The Arizona Stock Exchange (AZX), an electronically enabled stock exchange for carrying out eTrading after usual stock market hours, was founded by Steve Wunsch, a former Kidder Peabody Vice President. Founded in 1990 as Wunsch Auction Systems, the headquarters of the company was based in New York. The technology trading center was originally based in Minnesota and built and run by a group of former Cray Research Supercomputer technologists that included Christopher Moran, Gray Lorig, Kerry Yndestad and Paul Sustman.
In early 1992 the company was recast as AZX or the Arizona Stock Exchange and both the headquarters and technology trading center were moved to Phoenix, Arizona.
Restricted to use by large institutional users only, participants could conduct screen based trades of equity and other products through either direct dial-up or internet access. The Arizona Stock Exchange was structured as a proprietary "Single Price" electronic call market. Unique to the Arizona Stock Exchange was the ability to discover the best or "single" price for a stock during the auction based upon supply and demand utilizing both an open book and reserve book of equity orders. Operating under a de minimis exemption, it was not required to be registered or regulated as a stock exchange with the U.S. Securities and Exchange Commission (SEC).
The general philosophy behind the Arizona Stock Exchange was to let natural buyers and sellers of equities trade directly with one another without intermediation by a broker or dealer. The AZX sought to reduce transaction costs for its participants, remove volatility from the market and determine more robust and fair pricing for equities traded.
While the idea behind AZX was ahead of its time in the 1990s and anticipated the more successful electronic communication networks such as Archipelago, it had to close down in October 2001, due to lack of volume.
Pinnacle West Capital Corporation (Pinnacle West), incorporated in 1985, is a holding company that conducts business through its subsidiaries. The Company’s business consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission and distribution. It drives revenues and earnings from its wholly owned subsidiary, Arizona Public Service Company (APS). APS is an electric utility that provides either retail or wholesale electric service to the State of Arizona, with the major exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona. Pinnacle West’s other first-tier subsidiaries are SunCor, APSES and El Dorado.
APS provides electric service to approximately 1.1 million customers. It owns or leases more than 6,290 megawatts of regulated generation capacity and it holds a mix of both long-term and short-term purchased power agreements for additional capacity, including a variety of agreements for the purchase of renewable energy. During the year ended December 31, 2010, no single purchaser or user of energy accounted for more than 1.2% of its electric revenues.
APS has ownership interests in or leases the coal, nuclear, gas, oil and solar generating facilities. Four Corners is a 5-unit coal-fired power plant located in the north-western corner of New Mexico. APS operates the plant and owns 100% of Four Corners Units 1, 2 and 3 and 15% of Units 4 and 5. APS has a total entitlement from Four Corners of 791 MW. The Four Corners plant site is leased from the Navajo Nation and is also subject to an easement from the federal government. APS purchases all of Four Corners’ coal requirements from a supplier with a long-term lease of coal reserves with the Navajo Nation. The Four Corners coal contract runs through 2016.
Cholla is a 4-unit coal-fired power plant located in north-eastern Arizona. APS operates the plant and owns 100% of Cholla Units 1, 2 and 3. PacifiCorp owns Cholla Unit 4, and APS operates that Unit for PacifiCorp. APS has a total entitlement from Cholla of 647 megawatts. APS purchases all of Cholla’s coal requirements from a coal supplier that mines all of the coal under long-term leases of coal reserves with the federal government and private landholders. The Cholla coal contract runs through 2024.
The Navajo Plant is a 3-unit coal-fired power plant located in northern Arizona. Salt River Project operates the plant and APS owns a 14% interest in Navajo Units 1, 2 and 3. APS has a total entitlement from the Navajo Plant of 315 megawatts. The Navajo Plant’s coal requirements are purchased from a supplier with long-term leases from the Navajo Nation and the Hopi Tribe. The Navajo Plant is under contract with its coal supplier through 2011, with options to extend through 2019. The Navajo Plant site is leased from the Navajo Nation and is also subject to an easement from the federal government.
Palo Verde is a nuclear power plant located about 50 miles west of Phoenix, Arizona. APS operates the plant and owns 29.1% of Palo Verde Units 1 and 3 and about 17% of Unit 2. In addition, APS leases about 12.1% of Unit 2, resulting in a 29.1% combined interest in that Unit. APS has a total entitlement from Palo Verde of 1,146 megawatts.
APS has six natural gas power plants located throughout Arizona, consisting of Redhawk, located near the Palo Verde Nuclear Generating Station; Ocotillo, located in Tempe; Sundance, located in Coolidge; West Phoenix, located in southwest Phoenix; Saguaro, located north of Tucson, and Yucca, located near Yuma. Several of the units at Saguaro and Yucca run on either gas or oil. APS has an oil only power plant, Douglas, located in the town of Douglas, Arizona. APS owns and operates each of these plants with the exception of one combustion turbine unit and one steam unit at Yucca that are operated by APS and owned by the Imperial Irrigation District. APS has a total entitlement from these plants of 3,389 megawatts. Gas for these plants is acquired through APS’s hedging program. APS has long-term gas transportation agreements with three different companies, some of which are effective through 2024.
