APS 2015 Annual Report Download - page 6

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Table of Contents
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 subsidiaries are El Dorado and BCE. Additional information related to these subsidiaries 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 1.2 million customers. We own or lease 6,186 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 2015, no single purchaser or user of energy accounted for more
than 1.3% of our electric revenues.
3