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Fair Value Measurements (Tables)
 6 Months Ended
Jun. 30, 2025
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 June 30, 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$— $52,106 $4,240 $(11,240)(a)$45,106 
Nuclear decommissioning trusts:
Equity securities17,914 — — 3,676 (b)21,590 
U.S. commingled equity funds— — — 450,053 (c)450,053 
U.S. Treasury debt347,666 — — — 347,666 
Corporate debt— 231,394 — — 231,394 
Mortgage-backed securities— 224,600 — — 224,600 
Municipal bonds— 36,981 — — 36,981 
Other fixed income— 25,574 — — 25,574 
Subtotal nuclear decommissioning trusts365,580 518,549 — 453,729 1,337,858 
Other special use funds:
Equity securities64,322 — — 2,844 (b)67,166 
U.S. Treasury debt356,166 — — — 356,166 
Subtotal other special use funds (d)420,488 — — 2,844 423,332 
Total assets$786,068 $570,655 $4,240 $445,333 $1,806,296 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(15,853)$(23,032)$6,049 (a)$(32,836)
(a)Represents counterparty netting, margin, and collateral. See Note 9.
(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 $38.5 million related to Pinnacle West’s Captive investments that are classified within Level 1 equity securities. See Note 8.
 The following table presents the fair value at December 31, 2024 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in thousands):
 
Level 1Level 2Level 3OtherTotal
ASSETS
Cash equivalents$23 $— $— $— $23 
Risk management activities — derivative instruments:
Commodity contracts— 13,152 7,176 (3,770)(a)16,558 
Nuclear decommissioning trusts:
Equity securities11,859 542 — 3,335 (b)15,736 
U.S. commingled equity funds— — — 423,069 (c)423,069 
U.S. Treasury debt367,396 — — — 367,396 
Corporate debt— 203,180 — — 203,180 
Mortgage-backed securities— 208,533 — — 208,533 
Municipal bonds— 37,429 — — 37,429 
Other fixed income— 27,502 — — 27,502 
Subtotal nuclear decommissioning trusts379,255 477,186 — 426,404 1,282,845 
Other special use funds:
Cash equivalents25,000 — — — (d)25,000 
Equity securities24,962 — — 2,851 (b) (d)27,813 
U.S. Treasury debt355,544 — — — 355,544 
Subtotal other special use funds (d)405,506 — — 2,851 408,357 
Total assets$784,784 $490,338 $7,176 $425,485 $1,707,783 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(40,388)$(22,215)$817 (a)$(61,786)
(a)Represents counterparty netting, margin, and collateral. See Note 9.
(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 $34.2 million related to Pinnacle West’s Captive investments that are classified within Level 1, $25.0 million in cash equivalents and $9.2 million related to equity securities. See Note 8.
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 June 30,Six Months Ended June 30,
Commodity Contracts2025202420252024
Balance at beginning of period$(22,840)$(15,971)$(15,039)$4,921 
Total net losses realized/unrealized:
Deferred as a regulatory asset or liability2,194 (9,808)(3,629)(33,408)
Settlements1,883 7,240 (404)9,948 
Transfers into Level 3 from Level 2(329)(4,565)(388)(4,565)
Transfers from Level 3 into Level 2300 1,464 668 1,464 
Balance at end of period$(18,792)$(21,640)$(18,792)$(21,640)
Net unrealized gains/losses included in earnings related to instruments still held at end of period$— $— $— $— 
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 June 30, 2025 and December 31, 2024:

June 30, 2025
 Fair Value (thousands) 		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange (b)
Electricity Forward Contracts (a)$3,994 $22,954 Discounted cash flowsElectricity forward price (per MWh)
$24.00
-
$164.62
$92.66
Natural Gas Forward Contracts (a)246 78 Discounted cash flowsNatural gas forward price (per MMBtu)
$0.00
-
$0.07
$0.04
Total$4,240 $23,032 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.

December 31, 2024
 Fair Value (thousands) 		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange(b)
Electricity Forward Contracts (a)$708 $21,890 Discounted cash flowsElectricity forward price (per MWh)$25.25 -$151.11$106.06
Natural Gas Forward Contracts (a)6,468 325 Discounted cash flowsNatural gas forward price (per MMBtu)$(0.89)-$1.47$0.71
Total$7,176 $22,215 
(a)Includes swaps and physical and financial contracts.
(b)Unobservable inputs were weighted by the relative fair value of the instrument.