APS owns and operates more than sixty small solar systems around the state. Together they have the capacity to produce about five megawatts of renewable energy. This fleet of solar systems includes a three megawatts facility located at the Prescott Airport, a one megawatt facility located at APS’s Saguaro power plant and less than one megawatt of solar photovoltaic distributed energy systems installed as part of the Community Power Project in Flagstaff, Arizona. The Community Power Project, approved by the ACC on April 1, 2010, is a pilot program through which, upon completion, APS will own, operate and receive energy from approximately 1.5 megawatt of solar photovoltaic distributed energy systems located within a certain test area in Flagstaff, Arizona.
OVERALL
Beta: 0.58
Market Cap (Mil.): $4,727.23
Shares Outstanding (Mil.): 108.95
Annual Dividend: 2.10
Yield (%): 4.84
FINANCIALS
PNW.N Industry Sector
P/E (TTM): 15.28 22.81 22.13
EPS (TTM): 8.15 -- --
ROI: 3.14 0.96 1.23
ROE: 9.02 2.16 2.75
Name Age Since Current Position
Brandt, Donald 56 2009 Chairman of the Board, President, Chief Executive Officer
Hatfield, James 53 2010 Chief Financial Officer, Senior Vice President
Robinson, Donald 57 2009 President and Chief Operating Officer of APS
Falck, David 57 2009 Executive Vice President, General Counsel, Secretary
Danner, Denise 55 2010 Vice President, Chief Accounting Officer, Controller
Nickloy, Lee 44 2010 Vice President, Treasurer
Edington, Randall 57 2007 Executive Vice President and Chief Nuclear Officer of APS
Sundberg, Lori 47 2011 Senior Vice President - Human Resources and Ethics of APS
Schiavoni, Mark 55 2009 Senior Vice President - Fossil Operations of APS
Hatfield, John 45 2010 Vice President - Communications of APS
Munro, Kathryn 62 2000 Lead Independent Director
Herberger, Roy 68 1992 Independent Director
Lopez, Humberto 65 1995 Independent Director
Grant, Pamela 72 1985 Independent Director
Basha, Edward 73 1999 Independent Director
Gallagher, Michael 66 1999 Independent Director
Nordstrom, Bruce 61 2000 Independent Director
Parker, W. Douglas 49 2007 Independent Director
Clark-Johnson, Susan 64 2008 Independent Director
Cortese, Denis 67 2010 Independent Director
Klein, Dale 63 2010 Independent Director
COMPANY ADDRESS
Pinnacle West Capital Corp
400 North Fifth Street
P.O. Box 53999
Phoenix AZ 85072
In early 1992 the company was recast as AZX or the Arizona Stock Exchange and both the headquarters and technology trading center were moved to Phoenix, Arizona.
Restricted to use by large institutional users only, participants could conduct screen based trades of equity and other products through either direct dial-up or internet access. The Arizona Stock Exchange was structured as a proprietary "Single Price" electronic call market. Unique to the Arizona Stock Exchange was the ability to discover the best or "single" price for a stock during the auction based upon supply and demand utilizing both an open book and reserve book of equity orders. Operating under a de minimis exemption, it was not required to be registered or regulated as a stock exchange with the U.S. Securities and Exchange Commission (SEC).
The general philosophy behind the Arizona Stock Exchange was to let natural buyers and sellers of equities trade directly with one another without intermediation by a broker or dealer. The AZX sought to reduce transaction costs for its participants, remove volatility from the market and determine more robust and fair pricing for equities traded.
While the idea behind AZX was ahead of its time in the 1990s and anticipated the more successful electronic communication networks such as Archipelago, it had to close down in October 2001, due to lack of volume.
Pinnacle West Capital Corporation (Pinnacle West), incorporated in 1985, is a holding company that conducts business through its subsidiaries. The Company’s business consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission and distribution. It drives revenues and earnings from its wholly owned subsidiary, Arizona Public Service Company (APS). APS is an electric utility that provides either retail or wholesale electric service to the State of Arizona, with the major exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona. Pinnacle West’s other first-tier subsidiaries are SunCor, APSES and El Dorado.
APS provides electric service to approximately 1.1 million customers. It owns or leases more than 6,290 megawatts of regulated generation capacity and it holds a mix of both long-term and short-term purchased power agreements for additional capacity, including a variety of agreements for the purchase of renewable energy. During the year ended December 31, 2010, no single purchaser or user of energy accounted for more than 1.2% of its electric revenues.
APS has ownership interests in or leases the coal, nuclear, gas, oil and solar generating facilities. Four Corners is a 5-unit coal-fired power plant located in the north-western corner of New Mexico. APS operates the plant and owns 100% of Four Corners Units 1, 2 and 3 and 15% of Units 4 and 5. APS has a total entitlement from Four Corners of 791 MW. The Four Corners plant site is leased from the Navajo Nation and is also subject to an easement from the federal government. APS purchases all of Four Corners’ coal requirements from a supplier with a long-term lease of coal reserves with the Navajo Nation. The Four Corners coal contract runs through 2016.
