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Fair Value Measurements (Tables)
 9 Months Ended
Sep. 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 September 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
Cash equivalents$1 $— $— $— $1 
Risk management activities — derivative instruments:
Commodity contracts— 32,443 1,369 (11,576)(a)22,236 
Nuclear decommissioning trusts:
Equity securities19,150 — — 2,091 (b)21,241 
U.S. commingled equity funds— — — 487,681 (c)487,681 
U.S. Treasury debt352,998 — — — 352,998 
Corporate debt— 237,191 — — 237,191 
Mortgage-backed securities— 232,657 — — 232,657 
Municipal bonds— 37,785 — — 37,785 
Other fixed income— 23,893 — — 23,893 
Subtotal nuclear decommissioning trusts372,148 531,526 — 489,772 1,393,446 
Other special use funds:
Equity securities103,354 — — 2,167 (b)105,521 
U.S. Treasury debt324,411 — — — 324,411 
Subtotal other special use funds (d)427,765 — — 2,167 429,932 
Total assets$799,914 $563,969 $1,369 $480,363 $1,845,615 
LIABILITIES
Risk management activities — derivative instruments:
Commodity contracts$— $(25,218)$(19,645)$5,785 (a)$(39,078)
(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 $39.4 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 September 30,Nine Months Ended September 30,
Commodity Contracts2025202420252024
Balance at beginning of period$(18,792)$(21,640)$(15,039)$4,921 
Total net losses realized/unrealized:
Deferred as a regulatory asset or liability(18,492)(25,576)(22,121)(58,984)
Settlements19,283 29,128 18,879 39,076 
Transfers into Level 3 from Level 2(275)— (663)(4,565)
Transfers from Level 3 into Level 2— — 668 1,464 
Balance at end of period$(18,276)$(18,088)$(18,276)$(18,088)
Net unrealized gains/losses included in earnings related to instruments still held at end of period$— $— $— $— 
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 September 30, 2025 and December 31, 2024:

September 30, 2025
 Fair Value
 (dollars in thousands) 		ValuationSignificantWeighted-Average
Commodity ContractsAssetsLiabilitiesTechniqueUnobservable InputRange (b)
Electricity Forward Contracts (a)$1,032 $17,576 Discounted cash flowsElectricity forward price (per megawatt-hour (“MWh”))
$30.85
-
$157.99
$80.98
Natural Gas Forward Contracts (a)337 2,069 Discounted cash flowsNatural gas forward price (per Million British Thermal Units (“MMBtu”))
$(0.48)
-
$0.10
$(0.09)
Total$1,369 $19,645 
(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
(dollars in 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.