Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 14, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'PINNACLE WEST CAPITAL CORP | ' | ' |
Entity Central Index Key | '0000764622 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $6,078,967,225 |
Entity Common Stock, Shares Outstanding | ' | 110,194,366 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' | ' |
OPERATING REVENUES | $3,454,628 | $3,301,804 | $3,241,379 |
OPERATING EXPENSES | ' | ' | ' |
Fuel and purchased power | 1,095,709 | 994,790 | 1,009,464 |
Operations and maintenance | 924,727 | 884,769 | 904,286 |
Depreciation and amortization | 415,708 | 404,336 | 427,054 |
Taxes other than income taxes | 164,167 | 159,323 | 147,408 |
Other expenses | 7,994 | 6,831 | 6,659 |
Total | 2,608,305 | 2,450,049 | 2,494,871 |
OPERATING INCOME | 846,323 | 851,755 | 746,508 |
OTHER INCOME (DEDUCTIONS) | ' | ' | ' |
Allowance for equity funds used during construction (Note 1) | 25,581 | 22,436 | 23,707 |
Other income (Note 18) | 1,704 | 1,606 | 3,111 |
Other expense (Note 18) | -16,024 | -19,842 | -10,451 |
Total | 11,261 | 4,200 | 16,367 |
INTEREST EXPENSE | ' | ' | ' |
Interest charges | 201,888 | 214,616 | 241,995 |
Allowance for borrowed funds used during construction (Note 1) | -14,861 | -14,971 | -18,358 |
Total | 187,027 | 199,645 | 223,637 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 670,557 | 656,310 | 539,238 |
INCOME TAXES (Note 4) | 230,591 | 237,317 | 183,604 |
INCOME FROM CONTINUING OPERATIONS | 439,966 | 418,993 | 355,634 |
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | ' | ' | ' |
Net of income tax expense (benefit) of $--, $(3,813) and $7,418 (Note 1) | ' | -5,829 | 11,306 |
NET INCOME | 439,966 | 413,164 | 366,940 |
Less: Net income attributable to noncontrolling interests (Note 19) | 33,892 | 31,622 | 27,467 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 406,074 | 381,542 | 339,473 |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC (in shares) | 109,984 | 109,510 | 109,053 |
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - DILUTED (in shares) | 110,806 | 110,527 | 109,864 |
EARNINGS PER WEIGHTED - AVERAGE COMMON SHARE OUTSTANDING | ' | ' | ' |
Income from continuing operations attributable to common shareholders - basic (in dollars per share) | $3.69 | $3.54 | $3.01 |
Net income attributable to common shareholders - basic (in dollars per share) | $3.69 | $3.48 | $3.11 |
Income from continuing operations attributable to common shareholders - diluted (in dollars per share) | $3.66 | $3.50 | $2.99 |
Net income attributable to common shareholders - diluted (in dollars per share) | $3.66 | $3.45 | $3.09 |
AMOUNTS ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ' | ' | ' |
Income from continuing operations, net of tax | 406,074 | 387,380 | 328,110 |
Discontinued operations, net of tax | ' | -5,838 | 11,363 |
Net income attributable to common shareholders | $406,074 | $381,542 | $339,473 |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' |
Income tax expense (benefit) on discontinued operations | ($3,813) | $7,418 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
NET INCOME | $439,966 | $413,164 | $366,940 |
Derivative instruments: | ' | ' | ' |
Net unrealized loss, net of tax benefit of $140, $14,900, and $37,389 (Note 17) | -213 | -22,763 | -57,271 |
Reclassification of net realized loss, net of tax benefit of $17,472, $39,120, and $46,288 (Note 17) | 26,747 | 59,887 | 70,902 |
Pension and other postretirement benefits activity, net of tax (expense) benefit of $(6,156), $(651), and $3,935 (Note 8) | 9,421 | 1,031 | -6,026 |
Total other comprehensive income | 35,955 | 38,155 | 7,605 |
COMPREHENSIVE INCOME | 475,921 | 451,319 | 374,545 |
Less: Comprehensive income attributable to noncontrolling interests | 33,892 | 31,622 | 27,467 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $442,029 | $419,697 | $347,078 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net unrealized loss, tax benefit | $140 | $14,900 | $37,389 |
Reclassification of net realized loss, tax benefit | 17,472 | 39,120 | 46,288 |
Pension and other postretirement benefits activity, tax (expense) benefit | ($6,156) | ($651) | $3,935 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $9,526 | $26,202 |
Customer and other receivables | 299,904 | 277,225 |
Accrued unbilled revenues | 96,796 | 94,845 |
Allowance for doubtful accounts | -3,203 | -3,340 |
Materials and supplies (at average cost) | 221,682 | 218,096 |
Fossil fuel (at average cost) | 38,028 | 31,334 |
Deferred income taxes (Note 4) | 91,152 | 152,191 |
Income tax receivable (Note 4) | 135,517 | 2,423 |
Assets from risk management activities (Note 17) | 17,169 | 25,699 |
Deferred fuel and purchased power regulatory asset (Note 3) | 20,755 | 72,692 |
Other regulatory assets (Note 3) | 76,388 | 71,257 |
Other current assets | 39,895 | 37,102 |
Total current assets | 1,043,609 | 1,005,726 |
INVESTMENTS AND OTHER ASSETS | ' | ' |
Assets from risk management activities (Note 17) | 23,815 | 35,891 |
Nuclear decommissioning trust (Notes 14 and 20) | 642,007 | 570,625 |
Other assets | 60,875 | 62,694 |
Total investments and other assets | 726,697 | 669,210 |
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6 and 10) | ' | ' |
Plant in service and held for future use | 15,200,464 | 14,346,367 |
Accumulated depreciation and amortization | -5,300,219 | -4,929,613 |
Net | 9,900,245 | 9,416,754 |
Construction work in progress | 581,369 | 565,716 |
Palo Verde sale leaseback, net of accumulated depreciation of $225,925 and $222,055 (Note 19) | 125,125 | 128,995 |
Intangible assets, net of accumulated amortization of $439,703 and $411,543 | 157,689 | 162,150 |
Nuclear fuel, net of accumulated amortization of $146,057 and $133,950 | 124,557 | 122,778 |
Total property, plant and equipment | 10,888,985 | 10,396,393 |
DEFERRED DEBITS | ' | ' |
Regulatory assets (Notes 1, 3 and 4) | 711,712 | 1,099,900 |
Income tax receivable (Note 4) | ' | 70,389 |
Other | 137,683 | 137,997 |
Total deferred debits | 849,395 | 1,308,286 |
TOTAL ASSETS | 13,508,686 | 13,379,615 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 284,516 | 221,312 |
Accrued taxes (Note 4) | 130,998 | 124,939 |
Accrued interest | 48,351 | 49,380 |
Common dividends payable | 62,528 | 59,789 |
Short-term borrowings (Note 5) | 153,125 | 92,175 |
Current maturities of long-term debt (Note 6) | 540,424 | 122,828 |
Customer deposits | 76,101 | 79,689 |
Liabilities from risk management activities (Note 17) | 31,892 | 73,741 |
Liability for asset retirements (Note 12) | 32,896 | ' |
Regulatory liabilities (Note 3) | 99,273 | 88,116 |
Other current liabilities | 158,540 | 171,573 |
Total current liabilities | 1,618,644 | 1,083,542 |
LONG-TERM DEBT LESS CURRENT MATURITIES (Note 6) | 2,796,465 | 3,199,088 |
DEFERRED CREDITS AND OTHER | ' | ' |
Deferred income taxes (Note 4) | 2,351,882 | 2,151,371 |
Regulatory liabilities (Notes 1, 3 and 4) | 801,297 | 759,201 |
Liability for asset retirements (Note 12) | 313,833 | 357,097 |
Liabilities for pension and other postretirement benefits (Note 8) | 513,628 | 1,058,755 |
Liabilities from risk management activities (Note 17) | 70,315 | 85,264 |
Customer advances | 114,480 | 109,359 |
Coal mine reclamation | 207,453 | 118,860 |
Deferred investment tax credit | 152,361 | 99,819 |
Unrecognized tax benefits (Note 4) | 42,209 | 71,135 |
Other | 185,659 | 183,835 |
Total deferred credits and other | 4,753,117 | 4,994,696 |
COMMITMENTS AND CONTINGENCIES (SEE NOTES) | ' | ' |
EQUITY (Note 7) | ' | ' |
Common stock, no par value; authorized 150,000,000 shares, issued 110,280,703 at end of 2013 and 109,837,957 at end of 2012 | 2,491,558 | 2,466,923 |
Treasury stock at cost; 98,944 shares at end of 2013 and 95,192 shares at end of 2012 | -4,308 | -4,211 |
Total common stock | 2,487,250 | 2,462,712 |
Retained earnings | 1,785,273 | 1,624,102 |
Accumulated other comprehensive loss: | ' | ' |
Pension and other postretirement benefits (Note 8) | -54,995 | -64,416 |
Derivative instruments (Note 17) | -23,058 | -49,592 |
Total accumulated other comprehensive loss | -78,053 | -114,008 |
Total shareholders' equity | 4,194,470 | 3,972,806 |
Noncontrolling interests (Note 19) | 145,990 | 129,483 |
Total equity | 4,340,460 | 4,102,289 |
TOTAL LIABILITIES AND EQUITY | $13,508,686 | $13,379,615 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6 and 10) | ' | ' |
Accumulated depreciation of Palo Verde sale leaseback | $225,925 | $222,055 |
Accumulated amortization on intangible assets | 439,703 | 411,543 |
Accumulated amortization on nuclear fuel | $146,057 | $133,950 |
EQUITY (Note 7) | ' | ' |
Common stock, par value | ' | ' |
Common stock, authorized shares | 150,000,000 | 150,000,000 |
Common stock, issued shares | 110,280,703 | 109,837,957 |
Treasury stock at cost, shares | 98,944 | 95,192 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net Income | $439,966 | $413,164 | $366,940 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Gain on sale of energy-related products and services business | ' | ' | -10,404 |
Depreciation and amortization including nuclear fuel | 492,322 | 481,262 | 493,784 |
Deferred fuel and purchased power | 21,678 | 71,573 | 69,166 |
Deferred fuel and purchased power amortization | 31,190 | -116,716 | -155,157 |
Allowance for equity funds used during construction | -25,581 | -22,436 | -23,707 |
Deferred income taxes | 249,296 | 187,023 | 117,952 |
Deferred investment tax credit | 52,542 | 41,579 | 58,240 |
Change in derivative instruments fair value | 534 | -749 | 4,064 |
Changes in current assets and liabilities: | ' | ' | ' |
Customer and other receivables | -44,991 | 14,587 | 40,626 |
Accrued unbilled revenues | -1,951 | 30,394 | -21,947 |
Materials, supplies and fossil fuel | -11,878 | -23,043 | -23,398 |
Income tax receivable | -133,094 | -4,043 | 3,983 |
Other current assets | -17,913 | -27,352 | -3,079 |
Accounts payable | 45,414 | -96,600 | 58,346 |
Accrued taxes | 6,059 | 12,736 | 8,085 |
Other current liabilities | -7,513 | 23,869 | 20,358 |
Change in margin and collateral accounts - assets | 993 | 2,216 | 33,349 |
Change in margin and collateral accounts - liabilities | 12,355 | 137,785 | 29,731 |
Change in long term income tax receivable | 137,270 | -1,756 | -3,530 |
Change in unrecognized tax benefits | -91,425 | -2,583 | 8,410 |
Change in other regulatory liabilities | 64,473 | 13,539 | 37,009 |
Change in other long-term assets | -41,757 | 6,872 | -41,722 |
Change in other long-term liabilities | -24,682 | 29,801 | 58,484 |
Net cash flow provided by operating activities | 1,153,307 | 1,171,122 | 1,125,583 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -1,016,322 | -889,551 | -884,350 |
Contributions in aid of construction | 41,090 | 49,876 | 38,096 |
Allowance for borrowed funds used during construction | -14,861 | -14,971 | -18,358 |
Proceeds from sale of energy-related products and services business | 0 | ' | 45,111 |
Proceeds from nuclear decommissioning trust sales | 446,025 | 417,603 | 497,780 |
Investment in nuclear decommissioning trust | -463,274 | -434,852 | -513,799 |
Proceeds from sale of life insurance policies | ' | ' | 55,444 |
Other | -2,059 | -1,099 | -1,931 |
Net cash flow used for investing activities | -1,009,401 | -872,994 | -782,007 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Issuance of long-term debt | 136,307 | 476,081 | 470,353 |
Repayment of long-term debt | -122,828 | -654,286 | -655,169 |
Short-term borrowings and payments - net | 60,950 | 92,175 | -16,600 |
Dividends paid on common stock | -235,244 | -225,075 | -221,728 |
Common stock equity issuance | 17,319 | 15,955 | 15,841 |
Distributions to noncontrolling interests | -17,385 | -10,529 | -10,210 |
Other | 299 | 170 | -2,668 |
Net cash flow used for financing activities | -160,582 | -305,509 | -420,181 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -16,676 | -7,381 | -76,605 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 26,202 | 33,583 | 110,188 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $9,526 | $26,202 | $33,583 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | COMMON STOCK (Note 7) | TREASURY STOCK (Note 7) | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NONCONTROLLING INTERESTS | COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2010 | ' | $2,421,372 | ($2,239) | $1,423,961 | ($159,767) | $91,899 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | 22,875 | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | -3,720 | ' | ' | ' | ' |
Reissuance of treasury stock used for stock compensation | ' | ' | 1,242 | ' | ' | ' | ' |
Net income attributable to common shareholders | 339,473 | ' | ' | 339,473 | ' | ' | 339,473 |
Common stock dividends declared ($2.23, $2.67, and $ 2.10 per share) | ' | ' | ' | -228,951 | ' | ' | ' |
Net income attributable to noncontrolling interests | -27,467 | ' | ' | ' | ' | 27,467 | ' |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | -10,630 | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 7,605 | ' | ' | ' | 7,604 | ' | 7,605 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 347,078 | ' | ' | ' | ' | ' | 347,078 |
Balance at Dec. 31, 2011 | 3,930,586 | 2,444,247 | -4,717 | 1,534,483 | -152,163 | 108,736 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | 22,676 | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | -4,607 | ' | ' | ' | ' |
Reissuance of treasury stock used for stock compensation | ' | ' | 5,113 | ' | ' | ' | ' |
Net income attributable to common shareholders | 381,542 | ' | ' | 381,542 | ' | ' | 381,542 |
Common stock dividends declared ($2.23, $2.67, and $ 2.10 per share) | ' | ' | ' | -291,923 | ' | ' | ' |
Net income attributable to noncontrolling interests | -31,622 | ' | ' | ' | ' | 31,622 | ' |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | -10,875 | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 38,155 | ' | ' | ' | 38,155 | ' | 38,155 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 419,697 | ' | ' | ' | ' | ' | 419,697 |
Balance at Dec. 31, 2012 | 4,102,289 | 2,466,923 | -4,211 | 1,624,102 | -114,008 | 129,483 | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' |
Issuance of common stock | ' | 24,635 | ' | ' | ' | ' | ' |
Purchase of treasury stock | ' | ' | -9,727 | ' | ' | ' | ' |
Reissuance of treasury stock used for stock compensation | ' | ' | 9,630 | ' | ' | ' | ' |
Net income attributable to common shareholders | 406,074 | ' | ' | 406,074 | ' | ' | 406,074 |
Common stock dividends declared ($2.23, $2.67, and $ 2.10 per share) | ' | ' | ' | -244,903 | ' | ' | ' |
Net income attributable to noncontrolling interests | -33,892 | ' | ' | ' | ' | 33,892 | ' |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | -17,385 | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 35,955 | ' | ' | ' | 35,955 | ' | 35,955 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 442,029 | ' | ' | ' | ' | ' | 442,029 |
Balance at Dec. 31, 2013 | $4,340,460 | $2,491,558 | ($4,308) | $1,785,273 | ($78,053) | $145,990 | ' |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY | ' | ' | ' |
Common stock dividends declared (in dollars per share) | $2.23 | $2.67 | $2.10 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
1. Summary of Significant Accounting Policies | |||||||||||
Description of Business and Basis of Presentation | |||||||||||
Pinnacle West is a holding company that conducts business through its subsidiaries, APS and El Dorado, and formerly SunCor and APSES. APS, our wholly-owned subsidiary, is a vertically-integrated electric utility that provides either retail or wholesale electric service to substantially all of 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. APS accounts for essentially all of our revenues and earnings, and is expected to continue to do so. SunCor was a developer of residential, commercial and industrial real estate projects and essentially all of these assets were sold in 2009 and 2010. In February 2012, SunCor filed for protection under the United States Bankruptcy Code to complete an orderly liquidation of its business. All activities for SunCor are reported as discontinued operations. APSES provided energy-related projects to commercial and industrial retail customers in competitive markets in the western United States. APSES was sold in 2011 and is reported as discontinued operations. El Dorado is an investment firm. | |||||||||||
Pinnacle West’s Consolidated Financial Statements include the accounts of Pinnacle West and our subsidiaries: APS and El Dorado, and formerly SunCor and APSES. APS’s consolidated financial statements include the accounts of APS and certain VIEs relating to the Palo Verde sale leaseback. Intercompany accounts and transactions between the consolidated companies have been eliminated. | |||||||||||
We consolidate VIEs for which we are the primary beneficiary. We determine whether we are the primary beneficiary of a VIE through a qualitative analysis that identifies which variable interest holder has the controlling financial interest in the VIE. In performing our primary beneficiary analysis, we consider all relevant facts and circumstances, including the design and activities of the VIE, the terms of the contracts the VIE has entered into, and which parties participated significantly in the design or redesign of the entity. We continually evaluate our primary beneficiary conclusions to determine if changes have occurred which would impact our primary beneficiary assessments. We have determined that APS is the primary beneficiary of certain VIE lessor trusts relating to the Palo Verde sale leaseback, and therefore APS consolidates these entities (see Note 19). | |||||||||||
Our consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise disclosed in the notes) that we believe are necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. | |||||||||||
Certain line items are presented in more detail on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows than was presented in the prior years. Other line items are more condensed than the previous presentation. The prior year amounts were reclassified to conform to the current year presentation. These reclassifications had no impact on total assets or net cash flow provided by operating activities. The following tables show the impacts of the reclassifications of prior years (previously reported) amounts (dollars in thousands): | |||||||||||
Balance Sheets - December 31, 2012 | As | Reclassifications to | Amount reported | ||||||||
previously | conform to current year | after reclassification | |||||||||
reported | presentation | to conform to current | |||||||||
year presentation | |||||||||||
Long-Term Debt less Current Maturities — | |||||||||||
Long-term debt less current maturities | $ | 3,160,219 | $ | 38,869 | $ | 3,199,088 | |||||
Long-Term Debt less Current Maturities — | |||||||||||
Palo Verde sale leaseback lessor notes less | |||||||||||
current maturities | 38,869 | (38,869 | ) | — | |||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2012 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current | ||||||||||
year presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 228,602 | $ | (41,579 | ) | $ | 187,023 | ||||
Deferred investment tax credit | — | 41,579 | 41,579 | ||||||||
Accrued taxes and income tax receivable | 8,693 | (8,693 | ) | — | |||||||
Income tax receivable | — | (4,043 | ) | (4,043 | ) | ||||||
Accrued taxes | — | 12,736 | 12,736 | ||||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2011 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current year | ||||||||||
presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 176,192 | $ | (58,240 | ) | $ | 117,952 | ||||
Deferred investment tax credit | — | 58,240 | 58,240 | ||||||||
Accrued taxes and income tax receivable | 12,068 | (12,068 | ) | — | |||||||
Income tax receivable | — | 3,983 | 3,983 | ||||||||
Accrued taxes | — | 8,085 | 8,085 | ||||||||
Accounting Records and Use of Estimates | |||||||||||
Our accounting records are maintained in accordance with GAAP. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
Regulatory Accounting | |||||||||||
APS is regulated by the ACC and FERC. The accompanying financial statements reflect the rate-making policies of these commissions. As a result, we capitalize certain costs that would be included as expense in the current period by unregulated companies. Regulatory assets represent incurred costs that have been deferred because they are probable of future recovery in customer rates. Regulatory liabilities generally represent expected future costs that have already been collected from customers. | |||||||||||
Management continually assesses whether our regulatory assets are probable of future recovery by considering factors such as changes in the applicable regulatory environment and recent rate orders applicable to APS or other regulated entities in the same jurisdiction. This determination reflects the current political and regulatory climate in Arizona and is subject to change in the future. If future recovery of costs ceases to be probable, the assets would be written off as a charge in current period earnings. | |||||||||||
See Note 3 for additional information. | |||||||||||
Electric Revenues | |||||||||||
We derive electric revenues primarily from sales of electricity to our regulated Native Load customers. Revenues related to the sale of electricity are generally recorded when service is rendered or electricity is delivered to customers. The billing of electricity sales to individual Native Load customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. Unbilled revenues are estimated by applying an average revenue/kWh by customer class to the number of estimated kWhs delivered but not billed. Differences historically between the actual and estimated unbilled revenues are immaterial. We exclude sales taxes and franchise fees on electric revenues from both revenue and taxes other than income taxes. | |||||||||||
Revenues from our Native Load customers and non-derivative instruments are reported on a gross basis on Pinnacle West’s Consolidated Statements of Income. In the electricity business, some contracts to purchase energy are netted against other contracts to sell energy. This is called a “book-out” and usually occurs for contracts that have the same terms (quantities and delivery points) and for which power does not flow. We net these book-outs, which reduces both revenues and fuel and purchased power costs. | |||||||||||
For the period January 1, 2010 through June 30, 2012, electric revenues also include proceeds for line extension payments for new or upgraded service in accordance with the 2009 Settlement Agreement (see Note 3). Effective July 1, 2012, as a result of the 2012 Settlement Agreement, these amounts are now recorded as contributions in aid of construction and are not included in electric revenues. | |||||||||||
Some of our cost recovery mechanisms are alternative revenue programs. For alternative revenue programs that meet specified accounting criteria, we recognize revenues when the specific events permitting billing of the additional revenues have been completed. | |||||||||||
Allowance for Doubtful Accounts | |||||||||||
The allowance for doubtful accounts represents our best estimate of existing accounts receivable that will ultimately be uncollectible. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including accrued utility revenues. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collections success given the existing collections environment. | |||||||||||
Property, Plant and Equipment | |||||||||||
Utility plant is the term we use to describe the business property and equipment that supports electric service, consisting primarily of generation, transmission and distribution facilities. We report utility plant at its original cost, which includes: | |||||||||||
· material and labor; | |||||||||||
· contractor costs; | |||||||||||
· capitalized leases; | |||||||||||
· construction overhead costs (where applicable); and | |||||||||||
· allowance for funds used during construction. | |||||||||||
We expense the costs of plant outages, major maintenance and routine maintenance as incurred. We charge retired utility plant to accumulated depreciation. Liabilities associated with the retirement of tangible long-lived assets are recognized at fair value as incurred and capitalized as part of the related tangible long-lived assets. Accretion of the liability due to the passage of time is an operating expense, and the capitalized cost is depreciated over the useful life of the long-lived asset. See Note 12. | |||||||||||
APS records a regulatory liability on its regulated assets for the difference between the amount that has been recovered in regulated rates and the amount calculated in accordance with guidance on accounting for asset retirement obligations. APS believes it can recover in regulated rates the costs calculated in accordance with this accounting guidance. | |||||||||||
We record depreciation on utility plant on a straight-line basis over the remaining useful life of the related assets. The approximate remaining average useful lives of our utility property at December 31, 2013 were as follows: | |||||||||||
· Fossil plant — 18 years; | |||||||||||
· Nuclear plant — 26 years; | |||||||||||
· Other generation — 26 years; | |||||||||||
· Transmission — 37 years; | |||||||||||
· Distribution — 34 years; and | |||||||||||
· Other — 7 years. | |||||||||||
APS applied for twenty-year extensions of its operating licenses for each of the three Palo Verde units in December 2008. On April 21, 2011, the NRC approved the extensions of the Palo Verde licenses. The nuclear plant remaining life takes into consideration an ACC decision which authorizes the use of the new Palo Verde nuclear plant lives, effective January 1, 2012. | |||||||||||
Pursuant to an ACC order, we defer operating costs related to APS’s acquisition of additional interests in Units 4 and 5 and the related closure of Units 1-3 of Four Corners. See Note 3 for further discussion. These costs are deferred on the depreciation line of the Consolidated Statements of Income. | |||||||||||
For the years 2011 through 2013, the depreciation rates ranged from a low of 0.45% to a high of 12.08%. The weighted-average rate was 3.00% for 2013, 2.71% for 2012, and 2.98% for 2011. | |||||||||||
Allowance for Funds Used During Construction | |||||||||||
AFUDC represents the approximate net composite interest cost of borrowed funds and an allowed return on the equity funds used for construction of regulated utility plant. Both the debt and equity components of AFUDC are non-cash amounts within the Consolidated Statement of Income. Plant construction costs, including AFUDC, are recovered in authorized rates through depreciation when completed projects are placed into commercial operation. | |||||||||||
AFUDC was calculated by using a composite rate of 8.56% for 2013, 8.60% for 2012, and 10.25% for 2011. APS compounds AFUDC semi-annually and ceases to accrue AFUDC when construction work is completed and the property is placed in service. | |||||||||||
Materials and Supplies | |||||||||||
APS values materials, supplies and fossil fuel inventory using a weighted-average cost method. APS materials, supplies and fossil fuel inventories are carried at the lower of weighted-average cost or market, unless evidence indicates that the weighted-average cost (even if in excess of market) will be recovered. | |||||||||||
Fair Value Measurements | |||||||||||
We account for derivative instruments, investments held in our nuclear decommissioning trust, certain cash equivalents and plan assets held in our retirement and other benefit plans at fair value on a recurring basis. Due to the short-term nature of net accounts receivable, accounts payable, and short-term borrowings, the carrying values of these instruments approximate fair value. Fair value measurements may also be applied on a nonrecurring basis to other assets and liabilities in certain circumstances such as impairments. We also disclose fair value information for our long-term debt, which is carried at amortized cost (see Note 6). | |||||||||||
Fair value is the price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market which we can access for the asset or liability in an orderly transaction between willing market participants on the measurement date. Inputs to fair value may include observable and unobservable data. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||
We determine fair market value using observable inputs such as actively-quoted prices for identical instruments when available. When actively quoted prices are not available for the identical instruments, we use other observable inputs, such as prices for similar instruments, other corroborative market information, or prices provided by other external sources. For options, long-term contracts and other contracts for which observable price data are not available, we use models and other valuation methods, which may incorporate unobservable inputs to determine fair market value. | |||||||||||
The use of models and other valuation methods to determine fair market value often requires subjective and complex judgment. Actual results could differ from the results estimated through application of these methods. | |||||||||||
See Note 14 for additional information about fair value measurements. | |||||||||||
Derivative Accounting | |||||||||||
We are exposed to the impact of market fluctuations in the commodity price and transportation costs of electricity, natural gas, coal, emission allowances and in interest rates. We manage risks associated with market volatility by utilizing various physical and financial instruments including futures, forwards, options and swaps. As part of our overall risk management program, we may use derivative instruments to hedge purchases and sales of electricity and fuels. The changes in market value of such contracts have a high correlation to price changes in the hedged transactions. We also enter into derivative instruments for economic hedging purposes. Contracts that have the same terms (quantities, delivery points and delivery periods) and for which power does not flow are netted, which reduces both revenues and fuel and purchased power expenses in our Consolidated Statements of Income, but does not impact our financial condition, net income or cash flows. | |||||||||||
We account for our derivative contracts in accordance with derivatives and hedging guidance, which requires all derivatives not qualifying for a scope exception to be measured at fair value on the balance sheet as either assets or liabilities. Transactions with counterparties that have master netting arrangements are reported net on the balance sheet. See Note 17 for additional information about our derivative instruments. | |||||||||||
Loss Contingencies and Environmental Liabilities | |||||||||||
Pinnacle West and APS are involved in certain legal and environmental matters that arise in the normal course of business. Contingent losses and environmental liabilities are recorded when it is determined that it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. When a range of the probable loss exists and no amount within the range is a better estimate than any other amount, Pinnacle West and APS record a loss contingency at the minimum amount in the range. Unless otherwise required by GAAP, legal fees are expensed as incurred. | |||||||||||
Retirement Plans and Other Benefits | |||||||||||
Pinnacle West sponsors a qualified defined benefit and account balance pension plan for the employees of Pinnacle West and its subsidiaries. We also sponsor an other postretirement benefit plan for the employees of Pinnacle West and our subsidiaries that provides medical and life insurance benefits to retired employees. Pension and other postretirement benefit expense are determined by actuarial valuations, based on assumptions that are evaluated annually. See Note 8 for additional information on pension and other postretirement benefits. | |||||||||||
Nuclear Fuel | |||||||||||
APS amortizes nuclear fuel by using the unit-of-production method. The unit-of-production method is based on actual physical usage. APS divides the cost of the fuel by the estimated number of thermal units it expects to produce with that fuel. APS then multiplies that rate by the number of thermal units produced within the current period. This calculation determines the current period nuclear fuel expense. | |||||||||||
APS also charges nuclear fuel expense for the interim storage and permanent disposal of spent nuclear fuel. The DOE is responsible for the permanent disposal of spent nuclear fuel and charges APS $0.001 per kWh of nuclear generation. See Note 11 for information on spent nuclear fuel disposal costs. | |||||||||||
Income Taxes | |||||||||||
Income taxes are provided using the asset and liability approach prescribed by guidance relating to accounting for income taxes. We file our federal income tax return on a consolidated basis, and we file our state income tax returns on a consolidated or unitary basis. In accordance with our intercompany tax sharing agreement, federal and state income taxes are allocated to each first-tier subsidiary as though each first-tier subsidiary filed a separate income tax return. Any difference between that method and the consolidated (and unitary) income tax liability is attributed to the parent company. The income tax accounts reflect the tax and interest associated with management’s estimate of the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement for all known and measurable tax exposures (see Note 4). | |||||||||||
Cash and Cash Equivalents | |||||||||||
We consider all highly liquid investments with a remaining maturity of three months or less at acquisition to be cash equivalents. | |||||||||||
The following table summarizes supplemental Pinnacle West cash flow information for each of the last three years (dollars in thousands): | |||||||||||
Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash paid during the period for: | |||||||||||
Income taxes, net of refunds | $ | 18,537 | $ | 2,543 | $ | 10,324 | |||||
Interest, net of amounts capitalized | 184,010 | 200,923 | 217,789 | ||||||||
Significant non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | 33,184 | $ | 26,208 | $ | 27,245 | |||||
Dividends declared but not paid | 62,528 | 59,789 | — | ||||||||
Liabilities assumed relating to acquisition of SCE Four Corners’ interest (see Note 3) | 145,609 | — | — | ||||||||
Intangible Assets | |||||||||||
We have no goodwill recorded and have separately disclosed other intangible assets, primarily APS’s software, on Pinnacle West’s Consolidated Balance Sheets. The intangible assets are amortized over their finite useful lives. Amortization expense was $53 million in 2013, $50 million in 2012, and $47 million in 2011. Estimated amortization expense on existing intangible assets over the next five years is $47 million in 2014, $38 million in 2015, $29 million in 2016, $19 million in 2017, and $7 million in 2018. At December 31, 2013, the weighted-average remaining amortization period for intangible assets was 6 years. | |||||||||||
Investments | |||||||||||
El Dorado accounts for its investments using either the equity method (if significant influence) or the cost method (if less than 20% ownership). | |||||||||||
Our investments in the nuclear decommissioning trust fund are accounted for in accordance with guidance on accounting for certain investments in debt and equity securities. See Note 14 and Note 20 for more information on these investments. | |||||||||||
Business Segments | |||||||||||
Pinnacle West’s reportable business segment is our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electricity service to Native Load customers) and related activities and includes electricity generation, transmission and distribution. All other segment activities are insignificant. | |||||||||||
New_Accounting_Standards
New Accounting Standards | 12 Months Ended |
Dec. 31, 2013 | |
New Accounting Standards | ' |
New Accounting Standards | ' |
2. New Accounting Standards | |
During 2013, we adopted, on a retrospective basis, new guidance relating to balance sheet offsetting disclosures. The new guidance requires enhanced disclosures regarding an entity’s ability to offset certain instruments on the balance sheet and how offsetting impacts the balance sheet. The adoption of this guidance resulted in expanded disclosures relating to our derivative instruments (see Note 17), but did not impact our financial statement results. | |
During 2013, we also adopted, on a prospective basis, new guidance relating to reporting amounts reclassified from accumulated other comprehensive income. This guidance requires new disclosures relating to accumulated other comprehensive income and how reclassifications from accumulated other comprehensive income impact net income. As a result of adopting this new guidance, we have included a new footnote disclosure to provide the information required by the new standard (see Notes 21 and S-4). The adoption of this guidance did not impact our financial statement results. | |
In July 2013, new guidance was issued which will generally require entities to present unrecognized tax benefits as a reduction to any available deferred tax asset for a net operating loss, a similar tax loss, or a tax credit carryforward. The intent of this guidance is to eliminate diversity in practice in the presentation of certain unrecognized tax benefits. The new guidance is effective for us during the first quarter of 2014, and is permitted to be adopted using either a prospective or retrospective application. Currently, we do not present unrecognized tax benefits as a reduction to deferred tax asset carryforwards on the balance sheet. As a result, the adoption of this new guidance will impact our balance sheet presentation; however, we do not expect these presentation changes to be material to our balance sheet. The adoption of this new guidance will not impact our results of operations or cash flows. | |
Regulatory_Matters
Regulatory Matters | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Regulatory Matters | ' | |||||||||||||||
Regulatory Matters | ' | |||||||||||||||
3. Regulatory Matters | ||||||||||||||||
Retail Rate Case Filing with the Arizona Corporation Commission | ||||||||||||||||
On June 1, 2011, APS filed an application with the ACC for a net retail base rate increase of $95.5 million. APS requested that the increase become effective July 1, 2012. The request would have increased the average retail customer bill by approximately 6.6%. On January 6, 2012, APS and other parties to the general retail rate case entered into the 2012 Settlement Agreement detailing the terms upon which the parties agreed to settle the rate case. On May 15, 2012, the ACC approved the 2012 Settlement Agreement without material modifications. | ||||||||||||||||
Settlement Agreement | ||||||||||||||||
The 2012 Settlement Agreement provides for a zero net change in base rates, consisting of: (1) a non-fuel base rate increase of $116.3 million; (2) a fuel-related base rate decrease of $153.1 million (to be implemented by a change in the Base Fuel Rate from $0.03757 to $0.03207 per kWh; and (3) the transfer of cost recovery for certain renewable energy projects from the RES surcharge to base rates in an estimated amount of $36.8 million. | ||||||||||||||||
APS also agreed not to file its next general rate case before May 31, 2015, and not to request that its next general retail rate increase be effective prior to July 1, 2016. The 2012 Settlement Agreement allows APS to request a change to its base rates during the stay-out period in the event of an extraordinary event that, in the ACC’s judgment, requires base rate relief in order to protect the public interest. Nor is APS precluded from seeking rate relief, or any other party to the 2012 Settlement Agreement precluded from petitioning the ACC to examine the reasonableness of APS’s rates, in the event of significant regulatory developments that materially impact the financial results expected under the terms of the 2012 Settlement Agreement. | ||||||||||||||||
Other key provisions of the 2012 Settlement Agreement include the following: | ||||||||||||||||
· An authorized return on common equity of 10.0%; | ||||||||||||||||
· A capital structure comprised of 46.1% debt and 53.9% common equity; | ||||||||||||||||
· A test year ended December 31, 2010, adjusted to include plant that is in service as of March 31, 2012; | ||||||||||||||||
· Deferral for future recovery or refund of property taxes above or below a specified 2010 test year level caused by changes to the Arizona property tax rate as follows: | ||||||||||||||||
· Deferral of 25% in 2012, 50% in 2013 and 75% for 2014 and subsequent years if Arizona property tax rates increase; and | ||||||||||||||||
· Deferral of 100% in all years if Arizona property tax rates decrease; | ||||||||||||||||
· A procedure to allow APS to request rate adjustments prior to its next general rate case related to APS’s acquisition of additional interests in Units 4 and 5 and the related closure of Units 1-3 of Four Corners (APS made its filing under this provision on December 30, 2013, which would result in an average bill impact to residential customers of approximately 2% if approved as requested); | ||||||||||||||||
· Implementation of a “Lost Fixed Cost Recovery” rate mechanism to support energy efficiency and distributed renewable generation; | ||||||||||||||||
· Modifications to the Environmental Improvement Surcharge to allow for the recovery of carrying costs for capital expenditures associated with government-mandated environmental controls, subject to an existing cents per kWh cap on cost recovery that could produce up to approximately $5 million in revenues annually; | ||||||||||||||||
· Modifications to the PSA, including the elimination of the 90/10 sharing provision; | ||||||||||||||||
· A limitation on the use of the RES surcharge and the DSMAC to recoup capital expenditures not required under the terms of the 2009 Settlement Agreement discussed below; | ||||||||||||||||
· Allowing a negative credit that existed in the PSA rate to continue until February 2013, rather than being reset on the anticipated July 1, 2012 rate effective date; | ||||||||||||||||
· Modification of the TCA to streamline the process for future transmission-related rate changes; and | ||||||||||||||||
· Implementation of various changes to rate schedules, including the adoption of an experimental “buy-through” rate that could allow certain large commercial and industrial customers to select alternative sources of generation to be supplied by APS. | ||||||||||||||||
The 2012 Settlement Agreement was approved by the ACC on May 15, 2012, with new rates effective on July 1, 2012. This accomplished a goal set by the parties to the 2009 Settlement Agreement to process subsequent rate cases within twelve months of sufficiency findings from the ACC staff, which generally occurs within 30 days after the filing of a rate case. | ||||||||||||||||
2008 General Retail Rate Case On-Going Impacts | ||||||||||||||||
On December 30, 2009, the ACC issued an order approving the 2009 Settlement Agreement entered into by APS and twenty-one other parties. The 2009 Settlement Agreement contains certain on-going requirements, commitments and authorizations that will survive the 2012 Settlement Agreement, including the following: | ||||||||||||||||
· A commitment from APS to reduce average annual operational expenses by at least $30 million from 2010 through 2014; | ||||||||||||||||
· Authorization and requirements of equity infusions into APS of $700 million during the period beginning June 1, 2009 through December 31, 2014 and compliance with various financial conditions, including the maintenance of a prescribed capital structure (APS was able to meet these conditions without the need for additional equity infusions beyond the $253 million infused into APS in the second quarter of 2010); and | ||||||||||||||||
· Renewable energy programs that require APS to expand its use of renewable energy through 2015, as well as allow for concurrent recovery of renewable energy expenses. | ||||||||||||||||
Cost Recovery Mechanisms | ||||||||||||||||
APS has received regulatory decisions that allow for more timely recovery of certain costs through the following recovery mechanisms. | ||||||||||||||||
Renewable Energy Standard. In 2006, the ACC approved the RES. Under the RES, electric utilities that are regulated by the ACC must supply an increasing percentage of their retail electric energy sales from eligible renewable resources, including solar, wind, biomass, biogas and geothermal technologies. In order to achieve these requirements, the ACC allows APS to include a RES surcharge as part of customer bills to recover the approved amounts for use on renewable energy projects. Each year APS is required to file a five-year implementation plan with the ACC and seek approval for funding the upcoming year’s RES budget. | ||||||||||||||||
On July 12, 2013, APS filed its annual RES implementation plan, covering the 2014-2018 timeframe and requesting a 2014 RES budget of approximately $143 million. In a final order dated January 7, 2014, the ACC approved the requested budget. Also in 2013, the ACC conducted a hearing to consider APS’s proposal to establish compliance with distributed energy requirements by tracking and recording distributed energy, rather than acquiring and retiring renewable energy credits. On February 6, 2014, the ACC established a proceeding to modify the renewable energy rules so that utilities can establish compliance without using renewable energy credits. | ||||||||||||||||
On July 12, 2013, APS filed an application with the ACC proposing a solution to fix the cost shift brought by the current net metering rules. In its application, APS requested that the ACC cause all new residential customers installing new rooftop solar systems to either: (i) take electric service under APS’s demand-based ECT-2 rate and remain eligible for net metering; or (ii) take service under the customer’s existing rate as if no distributed energy system was installed and receive a bill credit for 100% of the distributed energy system’s output at a market-based price. APS also proposed that the ACC: (i) grandfather current rates and use of net metering for existing and immediately pending distributed energy customers; and (ii) continue using direct cash incentives for new distributed energy installations. | ||||||||||||||||
On December 3, 2013, the ACC issued its order on APS’s net metering proposal. The ACC instituted a charge on future customers who install rooftop solar panels and directed APS to provide quarterly reports on the pace of rooftop solar adoption to assist the ACC in considering further increases. The charge of $0.70 per kilowatt became effective on January 1, 2014, and is estimated to collect $4.90 per month from a typical future rooftop solar customer to help pay for their use of the electricity grid. The new policy will be in effect until the next APS rate case. | ||||||||||||||||
