Hearing - E-01345A-25-0105 - Arizona Public Service Company - May 20, 2026

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Arizona Corporation Commission 7h 5m 8 agenda items transcribed 1 day ago official recording ↗

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What procedural matters and introductions are covered at the start of the hearing?

Unknown 0:00

Let's go ahead and go back on the record. And just very quickly, I'm gonna scan around the room. Are there any procedural matters we need to take up this morning before we get started? Nothing. All right. In that case, uh, Mr. Bowen, are you ready to go? Yes, thank you, Your Honor. Uh good morning, Mr. Geisler. I uh is one native Arizona into another. I appreciate you being here and speaking with us today. And um I do apologize. I know it's a little uh quirky doing it remotely, so I'll be kinda looking back and forth between my notes and you. But uh I appreciate you bearing with me and spending a whole another day talking to lawyers, which I know is every CEO's favorite thing.

David Geisler 0:37

No good morning, no problem at all and uh Um glad to be with a fellow Arizona.

Unknown 0:44

Good. As am I. Um I'll I'll do my best. I know with the remote format it's a little quirky and we may have to get a group, but I'll do my best to let you answer your questions completely. And I I asked that you do the same. Just let me do my best to get 'em out and we can create a clean record here. Um So yesterday you uh discussed that you're the chairman of the board, CEO and present for APS, but you're also the chairman of the board, CEO and present for Pinnacle West Capital Corporation, is that right? Correct. Okay. And and APS is the wholly owned subsidiary of Pinnacle West, right? Correct. And then uh Pinnacle West derives essentially all of its revenues and earnings from APS, is that right?

David Geisler 1:30

Nearly all. There's uh very small, hardly measurable amount that uh may be derived from other sources, but it's uh it's it's not uh frequent and it's uh very, very small.

Unknown 1:45

Okay. Um and just so we're not talking in generalizations, I'll I'll probably pull up an exhibit here. This is um Going to be uh Arizona Free Enterprise Club fifteen, which I believe is also uh Aresea four. So this has already been admitted. Um I'll give you a chance to to get that in front of you. It's the Forum 10K from twenty twenty four. So either Arizona Free Enterprise Club fifteen, if you have it. Um or if not. Let me know we can get the document in front of you.

David Geisler 2:22

I've got uh fifteen.

Unknown 2:28

Okay. Arizona Free Enterprise Club fifteen. Perfect. And there's uh because these pages unfortunately have all kinds of numbers on them. I'll try to be very clear about what page I'm looking at. So I'm looking at the one that's it's Bates labeled Arizona Free Enterprise Club five nineteen. Uh In that document. At the top it says part one, item one, business. Yes. Okay. Uh in that that first full sentence it says Pinnacle West is a holding company incorporated in Arizona that conducts its business through subsidiaries. We derive essentially all of our revenues and earnings from our wholly owned subsidiary APS. Is that right?

How does the discussion shift to APS’s corporate structure and the clean‑megawatts‑installed compensation metric?

David Geisler 3:08

Yes. Emphasis on the word essentially.

Unknown 3:11

Yeah. Yes. Emphasis added by me. Yes, it's not italicized. Thank you. Um In this uh document here is filed with the Securities and Exchange Commission, right? The SEC? Yes. Okay. And that language, that essentially all language, is also used in uh Pinnacle West and APS's proxy statements, right?

David Geisler 3:43

I I don't have that in front of me but I have uh no reason to believe it may not.

Unknown 3:48

Okay, that's fine for right now's purposes. So APS's strategic commitments, governance structures, and executive compensation frameworks are all pretty functionally unified between APS and Pinnacle West, is that right? Correct. Okay. And APS does not file its own proxy statements. For example, it uh executive compensation disclosures for APS are filed under Pinnacle West's proxies with the SCC, is that right? Correct. Okay. Um, I'm going to have you if you can't I'm not gonna make you look at all these together, but just we may be pinging back and forth between some different proxy statements, and these will be contained in Arizona Free Enterprise Club seventeen, eighteen, nineteen, twenty, and twenty one.

Unknown 4:38

Okay. Okay. Yeah, and if you could just look at the the first page of each of those exhibits and let me know if you recognize those as APS's proxy statements.

David Geisler 5:17

Yes, they all look like the Pinaquest proxy statements.