Lines of Credit and Short-Term Borrowings

12 Months Ended

Dec. 31, 2024

Lines of Credit and Short-Term Borrowings

Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support for their commercial paper programs, to refinance indebtedness, and for other general corporate purposes.

The table below presents the consolidated credit and term loan facilities and the amounts available and outstanding (dollars in thousands):


	December 31, 2024						December 31, 2023
	Pinnacle West		APS		Total		Pinnacle West		APS		Total
Commitments under Credit and Term Loan Facilities	$	400,000	$	1,650,000	$	2,050,000	$	200,000	$	1,250,000	$	1,450,000
Outstanding short-term borrowings	(228,550)		(339,900)		(568,450)		(76,650)		(532,850)		(609,500)
Amount of Credit and Term Loan Facilities Available	$	171,450	$	1,310,100	$	1,481,550	$	123,350	$	717,150	$	840,500

Weighted-Average Commitment Fees	0.225%		0.175%				0.170%		0.120%

Pinnacle West

On August 2, 2024, Pinnacle West amended its $200 million revolving credit facility, extending the maturity date from April 10, 2028 to April 10, 2029, and providing a mechanism to either update the Sustainability Table (as defined in the Pinnacle West revolving credit facility), which provides for a sustainability-linked pricing feature, or, in certain circumstances, terminate the sustainability-linked pricing feature for the final year. Pinnacle West has the option to increase the amount of the facility up to a total of $300 million upon the satisfaction of certain conditions and with the consent of the lenders. Interest rates are based on Pinnacle West’s senior unsecured debt credit ratings and the agreement includes a sustainability-linked pricing metric which permits an interest rate reduction or increase by meeting or missing targets related to specific environmental and employee health and safety sustainability objectives. The facility is available to support Pinnacle West’s general corporate purposes, including support for Pinnacle West’s $200 million commercial paper program, for bank borrowings or for issuances of letters of credit. At December 31, 2024, Pinnacle West had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under its credit facility, and $29 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on December 31, 2024, was 4.58%.

On December 5, 2024, Pinnacle West entered into an agreement with a new 364-day $200 million term loan facility that matures on December 4, 2025. Borrowings under the facility bear interest at SOFR plus 0.95% per annum. On December 20, 2024, Pinnacle West drew the full amount of $200 million. On December 20, 2024, Pinnacle West repaid $200 million of the Pinnacle West term loan which matured in December 2024.

APS

On August 2, 2024, APS amended its $1.25 billion revolving credit facility, extending the maturity date from April 10, 2028 to April 10, 2029, and providing a mechanism to either update the Sustainability Table (as defined in the APS revolving credit facility), which provides for a sustainability-linked pricing feature, or, in certain circumstances, terminate the sustainability-linked pricing feature for the final year. APS has the option to increase the amount of the facility by up to a maximum of $400 million, for a total of $1.65 billion, upon the satisfaction of certain conditions and with the consent of the lenders. Interest rates are based on APS’s senior unsecured debt credit ratings and the agreement includes a sustainability-linked pricing metric which permits an interest rate reduction or increase by meeting or missing targets related to specific environmental and employee health and safety sustainability objectives. The facility is available to support APS’s general corporate purposes, including support for APS’s commercial paper program, which was increased from $750 million to $1 billion on April 10, 2023, for bank borrowings or for issuances of letters of credit. At December 31, 2024, APS had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under the credit facility, and $340 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on December 31, 2024, was 4.62%.

On December 12, 2023, APS entered into an agreement for a new 364-day $350 million term loan facility that matured on December 10, 2024. Borrowings under the facility boar interest at SOFR plus 1.0% per annum. On February 9, 2024, APS drew the full amount of $350 million, which APS subsequently paid off in full on June 10, 2024.

On December 5, 2024, APS entered into a $400 million 364-Day Term Loan Agreement that matures on December 4, 2025. Borrowings under the facility bear interest at SOFR plus 0.90% per annum. As of the date of this report, APS has not drawn on this term loan.

See “Financial Assurances” in Note 10 for a discussion of other outstanding letters of credit.

Debt Provisions

On December 17, 2024, the ACC issued a financing order that reaffirmed APS’s short-term debt authorization equal to the sum of (i) 7% of APS’s capitalization, and (ii) $500 million (which is required to be used for costs relating to purchases of natural gas and power) and increased the long-term debt limit to $9.5 billion and made certain changes to permitted annual equity infusions into APS. See Note 6 for additional long-term debt provisions