In making its decision, the ACC determined that the current net metering program creates a cost shift, causing non-solar utility customers to pay higher rates to cover the costs of maintaining the electrical grid. ACC professional staff and the state’s Residential Utility Consumer Office, among other organizations, also agreed that a cost shift exists. The fixed charge does not increase APS’s revenue, but instead will modestly reduce the impact of the cost shift on non-solar customers. The ACC acknowledged that the new charge addresses only a portion of the cost shift. | ||||||||||||||||
Demand Side Management Adjustor Charge. The ACC Electric Energy Efficiency Standards require APS to submit a Demand Side Management Implementation Plan for review by and approval of the ACC. | ||||||||||||||||
On June 1, 2011, APS filed its 2012 Demand Side Management Implementation Plan consistent with the ACC’s Electric Energy Efficiency Rules, which became effective January 1, 2011. The 2012 requirement under such standards is for cumulative energy efficiency savings of 3% of APS retail sales for the prior year. This energy savings requirement is slightly higher than the goal established by the 2009 Settlement Agreement (2.75% of total energy resources for the same two-year period). The ACC issued an order on April 4, 2012, approving recovery of approximately $72 million of APS’s energy efficiency and demand side management program costs. This amount was recovered by the then existing DSMAC over a twelve-month period beginning March 1, 2012. This amount does not include $10 million already being recovered in general retail base rates, but does include amortization of 2009 costs (approximately $5 million of the $72 million). | ||||||||||||||||
On June 1, 2012, APS filed its 2013 Demand Side Management Implementation Plan. In 2013, the standards require APS to achieve cumulative energy savings equal to 5% of its 2012 retail energy sales. Later in 2012, APS filed a supplement to its plan that included a proposed budget for 2013 of $87.6 million. | ||||||||||||||||
The ACC Staff recommendation and proposed order, issued on October 30, 2013, largely recommended continuing the status quo, although at lower funding levels. ACC Staff recommended approval of all existing cost-effective energy efficiency and demand response programs and a budget of $68.9 million going forward. APS expects to receive a decision from the ACC in early 2014. | ||||||||||||||||
On June 27, 2013, the ACC voted to open a new docket investigating whether the Electric Energy Efficiency Rules should be modified or abolished. This spring the ACC will hold a series of three workshops to investigate methodologies used to determine cost effective energy efficiency programs, cost recovery mechanisms, incentives, and potential changes to the Electric Energy Efficiency and Resource Planning Rules. | ||||||||||||||||
PSA Mechanism and Balance. The PSA provides for the adjustment of retail rates to reflect variations in retail fuel and purchased power costs. The PSA is subject to specified parameters and procedures, including the following: | ||||||||||||||||
· APS records deferrals for recovery or refund to the extent actual retail fuel and purchased power costs vary from the Base Fuel Rate; | ||||||||||||||||
· an adjustment to the PSA rate is made annually each February 1st (unless otherwise approved by the ACC) and goes into effect automatically unless suspended by the ACC; | ||||||||||||||||
· the PSA uses a forward-looking estimate of fuel and purchased power costs to set the annual PSA rate, which is reconciled to actual costs experienced for each PSA Year (February 1 through January 31) (see the following bullet point); | ||||||||||||||||
· the PSA rate includes (a) a “Forward Component,” under which APS recovers or refunds differences between expected fuel and purchased power costs for the upcoming calendar year and those embedded in the Base Fuel Rate; (b) a “Historical Component,” under which differences between actual fuel and purchased power costs and those recovered through the combination of the Base Fuel Rate and the Forward Component are recovered during the next PSA Year; and (c) a “Transition Component,” under which APS may seek mid-year PSA changes due to large variances between actual fuel and purchased power costs and the combination of the Base Fuel Rate and the Forward Component; and | ||||||||||||||||
· the PSA rate may not be increased or decreased more than $0.004 per kWh in a year without permission of the ACC. | ||||||||||||||||
The following table shows the changes in the deferred fuel and purchased power regulatory asset for 2013 and 2012 (dollars in millions): | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance | $ | 73 | $ | 28 | ||||||||||||
Deferred fuel and purchased power costs - current period | (21 | ) | (72 | ) | ||||||||||||
Amounts (charged) credited to customers | (31 | ) | 117 | |||||||||||||
Ending balance | $ | 21 | $ | 73 | ||||||||||||
The PSA rate for the PSA year beginning February 1, 2014 is $0.001557 per kWh, as compared to $0.001329 per kWh for the prior year. This represents a $0.000228 per kWh increase over the 2013 PSA charge. This new rate is comprised of a forward component of $0.001277 per kWh and a historical component of $0.000280 per kWh. Any uncollected (overcollected) deferrals during the 2014 PSA year will be included in the calculation of the PSA rate for the PSA year beginning February 1, 2015. | ||||||||||||||||
Transmission Rates, Transmission Cost Adjustor and Other Transmission Matters. In July 2008, FERC approved an Open Access Transmission Tariff for APS to move from fixed rates to a formula rate-setting methodology in order to more accurately reflect and recover the costs that APS incurs in providing transmission services. A large portion of the rate represents charges for transmission services to serve APS’s retail customers (“Retail Transmission Charges”). In order to recover the Retail Transmission Charges, APS was previously required to file an application with, and obtain approval from, the ACC to reflect changes in Retail Transmission Charges through the TCA. Under the terms of the 2012 Settlement Agreement (discussed above), however, an adjustment to rates to recover the Retail Transmission Charges will be made annually each June 1 and will go into effect automatically unless suspended by the ACC. | ||||||||||||||||
The formula rate is updated each year effective June 1 on the basis of APS’s actual cost of service, as disclosed in APS’s FERC Form 1 report for the previous fiscal year. Items to be updated include actual capital expenditures made as compared with previous projections, transmission revenue credits and other items. The resolution of proposed adjustments can result in significant volatility in the revenues to be collected. APS reviews the proposed formula rate filing amounts with the ACC staff. Any items or adjustments which are not agreed to by APS and the ACC staff can remain in dispute until settled or litigated at FERC. Settlement or litigated resolution of disputed issues could require an extended period of time and could have a significant effect on the Retail Transmission Charge because any adjustment, though applied prospectively, may be calculated to account for previously over- or under-collected amounts. | ||||||||||||||||
Effective June 1, 2012, APS’s annual wholesale transmission rates for all users of its transmission system increased by approximately $16 million for the twelve-month period beginning June 1, 2012 in accordance with the FERC-approved formula. | ||||||||||||||||
Effective June 1, 2013, APS’s annual wholesale transmission rates for all users of its transmission system increased by approximately $26 million for the twelve-month period beginning June 1, 2013 in accordance with the FERC-approved formula. Pursuant to the 2012 Settlement Agreement (discussed above), an adjustment to APS’s retail rates to recover FERC-approved transmission charges went into effect automatically on June 1, 2013. | ||||||||||||||||
Lost Fixed Cost Recovery Mechanism. The LFCR mechanism permits APS to recover on an after-the-fact basis a portion of its fixed costs that would otherwise have been collected by APS in the kWh sales lost due to APS energy efficiency programs and to distributed generation such as rooftop solar arrays. The fixed costs recoverable by the LFCR mechanism were established in the 2012 Settlement Agreement and amount to approximately 3.1 cents per residential kWh lost and 2.3 cents per non-residential kWh lost. The kWh’s lost from energy efficiency are based on a third-party evaluation of APS’s energy efficiency programs. Distributed generation sales losses are determined from the metered output from the distributed generation units or if metering is unavailable, through accepted estimating techniques. | ||||||||||||||||
APS filed its first LFCR adjustment on January 15, 2013 and will file for a LFCR adjustment every January thereafter. On February 12, 2013, the ACC approved a LFCR adjustment of $5.1 million, representing a pro-rated amount for 2012 since the 2012 Settlement Agreement went into effect on July 1, 2012. APS filed its 2014 annual LFCR adjustment on January 15, 2014, requesting a LFCR adjustment of $25.3 million, effective March 1, 2014. APS anticipates that the ACC will consider whether to approve APS’s LFCR adjustment prior to the end of March 2014. | ||||||||||||||||
Deregulation | ||||||||||||||||
On May 9, 2013, the ACC voted to re-examine the facilitation of a deregulated retail electric market in Arizona. The ACC subsequently opened a docket for this matter and received comments from a number of interested parties on the considerations involved in establishing retail electric deregulation in the state. One of these considerations is whether various aspects of a deregulated market, including setting utility rates on a “market” basis, would be consistent with the requirements of the Arizona Constitution. On September 11, 2013, after receiving legal advice from the ACC staff, the ACC voted 4-1 to close the current docket and await full Constitutional authority before any further examination of this matter. The motion approved by the ACC also included opening one or more new dockets in the future to explore options to offer more rate choices to customers and innovative changes within the existing cost-of-service regulatory model that could include elements of competition. The ACC opened a new docket on November 4, 2013 to explore technological advances and innovative changes within the electric utility industry. Workshops in this docket are expected to be held in 2014. | ||||||||||||||||
Four Corners | ||||||||||||||||
On December 30, 2013, APS purchased SCE’s 48% ownership interest in each of Units 4 and 5 of Four Corners. As a result of this purchase, APS now owns 63% of Units 4 and 5. APS has a total entitlement from Four Corners of 970 MW. The final purchase price for the interest was approximately $182 million. APS acquired assets and assumed certain of SCE’s decommissioning and mine reclamation obligations. We have recognized plant-in-service, net of accumulated depreciation, of $316 million, which includes an acquisition adjustment of $255 million. In addition, we have recognized a liability of $34 million for the decommissioning obligations, $93 million for the mine reclamation obligations, $18 million of other various liabilities, and $11 million of construction work in progress relating to this purchase. These amounts are subject to revision during the measurement period, not to exceed one year, to the extent additional information is obtained about the facts and circumstances that existed as of the acquisition date. While we expect the ACC to approve the recovery of the acquisition adjustment, should recovery be disallowed, it will be reclassified from plant-in-service to goodwill, subject to impairment testing. The decommissioning and mine reclamation obligations were recognized at their fair value. Because APS’s rates are regulated, APS expects to recover the costs of the acquired plant assets, including a return on its investment based on its cost of capital. APS believes this return is consistent with what a market participant would consider to be fair value in APS’s regulatory environment. Accordingly, APS believes the cost of the plant assets approximate their fair value. | ||||||||||||||||
The 2012 Settlement Agreement includes a procedure to allow APS to request rate adjustments prior to its next general rate case related to APS’s acquisition of additional interests in Units 4 and 5 and the related closure of Units 1-3 of Four Corners. APS made its filing under this provision on December 30, 2013. This includes deferral for future recovery of all non-fuel operating cost for the acquired SCE interest in Four Corners, net of the non-fuel operating costs savings resulting from the closure of Four Corners Units 1-3. The 2012 Settlement Agreement also provides for deferral for future recovery of all unrecovered costs incurred in connection with the closure of Four Corners Units 1-3. The deferral balance related to the acquisition of SCE’s interest in Units 4 and 5 and the closure of Four Corners Units 1-3 was $37 million as of December 31, 2013. | ||||||||||||||||
As part of APS’s acquisition of SCE’s interest in Units 4 and 5 of Four Corners, APS and SCE agreed, via a “Transmission Termination Agreement,” that upon closing of the acquisition, the companies would terminate an existing transmission agreement (“Transmission Agreement”) between the parties that provides transmission capacity on a system (the “Arizona Transmission System”) for SCE to transmit its portion of the output from Four Corners to California. APS previously submitted a request to FERC related to this termination, which resulted in a FERC order denying rate recovery of $40 million that APS agreed to pay SCE associated with the termination. APS and SCE negotiated an alternate arrangement under which SCE will assign its 1,555 MW capacity rights over the Arizona Transmission System to third-parties, including 300 MW to APS’s marketing and trading group for transmission of the additional power received from Four Corners. This arrangement becomes effective upon FERC approval and will remain in effect until the net payments received by SCE in connection with the assignments reach $40 million, at which time the arrangement and the Transmission Agreement will terminate. APS believes that FERC will approve the alternate arrangement as filed but, if not approved, SCE and APS will again be subject to the terms of the Transmission Termination Agreement. As we previously disclosed, APS believes that the original denial by FERC of rate recovery under the Transmission Termination Agreement constitutes the failure of a condition that relieves APS of its obligations under that agreement. If APS and SCE were unable to determine a resolution through negotiation, the Transmission Termination Agreement requires that disputes be resolved through arbitration. APS is unable to predict the outcome of this matter if it proceeds to arbitration. | ||||||||||||||||
Regulatory Assets and Liabilities | ||||||||||||||||
The detail of regulatory assets is as follows (dollars in millions): | ||||||||||||||||
Remaining | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization | ||||||||||||||||
Period | Current | Non-Current | Current | Non-Current | ||||||||||||
Pension and other postretirement benefits | (a | ) | $ | — | $ | 314 | $ | — | $ | 780 | ||||||
Income taxes — AFUDC equity | 2043 | 4 | 105 | 4 | 92 | |||||||||||
Deferred fuel and purchased power — mark-to-market (Note 17) | 2016 | 5 | 29 | 19 | 21 | |||||||||||
Transmission vegetation management | 2016 | 9 | 14 | 9 | 23 | |||||||||||
Coal reclamation | 2038 | 8 | 18 | 8 | 24 | |||||||||||
Palo Verde VIEs (Note 19) | 2046 | — | 41 | — | 38 | |||||||||||
Deferred compensation | 2036 | — | 34 | — | 34 | |||||||||||
Deferred fuel and purchased power (b) (c) | 2014 | 21 | — | 73 | — | |||||||||||
Tax expense of Medicare subsidy | 2023 | 2 | 15 | 2 | 17 | |||||||||||
Loss on reacquired debt | 2034 | 1 | 17 | 2 | 18 | |||||||||||
Income taxes — investment tax credit basis adjustment | 2043 | 1 | 39 | 1 | 26 | |||||||||||
Pension and other postretirement benefits deferral | 2015 | 8 | 4 | 8 | 13 | |||||||||||
Four Corners cost deferral | 2024 | — | 37 | — | — | |||||||||||
Lost fixed cost recovery | 2014 | 25 | — | 7 | — | |||||||||||
Transmission cost adjustor | 2015 | 8 | 2 | 10 | — | |||||||||||
Retired power plant costs | 2020 | 3 | 18 | — | — | |||||||||||
Other | Various | 2 | 25 | 1 | 14 | |||||||||||
Total regulatory assets (d) | $ | 97 | $ | 712 | $ | 144 | $ | 1,100 | ||||||||
(a) This asset represents the future recovery of under-funded pension and other postretirement benefit obligations through retail rates. If these costs are disallowed by the ACC, this regulatory asset would be charged to OCI and result in lower future revenues. See Note 8 for further discussion. | ||||||||||||||||
(b) See “Cost Recovery Mechanisms” discussion above. | ||||||||||||||||
(c) Subject to a carrying charge. | ||||||||||||||||
(d) There are no regulatory assets for which the ACC has allowed recovery of costs, but not allowed a return by exclusion from rate base. FERC rates are set using a formula rate as described in “Transmission Rates and Transmission Cost Adjustor.” | ||||||||||||||||
The detail of regulatory liabilities is as follows (dollars in millions): | ||||||||||||||||
Remaining | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization | ||||||||||||||||
Period | Current | Non-Current | Current | Non-Current | ||||||||||||
Removal costs | (a | ) | $ | 28 | $ | 303 | $ | 27 | $ | 321 | ||||||
Asset retirement obligations | (a | ) | — | 266 | — | 256 | ||||||||||
Renewable energy standard (b) | 2015 | 33 | 15 | 43 | — | |||||||||||
Income taxes — change in rates | 2043 | — | 74 | — | 66 | |||||||||||
Spent nuclear fuel | 2047 | 6 | 36 | 10 | 36 | |||||||||||
Deferred gains on utility property | 2019 | 2 | 10 | 2 | 12 | |||||||||||
Income taxes — deferred investment tax credit | 2043 | 3 | 79 | 2 | 52 | |||||||||||
Demand side management (b) | 2014 | 27 | — | 4 | — | |||||||||||
Other | Various | — | 18 | — | 16 | |||||||||||
Total regulatory liabilities | $ | 99 | $ | 801 | $ | 88 | $ | 759 | ||||||||
(a) In accordance with regulatory accounting guidance, APS accrues for removal costs for its regulated assets, even if there is no legal obligation for removal (see Note 12). | ||||||||||||||||
(b) See “Cost Recovery Mechanisms” discussion above. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | ' | ||||||||||
4. Income Taxes | |||||||||||
Certain assets and liabilities are reported differently for income tax purposes than they are for financial statement purposes. The tax effect of these differences is recorded as deferred taxes. We calculate deferred taxes using currently enacted income tax rates. | |||||||||||
APS has recorded regulatory assets and regulatory liabilities related to income taxes on its Balance Sheets in accordance with accounting guidance for regulated operations. The regulatory assets are for certain temporary differences, primarily the allowance for equity funds used during construction and pension and other postretirement benefits. The regulatory liabilities primarily relate to deferred taxes resulting from investment tax credits (“ITC”) and the change in income tax rates. | |||||||||||
In accordance with regulatory requirements, APS ITCs are deferred and are amortized over the life of the related property with such amortization applied as a credit to reduce current income tax expense in the statement of income. | |||||||||||
The $70 million long-term income tax receivable on the Consolidated Balance Sheets as of December 31, 2012 represented the anticipated refund related to an APS tax accounting method change approved by the IRS in the third quarter of 2009. On July 9, 2013, IRS guidance was released which provided clarification regarding the timing and amount of this cash receipt. As a result of this guidance, uncertain tax positions decreased $67 million during the third quarter. This decrease in uncertain tax positions resulted in a corresponding increase to the total anticipated refund due from the IRS and an offsetting increase in long-term deferred tax liabilities. Additionally, as a result of this IRS guidance, the resulting $137 million anticipated refund was reclassified to current income tax receivable. | |||||||||||
During the year ended December 31, 2013, the IRS finalized the examination of tax returns for the years ended December 31, 2008 and 2009, and the $137 million anticipated refund was reduced by approximately $4 million to reflect the outcome of this examination. On December 17, 2013, the Joint Committee on Taxation approved the anticipated refund. Cash related to this refund was received in the first quarter of 2014. | |||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment. To account for the adoption of these regulations, plant-related long-term deferred tax liabilities decreased by $84 million, with the offsetting decrease to current deferred income tax assets. Prior to the issuance of these regulations, this $84 million would have been repaid over 20 years through lower tax depreciation deductions. | |||||||||||
Net income associated with the Palo Verde sale leaseback VIEs is not subject to tax (see Note 19). As a result, there is no income tax expense associated with the VIEs recorded on the Consolidated Statements of Income. | |||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,422 | $ | 136,005 | $ | 127,595 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (108,099 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (826 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,422 | $ | 136,005 | |||||
Included in the balances of unrecognized tax benefits at December 31, 2013, 2012 and 2011 were approximately $10 million, $10 million and $8 million, respectively, of tax positions that, if recognized, would decrease our effective tax rate. | |||||||||||
As of the balance sheet date, the tax year ended December 31, 2010 and all subsequent tax years remain subject to examination by the IRS. With a few exceptions, we are no longer subject to state income tax examinations by tax authorities for years before 2010. | |||||||||||
We reflect interest and penalties, if any, on unrecognized tax benefits in the Consolidated Statements of Income as income tax expense. The amount of interest recognized in the Consolidated Statements of Income related to unrecognized tax benefits was a pre-tax benefit of $4 million for 2013, a pre-tax expense of $4 million for 2012, and a pre-tax expense of $3 million for 2011. | |||||||||||
The total amount of accrued liabilities for interest recognized in the Consolidated Balance Sheets related to unrecognized tax benefits was less than $1 million as of December 31, 2013, $13 million as of December 31, 2012 and $9 million as of December 31, 2011. To the extent that matters are settled favorably, this amount could reverse and decrease our effective tax rate. Additionally, as of December 31, 2013, we have recognized $5 million of interest income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS. | |||||||||||
The components of income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (81,784 | ) | $ | (3,493 | ) | $ | (310 | ) | ||
State | 10,537 | 8,395 | 15,140 | ||||||||
Total current | (71,247 | ) | 4,902 | 14,830 | |||||||
Deferred: | |||||||||||
Federal | 279,973 | 200,322 | 159,566 | ||||||||
State | 21,865 | 28,280 | 16,626 | ||||||||
Total deferred | 301,838 | 228,602 | 176,192 | ||||||||
Total income tax expense | 230,591 | 233,504 | 191,022 | ||||||||
Less: income tax expense (benefit) on discontinued operations | — | (3,813 | ) | 7,418 | |||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
The following chart compares pretax income from continuing operations at the 35% federal income tax rate to income tax expense — continuing operations (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 234,695 | $ | 229,709 | $ | 188,733 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 21,387 | 23,819 | 19,594 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,356 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,881 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,636 | ) | |||||
Other | (4,099 | ) | 529 | (9,029 | ) | ||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
The following table shows the net deferred income tax liability recognized on the Consolidated Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset | $ | 91,152 | $ | 152,191 | |||||||
Long-term liability | (2,351,882 | ) | (2,151,371 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
On February 17, 2011, Arizona enacted legislation (H.B. 2001) that included a four-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in Arizona. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013 APS has recorded a regulatory liability of $75 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
On April 4, 2013, New Mexico enacted legislation (H.B. 641) that included a five-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in New Mexico. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013, APS has recorded a regulatory liability of $2 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Risk management activities | $ | 44,920 | $ | 72,243 | |||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | 235,959 | 238,669 | |||||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Pension and other postretirement liabilities | 198,642 | 408,764 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 133,070 | 139,022 | |||||||||
Other | 148,492 | 68,844 | |||||||||
Total deferred tax assets | 951,242 | 1,082,084 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
As of December 31, 2013, the deferred tax assets for credit and loss carryforwards relate to federal general business credits of $131 million which first begin to expire in 2031, and other federal and state loss carryforwards of $2 million which first begin to expire in 2018. | |||||||||||
Lines_of_Credit_and_ShortTerm_
Lines of Credit and Short-Term Borrowings | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Lines of Credit and Short-Term Borrowings | ' | |||||||||||
Lines of Credit and Short-Term Borrowings | ' | |||||||||||
5. Lines of Credit and Short-Term Borrowings | ||||||||||||
The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2013 (dollars in millions): | ||||||||||||
Credit Facility | Expiration | Amount | Unused | Commitment | ||||||||
Committed | Amount (a) | Fees | ||||||||||
Pinnacle West Revolving Credit Facility | November 2016 | $ | 200 | $ | 200 | 0.175 | % | |||||
APS Revolving Credit Facility | November 2016 | 500 | 347 | 0.125 | % | |||||||
APS Revolving Credit Facility | April 2018 | 500 | 500 | 0.125 | % | |||||||
Total | $ | 1,200 | $ | 1,047 | ||||||||
(a) At December 31, 2013, APS had $153 million of outstanding commercial paper. Accordingly, at such date, the total combined amount available under its two $500 million credit facilities was $847 million. | ||||||||||||
Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support for their commercial paper programs. | ||||||||||||
Pinnacle West | ||||||||||||
At December 31, 2013, the Pinnacle West credit facility, which terminates in November 2016, was available to refinance indebtedness of the Company and for other general corporate purposes, including credit support for its $200 million commercial paper program. Pinnacle West has the option to increase the amount of the facility up to a maximum of $300 million upon the satisfaction of certain conditions and with the consent of the lenders. At December 31, 2013, Pinnacle West had no outstanding borrowings under its credit facility, no letters of credit and no commercial paper borrowings. | ||||||||||||
APS | ||||||||||||
On April 9, 2013, APS refinanced its $500 million revolving credit facility that would have matured in February 2015, with a new $500 million facility. The new revolving credit facility matures in April 2018. | ||||||||||||
At December 31, 2013, APS had two credit facilities totaling $1 billion, including a $500 million credit facility that was refinanced in April 2013 (see above) and a $500 million credit facility that matures in November 2016. APS may increase the amount of each facility up to a maximum of $700 million upon the satisfaction of certain conditions and with the consent of the lenders. APS can use these facilities to refinance indebtedness and for other general corporate purposes. Interest rates are based on APS’s senior unsecured debt credit ratings. | ||||||||||||
APS may increase the amount of each facility up to a maximum of $700 million upon the satisfaction of certain conditions and with the consent of the lenders. APS will use these facilities to refinance indebtedness and for other general corporate purposes. Interest rates are based on APS’s senior unsecured debt credit ratings. | ||||||||||||
The facilities described above are available to support APS’s $250 million commercial paper program, for bank borrowings or for issuances of letters of credit. At December 31, 2013, APS had no outstanding borrowings or letters of credit under its revolving credit facilities. In addition, APS had commercial paper borrowings of $153 million at December 31, 2013. | ||||||||||||
See “Financial Assurances” in Note 11 for a discussion of APS’s separate outstanding letters of credit. | ||||||||||||
The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2012 (dollars in millions): | ||||||||||||
Credit Facility | Expiration | Amount | Unused | Commitment | ||||||||
Committed | Amount (a) | Fees | ||||||||||
Pinnacle West Revolving Credit Facility | November 2016 | $ | 200 | $ | 200 | 0.225 | % | |||||
APS Revolving Credit Facility | November 2016 | 500 | 408 | 0.175 | % | |||||||
APS Revolving Credit Facility | February 2015 | 500 | 500 | 0.2 | % | |||||||
Total | $ | 1,200 | $ | 1,108 | ||||||||
(a) At December 31, 2012, APS had $92 million of outstanding commercial paper. Accordingly, at such date the total combined amount available under its two $500 million credit facilities was $908 million. | ||||||||||||
Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support for their commercial paper programs. | ||||||||||||
Pinnacle West | ||||||||||||
At December 31, 2012, the Pinnacle West credit facility, which matures in November 2016, was available to refinance indebtedness of the Company and for other general corporate purposes, including credit support for its $200 million commercial paper program. Pinnacle West has the option to increase the amount of the facility up to a maximum of $300 million upon the satisfaction of certain conditions and with the consent of the lenders. At December 31, 2012, Pinnacle West had no outstanding borrowings under its credit facility, no letters of credit and no commercial paper borrowings. | ||||||||||||
APS | ||||||||||||
APS may increase the amount of each facility up to a maximum of $700 million upon the satisfaction of certain conditions and with the consent of the lenders. APS will use these facilities to refinance indebtedness and for other general corporate purposes. Interest rates are based on APS’s senior unsecured debt credit ratings. | ||||||||||||
The facilities described above are available to support APS’s $250 million commercial paper program, for bank borrowings or for issuances of letters of credit. At December 31, 2012, APS had no outstanding borrowings or letters of credit under its revolving credit facilities. In addition, APS had commercial paper borrowings of $92 million at December 31, 2012. | ||||||||||||
See “Financial Assurances” in Note 11 for a discussion of APS’s separate outstanding letters of credit. | ||||||||||||
Debt Provisions | ||||||||||||
Although provisions in APS’s articles of incorporation and ACC financing orders establish maximum amounts of preferred stock and debt that APS may issue, APS does not expect any of these provisions to limit its ability to meet its capital requirements. On February 6, 2013, the ACC issued a financing order in which, subject to specified parameters and procedures, it (a) approved APS’s short-term debt authorization equal to a 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), (b) approved an increase in APS’s long-term debt authorization from $4.2 billion to $5.1 billion in light of the projected growth of APS and its customer base and the resulting projected financing needs, and (c) authorized APS to enter into derivative financial instruments for the purpose of managing interest rate risk associated with its long- and short-term debt. This financing order is set to expire on December 31, 2017. | ||||||||||||
LongTerm_Debt_and_Liquidity_Ma
Long-Term Debt and Liquidity Matters | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Long-Term Debt and Liquidity Matters | ' | |||||||||||||
Long-Term Debt and Liquidity Matters | ' | |||||||||||||
6. Long-Term Debt and Liquidity Matters | ||||||||||||||
All of Pinnacle West’s and APS’s debt is unsecured. The following table presents the components of long-term debt on the Consolidated Balance Sheets outstanding at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||
Maturity | Interest | December 31, | ||||||||||||
Dates (a) | Rates | 2013 | 2012 | |||||||||||
APS | ||||||||||||||
Pollution Control Bonds: | ||||||||||||||
Variable | 2029-2038 | (b) | $ | 75,580 | $ | 75,580 | ||||||||
Fixed | 2024-2034 | 1.25%-6.00% | 426,125 | 490,275 | ||||||||||
Total Pollution Control Bonds | 501,705 | 565,855 | ||||||||||||
Senior unsecured notes | 2014-2042 | 4.50%-8.75% | 2,675,000 | 2,575,000 | ||||||||||
Palo Verde sale leaseback lessor notes | 2015 | 8.00% | 38,869 | 65,547 | ||||||||||
Unamortized discount | (8,732 | ) | (9,486 | ) | ||||||||||
Unamortized premium | 5,047 | — | ||||||||||||
Total APS long-term debt | 3,211,889 | 3,196,916 | ||||||||||||
Less current maturities | (d) | 540,424 | 122,828 | |||||||||||
Total APS long-term debt less current maturities | 2,671,465 | 3,074,088 | ||||||||||||
Pinnacle West | ||||||||||||||
Term loan | 2015 | (c) | 125,000 | 125,000 | ||||||||||
TOTAL LONG-TERM DEBT LESS CURRENT MATURITIES | $ | 2,796,465 | $ | 3,199,088 | ||||||||||
(a) This schedule does not reflect the timing of redemptions that may occur prior to maturities. | ||||||||||||||
(b) The weighted-average rate for the variable rate pollution control bonds was 0.03%-0.06% at December 31, 2013 and 0.13%-0.15% at December 31, 2012. | ||||||||||||||
(c) The weighted-average interest rate was 1.269% at December 31, 2013 and 1.312% at December 31, 2012. | ||||||||||||||
(d) Current maturities include $215 million of pollution control bonds expected to be remarketed in 2014 and $300 million in senior unsecured notes that mature in 2014. | ||||||||||||||
The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in millions): | ||||||||||||||
Year | Consolidated | Consolidated | ||||||||||||
Pinnacle West | APS | |||||||||||||
2014 | $ | 540 | $ | 540 | ||||||||||
2015 | 470 | 345 | ||||||||||||
2016 | 358 | 358 | ||||||||||||
2017 | — | — | ||||||||||||
2018 | 32 | 32 | ||||||||||||
Thereafter | 1,940 | 1,940 | ||||||||||||
Total | $ | 3,340 | $ | 3,215 | ||||||||||
Debt Fair Value | ||||||||||||||
Our long-term debt fair value estimates are based on quoted market prices for the same or similar issues, and are classified within level 2 of the fair value hierarchy. Certain of our debt instruments contain third-party credit enhancements and, in accordance with GAAP, we do not consider the effect of these credit enhancements when determining fair value. The following table represents the estimated fair value of our long-term debt, including current maturities (dollars in millions): | ||||||||||||||
As of | As of | |||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Pinnacle West | $ | 125 | $ | 125 | $ | 125 | $ | 125 | ||||||
APS | 3,212 | 3,454 | 3,197 | 3,750 | ||||||||||
Total | $ | 3,337 | $ | 3,579 | $ | 3,322 | $ | 3,875 | ||||||
Credit Facilities and Debt Issuances | ||||||||||||||
APS | ||||||||||||||
On March 22, 2013, APS issued an additional $100 million par amount of its outstanding 4.50% unsecured senior notes that mature on April 1, 2042. The net proceeds from the sale were used to repay short-term commercial paper borrowings and replenish cash used to redeem certain tax-exempt indebtedness in November 2012. | ||||||||||||||
On May 1, 2013, APS purchased all $32 million of the Maricopa County, Arizona Pollution Control Corporation Pollution Control Revenue Refunding Bonds, 2009 Series C, due 2029. On May 28, 2013, we remarketed the bonds. The interest rate for these bonds was set to a new term rate. The new term rate for these bonds ends, subject to a mandatory tender, on May 30, 2018. During this time, the bonds will bear interest at a rate of 1.75% per annum. These bonds are classified as long-term debt on our Consolidated Balance Sheets at December 31, 2013 and were classified as current maturities of long-term debt on our Consolidated Balance Sheets at December 31, 2012. | ||||||||||||||
On July 12, 2013, APS purchased all $33 million of the Coconino County, Arizona Pollution Control Corporation Pollution Control Revenue Refunding Bonds, 1994 Series A, due 2029. On January 15, 2014, these bonds were canceled. These bonds were classified as current maturities of long-term debt on our Consolidated Balance Sheets at December 31, 2012. | ||||||||||||||
On October 11, 2013, APS purchased all $32 million of the City of Farmington, New Mexico Pollution Control Revenue Bonds, 1994 Series C, due 2024. On January 15, 2014, these bonds were canceled. These bonds were classified as current maturities of long-term debt on our Consolidated Balance Sheets at December 31, 2012. | ||||||||||||||
On January 10, 2014, APS issued $250 million of 4.70% unsecured senior notes that mature on January 15, 2044. The proceeds from the sale were used to repay commercial paper which was used to fund the purchase price and costs associated with the acquisition of SCE’s 48% ownership interest in each of Units 4 and 5 of Four Corners and to replenish cash used to re-acquire two series of tax-exempt indebtedness. | ||||||||||||||
See “Lines of Credit and Short-Term Borrowings” in Note 5 and “Financial Assurances” in Note 11 for discussion of APS’s other letters of credit. | ||||||||||||||
Debt Provisions | ||||||||||||||
Pinnacle West’s and APS’s debt covenants related to their respective bank financing arrangements include maximum debt to capitalization ratios. Pinnacle West and APS comply with this covenant. For both Pinnacle West and APS, this covenant requires that the ratio of consolidated debt to total consolidated capitalization not exceed 65%. At December 31, 2013, the ratio was approximately 47% for Pinnacle West and 45% for APS. Failure to comply with such covenant levels would result in an event of default which, generally speaking, would require the immediate repayment of the debt subject to the covenants and could cross-default other debt. See further discussion of “cross-default” provisions below. | ||||||||||||||
Neither Pinnacle West’s nor APS’s financing agreements contain “rating triggers” that would result in an acceleration of the required interest and principal payments in the event of a rating downgrade. However, our bank credit agreements contain a pricing grid in which the interest rates we pay for borrowings thereunder are determined by our current credit ratings. | ||||||||||||||
All of Pinnacle West’s loan agreements contain “cross-default” provisions that would result in defaults and the potential acceleration of payment under these loan agreements if Pinnacle West or APS were to default under certain other material agreements. All of APS’s bank agreements contain cross-default provisions that would result in defaults and the potential acceleration of payment under these bank agreements if APS were to default under certain other material agreements. Pinnacle West and APS do not have a material adverse change restriction for credit facility borrowings. | ||||||||||||||
An existing ACC order requires APS to maintain a common equity ratio of at least 40%. As defined in the ACC order, the common equity ratio is total shareholder equity divided by the sum of total shareholder equity and long-term debt, including current maturities of long-term debt. At December 31, 2013, APS was in compliance with this common equity ratio requirement. Its total shareholder equity was approximately $4.3 billion, and total capitalization was approximately $7.5 billion. APS would be prohibited from paying dividends if the payment would reduce its total shareholder equity below approximately $3.0 billion, assuming APS’s total capitalization remains the same. Since APS was in compliance with this common equity ratio requirement, this restriction does not materially affect Pinnacle West’s ability to meet its ongoing capital requirements. | ||||||||||||||
Common_Stock_and_Treasury_Stoc
Common Stock and Treasury Stock | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Common Stock and Treasury Stock | ' | |||||||||||
Common Stock and Treasury Stock | ' | |||||||||||
7. Common Stock and Treasury Stock | ||||||||||||
Our common stock and treasury stock activity during each of the three years 2013, 2012 and 2011 is as follows (dollars in thousands): | ||||||||||||
Common Stock | Treasury Stock | |||||||||||
Shares | Amount | Shares | Amount | |||||||||
Balance at December 31, 2010 | 108,820,067 | $ | 2,421,372 | (50,410 | ) | $ | (2,239 | ) | ||||
Common stock issuance | 536,907 | 22,875 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (88,440 | ) | (3,720 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 27,689 | 1,242 | ||||||||
Balance at December 31, 2011 | 109,356,974 | 2,444,247 | (111,161 | ) | (4,717 | ) | ||||||
Common stock issuance | 480,983 | 22,676 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (89,629 | ) | (4,607 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 105,598 | 5,113 | ||||||||
Balance at December 31, 2012 | 109,837,957 | 2,466,923 | (95,192 | ) | (4,211 | ) | ||||||
Common stock issuance | 442,746 | 24,635 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (174,290 | ) | (9,727 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 170,538 | 9,630 | ||||||||
Balance at December 31, 2013 | 110,280,703 | $ | 2,491,558 | (98,944 | ) | $ | (4,308 | ) | ||||
(a) Primarily represents shares of common stock withheld from certain stock awards for tax purposes. | ||||||||||||
At December 31, 2013, Pinnacle West had 10 million shares of serial preferred stock authorized with no par value, none of which was outstanding, and APS had 15,535,000 shares of various types of preferred stock authorized with $25, $50 and $100 par values, none of which was outstanding. | ||||||||||||
Retirement_Plans_and_Other_Ben
Retirement Plans and Other Benefits | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Retirement Plans and Other Benefits | ' | |||||||||||||||||||
Retirement Plans and Other Benefits | ' | |||||||||||||||||||
8. Retirement Plans and Other Benefits | ||||||||||||||||||||
Pinnacle West sponsors a qualified defined benefit and account balance pension plan (The Pinnacle West Capital Corporation Retirement Plan) and a non-qualified supplemental excess benefit retirement plan for the employees of Pinnacle West and its subsidiaries. All new employees participate in the account balance plan. Defined benefit plans specify the amount of benefits a plan participant is to receive using information about the participant. The pension plan covers nearly all employees. The supplemental excess benefit retirement plan covers officers of the Company and highly compensated employees designated for participation by the Board of Directors. Our employees do not contribute to the plans. Generally, we calculate the benefits based on age, years of service and pay. | ||||||||||||||||||||
Pinnacle West also sponsors an other postretirement benefit plan (Pinnacle West Capital Corporation Group Life and Medical Plan) for the employees of Pinnacle West and its subsidiaries. This plan provides medical and life insurance benefits to retired employees. Employees must retire to become eligible for these retirement benefits, which are based on years of service and age. For the medical insurance plan, retirees make contributions to cover a portion of the plan costs. For the life insurance plan, retirees do not make contributions. We retain the right to change or eliminate these benefits. | ||||||||||||||||||||
Pinnacle West uses a December 31 measurement date each year for its pension and other postretirement benefit plans. The market-related value of our plan assets is their fair value at the measurement date. See Note 14 for further discussion of how fair values are determined. Due to subjective and complex judgments, which may be required in determining fair values, actual results could differ from the results estimated through the application of these methods. | ||||||||||||||||||||
A significant portion of the changes in the actuarial gains and losses of our pension and postretirement plans is attributable to APS and therefore is recoverable in rates. Accordingly, these changes are recorded as a regulatory asset. In its 2009 retail rate case settlement, APS received approval to defer a portion of pension and other postretirement benefit cost increases incurred in 2011 and 2012. We deferred pension and other postretirement benefit costs of approximately $14 million in 2012 and $11 million in 2011. Pursuant to an ACC regulatory order, we began amortizing the regulatory asset over 3 years beginning in July 2012. We amortized approximately $8 million during 2013 and $4 million during 2012. | ||||||||||||||||||||
The following table provides details of the plans’ net periodic benefit costs and the portion of these costs charged to expense (including administrative costs and excluding amounts capitalized as overhead construction, billed to electric plant participants or charged to the regulatory asset) (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Service cost-benefits earned during the period | $ | 64,195 | $ | 63,502 | $ | 57,605 | $ | 23,597 | $ | 27,163 | $ | 21,856 | ||||||||
Interest cost on benefit obligation | 112,392 | 119,586 | 124,727 | 41,536 | 46,467 | 46,807 | ||||||||||||||
Expected return on plan assets | (146,333 | ) | (140,979 | ) | (133,678 | ) | (45,717 | ) | (45,793 | ) | (41,536 | ) | ||||||||
Amortization of: | ||||||||||||||||||||
Transition obligation | — | — | — | — | 452 | 452 | ||||||||||||||
