Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Property, Plant and Equipment

Pinnacle West’s property, plant and equipment included in the December 31, 2023, and 2022 Consolidated Balance Sheets is composed of the following (dollars in thousands):


Property, Plant and Equipment:	2023		2022
Generation	$	10,446,291	$	9,563,145
Transmission	3,773,253		3,589,456
Distribution	8,448,293		7,951,867
General plant	1,543,330		1,347,678
Plant in service and held for future use	24,211,167		22,452,146
Accumulated depreciation and amortization	(8,408,040)		(7,929,878)
Net	15,803,127		14,522,268
Construction work in progress	1,724,004		1,882,791
Palo Verde sale leaseback, net of accumulated depreciation	86,426		90,296
Intangible assets, net of accumulated amortization	267,110		258,880
Nuclear fuel, net of accumulated amortization	99,490		100,119
Total property, plant and equipment	$	17,980,157	$	16,854,354

Schedule of Supplemental Cash Flow Information

The following table summarizes supplemental Pinnacle West cash flow information for each of the last three years (dollars in thousands):


	Year ended December 31,
	2023		2022		2021
Cash paid during the period for:
Income taxes, net of refunds	$	8,788	$	46,227	$	229
Interest, net of amounts capitalized	310,996		245,271		227,584
Significant non-cash investing and financing activities:
Accrued capital expenditures	$	206,269	$	114,999	$	167,733
Dividends declared but not paid	99,813		97,895		95,988
BCE Sale non-cash consideration (Note 20)	28,262		—		—

The following table summarizes supplemental APS cash flow information for each of the last three years (dollars in thousands):


	Year ended December 31,
	2023		2022		2021
Cash paid during the period for:
Income taxes, net of refunds	$	21,734	$	95,985	$	19,783
Interest, net of amounts capitalized	267,261		227,159		217,749
Significant non-cash investing and financing activities:
Accrued capital expenditures	$	206,269	$	116,533	$	167,657
Dividends declared but not paid	99,800		97,900		96,000