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Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table presents the fair value as of March 31, 2026 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):

Level 1Level 2Level 3OtherTotal
ASSETS
Risk management activities — derivative instruments:
Commodity contracts$— $11,142 $— $(10,288)(a)$854 
Nuclear decommissioning trusts:
Equity securities18,541 — — 3,557 (b)22,098 
U.S. commingled equity funds— — — 478,770 (c)478,770 
U.S. Treasury debt369,970 — — — 369,970 
Corporate debt— 249,372 — — 249,372 
Mortgage-backed securities— 217,924 — — 217,924 
Municipal bonds— 34,288 — — 34,288 
Other fixed income— 20,395 — — 20,395 
Subtotal nuclear decommissioning trusts388,511 521,979 — 482,327 1,392,817 
Other special use funds:
Equity securities64,850 — — 2,012 (b)66,862 
U.S. Treasury debt370,883 — — — 370,883 
Subtotal other special use funds (d)435,733 — — 2,012 437,745 
Total assets$824,244 $533,121 $— $474,051 $1,831,416 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(35,908)$(33,456)$7,727 (a)$(61,637)
(a)Represents counterparty netting, margin, and collateral. See Note 10.
(b)Represents net pending securities sales and purchases.
(c)Valued using NAV as a practical expedient and, therefore, are not classified in the fair value hierarchy.
(d)All amounts relate to APS, with the exception of $41.4 million related to Pinnacle West’s Captive investments that are classified within Level 1 equity securities. See Note 9.
 The following table presents the fair value at December 31, 2025 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):
 
Level 1Level 2Level 3OtherTotal
ASSETS
Risk management activities — derivative instruments:
Commodity contracts$— $19,347 $— $(10,960)(a)$8,387 
Nuclear decommissioning trusts:
Equity securities18,970 — — (3,799)(b)15,171 
U.S. commingled equity funds— — — 500,592 (c)500,592 
U.S. Treasury debt364,943 — — — 364,943 
Corporate debt— 242,176 — — 242,176 
Mortgage-backed securities— 230,695 — — 230,695 
Municipal bonds— 37,572 — — 37,572 
Other fixed income— 23,017 — — 23,017 
Subtotal nuclear decommissioning trusts383,913 533,460 — 496,793 1,414,166 
Other special use funds:
Equity securities62,573 — — 3,199 (b)65,772 
U.S. Treasury debt369,055 — — — 369,055 
Subtotal other special use funds (d)431,628 — — 3,199 434,827 
Total assets$815,541 $552,807 $— $489,032 $1,857,380 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(21,325)$(23,710)$8,399 (a)$(36,636)
(a)Represents counterparty netting, margin, and collateral. See Note 10.
(b)Represents net pending securities sales and purchases.
(c)Valued using NAV as a practical expedient and, therefore, are not classified in the fair value hierarchy.
(d)All amounts relate to APS, with the exception of $40.3 million related to Pinnacle West’s Captive investments that are classified within Level 1 equity securities. See Note 9.
The following table shows the changes in fair value for our risk management activities’ assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs (dollars in thousands):
 Three Months Ended March 31,
Commodity Contracts20262025
Balance at beginning of period$(23,710)$(15,039)
Total net losses realized/unrealized:
Deferred as a regulatory asset or liability(14,577)(5,823)
Settlements4,831 (2,287)
Transfers into Level 3 from Level 2— (59)
Transfers from Level 3 into Level 2— 368 
Balance at end of period$(33,456)$(22,840)
Net unrealized gains/losses included in earnings related to instruments still held at end of period$— $— 
Schedule of Fair Value Measurement Inputs and Valuation Techniques
The following tables provide information regarding our significant unobservable inputs used to value our risk management derivative Level 3 instruments as of March 31, 2026 and December 31, 2025 (dollars in thousands):

March 31, 2026
 Fair Value 		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange (b)
Electricity:
Electricity Forward Contracts (a)$— $26,789 Discounted cash flowsElectricity forward price (per MWh)
$31.79
-
$138.31
$71.57
Natural Gas Forward Contracts (a)— 6,667 Discounted cash flowsNatural gas forward price (per Million British Thermal Units (“MMBtu”))
$(0.79)
-
$0.14
$0.03
Total$— $33,456 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.

December 31, 2025
 Fair Value 		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange(b)
Electricity Forward Contracts (a)$— $21,913 Discounted cash flowsElectricity forward price (per MWh)$41.51 -$149.37$80.20
Natural Gas Forward Contracts (a)— 1,797 Discounted cash flowsNatural gas forward price (per MMBtu)$(0.07)-$0.36$0.04
Total$— $23,710 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.