Prior service cost (credit) | 1,097 | 1,143 | 1,400 | (179 | ) | (179 | ) | (179 | ) | |||||||||||
Net actuarial loss | 39,852 | 44,250 | 25,956 | 11,310 | 20,233 | 15,015 | ||||||||||||||
Net periodic benefit cost | $ | 71,203 | $ | 87,502 | $ | 76,010 | $ | 30,547 | $ | 48,343 | $ | 42,415 | ||||||||
Portion of cost charged to expense | $ | 38,968 | $ | 36,333 | $ | 29,312 | $ | 18,469 | $ | 19,321 | $ | 15,208 | ||||||||
The following table shows the plans’ changes in the benefit obligations and funded status for the years 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 2,850,846 | $ | 2,699,126 | $ | 990,418 | $ | 1,047,094 | ||||||||||||
Service cost | 64,195 | 63,502 | 23,597 | 27,163 | ||||||||||||||||
Interest cost | 112,392 | 119,586 | 41,536 | 46,467 | ||||||||||||||||
Benefit payments | (125,269 | ) | (113,632 | ) | (26,675 | ) | (26,279 | ) | ||||||||||||
Actuarial (gain) loss | (255,634 | ) | 82,264 | (138,458 | ) | (104,027 | ) | |||||||||||||
Benefit obligation at December 31 | 2,646,530 | 2,850,846 | 890,418 | 990,418 | ||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,079,181 | 1,850,550 | 684,221 | 608,663 | ||||||||||||||||
Actual return on plan assets | 150,546 | 259,363 | 76,995 | 83,567 | ||||||||||||||||
Employer contributions | 140,500 | 65,000 | 14,438 | 22,707 | ||||||||||||||||
Benefit payments | (106,106 | ) | (95,732 | ) | (27,315 | ) | (30,716 | ) | ||||||||||||
Fair value of plan assets at December 31 | 2,264,121 | 2,079,181 | 748,339 | 684,221 | ||||||||||||||||
Funded Status at December 31 | $ | (382,409 | ) | $ | (771,665 | ) | $ | (142,079 | ) | $ | (306,197 | ) | ||||||||
The following table shows the projected benefit obligation and the accumulated benefit obligation for pension plans with an accumulated obligation in excess of plan assets as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Projected benefit obligation | $ | 2,646,530 | $ | 2,850,846 | ||||||||||||||||
Accumulated benefit obligation | 2,469,889 | 2,646,306 | ||||||||||||||||||
Fair value of plan assets | 2,264,121 | 2,079,181 | ||||||||||||||||||
The following table shows the amounts recognized on the Consolidated Balance Sheets as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Current liability | $ | (10,860 | ) | $ | (19,107 | ) | $ | — | $ | — | ||||||||||
Noncurrent liability | (371,549 | ) | (752,558 | ) | (142,079 | ) | (306,197 | ) | ||||||||||||
Net amount recognized | $ | (382,409 | ) | $ | (771,665 | ) | $ | (142,079 | ) | $ | (306,197 | ) | ||||||||
The following table shows the details related to accumulated other comprehensive loss as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net actuarial loss | $ | 344,540 | $ | 644,239 | $ | 57,816 | $ | 238,862 | ||||||||||||
Prior service cost (credit) | 2,072 | 3,169 | (296 | ) | (475 | ) | ||||||||||||||
APS’s portion recorded as a regulatory asset | (265,107 | ) | (550,471 | ) | (49,298 | ) | (230,020 | ) | ||||||||||||
Income tax benefit | (32,204 | ) | (38,303 | ) | (2,528 | ) | (2,585 | ) | ||||||||||||
Accumulated other comprehensive loss | $ | 49,301 | $ | 58,634 | $ | 5,694 | $ | 5,782 | ||||||||||||
The following table shows the estimated amounts that will be amortized from accumulated other comprehensive loss and regulatory assets into net periodic benefit cost in 2014 (dollars in thousands): | ||||||||||||||||||||
Pension | Other | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Net actuarial loss | $ | 8,363 | $ | — | ||||||||||||||||
Prior service cost (credit) | 874 | (179 | ) | |||||||||||||||||
Total amounts estimated to be amortized from accumulated other comprehensive loss and regulatory assets in 2014 | $ | 9,237 | $ | (179 | ) | |||||||||||||||
The following table shows the weighted-average assumptions used for both the pension and other benefits to determine benefit obligations and net periodic benefit costs: | ||||||||||||||||||||
Benefit Obligations | Benefit Costs | |||||||||||||||||||
As of December 31, | For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | ||||||||||||||||
Discount rate – pension | 4.88 | % | 4.01 | % | 4.01 | % | 4.42 | % | 5.31 | % | ||||||||||
Discount rate – other benefits | 5.1 | % | 4.2 | % | 4.2 | % | 4.59 | % | 5.49 | % | ||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||
Expected long-term return on plan assets | N/A | N/A | 7 | % | 7.75 | % | 7.75 | % | ||||||||||||
Initial healthcare cost trend rate | 7.5 | % | 7.5 | % | 7.5 | % | 7.5 | % | 8 | % | ||||||||||
Ultimate healthcare cost trend rate | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||
Number of years to ultimate trend rate | 4 | 4 | 4 | 4 | 4 | |||||||||||||||
In selecting the pretax expected long-term rate of return on plan assets, we consider past performance and economic forecasts for the types of investments held by the plan. For 2014, we are assuming a 6.9% long-term rate of return for pension assets and 7.1% (before tax) for other benefit assets, which we believe is reasonable given our asset allocation in relation to historical and expected performance. | ||||||||||||||||||||
The assumed healthcare cost trend rates shown above have a significant effect on the amounts reported for the healthcare plans. In selecting our healthcare trend rates, we consider past performance and forecasts of healthcare costs. A one percentage point change in the assumed initial and ultimate healthcare cost trend rates would have the following effects (dollars in millions): | ||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||
Effect on other postretirement benefits expense, after consideration of amounts capitalized or billed to electric plant participants | $ | 13 | $ | (10 | ) | |||||||||||||||
Effect on service and interest cost components of net periodic other postretirement benefit costs | 14 | (11 | ) | |||||||||||||||||
Effect on the accumulated other postretirement benefit obligation | 149 | (120 | ) | |||||||||||||||||
Plan Assets | ||||||||||||||||||||
The Board of Directors has delegated oversight of the pension and other postretirement benefit plans’ assets to an Investment Management Committee (“Committee”). The Committee has adopted investment policy statements (“IPS”) for the pension and the other postretirement benefit plans’ assets. The investment strategies for these plans include external management of plan assets, and prohibition of investments in Pinnacle West securities. | ||||||||||||||||||||
The overall strategy of the pension plan’s IPS is to achieve an adequate level of trust assets relative to the benefit obligations. To achieve this objective, the plan’s investment policy provides for mixes of investments including long-term fixed income assets and return-generating assets. The target allocation between return-generating and long-term fixed income assets is defined in the IPS and is a function of the plan’s funded status. The plan’s funded status is reviewed on at least a monthly basis. | ||||||||||||||||||||
Long-term fixed income assets, also known as liability-hedging assets, are designed to offset changes in the benefit obligations due to changes in interest rates. Long-term fixed income assets consist primarily of fixed income debt securities issued by the U.S. Treasury, other government agencies, and corporations. Long-term fixed income assets may also include interest rate swaps, U.S. Treasury futures and other instruments. | ||||||||||||||||||||
Return-generating assets are intended to provide a reasonable long-term rate of investment return with a prudent level of volatility. Return-generating assets are composed of U.S. equities, international equities, and alternative investments. International equities include investments in both developed and emerging markets. Alternative investments include investments in real estate, private equity and various other strategies. The plan may hold investments in return-generating assets by holding securities in common and collective trusts. | ||||||||||||||||||||
Based on the IPS, and given the pension plan’s funded status at year-end 2013, the long-term fixed income assets had a target allocation of 58% with a permissible range of 55% to 61% and the return-generating assets had a target allocation of 42% with a permissible range of 45% to 39%. The return-generating assets have additional target allocations, as a percent of total plan assets, of 22% equities in U.S. and other developed markets, 6% equities in emerging markets, and 14% in alternative investments. The pension plan IPS does not provide for a specific mix of long-term fixed income assets, but does expect the average credit quality of such assets to be investment grade. As of December 31, 2013, long-term fixed income assets represented 55% of total pension plan assets, and return-generating assets represented 45% of total pension plan assets. | ||||||||||||||||||||
The asset allocation for other postretirement benefit plan assets is governed by the IPS for those plans, which provides for an asset allocation target mix of generally 25% of fixed income assets and 75% of non-fixed income assets. This asset allocation target mix does not vary with the plan’s funded status. As of December 31, 2013, investment in fixed income assets represented 38% of the other postretirement benefit plan total assets, and non-fixed income assets represented 62% of the other postretirement benefit plan’s assets. Fixed income assets are primarily invested in corporate bonds of investment-grade U.S. issuers, and U.S. Treasuries. Non-fixed income assets are primarily invested in large cap U.S. equities in diverse industries, and international equities in both emerging and developed markets. | ||||||||||||||||||||
See Note 14 for a discussion on the fair value hierarchy and how fair value methodologies are applied. The plans invest directly in fixed income and equity securities, in addition to investing indirectly in fixed income securities, equity securities and real estate through the use of common and collective trusts. Equity securities held directly by the plans are valued using quoted active market prices from the published exchange on which the equity security trades, and are classified as Level 1. Fixed income securities issued by the U.S. Treasury held directly by the plans are valued using quoted active market prices, and are classified as Level 1. Fixed income securities issued by corporations, municipalities, and other agencies are primarily valued using quoted inactive market prices, or quoted active market prices for similar securities, or by utilizing calculations which incorporate observable inputs such as yield, maturity and credit quality. These instruments are classified as Level 2. | ||||||||||||||||||||
The common and collective trusts, which are similar to mutual funds, are maintained by banks or investment companies and hold certain investments in accordance with a stated set of objectives (such as tracking the performance of the S&P 500 Index). Common and collective trusts are valued using the concept of net asset value (“NAV”), which is a value derived from the quoted active market prices of the underlying securities. The plans’ common and collective real estate trust is valued using NAV, which is derived from the appraised values of the trust’s underlying real estate assets. As of December 31, 2013, the plans were able to transact in the common and collective trusts at NAV and accordingly classify these investments as Level 2. Because the trust’s shares are offered to a limited group of investors, they are not considered to be traded in an active market. | ||||||||||||||||||||
The plans’ trustee provides valuation of our plan assets by using pricing services that utilize methodologies described to determine fair market value. We have internal control procedures to ensure this information is consistent with fair value accounting guidance. These procedures include assessing valuations using an independent pricing source, verifying that pricing can be supported by actual recent market transactions, assessing hierarchy classifications, comparing investment returns with benchmarks, and obtaining and reviewing independent audit reports on the trustee’s internal operating controls and valuation processes. | ||||||||||||||||||||
The fair value of Pinnacle West’s pension plan and other postretirement benefit plan assets at December 31, 2013, by asset category, are as follows (dollars in thousands): | ||||||||||||||||||||
Quoted Prices | Significant | Significant | Other (c) | Balance at | ||||||||||||||||
in Active | Other | Unobservable | December 31, | |||||||||||||||||
Markets for | Observable | Inputs | 2013 | |||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 504 | $ | — | $ | — | $ | — | $ | 504 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 898,621 | — | — | 898,621 | |||||||||||||||
U.S. Treasury | 231,590 | — | — | — | 231,590 | |||||||||||||||
Other (b) | — | 84,011 | — | — | 84,011 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 239,036 | — | — | — | 239,036 | |||||||||||||||
International Companies | 19,429 | — | — | — | 19,429 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 116,150 | — | — | 116,150 | |||||||||||||||
International Equities | — | 367,551 | — | — | 367,551 | |||||||||||||||
Fixed Income | 137,520 | 137,520 | ||||||||||||||||||
Real estate | — | 119,739 | — | — | 119,739 | |||||||||||||||
Short-term investments and other | — | 41,060 | 8,660 | (a) | 250 | 49,970 | ||||||||||||||
Total Pension Plan | $ | 490,559 | $ | 1,764,652 | $ | 8,660 | $ | 250 | $ | 2,264,121 | ||||||||||
Other Benefits: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | $ | — | $ | 153,888 | $ | — | $ | — | $ | 153,888 | ||||||||||
U.S. Treasury | 98,704 | — | — | — | 98,704 | |||||||||||||||
Other (b) | — | 27,936 | — | — | 27,936 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 252,181 | — | — | — | 252,181 | |||||||||||||||
International Companies | 20,892 | — | — | — | 20,892 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 80,751 | — | — | 80,751 | |||||||||||||||
International Equities | — | 92,382 | — | — | 92,382 | |||||||||||||||
Real Estate | — | 10,761 | — | — | 10,761 | |||||||||||||||
Short-term investments and other | — | 8,414 | — | 2,430 | 10,844 | |||||||||||||||
Total Other Benefits | $ | 371,777 | $ | 374,132 | $ | — | $ | 2,430 | $ | 748,339 | ||||||||||
(a) Represents investments in a partnership that invests in privately held portfolio companies. | ||||||||||||||||||||
(b) This category consists primarily of debt securities issued by municipalities. | ||||||||||||||||||||
(c) Represents plan receivables and payables. | ||||||||||||||||||||
The fair value of Pinnacle West’s pension plan and other postretirement benefit plan assets at December 31, 2012, by asset category, are as follows (dollars in thousands): | ||||||||||||||||||||
Quoted Prices | Significant | Significant | Other (c) | Balance at | ||||||||||||||||
in Active | Other | Unobservable | December 31, | |||||||||||||||||
Markets for | Observable | Inputs | 2012 | |||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 579 | $ | — | $ | — | $ | — | $ | 579 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 607,749 | — | — | 607,749 | |||||||||||||||
U.S. Treasury | 232,161 | — | — | — | 232,161 | |||||||||||||||
Other (b) | — | 67,992 | — | — | 67,992 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 531,291 | — | — | — | 531,291 | |||||||||||||||
International Companies | 43,848 | — | — | — | 43,848 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 176,694 | — | — | 176,694 | |||||||||||||||
International Equities | — | 271,735 | — | — | 271,735 | |||||||||||||||
Real estate | — | 117,854 | — | — | 117,854 | |||||||||||||||
Short-term investments and other | — | 26,922 | 2,419 | (a) | (63 | ) | 29,278 | |||||||||||||
Total Pension Plan | $ | 807,879 | $ | 1,268,946 | $ | 2,419 | $ | (63 | ) | $ | 2,079,181 | |||||||||
Other Benefits: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 60 | $ | — | $ | — | $ | — | $ | 60 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 163,306 | — | — | 163,306 | |||||||||||||||
U.S. Treasury | 112,558 | — | — | — | 112,558 | |||||||||||||||
Other (b) | — | 33,998 | — | — | 33,998 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 205,714 | — | — | — | 205,714 | |||||||||||||||
International Companies | 14,412 | — | — | — | 14,412 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 60,038 | — | — | 60,038 | |||||||||||||||
International Equities | — | 76,969 | — | — | 76,969 | |||||||||||||||
Real Estate | — | 9,378 | — | — | 9,378 | |||||||||||||||
Short-term investments and other | 402 | 6,340 | — | 1,046 | 7,788 | |||||||||||||||
Total Other Benefits | $ | 333,146 | $ | 350,029 | $ | — | $ | 1,046 | $ | 684,221 | ||||||||||
(a) Represents investments in a partnership that invests in privately held portfolio companies. | ||||||||||||||||||||
(b) This category consists primarily of debt securities issued by municipalities. | ||||||||||||||||||||
(c) Represents plan receivables and payables. | ||||||||||||||||||||
The following table shows the changes in fair value for assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | ||||||||||||||||||||
Short-Term Investments and Other | 2013 | 2012 | ||||||||||||||||||
Beginning balance at January 1 | $ | 2,419 | $ | — | ||||||||||||||||
Actual return on assets still held at December 31 | (498 | ) | (668 | ) | ||||||||||||||||
Purchases, sales, and settlements | 6,739 | 3,087 | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||||||
Ending balance at December 31 | $ | 8,660 | $ | 2,419 | ||||||||||||||||
Contributions | ||||||||||||||||||||
Future year contribution amounts are dependent on plan asset performance and plan actuarial assumptions. We made contributions to our pension plan totaling $141 million in 2013, $65 million in 2012, and zero in 2011. The minimum contributions for the pension plan total $141 million for the next three years under the recently enacted Moving Ahead for Progress in the 21st Century Act (zero in 2014, $19 million in 2015, and $122 million in 2016). Instead, we expect to make voluntary contributions totaling $300 million for the next three years ($175 million in 2014, of which $70 million was already contributed in early 2014, up to $100 million in 2015, and up to $25 million in 2016). With regard to contributions to our other postretirement benefit plans, we made a contribution of approximately $14 million in 2013, $23 million in 2012, and $19 million in 2011. The contributions to our other postretirement benefit plans for 2014, 2015 and 2016 are expected to be approximately $10 million each year. APS funds its share of the contributions. APS’s share of the pension plan contribution was $140 million in 2013, $64 million in 2012, and zero in 2011. APS’s share of the contributions to the other postretirement benefit plan was $14 million in 2013, $22 million in 2012, and $19 million in 2011. | ||||||||||||||||||||
Estimated Future Benefit Payments | ||||||||||||||||||||
Benefit payments, which reflect estimated future employee service, for the next five years and the succeeding five years thereafter, are estimated to be as follows (dollars in thousands): | ||||||||||||||||||||
Year | Pension | Other Benefits | ||||||||||||||||||
2014 | $ | 129,159 | $ | 28,664 | ||||||||||||||||
2015 | 143,452 | 31,804 | ||||||||||||||||||
2016 | 149,105 | 34,933 | ||||||||||||||||||
2017 | 162,678 | 37,966 | ||||||||||||||||||
2018 | 169,064 | 40,972 | ||||||||||||||||||
Years 2019-2023 | 972,826 | 245,366 | ||||||||||||||||||
Electric plant participants contribute to the above amounts in accordance with their respective participation agreements. | ||||||||||||||||||||
Employee Savings Plan Benefits | ||||||||||||||||||||
Pinnacle West sponsors a defined contribution savings plan for eligible employees of Pinnacle West and its subsidiaries. In 2013, costs related to APS’s employees represented 99% of the total cost of this plan. In a defined contribution savings plan, the benefits a participant receives result from regular contributions participants make to their own individual account, the Company’s matching contributions and earnings or losses on their investments. Under this plan, the Company matches a percentage of the participants’ contributions in cash which is then invested in the same investment mix as participants elect to invest their own future contributions. Pinnacle West recorded expenses for this plan of approximately $9 million for 2013, $8 million for 2012, and $8 million for 2011. | ||||||||||||||||||||
Leases
Leases | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Leases | ' | |||||||
Leases | ' | |||||||
9. Leases | ||||||||
We lease certain vehicles, land, buildings, equipment and miscellaneous other items through operating rental agreements with varying terms, provisions and expiration dates. | ||||||||
Total lease expense recognized in the Consolidated Statements of Income was $18 million in 2013, $19 million in 2012, and $21 million in 2011. APS’s lease expense was $15 million in 2013, $16 million in 2012, and $18 million in 2011. | ||||||||
Estimated future minimum lease payments for Pinnacle West’s and APS’s operating leases, excluding purchased power agreements, are approximately as follows (dollars in millions): | ||||||||
Year | Pinnacle West | APS | ||||||
Consolidated | ||||||||
2014 | $ | 20 | $ | 17 | ||||
2015 | 17 | 14 | ||||||
2016 | 6 | 5 | ||||||
2017 | 5 | 5 | ||||||
2018 | 4 | 4 | ||||||
Thereafter | 59 | 59 | ||||||
Total future lease commitments | $ | 111 | $ | 104 | ||||
In 1986, APS entered into agreements with three separate lessor trust entities in order to sell and lease back interests in Palo Verde Unit 2 and related common facilities. These lessor trust entities have been deemed VIEs for which APS is the primary beneficiary. As the primary beneficiary, APS consolidated these lessor trust entities. The above lease disclosures exclude the impacts of these sale leaseback transactions, as lease accounting for these agreements is eliminated upon consolidation. See Note 19 for a discussion of VIEs. | ||||||||
JointlyOwned_Facilities
Jointly-Owned Facilities | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Jointly-Owned Facilities | ' | ||||||||||||
Jointly-Owned Facilities | ' | ||||||||||||
10. Jointly-Owned Facilities | |||||||||||||
APS shares ownership of some of its generating and transmission facilities with other companies. We are responsible for our share of operating costs, as well as for providing our own financing. Our share of operating expenses and utility plant costs related to these facilities is accounted for using proportional consolidation. The following table shows APS’s interests in those jointly-owned facilities recorded on the Consolidated Balance Sheets at December 31, 2013 (dollars in thousands): | |||||||||||||
Percent | Plant in | Accumulated | Construction | ||||||||||
Owned | Service | Depreciation | Work in | ||||||||||
Progress | |||||||||||||
Generating facilities: | |||||||||||||
Palo Verde Units 1 and 3 | 29.1 | % | $ | 1,701,844 | $ | 1,027,523 | $ | 22,400 | |||||
Palo Verde Unit 2 (a) | 16.8 | % | 543,972 | 338,918 | 10,095 | ||||||||
Palo Verde Common | 28 | % (b) | 538,818 | 219,801 | 81,599 | ||||||||
Palo Verde Sale Leaseback | (a) | 351,050 | 225,925 | — | |||||||||
Four Corners Units 4, 5 and Common (d) | 63 | % | 809,946 | 608,194 | 14,434 | ||||||||
Navajo Generating Station Units 1, 2 and 3 | 14 | % | 270,448 | 150,501 | 2,864 | ||||||||
Cholla common facilities (c) | 63.3 | % (b) | 148,299 | 47,851 | 7,159 | ||||||||
Transmission facilities: | |||||||||||||
ANPP 500kV System | 34.2 | % (b) | 98,145 | 32,350 | 1,095 | ||||||||
Navajo Southern System | 22.2 | % (b) | 58,702 | 16,937 | 518 | ||||||||
Palo Verde — Yuma 500kV System | 18 | % (b) | 12,115 | 4,656 | 11,786 | ||||||||
Four Corners Switchyards | 48.1 | % (b) | 33,460 | 9,052 | 185 | ||||||||
Phoenix — Mead System | 17.1 | % (b) | 39,758 | 12,140 | — | ||||||||
Palo Verde — Estrella 500kV System | 50 | % (b) | 89,571 | 14,883 | 21 | ||||||||
Morgan — Pinnacle Peak System | 64.5 | % (b) | 130,132 | 6,651 | 1,042 | ||||||||
Round Valley System | 50 | % (b) | 488 | 268 | — | ||||||||
Palo Verde — Morgan System | 90 | % (b) | — | — | 36,601 | ||||||||
(a) See Note 19. | |||||||||||||
(b) Weighted-average of interests. | |||||||||||||
(c) PacifiCorp owns Cholla Unit 4 and APS operates the unit for PacifiCorp. The common facilities at Cholla are jointly-owned. | |||||||||||||
(d) See Note 3. | |||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies. | ' | |||||||||||||||||||
Commitments and Contingencies | ' | |||||||||||||||||||
11. Commitments and Contingencies | ||||||||||||||||||||
Palo Verde Nuclear Generating Station | ||||||||||||||||||||
Spent Nuclear Fuel and Waste Disposal | ||||||||||||||||||||
On December 19, 2012, APS, acting on behalf of itself and the participant owners of Palo Verde, filed a breach of contract lawsuit against the DOE in the United States Court of Federal Claims. The lawsuit seeks to recover damages incurred due to DOE’s breach of the Standard Contract for failing to accept Palo Verde spent nuclear fuel and high level waste from January 1, 2007 through June 30, 2011, as it was required to do pursuant to the terms of the Standard Contract and the NWPA. This lawsuit is currently pending in the Court of Federal Claims. | ||||||||||||||||||||
APS currently estimates it will incur $122 million over the current life of Palo Verde for its share of the costs related to the on-site interim storage of spent nuclear fuel. At December 31, 2013, APS had a regulatory liability of $42 million that represents amounts recovered in retail rates in excess of amounts spent for on-site interim spent fuel storage. | ||||||||||||||||||||
Nuclear Insurance | ||||||||||||||||||||
Public liability for incidents at nuclear power plants is governed by the Price-Anderson Nuclear Industries Indemnity Act (“Price-Anderson Act”), which limits the liability of nuclear reactor owners to the amount of insurance available from both commercial sources and an industry retrospective payment plan. In accordance with the Price-Anderson Act, the Palo Verde participants are insured against public liability for a nuclear incident up to $13.6 billion per occurrence. Palo Verde maintains the maximum available nuclear liability insurance in the amount of $375 million, which is provided by commercial insurance carriers. The remaining balance of $13.2 billion of liability coverage is provided through a mandatory industry-wide retrospective assessment program. If losses at any nuclear power plant covered by the program exceed the accumulated funds, APS could be assessed retrospective premium adjustments. The maximum assessment per reactor under the program for each nuclear incident is approximately $127.3 million, subject to an annual limit of $19 million per incident, to be periodically adjusted for inflation. Based on APS’s interest in the three Palo Verde units, APS’s maximum potential retrospective assessment per incident for all three units is approximately $111 million, with an annual payment limitation of approximately $16.4 million. | ||||||||||||||||||||
The Palo Verde participants maintain “all risk” (including nuclear hazards) insurance for property damage to, and decontamination of, property at Palo Verde in the aggregate amount of $2.75 billion, a substantial portion of which must first be applied to stabilization and decontamination. APS has also secured insurance against portions of any increased cost of generation or purchased power and business interruption resulting from a sudden and unforeseen accidental outage of any of the three units. The property damage, decontamination, and replacement power coverages are provided by Nuclear Electric Insurance Limited (“NEIL”). Effective April 1, 2013, a sublimit of $1.5 billion for non-nuclear property damage losses site-wide has been imposed on the NEIL property policies. Effective April 1, 2013, a sublimit of $327.6 million per unit has been imposed on the non-nuclear losses covered by the NEIL accidental outage policy, potentially subject to further limitations. APS is subject to retrospective assessments under all NEIL policies if NEIL’s losses in any policy year exceed accumulated funds. The maximum amount APS could incur under the current NEIL policies totals approximately $18 million for each retrospective assessment declared by NEIL’s Board of Directors due to losses. In addition, NEIL policies contain rating triggers that would result in APS providing approximately $48 million of collateral assurance within 20 business days of a rating downgrade to non-investment grade. The insurance coverage discussed in this and the previous paragraph is subject to certain policy conditions, sublimits and exclusions. | ||||||||||||||||||||
Fuel and Purchased Power Commitments and Purchase Obligations | ||||||||||||||||||||
APS is party to purchase obligations and various fuel and purchased power contracts with terms expiring between 2014 and 2043 that include required purchase provisions. APS estimates the contract requirements to be approximately $729 million in 2014; $628 million in 2015; $638 million in 2016; $613 million in 2017; $580 million in 2018; and $8.7 billion thereafter. These fuel and purchased power commitments include the amounts incurred from acquiring SCE’s interest in Four Corners. However, these amounts may vary significantly pursuant to certain provisions in such contracts that permit us to decrease required purchases under certain circumstances. | ||||||||||||||||||||
Of the various fuel and purchased power contracts mentioned above, some of those contracts for coal supply include take-or-pay provisions. The current coal contracts with take-or-pay provisions have terms that expire in 2031. | ||||||||||||||||||||
The following table summarizes our estimated coal take-or-pay commitments (dollars in millions): | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
Coal take-or-pay commitments (a) | $ | 152 | $ | 157 | $ | 166 | $ | 180 | $ | 175 | $ | 2,539 | ||||||||
(a) Total take-or-pay commitments are approximately $3.4 billion. The total net present value of these commitments is approximately $2.2 billion. | ||||||||||||||||||||
APS spends more to meet its actual fuel requirements than the minimum purchase obligations in our coal take-or-pay contracts. The following table summarizes the actual amounts purchased under the coal contracts which include take-or-pay provisions for each of the last three years (dollars in millions): | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Total purchases | $ | 188 | $ | 196 | $ | 191 | ||||||||||||||
Renewable Energy Credits | ||||||||||||||||||||
APS has entered into contracts to purchase renewable energy credits to comply with the RES. APS estimates the contract requirements to be approximately $48 million in 2014; $42 million in 2015; $42 million in 2016; $42 million in 2017; $42 million in 2018; and $453 million thereafter. These amounts do not include purchases of renewable energy credits that are bundled with energy. Also, these amounts do not include purchases of renewable energy credits that are associated with purchased power contracts. | ||||||||||||||||||||
Coal Mine Reclamation Obligations | ||||||||||||||||||||
APS must reimburse certain coal providers for amounts incurred for final and contemporaneous coal mine reclamation. We account for contemporaneous reclamation costs as part of the cost of the delivered coal. We utilize site-specific studies of costs expected to be incurred in the future to estimate our final reclamation obligation. These studies utilize various assumptions to estimate the future costs. Based on the most recent reclamation studies, APS recorded a final coal mine reclamation obligation of approximately $207 million at December 31, 2013 and $119 million at December 31, 2012. Under our current coal supply agreements, we expect to make payments to certain coal providers for the final mine reclamation as follows: $1 million in 2014; $1 million in 2015; $8 million in 2016; $14 million in 2017; $14 million in 2018; and $170 million thereafter. Any amendments to current coal supply agreements may change the timing of the reimbursement. | ||||||||||||||||||||
Superfund | ||||||||||||||||||||
Superfund establishes liability for the cleanup of hazardous substances found contaminating the soil, water or air. Those who generated, transported or disposed of hazardous substances at a contaminated site are among those who are PRPs. PRPs may be strictly, and often are jointly and severally, liable for clean-up. On September 3, 2003, EPA advised APS that EPA considers APS to be a PRP in the OU3 in Phoenix, Arizona. APS has facilities that are within this Superfund site. APS and Pinnacle West have agreed with EPA to perform certain investigative activities of the APS facilities within OU3. In addition, on September 23, 2009, APS agreed with EPA and one other PRP to voluntarily assist with the funding and management of the site-wide groundwater remedial investigation and feasibility study work plan. We estimate that our costs related to this investigation and study will be approximately $2 million. We anticipate incurring additional expenditures in the future, but because the overall investigation is not complete and ultimate remediation requirements are not yet finalized, at the present time expenditures related to this matter cannot be reasonably estimated. | ||||||||||||||||||||
On August 6, 2013, RID filed a lawsuit in Arizona District Court against APS and 24 other defendants, alleging that RID’s groundwater wells were contaminated by the release of hazardous substances from facilities owned or operated by the defendants. The lawsuit also alleges that, under Superfund laws, the defendants are jointly and severally liable to RID. The allegations against APS arise out of APS’s current and former ownership of facilities in and around OU3. We are unable to determine a range of potential losses that are reasonably possible of occurring. | ||||||||||||||||||||
Southwest Power Outage | ||||||||||||||||||||
Regulatory. On September 8, 2011 at approximately 3:30 PM, a 500kV transmission line running between the Hassayampa and North Gila substations in southwestern Arizona tripped out of service due to a fault that occurred at a switchyard operated by APS. Approximately ten minutes after the transmission line went off-line, generation and transmission resources for the Yuma area were lost, resulting in approximately 69,700 APS customers losing service. | ||||||||||||||||||||
Within the same time period that APS’s Yuma customers lost service, a series of transmission and generation disruptions occurred across the systems of several utilities that resulted in outages affecting portions of southern Arizona, southern California and northern Mexico. A total of approximately 7,900 MW of firm load and 2.7 million customers were reported to have been affected. Service to all affected APS customers was restored by 9:15 PM on September 8. Service to customers affected by the wider regional outages was restored by approximately 3:25 AM on September 9. | ||||||||||||||||||||
FERC and the North American Electric Reliability Corporation (“NERC”) conducted a joint inquiry into the outages and, on May 1, 2012, they issued a report (the “Joint Report”) with their analysis and conclusions as to the causes of the events. The report includes recommendations to help industry operators prevent similar outages in the future, including increased data sharing and coordination among the western utilities and entities responsible for bulk electric system reliability coordination. The Joint Report does not address potential reliability violations or an assessment of responsibility of the parties involved. APS continues to analyze business practices and procedures related to the September 8 events. | ||||||||||||||||||||
On January 22, 2014, following non-public preliminary investigations, FERC Staff issued a Notice of Alleged Violations naming six entities involved in the event, including APS. FERC Staff alleges that each of the named entities violated varying numbers of NERC Reliability Standards. APS is alleged to have violated seven Reliability Standard Requirements. The allegations of violations are preliminary determinations by FERC Staff and do not constitute findings by FERC itself that any violations have occurred. | ||||||||||||||||||||
APS intends to work with FERC Staff to resolve the matter. If violations of the Reliability Standards are ultimately determined to have occurred, FERC has the legal authority to assert a possible fine of up to $1 million per violation per day that a violation is found to have been in existence. APS cannot predict the timing or financial or operational impacts that may result from the Staff’s Notice of Alleged Violations, including any payments that may result from a settlement if one is reached, or any claims that may be made as a result of the outages. | ||||||||||||||||||||
Litigation. On September 6, 2013, a purported consumer class action complaint was filed in Federal District Court in San Diego, California, naming APS and Pinnacle West as defendants and seeking damages for loss of perishable inventory and sales as a result of interruption of electrical service. APS and Pinnacle West filed a motion to dismiss, which the court granted on December 9, 2013. On January 13, 2014, the plaintiffs appealed the lower court’s decision. | ||||||||||||||||||||
Clean Air Act Citizen Lawsuit | ||||||||||||||||||||
On October 4, 2011, Earthjustice, on behalf of several environmental organizations, filed a lawsuit in the United States District Court for the District of New Mexico against APS and the other Four Corners participants alleging violations of the NSR provisions of the Clean Air Act. Subsequent to filing its original Complaint, on January 6, 2012, Earthjustice filed a First Amended Complaint adding claims for violations of the Clean Air Act’s NSPS program. Among other things, the environmental plaintiffs seek to have the court enjoin operations at Four Corners until APS applies for and obtains any required NSR permits and complies with the NSPS. The plaintiffs further request the court to order the payment of civil penalties, including a beneficial mitigation project. On April 2, 2012, APS and the other Four Corners participants filed motions to dismiss. The case is being held in abeyance while the parties seek to negotiate a settlement. On March 30, 2013, upon joint motion of the parties, the court issued an order deeming the motions to dismiss withdrawn without prejudice during pendency of the stay. At such time as the stay is lifted, APS and the other Four Corners participants may reinstate their motions to dismiss without risk of default. We are unable to determine a range of potential losses that are reasonably possible of occurring. | ||||||||||||||||||||
Environmental Matters | ||||||||||||||||||||
APS is subject to numerous environmental laws and regulations affecting many aspects of its present and future operations, including air emissions, water quality, wastewater discharges, solid waste, hazardous waste, and CCRs. These laws and regulations can change from time to time, imposing new obligations on APS resulting in increased capital, operating, and other costs. Associated capital expenditures or operating costs could be material. APS intends to seek recovery of any such environmental compliance costs through our rates, but cannot predict whether it will obtain such recovery. The following proposed and final rules involve material compliance costs to APS. | ||||||||||||||||||||
Regional Haze Rules. APS has received the final rulemaking imposing new requirements on Four Corners and Cholla and is currently awaiting a final rulemaking from EPA that could impose new requirements on the Navajo Plant. EPA and ADEQ will require these plants to install pollution control equipment that constitutes the BART to lessen the impacts of emissions on visibility surrounding the plants. Based on EPA’s final standards, APS’s 63% share of the cost of these controls for Four Corners Units 4 and 5 would be approximately $350 million. APS’s share of costs for upgrades at Navajo, based on EPA’s FIP proposal, could be up to approximately $200 million. APS has filed a Petition for Review of EPA’s rule as it applies to Cholla, which, if not successful, will require installation of controls with a cost to APS of approximately $200 million. | ||||||||||||||||||||
Mercury and Other Hazardous Air Pollutants. In 2011, EPA issued rules establishing maximum achievable control technology standards to regulate emissions of mercury and other hazardous air pollutants from fossil-fired plants. APS estimates that the cost for the remaining equipment necessary to meet these standards is approximately $120 million for Cholla Units 2 and 3. No additional equipment is needed for Four Corners Units 4 and 5 to comply with these rules. SRP, the operating agent for the Navajo Plant, is still evaluating compliance options under the rules. | ||||||||||||||||||||
Other future environmental rules that could involve material compliance costs include those related to cooling water intake structures, coal combustion waste, effluent limitations, ozone national ambient air quality, GHG emissions, and other rules or matters involving the Clean Air Act, Clean Water Act, ESA, the Navajo Nation, and water supplies for our power plants. The financial impact of complying with these and other future environmental rules could jeopardize the economic viability of our coal plants or the willingness or ability of power plant participants to fund any required equipment upgrades or continue their participation in these plants. The economics of continuing to own certain resources, particularly our coal plants, may deteriorate, warranting early retirement of those plants, which may result in asset impairments. APS would seek recovery in rates for the book value of any remaining investments in the plants as well as other costs related to early retirement, but cannot predict whether it would obtain such recovery. | ||||||||||||||||||||
Regional Haze Rules — Cholla | ||||||||||||||||||||
APS believes that EPA’s final rule as it applies to Cholla is unsupported and that EPA had no basis for disapproving Arizona’s SIP and promulgating a FIP that is inconsistent with the state’s considered BART determinations under the regional haze program. Accordingly, on February 1, 2013, APS filed a Petition for Review of the final BART rule in the United States Court of Appeals for the Ninth Circuit. We expect briefing in the case to be completed on February 21, 2014. | ||||||||||||||||||||
New Mexico Tax Matter | ||||||||||||||||||||
On May 23, 2013, the New Mexico Taxation and Revenue Department issued a notice of assessment for coal severance surtax, penalty, and interest totaling approximately $30 million related to coal supplied under the coal supply agreement for Four Corners (the “Assessment”). APS’s share of the Assessment is approximately $12 million. For procedural reasons, on behalf of the Four Corners co-owners, including APS, the coal supplier made a partial payment of the Assessment and immediately filed a refund claim with respect to that partial payment in August 2013. The New Mexico Taxation and Revenue Department denied the refund claim. On December 19, 2013, the coal supplier and APS, on its own behalf and as operating agent for Four Corners, filed a complaint with the New Mexico District Court contesting both the validity of the Assessment and the refund claim denial. APS believes the Assessment and the refund claim denial are without merit, but cannot predict the timing or outcome of this litigation. | ||||||||||||||||||||
Financial Assurances | ||||||||||||||||||||
APS has entered into various agreements that require letters of credit for financial assurance purposes. At December 31, 2013, approximately $76 million of letters of credit were outstanding to support existing pollution control bonds of a similar amount. The letters of credit are available to fund the payment of principal and interest of such debt obligations. One of these letters of credit expires in 2015 and two expire in 2016. APS has also entered into letters of credit to support certain equity participants in the Palo Verde sale leaseback transactions (see Note 19 for further details on the Palo Verde sale leaseback transactions). These letters of credit will expire on December 31, 2015, and totaled approximately $32 million at December 31, 2013. Additionally, APS has issued letters of credit to support collateral obligations under certain risk management arrangements, including certain natural gas tolling contracts entered into with third parties. At December 31, 2013, $55 million of such letters of credit were outstanding that will expire in 2014 and 2015. | ||||||||||||||||||||
We enter into agreements that include indemnification provisions relating to liabilities arising from or related to certain of our agreements. Most significantly, APS has agreed to indemnify the equity participants and other parties in the Palo Verde sale leaseback transactions with respect to certain tax matters. Generally, a maximum obligation is not explicitly stated in the indemnification provisions and, therefore, the overall maximum amount of the obligation under such indemnification provisions cannot be reasonably estimated. Based on historical experience and evaluation of the specific indemnities, we do not believe that any material loss related to such indemnification provisions is likely. | ||||||||||||||||||||
Pinnacle West has issued parental guarantees and surety bonds for APS which were not material at December 31, 2013. | ||||||||||||||||||||
Asset_Retirement_Obligations
Asset Retirement Obligations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Asset Retirement Obligations | ' | |||||||
12. Asset Retirement Obligations | ||||||||
APS has asset retirement obligations for its Palo Verde nuclear facilities and certain other generation, transmission and distribution assets. The Palo Verde asset retirement obligation primarily relates to final plant decommissioning. This obligation is based on the NRC’s requirements for disposal of radiated property or plant and agreements APS reached with the ACC for final decommissioning of the plant. During the fourth quarter of 2013, a new decommissioning study with updated cash flow estimates was completed for Palo Verde. | ||||||||