Cholla is a 4-unit coal-fired power plant located in north-eastern Arizona. APS operates the plant and owns 100% of Cholla Units 1, 2 and 3. PacifiCorp owns Cholla Unit 4, and APS operates that Unit for PacifiCorp. APS has a total entitlement from Cholla of 647 megawatts. APS purchases all of Cholla’s coal requirements from a coal supplier that mines all of the coal under long-term leases of coal reserves with the federal government and private landholders. The Cholla coal contract runs through 2024.
The Navajo Plant is a 3-unit coal-fired power plant located in northern Arizona. Salt River Project operates the plant and APS owns a 14% interest in Navajo Units 1, 2 and 3. APS has a total entitlement from the Navajo Plant of 315 megawatts. The Navajo Plant’s coal requirements are purchased from a supplier with long-term leases from the Navajo Nation and the Hopi Tribe. The Navajo Plant is under contract with its coal supplier through 2011, with options to extend through 2019. The Navajo Plant site is leased from the Navajo Nation and is also subject to an easement from the federal government.
Palo Verde is a nuclear power plant located about 50 miles west of Phoenix, Arizona. APS operates the plant and owns 29.1% of Palo Verde Units 1 and 3 and about 17% of Unit 2. In addition, APS leases about 12.1% of Unit 2, resulting in a 29.1% combined interest in that Unit. APS has a total entitlement from Palo Verde of 1,146 megawatts.
APS has six natural gas power plants located throughout Arizona, consisting of Redhawk, located near the Palo Verde Nuclear Generating Station; Ocotillo, located in Tempe; Sundance, located in Coolidge; West Phoenix, located in southwest Phoenix; Saguaro, located north of Tucson, and Yucca, located near Yuma. Several of the units at Saguaro and Yucca run on either gas or oil. APS has an oil only power plant, Douglas, located in the town of Douglas, Arizona. APS owns and operates each of these plants with the exception of one combustion turbine unit and one steam unit at Yucca that are operated by APS and owned by the Imperial Irrigation District. APS has a total entitlement from these plants of 3,389 megawatts. Gas for these plants is acquired through APS’s hedging program. APS has long-term gas transportation agreements with three different companies, some of which are effective through 2024.
APS owns and operates more than sixty small solar systems around the state. Together they have the capacity to produce about five megawatts of renewable energy. This fleet of solar systems includes a three megawatts facility located at the Prescott Airport, a one megawatt facility located at APS’s Saguaro power plant and less than one megawatt of solar photovoltaic distributed energy systems installed as part of the Community Power Project in Flagstaff, Arizona. The Community Power Project, approved by the ACC on April 1, 2010, is a pilot program through which, upon completion, APS will own, operate and receive energy from approximately 1.5 megawatt of solar photovoltaic distributed energy systems located within a certain test area in Flagstaff, Arizona.
OVERALL
Beta: 0.58
Market Cap (Mil.): $4,727.23
Shares Outstanding (Mil.): 108.95
Annual Dividend: 2.10
Yield (%): 4.84
FINANCIALS
PNW.N Industry Sector
P/E (TTM): 15.28 22.81 22.13
EPS (TTM): 8.15 -- --
ROI: 3.14 0.96 1.23
ROE: 9.02 2.16 2.75
Name Age Since Current Position
Brandt, Donald 56 2009 Chairman of the Board, President, Chief Executive Officer
Hatfield, James 53 2010 Chief Financial Officer, Senior Vice President
Robinson, Donald 57 2009 President and Chief Operating Officer of APS
Falck, David 57 2009 Executive Vice President, General Counsel, Secretary
Danner, Denise 55 2010 Vice President, Chief Accounting Officer, Controller
Nickloy, Lee 44 2010 Vice President, Treasurer
Edington, Randall 57 2007 Executive Vice President and Chief Nuclear Officer of APS
Sundberg, Lori 47 2011 Senior Vice President - Human Resources and Ethics of APS
Schiavoni, Mark 55 2009 Senior Vice President - Fossil Operations of APS
Hatfield, John 45 2010 Vice President - Communications of APS
Munro, Kathryn 62 2000 Lead Independent Director
Herberger, Roy 68 1992 Independent Director
Lopez, Humberto 65 1995 Independent Director
Grant, Pamela 72 1985 Independent Director
Basha, Edward 73 1999 Independent Director
Gallagher, Michael 66 1999 Independent Director
Nordstrom, Bruce 61 2000 Independent Director
Parker, W. Douglas 49 2007 Independent Director
Clark-Johnson, Susan 64 2008 Independent Director
Cortese, Denis 67 2010 Independent Director
Klein, Dale 63 2010 Independent Director
COMPANY ADDRESS
Pinnacle West Capital Corp
400 North Fifth Street
P.O. Box 53999
Phoenix AZ 85072