APS 2012 Annual Report Download - page 27

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3
PART I
ITEM 1. BUSINESS
Pinnacle West
Pinnacle West is a holding company that conducts business through its subsidiaries. We derive
essentially all of our revenues and earnings from our wholly-owned subsidiary, APS. APS is a
vertically-integrated electric utility that provides either retail or wholesale electric service to most of
the State of Arizona, with the major exceptions of about one-half of the Phoenix metropolitan area, the
Tucson metropolitan area and Mohave County in northwestern Arizona.
Pinnacle West’s other remaining first-tier subsidiaries are SunCor and El Dorado. Additional
information related to these businesses is provided later in this report.
Our reportable business segment is our regulated electricity segment, which consists of
traditional regulated retail and wholesale electricity businesses (primarily electric service to Native
Load customers) and related activities, and includes electricity generation, transmission and
distribution.
BUSINESS OF ARIZONA PUBLIC SERVICE COMPANY
APS currently provides electric service to approximately 1.1 million customers. We own or
lease approximately 6,370 MW of regulated generation capacity and we hold a mix of both long-term
and short-term purchased power agreements for additional capacity, including a variety of agreements
for the purchase of renewable energy. During 2012, no single purchaser or user of energy accounted
for more than 1.4% of our electric revenues.