The non-nuclear generation asset retirement obligations primarily relate to requirements for removing portions of those plants at the end of the plant life or lease term. The Four Corners coal-fired power plant asset retirement obligation relates to final plant decommissioning, including ash pond closures. In the fourth quarter of 2012, a new study related to ash pond closure was completed which updated the total costs estimates and related cash flows. In the fourth quarter of 2013, APS finalized the transaction to acquire SCE’s interest in Four Corners. As part of that transaction, APS assumed SCE’s asset retirement obligation. Also, APS retired Four Corners Units 1-3 on December 30, 2013. Decommissioning activities began for Units 1-3 in January 2014. An update was made to the timing of the Units 1-3 decommissioning cash out flows to coincide with the expected decommissioning activities. | ||||||||
Some of APS’s transmission and distribution assets have asset retirement obligations because they are subject to right of way and easement agreements that require final removal. These agreements have a history of uninterrupted renewal that APS expects to continue. As a result, APS cannot reasonably estimate the fair value of the asset retirement obligation related to such distribution and transmission assets. | ||||||||
Additionally, APS has aquifer protection permits for some of its generation sites that require the closure of certain facilities at those sites. | ||||||||
The following schedule shows the change in our asset retirement obligations for 2013 and 2012 (dollars in millions): | ||||||||
2013 | 2012 | |||||||
Asset retirement obligations at the beginning of year | $ | 357 | $ | 280 | ||||
Changes attributable to: | ||||||||
Accretion expense | 24 | 19 | ||||||
Settlements | (12 | ) | — | |||||
Assumed SCE’s obligation | 34 | — | ||||||
Estimated cash flow revisions | (56 | ) | 58 | |||||
Asset retirement obligations at the end of year | $ | 347 | $ | 357 | ||||
Decommissioning activities for Four Corners Units 1-3 will begin in January 2014; thus, $33 million of the total asset retirement obligation of $347 million at December 31, 2013, is classified as a current liability on the balance sheet. | ||||||||
In accordance with regulatory accounting, APS accrues removal costs for its regulated utility assets, even if there is no legal obligation for removal. See detail of regulatory liabilities in Note 3. | ||||||||
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
13. Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
Consolidated quarterly financial information for 2013 and 2012 is provided in the tables below (dollars in thousands, except per share amounts). Weather conditions cause significant seasonal fluctuations in our revenues; therefore, results for interim periods do not necessarily represent results expected for the year. | |||||||||||||||||
2013 Quarter Ended | 2013 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 686,652 | $ | 915,822 | $ | 1,152,392 | $ | 699,762 | $ | 3,454,628 | |||||||
Operations and maintenance | 223,250 | 229,300 | 233,323 | 238,854 | 924,727 | ||||||||||||
Operating income | 86,923 | 259,812 | 415,688 | 83,900 | 846,323 | ||||||||||||
Income taxes | 12,469 | 77,043 | 131,912 | 9,167 | 230,591 | ||||||||||||
Income from continuing operations | 32,836 | 139,598 | 234,718 | 32,814 | 439,966 | ||||||||||||
Net income attributable to common shareholders | 24,444 | 131,207 | 226,163 | 24,260 | 406,074 | ||||||||||||
Earnings Per Share: | |||||||||||||||||
Income from continuing operations attributable to common shareholders — Basic | $ | 0.22 | $ | 1.19 | $ | 2.06 | $ | 0.22 | $ | 3.69 | |||||||
Net income attributable to common shareholders — Basic | 0.22 | 1.19 | 2.06 | 0.22 | 3.69 | ||||||||||||
Income from continuing operations attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
Net income attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
2012 Quarter Ended | 2012 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 620,631 | $ | 878,576 | $ | 1,109,475 | $ | 693,122 | $ | 3,301,804 | |||||||
Operations and maintenance | 210,663 | 216,236 | 220,729 | 237,141 | 884,769 | ||||||||||||
Operating income | 48,007 | 254,489 | 447,970 | 101,289 | 851,755 | ||||||||||||
Income taxes | (4,645 | ) | 76,689 | 147,116 | 18,157 | 237,317 | |||||||||||
Income from continuing operations | 284 | 130,930 | 252,874 | 34,905 | 418,993 | ||||||||||||
Net income (loss) attributable to common shareholders | (8,257 | ) | 122,345 | 244,823 | 22,631 | 381,542 | |||||||||||
Earnings Per Share: | |||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders — Basic | $ | (0.07 | ) | $ | 1.12 | $ | 2.23 | $ | 0.24 | $ | 3.54 | ||||||
Net income (loss) attributable to common shareholders — Basic | (0.08 | ) | 1.12 | 2.23 | 0.21 | 3.48 | |||||||||||
Income (loss) from continuing operations attributable to common shareholders — Diluted | (0.07 | ) | 1.12 | 2.21 | 0.24 | 3.5 | |||||||||||
Net income (loss) attributable to common shareholders — Diluted | (0.08 | ) | 1.11 | 2.21 | 0.2 | 3.45 | |||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
14. Fair Value Measurements | |||||||||||||||||
We classify our assets and liabilities that are carried at fair value within the fair value hierarchy. This hierarchy ranks the quality and reliability of the inputs used to determine fair values, which are then classified and disclosed in one of three categories. The three levels of the fair value hierarchy are: | |||||||||||||||||
Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access at the measurement date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide information on an ongoing basis. This category includes exchange traded equities, exchange traded derivative instruments, cash equivalents, and investments in U.S. Treasury securities. | |||||||||||||||||
Level 2 — Utilizes quoted prices in active markets for similar assets or liabilities; quoted prices in markets that are not active; and model-derived valuations whose inputs are observable (such as yield curves). This category includes non-exchange traded contracts such as forwards, options, swaps and certain investments in fixed income securities. This category also includes investments in common and collective trusts and commingled funds that are redeemable and valued based on NAV. | |||||||||||||||||
Level 3 — Valuation models with significant unobservable inputs that are supported by little or no market activity. Instruments in this category include long-dated derivative transactions where valuations are unobservable due to the length of the transaction, options, and transactions in locations where observable market data does not exist. The valuation models we employ utilize spot prices, forward prices, historical market data and other factors to forecast future prices. | |||||||||||||||||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Thus, a valuation may be classified in Level 3 even though the valuation may include significant inputs that are readily observable. We maximize the use of observable inputs and minimize the use of unobservable inputs. We rely primarily on the market approach of using prices and other market information for identical and/or comparable assets and liabilities. If market data is not readily available, inputs may reflect our own assumptions about the inputs market participants would use. Our assessment of the inputs and the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities as well as their placement within the fair value hierarchy levels. We assess whether a market is active by obtaining observable broker quotes, reviewing actual market activity, and assessing the volume of transactions. We consider broker quotes observable inputs when the quote is binding on the broker, we can validate the quote with market activity, or we can determine that the inputs the broker used to arrive at the quoted price are observable. | |||||||||||||||||
Recurring Fair Value Measurements | |||||||||||||||||
We apply recurring fair value measurements to certain cash equivalents, derivative instruments, investments held in our nuclear decommissioning trust and plan assets held in our retirement and other benefit plans. See Note 8 for the fair value discussion of plan assets held in our retirement and other benefit plans. | |||||||||||||||||
Cash Equivalents | |||||||||||||||||
Cash equivalents represent short-term investments with original maturities of three months or less in exchange traded money market funds that are valued using quoted prices in active markets. | |||||||||||||||||
Risk Management Activities — Derivative Instruments | |||||||||||||||||
Exchange traded commodity contracts are valued using unadjusted quoted prices. For non-exchange traded commodity contracts, we calculate fair value based on the average of the bid and offer price, discounted to reflect net present value. We maintain certain valuation adjustments for a number of risks associated with the valuation of future commitments. These include valuation adjustments for liquidity and credit risks. The liquidity valuation adjustment represents the cost that would be incurred if all unmatched positions were closed out or hedged. The credit valuation adjustment represents estimated credit losses on our net exposure to counterparties, taking into account netting agreements, expected default experience for the credit rating of the counterparties and the overall diversification of the portfolio. We maintain credit policies that management believes minimize overall credit risk. | |||||||||||||||||
Certain non-exchange traded commodity contracts are valued based on unobservable inputs due to the long-term nature of contracts or the unique location of the transactions. Our long-dated energy transactions consist of observable valuations for the near-term portion and unobservable valuations for the long-term portions of the transaction. We rely primarily on broker quotes to value these instruments. When our valuations utilize broker quotes, we perform various control procedures to ensure the quote has been developed consistent with fair value accounting guidance. These controls include assessing the quote for reasonableness by comparison against other broker quotes, reviewing historical price relationships, and assessing market activity. When broker quotes are not available, the primary valuation technique used to calculate the fair value is the extrapolation of forward pricing curves using observable market data for more liquid delivery points in the same region and actual transactions at more illiquid delivery points. | |||||||||||||||||
Option contracts are primarily valued using a Black-Scholes option valuation model, which utilizes both observable and unobservable inputs such as broker quotes, interest rates and price volatilities. | |||||||||||||||||
When the unobservable portion is significant to the overall valuation of the transaction, the entire transaction is classified as Level 3. Our classification of instruments as Level 3 is primarily reflective of the long-term nature of our energy transactions and the use of option valuation models with significant unobservable inputs. | |||||||||||||||||
Our energy risk management committee, consisting of officers and key management personnel, oversees our energy risk management activities to ensure compliance with our stated energy risk management policies. We have a risk control function that is responsible for valuing our derivative commodity instruments in accordance with established policies and procedures. The risk control function reports to the chief financial officer’s organization. | |||||||||||||||||
Investments Held in our Nuclear Decommissioning Trust | |||||||||||||||||
The nuclear decommissioning trust invests in fixed income securities and equity securities. Equity securities are held indirectly through commingled funds. The commingled funds are valued based on the concept of NAV, which is a value primarily derived from the quoted active market prices of the underlying equity securities. We may transact in these commingled funds on a semi-monthly basis at the NAV, and accordingly classify these investments as Level 2. The commingled funds, which are similar to mutual funds, are maintained by a bank and hold investments in accordance with the stated objective of tracking the performance of the S&P 500 Index. Because the commingled fund shares are offered to a limited group of investors, they are not considered to be traded in an active market. | |||||||||||||||||
Cash equivalents reported within Level 2 represent investments held in a short-term investment commingled fund, valued using NAV, which invests in U.S. government fixed income securities. We may transact in this commingled fund on a daily basis at the NAV. | |||||||||||||||||
Fixed income securities issued by the U.S. Treasury held directly by the nuclear decommissioning trust are valued using quoted active market prices and are classified as Level 1. Fixed income securities issued by corporations, municipalities, and other agencies, including mortgage-backed instruments, are valued using quoted inactive market prices, quoted active market prices for similar securities, or by utilizing calculations which incorporate observable inputs such as yield curves and spreads relative to such yield curves. These instruments are classified as Level 2. Whenever possible, multiple market quotes are obtained which enables a cross-check validation. A primary price source is identified based on asset type, class, or issue of securities. | |||||||||||||||||
Our trustee provides valuation of our nuclear decommissioning trust assets by using pricing services that utilize the valuation methodologies described to determine fair market value. We have internal control procedures designed to ensure this information is consistent with fair value accounting guidance. These procedures include assessing valuations using an independent pricing source, verifying that pricing can be supported by actual recent market transactions, assessing hierarchy classifications, comparing investment returns with benchmarks, and obtaining and reviewing independent audit reports on the trustee’s internal operating controls and valuation processes. See Note 20 for additional discussion about our nuclear decommissioning trust. | |||||||||||||||||
Fair Value Tables | |||||||||||||||||
The following table presents the fair value at December 31, 2013 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions): | |||||||||||||||||
Quoted Prices | Significant | Significant | Other | Balance at | |||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs (a) | 2013 | ||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity Contracts | $ | — | $ | 9 | $ | 41 | $ | (9 | ) (b) | $ | 41 | ||||||
Nuclear decommissioning trust: | |||||||||||||||||
U.S. commingled equity funds | — | 272 | — | — | 272 | ||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasury | 107 | — | — | — | 107 | ||||||||||||
Cash and cash equivalent funds | — | 11 | — | (3 | ) (c) | 8 | |||||||||||
Corporate debt | — | 88 | — | — | 88 | ||||||||||||
Mortgage-backed securities | — | 85 | — | — | 85 | ||||||||||||
Municipality bonds | — | 71 | — | — | 71 | ||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||
Subtotal nuclear decommissioning trust | 107 | 538 | — | (3 | ) | 642 | |||||||||||
Total | $ | 107 | $ | 547 | $ | 41 | $ | (12 | ) | $ | 683 | ||||||
Liabilities | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity contracts | $ | — | $ | (33 | ) | $ | (90 | ) | $ | 21 | (b) | $ | (102 | ) | |||
(a) Primarily consists of heat rate options and other long-dated electricity contracts. | |||||||||||||||||
(b) Represents counterparty netting, margin and collateral. See Note 17. | |||||||||||||||||
(c) Represents nuclear decommissioning trust net pending securities sales and purchases. | |||||||||||||||||
The following table presents the fair value at December 31, 2012 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions): | |||||||||||||||||
Quoted Prices | Significant | Significant | Other | Balance at | |||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs (a) | 2012 | ||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 16 | $ | — | $ | — | $ | — | $ | 16 | |||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity Contracts | — | 22 | 62 | (22 | ) (b) | 62 | |||||||||||
Nuclear decommissioning trust: | |||||||||||||||||
U.S. commingled equity funds | — | 204 | — | — | 204 | ||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasury | 104 | — | — | — | 104 | ||||||||||||
Cash and cash equivalent funds | 6 | 13 | — | (4 | ) (c) | 15 | |||||||||||
Corporate debt | — | 80 | — | — | 80 | ||||||||||||
Mortgage-backed securities | — | 83 | — | — | 83 | ||||||||||||
Municipality bonds | — | 74 | — | — | 74 | ||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||
Subtotal nuclear decommissioning trust | 110 | 465 | — | (4 | ) | 571 | |||||||||||
Total | $ | 126 | $ | 487 | $ | 62 | $ | (26 | ) | $ | 649 | ||||||
Liabilities | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity contracts | $ | — | $ | (96 | ) | $ | (110 | ) | $ | 47 | (b) | $ | (159 | ) | |||
(a) Primarily consists of heat rate options and other long-dated electricity contracts. | |||||||||||||||||
(b) Represents counterparty netting, margin and collateral. See Note 17. | |||||||||||||||||
(c) Represents nuclear decommissioning trust net pending securities sales and purchases. | |||||||||||||||||
Fair Value Measurements Classified as Level 3 | |||||||||||||||||
The significant unobservable inputs used in the fair value measurement of our energy derivative contracts include broker quotes that cannot be validated as an observable input primarily due to the long-term nature of the quote and option model inputs. Significant changes in these inputs in isolation would result in significantly higher or lower fair value measurements. Changes in our derivative contract fair values, including changes relating to unobservable inputs, typically will not impact net income due to regulatory accounting treatment (see Note 3). | |||||||||||||||||
Because our forward commodity contracts classified as Level 3 are currently in a net purchase position, we would expect price increases of the underlying commodity to result in increases in the net fair value of the related contracts. Conversely, if the price of the underlying commodity decreases, the net fair value of the related contracts would likely decrease. | |||||||||||||||||
Our option contracts classified as Level 3 primarily relate to purchase heat rate options. The significant unobservable inputs for these instruments include electricity prices, gas prices and volatilities. If electricity prices and electricity price volatilities increase, we would expect the fair value of these options to increase, and if these valuation inputs decrease, we would expect the fair value of these options to decrease. If natural gas prices and natural gas price volatilities increase, we would expect the fair value of these options to decrease, and if these inputs decrease, we would expect the fair value of the options to increase. The commodity prices and volatilities do not always move in corresponding directions. The options’ fair values are impacted by the net changes of these various inputs. | |||||||||||||||||
Other unobservable valuation inputs include credit and liquidity reserves which do not have a material impact on our valuations; however, significant changes in these inputs could also result in higher or lower fair value measurements. | |||||||||||||||||
The following tables provide information regarding our significant unobservable inputs used to value our risk management derivative Level 3 instruments at December 31, 2013 and December 31, 2012: | |||||||||||||||||
December 31, 2013 | Valuation | Significant | Weighted- | ||||||||||||||
Fair Value (millions) | |||||||||||||||||
Commodity Contracts | Assets | Liabilities | Technique | Unobservable Input | Range | Average | |||||||||||
Electricity: | |||||||||||||||||
Forward Contracts (a) | $ | 40 | $ | 66 | Discounted cash flows | Electricity forward price (per MWh) | $24.89 - $65.04 | $ | 41.09 | ||||||||
Option Contracts (b) | — | 19 | Option model | Electricity forward price (per MWh) | $39.91 - $85.41 | $ | 58.7 | ||||||||||
Natural gas forward price (per MMbtu) | $3.57 - $3.80 | $ | 3.71 | ||||||||||||||
Electricity price volatilities | 35% - 94% | 59 | % | ||||||||||||||
Natural gas price volatilities | 22% - 36% | 27 | % | ||||||||||||||
Natural Gas: | |||||||||||||||||
Forward Contracts (a) | 1 | 5 | Discounted cash flows | Natural gas forward price (per MMbtu) | $3.47 - $4.31 | $ | 3.87 | ||||||||||
Total | $ | 41 | $ | 90 | |||||||||||||
(a) Includes swaps and physical and financial contracts. | |||||||||||||||||
(b) Electricity and natural gas price volatilities are estimated based on historical forward price movements due to lack of market quotes for implied volatilities. | |||||||||||||||||
December 31, 2012 | Valuation | Significant | Weighted- | ||||||||||||||
Fair Value (millions) | |||||||||||||||||
Commodity Contracts | Assets | Liabilities | Technique | Unobservable Input | Range | Average | |||||||||||
Electricity: | |||||||||||||||||
Forward Contracts (a) | $ | 57 | $ | 82 | Discounted cash flows | Electricity forward price (per MWh) | $23.06 - $64.20 | $ | 43.16 | ||||||||
Option Contracts | — | 27 | Option model | Electricity forward price (per MWh) | $36.66 - $92.19 | $ | 60.97 | ||||||||||
Natural gas forward price (per MMbtu) | $4.10 - $4.25 | $ | 4.2 | ||||||||||||||
Implied electricity price volatilities | 15% - 66% | 39 | % | ||||||||||||||
Implied natural gas price volatilities | 17% - 36% | 23 | % | ||||||||||||||
Natural Gas: | |||||||||||||||||
Forward Contracts (a) | 5 | 1 | Discounted cash flows | Natural gas forward price (per MMbtu) | $3.25 - $4.44 | $ | 3.93 | ||||||||||
Total | $ | 62 | $ | 110 | |||||||||||||
(a) Includes swaps and physical and financial contracts. | |||||||||||||||||
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 for the years ended December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
Commodity Contracts | 2013 | 2012 | |||||||||||||||
Net derivative balance at beginning of period | $ | (48 | ) | $ | (51 | ) | |||||||||||
Total net gains (losses) realized/unrealized: | |||||||||||||||||
Included in earnings | — | 2 | |||||||||||||||
Included in OCI | — | (3 | ) | ||||||||||||||
Deferred as a regulatory asset or liability | (10 | ) | 7 | ||||||||||||||
Settlements | 10 | (5 | ) | ||||||||||||||
Transfers into Level 3 from Level 2 | — | (2 | ) | ||||||||||||||
Transfers from Level 3 into Level 2 | (1 | ) | 4 | ||||||||||||||
Net derivative balance at end of period | $ | (49 | ) | $ | (48 | ) | |||||||||||
Net unrealized gains included in earnings related to instruments still held at end of period | $ | — | $ | — | |||||||||||||
Amounts included in earnings are recorded in either operating revenues or fuel and purchased power depending on the nature of the underlying contract. | |||||||||||||||||
Transfers reflect the fair market value at the beginning of the period and are triggered by a change in the lowest significant input as of the end of the period. We had no significant Level 1 transfers to or from any other hierarchy level. Transfers in or out of Level 3 are typically related to our heat rate options and long-dated energy transactions that extend beyond available quoted periods. | |||||||||||||||||
Financial Instruments Not Carried at Fair Value | |||||||||||||||||
The carrying value of our net accounts receivable, accounts payable and short-term borrowings approximate fair value. Our short-term borrowings are classified within Level 2 of the fair value hierarchy. See Note 6 for our long-term debt fair values. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Earnings Per Share | ' | ||||||||||
15. Earnings Per Share | |||||||||||
The following table presents earnings attributable to common shareholders per weighted-average common share outstanding for the years ended December 31, 2013, 2012 and 2011: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Basic earnings per share: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.69 | $ | 3.54 | $ | 3.01 | |||||
Income (loss) from discontinued operations | — | (0.06 | ) | 0.1 | |||||||
Earnings per share – basic | $ | 3.69 | $ | 3.48 | $ | 3.11 | |||||
Diluted earnings per share: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.66 | $ | 3.5 | $ | 2.99 | |||||
Income (loss) from discontinued operations | — | (0.05 | ) | 0.1 | |||||||
Earnings per share – diluted | $ | 3.66 | $ | 3.45 | $ | 3.09 | |||||
Dilutive stock options and performance shares (which are contingently issuable) increased average common shares outstanding by approximately 822,000 shares in 2013, 1,017,000 shares in 2012 and 811,000 shares in 2011. Total average common shares outstanding for the purposes of calculating diluted earnings per share were 110,805,943 shares in 2013, 110,527,311 shares in 2012 and 109,864,243 shares in 2011. | |||||||||||
For the years ended 2013, 2012 and 2011, there were no common stock options that were excluded from the computation of diluted earnings per share as a result of the options’ exercise prices being greater than the average market price of the common shares. | |||||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock-Based Compensation | ' | ||||||||||
Stock-Based Compensation | ' | ||||||||||
16. Stock-Based Compensation | |||||||||||
Pinnacle West grants long-term incentive awards under the 2012 Long-Term Incentive Plan (“2012 Plan”) in the form of Stock Grants, Restricted Stock Units and Performance Shares and may grant restricted stock, stock units, dividend equivalents, performance share units, performance cash, incentive and non-qualified stock options, and stock appreciation rights. The 2012 Plan, effective May 16, 2012, provides 4,595,500 common shares to be available for grant to eligible employees and members of the Board of Directors. Awards made since 2012 were issued under the 2012 Plan, and prior awards from 2007 to 2011 were issued under the 2007 Long-Term Incentive Plan (“2007 Plan”). | |||||||||||
Restricted Stock Unit Awards and Stock Grants | |||||||||||
Stock grants issued to non-officer members of the Board of Directors in 2013, 2012 and 2011, provided the members of the Board of Directors the option to elect to receive a stock grant, or to defer receipt until a later date and receive restricted stock units in lieu of the stock grant. The members of the Board of Directors who elect to defer may elect to receive payment in either stock, or 50% in cash and 50% in stock. The members of the Board of Directors may elect to receive payments either as of the last business day of the month following the month in which they separate from service on the Board of Directors, or as of a specified date, which must be after December 31 of the year in which the grant was received. The deferred restricted stock units accrue dividend rights, equal to the amount of dividends the Directors would have received had they directly owned stock equal to the number of vested restricted stock units from the date of grant to the date of payment plus interest compounded quarterly. The dividends and interest are paid, based on the Director’s election, in either stock, or 50% in cash and 50% in stock. | |||||||||||
Restricted stock units have been granted to officers and key employees in each year since 2007. From 2007 through 2009, officers and key employees elected to receive payment in either cash or in fully transferable shares of stock, in exchange for each restricted stock unit on pre-established valuation dates. From 2010 through 2013, officers and key employees elected to receive payment in either stock, or 50% in cash and 50% in stock. | |||||||||||
Restricted stock unit awards vest and settle over a four-year period. In addition, officers and key employees accrue dividend rights on vested restricted stock units, equal to the amount of dividends that they would have received had they directly owned stock, equal to the number of vested restricted stock units from the date of grant to the date of payment plus interest compounded quarterly. The dividends and interest for the 2007 through 2009 awards are paid in cash. The dividends and interest for the 2010 through 2013 awards are paid in the same form as the restricted stock unit payment election. Restricted stock unit awards are accounted for as a liability award, with compensation cost initially calculated on the date of grant using the Company’s closing stock price, and remeasured at each balance sheet date. Compensation expense for retirement eligible participants is recognized immediately. | |||||||||||
In December 2012, the Company granted a retention award of 50,617 restricted stock units to the Chairman of the Board, President, and Chief Executive Officer of Pinnacle West. The award will vest and will be paid in shares of common stock on December 31, 2016, provided that he remains employed with the Company until the vesting date. The award will accrue notional dividends equal to the amount of dividends that would have been received if the Chairman of the Board, President and Chief Executive Officer had directly owned one share of Pinnacle West common stock for each restricted stock unit held from the grant date to each dividend payment date. The award can be increased up to an additional 33,745 restricted stock units payable in stock if certain performance requirements are met. | |||||||||||
A grant of restricted stock unit awards was made to officers of the company on February 15, 2011, payable solely in shares of common stock upon the officer’s retirement or other separation of employment. This award vested 50% on February 15, 2013. The remaining grant will vest 25% on February 15, 2014 and 25% on February 15, 2015, provided that the officer remains employed on such date. The officers will also accrue notional dividends equal to the amount of dividends that they would have received if they had directly owned one share of Pinnacle West common stock for each restricted stock unit held from the grant date to each dividend payment date. Each additional restricted stock unit will proportionally vest on the same remaining vesting schedule that applies to the original restricted stock unit. | |||||||||||
The following table is a summary of granted restricted stock units and stock grants and the weighted-average fair value for the three years ended 2013, 2012 and 2011: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Units granted | 129,620 | 202,278 | 292,242 | ||||||||
Grant date fair value (a) | $ | 55.21 | $ | 49.31 | $ | 41.98 | |||||
(a) Weighted-average grant date fair value. | |||||||||||
The following table is a summary of the status of restricted stock units and stock grants, as of December 31, 2013 and changes during the year. This table represents only the stock portion of restricted stock units, per the election on payment discussed in the paragraph above: | |||||||||||
Nonvested shares | Shares | Weighted-Average | |||||||||
Grant Date Fair Value | |||||||||||
Nonvested at January 1, 2013 | 480,753 | $ | 43.58 | ||||||||
Granted | 129,620 | 55.21 | |||||||||
Vested | 191,988 | 40.33 | |||||||||
Forfeited | 20,409 | 45.7 | |||||||||
Nonvested at December 31, 2013 | 397,976 | 47.74 | |||||||||
The amount of cash required to settle the payments on restricted stock units is (dollars in millions): | |||||||||||
Year | 2013 | 2012 | 2011 | ||||||||
2007 Grant | $ | — | $ | — | $ | 1 | |||||
2008 Grant | — | 1.9 | 1.6 | ||||||||
2009 Grant | 3 | 1.7 | 1.5 | ||||||||
2010 Grant | 2.3 | 0.6 | 0.6 | ||||||||
2011 Grant | 2.5 | 0.7 | — | ||||||||
2012 Grant | 2.2 | — | — | ||||||||
Performance Share Awards | |||||||||||
Performance share awards have been granted to officers and key employees under the 2012 Plan since 2012 and under the 2007 Plan from 2008 to 2011. Performance share awards contain two performance element criteria that affect the number of shares received after the end of a three-year performance period if performance criteria conditions are met. | |||||||||||
The 2013, 2012 and 2011 performance share grant criteria is based 50% upon the percentile ranking of Pinnacle West’s total shareholder return at the end of the three-year performance period, as compared with the total shareholder return of all relevant companies in a specified utility index and the other 50% is based upon six non-financial separate performance metrics. The exact number of shares issued will vary from 0% to 200% of the target award. Shares received include dividend rights paid in stock equal to the amount of dividends that they would have received had they directly owned stock, equal to the number of vested performance shares from the date of grant to the date of payment plus interest compounded quarterly. | |||||||||||
Performance share awards are accounted for as liability awards, with compensation cost initially calculated on the date of grant using the Company’s closing stock price, and remeasured at each balance sheet date. Compensation expense for retirement eligible participants is recognized immediately. Management also evaluates the probability of meeting the performance criteria at each balance sheet date. If performance criteria are not achieved, no compensation cost is recognized and any previously recognized compensation cost is reversed. | |||||||||||
The following table is a summary of the performance shares granted and the weighted-average fair value for the three years ended 2013, 2012 and 2011: | |||||||||||
2013 | 2012 | 2011 | |||||||||
Units granted (a) | 176,332 | 185,878 | 175,072 | ||||||||
Grant date fair value (b) | $ | 55.45 | $ | 47.4 | $ | 41.71 | |||||
(a) Reflects the target payout level. | |||||||||||
(b) Weighted-average grant date fair value. | |||||||||||
The following table is a summary of the status of performance shares, as of December 31, 2013 and changes during the year: | |||||||||||
Nonvested shares (a) | Shares | Weighted-Average | |||||||||
Grant Date Fair Value | |||||||||||
Nonvested at January 1, 2013 | 347,690 | $ | 44.67 | ||||||||
Granted | 176,332 | 55.45 | |||||||||
Increase in performance factor | 40,183 | 41.71 | |||||||||
Vested | 200,915 | 41.71 | |||||||||
Forfeited | 18,894 | 48.11 | |||||||||
Nonvested at December 31, 2013 | 344,396 | 51.13 | |||||||||
(a) Nonvested shares are reflected at target payout level. The increase or decrease in the number of shares from the target level to the estimated actual payout level is included in the increase for performance factor amounts in the year the award vests. | |||||||||||
Stock Options | |||||||||||
The Company has not granted stock options since 2004 and has no stock options outstanding. | |||||||||||
The following table summarizes the option activity under prior equity incentive plans for the year ended December 31, 2013: | |||||||||||
Options | Shares | Weighted- | |||||||||
Average | |||||||||||
Exercise | |||||||||||
Price | |||||||||||
Outstanding at January 1, 2013 | 7,925 | $ | 32.29 | ||||||||
Exercised | 3,625 | 32.29 | |||||||||
Forfeited or expired | 4,300 | 32.29 | |||||||||
Outstanding at December 31, 2013 | — | — | |||||||||
Cash received from options exercised under our share-based payment arrangements was $0.1 million for 2013, $0.5 million for 2012, and $1.8 million for 2011. The tax benefit realized for the tax deductions from option exercises of the share-based payment arrangements were immaterial for all years. | |||||||||||
The intrinsic value of options exercised was immaterial for all years. | |||||||||||
As of December 31, 2013, there was $17 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements granted under the plans. That cost is expected to be recognized over a weighted-average period of 2.0 years. The total fair value of shares vested during 2013, 2012 and 2011 was $20 million, $19 million and $14 million, respectively. | |||||||||||
The compensation cost that has been charged against Pinnacle West’s income for share-based compensation plans was $25 million in 2013, $32 million in 2012, and $23 million in 2011. The compensation cost that Pinnacle West has capitalized is immaterial for all years. Pinnacle West’s total income tax benefit recognized in the Consolidated Statements of Income for share-based compensation arrangements was $10 million in 2013, $13 million in 2012, and $9 million in 2011. APS’s share of compensation cost that has been charged against income was $25 million in 2013, $32 million in 2012, and $22 million in 2011. | |||||||||||
Pinnacle West’s current policy is to issue new shares to satisfy share requirements for stock compensation plans, and it does not expect to repurchase any shares except to satisfy tax withholding obligations upon the vesting of restricted stock units and performance shares. | |||||||||||
Derivative_Accounting
Derivative Accounting | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Accounting | ' | ||||||||||||||||
Derivative Accounting | ' | ||||||||||||||||
17. Derivative Accounting | |||||||||||||||||
We are exposed to the impact of market fluctuations in the commodity price and transportation costs of electricity, natural gas, coal, emissions allowances and in interest rates. We manage risks associated with market volatility by utilizing various physical and financial derivative instruments, including futures, forwards, options and swaps. As part of our overall risk management program, we may use derivative instruments to hedge purchases and sales of electricity and fuels. Derivative instruments that meet certain hedge accounting criteria may be designated as cash flow hedges and are used to limit our exposure to cash flow variability on forecasted transactions. The changes in market value of such instruments have a high correlation to price changes in the hedged transactions. We also enter into derivative instruments for economic hedging purposes. While we believe the economic hedges mitigate exposure to fluctuations in commodity prices, these instruments have not been designated as accounting hedges. Contracts that have the same terms (quantities, delivery points and delivery periods) and for which power does not flow are netted, which reduces both revenues and fuel and purchased power costs in our Consolidated Statements of Income, but does not impact our financial condition, net income or cash flows. | |||||||||||||||||
On June 1, 2012, we elected to discontinue cash flow hedge accounting treatment for the significant majority of our contracts that had previously been designated as cash flow hedges. This discontinuation is due to changes in PSA recovery (see Note 3), which now allows for 100% deferral of the unrealized gains and losses relating to these contracts. For those contracts that were de-designated, all changes in fair value after May 31, 2012 are no longer recorded through OCI, but are deferred through the PSA. The amounts previously recorded in accumulated OCI relating to these instruments will remain in accumulated OCI, and will transfer to earnings in the same period or periods during which the hedged transaction affects earnings or sooner if we determine it is probable that the forecasted transaction will not occur. When amounts have been reclassified from accumulated OCI to earnings, they will be subject to deferral in accordance with the PSA. Cash flow hedge accounting treatment will continue for a limited number of contracts that are not subject to PSA recovery. | |||||||||||||||||
Our derivative instruments, excluding those qualifying for a scope exception, are recorded on the balance sheet as an asset or liability and are measured at fair value. See Note 14 for a discussion of fair value measurements. Derivative instruments may qualify for the normal purchases and normal sales scope exception if they require physical delivery and the quantities represent those transacted in the normal course of business. Derivative instruments qualifying for the normal purchases and sales scope exception are accounted for under the accrual method of accounting and excluded from our derivative instrument discussion and disclosures below. | |||||||||||||||||
Hedge effectiveness is the degree to which the derivative instrument contract and the hedged item are correlated and is measured based on the relative changes in fair value of the derivative instrument contract and the hedged item over time. We assess hedge effectiveness both at inception and on a continuing basis. These assessments exclude the time value of certain options. For accounting hedges that are deemed an effective hedge, the effective portion of the gain or loss on the derivative instrument is reported as a component of OCI and reclassified into earnings in the same period during which the hedged transaction affects earnings. We recognize in current earnings, subject to the PSA, the gains and losses representing hedge ineffectiveness, and the gains and losses on any hedge components which are excluded from our effectiveness assessment. As cash flow hedge accounting has been discontinued for the significant majority of our contracts, after May 31, 2012, effectiveness testing is no longer being performed for these contracts. | |||||||||||||||||
Prior to the 2012 Settlement Agreement, for its regulated operations, APS deferred for future rate treatment approximately 90% of unrealized gains and losses on certain derivatives pursuant to the PSA mechanism that would otherwise be recognized in income. Due to the 2012 Settlement Agreement, for its regulated operations, APS now defers for future rate treatment 100% of the unrealized gains and losses for delivery periods after June 30, 2012 on derivatives pursuant to the PSA mechanism that would otherwise be recognized in income. Realized gains and losses on derivatives are deferred in accordance with the PSA to the extent the amounts are above or below the Base Fuel Rate (see Note 3). Gains and losses from derivatives in the following tables represent the amounts reflected in income before the effect of PSA deferrals. | |||||||||||||||||
As of December 31, 2013, we had the following outstanding gross notional volume of derivatives, which represent both purchases and sales (does not reflect net position): | |||||||||||||||||
Commodity | Quantity | ||||||||||||||||
Power | 5,765 | GWh | |||||||||||||||
Gas | 108 | Bcfs (a) | |||||||||||||||
(a) “Bcf” is Billion Cubic Feet. | |||||||||||||||||
Gains and Losses from Derivative Instruments | |||||||||||||||||
The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging relationships during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
Financial Statement | December 31, | ||||||||||||||||
Commodity Contracts | Location | 2013 | 2012 | 2011 | |||||||||||||
Loss Recognized in OCI on Derivative Instruments (Effective Portion) | OCI — derivative instruments | $ | (353 | ) | $ | (37,663 | ) | $ | (94,660 | ) | |||||||
Loss Reclassified from Accumulated OCI into Income (Effective Portion Realized) (a) | Fuel and purchased power (b) | (44,219 | ) | (99,007 | ) | (117,189 | ) | ||||||||||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Fuel and purchased power (b) | — | 117 | (211 | ) | ||||||||||||
(a) During the years ended December 31, 2013, 2012, and 2011, we had zero, $1.8 million, and zero losses reclassified from accumulated OCI to earnings related to discontinued cash flow hedges. | |||||||||||||||||
(b) Amounts are before the effect of PSA deferrals. | |||||||||||||||||
During the next twelve months, we estimate that a net loss of $21 million before income taxes will be reclassified from accumulated OCI as an offset to the effect of market price changes for the related hedged transactions. In accordance with the PSA, substantially all of these amounts will be recorded as either a regulatory asset or liability and have no immediate effect on earnings. | |||||||||||||||||
The following table provides information about gains and losses from derivative instruments not designated as accounting hedging instruments during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
Financial Statement | December 31, | ||||||||||||||||
Commodity Contracts | Location | 2013 | 2012 | 2011 | |||||||||||||
Net Gain (Loss) Recognized in Income | Operating revenues (a) | $ | 289 | $ | 103 | $ | (27 | ) | |||||||||
Net Loss Recognized in Income | Fuel and purchased power (a) | (10,449 | ) | (2,747 | ) | (52,113 | ) | ||||||||||
Total | $ | (10,160 | ) | $ | (2,644 | ) | $ | (52,140 | ) | ||||||||
(a) Amounts are before the effect of PSA deferrals. | |||||||||||||||||
Derivative Instruments in the Consolidated Balance Sheets | |||||||||||||||||
Our derivative transactions are typically executed under standardized or customized agreements, which include collateral requirements and, in the event of a default, would allow for the netting of positive and negative exposures associated with a single counterparty. Agreements that allow for the offsetting of positive and negative exposures associated with a single counterparty are considered master netting arrangements. Transactions with counterparties that have master netting arrangements are offset and reported net on the Consolidated Balance Sheets. Transactions that do not allow for offsetting of positive and negative positions are reported gross on the Consolidated Balance Sheets. | |||||||||||||||||
We do not offset a counterparty’s current derivative contracts with the counterparty’s non-current derivative contracts, although our master netting arrangements would allow current and non-current positions to be offset in the event of a default. Additionally, in the event of a default, our master netting arrangements would allow for the offsetting of all transactions executed under the master netting arrangement. These types of transactions may include non-derivative instruments, derivatives qualifying for scope exceptions, trade receivables and trade payables arising from settled positions, and other forms of non-cash collateral (such as letters of credit). These types of transactions are excluded from the offsetting tables presented below. | |||||||||||||||||
The significant majority of our derivative instruments are not currently designated as hedging instruments. The Consolidated Balance Sheets as of December 31, 2013 and December 31, 2012, include gross liabilities of $5 million of derivative instruments designated as hedging instruments. | |||||||||||||||||
The following tables provide information about the fair value of our risk management activities reported on a gross basis, and the impacts of offsetting as of December 31, 2013 and 2012. These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of our Consolidated Balance Sheets. | |||||||||||||||||
As of December 31, 2013: | Gross | Amounts | Net | Other | Amount | ||||||||||||
(dollars in thousands) | Recognized | Offset | Recognized | (c) | Reported on | ||||||||||||
Derivatives | (b) | Derivatives | Balance Sheet | ||||||||||||||
(a) | |||||||||||||||||
Current Assets | $ | 24,587 | $ | (7,425 | ) | $ | 17,162 | $ | 7 | $ | 17,169 | ||||||
Investments and Other Assets | 25,364 | (1,549 | ) | 23,815 | — | 23,815 | |||||||||||
Total Assets | 49,951 | (8,974 | ) | 40,977 | 7 | 40,984 | |||||||||||
