Lines of Credit and Short-Term Borrowings

12 Months Ended

Dec. 31, 2025

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, 2025						December 31, 2024
	Pinnacle West Consolidated		APS Consolidated		Total		Pinnacle West Consolidated		APS Consolidated		Total
Commitments under Revolving Credit and Term Loan Facilities	$	375,000	$	1,250,000	$	1,625,000	$	400,000	$	1,650,000	$	2,050,000
Outstanding short-term borrowings	(249,700)		(507,305)		(757,005)		(228,550)		(339,900)		(568,450)
Amount available under Revolving Credit and Term Loan Facilities	$	125,300	$	742,695	$	867,995	$	171,450	$	1,310,100	$	1,481,550

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

Pinnacle West

As of December 31, 2025, Pinnacle West had a $200 million revolving credit facility that matures on April 10, 2029. 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 provides for an interest rate reduction or increase, by meeting or missing, respectively, targets related to specific environmental and employee health and safety sustainability objectives. Under certain circumstances, the sustainability-linked pricing metric can be terminated for the final year of the credit facility. 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. As of December 31, 2025, Pinnacle West had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under its credit facility, and $75 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on December 31, 2025 was 3.81%.

On February 18, 2026, Pinnacle West’s revolving credit facility was amended and extended with the following modifications, among others: (1) increasing the amount of the facility to $300 million and maintaining the option to expand it up to a total of $400 million, (2) extending the maturity date to February 18, 2031, with two 1-year extension options, (3) eliminating the sustainability-linked pricing metric, and (4) certain modifications to the definition and calculation of indebtedness to exclude (a) PPAs and energy storage leases that are recoverable through the PSA and (b) certain qualified securitization bonds. Pinnacle West’s commercial paper program was also increased to $300 million.

Pinnacle West had an outstanding 364-day $200 million term loan facility that matured on December 4, 2025. Borrowings under the facility bore interest at SOFR plus 0.95% per annum. On December 20, 2024, Pinnacle West drew the full amount of $200 million and repaid it on December 4,

2025 using proceeds from a new unsecured 364-day $175 million term loan facility discussed below and commercial paper borrowings.

Pinnacle West has an outstanding 364-day $175 million term loan facility that matures on December 3, 2026. Borrowings under the facility bear interest at SOFR plus 0.80% per annum. On December 3, 2025, Pinnacle West drew the full amount of $175 million.

APS

As of December 31, 2025, APS had a $1.25 billion revolving credit facility, that matures on April 10, 2029. APS has the option to increase the amount of the facility to 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 provides for an interest rate reduction or increase, by meeting or missing, respectively, targets related to specific environmental and employee health and safety sustainability objectives. Under certain circumstances, the sustainability-linked pricing metric can be terminated for the final year of the credit facility. The facility is available to support APS’s general corporate purposes, including support for APS’s $1 billion commercial paper program, for bank borrowings or for issuances of letters of credit. As of December 31, 2025, APS had no outstanding borrowings under its revolving credit facility, no letters of credit outstanding under the credit facility, and $507 million of outstanding commercial paper borrowings. The weighted-average interest rate for the outstanding borrowings on December 31, 2025 was 3.83%.

On February 18, 2026, APS’s revolving credit facility was amended and extended with the following modifications, among others: (1) increasing the amount of the facility to $1.7 billion and maintaining the option to expand it up to a total of $2.1 billion, (2) extending the maturity date to February 18, 2031, with two 1-year extension options, (3) eliminating the sustainability-linked pricing metric, and (4) certain modifications to the definition and calculation of indebtedness to exclude (a) PPAs and energy storage leases that are recoverable through the PSA and (b) certain qualified securitization bonds. APS’s commercial paper program was also increased to $1.5 billion.

On December 5, 2024, APS entered into a $400 million 364-Day Term Loan Agreement that matured on December 4, 2025. Borrowings under the facility bore interest at SOFR plus 0.90% per annum. APS drew the full amount of $400 million on April 29, 2025 and repaid it on August 15, 2025 using proceeds from unsecured senior notes issuances. See Note 7.

See “Financial Assurances” in Note 14 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 7 for additional long-term debt provisions.