Corporate Tax Cut Savings Lead APS to Request Decrease in Customer Bills

PHOENIX–(BUSINESS WIRE)–APS has requested the Arizona Corporation Commission approve a $119
million bill reduction for customers, based on federal corporate tax
cuts, effective February 1, 2018.

If approved, the $119 million decrease will offset the $95 million
revenue increase that resulted from APS’s last rate review. The savings
of $0.004258/kWh will be passed directly to customers through the Tax
Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was
included in the company’s rate review, and customer savings will vary
with actual energy usage. APS customers would receive the credit on
their monthly bill.

Authorized adjustors reset each year and will impact customer bills
throughout 2018. Bill impact of adjustors will vary with actual energy
usage and service plan. APS anticipates additional tax cut savings will
be available at a later date once the full impact of the new law is
realized. For additional information on how to reduce energy usage,
customers can visit aps.com.

APS
serves about 2.7 million people in 11 of Arizona’s 15 counties, and is
the Southwest’s foremost producer of clean, safe and reliable
electricity. Using a balanced energy mix that is nearly 50 percent
carbon-free, APS has one of the country’s cleanest energy portfolios,
including both Palo Verde Generating Station and renewable energy. The
company is also a proven leader in introducing technology and services
that offer customers choice and control over their energy consumption.
With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle
West Capital Corp. (NYSE: PNW).

Contacts

APS
Media Contact:
Anna Stewart, 602-250-2104
Analyst
Contact:
Stefanie Layton, 602-250-4541
Website: aps.com/newsroom