Current Liabilities | (50,540 | ) | 26,166 | (24,374 | ) | (7,518 | ) | (31,892 | ) | ||||||||
Deferred Credits and Other | (72,123 | ) | 1,808 | (70,315 | ) | — | (70,315 | ) | |||||||||
Total Liabilities | (122,663 | ) | 27,974 | (94,689 | ) | (7,518 | ) | (102,207 | ) | ||||||||
Total | $ | (72,712 | ) | $ | 19,000 | $ | (53,712 | ) | $ | (7,511 | ) | $ | (61,223 | ) | |||
(a) All of our gross recognized derivative instruments were subject to master netting arrangements. | |||||||||||||||||
(b) Includes cash collateral provided to counterparties of $19,000. | |||||||||||||||||
(c) Represents cash collateral and margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $7,518, and cash margin provided to counterparties of $7. | |||||||||||||||||
As of December 31, 2012: | Gross | Amounts | Net | Other | Amount | ||||||||||||
(dollars in thousands) | Recognized | Offset | Recognized | (c) | Reported on | ||||||||||||
Derivatives | (b) | Derivatives | Balance Sheet | ||||||||||||||
(a) | |||||||||||||||||
Current Assets | $ | 42,495 | $ | (17,797 | ) | $ | 24,698 | $ | 1,001 | $ | 25,699 | ||||||
Investments and Other Assets | 41,563 | (5,672 | ) | 35,891 | — | 35,891 | |||||||||||
Total Assets | 84,058 | (23,469 | ) | 60,589 | 1,001 | 61,590 | |||||||||||
Current Liabilities | (105,324 | ) | 57,046 | (48,278 | ) | (25,463 | ) | (73,741 | ) | ||||||||
Deferred Credits and Other | (100,986 | ) | 15,722 | (85,264 | ) | — | (85,264 | ) | |||||||||
Total Liabilities | (206,310 | ) | 72,768 | (133,542 | ) | (25,463 | ) | (159,005 | ) | ||||||||
Total | $ | (122,252 | ) | $ | 49,299 | $ | (72,953 | ) | $ | (24,462 | ) | $ | (97,415 | ) | |||
(a) All of our gross recognized derivative instruments were subject to master netting arrangements. | |||||||||||||||||
(b) Includes cash collateral provided to counterparties of $49,299. | |||||||||||||||||
(c) Represents cash collateral relating to non-derivative instruments or derivatives qualifying for scope exceptions. Includes cash collateral provided to counterparties of $1,001, and cash collateral received from counterparties of $25,463. This amount is not subject to offsetting. | |||||||||||||||||
Credit Risk and Credit Related Contingent Features | |||||||||||||||||
We are exposed to losses in the event of nonperformance or nonpayment by counterparties. We have risk management contracts with many counterparties, including two counterparties for which our exposure represents approximately 92% of Pinnacle West’s $41 million of risk management assets as of December 31, 2013. This exposure relates to long-term traditional wholesale contracts with counterparties that have high credit quality. Our risk management process assesses and monitors the financial exposure of all counterparties. Despite the fact that the great majority of trading counterparties’ debt is rated as investment grade by the credit rating agencies, there is still a possibility that one or more of these companies could default, resulting in a material impact on consolidated earnings for a given period. Counterparties in the portfolio consist principally of financial institutions, major energy companies, municipalities and local distribution companies. We maintain credit policies that we believe minimize overall credit risk to within acceptable limits. Determination of the credit quality of our counterparties is based upon a number of factors, including credit ratings and our evaluation of their financial condition. To manage credit risk, we employ collateral requirements and standardized agreements that allow for the netting of positive and negative exposures associated with a single counterparty. Valuation adjustments are established representing our estimated credit losses on our overall exposure to counterparties. | |||||||||||||||||
Certain of our derivative instrument contracts contain credit-risk-related contingent features including, among other things, investment grade credit rating provisions, credit-related cross-default provisions, and adequate assurance provisions. Adequate assurance provisions allow a counterparty with reasonable grounds for uncertainty to demand additional collateral based on subjective events and/or conditions. For those derivative instruments in a net liability position, with investment grade credit contingencies, the counterparties could demand additional collateral if our debt credit rating were to fall below investment grade (below BBB- for Standard & Poor’s or Fitch or Baa3 for Moody’s). | |||||||||||||||||
The following table provides information about our derivative instruments that have credit-risk-related contingent features at December 31, 2013 (dollars in millions): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Aggregate Fair Value of Derivative Instruments in a Net Liability Position | $ | 123 | |||||||||||||||
Cash Collateral Posted | 19 | ||||||||||||||||
Additional Cash Collateral in the Event Credit-Risk Related Contingent Features were Fully Triggered (a) | 66 | ||||||||||||||||
(a) This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above. | |||||||||||||||||
We also have energy related non-derivative instrument contracts with investment grade credit-related contingent features which could also require us to post additional collateral of approximately $180 million if our debt credit ratings were to fall below investment grade. | |||||||||||||||||
Other_Income_and_Other_Expense
Other Income and Other Expense | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Other Income and Other Expense | ' | ||||||||||
Other Income and Other Expense | ' | ||||||||||
18. Other Income and Other Expense | |||||||||||
The following table provides detail of other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,629 | $ | 1,239 | $ | 1,850 | |||||
Investment gains — net | — | — | 1,165 | ||||||||
Miscellaneous | 75 | 367 | 96 | ||||||||
Total other income | $ | 1,704 | $ | 1,606 | $ | 3,111 | |||||
Other expense: | |||||||||||
Non-operating costs | $ | (8,207 | ) | $ | (7,777 | ) | $ | (7,037 | ) | ||
Investment loss — net | (3,711 | ) | (2,453 | ) | — | ||||||
Miscellaneous | (4,106 | ) | (9,612 | ) | (3,414 | ) | |||||
Total other expense | $ | (16,024 | ) | $ | (19,842 | ) | $ | (10,451 | ) | ||
Palo_Verde_Sale_Leaseback_Vari
Palo Verde Sale Leaseback Variable Interest Entities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Palo Verde Sale Leaseback Variable Interest Entities | ' | |||||||
Palo Verde Sale Leaseback Variable Interest Entities | ' | |||||||
19. Palo Verde Sale Leaseback Variable Interest Entities | ||||||||
In 1986, APS entered into agreements with three separate VIE lessor trusts in order to sell and lease back interests in Palo Verde Unit 2 and related common facilities. APS will pay approximately $49 million per year during 2014 and 2015 related to these leases. The lease agreements include fixed rate renewal periods which give APS the ability to utilize the asset for a significant portion of the asset’s economic life, and therefore provide APS with the power to direct activities of the VIEs that most significantly impact the VIEs’ economic performance. Predominately due to the fixed rate renewal periods, APS has been deemed the primary beneficiary of these VIEs and therefore consolidates the VIEs. | ||||||||
On December 31, 2012, APS notified the lessor trust entities that APS will retain the assets beyond 2015 by either exercising the fixed rate lease renewals or by purchasing the assets. If APS elects to purchase the assets, the purchase price will be based on the fair market value of the assets at the end of 2015. If APS elects to extend the leases, we will be required to make payments beginning in 2016 of approximately $23 million annually. The length of the lease extensions is unknown at this time, as it must be determined through an appraisal process. APS must give notice to the lessor trusts by June 30, 2014 notifying them which of these two options (lease renewal or purchasing the assets) it will exercise. The December 31, 2012 notification does not impact APS’s consolidation of the VIEs, as APS continues to be deemed the primary beneficiary of the VIEs. | ||||||||
As a result of consolidation, we eliminate rent expense and recognize depreciation and interest expense, resulting in an increase in net income for 2013, 2012 and 2011 of $34 million, $32 million and $28 million, respectively, entirely attributable to the noncontrolling interests. Income attributable to Pinnacle West shareholders remains the same. Consolidation of these VIEs also results in changes to our Consolidated Statements of Cash Flows, but does not impact net cash flows. | ||||||||
Our Consolidated Balance Sheets at December 31, 2013 and December 31, 2012 include the following amounts relating to the VIEs (in millions): | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Palo Verde sale leaseback property plant and equipment, net of accumulated depreciation | $ | 125 | $ | 129 | ||||
Current maturities of long-term debt | 26 | 27 | ||||||
Long-term debt excluding current maturities | 13 | 39 | ||||||
Equity-Noncontrolling interests | 146 | 129 | ||||||
Assets of the VIEs are restricted and may only be used to settle the VIEs’ debt obligations and for payment to the noncontrolling interest holders. Other than the VIEs’ assets reported on our consolidated financial statements, the creditors of the VIEs have no other recourse to the assets of APS or Pinnacle West, except in certain circumstances, such as a default by APS under the lease. | ||||||||
APS is exposed to losses relating to these VIEs upon the occurrence of certain events that APS does not consider reasonably likely to occur. Under certain circumstances (for example, the NRC issuing specified violation orders with respect to Palo Verde or the occurrence of specified nuclear events), APS would be required to make specified payments to the VIEs’ noncontrolling equity participants, assume the VIEs’ debt, and take title to the leased Palo Verde Unit 2 interests which, if appropriate, may be required to be written down in value. If such an event had occurred as of December 31, 2013, APS would have been required to pay the noncontrolling equity participants approximately $133 million and assume $39 million of debt. Since APS consolidates these VIEs, the debt APS would be required to assume is already reflected in our Consolidated Balance Sheets. | ||||||||
For regulatory ratemaking purposes, the leases continue to be treated as operating leases and, as a result, we have recorded a regulatory asset relating to the arrangements. | ||||||||
Nuclear_Decommissioning_Trusts
Nuclear Decommissioning Trusts | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Nuclear Decommissioning Trusts | ' | ||||||||||
Nuclear Decommissioning Trusts | ' | ||||||||||
20. Nuclear Decommissioning Trusts | |||||||||||
To fund the costs APS expects to incur to decommission Palo Verde, APS established external decommissioning trusts in accordance with NRC regulations. Third-party investment managers are authorized to buy and sell securities per stated investment guidelines. The trust funds are invested in fixed income securities and equity securities. APS classifies investments in decommissioning trust funds as available for sale. As a result, we record the decommissioning trust funds at their fair value on our Consolidated Balance Sheets. See Note 14 for a discussion of how fair value is determined and the classification of the nuclear decommissioning trust investments within the fair value hierarchy. Because of the ability of APS to recover decommissioning costs in rates and in accordance with the regulatory treatment for decommissioning trust funds, we have deferred realized and unrealized gains and losses (including other-than-temporary impairments on investment securities) in other regulatory liabilities. The following table includes the unrealized gains and losses based on the original cost of the investment and summarizes the fair value of APS’s nuclear decommissioning trust fund assets at December 31, 2013 and December 31, 2012 (dollars in millions): | |||||||||||
Fair Value | Total | Total | |||||||||
Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||
December 31, 2013 | |||||||||||
Equity securities | $ | 272 | $ | 129 | $ | — | |||||
Fixed income securities | 373 | 11 | (6 | ) | |||||||
Net payables (a) | (3 | ) | — | — | |||||||
Total | $ | 642 | $ | 140 | $ | (6 | ) | ||||
Fair Value | Total | Total | |||||||||
Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||
December 31, 2012 | |||||||||||
Equity securities | $ | 204 | $ | 67 | $ | — | |||||
Fixed income securities | 371 | 24 | — | ||||||||
Net payables (a) | (4 | ) | — | — | |||||||
Total | $ | 571 | $ | 91 | $ | — | |||||
(a) Net payables relate to pending purchases and sales of securities. | |||||||||||
The costs of securities sold are determined on the basis of specific identification. The following table sets forth approximate gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds (dollars in millions): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Realized gains | $ | 6 | $ | 7 | $ | 8 | |||||
Realized losses | (7 | ) | (4 | ) | (5 | ) | |||||
Proceeds from the sale of securities (a) | 446 | 418 | 498 | ||||||||
(a) Proceeds are reinvested in the trust. | |||||||||||
The fair value of fixed income securities, summarized by contractual maturities, at December 31, 2013 is as follows (dollars in millions): | |||||||||||
Fair Value | |||||||||||
Less than one year | $ | 9 | |||||||||
1 year – 5 years | 109 | ||||||||||
5 years – 10 years | 108 | ||||||||||
Greater than 10 years | 147 | ||||||||||
Total | $ | 373 | |||||||||
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||
21. Changes in Accumulated Other Comprehensive Loss | |||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (64,416 | ) | $ | (114,008 | ) | ||
OCI (loss) before reclassifications | (213 | ) | 5,594 | 5,381 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,827 | (b) | 30,574 | ||||||
Net current period OCI | 26,534 | 9,421 | 35,955 | ||||||||
Ending balance | $ | (23,058 | ) | $ | (54,995 | ) | $ | (78,053 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
SCHEDULE_I_CONDENSED_FINANCIAL
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | ||||||||||
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ' | ||||||||||
PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY | |||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||
(in thousands) | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Operating revenues | $ | 799 | $ | 6,133 | $ | 1,034 | |||||
Operating expenses | 24,930 | 12,125 | 8,811 | ||||||||
Operating loss | (24,131 | ) | (5,992 | ) | (7,777 | ) | |||||
Other | |||||||||||
Equity in earnings of subsidiaries | 420,926 | 391,528 | 335,859 | ||||||||
Other expense | (1,999 | ) | (2,001 | ) | (1,481 | ) | |||||
Total | 418,927 | 389,527 | 334,378 | ||||||||
Interest expense | 3,226 | 4,868 | 8,053 | ||||||||
Income from continuing operations | 391,570 | 378,667 | 318,548 | ||||||||
Income tax benefit | (14,504 | ) | (7,079 | ) | (8,938 | ) | |||||
Income from continuing operations — net of income taxes | 406,074 | 385,746 | 327,486 | ||||||||
Income (loss) from discontinued operations — net of income taxes | — | (4,204 | ) | 11,987 | |||||||
Net income attributable to common shareholders | 406,074 | 381,542 | 339,473 | ||||||||
Other comprehensive income — attributable to common shareholders | 35,955 | 38,155 | 7,605 | ||||||||
Total comprehensive income — attributable to common shareholders | $ | 442,029 | $ | 419,697 | $ | 347,078 | |||||
See Notes to Pinnacle West’s Consolidated Financial Statements. | |||||||||||
PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY | |||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||
CONDENSED BALANCE SHEETS | |||||||||||
(in thousands) | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
ASSETS | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | 5,798 | $ | 22,679 | |||||||
Accounts receivable | 80,108 | 92,906 | |||||||||
Current deferred income taxes | 93,185 | 77,771 | |||||||||
Income tax receivable | 1,853 | 3,350 | |||||||||
Other current assets | 242 | 25 | |||||||||
Total current assets | 181,186 | 196,731 | |||||||||
Investments and other assets | |||||||||||
Investments in subsidiaries | 4,455,049 | 4,223,301 | |||||||||
Other assets | 13,789 | 13,833 | |||||||||
Total investments and other assets | 4,468,838 | 4,237,134 | |||||||||
Total Assets | $ | 4,650,024 | $ | 4,433,865 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current liabilities | |||||||||||
Accounts payable | $ | 3,279 | $ | 5,735 | |||||||
Accrued taxes | 8,538 | 8,239 | |||||||||
Common dividends payable | 62,528 | 59,789 | |||||||||
Other current liabilities | 31,295 | 41,000 | |||||||||
Total current liabilities | 105,640 | 114,763 | |||||||||
Long-term debt less current maturities | 125,000 | 125,000 | |||||||||
Deferred credits and other | |||||||||||
Deferred income taxes | 4,158 | 17,395 | |||||||||
Pension and other postretirement liabilities | 37,611 | 41,199 | |||||||||
Other | 37,155 | 33,219 | |||||||||
Total deferred credits and other | 78,924 | 91,813 | |||||||||
Common stock equity | |||||||||||
Common stock | 2,487,250 | 2,462,712 | |||||||||
Accumulated other comprehensive loss | (78,053 | ) | (114,008 | ) | |||||||
Retained earnings | 1,785,273 | 1,624,102 | |||||||||
Total Pinnacle West Shareholders’ equity | 4,194,470 | 3,972,806 | |||||||||
Noncontrolling interests | 145,990 | 129,483 | |||||||||
Total Equity | 4,340,460 | 4,102,289 | |||||||||
Total Liabilities and Equity | $ | 4,650,024 | $ | 4,433,865 | |||||||
See Notes to Pinnacle West’s Consolidated Financial Statements. | |||||||||||
PINNACLE WEST CAPITAL CORPORATION HOLDING COMPANY | |||||||||||
SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||
(in thousands) | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash flows from operating activities | |||||||||||
Net income | $ | 406,074 | $ | 381,542 | $ | 339,473 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in earnings of subsidiaries — net | (420,926 | ) | (391,528 | ) | (335,859 | ) | |||||
Depreciation and amortization | 95 | 94 | 97 | ||||||||
Gain on sale of energy-related business | — | — | (10,404 | ) | |||||||
Deferred income taxes | (28,806 | ) | (15,135 | ) | 7,387 | ||||||
Accounts receivable | 21,671 | 28,763 | (24,201 | ) | |||||||
Accounts payable | (2,449 | ) | 879 | (2,677 | ) | ||||||
Accrued taxes and income tax receivables — net | 1,402 | (3,103 | ) | 7,512 | |||||||
Dividends received from subsidiaries | 242,100 | 222,200 | 228,900 | ||||||||
Other | (15,065 | ) | (4,589 | ) | 19,270 | ||||||
Net cash flow provided by operating activities | 204,096 | 219,123 | 229,498 | ||||||||
Cash flows from investing activities | |||||||||||
Investments in subsidiaries | (3,400 | ) | — | — | |||||||
Repayments of loans from subsidiaries | 2,149 | 996 | 61,143 | ||||||||
Proceeds from sale of energy-related products and services business | — | — | 45,111 | ||||||||
Advances of loans to subsidiaries | (2,099 | ) | (1,200 | ) | (64,970 | ) | |||||
Proceeds from sale of life insurance policies | — | — | 9,357 | ||||||||
Net cash flow provided by (used for) investing activities | (3,350 | ) | (204 | ) | 50,641 | ||||||
Cash flows from financing activities | |||||||||||
Issuance of long-term debt | — | 125,000 | 175,000 | ||||||||
Short-term borrowings and payments — net | — | — | (16,600 | ) | |||||||
Dividends paid on common stock | (235,244 | ) | (225,075 | ) | (221,728 | ) | |||||
Repayment of long-term debt | — | (125,000 | ) | (225,000 | ) | ||||||
Common stock equity issuance | 17,319 | 15,955 | 15,841 | ||||||||
Other | 298 | 170 | (2,667 | ) | |||||||
Net cash flow used for financing activities | (217,627 | ) | (208,950 | ) | (275,154 | ) | |||||
Net increase (decrease) in cash and cash equivalents | (16,881 | ) | 9,969 | 4,985 | |||||||
Cash and cash equivalents at beginning of year | 22,679 | 12,710 | 7,725 | ||||||||
Cash and cash equivalents at end of year | $ | 5,798 | $ | 22,679 | $ | 12,710 | |||||
See Notes to Pinnacle West’s Consolidated Financial Statements. | |||||||||||
SCHEDULE_II_RESERVE_FOR_UNCOLL
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES | ' | ||||||||||||||||
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES | ' | ||||||||||||||||
PINNACLE WEST CAPITAL CORPORATION | |||||||||||||||||
SCHEDULE II — RESERVE FOR UNCOLLECTIBLES | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Additions | |||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | ||||||||||||
beginning | cost and | to other | at end of | ||||||||||||||
of period | expenses | accounts | period | ||||||||||||||
Reserve for uncollectibles: | |||||||||||||||||
2013 | $ | 3,340 | $ | 4,923 | $ | — | $ | 5,060 | $ | 3,203 | |||||||
2012 | 3,748 | 5,290 | — | 5,698 | 3,340 | ||||||||||||
2011 | 4,709 | 5,672 | — | 6,633 | 3,748 | ||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Description of Business and Basis of Presentation | ' | ||||||||||
Description of Business and Basis of Presentation | |||||||||||
Pinnacle West is a holding company that conducts business through its subsidiaries, APS and El Dorado, and formerly SunCor and APSES. APS, our wholly-owned subsidiary, is a vertically-integrated electric utility that provides either retail or wholesale electric service to substantially all of 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. APS accounts for essentially all of our revenues and earnings, and is expected to continue to do so. SunCor was a developer of residential, commercial and industrial real estate projects and essentially all of these assets were sold in 2009 and 2010. In February 2012, SunCor filed for protection under the United States Bankruptcy Code to complete an orderly liquidation of its business. All activities for SunCor are reported as discontinued operations. APSES provided energy-related projects to commercial and industrial retail customers in competitive markets in the western United States. APSES was sold in 2011 and is reported as discontinued operations. El Dorado is an investment firm. | |||||||||||
Pinnacle West’s Consolidated Financial Statements include the accounts of Pinnacle West and our subsidiaries: APS and El Dorado, and formerly SunCor and APSES. APS’s consolidated financial statements include the accounts of APS and certain VIEs relating to the Palo Verde sale leaseback. Intercompany accounts and transactions between the consolidated companies have been eliminated. | |||||||||||
We consolidate VIEs for which we are the primary beneficiary. We determine whether we are the primary beneficiary of a VIE through a qualitative analysis that identifies which variable interest holder has the controlling financial interest in the VIE. In performing our primary beneficiary analysis, we consider all relevant facts and circumstances, including the design and activities of the VIE, the terms of the contracts the VIE has entered into, and which parties participated significantly in the design or redesign of the entity. We continually evaluate our primary beneficiary conclusions to determine if changes have occurred which would impact our primary beneficiary assessments. We have determined that APS is the primary beneficiary of certain VIE lessor trusts relating to the Palo Verde sale leaseback, and therefore APS consolidates these entities (see Note 19). | |||||||||||
Our consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise disclosed in the notes) that we believe are necessary for the fair presentation of our financial position, results of operations and cash flows for the periods presented. | |||||||||||
Certain line items are presented in more detail on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows than was presented in the prior years. Other line items are more condensed than the previous presentation. The prior year amounts were reclassified to conform to the current year presentation. These reclassifications had no impact on total assets or net cash flow provided by operating activities. The following tables show the impacts of the reclassifications of prior years (previously reported) amounts (dollars in thousands): | |||||||||||
Balance Sheets - December 31, 2012 | As | Reclassifications to | Amount reported | ||||||||
previously | conform to current year | after reclassification | |||||||||
reported | presentation | to conform to current | |||||||||
year presentation | |||||||||||
Long-Term Debt less Current Maturities — | |||||||||||
Long-term debt less current maturities | $ | 3,160,219 | $ | 38,869 | $ | 3,199,088 | |||||
Long-Term Debt less Current Maturities — | |||||||||||
Palo Verde sale leaseback lessor notes less | |||||||||||
current maturities | 38,869 | (38,869 | ) | — | |||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2012 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current | ||||||||||
year presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 228,602 | $ | (41,579 | ) | $ | 187,023 | ||||
Deferred investment tax credit | — | 41,579 | 41,579 | ||||||||
Accrued taxes and income tax receivable | 8,693 | (8,693 | ) | — | |||||||
Income tax receivable | — | (4,043 | ) | (4,043 | ) | ||||||
Accrued taxes | — | 12,736 | 12,736 | ||||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2011 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current year | ||||||||||
presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 176,192 | $ | (58,240 | ) | $ | 117,952 | ||||
Deferred investment tax credit | — | 58,240 | 58,240 | ||||||||
Accrued taxes and income tax receivable | 12,068 | (12,068 | ) | — | |||||||
Income tax receivable | — | 3,983 | 3,983 | ||||||||
Accrued taxes | — | 8,085 | 8,085 | ||||||||
Accounting Records and Use of Estimates | ' | ||||||||||
Accounting Records and Use of Estimates | |||||||||||
Our accounting records are maintained in accordance with GAAP. The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||||
Regulatory Accounting | ' | ||||||||||
Regulatory Accounting | |||||||||||
APS is regulated by the ACC and FERC. The accompanying financial statements reflect the rate-making policies of these commissions. As a result, we capitalize certain costs that would be included as expense in the current period by unregulated companies. Regulatory assets represent incurred costs that have been deferred because they are probable of future recovery in customer rates. Regulatory liabilities generally represent expected future costs that have already been collected from customers. | |||||||||||
Management continually assesses whether our regulatory assets are probable of future recovery by considering factors such as changes in the applicable regulatory environment and recent rate orders applicable to APS or other regulated entities in the same jurisdiction. This determination reflects the current political and regulatory climate in Arizona and is subject to change in the future. If future recovery of costs ceases to be probable, the assets would be written off as a charge in current period earnings. | |||||||||||
See Note 3 for additional information. | |||||||||||
Electric Revenues | ' | ||||||||||
Electric Revenues | |||||||||||
We derive electric revenues primarily from sales of electricity to our regulated Native Load customers. Revenues related to the sale of electricity are generally recorded when service is rendered or electricity is delivered to customers. The billing of electricity sales to individual Native Load customers is based on the reading of their meters, which occurs on a systematic basis throughout the month. Unbilled revenues are estimated by applying an average revenue/kWh by customer class to the number of estimated kWhs delivered but not billed. Differences historically between the actual and estimated unbilled revenues are immaterial. We exclude sales taxes and franchise fees on electric revenues from both revenue and taxes other than income taxes. | |||||||||||
Revenues from our Native Load customers and non-derivative instruments are reported on a gross basis on Pinnacle West’s Consolidated Statements of Income. In the electricity business, some contracts to purchase energy are netted against other contracts to sell energy. This is called a “book-out” and usually occurs for contracts that have the same terms (quantities and delivery points) and for which power does not flow. We net these book-outs, which reduces both revenues and fuel and purchased power costs. | |||||||||||
For the period January 1, 2010 through June 30, 2012, electric revenues also include proceeds for line extension payments for new or upgraded service in accordance with the 2009 Settlement Agreement (see Note 3). Effective July 1, 2012, as a result of the 2012 Settlement Agreement, these amounts are now recorded as contributions in aid of construction and are not included in electric revenues. | |||||||||||
Some of our cost recovery mechanisms are alternative revenue programs. For alternative revenue programs that meet specified accounting criteria, we recognize revenues when the specific events permitting billing of the additional revenues have been completed. | |||||||||||
Allowance for Doubtful Accounts | ' | ||||||||||
Allowance for Doubtful Accounts | |||||||||||
The allowance for doubtful accounts represents our best estimate of existing accounts receivable that will ultimately be uncollectible. The allowance is calculated by applying estimated write-off factors to various classes of outstanding receivables, including accrued utility revenues. The write-off factors used to estimate uncollectible accounts are based upon consideration of both historical collections experience and management’s best estimate of future collections success given the existing collections environment. | |||||||||||
Property, Plant and Equipment | ' | ||||||||||
Property, Plant and Equipment | |||||||||||
Utility plant is the term we use to describe the business property and equipment that supports electric service, consisting primarily of generation, transmission and distribution facilities. We report utility plant at its original cost, which includes: | |||||||||||
· material and labor; | |||||||||||
· contractor costs; | |||||||||||
· capitalized leases; | |||||||||||
· construction overhead costs (where applicable); and | |||||||||||
· allowance for funds used during construction. | |||||||||||
We expense the costs of plant outages, major maintenance and routine maintenance as incurred. We charge retired utility plant to accumulated depreciation. Liabilities associated with the retirement of tangible long-lived assets are recognized at fair value as incurred and capitalized as part of the related tangible long-lived assets. Accretion of the liability due to the passage of time is an operating expense, and the capitalized cost is depreciated over the useful life of the long-lived asset. See Note 12. | |||||||||||
APS records a regulatory liability on its regulated assets for the difference between the amount that has been recovered in regulated rates and the amount calculated in accordance with guidance on accounting for asset retirement obligations. APS believes it can recover in regulated rates the costs calculated in accordance with this accounting guidance. | |||||||||||
We record depreciation on utility plant on a straight-line basis over the remaining useful life of the related assets. The approximate remaining average useful lives of our utility property at December 31, 2013 were as follows: | |||||||||||
· Fossil plant — 18 years; | |||||||||||
· Nuclear plant — 26 years; | |||||||||||
· Other generation — 26 years; | |||||||||||
· Transmission — 37 years; | |||||||||||
· Distribution — 34 years; and | |||||||||||
· Other — 7 years. | |||||||||||
APS applied for twenty-year extensions of its operating licenses for each of the three Palo Verde units in December 2008. On April 21, 2011, the NRC approved the extensions of the Palo Verde licenses. The nuclear plant remaining life takes into consideration an ACC decision which authorizes the use of the new Palo Verde nuclear plant lives, effective January 1, 2012. | |||||||||||
Pursuant to an ACC order, we defer operating costs related to APS’s acquisition of additional interests in Units 4 and 5 and the related closure of Units 1-3 of Four Corners. See Note 3 for further discussion. These costs are deferred on the depreciation line of the Consolidated Statements of Income. | |||||||||||
For the years 2011 through 2013, the depreciation rates ranged from a low of 0.45% to a high of 12.08%. The weighted-average rate was 3.00% for 2013, 2.71% for 2012, and 2.98% for 2011. | |||||||||||
Allowance for Funds Used During Construction | ' | ||||||||||
Allowance for Funds Used During Construction | |||||||||||
AFUDC represents the approximate net composite interest cost of borrowed funds and an allowed return on the equity funds used for construction of regulated utility plant. Both the debt and equity components of AFUDC are non-cash amounts within the Consolidated Statement of Income. Plant construction costs, including AFUDC, are recovered in authorized rates through depreciation when completed projects are placed into commercial operation. | |||||||||||
AFUDC was calculated by using a composite rate of 8.56% for 2013, 8.60% for 2012, and 10.25% for 2011. APS compounds AFUDC semi-annually and ceases to accrue AFUDC when construction work is completed and the property is placed in service. | |||||||||||
Materials and Supplies | ' | ||||||||||
Materials and Supplies | |||||||||||
APS values materials, supplies and fossil fuel inventory using a weighted-average cost method. APS materials, supplies and fossil fuel inventories are carried at the lower of weighted-average cost or market, unless evidence indicates that the weighted-average cost (even if in excess of market) will be recovered. | |||||||||||
Fair Value Measurements | ' | ||||||||||
Fair Value Measurements | |||||||||||
We account for derivative instruments, investments held in our nuclear decommissioning trust, certain cash equivalents and plan assets held in our retirement and other benefit plans at fair value on a recurring basis. Due to the short-term nature of net accounts receivable, accounts payable, and short-term borrowings, the carrying values of these instruments approximate fair value. Fair value measurements may also be applied on a nonrecurring basis to other assets and liabilities in certain circumstances such as impairments. We also disclose fair value information for our long-term debt, which is carried at amortized cost (see Note 6). | |||||||||||
Fair value is the price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market which we can access for the asset or liability in an orderly transaction between willing market participants on the measurement date. Inputs to fair value may include observable and unobservable data. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. | |||||||||||
We determine fair market value using observable inputs such as actively-quoted prices for identical instruments when available. When actively quoted prices are not available for the identical instruments, we use other observable inputs, such as prices for similar instruments, other corroborative market information, or prices provided by other external sources. For options, long-term contracts and other contracts for which observable price data are not available, we use models and other valuation methods, which may incorporate unobservable inputs to determine fair market value. | |||||||||||
The use of models and other valuation methods to determine fair market value often requires subjective and complex judgment. Actual results could differ from the results estimated through application of these methods. | |||||||||||
See Note 14 for additional information about fair value measurements. | |||||||||||
Derivative Accounting | ' | ||||||||||
Derivative Accounting | |||||||||||
We are exposed to the impact of market fluctuations in the commodity price and transportation costs of electricity, natural gas, coal, emission allowances and in interest rates. We manage risks associated with market volatility by utilizing various physical and financial instruments including futures, forwards, options and swaps. As part of our overall risk management program, we may use derivative instruments to hedge purchases and sales of electricity and fuels. The changes in market value of such contracts have a high correlation to price changes in the hedged transactions. We also enter into derivative instruments for economic hedging purposes. Contracts that have the same terms (quantities, delivery points and delivery periods) and for which power does not flow are netted, which reduces both revenues and fuel and purchased power expenses in our Consolidated Statements of Income, but does not impact our financial condition, net income or cash flows. | |||||||||||
We account for our derivative contracts in accordance with derivatives and hedging guidance, which requires all derivatives not qualifying for a scope exception to be measured at fair value on the balance sheet as either assets or liabilities. Transactions with counterparties that have master netting arrangements are reported net on the balance sheet. See Note 17 for additional information about our derivative instruments. | |||||||||||
Loss Contingencies and Environmental Liabilities | ' | ||||||||||
Loss Contingencies and Environmental Liabilities | |||||||||||
Pinnacle West and APS are involved in certain legal and environmental matters that arise in the normal course of business. Contingent losses and environmental liabilities are recorded when it is determined that it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. When a range of the probable loss exists and no amount within the range is a better estimate than any other amount, Pinnacle West and APS record a loss contingency at the minimum amount in the range. Unless otherwise required by GAAP, legal fees are expensed as incurred. | |||||||||||
Retirement Plans and Other Benefits | ' | ||||||||||
Retirement Plans and Other Benefits | |||||||||||
Pinnacle West sponsors a qualified defined benefit and account balance pension plan for the employees of Pinnacle West and its subsidiaries. We also sponsor an other postretirement benefit plan for the employees of Pinnacle West and our subsidiaries that provides medical and life insurance benefits to retired employees. Pension and other postretirement benefit expense are determined by actuarial valuations, based on assumptions that are evaluated annually. See Note 8 for additional information on pension and other postretirement benefits. | |||||||||||
Nuclear Fuel | ' | ||||||||||
Nuclear Fuel | |||||||||||
APS amortizes nuclear fuel by using the unit-of-production method. The unit-of-production method is based on actual physical usage. APS divides the cost of the fuel by the estimated number of thermal units it expects to produce with that fuel. APS then multiplies that rate by the number of thermal units produced within the current period. This calculation determines the current period nuclear fuel expense. | |||||||||||
APS also charges nuclear fuel expense for the interim storage and permanent disposal of spent nuclear fuel. The DOE is responsible for the permanent disposal of spent nuclear fuel and charges APS $0.001 per kWh of nuclear generation. See Note 11 for information on spent nuclear fuel disposal costs. | |||||||||||
Income Taxes | ' | ||||||||||
Income Taxes | |||||||||||
Income taxes are provided using the asset and liability approach prescribed by guidance relating to accounting for income taxes. We file our federal income tax return on a consolidated basis, and we file our state income tax returns on a consolidated or unitary basis. In accordance with our intercompany tax sharing agreement, federal and state income taxes are allocated to each first-tier subsidiary as though each first-tier subsidiary filed a separate income tax return. Any difference between that method and the consolidated (and unitary) income tax liability is attributed to the parent company. The income tax accounts reflect the tax and interest associated with management’s estimate of the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement for all known and measurable tax exposures (see Note 4). | |||||||||||
Cash and Cash Equivalents | ' | ||||||||||
Cash and Cash Equivalents | |||||||||||
We consider all highly liquid investments with a remaining maturity of three months or less at acquisition to be cash equivalents. | |||||||||||
The following table summarizes supplemental Pinnacle West cash flow information for each of the last three years (dollars in thousands): | |||||||||||
Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash paid during the period for: | |||||||||||
Income taxes, net of refunds | $ | 18,537 | $ | 2,543 | $ | 10,324 | |||||
Interest, net of amounts capitalized | 184,010 | 200,923 | 217,789 | ||||||||
Significant non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | 33,184 | $ | 26,208 | $ | 27,245 | |||||
Dividends declared but not paid | 62,528 | 59,789 | — | ||||||||
Liabilities assumed relating to acquisition of SCE Four Corners’ interest (see Note 3) | 145,609 | — | — | ||||||||
Intangible Assets | ' | ||||||||||
Intangible Assets | |||||||||||
We have no goodwill recorded and have separately disclosed other intangible assets, primarily APS’s software, on Pinnacle West’s Consolidated Balance Sheets. The intangible assets are amortized over their finite useful lives. Amortization expense was $53 million in 2013, $50 million in 2012, and $47 million in 2011. Estimated amortization expense on existing intangible assets over the next five years is $47 million in 2014, $38 million in 2015, $29 million in 2016, $19 million in 2017, and $7 million in 2018. At December 31, 2013, the weighted-average remaining amortization period for intangible assets was 6 years. | |||||||||||
Investments | ' | ||||||||||
Investments | |||||||||||
El Dorado accounts for its investments using either the equity method (if significant influence) or the cost method (if less than 20% ownership). | |||||||||||
Our investments in the nuclear decommissioning trust fund are accounted for in accordance with guidance on accounting for certain investments in debt and equity securities. See Note 14 and Note 20 for more information on these investments. | |||||||||||
Business Segments | ' | ||||||||||
Business Segments | |||||||||||
Pinnacle West’s reportable business segment is our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electricity service to Native Load customers) and related activities and includes electricity generation, transmission and distribution. All other segment activities are insignificant. | |||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Summary of Significant Accounting Policies | ' | ||||||||||
Schedule of impacts of the reclassifications of prior years (previously reported) | ' | ||||||||||
The following tables show the impacts of the reclassifications of prior years (previously reported) amounts (dollars in thousands): | |||||||||||
Balance Sheets - December 31, 2012 | As | Reclassifications to | Amount reported | ||||||||
previously | conform to current year | after reclassification | |||||||||
reported | presentation | to conform to current | |||||||||
year presentation | |||||||||||
Long-Term Debt less Current Maturities — | |||||||||||
Long-term debt less current maturities | $ | 3,160,219 | $ | 38,869 | $ | 3,199,088 | |||||
Long-Term Debt less Current Maturities — | |||||||||||
Palo Verde sale leaseback lessor notes less | |||||||||||
current maturities | 38,869 | (38,869 | ) | — | |||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2012 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current | ||||||||||
year presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 228,602 | $ | (41,579 | ) | $ | 187,023 | ||||
Deferred investment tax credit | — | 41,579 | 41,579 | ||||||||
Accrued taxes and income tax receivable | 8,693 | (8,693 | ) | — | |||||||
Income tax receivable | — | (4,043 | ) | (4,043 | ) | ||||||
Accrued taxes | — | 12,736 | 12,736 | ||||||||
Statement of Cash Flows for the | As previously | Reclassifications to | Amount reported after | ||||||||
Year Ended December 31, 2011 | reported | conform to current year | reclassification to | ||||||||
presentation | conform to current year | ||||||||||
presentation | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Deferred income taxes | $ | 176,192 | $ | (58,240 | ) | $ | 117,952 | ||||
Deferred investment tax credit | — | 58,240 | 58,240 | ||||||||
Accrued taxes and income tax receivable | 12,068 | (12,068 | ) | — | |||||||
Income tax receivable | — | 3,983 | 3,983 | ||||||||
Accrued taxes | — | 8,085 | 8,085 | ||||||||
Summary of supplemental cash flow information | ' | ||||||||||
The following table summarizes supplemental Pinnacle West cash flow information for each of the last three years (dollars in thousands): | |||||||||||
Years ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Cash paid during the period for: | |||||||||||
Income taxes, net of refunds | $ | 18,537 | $ | 2,543 | $ | 10,324 | |||||
Interest, net of amounts capitalized | 184,010 | 200,923 | 217,789 | ||||||||
Significant non-cash investing and financing activities: | |||||||||||
Accrued capital expenditures | $ | 33,184 | $ | 26,208 | $ | 27,245 | |||||
Dividends declared but not paid | 62,528 | 59,789 | — | ||||||||
Liabilities assumed relating to acquisition of SCE Four Corners’ interest (see Note 3) | 145,609 | — | — | ||||||||
Regulatory_Matters_Tables
Regulatory Matters (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Regulatory Matters | ' | |||||||||||||||
Schedule of changes in the deferred fuel and purchased power regulatory asset | ' | |||||||||||||||
The following table shows the changes in the deferred fuel and purchased power regulatory asset for 2013 and 2012 (dollars in millions): | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Beginning balance | $ | 73 | $ | 28 | ||||||||||||
Deferred fuel and purchased power costs - current period | (21 | ) | (72 | ) | ||||||||||||
Amounts (charged) credited to customers | (31 | ) | 117 | |||||||||||||
Ending balance | $ | 21 | $ | 73 | ||||||||||||
Schedule of regulatory assets | ' | |||||||||||||||
The detail of regulatory assets is as follows (dollars in millions): | ||||||||||||||||
Remaining | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization | ||||||||||||||||
Period | Current | Non-Current | Current | Non-Current | ||||||||||||
Pension and other postretirement benefits | (a | ) | $ | — | $ | 314 | $ | — | $ | 780 | ||||||
Income taxes — AFUDC equity | 2043 | 4 | 105 | 4 | 92 | |||||||||||
Deferred fuel and purchased power — mark-to-market (Note 17) | 2016 | 5 | 29 | 19 | 21 | |||||||||||
Transmission vegetation management | 2016 | 9 | 14 | 9 | 23 | |||||||||||
Coal reclamation | 2038 | 8 | 18 | 8 | 24 | |||||||||||
