Pinnacle West Capital Corporation Shines in Q1 2025: Semiconductors, Healthcare, and Reliable Power
Pinnacle West Capital Corporation has made significant strides in its first quarter of 2025, showcasing the company's commitment to innovation, growth, and customer satisfaction. Chairman, President, and CEO Ted Geisler highlighted Arizona's thriving economy, which has become a national leader in semiconductor and advanced manufacturing.
The state's diverse economy continues to grow at a solid pace, with notable expansion announcements from Taiwan Semiconductor Manufacturing Company (TSMC) and NVIDIA. TSMC has invested an additional $100 billion beyond their original $65 billion investment, planning to build three additional fabrication centers, two advanced packaging facilities, and a research and development part. This significant commitment underscores the state's position as a hub for cutting-edge manufacturing.
Arizona's international exports rose almost 12% in 2024, making it the highest year-over-year growth rate in the country, led by mining, semiconductors, computer equipment, and aerospace products. The healthcare sector is also expanding rapidly, with Mayo Clinic announcing a nearly $2 billion investment in their Phoenix Healthcare Hospital campus – the clinic's largest investment to date.
Turning to operations, Pinnacle West Capital Corporation has been focused on providing top-tier reliability for its customers. The company continues to make year-round investments to secure a resilient grid and deliver excellence in customer experience. As the state prepares for summer, the company has procured all necessary generation capacity and reserves, completed grid inspections, and executed robust fire mitigation investments.
COO Jacob Tetlow emphasized the importance of planned maintenance activities, which have been successfully completed on several generation units, including the Four Corners Power Plant. The Red Hawk and Sundance units have also undergone Tiller upgrades to reduce ambient emissions during hot summer evenings when customers use the most energy. Palo Verde Unit 1 is currently in a planned refueling outage but is expected to return to service in early May.
The company's progress on long-term resource procurement has been steady, with continued efforts to make progress on their annual all-source request for proposals. CFO Andrew Cooper will discuss the details of first-quarter results later in the call, but it is clear that Pinnacle West Capital Corporation is committed to delivering reliable and affordable power to its customers.
As Arizona continues to thrive, Pinnacle West Capital Corporation stands ready to meet the growing energy demands of the state. With a focus on innovation, growth, and customer satisfaction, the company is poised for continued success in Q2 2025 and beyond.
