Business Context and Reporting Period
This Form 8-K is a combined current report filed by Pinnacle West Capital Corporation and its subsidiary, Arizona Public Service Company (APS). The report covers events occurring on January 3, 2018, and was signed on January 9, 2018.
Key Financial Metrics
This filing does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity data. It is a disclosure of a regulatory event.
Material Changes
The filing discloses a new regulatory complaint filed against APS regarding a prior retail rate case decision. On January 3, 2018, an APS customer filed a petition with the Arizona Corporation Commission (ACC). The ACC Staff determined this to be a formal complaint under Arizona Revised Statute §40-246 rather than a request for rehearing. The complaint alleges that APS is in violation of the Commission's final Order issued on August 18, 2017.
Outlook, Risks, and Management Commentary
- Procedural Status: APS has not yet been formally served with the complaint but expects to have 20 days to respond once service occurs.
- Next Steps: APS anticipates a hearing officer will be assigned to hear the complaint.
- Uncertainty: Management states it is uncertain regarding the timing and procedure for the consideration of the complaint.
- Outcome: APS explicitly states it cannot predict the outcome of this matter.
Investor Verification Checklist
- Verify the specific allegations in the customer complaint regarding the August 18, 2017, ACC Order.
- Monitor the date of formal service to determine the deadline for APS's response.
- Track the assignment of a hearing officer and the scheduled timeline for the hearing.
- Review the potential financial impact of a violation finding on APS's retail rates and regulatory compliance.