APS 2015 Annual Report Download - page 5

Table of Contents
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on current expectations. These forward-looking statements are often
identified by words such as “estimate,” “predict,” “may,” “believe,” “plan,” “expect,” “require,” “intend,” “assume” and similar
words. Because actual results may differ materially from expectations, we caution readers 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. In addition to the Risk Factors described in Item 1A and in Item 7 — “Management’s
Discussion and Analysis of Financial Condition and Results of Operations,” these factors include, but are not limited to:
• 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, the general economy, customer and sales growth (or decline),
and the effects of energy conservation measures and distributed generation;
• power plant and transmission system performance and outages;
• competition in retail and wholesale power markets;
• regulatory and judicial decisions, developments and proceedings;
• new legislation or regulation, including those relating to environmental requirements, 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, including returns on and of debt and equity capital investment;
• our ability to meet renewable energy and energy efficiency mandates and recover related costs;
• 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 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 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 the Risk Factors described in Item 1A of this report, which readers should review
carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation
to update these statements, even if our internal estimates change, except as required by law.
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