50M in 2022. Total O&M1 2021: $865M 2022: $820M-$840M 2023 2024 PINNACLE WEST CAPITAL CORPORATION#3434 Continue Our Track Record of Consistent Dividend Growth1 $2.18 Indicated Annualized Dividend 5% CAGR $3.40 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 1 Future dividends are subject to declaration at Board of Directors' discretion. • Dividend Targets Committed to long-term. dividend growth • Attractive dividend yield . Managing long term dividend payout ratio to 65-75% PINNACLE WEST CAPITAL CORPORATION#3535 Strong balance sheet with attractive long-term debt maturity profile¹ $M $1,200 $1,000 $800 $600 $400 $200 APS Long-Term Debt PNW Long-Term Debt $0 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 As of March 31, 2022 1 Does not include debt at Bright Canyon Energy. PINNACLE WEST CAPITAL CORPORATION#3636 Our credit ratings support growth opportunities Corporate Ratings Senior Unsecured Ratings Short-Term Ratings Outlook APS¹ Moody's A3 A3 P-2 Negative S&P BBB+ BBB+ A-2 Negative Fitch BBB+ A- F2 Negative Pinnacle West¹ Moody's Baal Baal P-2 Negative S&P BBB+ BBB A-2 Negative Fitch BBB+ BBB+ F2 Negative 1 We are disclosing credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds. Ratings are as of May 4, 2022. . Balance Sheet Targets Strong investment grade credit ratings APS equity layer >50% FFO/Debt range of 16%-18% PINNACLE WEST CAPITAL CORPORATION#3737 Attractive Financial Profile Beyond 20221 Management Actions EPS Growth Dividend Yield Deferring equity issuance Reducing O&M Optimizing balance sheet 5-7% Target ~5% Committed to growing dividend Total Shareholder Return 1 Amounts provided are the Company's current projections 10-12% PINNACLE WEST CAPITAL CORPORATION#3838 IN SUMMARY We are Optimistic for the Future: The Growth Story Remains Intact • • Building on proven long-term, 10-year track record Working to improve regulatory environment over time Service territory is among the fastest growing in the U.S. Executing on clear growth strategy including transition to clean energy Attractive financial profile building from 2022 PINNACLE WEST CAPITAL CORPORATION#39PINNACLE WEST CAPITAL CORPORATION APPENDIX -chargepoint#40ESG Leadership - 2021 Recognitions CDP DISCLOSURE INSIGHT ACTION A- Score for Climate Change and Water Security MSCI ESG RATINGS AA CCC B BB BBB A AA AAA MSCI Upgrades Pinnacle West's ESG Rating to AA¹ Named to the annual ranking of the world's Top 100 Green Utilities by Energy Intelligence Training Training Magazine 2021 Top 100 Learning and Development Organization US Women in Nuclear DIVERSITY LEADERSHIP ALLIANCE 2021 Inclusive Workplace Award US Women in Nuclear Leadership Award 1 As of April 27, 2021 40 PINNACLE WEST CAPITAL CORPORATION