Palo Verde VIEs (Note 19) | 2046 | — | 41 | — | 38 | |||||||||||
Deferred compensation | 2036 | — | 34 | — | 34 | |||||||||||
Deferred fuel and purchased power (b) (c) | 2014 | 21 | — | 73 | — | |||||||||||
Tax expense of Medicare subsidy | 2023 | 2 | 15 | 2 | 17 | |||||||||||
Loss on reacquired debt | 2034 | 1 | 17 | 2 | 18 | |||||||||||
Income taxes — investment tax credit basis adjustment | 2043 | 1 | 39 | 1 | 26 | |||||||||||
Pension and other postretirement benefits deferral | 2015 | 8 | 4 | 8 | 13 | |||||||||||
Four Corners cost deferral | 2024 | — | 37 | — | — | |||||||||||
Lost fixed cost recovery | 2014 | 25 | — | 7 | — | |||||||||||
Transmission cost adjustor | 2015 | 8 | 2 | 10 | — | |||||||||||
Retired power plant costs | 2020 | 3 | 18 | — | — | |||||||||||
Other | Various | 2 | 25 | 1 | 14 | |||||||||||
Total regulatory assets (d) | $ | 97 | $ | 712 | $ | 144 | $ | 1,100 | ||||||||
(a) This asset represents the future recovery of under-funded pension and other postretirement benefit obligations through retail rates. If these costs are disallowed by the ACC, this regulatory asset would be charged to OCI and result in lower future revenues. See Note 8 for further discussion. | ||||||||||||||||
(b) See “Cost Recovery Mechanisms” discussion above. | ||||||||||||||||
(c) Subject to a carrying charge. | ||||||||||||||||
(d) There are no regulatory assets for which the ACC has allowed recovery of costs, but not allowed a return by exclusion from rate base. FERC rates are set using a formula rate as described in “Transmission Rates and Transmission Cost Adjustor.” | ||||||||||||||||
Schedule of regulatory liabilities | ' | |||||||||||||||
The detail of regulatory liabilities is as follows (dollars in millions): | ||||||||||||||||
Remaining | December 31, 2013 | December 31, 2012 | ||||||||||||||
Amortization | ||||||||||||||||
Period | Current | Non-Current | Current | Non-Current | ||||||||||||
Removal costs | (a | ) | $ | 28 | $ | 303 | $ | 27 | $ | 321 | ||||||
Asset retirement obligations | (a | ) | — | 266 | — | 256 | ||||||||||
Renewable energy standard (b) | 2015 | 33 | 15 | 43 | — | |||||||||||
Income taxes — change in rates | 2043 | — | 74 | — | 66 | |||||||||||
Spent nuclear fuel | 2047 | 6 | 36 | 10 | 36 | |||||||||||
Deferred gains on utility property | 2019 | 2 | 10 | 2 | 12 | |||||||||||
Income taxes — deferred investment tax credit | 2043 | 3 | 79 | 2 | 52 | |||||||||||
Demand side management (b) | 2014 | 27 | — | 4 | — | |||||||||||
Other | Various | — | 18 | — | 16 | |||||||||||
Total regulatory liabilities | $ | 99 | $ | 801 | $ | 88 | $ | 759 | ||||||||
(a) In accordance with regulatory accounting guidance, APS accrues for removal costs for its regulated assets, even if there is no legal obligation for removal (see Note 12). | ||||||||||||||||
(b) See “Cost Recovery Mechanisms” discussion above. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
Tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year | ' | ||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,422 | $ | 136,005 | $ | 127,595 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (108,099 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (826 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,422 | $ | 136,005 | |||||
Components of income tax expense | ' | ||||||||||
The components of income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (81,784 | ) | $ | (3,493 | ) | $ | (310 | ) | ||
State | 10,537 | 8,395 | 15,140 | ||||||||
Total current | (71,247 | ) | 4,902 | 14,830 | |||||||
Deferred: | |||||||||||
Federal | 279,973 | 200,322 | 159,566 | ||||||||
State | 21,865 | 28,280 | 16,626 | ||||||||
Total deferred | 301,838 | 228,602 | 176,192 | ||||||||
Total income tax expense | 230,591 | 233,504 | 191,022 | ||||||||
Less: income tax expense (benefit) on discontinued operations | — | (3,813 | ) | 7,418 | |||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
Comparison of pretax income from continuing operations at the federal income tax rate to income tax expense - continuing operations | ' | ||||||||||
The following chart compares pretax income from continuing operations at the 35% federal income tax rate to income tax expense — continuing operations (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 234,695 | $ | 229,709 | $ | 188,733 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 21,387 | 23,819 | 19,594 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,356 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,881 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,636 | ) | |||||
Other | (4,099 | ) | 529 | (9,029 | ) | ||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
Net deferred income tax liability recognized on the Consolidated Balance Sheets | ' | ||||||||||
The following table shows the net deferred income tax liability recognized on the Consolidated Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset | $ | 91,152 | $ | 152,191 | |||||||
Long-term liability | (2,351,882 | ) | (2,151,371 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
Components of the net deferred income tax liability | ' | ||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Risk management activities | $ | 44,920 | $ | 72,243 | |||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | 235,959 | 238,669 | |||||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Pension and other postretirement liabilities | 198,642 | 408,764 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 133,070 | 139,022 | |||||||||
Other | 148,492 | 68,844 | |||||||||
Total deferred tax assets | 951,242 | 1,082,084 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
Lines_of_Credit_and_ShortTerm_1
Lines of Credit and Short-Term Borrowings (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Lines of Credit and Short-Term Borrowings | ' | |||||||||||
Schedule of consolidated credit facilities and amounts available and outstanding | ' | |||||||||||
The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2013 (dollars in millions): | ||||||||||||
Credit Facility | Expiration | Amount | Unused | Commitment | ||||||||
Committed | Amount (a) | Fees | ||||||||||
Pinnacle West Revolving Credit Facility | November 2016 | $ | 200 | $ | 200 | 0.175 | % | |||||
APS Revolving Credit Facility | November 2016 | 500 | 347 | 0.125 | % | |||||||
APS Revolving Credit Facility | April 2018 | 500 | 500 | 0.125 | % | |||||||
Total | $ | 1,200 | $ | 1,047 | ||||||||
(a) At December 31, 2013, APS had $153 million of outstanding commercial paper. Accordingly, at such date, the total combined amount available under its two $500 million credit facilities was $847 million. | ||||||||||||
The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2012 (dollars in millions): | ||||||||||||
Credit Facility | Expiration | Amount | Unused | Commitment | ||||||||
Committed | Amount (a) | Fees | ||||||||||
Pinnacle West Revolving Credit Facility | November 2016 | $ | 200 | $ | 200 | 0.225 | % | |||||
APS Revolving Credit Facility | November 2016 | 500 | 408 | 0.175 | % | |||||||
APS Revolving Credit Facility | February 2015 | 500 | 500 | 0.2 | % | |||||||
Total | $ | 1,200 | $ | 1,108 | ||||||||
(a) At December 31, 2012, APS had $92 million of outstanding commercial paper. Accordingly, at such date the total combined amount available under its two $500 million credit facilities was $908 million. |
LongTerm_Debt_and_Liquidity_Ma1
Long-Term Debt and Liquidity Matters (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Long-Term Debt and Liquidity Matters | ' | |||||||||||||
Components of long-term debt on the Consolidated Balance Sheets | ' | |||||||||||||
The following table presents the components of long-term debt on the Consolidated Balance Sheets outstanding at December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||
Maturity | Interest | December 31, | ||||||||||||
Dates (a) | Rates | 2013 | 2012 | |||||||||||
APS | ||||||||||||||
Pollution Control Bonds: | ||||||||||||||
Variable | 2029-2038 | (b) | $ | 75,580 | $ | 75,580 | ||||||||
Fixed | 2024-2034 | 1.25%-6.00% | 426,125 | 490,275 | ||||||||||
Total Pollution Control Bonds | 501,705 | 565,855 | ||||||||||||
Senior unsecured notes | 2014-2042 | 4.50%-8.75% | 2,675,000 | 2,575,000 | ||||||||||
Palo Verde sale leaseback lessor notes | 2015 | 8.00% | 38,869 | 65,547 | ||||||||||
Unamortized discount | (8,732 | ) | (9,486 | ) | ||||||||||
Unamortized premium | 5,047 | — | ||||||||||||
Total APS long-term debt | 3,211,889 | 3,196,916 | ||||||||||||
Less current maturities | (d) | 540,424 | 122,828 | |||||||||||
Total APS long-term debt less current maturities | 2,671,465 | 3,074,088 | ||||||||||||
Pinnacle West | ||||||||||||||
Term loan | 2015 | (c) | 125,000 | 125,000 | ||||||||||
TOTAL LONG-TERM DEBT LESS CURRENT MATURITIES | $ | 2,796,465 | $ | 3,199,088 | ||||||||||
(a) This schedule does not reflect the timing of redemptions that may occur prior to maturities. | ||||||||||||||
(b) The weighted-average rate for the variable rate pollution control bonds was 0.03%-0.06% at December 31, 2013 and 0.13%-0.15% at December 31, 2012. | ||||||||||||||
(c) The weighted-average interest rate was 1.269% at December 31, 2013 and 1.312% at December 31, 2012. | ||||||||||||||
(d) Current maturities include $215 million of pollution control bonds expected to be remarketed in 2014 and $300 million in senior unsecured notes that mature in 2014. | ||||||||||||||
Principal payments due on Pinnacle West's and APS's total long-term debt | ' | |||||||||||||
The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in millions): | ||||||||||||||
Year | Consolidated | Consolidated | ||||||||||||
Pinnacle West | APS | |||||||||||||
2014 | $ | 540 | $ | 540 | ||||||||||
2015 | 470 | 345 | ||||||||||||
2016 | 358 | 358 | ||||||||||||
2017 | — | — | ||||||||||||
2018 | 32 | 32 | ||||||||||||
Thereafter | 1,940 | 1,940 | ||||||||||||
Total | $ | 3,340 | $ | 3,215 | ||||||||||
Schedule of estimated fair value of long-term debt, including current maturities | ' | |||||||||||||
The following table represents the estimated fair value of our long-term debt, including current maturities (dollars in millions): | ||||||||||||||
As of | As of | |||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||
Carrying | Fair Value | Carrying | Fair Value | |||||||||||
Amount | Amount | |||||||||||||
Pinnacle West | $ | 125 | $ | 125 | $ | 125 | $ | 125 | ||||||
APS | 3,212 | 3,454 | 3,197 | 3,750 | ||||||||||
Total | $ | 3,337 | $ | 3,579 | $ | 3,322 | $ | 3,875 | ||||||
Common_Stock_and_Treasury_Stoc1
Common Stock and Treasury Stock (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Common Stock and Treasury Stock | ' | |||||||||||
Schedule of common stock and treasury stock activity | ' | |||||||||||
Our common stock and treasury stock activity during each of the three years 2013, 2012 and 2011 is as follows (dollars in thousands): | ||||||||||||
Common Stock | Treasury Stock | |||||||||||
Shares | Amount | Shares | Amount | |||||||||
Balance at December 31, 2010 | 108,820,067 | $ | 2,421,372 | (50,410 | ) | $ | (2,239 | ) | ||||
Common stock issuance | 536,907 | 22,875 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (88,440 | ) | (3,720 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 27,689 | 1,242 | ||||||||
Balance at December 31, 2011 | 109,356,974 | 2,444,247 | (111,161 | ) | (4,717 | ) | ||||||
Common stock issuance | 480,983 | 22,676 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (89,629 | ) | (4,607 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 105,598 | 5,113 | ||||||||
Balance at December 31, 2012 | 109,837,957 | 2,466,923 | (95,192 | ) | (4,211 | ) | ||||||
Common stock issuance | 442,746 | 24,635 | — | — | ||||||||
Purchase of treasury stock (a) | — | — | (174,290 | ) | (9,727 | ) | ||||||
Reissuance of treasury stock for stock compensation | — | — | 170,538 | 9,630 | ||||||||
Balance at December 31, 2013 | 110,280,703 | $ | 2,491,558 | (98,944 | ) | $ | (4,308 | ) | ||||
(a) Primarily represents shares of common stock withheld from certain stock awards for tax purposes. | ||||||||||||
Retirement_Plans_and_Other_Ben1
Retirement Plans and Other Benefits (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Retirement Plans and Other Benefits | ' | |||||||||||||||||||
Schedule of net periodic benefit costs and the portion of these costs charged to expense (including administrative costs and excluding amounts capitalized as overhead construction, billed to electric plant participants or charged or amortized to the regulatory asset) | ' | |||||||||||||||||||
The following table provides details of the plans’ net periodic benefit costs and the portion of these costs charged to expense (including administrative costs and excluding amounts capitalized as overhead construction, billed to electric plant participants or charged to the regulatory asset) (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||
Service cost-benefits earned during the period | $ | 64,195 | $ | 63,502 | $ | 57,605 | $ | 23,597 | $ | 27,163 | $ | 21,856 | ||||||||
Interest cost on benefit obligation | 112,392 | 119,586 | 124,727 | 41,536 | 46,467 | 46,807 | ||||||||||||||
Expected return on plan assets | (146,333 | ) | (140,979 | ) | (133,678 | ) | (45,717 | ) | (45,793 | ) | (41,536 | ) | ||||||||
Amortization of: | ||||||||||||||||||||
Transition obligation | — | — | — | — | 452 | 452 | ||||||||||||||
Prior service cost (credit) | 1,097 | 1,143 | 1,400 | (179 | ) | (179 | ) | (179 | ) | |||||||||||
Net actuarial loss | 39,852 | 44,250 | 25,956 | 11,310 | 20,233 | 15,015 | ||||||||||||||
Net periodic benefit cost | $ | 71,203 | $ | 87,502 | $ | 76,010 | $ | 30,547 | $ | 48,343 | $ | 42,415 | ||||||||
Portion of cost charged to expense | $ | 38,968 | $ | 36,333 | $ | 29,312 | $ | 18,469 | $ | 19,321 | $ | 15,208 | ||||||||
Schedule of changes in the benefit obligations and funded status | ' | |||||||||||||||||||
The following table shows the plans’ changes in the benefit obligations and funded status for the years 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Change in Benefit Obligation | ||||||||||||||||||||
Benefit obligation at January 1 | $ | 2,850,846 | $ | 2,699,126 | $ | 990,418 | $ | 1,047,094 | ||||||||||||
Service cost | 64,195 | 63,502 | 23,597 | 27,163 | ||||||||||||||||
Interest cost | 112,392 | 119,586 | 41,536 | 46,467 | ||||||||||||||||
Benefit payments | (125,269 | ) | (113,632 | ) | (26,675 | ) | (26,279 | ) | ||||||||||||
Actuarial (gain) loss | (255,634 | ) | 82,264 | (138,458 | ) | (104,027 | ) | |||||||||||||
Benefit obligation at December 31 | 2,646,530 | 2,850,846 | 890,418 | 990,418 | ||||||||||||||||
Change in Plan Assets | ||||||||||||||||||||
Fair value of plan assets at January 1 | 2,079,181 | 1,850,550 | 684,221 | 608,663 | ||||||||||||||||
Actual return on plan assets | 150,546 | 259,363 | 76,995 | 83,567 | ||||||||||||||||
Employer contributions | 140,500 | 65,000 | 14,438 | 22,707 | ||||||||||||||||
Benefit payments | (106,106 | ) | (95,732 | ) | (27,315 | ) | (30,716 | ) | ||||||||||||
Fair value of plan assets at December 31 | 2,264,121 | 2,079,181 | 748,339 | 684,221 | ||||||||||||||||
Funded Status at December 31 | $ | (382,409 | ) | $ | (771,665 | ) | $ | (142,079 | ) | $ | (306,197 | ) | ||||||||
Schedule of projected benefit obligation and the accumulated benefit obligation for pension plans with an accumulated obligation in excess of plan assets | ' | |||||||||||||||||||
The following table shows the projected benefit obligation and the accumulated benefit obligation for pension plans with an accumulated obligation in excess of plan assets as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Projected benefit obligation | $ | 2,646,530 | $ | 2,850,846 | ||||||||||||||||
Accumulated benefit obligation | 2,469,889 | 2,646,306 | ||||||||||||||||||
Fair value of plan assets | 2,264,121 | 2,079,181 | ||||||||||||||||||
Schedule of amounts recognized on the Consolidated Balance Sheets | ' | |||||||||||||||||||
The following table shows the amounts recognized on the Consolidated Balance Sheets as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Current liability | $ | (10,860 | ) | $ | (19,107 | ) | $ | — | $ | — | ||||||||||
Noncurrent liability | (371,549 | ) | (752,558 | ) | (142,079 | ) | (306,197 | ) | ||||||||||||
Net amount recognized | $ | (382,409 | ) | $ | (771,665 | ) | $ | (142,079 | ) | $ | (306,197 | ) | ||||||||
Schedule of accumulated other comprehensive loss | ' | |||||||||||||||||||
The following table shows the details related to accumulated other comprehensive loss as of December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | Other Benefits | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Net actuarial loss | $ | 344,540 | $ | 644,239 | $ | 57,816 | $ | 238,862 | ||||||||||||
Prior service cost (credit) | 2,072 | 3,169 | (296 | ) | (475 | ) | ||||||||||||||
APS’s portion recorded as a regulatory asset | (265,107 | ) | (550,471 | ) | (49,298 | ) | (230,020 | ) | ||||||||||||
Income tax benefit | (32,204 | ) | (38,303 | ) | (2,528 | ) | (2,585 | ) | ||||||||||||
Accumulated other comprehensive loss | $ | 49,301 | $ | 58,634 | $ | 5,694 | $ | 5,782 | ||||||||||||
Schedule of estimated amounts that will be amortized from accumulated other comprehensive loss and regulatory assets into net periodic benefit cost | ' | |||||||||||||||||||
The following table shows the estimated amounts that will be amortized from accumulated other comprehensive loss and regulatory assets into net periodic benefit cost in 2014 (dollars in thousands): | ||||||||||||||||||||
Pension | Other | |||||||||||||||||||
Benefits | ||||||||||||||||||||
Net actuarial loss | $ | 8,363 | $ | — | ||||||||||||||||
Prior service cost (credit) | 874 | (179 | ) | |||||||||||||||||
Total amounts estimated to be amortized from accumulated other comprehensive loss and regulatory assets in 2014 | $ | 9,237 | $ | (179 | ) | |||||||||||||||
Schedule of weighted-average assumptions used for both the pension and other benefits to determine benefit obligations and net periodic benefit costs | ' | |||||||||||||||||||
The following table shows the weighted-average assumptions used for both the pension and other benefits to determine benefit obligations and net periodic benefit costs: | ||||||||||||||||||||
Benefit Obligations | Benefit Costs | |||||||||||||||||||
As of December 31, | For the Years Ended December 31, | |||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | ||||||||||||||||
Discount rate – pension | 4.88 | % | 4.01 | % | 4.01 | % | 4.42 | % | 5.31 | % | ||||||||||
Discount rate – other benefits | 5.1 | % | 4.2 | % | 4.2 | % | 4.59 | % | 5.49 | % | ||||||||||
Rate of compensation increase | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||
Expected long-term return on plan assets | N/A | N/A | 7 | % | 7.75 | % | 7.75 | % | ||||||||||||
Initial healthcare cost trend rate | 7.5 | % | 7.5 | % | 7.5 | % | 7.5 | % | 8 | % | ||||||||||
Ultimate healthcare cost trend rate | 5 | % | 5 | % | 5 | % | 5 | % | 5 | % | ||||||||||
Number of years to ultimate trend rate | 4 | 4 | 4 | 4 | 4 | |||||||||||||||
Schedule of effects of one percentage point change in the assumed initial and ultimate health care cost trend rates | ' | |||||||||||||||||||
A one percentage point change in the assumed initial and ultimate healthcare cost trend rates would have the following effects (dollars in millions): | ||||||||||||||||||||
1% Increase | 1% Decrease | |||||||||||||||||||
Effect on other postretirement benefits expense, after consideration of amounts capitalized or billed to electric plant participants | $ | 13 | $ | (10 | ) | |||||||||||||||
Effect on service and interest cost components of net periodic other postretirement benefit costs | 14 | (11 | ) | |||||||||||||||||
Effect on the accumulated other postretirement benefit obligation | 149 | (120 | ) | |||||||||||||||||
Schedule of fair value of pension plan and other postretirement benefit plan assets, by asset category | ' | |||||||||||||||||||
The fair value of Pinnacle West’s pension plan and other postretirement benefit plan assets at December 31, 2013, by asset category, are as follows (dollars in thousands): | ||||||||||||||||||||
Quoted Prices | Significant | Significant | Other (c) | Balance at | ||||||||||||||||
in Active | Other | Unobservable | December 31, | |||||||||||||||||
Markets for | Observable | Inputs | 2013 | |||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 504 | $ | — | $ | — | $ | — | $ | 504 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 898,621 | — | — | 898,621 | |||||||||||||||
U.S. Treasury | 231,590 | — | — | — | 231,590 | |||||||||||||||
Other (b) | — | 84,011 | — | — | 84,011 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 239,036 | — | — | — | 239,036 | |||||||||||||||
International Companies | 19,429 | — | — | — | 19,429 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 116,150 | — | — | 116,150 | |||||||||||||||
International Equities | — | 367,551 | — | — | 367,551 | |||||||||||||||
Fixed Income | 137,520 | 137,520 | ||||||||||||||||||
Real estate | — | 119,739 | — | — | 119,739 | |||||||||||||||
Short-term investments and other | — | 41,060 | 8,660 | (a) | 250 | 49,970 | ||||||||||||||
Total Pension Plan | $ | 490,559 | $ | 1,764,652 | $ | 8,660 | $ | 250 | $ | 2,264,121 | ||||||||||
Other Benefits: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | $ | — | $ | 153,888 | $ | — | $ | — | $ | 153,888 | ||||||||||
U.S. Treasury | 98,704 | — | — | — | 98,704 | |||||||||||||||
Other (b) | — | 27,936 | — | — | 27,936 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 252,181 | — | — | — | 252,181 | |||||||||||||||
International Companies | 20,892 | — | — | — | 20,892 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 80,751 | — | — | 80,751 | |||||||||||||||
International Equities | — | 92,382 | — | — | 92,382 | |||||||||||||||
Real Estate | — | 10,761 | — | — | 10,761 | |||||||||||||||
Short-term investments and other | — | 8,414 | — | 2,430 | 10,844 | |||||||||||||||
Total Other Benefits | $ | 371,777 | $ | 374,132 | $ | — | $ | 2,430 | $ | 748,339 | ||||||||||
(a) Represents investments in a partnership that invests in privately held portfolio companies. | ||||||||||||||||||||
(b) This category consists primarily of debt securities issued by municipalities. | ||||||||||||||||||||
(c) Represents plan receivables and payables. | ||||||||||||||||||||
The fair value of Pinnacle West’s pension plan and other postretirement benefit plan assets at December 31, 2012, by asset category, are as follows (dollars in thousands): | ||||||||||||||||||||
Quoted Prices | Significant | Significant | Other (c) | Balance at | ||||||||||||||||
in Active | Other | Unobservable | December 31, | |||||||||||||||||
Markets for | Observable | Inputs | 2012 | |||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||||
Assets | (Level 2) | |||||||||||||||||||
(Level 1) | ||||||||||||||||||||
Pension Plan: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 579 | $ | — | $ | — | $ | — | $ | 579 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 607,749 | — | — | 607,749 | |||||||||||||||
U.S. Treasury | 232,161 | — | — | — | 232,161 | |||||||||||||||
Other (b) | — | 67,992 | — | — | 67,992 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 531,291 | — | — | — | 531,291 | |||||||||||||||
International Companies | 43,848 | — | — | — | 43,848 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 176,694 | — | — | 176,694 | |||||||||||||||
International Equities | — | 271,735 | — | — | 271,735 | |||||||||||||||
Real estate | — | 117,854 | — | — | 117,854 | |||||||||||||||
Short-term investments and other | — | 26,922 | 2,419 | (a) | (63 | ) | 29,278 | |||||||||||||
Total Pension Plan | $ | 807,879 | $ | 1,268,946 | $ | 2,419 | $ | (63 | ) | $ | 2,079,181 | |||||||||
Other Benefits: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 60 | $ | — | $ | — | $ | — | $ | 60 | ||||||||||
Fixed Income Securities: | ||||||||||||||||||||
Corporate | — | 163,306 | — | — | 163,306 | |||||||||||||||
U.S. Treasury | 112,558 | — | — | — | 112,558 | |||||||||||||||
Other (b) | — | 33,998 | — | — | 33,998 | |||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 205,714 | — | — | — | 205,714 | |||||||||||||||
International Companies | 14,412 | — | — | — | 14,412 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 60,038 | — | — | 60,038 | |||||||||||||||
International Equities | — | 76,969 | — | — | 76,969 | |||||||||||||||
Real Estate | — | 9,378 | — | — | 9,378 | |||||||||||||||
Short-term investments and other | 402 | 6,340 | — | 1,046 | 7,788 | |||||||||||||||
Total Other Benefits | $ | 333,146 | $ | 350,029 | $ | — | $ | 1,046 | $ | 684,221 | ||||||||||
(a) Represents investments in a partnership that invests in privately held portfolio companies. | ||||||||||||||||||||
(b) This category consists primarily of debt securities issued by municipalities. | ||||||||||||||||||||
(c) Represents plan receivables and payables. | ||||||||||||||||||||
Schedule of changes in fair value for assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) | ' | |||||||||||||||||||
The following table shows the changes in fair value for assets that are measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the year ended December 31, 2013 and 2012 (dollars in thousands): | ||||||||||||||||||||
Pension | ||||||||||||||||||||
Short-Term Investments and Other | 2013 | 2012 | ||||||||||||||||||
Beginning balance at January 1 | $ | 2,419 | $ | — | ||||||||||||||||
Actual return on assets still held at December 31 | (498 | ) | (668 | ) | ||||||||||||||||
Purchases, sales, and settlements | 6,739 | 3,087 | ||||||||||||||||||
Transfers in and/or out of Level 3 | — | — | ||||||||||||||||||
Ending balance at December 31 | $ | 8,660 | $ | 2,419 | ||||||||||||||||
Schedule of estimated future benefit payments, which reflect estimated future employee service, for the next five years and the succeeding five years thereafter | ' | |||||||||||||||||||
Benefit payments, which reflect estimated future employee service, for the next five years and the succeeding five years thereafter, are estimated to be as follows (dollars in thousands): | ||||||||||||||||||||
Year | Pension | Other Benefits | ||||||||||||||||||
2014 | $ | 129,159 | $ | 28,664 | ||||||||||||||||
2015 | 143,452 | 31,804 | ||||||||||||||||||
2016 | 149,105 | 34,933 | ||||||||||||||||||
2017 | 162,678 | 37,966 | ||||||||||||||||||
2018 | 169,064 | 40,972 | ||||||||||||||||||
Years 2019-2023 | 972,826 | 245,366 | ||||||||||||||||||
Leases_Tables
Leases (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Leases | ' | |||||||
Estimated future minimum lease payments for Pinnacle West's and APS's operating leases, excluding purchased power agreements | ' | |||||||
Estimated future minimum lease payments for Pinnacle West’s and APS’s operating leases, excluding purchased power agreements, are approximately as follows (dollars in millions): | ||||||||
Year | Pinnacle West | APS | ||||||
Consolidated | ||||||||
2014 | $ | 20 | $ | 17 | ||||
2015 | 17 | 14 | ||||||
2016 | 6 | 5 | ||||||
2017 | 5 | 5 | ||||||
2018 | 4 | 4 | ||||||
Thereafter | 59 | 59 | ||||||
Total future lease commitments | $ | 111 | $ | 104 | ||||
JointlyOwned_Facilities_Tables
Jointly-Owned Facilities (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Jointly-Owned Facilities | ' | ||||||||||||
APS's interests in jointly-owned facilities recorded on the Consolidated Balance Sheets | ' | ||||||||||||
The following table shows APS’s interests in those jointly-owned facilities recorded on the Consolidated Balance Sheets at December 31, 2013 (dollars in thousands): | |||||||||||||
Percent | Plant in | Accumulated | Construction | ||||||||||
Owned | Service | Depreciation | Work in | ||||||||||
Progress | |||||||||||||
Generating facilities: | |||||||||||||
Palo Verde Units 1 and 3 | 29.1 | % | $ | 1,701,844 | $ | 1,027,523 | $ | 22,400 | |||||
Palo Verde Unit 2 (a) | 16.8 | % | 543,972 | 338,918 | 10,095 | ||||||||
Palo Verde Common | 28 | % (b) | 538,818 | 219,801 | 81,599 | ||||||||
Palo Verde Sale Leaseback | (a) | 351,050 | 225,925 | — | |||||||||
Four Corners Units 4, 5 and Common (d) | 63 | % | 809,946 | 608,194 | 14,434 | ||||||||
Navajo Generating Station Units 1, 2 and 3 | 14 | % | 270,448 | 150,501 | 2,864 | ||||||||
Cholla common facilities (c) | 63.3 | % (b) | 148,299 | 47,851 | 7,159 | ||||||||
Transmission facilities: | |||||||||||||
ANPP 500kV System | 34.2 | % (b) | 98,145 | 32,350 | 1,095 | ||||||||
Navajo Southern System | 22.2 | % (b) | 58,702 | 16,937 | 518 | ||||||||
Palo Verde — Yuma 500kV System | 18 | % (b) | 12,115 | 4,656 | 11,786 | ||||||||
Four Corners Switchyards | 48.1 | % (b) | 33,460 | 9,052 | 185 | ||||||||
Phoenix — Mead System | 17.1 | % (b) | 39,758 | 12,140 | — | ||||||||
Palo Verde — Estrella 500kV System | 50 | % (b) | 89,571 | 14,883 | 21 | ||||||||
Morgan — Pinnacle Peak System | 64.5 | % (b) | 130,132 | 6,651 | 1,042 | ||||||||
Round Valley System | 50 | % (b) | 488 | 268 | — | ||||||||
Palo Verde — Morgan System | 90 | % (b) | — | — | 36,601 | ||||||||
(a) See Note 19. | |||||||||||||
(b) Weighted-average of interests. | |||||||||||||
(c) PacifiCorp owns Cholla Unit 4 and APS operates the unit for PacifiCorp. The common facilities at Cholla are jointly-owned. | |||||||||||||
(d) See Note 3. | |||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Commitments and Contingencies. | ' | |||||||||||||||||||
Summary of estimated coal take-or-pay commitments | ' | |||||||||||||||||||
The following table summarizes our estimated coal take-or-pay commitments (dollars in millions): | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | |||||||||||||||
Coal take-or-pay commitments (a) | $ | 152 | $ | 157 | $ | 166 | $ | 180 | $ | 175 | $ | 2,539 | ||||||||
(a) Total take-or-pay commitments are approximately $3.4 billion. The total net present value of these commitments is approximately $2.2 billion. | ||||||||||||||||||||
Summary of actual take-or-pay commitments | ' | |||||||||||||||||||
The following table summarizes the actual amounts purchased under the coal contracts which include take-or-pay provisions for each of the last three years (dollars in millions): | ||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Total purchases | $ | 188 | $ | 196 | $ | 191 | ||||||||||||||
Asset_Retirement_Obligations_T
Asset Retirement Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Asset Retirement Obligations | ' | |||||||
Change in asset retirement obligations | ' | |||||||
The following schedule shows the change in our asset retirement obligations for 2013 and 2012 (dollars in millions): | ||||||||
2013 | 2012 | |||||||
Asset retirement obligations at the beginning of year | $ | 357 | $ | 280 | ||||
Changes attributable to: | ||||||||
Accretion expense | 24 | 19 | ||||||
Settlements | (12 | ) | — | |||||
Assumed SCE’s obligation | 34 | — | ||||||
Estimated cash flow revisions | (56 | ) | 58 | |||||
Asset retirement obligations at the end of year | $ | 347 | $ | 357 | ||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
Schedule of quarterly financial information | ' | ||||||||||||||||
Consolidated quarterly financial information for 2013 and 2012 is provided in the tables below (dollars in thousands, except per share amounts). | |||||||||||||||||
2013 Quarter Ended | 2013 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 686,652 | $ | 915,822 | $ | 1,152,392 | $ | 699,762 | $ | 3,454,628 | |||||||
Operations and maintenance | 223,250 | 229,300 | 233,323 | 238,854 | 924,727 | ||||||||||||
Operating income | 86,923 | 259,812 | 415,688 | 83,900 | 846,323 | ||||||||||||
Income taxes | 12,469 | 77,043 | 131,912 | 9,167 | 230,591 | ||||||||||||
Income from continuing operations | 32,836 | 139,598 | 234,718 | 32,814 | 439,966 | ||||||||||||
Net income attributable to common shareholders | 24,444 | 131,207 | 226,163 | 24,260 | 406,074 | ||||||||||||
Earnings Per Share: | |||||||||||||||||
Income from continuing operations attributable to common shareholders — Basic | $ | 0.22 | $ | 1.19 | $ | 2.06 | $ | 0.22 | $ | 3.69 | |||||||
Net income attributable to common shareholders — Basic | 0.22 | 1.19 | 2.06 | 0.22 | 3.69 | ||||||||||||
Income from continuing operations attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
Net income attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
2012 Quarter Ended | 2012 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 620,631 | $ | 878,576 | $ | 1,109,475 | $ | 693,122 | $ | 3,301,804 | |||||||
Operations and maintenance | 210,663 | 216,236 | 220,729 | 237,141 | 884,769 | ||||||||||||
Operating income | 48,007 | 254,489 | 447,970 | 101,289 | 851,755 | ||||||||||||
Income taxes | (4,645 | ) | 76,689 | 147,116 | 18,157 | 237,317 | |||||||||||
Income from continuing operations | 284 | 130,930 | 252,874 | 34,905 | 418,993 | ||||||||||||
Net income (loss) attributable to common shareholders | (8,257 | ) | 122,345 | 244,823 | 22,631 | 381,542 | |||||||||||
Earnings Per Share: | |||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders — Basic | $ | (0.07 | ) | $ | 1.12 | $ | 2.23 | $ | 0.24 | $ | 3.54 | ||||||
Net income (loss) attributable to common shareholders — Basic | (0.08 | ) | 1.12 | 2.23 | 0.21 | 3.48 | |||||||||||
Income (loss) from continuing operations attributable to common shareholders — Diluted | (0.07 | ) | 1.12 | 2.21 | 0.24 | 3.5 | |||||||||||
Net income (loss) attributable to common shareholders — Diluted | (0.08 | ) | 1.11 | 2.21 | 0.2 | 3.45 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair value of assets and liabilities that are measured at fair value on a recurring basis | ' | ||||||||||||||||
The following table presents the fair value at December 31, 2013 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions): | |||||||||||||||||
Quoted Prices | Significant | Significant | Other | Balance at | |||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs (a) | 2013 | ||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity Contracts | $ | — | $ | 9 | $ | 41 | $ | (9 | ) (b) | $ | 41 | ||||||
Nuclear decommissioning trust: | |||||||||||||||||
U.S. commingled equity funds | — | 272 | — | — | 272 | ||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasury | 107 | — | — | — | 107 | ||||||||||||
Cash and cash equivalent funds | — | 11 | — | (3 | ) (c) | 8 | |||||||||||
Corporate debt | — | 88 | — | — | 88 | ||||||||||||
Mortgage-backed securities | — | 85 | — | — | 85 | ||||||||||||
Municipality bonds | — | 71 | — | — | 71 | ||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||
Subtotal nuclear decommissioning trust | 107 | 538 | — | (3 | ) | 642 | |||||||||||
Total | $ | 107 | $ | 547 | $ | 41 | $ | (12 | ) | $ | 683 | ||||||
Liabilities | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity contracts | $ | — | $ | (33 | ) | $ | (90 | ) | $ | 21 | (b) | $ | (102 | ) | |||
(a) Primarily consists of heat rate options and other long-dated electricity contracts. | |||||||||||||||||
(b) Represents counterparty netting, margin and collateral. See Note 17. | |||||||||||||||||
(c) Represents nuclear decommissioning trust net pending securities sales and purchases. | |||||||||||||||||
The following table presents the fair value at December 31, 2012 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions): | |||||||||||||||||
Quoted Prices | Significant | Significant | Other | Balance at | |||||||||||||
in Active | Other | Unobservable | December 31, | ||||||||||||||
Markets for | Observable | Inputs (a) | 2012 | ||||||||||||||
Identical | Inputs | (Level 3) | |||||||||||||||
Assets | (Level 2) | ||||||||||||||||
(Level 1) | |||||||||||||||||
Assets | |||||||||||||||||
Cash equivalents | $ | 16 | $ | — | $ | — | $ | — | $ | 16 | |||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity Contracts | — | 22 | 62 | (22 | ) (b) | 62 | |||||||||||
Nuclear decommissioning trust: | |||||||||||||||||
U.S. commingled equity funds | — | 204 | — | — | 204 | ||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasury | 104 | — | — | — | 104 | ||||||||||||
Cash and cash equivalent funds | 6 | 13 | — | (4 | ) (c) | 15 | |||||||||||
Corporate debt | — | 80 | — | — | 80 | ||||||||||||
Mortgage-backed securities | — | 83 | — | — | 83 | ||||||||||||
Municipality bonds | — | 74 | — | — | 74 | ||||||||||||
Other | — | 11 | — | — | 11 | ||||||||||||
Subtotal nuclear decommissioning trust | 110 | 465 | — | (4 | ) | 571 | |||||||||||
Total | $ | 126 | $ | 487 | $ | 62 | $ | (26 | ) | $ | 649 | ||||||
Liabilities | |||||||||||||||||
Risk management activities — derivative instruments: | |||||||||||||||||
Commodity contracts | $ | — | $ | (96 | ) | $ | (110 | ) | $ | 47 | (b) | $ | (159 | ) | |||
(a) Primarily consists of heat rate options and other long-dated electricity contracts. | |||||||||||||||||
(b) Represents counterparty netting, margin and collateral. See Note 17. | |||||||||||||||||
(c) Represents nuclear decommissioning trust net pending securities sales and purchases. | |||||||||||||||||
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ||||||||||||||||
December 31, 2013 | Valuation | Significant | Weighted- | ||||||||||||||
Fair Value (millions) | |||||||||||||||||
Commodity Contracts | Assets | Liabilities | Technique | Unobservable Input | Range | Average | |||||||||||
Electricity: | |||||||||||||||||
Forward Contracts (a) | $ | 40 | $ | 66 | Discounted cash flows | Electricity forward price (per MWh) | $24.89 - $65.04 | $ | 41.09 | ||||||||
Option Contracts (b) | — | 19 | Option model | Electricity forward price (per MWh) | $39.91 - $85.41 | $ | 58.7 | ||||||||||
Natural gas forward price (per MMbtu) | $3.57 - $3.80 | $ | 3.71 | ||||||||||||||
Electricity price volatilities | 35% - 94% | 59 | % | ||||||||||||||
Natural gas price volatilities | 22% - 36% | 27 | % | ||||||||||||||
Natural Gas: | |||||||||||||||||
Forward Contracts (a) | 1 | 5 | Discounted cash flows | Natural gas forward price (per MMbtu) | $3.47 - $4.31 | $ | 3.87 | ||||||||||
Total | $ | 41 | $ | 90 | |||||||||||||
(a) Includes swaps and physical and financial contracts. | |||||||||||||||||
(b) Electricity and natural gas price volatilities are estimated based on historical forward price movements due to lack of market quotes for implied volatilities. | |||||||||||||||||
December 31, 2012 | Valuation | Significant | Weighted- | ||||||||||||||
Fair Value (millions) | |||||||||||||||||
Commodity Contracts | Assets | Liabilities | Technique | Unobservable Input | Range | Average | |||||||||||
Electricity: | |||||||||||||||||
Forward Contracts (a) | $ | 57 | $ | 82 | Discounted cash flows | Electricity forward price (per MWh) | $23.06 - $64.20 | $ | 43.16 | ||||||||
Option Contracts | — | 27 | Option model | Electricity forward price (per MWh) | $36.66 - $92.19 | $ | 60.97 | ||||||||||
Natural gas forward price (per MMbtu) | $4.10 - $4.25 | $ | 4.2 | ||||||||||||||
Implied electricity price volatilities | 15% - 66% | 39 | % | ||||||||||||||
Implied natural gas price volatilities | 17% - 36% | 23 | % | ||||||||||||||
Natural Gas: | |||||||||||||||||
Forward Contracts (a) | 5 | 1 | Discounted cash flows | Natural gas forward price (per MMbtu) | $3.25 - $4.44 | $ | 3.93 | ||||||||||
Total | $ | 62 | $ | 110 | |||||||||||||
(a) Includes swaps and physical and financial contracts. | |||||||||||||||||
Changes in fair value for assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs | ' | ||||||||||||||||
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 for the years ended December 31, 2013 and 2012 (dollars in millions): | |||||||||||||||||
Year Ended | |||||||||||||||||
December 31, | |||||||||||||||||
Commodity Contracts | 2013 | 2012 | |||||||||||||||
Net derivative balance at beginning of period | $ | (48 | ) | $ | (51 | ) | |||||||||||
Total net gains (losses) realized/unrealized: | |||||||||||||||||
Included in earnings | — | 2 | |||||||||||||||
Included in OCI | — | (3 | ) | ||||||||||||||
Deferred as a regulatory asset or liability | (10 | ) | 7 | ||||||||||||||
Settlements | 10 | (5 | ) | ||||||||||||||
Transfers into Level 3 from Level 2 | — | (2 | ) | ||||||||||||||
Transfers from Level 3 into Level 2 | (1 | ) | 4 | ||||||||||||||
Net derivative balance at end of period | $ | (49 | ) | $ | (48 | ) | |||||||||||
Net unrealized gains included in earnings related to instruments still held at end of period | $ | — | $ | — | |||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Earnings Per Share | ' | ||||||||||
Schedule of earnings per weighted average common share outstanding | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Basic earnings per share: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.69 | $ | 3.54 | $ | 3.01 | |||||
Income (loss) from discontinued operations | — | (0.06 | ) | 0.1 | |||||||
Earnings per share – basic | $ | 3.69 | $ | 3.48 | $ | 3.11 | |||||
Diluted earnings per share: | |||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.66 | $ | 3.5 | $ | 2.99 | |||||
Income (loss) from discontinued operations | — | (0.05 | ) | 0.1 | |||||||
Earnings per share – diluted | $ | 3.66 | $ | 3.45 | $ | 3.09 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Stock-Based Compensation | ' | ||||||||||
Summary of granted restricted stock units and stock grants and the weighted average fair value | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Units granted | 129,620 | 202,278 | 292,242 | ||||||||
Grant date fair value (a) | $ | 55.21 | $ | 49.31 | $ | 41.98 | |||||
(a) Weighted-average grant date fair value. | |||||||||||
Summary of the status of restricted stock units and stock grants and changes during the year | ' | ||||||||||
Nonvested shares | Shares | Weighted-Average | |||||||||
Grant Date Fair Value | |||||||||||
Nonvested at January 1, 2013 | 480,753 | $ | 43.58 | ||||||||
Granted | 129,620 | 55.21 | |||||||||
Vested | 191,988 | 40.33 | |||||||||
Forfeited | 20,409 | 45.7 | |||||||||
Nonvested at December 31, 2013 | 397,976 | 47.74 | |||||||||
Schedule of amount of cash required to settle the payments on restricted stock units | ' | ||||||||||
The amount of cash required to settle the payments on restricted stock units is (dollars in millions): | |||||||||||
Year | 2013 | 2012 | 2011 | ||||||||
2007 Grant | $ | — | $ | — | $ | 1 | |||||
2008 Grant | — | 1.9 | 1.6 | ||||||||
2009 Grant | 3 | 1.7 | 1.5 | ||||||||
2010 Grant | 2.3 | 0.6 | 0.6 | ||||||||
2011 Grant | 2.5 | 0.7 | — | ||||||||
2012 Grant | 2.2 | — | — | ||||||||
Summary of the performance shares granted and the weighted average fair value | ' | ||||||||||
2013 | 2012 | 2011 | |||||||||
Units granted (a) | 176,332 | 185,878 | 175,072 | ||||||||
Grant date fair value (b) | $ | 55.45 | $ | 47.4 | $ | 41.71 | |||||
(a) Reflects the target payout level. | |||||||||||
(b) Weighted-average grant date fair value. | |||||||||||
Summary of the status of performance shares and changes during the year | ' | ||||||||||
Nonvested shares (a) | Shares | Weighted-Average | |||||||||
Grant Date Fair Value | |||||||||||
Nonvested at January 1, 2013 | 347,690 | $ | 44.67 | ||||||||
Granted | 176,332 | 55.45 | |||||||||
Increase in performance factor | 40,183 | 41.71 | |||||||||
Vested | 200,915 | 41.71 | |||||||||
Forfeited | 18,894 | 48.11 | |||||||||
Nonvested at December 31, 2013 | 344,396 | 51.13 | |||||||||
(a) Nonvested shares are reflected at target payout level. The increase or decrease in the number of shares from the target level to the estimated actual payout level is included in the increase for performance factor amounts in the year the award vests. | |||||||||||
Summary of stock option activity under prior equity incentive plans | ' | ||||||||||
Options | Shares | Weighted- | |||||||||
Average | |||||||||||
Exercise | |||||||||||
Price | |||||||||||
Outstanding at January 1, 2013 | 7,925 | $ | 32.29 | ||||||||
Exercised | 3,625 | 32.29 | |||||||||
Forfeited or expired | 4,300 | 32.29 | |||||||||
Outstanding at December 31, 2013 | — | — | |||||||||
Derivative_Accounting_Tables
Derivative Accounting (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Derivative Accounting | ' | ||||||||||||||||
Outstanding gross notional amount of derivatives, which represents both purchases and sales (does not reflect net position) | ' | ||||||||||||||||
As of December 31, 2013, we had the following outstanding gross notional volume of derivatives, which represent both purchases and sales (does not reflect net position): | |||||||||||||||||
Commodity | Quantity | ||||||||||||||||
Power | 5,765 | GWh | |||||||||||||||
Gas | 108 | Bcfs (a) | |||||||||||||||
(a) “Bcf” is Billion Cubic Feet. | |||||||||||||||||
Gains and losses from derivative instruments in designated cash flow accounting hedges relationships | ' | ||||||||||||||||
The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging relationships during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
Financial Statement | December 31, | ||||||||||||||||
Commodity Contracts | Location | 2013 | 2012 | 2011 | |||||||||||||
Loss Recognized in OCI on Derivative Instruments (Effective Portion) | OCI — derivative instruments | $ | (353 | ) | $ | (37,663 | ) | $ | (94,660 | ) | |||||||
Loss Reclassified from Accumulated OCI into Income (Effective Portion Realized) (a) | Fuel and purchased power (b) | (44,219 | ) | (99,007 | ) | (117,189 | ) | ||||||||||
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | Fuel and purchased power (b) | — | 117 | (211 | ) | ||||||||||||
(a) During the years ended December 31, 2013, 2012, and 2011, we had zero, $1.8 million, and zero losses reclassified from accumulated OCI to earnings related to discontinued cash flow hedges. | |||||||||||||||||
(b) Amounts are before the effect of PSA deferrals. | |||||||||||||||||
Gains and losses from derivative instruments not designated as accounting hedges instruments | ' | ||||||||||||||||
The following table provides information about gains and losses from derivative instruments not designated as accounting hedging instruments during the years ended December 31, 2013, 2012 and 2011 (dollars in thousands): | |||||||||||||||||
Year Ended | |||||||||||||||||
Financial Statement | December 31, | ||||||||||||||||
Commodity Contracts | Location | 2013 | 2012 | 2011 | |||||||||||||
Net Gain (Loss) Recognized in Income | Operating revenues (a) | $ | 289 | $ | 103 | $ | (27 | ) | |||||||||
Net Loss Recognized in Income | Fuel and purchased power (a) | (10,449 | ) | (2,747 | ) | (52,113 | ) | ||||||||||
Total | $ | (10,160 | ) | $ | (2,644 | ) | $ | (52,140 | ) | ||||||||
(a) Amounts are before the effect of PSA deferrals. | |||||||||||||||||
Schedule of the entity's fair value of risk management activities reported on a gross basis and the impacts of offsetting | ' | ||||||||||||||||
As of December 31, 2013: | Gross | Amounts | Net | Other | Amount | ||||||||||||
(dollars in thousands) | Recognized | Offset | Recognized | (c) | Reported on | ||||||||||||
Derivatives | (b) | Derivatives | Balance Sheet | ||||||||||||||
(a) | |||||||||||||||||
Current Assets | $ | 24,587 | $ | (7,425 | ) | $ | 17,162 | $ | 7 | $ | 17,169 | ||||||
