APS 2013 Annual Report Download - page 114
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Table of Contents
PINNACLE WEST CAPITAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in millions):
Year
Consolidated
Pinnacle West
Consolidated
APS
2014 $540 $540
2015 470 345
2016 358 358
2017 — —
2018 32 32
Thereafter 1,940 1,940
Total $3,340 $3,215
Debt Fair Value
Our long-term debt fair value estimates are based on quoted market prices for the same or similar issues, and are classified within level 2 of the fair
value hierarchy. Certain of our debt instruments contain third-party credit enhancements and, in accordance with GAAP, we do not consider the effect of these
credit enhancements when determining fair value. The following table represents the estimated fair value of our long-term debt, including current maturities
(dollars in millions):
As of
December 31, 2013
As of
December 31, 2012
Carrying
Amount Fair Value
Carrying
Amount Fair Value
Pinnacle West $125 $125 $125 $125
APS 3,212 3,454 3,197 3,750
Total $3,337 $3,579 $3,322 $3,875
Credit Facilities and Debt Issuances
APS
On March 22, 2013, APS issued an additional $100 million par amount of its outstanding 4.50% unsecured senior notes that mature on April 1,
2042. The net proceeds from the sale were used to repay short-term commercial paper borrowings and replenish cash used to redeem certain tax-exempt
indebtedness in November 2012.
On May 1, 2013, APS purchased all $32 million of the Maricopa County, Arizona Pollution Control Corporation Pollution Control Revenue
Refunding Bonds, 2009 Series C, due 2029. On May 28, 2013, we remarketed the bonds. The interest rate for these bonds was set to a new term rate. The
new term rate for these bonds ends, subject to a mandatory tender, on May 30, 2018. During this time, the bonds will bear interest at a rate of 1.75% per
annum. These bonds are classified as long-term debt on our Consolidated Balance Sheets at December 31, 2013 and were classified as current maturities of
long-term debt on our Consolidated Balance Sheets at December 31, 2012.
110