Investments and Other Assets | 25,364 | (1,549 | ) | 23,815 | — | 23,815 | |||||||||||
Total Assets | 49,951 | (8,974 | ) | 40,977 | 7 | 40,984 | |||||||||||
Current Liabilities | (50,540 | ) | 26,166 | (24,374 | ) | (7,518 | ) | (31,892 | ) | ||||||||
Deferred Credits and Other | (72,123 | ) | 1,808 | (70,315 | ) | — | (70,315 | ) | |||||||||
Total Liabilities | (122,663 | ) | 27,974 | (94,689 | ) | (7,518 | ) | (102,207 | ) | ||||||||
Total | $ | (72,712 | ) | $ | 19,000 | $ | (53,712 | ) | $ | (7,511 | ) | $ | (61,223 | ) | |||
(a) All of our gross recognized derivative instruments were subject to master netting arrangements. | |||||||||||||||||
(b) Includes cash collateral provided to counterparties of $19,000. | |||||||||||||||||
(c) Represents cash collateral and margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $7,518, and cash margin provided to counterparties of $7. | |||||||||||||||||
As of December 31, 2012: | Gross | Amounts | Net | Other | Amount | ||||||||||||
(dollars in thousands) | Recognized | Offset | Recognized | (c) | Reported on | ||||||||||||
Derivatives | (b) | Derivatives | Balance Sheet | ||||||||||||||
(a) | |||||||||||||||||
Current Assets | $ | 42,495 | $ | (17,797 | ) | $ | 24,698 | $ | 1,001 | $ | 25,699 | ||||||
Investments and Other Assets | 41,563 | (5,672 | ) | 35,891 | — | 35,891 | |||||||||||
Total Assets | 84,058 | (23,469 | ) | 60,589 | 1,001 | 61,590 | |||||||||||
Current Liabilities | (105,324 | ) | 57,046 | (48,278 | ) | (25,463 | ) | (73,741 | ) | ||||||||
Deferred Credits and Other | (100,986 | ) | 15,722 | (85,264 | ) | — | (85,264 | ) | |||||||||
Total Liabilities | (206,310 | ) | 72,768 | (133,542 | ) | (25,463 | ) | (159,005 | ) | ||||||||
Total | $ | (122,252 | ) | $ | 49,299 | $ | (72,953 | ) | $ | (24,462 | ) | $ | (97,415 | ) | |||
(a) All of our gross recognized derivative instruments were subject to master netting arrangements. | |||||||||||||||||
(b) Includes cash collateral provided to counterparties of $49,299. | |||||||||||||||||
(c) Represents cash collateral relating to non-derivative instruments or derivatives qualifying for scope exceptions. Includes cash collateral provided to counterparties of $1,001, and cash collateral received from counterparties of $25,463. This amount is not subject to offsetting. | |||||||||||||||||
Information about derivative instruments that have credit-risk-related contingent features | ' | ||||||||||||||||
The following table provides information about our derivative instruments that have credit-risk-related contingent features at December 31, 2013 (dollars in millions): | |||||||||||||||||
December 31, | |||||||||||||||||
2013 | |||||||||||||||||
Aggregate Fair Value of Derivative Instruments in a Net Liability Position | $ | 123 | |||||||||||||||
Cash Collateral Posted | 19 | ||||||||||||||||
Additional Cash Collateral in the Event Credit-Risk Related Contingent Features were Fully Triggered (a) | 66 | ||||||||||||||||
(a) This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above. | |||||||||||||||||
Other_Income_and_Other_Expense1
Other Income and Other Expense (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Other Income and Other Expense | ' | ||||||||||
Detail of other income and other expense | ' | ||||||||||
The following table provides detail of other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,629 | $ | 1,239 | $ | 1,850 | |||||
Investment gains — net | — | — | 1,165 | ||||||||
Miscellaneous | 75 | 367 | 96 | ||||||||
Total other income | $ | 1,704 | $ | 1,606 | $ | 3,111 | |||||
Other expense: | |||||||||||
Non-operating costs | $ | (8,207 | ) | $ | (7,777 | ) | $ | (7,037 | ) | ||
Investment loss — net | (3,711 | ) | (2,453 | ) | — | ||||||
Miscellaneous | (4,106 | ) | (9,612 | ) | (3,414 | ) | |||||
Total other expense | $ | (16,024 | ) | $ | (19,842 | ) | $ | (10,451 | ) | ||
Palo_Verde_Sale_Leaseback_Vari1
Palo Verde Sale Leaseback Variable Interest Entities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Palo Verde Sale Leaseback Variable Interest Entities | ' | |||||||
Amounts relating to the VIEs included in Consolidated Balance Sheets | ' | |||||||
Our Consolidated Balance Sheets at December 31, 2013 and December 31, 2012 include the following amounts relating to the VIEs (in millions): | ||||||||
December 31, | December 31, | |||||||
2013 | 2012 | |||||||
Palo Verde sale leaseback property plant and equipment, net of accumulated depreciation | $ | 125 | $ | 129 | ||||
Current maturities of long-term debt | 26 | 27 | ||||||
Long-term debt excluding current maturities | 13 | 39 | ||||||
Equity-Noncontrolling interests | 146 | 129 | ||||||
Nuclear_Decommissioning_Trusts1
Nuclear Decommissioning Trusts (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Nuclear Decommissioning Trusts | ' | ||||||||||
Fair value of APS's nuclear decommissioning trust fund assets | ' | ||||||||||
The following table includes the unrealized gains and losses based on the original cost of the investment and summarizes the fair value of APS’s nuclear decommissioning trust fund assets at December 31, 2013 and December 31, 2012 (dollars in millions): | |||||||||||
Fair Value | Total | Total | |||||||||
Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||
December 31, 2013 | |||||||||||
Equity securities | $ | 272 | $ | 129 | $ | — | |||||
Fixed income securities | 373 | 11 | (6 | ) | |||||||
Net payables (a) | (3 | ) | — | — | |||||||
Total | $ | 642 | $ | 140 | $ | (6 | ) | ||||
Fair Value | Total | Total | |||||||||
Unrealized | Unrealized | ||||||||||
Gains | Losses | ||||||||||
December 31, 2012 | |||||||||||
Equity securities | $ | 204 | $ | 67 | $ | — | |||||
Fixed income securities | 371 | 24 | — | ||||||||
Net payables (a) | (4 | ) | — | — | |||||||
Total | $ | 571 | $ | 91 | $ | — | |||||
(a) Net payables relate to pending purchases and sales of securities. | |||||||||||
Realized gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds | ' | ||||||||||
The following table sets forth approximate gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds (dollars in millions): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Realized gains | $ | 6 | $ | 7 | $ | 8 | |||||
Realized losses | (7 | ) | (4 | ) | (5 | ) | |||||
Proceeds from the sale of securities (a) | 446 | 418 | 498 | ||||||||
(a) Proceeds are reinvested in the trust. | |||||||||||
Fair value of fixed income securities, summarized by contractual maturities | ' | ||||||||||
The fair value of fixed income securities, summarized by contractual maturities, at December 31, 2013 is as follows (dollars in millions): | |||||||||||
Fair Value | |||||||||||
Less than one year | $ | 9 | |||||||||
1 year – 5 years | 109 | ||||||||||
5 years – 10 years | 108 | ||||||||||
Greater than 10 years | 147 | ||||||||||
Total | $ | 373 | |||||||||
Changes_in_Accumulated_Other_C1
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||
Schedule of changes in accumulated other comprehensive loss including reclassification adjustments, by component | ' | ||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (64,416 | ) | $ | (114,008 | ) | ||
OCI (loss) before reclassifications | (213 | ) | 5,594 | 5,381 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,827 | (b) | 30,574 | ||||||
Net current period OCI | 26,534 | 9,421 | 35,955 | ||||||||
Ending balance | $ | (23,058 | ) | $ | (54,995 | ) | $ | (78,053 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Balance Sheets | ' | ' | ' |
Long-term debt less current maturities | $2,796,465 | $3,199,088 | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Deferred income taxes | 249,296 | 187,023 | 117,952 |
Deferred investment tax credit | 52,542 | 41,579 | 58,240 |
Income tax receivable | -133,094 | -4,043 | 3,983 |
Accrued taxes | 6,059 | 12,736 | 8,085 |
As previously reported | ' | ' | ' |
Balance Sheets | ' | ' | ' |
Long-term debt less current maturities | ' | 3,160,219 | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Deferred income taxes | ' | 228,602 | 176,192 |
Accrued taxes and income tax receivable | ' | 8,693 | 12,068 |
As previously reported | Palo Verde Sale Leaseback | ' | ' | ' |
Balance Sheets | ' | ' | ' |
Long-term debt less current maturities | ' | 38,869 | ' |
Reclassifications to conform to current year presentation | ' | ' | ' |
Balance Sheets | ' | ' | ' |
Long-term debt less current maturities | ' | 38,869 | ' |
Cash Flows from Operating Activities | ' | ' | ' |
Deferred income taxes | ' | -41,579 | -58,240 |
Deferred investment tax credit | ' | 41,579 | 58,240 |
Accrued taxes and income tax receivable | ' | -8,693 | -12,068 |
Income tax receivable | ' | -4,043 | 3,983 |
Accrued taxes | ' | 12,736 | 8,085 |
Reclassifications to conform to current year presentation | Palo Verde Sale Leaseback | ' | ' | ' |
Balance Sheets | ' | ' | ' |
Long-term debt less current maturities | ' | ($38,869) | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | 36 Months Ended | 12 Months Ended | 36 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 1986 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | Minimum | Maximum | Maximum | Fossil plant | Nuclear plant | Other generation | Transmission | Distribution | Other: | ||||
item | item | item | |||||||||||||||
Approximate remaining average useful lives of utility property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Average useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '18 years | '26 years | '26 years | '37 years | '34 years | '7 years |
Extension period of operating licenses for each of the three Palo Verde units | ' | ' | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of VIE lessor trusts | ' | ' | ' | 3 | ' | ' | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Depreciation rates (as a percent) | 3.00% | 2.71% | 2.98% | ' | ' | ' | ' | ' | 0.45% | ' | 12.08% | ' | ' | ' | ' | ' | ' |
Allowance for Funds Used During Construction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Composite rate used to calculate AFUDC (as a percent) | 8.56% | 8.60% | 10.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nuclear Fuel | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Charges for the permanent disposal of spent nuclear fuel (in dollars per kWh) | ' | ' | ' | 0.001 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash paid during the year for: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income taxes, net of refunds | $18,537,000 | $2,543,000 | $10,324,000 | $7,524,000 | $1,196,000 | $25,975,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest, net of amounts capitalized | 184,010,000 | 200,923,000 | 217,789,000 | 180,757,000 | 196,038,000 | 210,995,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant non-cash investing and financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued capital expenditures | 33,184,000 | 26,208,000 | 27,245,000 | 33,184,000 | 26,208,000 | 27,245,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends declared but not paid | 62,528,000 | 59,789,000 | ' | 62,500,000 | 59,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities assumed relating to acquisition of SCE Four Corners' interest (see Note 3) | 145,609,000 | ' | ' | 145,609,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization expense | 53,000,000 | 50,000,000 | 47,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amortization expense on existing intangible assets over the next five years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | 47,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 38,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 29,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | $7,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining amortization period for intangible assets | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage for classification as cost method investments by El Dorado | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' |
Regulatory_Matters_Details
Regulatory Matters (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 03, 2013 | Jan. 31, 2012 | Jun. 30, 2011 | Jan. 06, 2012 | Jan. 31, 2012 | Dec. 30, 2013 | Dec. 31, 2009 | Jun. 30, 2010 | Dec. 30, 2009 | Dec. 31, 2013 | Oct. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 12, 2013 | Dec. 31, 2013 | Mar. 02, 2014 | Dec. 31, 2013 | Jun. 02, 2012 | Jun. 30, 2012 | Apr. 30, 2012 | Jun. 30, 2011 | Dec. 31, 2009 | Jun. 02, 2011 | Jul. 12, 2013 | Feb. 28, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Jun. 01, 2013 | Jun. 30, 2012 | |
APS | APS | APS | APS | Filing with the Arizona Corporation Commission | Filing with the Arizona Corporation Commission | Filing with the Arizona Corporation Commission | Filing with the Arizona Corporation Commission | Filing with the Arizona Corporation Commission | 2008 General Retail Rate Case On-Going Impacts | 2008 General Retail Rate Case On-Going Impacts | 2008 General Retail Rate Case On-Going Impacts | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | Cost Recovery Mechanisms | ||||
ACC | APS | APS | APS | APS | APS | APS | APS | APS | Power Supply Adjustor (PSA) | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | |||||||
RES implementation plan covering 2014-2018 timeframe | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | 2013 DSMAC | 2013 DSMAC | Power Supply Adjustor (PSA) | Power Supply Adjustor (PSA) | Lost Fixed Cost Recovery Mechanism | Lost Fixed Cost Recovery Mechanism | Lost Fixed Cost Recovery Mechanism | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | ACC | FERC | FERC | ||||||||
Retail rate case filing | Retail rate case filing | Retail rate case filing | Retail rate case filing | Residential customers rate case filing | 2008 General retail rate case | 2008 General retail rate case | Maximum | Subsequent event | RES | 2013 DSMAC | 2012 DSMAC | 2012 DSMAC | 2012 DSMAC | 2012 DSMAC | 2012 DSMAC | RES implementation plan covering 2014-2018 timeframe | Power Supply Adjustor (PSA) | Power Supply Adjustor (PSA) | Power Supply Adjustor (PSA) | Power Supply Adjustor (PSA) | Transmission Rates, Transmission Cost Adjustor and Other Transmission Matters | Transmission Rates, Transmission Cost Adjustor and Other Transmission Matters | |||||||||||||||
Maximum | item | Subsequent event | |||||||||||||||||||||||||||||||||||
Regulatory Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net retail rate increase | ' | ' | ' | ' | ' | ' | ' | ' | $95,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate percentage of increase in the average retail customer bill | ' | ' | ' | ' | ' | ' | ' | ' | 6.60% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approximate percentage of increase in the average retail customer bill under proposed Four Corners rate filing | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement Agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net change in base rates | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-fuel base rate increase | ' | ' | ' | ' | ' | ' | ' | 116,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fuel-related base rate decrease | ' | ' | ' | ' | ' | ' | ' | 153,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current base fuel rate (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | 0.03757 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Approved base fuel rate (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | 0.03207 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated amount of transfer of cost recovery for certain renewable energy projects from the RES surcharge to base rates | ' | ' | ' | ' | ' | ' | ' | 36,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized return on common equity (as a percent) | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of debt in capital structure | ' | ' | ' | ' | ' | ' | ' | 46.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common equity in capital structure | ' | ' | ' | ' | ' | ' | ' | 53.90% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral of property taxes in 2012, if Arizona property tax rates increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral of property taxes in 2013, if Arizona property tax rates increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral of property taxes for 2014 and subsequent years, if Arizona property tax rates increase (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferral of property taxes in all years, if Arizona property tax rates decrease (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Annual cost recovery due to modifications to the Environmental Improvement Surcharge | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Elimination of the sharing provision of fuel and purchased power costs | ' | ' | ' | ' | ' | ' | ' | 9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period to process the subsequent rate cases | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACC staff sufficiency findings, general period of time | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2008 General Retail Rate Case on-going impacts | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of other parties to the settlement agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum amount of reduction of average annual operational expenses from 2010 through 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorization and requirements of equity infusions into APS beginning June 1, 2009 through December 31, 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 700,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity infusions into APS | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 253,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Change in regulatory asset | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Plan term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of proposed budget | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,900,000 | 87,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,000,000 | ' | ' | ' | ' | ' | ' |
Percentage of cumulative energy savings for prior year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' |
Percentage of annual energy savings to meet energy efficiency goal for 2011 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | ' | ' | ' | ' | ' | ' | ' |
Period of energy savings goal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Demand-side management adjustor charge (DSMAC) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period beginning March 1, 2012, over which the costs will be recovered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs already being recovered in general rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of recovery of demand-side management adjustor charge included in costs already been recovered | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cumulative energy savings for current year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 73,000,000 | 28,000,000 | ' | ' | ' |
Deferred fuel and purchased power costs-current period | -21,678,000 | -71,573,000 | -69,166,000 | -21,678,000 | -71,573,000 | -69,166,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -21,000,000 | -72,000,000 | ' | ' | ' |
Amounts (charged) credited to customers | -31,190,000 | 116,716,000 | 155,157,000 | -31,190,000 | 116,716,000 | 155,157,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -31,000,000 | 117,000,000 | ' | ' | ' |
Ending balance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 21,000,000 | 73,000,000 | ' | ' | ' |
Percentage of sale of distributed energy system's output at a market-based price for installing new rooftop solar system to all new residential customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Charge on future customers who install rooftop solar panels (in dollars per kWh) | ' | ' | ' | ' | ' | ' | 0.7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated monthly collection due to charge on future customers who install rooftop solar panels | ' | ' | ' | ' | ' | ' | 4.9 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
PSA rate (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.001557 | ' | ' |
PSA rate for prior year (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.001329 | ' | ' | ' | ' | ' |
Increase or decrease in PSA charge (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.000228 | 0.004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forward component of increase in PSA (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.001277 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Historical component of increase in PSA (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00028 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in annual wholesale transmission rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 26,000,000 | 16,000,000 |
Fixed costs recoverable per residential power lost (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.031 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed costs recoverable per non-residential power lost (in dollars per kWh) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.023 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of adjustment approved representing prorated sales losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,100,000 | ' | $25,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Regulatory_Matters_Details_2
Regulatory Matters (Details 2) (Four Corners, SCE, USD $) | Dec. 31, 2013 | Dec. 30, 2013 |
In Millions, unless otherwise specified | APS | |
MW | ||
Acquisition | ' | ' |
Total Entitlement | ' | 970 |
Ownership interest acquired | ' | 48.00% |
Percent Owned | ' | 63.00% |
Purchase price | ' | $182 |
Plant-in-service | ' | 316 |
Acquisition adjustment | ' | 255 |
Decommissioning obligations | ' | 34 |
Mine reclamation obligations | ' | 93 |
Other various liabilities | ' | 18 |
Construction work in progress | ' | 11 |
Deferral balance related to the acquisition of SCE's interest in Units 4 and 5 and the closure of Four Corners Units 1-3 | 37 | ' |
Capacity rights over the Arizona Transmission System assign to third-parties | ' | 1,555 |
Capacity rights related to marketing and trading group for transmission of the additional power received assign to third-parties | ' | 300 |
Net receipt due to negotiation of alternate arrangement | ' | $40 |
Regulatory_Matters_Details_3
Regulatory Matters (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | $97,000,000 | $144,000,000 |
Regulatory assets, non-current | 711,712,000 | 1,099,900,000 |
Pension and other postretirement benefits | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, non-current | 314,000,000 | 780,000,000 |
Income taxes - AFUDC equity | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 4,000,000 | 4,000,000 |
Regulatory assets, non-current | 105,000,000 | 92,000,000 |
Deferred fuel and purchased power - mark-to-market | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 5,000,000 | 19,000,000 |
Regulatory assets, non-current | 29,000,000 | 21,000,000 |
Transmission vegetation management | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 9,000,000 | 9,000,000 |
Regulatory assets, non-current | 14,000,000 | 23,000,000 |
Coal reclamation | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 8,000,000 | 8,000,000 |
Regulatory assets, non-current | 18,000,000 | 24,000,000 |
Palo Verde VIE | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, non-current | 41,000,000 | 38,000,000 |
Deferred compensation | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, non-current | 34,000,000 | 34,000,000 |
Deferred fuel and purchased power | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 21,000,000 | 73,000,000 |
Tax expense of Medicare subsidy | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 2,000,000 | 2,000,000 |
Regulatory assets, non-current | 15,000,000 | 17,000,000 |
Loss on reacquired debt | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 1,000,000 | 2,000,000 |
Regulatory assets, non-current | 17,000,000 | 18,000,000 |
Income taxes - investment tax credit basis adjustment | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 1,000,000 | 1,000,000 |
Regulatory assets, non-current | 39,000,000 | 26,000,000 |
Pension and other postretirement benefits deferral | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 8,000,000 | 8,000,000 |
Regulatory assets, non-current | 4,000,000 | 13,000,000 |
Four Corners cost deferral | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, non-current | 37,000,000 | ' |
Lost fixed cost recovery | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 25,000,000 | 7,000,000 |
Transmission cost adjustor | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 8,000,000 | 10,000,000 |
Regulatory assets, non-current | 2,000,000 | ' |
Retired power plant costs | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 3,000,000 | ' |
Regulatory assets, non-current | 18,000,000 | ' |
Other | ' | ' |
Detail of regulatory assets | ' | ' |
Regulatory assets, current | 2,000,000 | 1,000,000 |
Regulatory assets, non-current | $25,000,000 | $14,000,000 |
Regulatory_Matters_Details_4
Regulatory Matters (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | $99,000,000 | $88,000,000 |
Regulatory liabilities, non-current | 801,297,000 | 759,201,000 |
Removal costs | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 28,000,000 | 27,000,000 |
Regulatory liabilities, non-current | 303,000,000 | 321,000,000 |
Asset retirement obligations | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, non-current | 266,000,000 | 256,000,000 |
Renewable energy standard | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 33,000,000 | 43,000,000 |
Regulatory liabilities, non-current | 15,000,000 | ' |
Income taxes - change in rates | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, non-current | 74,000,000 | 66,000,000 |
Spent nuclear fuel | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 6,000,000 | 10,000,000 |
Regulatory liabilities, non-current | 36,000,000 | 36,000,000 |
Deferred gains on utility property | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 2,000,000 | 2,000,000 |
Regulatory liabilities, non-current | 10,000,000 | 12,000,000 |
Income taxes-deferred investment tax credit | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 3,000,000 | 2,000,000 |
Regulatory liabilities, non-current | 79,000,000 | 52,000,000 |
Demand side management | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, current | 27,000,000 | 4,000,000 |
Other | ' | ' |
Detail of regulatory liabilities | ' | ' |
Regulatory liabilities, non-current | $18,000,000 | $16,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 13, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2009 | Dec. 31, 2013 | |
Maximum | Palo Verde VIE | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | |||||
Maximum | ||||||||||||||
Income Taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term income tax receivables | ' | ' | $70,389,000 | ' | ' | ' | ' | ' | ' | $70,784,000 | ' | ' | $71,000,000 | ' |
Decrease in uncertain tax positions | 67,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,000,000 | ' | ' |
Income tax receivable that will be reclassified from long term to short-term | ' | 137,000,000 | ' | ' | ' | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' |
Anticipated refund reduction amount | ' | -4,000,000 | ' | ' | ' | ' | ' | -4,000,000 | -4,000,000 | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to adoption of regulations | -84,000,000 | ' | ' | ' | ' | ' | -84,000,000 | ' | ' | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to rate changes | ' | -75,000,000 | ' | ' | ' | ' | ' | -2,000,000 | -2,000,000 | ' | ' | ' | ' | ' |
Period over which deferred income tax liability would have been repaid | ' | '20 years | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' |
Income tax expense associates with the VIE's | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized tax benefits at the beginning of the year | ' | 133,422,000 | 136,005,000 | 127,595,000 | ' | ' | ' | ' | 133,241,000 | 135,824,000 | 126,698,000 | ' | ' | ' |
Additions for tax positions of the current year | ' | 3,516,000 | 5,167,000 | 10,915,000 | ' | ' | ' | ' | 3,516,000 | 5,167,000 | 10,915,000 | ' | ' | ' |
Additions for tax positions of prior years | ' | 13,158,000 | ' | ' | ' | ' | ' | ' | 13,158,000 | ' | ' | ' | ' | ' |
Reductions for tax positions of prior years for: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in judgment | ' | -108,099,000 | -7,729,000 | -1,555,000 | ' | ' | ' | ' | -107,918,000 | -7,729,000 | -1,555,000 | ' | ' | ' |
Settlements with taxing authorities | ' | ' | ' | -124,000 | ' | ' | ' | ' | ' | ' | -124,000 | ' | ' | ' |
Lapses of applicable statute of limitations | ' | ' | -21,000 | -826,000 | ' | ' | ' | ' | ' | -21,000 | -110,000,000 | ' | ' | ' |
Total unrecognized tax benefits at the end of the year | ' | 41,997,000 | 133,422,000 | 136,005,000 | ' | ' | ' | 41,997,000 | 41,997,000 | 133,241,000 | 135,824,000 | ' | ' | ' |
Unrecognized tax benefits if recognized, would decrease effective tax rate | ' | 10,000,000 | 10,000,000 | 8,000,000 | ' | ' | ' | 10,000,000 | 10,000,000 | 10,000,000 | 8,000,000 | ' | ' | ' |
Pre-tax interest expense (benefit) related to unrecognized tax benefits | ' | 4,000,000 | 4,000,000 | 3,000,000 | ' | ' | ' | ' | 4,000,000 | 4,000,000 | 3,000,000 | ' | ' | ' |
Accrued liabilities for interest related to unrecognized tax benefits | ' | ' | 13,000,000 | 9,000,000 | 1,000,000 | ' | ' | ' | ' | 13,000,000 | 9,000,000 | ' | ' | 1,000,000 |
Interest income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS | ' | $5,000,000 | ' | ' | ' | ' | ' | $5,000,000 | $5,000,000 | ' | ' | ' | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($81,784) | ($3,493) | ($310) |
State | ' | ' | ' | ' | ' | ' | ' | ' | 10,537 | 8,395 | 15,140 |
Total current | ' | ' | ' | ' | ' | ' | ' | ' | -71,247 | 4,902 | 14,830 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 279,973 | 200,322 | 159,566 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 21,865 | 28,280 | 16,626 |
Total deferred | ' | ' | ' | ' | ' | ' | ' | ' | 301,838 | 228,602 | 176,192 |
Total income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 230,591 | 233,504 | 191,022 |
Less: income tax expense (benefit) on discontinued operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,813 | 7,418 |
Income tax expense - continuing operations | $9,167 | $131,912 | $77,043 | $12,469 | $18,157 | $147,116 | $76,689 | ($4,645) | $230,591 | $237,317 | $183,604 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 13, 2013 | Apr. 04, 2013 | Feb. 17, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ||||||||||||
Comparison of pretax income from continuing operations at the federal income tax rate to income tax expense - continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Federal income tax expense at 35% statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $234,695,000 | $229,709,000 | $188,733,000 | ' | ' | ' | ' | $246,384,000 | $235,027,000 | $194,710,000 |
State income tax net of federal income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 21,387,000 | 23,819,000 | 19,594,000 | ' | ' | ' | ' | 23,970,000 | 25,379,000 | 21,139,000 |
Credits and favorable adjustments related to prior years resolved in current year | ' | ' | ' | ' | ' | ' | ' | ' | -3,356,000 | ' | ' | ' | ' | ' | ' | -3,231,000 | ' | ' |
Medicare Subsidy Part-D | ' | ' | ' | ' | ' | ' | ' | ' | 823,000 | 483,000 | 823,000 | ' | ' | ' | ' | 823,000 | 483,000 | 823,000 |
Allowance for equity funds used during construction | ' | ' | ' | ' | ' | ' | ' | ' | -6,997,000 | -6,158,000 | -6,881,000 | ' | ' | ' | ' | -6,997,000 | -6,158,000 | -6,880,000 |
Palo Verde VIE noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | -11,862,000 | -11,065,000 | -9,636,000 | ' | ' | ' | ' | -11,862,000 | -11,065,000 | -9,633,000 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -4,099,000 | 529,000 | -9,029,000 | ' | ' | ' | ' | -3,992,000 | 730,000 | -7,617,000 |
Income tax expense - continuing operations | 9,167,000 | 131,912,000 | 77,043,000 | 12,469,000 | 18,157,000 | 147,116,000 | 76,689,000 | -4,645,000 | 230,591,000 | 237,317,000 | 183,604,000 | ' | ' | ' | ' | 245,095,000 | 244,396,000 | 192,542,000 |
Net deferred income tax liability recognized on the Consolidated Balance Sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current asset (liability) | 91,152,000 | ' | ' | ' | 152,191,000 | ' | ' | ' | 91,152,000 | 152,191,000 | ' | ' | ' | ' | -2,033,000 | -2,033,000 | 74,420,000 | ' |
Long-term liability | -2,351,882,000 | ' | ' | ' | -2,151,371,000 | ' | ' | ' | -2,351,882,000 | -2,151,371,000 | ' | ' | ' | ' | -2,347,724,000 | -2,347,724,000 | -2,133,976,000 | ' |
Deferred income taxes - net | -2,260,730,000 | ' | ' | ' | -1,999,180,000 | ' | ' | ' | -2,260,730,000 | -1,999,180,000 | ' | ' | ' | ' | -2,349,757,000 | -2,349,757,000 | -2,059,556,000 | ' |
Income Taxes, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Phase-in period of corporate income tax rate reductions beginning in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '4 years | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to adoption of regulations | ' | -84,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -84,000,000 | ' | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to rate changes | ' | ' | ' | ' | ' | ' | ' | ' | ($75,000,000) | ' | ' | ' | ' | ' | ($2,000,000) | ($2,000,000) | ' | ' |
Income_Taxes_Details_4
Income Taxes (Details 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
DEFERRED TAX ASSETS | ' | ' |
Risk management activities | $44,920,000 | $72,243,000 |
Regulatory liabilities: | ' | ' |
Asset retirement obligation and removal costs | 235,959,000 | 238,669,000 |
Unamortized investment tax credits | 82,116,000 | 53,837,000 |
Other | 42,609,000 | 33,764,000 |
Pension and other postretirement liabilities | 198,642,000 | 408,764,000 |
Renewable energy incentives | 65,434,000 | 66,941,000 |
Credit and loss carryforwards | 133,070,000 | 139,022,000 |
Other | 148,492,000 | 68,844,000 |
Total deferred tax assets | 951,242,000 | 1,082,084,000 |
DEFERRED TAX LIABILITIES | ' | ' |
Plant-related | -2,903,730,000 | -2,584,166,000 |
Risk management activities | -16,191,000 | -23,940,000 |
Regulatory assets: | ' | ' |
Allowance for equity funds used during construction | -43,058,000 | -37,899,000 |
Deferred fuel and purchased power | -8,282,000 | -28,858,000 |
Deferred fuel and purchased power - mark-to-market | -13,343,000 | -15,796,000 |
Pension and other postretirement benefits | -129,250,000 | -316,757,000 |
Other | -93,202,000 | -68,170,000 |
Other | -4,916,000 | -5,678,000 |
Total deferred tax liabilities | -3,211,972,000 | -3,081,264,000 |
Deferred income taxes - net | -2,260,730,000 | -1,999,180,000 |
Amount of federal general business credits carryforwards which begin to expire in 2031 | 131,000,000 | ' |
Amount of federal and state loss carryforwards which will begin to expire in 2018 | $2,000,000 | ' |
Lines_of_Credit_and_ShortTerm_2
Lines of Credit and Short-Term Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | $1,200,000,000 | $1,200,000,000 |
Unused Amount | 1,047,000,000 | 1,108,000,000 |
Long term debt | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 847,000,000 | 908,000,000 |
Number of credit facilities | 2 | 2 |
Pinnacle West | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Outstanding amount of debt | 3,340,000,000 | ' |
Pinnacle West | Long term debt | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Outstanding amount of debt | 0 | 0 |
Pinnacle West | Revolving credit facility maturing in 2016 | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 200,000,000 | 200,000,000 |
Unused Amount | 200,000,000 | 200,000,000 |
Commitment Fees (as a percent) | 0.18% | 0.23% |
Maximum borrowing capacity on credit facility upon satisfaction of certain conditions and consent of lenders | 300,000,000 | 300,000,000 |
Pinnacle West | Commercial Paper | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 200,000,000 | 200,000,000 |
Outstanding amount of debt | 0 | 0 |
Pinnacle West | Letters of credit | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Outstanding amount of debt | 0 | 0 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 1,000,000,000 | ' |
Outstanding amount of debt | 3,215,000,000 | ' |
Maximum borrowing capacity on credit facility upon satisfaction of certain conditions and consent of lenders | 700,000,000 | 700,000,000 |
ARIZONA PUBLIC SERVICE COMPANY | ACC | ' | ' |
Debt Provisions | ' | ' |
Percentage of APS's capitalization used in calculation of short-term debt authorization | 7.00% | ' |
Required amount to be used in purchases of natural gas and power which is used in calculation of short-term debt authorization | 500,000,000 | ' |
Long-term debt authorization before increase | 4,200,000,000 | ' |
Long-term debt authorization | 5,100,000,000 | ' |
ARIZONA PUBLIC SERVICE COMPANY | Long term debt | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Maximum commercial paper support available under credit facility | 250,000,000 | 250,000,000 |
ARIZONA PUBLIC SERVICE COMPANY | Revolving credit facility maturing in 2016 | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 500,000,000 | 500,000,000 |
Unused Amount | 347,000,000 | 408,000,000 |
Commitment Fees (as a percent) | 0.13% | 0.18% |
ARIZONA PUBLIC SERVICE COMPANY | Revolving credit facility maturing in 2015 | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | ' | 500,000,000 |
Unused Amount | ' | 500,000,000 |
Commitment Fees (as a percent) | ' | 0.20% |
ARIZONA PUBLIC SERVICE COMPANY | Revolving credit facility maturing in 2018 | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Amount Committed | 500,000,000 | ' |
Unused Amount | 500,000,000 | ' |
Commitment Fees (as a percent) | 0.13% | ' |
ARIZONA PUBLIC SERVICE COMPANY | Commercial Paper | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Outstanding amount of debt | 153,000,000 | 92,000,000 |
ARIZONA PUBLIC SERVICE COMPANY | Letters of credit | ' | ' |
Lines of Credit and Short-Term Borrowings | ' | ' |
Outstanding amount of debt | $0 | $0 |
LongTerm_Debt_and_Liquidity_Ma2
Long-Term Debt and Liquidity Matters (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 22, 2013 | 1-May-13 | Jul. 12, 2013 | Oct. 11, 2013 |
Maximum | Pinnacle West | Pinnacle West | APS | APS | APS | APS | Pollution Control Bonds - Variable | Pollution Control Bonds - Variable | Pollution Control Bonds - Variable | Pollution Control Bonds - Variable | Pollution Control Bonds - Variable | Pollution Control Bonds - Variable | Pollution Control Bonds - Fixed | Pollution Control Bonds - Fixed | Total Pollution Control Bonds | Total Pollution Control Bonds | Senior unsecured notes | Senior unsecured notes | Palo Verde sale leaseback lessor notes | Palo Verde sale leaseback lessor notes | Term loan facility | Term loan facility | 4.50% unsecured senior notes that mature on April 1, 2042 | Pollution Control Revenue Refunding Bonds, 2009 Series C | Pollution Control Revenue Refunding Bonds, 1994 Series A | Pollution Control Revenue Refunding Bonds, 1994 Series C | |||
ACC | ACC | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | APS | Pinnacle West | Pinnacle West | APS | APS | APS | APS | ||||||||
Minimum | Maximum | Maximum | Minimum | Minimum | Subsequent event | ||||||||||||||||||||||||
Long-Term Debt and Liquidity Matters | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt redemption | ' | ' | ' | $3,340,000,000 | ' | $3,215,000,000 | ' | ' | ' | $75,580,000 | $75,580,000 | ' | ' | ' | ' | $426,125,000 | $490,275,000 | $501,705,000 | $565,855,000 | $2,675,000,000 | $2,575,000,000 | ' | ' | ' | ' | ' | $32,000,000 | $33,000,000 | $32,000,000 |
Palo Verde sale leaseback lessor notes long-term debt excluding current maturities | 13,420,000 | 38,869,000 | ' | ' | ' | 13,420,000 | 38,869,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,869,000 | 65,547,000 | ' | ' | ' | ' | ' | ' |
Unamortized discount | ' | ' | ' | ' | ' | -8,732,000 | -9,486,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized premium | ' | ' | ' | ' | ' | 5,047,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 3,337,000,000 | 3,322,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | 125,000,000 | ' | ' | ' | ' |
Long-term debt | ' | ' | ' | 125,000,000 | 125,000,000 | 3,211,889,000 | 3,196,916,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current maturities | ' | ' | ' | ' | ' | -540,424,000 | -122,828,000 | ' | ' | -215,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total long-term debt less current maturities | ' | ' | ' | ' | ' | 2,671,465,000 | 3,074,088,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | 4.50% | 1.75% | ' | ' |
Long-term debt less current maturities | 2,796,465,000 | 3,199,088,000 | ' | 125,000,000 | 125,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rates, low end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | 1.25% | ' | ' | 4.50% | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rates, high end of range (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.00% | 6.00% | ' | ' | 8.75% | 8.75% | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.06% | 0.15% | 0.03% | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | 1.27% | 1.31% | ' | ' | ' | ' |
Estimated fair value of long-term debt, including current maturities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying Amount | ' | ' | ' | 125,000,000 | 125,000,000 | 3,211,889,000 | 3,196,916,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 3,337,000,000 | 3,322,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000,000 | 125,000,000 | ' | ' | ' | ' |
Fair Value | 3,579,000,000 | 3,875,000,000 | ' | 125,000,000 | 125,000,000 | 3,454,000,000 | 3,750,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' |
Debt Provisions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual ratio of consolidated debt to total consolidated capitalization required to be maintained as per the debt covenant (as a percent) | ' | ' | ' | 47.00% | ' | 45.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ratio of consolidated debt to consolidated capitalization (as a percent) | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Required common equity ratio ordered by ACC (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total shareholder equity | 4,194,470,000 | 3,972,806,000 | ' | 4,194,470,000 | 3,972,806,000 | 4,308,884,000 | 4,093,000,000 | 4,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total capitalization | ' | ' | ' | ' | ' | ' | ' | 7,500,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend restrictions, shareholder equity required | ' | ' | ' | ' | ' | ' | ' | $3,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Liquidity_Ma3
Long-Term Debt and Liquidity Matters (Details 2) (USD $) | Dec. 31, 2013 |
ARIZONA PUBLIC SERVICE COMPANY | ' |
Principal payments due on long-term debt | ' |
2014 | $540,000,000 |
2015 | 345,000,000 |
2016 | 358,000,000 |
2018 | 32,000,000 |
Thereafter | 1,940,000,000 |
Total | 3,215,000,000 |
Pinnacle West | ' |
Principal payments due on long-term debt | ' |
2014 | 540,000,000 |
2015 | 470,000,000 |
2016 | 358,000,000 |
2018 | 32,000,000 |
Thereafter | 1,940,000,000 |
Total | $3,340,000,000 |
LongTerm_Debt_and_Liquidity_Ma4
Long-Term Debt and Liquidity Matters (Details 3) (ARIZONA PUBLIC SERVICE COMPANY, Subsequent event, USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jan. 10, 2014 |
item | |
SCE | Four Corners Units 4 and 5 | ' |
Long-Term Debt and Liquidity Matters | ' |
Ownership interest acquired | 48.00% |
Number of tax-exempt indebtedness series re-acquired | 2 |
4.70% unsecured senior notes that mature on January 15, 2044 | ' |
Long-Term Debt and Liquidity Matters | ' |
Interest rate (as a percent) | 4.70% |
Notes issued | 250 |
Common_Stock_and_Treasury_Stoc2
Common Stock and Treasury Stock (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in equity | ' | ' | ' |
Balance | $4,340,460 | $4,102,289 | $3,930,586 |
Balance at the end of the period (in shares) | 110,280,703 | 109,837,957 | ' |
Pinnacle West | ' | ' | ' |
Changes in equity | ' | ' | ' |
Balance | 4,340,460 | 4,102,289 | ' |
Serial preferred stock authorized | 10,000,000 | ' | ' |
Par value (in dollars per share) | $0 | ' | ' |
Preferred stock outstanding | 0 | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Changes in equity | ' | ' | ' |
Balance | 4,454,874 | 4,222,483 | 4,051,406 |
Serial preferred stock authorized | 15,535,000 | ' | ' |
Preferred stock outstanding | 0 | ' | ' |
Par value of type 1 preferred stock authorized (in dollars per share) | $25 | ' | ' |
Par value of type 2 preferred stock authorized (in dollars per share) | $50 | ' | ' |
Par value of type 3 preferred stock authorized (in dollars per share) | $100 | ' | ' |
Common Stock | ' | ' | ' |
Changes in equity | ' | ' | ' |
Balance | 2,466,923 | 2,444,247 | 2,421,372 |
Balance at the beginning of the period (in shares) | 109,837,957 | 109,356,974 | 108,820,067 |
Common stock issuance | 24,635 | 22,676 | 22,875 |
Common stock issuance (in shares) | 442,746 | 480,983 | 536,907 |
Balance | 2,491,558 | 2,466,923 | 2,444,247 |
Balance at the end of the period (in shares) | 110,280,703 | 109,837,957 | 109,356,974 |
Common Stock | ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Changes in equity | ' | ' | ' |
Balance | 178,162 | 178,162 | 178,162 |
Treasury Stock | ' | ' | ' |
Changes in equity | ' | ' | ' |
Balance | -4,211 | -4,717 | -2,239 |
Balance at the beginning of the period (in shares) | -95,192 | -111,161 | -50,410 |
Purchase of treasury stock | -9,727 | -4,607 | -3,720 |
Purchase of treasury stock (in shares) | -174,290 | -89,629 | -88,440 |
Reissuance of treasury stock used for stock compensation | 9,630 | 5,113 | 1,242 |
Reissuance of treasury stock for stock compensation (in shares) | 170,538 | 105,598 | 27,689 |
Balance | ($4,308) | ($4,211) | ($4,717) |
Balance at the end of the period (in shares) | -98,944 | -95,192 | -111,161 |
Retirement_Plans_and_Other_Ben2
Retirement Plans and Other Benefits (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Retirement Plans and Other Benefits | ' | ' | ' | ' |
Amount of pension and other postretirement benefit costs deferred | ' | ' | $14,000,000 | $11,000,000 |
Regulatory asset amortization period | '3 years | ' | ' | ' |
Amortization of regulatory assets | ' | 8,000,000 | 4,000,000 | ' |
Amounts recognized on the Consolidated Balance Sheets | ' | ' | ' | ' |
Noncurrent liability | ' | -513,628,000 | -1,058,755,000 | ' |
Pension Benefits | ' | ' | ' | ' |
Net periodic benefit costs and the portion of these costs charged to expense | ' | ' | ' | ' |
Service cost - benefits earned during the period | ' | 64,195,000 | 63,502,000 | 57,605,000 |
Interest cost on benefit obligation | ' | 112,392,000 | 119,586,000 | 124,727,000 |
Expected return on plan assets | ' | -146,333,000 | -140,979,000 | -133,678,000 |
Amortization of prior service cost (credit) | ' | 1,097,000 | 1,143,000 | 1,400,000 |
Amortization of net actuarial loss | ' | 39,852,000 | 44,250,000 | 25,956,000 |
Net periodic benefit cost | ' | 71,203,000 | 87,502,000 | 76,010,000 |
Portion of cost charged to expense | ' | 38,968,000 | 36,333,000 | 29,312,000 |
Change in Benefit Obligation | ' | ' | ' | ' |
Benefit obligation at the beginning of the period | ' | 2,850,846,000 | 2,699,126,000 | ' |
Service cost | ' | 64,195,000 | 63,502,000 | 57,605,000 |
Interest cost | ' | 112,392,000 | 119,586,000 | 124,727,000 |
Benefit payments | ' | -125,269,000 | -113,632,000 | ' |
Actuarial (gain) loss | ' | -255,634,000 | 82,264,000 | ' |
Benefit obligation at the end of the period | ' | 2,646,530,000 | 2,850,846,000 | 2,699,126,000 |
Change in Plan Assets | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 2,079,181,000 | 1,850,550,000 | ' |
Actual return on plan assets | ' | 150,546,000 | 259,363,000 | ' |
Employer contributions | ' | 140,500,000 | 65,000,000 | 0 |
Benefit payments | ' | -106,106,000 | -95,732,000 | ' |
Balance at the end of the period | ' | 2,264,121,000 | 2,079,181,000 | 1,850,550,000 |
Funded Status at the end of the period | ' | -382,409,000 | -771,665,000 | ' |
Projected benefit obligation and the accumulated benefit obligation for pension plans with an accumulated obligation in excess of plan assets | ' | ' | ' | ' |
Projected benefit obligation | ' | 2,646,530,000 | 2,850,846,000 | ' |
Accumulated benefit obligation | ' | 2,469,889,000 | 2,646,306,000 | ' |
Fair value of plan assets | ' | 2,264,121,000 | 2,079,181,000 | ' |
Amounts recognized on the Consolidated Balance Sheets | ' | ' | ' | ' |
Current liability | ' | -10,860,000 | -19,107,000 | ' |
Noncurrent liability | ' | -371,549,000 | -752,558,000 | ' |
Net amount recognized | ' | -382,409,000 | -771,665,000 | ' |
Other Benefits | ' | ' | ' | ' |
Net periodic benefit costs and the portion of these costs charged to expense | ' | ' | ' | ' |
Service cost - benefits earned during the period | ' | 23,597,000 | 27,163,000 | 21,856,000 |
Interest cost on benefit obligation | ' | 41,536,000 | 46,467,000 | 46,807,000 |
Expected return on plan assets | ' | -45,717,000 | -45,793,000 | -41,536,000 |
Amortization of transition obligation | ' | ' | 452,000 | 452,000 |
Amortization of prior service cost (credit) | ' | -179,000 | -179,000 | -179,000 |
Amortization of net actuarial loss | ' | 11,310,000 | 20,233,000 | 15,015,000 |
Net periodic benefit cost | ' | 30,547,000 | 48,343,000 | 42,415,000 |
Portion of cost charged to expense | ' | 18,469,000 | 19,321,000 | 15,208,000 |
Change in Benefit Obligation | ' | ' | ' | ' |
Benefit obligation at the beginning of the period | ' | 990,418,000 | 1,047,094,000 | ' |
Service cost | ' | 23,597,000 | 27,163,000 | 21,856,000 |
Interest cost | ' | 41,536,000 | 46,467,000 | 46,807,000 |
Benefit payments | ' | -26,675,000 | -26,279,000 | ' |
Actuarial (gain) loss | ' | -138,458,000 | -104,027,000 | ' |
Benefit obligation at the end of the period | ' | 890,418,000 | 990,418,000 | 1,047,094,000 |
Change in Plan Assets | ' | ' | ' | ' |
Balance at the beginning of the period | ' | 684,221,000 | 608,663,000 | ' |
Actual return on plan assets | ' | 76,995,000 | 83,567,000 | ' |
Employer contributions | ' | 14,438,000 | 22,707,000 | 19,000,000 |
Benefit payments | ' | -27,315,000 | -30,716,000 | ' |
Balance at the end of the period | ' | 748,339,000 | 684,221,000 | 608,663,000 |
Funded Status at the end of the period | ' | -142,079,000 | -306,197,000 | ' |
Amounts recognized on the Consolidated Balance Sheets | ' | ' | ' | ' |
Noncurrent liability | ' | -142,079,000 | -306,197,000 | ' |
Net amount recognized | ' | ($142,079,000) | ($306,197,000) | ' |
Retirement_Plans_and_Other_Ben3
Retirement Plans and Other Benefits (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Details related to accumulated other comprehensive loss | ' | ' | ' |
Accumulated other comprehensive loss | $54,995,000 | $64,416,000 | ' |
Weighted-average assumptions used to determine benefit obligations | ' | ' | ' |
Rate of compensation increase (as a percent) | 4.00% | 4.00% | ' |
Initial healthcare cost trend rate (as a percent) | 7.50% | 7.50% | ' |
Ultimate healthcare cost trend rate (as a percent) | 5.00% | 5.00% | 5.00% |
Number of years to ultimate trend rate | '4 years | '4 years | '4 years |
Weighted-average assumptions used to determine net periodic benefit costs | ' | ' | ' |
Rate of compensation increase (as a percent) | 4.00% | 4.00% | 4.00% |
Expected long-term return on plan assets | 7.00% | 7.75% | 7.75% |
Initial healthcare cost trend rate (as a percent) | 7.50% | 7.50% | 8.00% |
Ultimate healthcare cost trend rate (as a percent) | 5.00% | 5.00% | 5.00% |
Number of years to ultimate trend rate | '4 years | '4 years | '4 years |
Pension Benefits | ' | ' | ' |
Details related to accumulated other comprehensive loss | ' | ' | ' |
Net actuarial loss | 344,540,000 | 644,239,000 | ' |
Prior service cost (credit) | 2,072,000 | 3,169,000 | ' |
APS's portion recorded as a regulatory asset | -265,107,000 | -550,471,000 | ' |
Income tax benefit | -32,204,000 | -38,303,000 | ' |
Accumulated other comprehensive loss | 49,301,000 | 58,634,000 | ' |
Estimated amounts that will be amortized from accumulated other comprehensive loss and regulatory assets into net periodic benefit cost in 2014 | ' | ' | ' |
Net actuarial loss | 8,363,000 | ' | ' |
Prior service cost (credit) | 874,000 | ' | ' |
Total amounts estimated to be amortized from accumulated other comprehensive loss and regulatory assets in 2014 | 9,237,000 | ' | ' |
Weighted-average assumptions used to determine benefit obligations | ' | ' | ' |
Discount rate (as a percent) | 4.88% | 4.01% | ' |
Weighted-average assumptions used to determine net periodic benefit costs | ' | ' | ' |
Discount rate (as a percent) | 4.01% | 4.42% | 5.31% |
Expected long-term return on plan assets for next fiscal year (as a percent) | 6.90% | ' | ' |
Other Benefits | ' | ' | ' |
Details related to accumulated other comprehensive loss | ' | ' | ' |
Net actuarial loss | 57,816,000 | 238,862,000 | ' |
Prior service cost (credit) | -296,000 | -475,000 | ' |
APS's portion recorded as a regulatory asset | -49,298,000 | -230,020,000 | ' |
Income tax benefit | -2,528,000 | -2,585,000 | ' |
Accumulated other comprehensive loss | 5,694,000 | 5,782,000 | ' |
Estimated amounts that will be amortized from accumulated other comprehensive loss and regulatory assets into net periodic benefit cost in 2014 | ' | ' | ' |
Prior service cost (credit) | -179,000 | ' | ' |
Total amounts estimated to be amortized from accumulated other comprehensive loss and regulatory assets in 2014 | -179,000 | ' | ' |
Weighted-average assumptions used to determine benefit obligations | ' | ' | ' |
Discount rate (as a percent) | 5.10% | 4.20% | ' |
Weighted-average assumptions used to determine net periodic benefit costs | ' | ' | ' |
Discount rate (as a percent) | 4.20% | 4.59% | 5.49% |
Expected long-term return on plan assets for next fiscal year (as a percent) | 7.10% | ' | ' |
Effects of one percentage point change in the assumed initial and ultimate health care cost trend rates | ' | ' | ' |
Effect of 1% increase on other postretirement benefits expense, after consideration of amounts capitalized or billed to electric plant participants | 13,000,000 | ' | ' |
Effect of 1% decrease on other postretirement benefits expense, after consideration of amounts capitalized or billed to electric plant participants | -10,000,000 | ' | ' |
Effect of 1% increase on service and interest cost components of net periodic other postretirement benefit costs | 14,000,000 | ' | ' |
Effect of 1% decrease on service and interest cost components of net periodic other postretirement benefit costs | -11,000,000 | ' | ' |
Effect of 1% increase on the accumulated other postretirement benefit obligation | 149,000,000 | ' | ' |
Effect of 1% decrease on the accumulated other postretirement benefit obligation | ($120,000,000) | ' | ' |
Retirement_Plans_and_Other_Ben4
Retirement Plans and Other Benefits (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Pension Benefits | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | $2,264,121 | $2,079,181 | $1,850,550 |
Pension Benefits | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 2,264,121 | 2,079,181 | ' |
Pension Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 490,559 | 807,879 | ' |
Pension Benefits | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 1,764,652 | 1,268,946 | ' |
Pension Benefits | Significant Unobservable Inputs (Level 3) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 8,660 | 2,419 | ' |
Pension Benefits | Counterparty Netting and Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 250 | -63 | ' |
Pension Benefits | Fixed income securities. | ' | ' | ' |
Retirement Plans and Other Benefits | ' | ' | ' |
Actual asset allocation (as a percent) | 55.00% | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 58.00% | ' | ' |
Target allocation, minimum (as a percent) | 55.00% | ' | ' |
Target allocation, maximum (as a percent) | 61.00% | ' | ' |
Pension Benefits | Return-generating assets | ' | ' | ' |
Retirement Plans and Other Benefits | ' | ' | ' |
Actual asset allocation (as a percent) | 45.00% | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 42.00% | ' | ' |
Target allocation, minimum (as a percent) | 45.00% | ' | ' |
Target allocation, maximum (as a percent) | 39.00% | ' | ' |
Pension Benefits | Cash and cash equivalent funds | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 504 | 579 | ' |
Pension Benefits | Cash and cash equivalent funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 504 | 579 | ' |
Pension Benefits | Corporate debt | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 898,621 | 607,749 | ' |
Pension Benefits | Corporate debt | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 898,621 | 607,749 | ' |
Pension Benefits | U.S. Treasury | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 231,590 | 232,161 | ' |
Pension Benefits | U.S. Treasury | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 231,590 | 232,161 | ' |
Pension Benefits | Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 84,011 | 67,992 | ' |
Pension Benefits | Other | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 84,011 | 67,992 | ' |
Pension Benefits | Developed equities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 22.00% | ' | ' |
Pension Benefits | Emerging equities | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 6.00% | ' | ' |
Pension Benefits | Alternative investments | ' | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 14.00% | ' | ' |
Pension Benefits | U.S. Companies, Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 239,036 | 531,291 | ' |
Pension Benefits | U.S. Companies, Equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 239,036 | 531,291 | ' |
Pension Benefits | International Companies, Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 19,429 | 43,848 | ' |
Pension Benefits | International Companies, Equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 19,429 | 43,848 | ' |
Pension Benefits | U.S. Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 116,150 | 176,694 | ' |
Pension Benefits | U.S. Equities | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 116,150 | 176,694 | ' |
Pension Benefits | International Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 367,551 | 271,735 | ' |
Pension Benefits | International Equities | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 367,551 | 271,735 | ' |
Pension Benefits | FIXED INCOME | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 137,520 | ' | ' |
Pension Benefits | FIXED INCOME | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 137,520 | ' | ' |
Pension Benefits | Real estate | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 119,739 | 117,854 | ' |
Pension Benefits | Real estate | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 119,739 | 117,854 | ' |
Pension Benefits | Short-term investments and other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 49,970 | 29,278 | ' |
Pension Benefits | Short-term investments and other | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 41,060 | 26,922 | ' |
Pension Benefits | Short-term investments and other | Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 8,660 | 2,419 | ' |
Pension Benefits | Short-term investments and other | Significant Unobservable Inputs (Level 3) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 8,660 | 2,419 | ' |
Pension Benefits | Short-term investments and other | Counterparty Netting and Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 250 | -63 | ' |
Other Benefits | ' | ' | ' |
Retirement Plans and Other Benefits | ' | ' | ' |
Actual asset allocation (as a percent) | 62.00% | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 75.00% | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 748,339 | 684,221 | 608,663 |
Other Benefits | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 748,339 | 684,221 | ' |
Other Benefits | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 371,777 | 333,146 | ' |
Other Benefits | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 374,132 | 350,029 | ' |
Other Benefits | Counterparty Netting and Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 2,430 | 1,046 | ' |
Other Benefits | Fixed income securities. | ' | ' | ' |
Retirement Plans and Other Benefits | ' | ' | ' |
Actual asset allocation (as a percent) | 38.00% | ' | ' |
Target asset allocation | ' | ' | ' |
Target allocation (as a percent) | 25.00% | ' | ' |
Other Benefits | Cash and cash equivalent funds | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | ' | 60 | ' |
Other Benefits | Cash and cash equivalent funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | ' | 60 | ' |
Other Benefits | Corporate debt | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 153,888 | 163,306 | ' |
Other Benefits | Corporate debt | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 153,888 | 163,306 | ' |
Other Benefits | U.S. Treasury | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 98,704 | 112,558 | ' |
Other Benefits | U.S. Treasury | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 98,704 | 112,558 | ' |
Other Benefits | Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 27,936 | 33,998 | ' |
Other Benefits | Other | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 27,936 | 33,998 | ' |
Other Benefits | U.S. Companies, Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 252,181 | 205,714 | ' |
Other Benefits | U.S. Companies, Equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 252,181 | 205,714 | ' |
Other Benefits | International Companies, Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 20,892 | 14,412 | ' |
Other Benefits | International Companies, Equities | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 20,892 | 14,412 | ' |
Other Benefits | U.S. Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 80,751 | 60,038 | ' |
Other Benefits | U.S. Equities | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 80,751 | 60,038 | ' |
Other Benefits | International Equities | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 92,382 | 76,969 | ' |
Other Benefits | International Equities | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 92,382 | 76,969 | ' |
Other Benefits | Real estate | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 10,761 | 9,378 | ' |
Other Benefits | Real estate | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 10,761 | 9,378 | ' |
Other Benefits | Short-term investments and other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 10,844 | 7,788 | ' |
Other Benefits | Short-term investments and other | Significant Other Observable Inputs (Level 2) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 8,414 | 6,340 | ' |
Other Benefits | Short-term investments and other | Counterparty Netting and Other | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | 2,430 | 1,046 | ' |
Other Benefits | Short-term investments | Quoted Prices in Active Markets for Identical Assets (Level 1) | Pinnacle West | ' | ' | ' |
Fair value of Pinnacle West's pension plan and other postretirement benefit plan assets, by asset category | ' | ' | ' |
Fair value of plan assets | ' | $402 | ' |
Retirement_Plans_and_Other_Ben5
Retirement Plans and Other Benefits (Details 4) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pinnacle West | Pinnacle West | Pinnacle West | ARIZONA PUBLIC SERVICE COMPANY | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Pension Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | Other Benefits | |
Subsequent event | Expected contributions | Expected contributions | Pinnacle West | Pinnacle West | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Short-term investments and other | Short-term investments and other | Short-term investments and other | Short-term investments and other | Short-term investments and other | Short-term investments and other | Pinnacle West | Pinnacle West | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | Short-term investments and other | Short-term investments and other | |||||||||||
Maximum | Pinnacle West | Pinnacle West | Pinnacle West | Pinnacle West | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Pinnacle West | Pinnacle West | |||||||||||||||||||||||
Pinnacle West | Pinnacle West | ||||||||||||||||||||||||||||||||
Changes in fair value for assets that are measured at fair value on a recurring basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period | ' | ' | ' | ' | $2,079,181,000 | $1,850,550,000 | ' | ' | ' | ' | $2,264,121,000 | $2,079,181,000 | ' | ' | ' | $8,660,000 | $2,419,000 | $49,970,000 | $29,278,000 | $2,419,000 | ' | $8,660,000 | $2,419,000 | $684,221,000 | $608,663,000 | ' | $748,339,000 | $684,221,000 | ' | ' | ' | $10,844,000 | $7,788,000 |
Actual return on assets still held | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -498,000 | -668,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchases, sales, and settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,739,000 | 3,087,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period | ' | ' | ' | ' | 2,264,121,000 | 2,079,181,000 | 1,850,550,000 | ' | ' | ' | 2,264,121,000 | 2,079,181,000 | ' | ' | ' | 8,660,000 | 2,419,000 | 49,970,000 | 29,278,000 | 8,660,000 | 2,419,000 | 8,660,000 | 2,419,000 | 748,339,000 | 684,221,000 | 608,663,000 | 748,339,000 | 684,221,000 | ' | ' | ' | 10,844,000 | 7,788,000 |
Contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employer's contributions under the plan | ' | ' | ' | ' | 140,500,000 | 65,000,000 | 0 | 70,000,000 | ' | ' | ' | ' | 140,000,000 | 64,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 14,438,000 | 22,707,000 | 19,000,000 | ' | ' | 14,000,000 | 22,000,000 | 19,000,000 | ' | ' |
Minimum Contributions under MAP-21 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum contributions under MAP-21 | ' | ' | ' | ' | 141,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | 19,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | 122,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected employer's contributions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected employer's contributions | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Future Benefit Payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | ' | ' | 129,159,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,664,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | ' | ' | ' | 143,452,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,804,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | ' | ' | ' | 149,105,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,933,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | ' | ' | ' | 162,678,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,966,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | ' | ' | ' | 169,064,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,972,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Years 2019-2023 | ' | ' | ' | ' | 972,826,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 245,366,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee Savings Plan Benefits | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
APS's employees share of total cost of the plans (as a percent) | ' | ' | ' | 99.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expenses recorded for the defined contribution savings plan | $9,000,000 | $8,000,000 | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 1986 |
item | item | item | |||
Leases | ' | ' | ' | ' | ' |
Lease expense | $18 | $19 | $21 | ' | ' |
Estimated future minimum lease payments for operating leases, excluding purchased power agreements | ' | ' | ' | ' | ' |
2014 | 20 | ' | ' | ' | ' |
2015 | 17 | ' | ' | ' | ' |
2016 | 6 | ' | ' | ' | ' |
2017 | 5 | ' | ' | ' | ' |
2018 | 4 | ' | ' | ' | ' |
Thereafter | 59 | ' | ' | ' | ' |
Total future lease commitments | 111 | ' | ' | ' | ' |
APS | ' | ' | ' | ' | ' |
Leases | ' | ' | ' | ' | ' |
Lease expense | 15 | 16 | 18 | ' | ' |
Estimated future minimum lease payments for operating leases, excluding purchased power agreements | ' | ' | ' | ' | ' |
2014 | 17 | ' | ' | ' | ' |
2015 | 14 | ' | ' | ' | ' |
2016 | 5 | ' | ' | ' | ' |
2017 | 5 | ' | ' | ' | ' |
2018 | 4 | ' | ' | ' | ' |
Thereafter | 59 | ' | ' | ' | ' |
Total future lease commitments | $104 | ' | ' | ' | ' |
Number of VIE lessor trusts | 3 | ' | ' | 3 | 3 |
Palo Verde Lessor Trusts | ' | ' | ' | ' | ' |
Estimated future minimum lease payments for operating leases, excluding purchased power agreements | ' | ' | ' | ' | ' |
Number of VIE lessor trusts | ' | ' | ' | ' | 3 |
JointlyOwned_Facilities_Detail
Jointly-Owned Facilities (Details) (ARIZONA PUBLIC SERVICE COMPANY, USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Palo Verde Units 1 and 3 | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 29.10% |
Plant in Service | $1,701,844 |
Accumulated Depreciation | 1,027,523 |
Construction Work in Progress | 22,400 |
Palo Verde Unit 2 | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 16.80% |
Plant in Service | 543,972 |
Accumulated Depreciation | 338,918 |
Construction Work in Progress | 10,095 |
Palo Verde Common | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 28.00% |
Plant in Service | 538,818 |
Accumulated Depreciation | 219,801 |
Construction Work in Progress | 81,599 |
Palo Verde Sale Leaseback | ' |
Interests in jointly-owned facilities | ' |
Plant in Service | 351,050 |
Accumulated Depreciation | 225,925 |
Four Corners Units 4, 5 and Common | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 63.00% |
Plant in Service | 809,946 |
Accumulated Depreciation | 608,194 |
Construction Work in Progress | 14,434 |
Navajo Generating Station Units 1, 2 and 3 | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 14.00% |
Plant in Service | 270,448 |
Accumulated Depreciation | 150,501 |
Construction Work in Progress | 2,864 |
Cholla common facilities | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 63.30% |
Plant in Service | 148,299 |
Accumulated Depreciation | 47,851 |
Construction Work in Progress | 7,159 |
ANPP 500kV System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 34.20% |
Plant in Service | 98,145 |
Accumulated Depreciation | 32,350 |
Construction Work in Progress | 1,095 |
Navajo Southern System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 22.20% |
Plant in Service | 58,702 |
Accumulated Depreciation | 16,937 |
Construction Work in Progress | 518 |
Palo Verde - Yuma 500kV System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 18.00% |
Plant in Service | 12,115 |
Accumulated Depreciation | 4,656 |
Construction Work in Progress | 11,786 |
Four Corners Switchyards | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 48.10% |
Plant in Service | 33,460 |
Accumulated Depreciation | 9,052 |
Construction Work in Progress | 185 |
Phoenix - Mead System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 17.10% |
Plant in Service | 39,758 |
Accumulated Depreciation | 12,140 |
Palo Verde - Estrella 500kV System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 50.00% |
Plant in Service | 89,571 |
Accumulated Depreciation | 14,883 |
Construction Work in Progress | 21 |
Morgan-Pinnacle Peak System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 64.50% |
Plant in Service | 130,132 |
Accumulated Depreciation | 6,651 |
Construction Work in Progress | 1,042 |
Round Valley System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 50.00% |
Plant in Service | 488 |
Accumulated Depreciation | 268 |
Palo Verde - Morgan System | ' |
Interests in jointly-owned facilities | ' |
Percent Owned | 90.00% |
Construction Work in Progress | $36,601 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (ARIZONA PUBLIC SERVICE COMPANY, USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 02, 2013 | Dec. 31, 2013 | Dec. 31, 2008 | Dec. 31, 1986 | |
item | item | item | ||
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' | ' |
Palo Verde Nuclear Generating Station | ' | ' | ' | ' |
Estimated share of the costs related to on-site interim storage of spent nuclear fuel | ' | $122,000,000 | ' | ' |
Regulatory liability of amounts recovered in retail rates in excess of amounts spent for on-site interim spent fuel storage | ' | 42,000,000 | ' | ' |
Maximum insurance against public liability per occurrence for a nuclear incident | ' | 13,600,000,000 | ' | ' |
Maximum available nuclear liability insurance | ' | 375,000,000 | ' | ' |
Remaining nuclear liability insurance through mandatory industry wide retrospective assessment program | ' | 13,200,000,000 | ' | ' |
Maximum assessment per reactor for each nuclear incident | ' | 127,300,000 | ' | ' |
Annual limit per incident with respect to maximum assessment | ' | 19,000,000 | ' | ' |
Number of VIE lessor trusts | ' | 3 | 3 | 3 |
Maximum potential retrospective assessment per incident of APS | ' | 111,000,000 | ' | ' |
Annual payment limitation with respect to maximum potential retrospective assessment | ' | 16,400,000 | ' | ' |
Amount of "all risk" (including nuclear hazards) insurance for property damage to, and decontamination of, property at Palo Verde | ' | 2,750,000,000 | ' | ' |
Sublimit for non-nuclear property damage losses which has been imposed to the primary policy offered | 1,500,000,000 | ' | ' | ' |
Sublimit for non-nuclear losses which has been imposed to the accidental outage policy | 327,600,000 | ' | ' | ' |
Maximum amount that APS could incur under the current NEIL policies for each retrospective assessment | ' | 18,000,000 | ' | ' |
Collateral assurance provided based on rating triggers | ' | $48,000,000 | ' | ' |
Period to provide collateral assurance based on rating triggers | ' | '20 days | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details 2) (ARIZONA PUBLIC SERVICE COMPANY, USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Jan. 22, 2014 | Sep. 30, 2011 | Dec. 31, 2013 | Sep. 08, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 06, 2013 | |
item | kV | item | Coal take-or-pay commitments | Coal take-or-pay commitments | Coal take-or-pay commitments | Renewable energy credits | Coal Mine Reclamation Obligations | Coal Mine Reclamation Obligations | Contaminated groundwater wells | ||
item | item | ||||||||||
MW | |||||||||||
Contractual Obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2014 | ' | ' | $729,000,000 | ' | $152,000,000 | ' | ' | $48,000,000 | $1,000,000 | ' | ' |
2015 | ' | ' | 628,000,000 | ' | 157,000,000 | ' | ' | 42,000,000 | 1,000,000 | ' | ' |
2016 | ' | ' | 638,000,000 | ' | 166,000,000 | ' | ' | 42,000,000 | 8,000,000 | ' | ' |
2017 | ' | ' | 613,000,000 | ' | 180,000,000 | ' | ' | 42,000,000 | 14,000,000 | ' | ' |
2018 | ' | ' | 580,000,000 | ' | 175,000,000 | ' | ' | 42,000,000 | 14,000,000 | ' | ' |
Thereafter | ' | ' | 8,700,000,000 | ' | 2,539,000,000 | ' | ' | 453,000,000 | 170,000,000 | ' | ' |
Total commitments | ' | ' | ' | ' | 3,400,000,000 | ' | ' | ' | 207,000,000 | 119,000,000 | ' |
Total net present value of commitments | ' | ' | ' | ' | 2,200,000,000 | ' | ' | ' | ' | ' | ' |
Actual purchases under commitment obligations | ' | ' | ' | ' | 188,000,000 | 196,000,000 | 191,000,000 | ' | ' | ' | ' |
Superfund | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Costs related to investigation and study under Superfund site | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of defendants against whom Roosevelt Irrigation District ("RID") filed lawsuit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24 |
Southwest Power Outage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity of transmission line that tripped out of service (in kV) | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period, after the transmission line went off-line, over which generation and transmission resources for the Yuma area were lost | ' | '10 minutes | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers losing service in Yuma area | ' | 69,700 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capacity of firm load that were reported to have been affected due to outages affecting portions of southern Arizona, southern California and northern Mexico (in MW) | ' | 7,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of customers that were reported to have been affected due to outages | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of alleged entities | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Reliability Standard Requirements Violations alleged | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum possible fine per violation per day that the violation is found to have been in existence | ' | ' | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' |
Financial Assurances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit to support existing variable interest rate pollution control bonds | ' | ' | 76,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of letters of credit expiring in 2015 | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of letters of credit expiring in 2016 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit to support certain equity lessors in the Palo Verde sale leaseback transactions | ' | ' | 32,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit to support natural gas tolling contract obligations | ' | ' | $55,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Commitments_and_Contingencies_3
Commitments and Contingencies (Details 3) (USD $) | 0 Months Ended | 12 Months Ended | ||||
In Millions, unless otherwise specified | 23-May-13 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Four Corners | Four Corners | Four Corners | Navajo Plant | Cholla | Cholla Units 1-3 | |
New Mexico Tax Matter | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | |
New Mexico Tax Matter | ||||||
Environmental Matters | ' | ' | ' | ' | ' | ' |
Expected environmental cost | ' | $350 | ' | $200 | $200 | $120 |
Share of Cost of Control of Four Corners Units 4 and 5 | ' | 63.00% | ' | ' | ' | ' |
Coal severance surtax, penalty, and interest | 30 | ' | ' | ' | ' | ' |
Share of the assessment | ' | ' | $12 | ' | ' | ' |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Changes attributable to: | ' | ' |
Asset retirement obligations, current | $32,896,000 | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' |
Change in asset retirement obligations | ' | ' |
Asset retirement obligations at the beginning of year | 357,000,000 | 280,000,000 |
Changes attributable to: | ' | ' |
Accretion expense | 24,000,000 | 19,000,000 |
Settlements | -12,000,000 | ' |
Assumed SCE's obligation | 34,000,000 | ' |
Estimated cash flow revisions | -56,000,000 | 58,000,000 |
Asset retirement obligations at the end of year | 347,000,000 | 357,000,000 |
Asset retirement obligations, current | $33,000,000 | ' |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated quarterly financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $699,762 | $1,152,392 | $915,822 | $686,652 | $693,122 | $1,109,475 | $878,576 | $620,631 | $3,454,628 | $3,301,804 | $3,241,379 |
Operations and maintenance | 238,854 | 233,323 | 229,300 | 223,250 | 237,141 | 220,729 | 216,236 | 210,663 | 924,727 | 884,769 | 904,286 |
Operating income | 83,900 | 415,688 | 259,812 | 86,923 | 101,289 | 447,970 | 254,489 | 48,007 | 846,323 | 851,755 | 746,508 |
Income Taxes | 9,167 | 131,912 | 77,043 | 12,469 | 18,157 | 147,116 | 76,689 | -4,645 | 230,591 | 237,317 | 183,604 |
Income from continuing operations | 32,814 | 234,718 | 139,598 | 32,836 | 34,905 | 252,874 | 130,930 | 284 | 439,966 | 418,993 | 355,634 |
Net income attributable to common shareholders | $24,260 | $226,163 | $131,207 | $24,444 | $22,631 | $244,823 | $122,345 | ($8,257) | $406,074 | $381,542 | $339,473 |
Earnings Per Share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to common shareholders - Basic (in dollars per share) | $0.22 | $2.06 | $1.19 | $0.22 | $0.24 | $2.23 | $1.12 | ($0.07) | $3.69 | $3.54 | $3.01 |
Net income attributable to common shareholders - Basic (in dollars per share) | $0.22 | $2.06 | $1.19 | $0.22 | $0.21 | $2.23 | $1.12 | ($0.08) | $3.69 | $3.48 | $3.11 |
Income from continuing operations attributable to common shareholders - Diluted (in dollars per share) | $0.22 | $2.04 | $1.18 | $0.22 | $0.24 | $2.21 | $1.12 | ($0.07) | $3.66 | $3.50 | $2.99 |
Net income attributable to common shareholders - Diluted (in dollars per share) | $0.22 | $2.04 | $1.18 | $0.22 | $0.20 | $2.21 | $1.11 | ($0.08) | $3.66 | $3.45 | $3.09 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Assets | ' | ' |
Nuclear decommissioning trust | $642,007,000 | $570,625,000 |
Total assets | 41,000,000 | 62,000,000 |
Liabilities | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | -102,207,000 | -159,005,000 |
Fair value measurement on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash Equivalents | ' | 16,000,000 |
Nuclear decommissioning trust | 107,000,000 | 110,000,000 |
Total assets | 107,000,000 | 126,000,000 |
Fair value measurement on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 107,000,000 | 104,000,000 |
Fair value measurement on a recurring basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalent funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | ' | 6,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | 9,000,000 | 22,000,000 |
Nuclear decommissioning trust | 538,000,000 | 465,000,000 |
Total assets | 547,000,000 | 487,000,000 |
Liabilities | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | -33,000,000 | -96,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | US commingled equity funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 272,000,000 | 204,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | Cash and cash equivalent funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 11,000,000 | 13,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | Corporate debt | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 88,000,000 | 80,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 85,000,000 | 83,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | Municipality bonds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 71,000,000 | 74,000,000 |
Fair value measurement on a recurring basis | Significant Other Observable Inputs (Level 2) | Other | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 11,000,000 | 11,000,000 |
Fair value measurement on a recurring basis | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | 41,000,000 | 62,000,000 |
Total assets | 41,000,000 | 62,000,000 |
Liabilities | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | -90,000,000 | -110,000,000 |
Fair value measurement on a recurring basis | Other | ' | ' |
Assets | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | -9,000,000 | -22,000,000 |
Nuclear decommissioning trust | -3,000,000 | -4,000,000 |
Total assets | -12,000,000 | -26,000,000 |
Liabilities | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | 21,000,000 | 47,000,000 |
Fair value measurement on a recurring basis | Other | Cash and cash equivalent funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | -3,000,000 | -4,000,000 |
Fair value measurement on a recurring basis | Fair Value | ' | ' |
Assets | ' | ' |
Cash Equivalents | ' | 16,000,000 |
Risk management activities-derivative instruments: Commodity Contracts | 41,000,000 | 62,000,000 |
Nuclear decommissioning trust | 642,000,000 | 571,000,000 |
Total assets | 683,000,000 | 649,000,000 |
Liabilities | ' | ' |
Risk management activities-derivative instruments: Commodity Contracts | -102,000,000 | -159,000,000 |
Fair value measurement on a recurring basis | Fair Value | US commingled equity funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 272,000,000 | 204,000,000 |
Fair value measurement on a recurring basis | Fair Value | U.S. Treasury | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 107,000,000 | 104,000,000 |
Fair value measurement on a recurring basis | Fair Value | Cash and cash equivalent funds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 8,000,000 | 15,000,000 |
Fair value measurement on a recurring basis | Fair Value | Corporate debt | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 88,000,000 | 80,000,000 |
Fair value measurement on a recurring basis | Fair Value | Mortgage-backed securities | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 85,000,000 | 83,000,000 |
Fair value measurement on a recurring basis | Fair Value | Municipality bonds | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | 71,000,000 | 74,000,000 |
Fair value measurement on a recurring basis | Fair Value | Other | ' | ' |
Assets | ' | ' |
Nuclear decommissioning trust | $11,000,000 | $11,000,000 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Assets | $41 | $62 |
Liabilities | 90 | 110 |
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 | ' | ' |
Net derivative balance at beginning of period | -48 | -51 |
Total net gains (losses) realized/unrealized: | ' | ' |
Included in earnings | ' | 2 |
Included in OCI | ' | -3 |
Deferred as a regulatory asset or liability | -10 | 7 |
Settlements | 10 | -5 |
Transfers into Level 3 from Level 2 | ' | -2 |
Transfers from Level 3 into Level 2 | -1 | 4 |
Net derivative balance at end of period | -49 | -48 |
Transfers in or out of Level 1 to or from any other hierarchy level | 0 | ' |
Electricity forward contracts | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Assets | 40 | 57 |
Liabilities | 66 | 82 |
Electricity forward contracts | Minimum | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 24.89 | 23.06 |
Electricity forward contracts | Maximum | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 65.04 | 64.2 |
Electricity forward contracts | Weighted Average | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 41.09 | 43.16 |
Option Contracts | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Liabilities | 19 | 27 |
Option Contracts | Minimum | Option model | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 39.91 | 36.66 |
Implied electricity price volatilities (as a percent) | 35.00% | 15.00% |
Natural gas forward price (per MMbtu) | 3.57 | 4.1 |
Implied natural gas price volatilities (as a percent) | 22.00% | 17.00% |
Option Contracts | Maximum | Option model | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 85.41 | 92.19 |
Implied electricity price volatilities (as a percent) | 94.00% | 66.00% |
Natural gas forward price (per MMbtu) | 3.8 | 4.25 |
Implied natural gas price volatilities (as a percent) | 36.00% | 36.00% |
Option Contracts | Weighted Average | Option model | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Electricity forward price (per MWh) | 58.7 | 60.97 |
Implied electricity price volatilities (as a percent) | 59.00% | 39.00% |
Natural gas forward price (per MMbtu) | 3.71 | 4.2 |
Implied natural gas price volatilities (as a percent) | 27.00% | 23.00% |
Natural gas forward contracts | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Assets | 1 | 5 |
Liabilities | $5 | $1 |
Natural gas forward contracts | Minimum | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Natural gas forward price (per MMbtu) | 3.47 | 3.25 |
Natural gas forward contracts | Maximum | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Natural gas forward price (per MMbtu) | 4.31 | 4.44 |
Natural gas forward contracts | Weighted Average | Discounted cash flows | ' | ' |
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments | ' | ' |
Natural gas forward price (per MMbtu) | 3.87 | 3.93 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Basic earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to common shareholders (in dollars per share) | $0.22 | $2.06 | $1.19 | $0.22 | $0.24 | $2.23 | $1.12 | ($0.07) | $3.69 | $3.54 | $3.01 |
Income (loss) from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.06) | $0.10 |
Earnings per share - basic (in dollars per share) | $0.22 | $2.06 | $1.19 | $0.22 | $0.21 | $2.23 | $1.12 | ($0.08) | $3.69 | $3.48 | $3.11 |
Diluted earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income from continuing operations attributable to common shareholders (in dollars per share) | $0.22 | $2.04 | $1.18 | $0.22 | $0.24 | $2.21 | $1.12 | ($0.07) | $3.66 | $3.50 | $2.99 |
Income (loss) from discontinued operations (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.05) | $0.10 |
Earnings per share - diluted (in dollars per share) | $0.22 | $2.04 | $1.18 | $0.22 | $0.20 | $2.21 | $1.11 | ($0.08) | $3.66 | $3.45 | $3.09 |
Dilutive stock options and performance shares | ' | ' | ' | ' | ' | ' | ' | ' | 822,000 | 1,017,000 | 811,000 |
Total average common shares outstanding for the purposes of calculating diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | 110,806,000 | 110,527,000 | 109,864,000 |
Options to purchase shares of common stock outstanding excluded from computation of diluted earnings per share due to its antidilutive effect | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 16-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | 2012 grant | Restricted stock unit awards | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Restricted stock units and stock grants | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Performance Share Awards | Retention Units |
2007 grant | 2008 grant | 2008 grant | 2009 grant | 2009 grant | 2009 grant | 2010 grant | 2010 grant | 2010 grant | 2011 grant | 2011 grant | 2012 grant | 2007 grant | 2011 grant | 2011 grant | 2011 grant | 2012 grant | 2012 grant | 2012 grant | 2013 grant | 2013 grant | 2013 grant | ||||||||||
item | item | Maximum | Minimum | item | Maximum | Minimum | item | Maximum | Minimum | ||||||||||||||||||||||
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares to be available for grant under the 2012 Long Term Incentive Plan | 4,595,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash that the participant may elect as a deferral under the first option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fully transferable shares of stock that the participant may elect as a deferral for the first option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
The number of shares used to determine the cash award payable to an employee for each unit earned | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of cash that the participant may elect as a dividend equivalent deferral under the first option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fully transferable shares of stock that the participant may elect as a dividend equivalent deferral for the first option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vesting period | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares to be granted as retention award if performance requirements are met | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33,745 |
Percentage of awards vesting on February 15, 2013 | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of awards vesting on February 15, 2014 | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of awards vesting on February 15, 2015 | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stocks granted and the weighted average fair value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units granted (in shares) | ' | ' | 129,620 | 202,278 | 292,242 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 176,332 | 185,878 | 175,072 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Grant date fair value (in dollars per share) | ' | ' | $55.21 | $49.31 | $41.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55.45 | $47.40 | $41.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Nonvested shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in shares) | ' | ' | 480,753 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 347,690 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in shares) | ' | ' | 129,620 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 176,332 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,617 |
Increase in performance factor (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,183 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in shares) | ' | ' | 191,988 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,915 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in shares) | ' | ' | 20,409 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,894 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in shares) | ' | ' | 397,976 | 480,753 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 344,396 | 347,690 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-Average Grant-Date Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the beginning of the period (in dollars per share) | ' | ' | $43.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $44.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted (in dollars per share) | ' | ' | $55.21 | $49.31 | $41.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $55.45 | $47.40 | $41.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in performance factor (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested (in dollars per share) | ' | ' | $40.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $41.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited (in dollars per share) | ' | ' | $45.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $48.11 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at the end of the period (in dollars per share) | ' | ' | $47.74 | $43.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $51.13 | $44.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash required to settle the payment for grant | ' | ' | ' | ' | ' | $1 | $1.90 | $1.60 | $3 | $1.70 | $1.50 | $2.30 | $0.60 | $0.60 | $2.50 | $0.70 | $2.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of the awards that vest based on a percentile ranking of total shareholder return | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' | ' |
Percentage of the awards that vest based on non-financial separate performance metrics | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' | 50.00% | ' | ' | ' |
Number of performance element criteria | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of non-financial separate performance metrics based on which awards vest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | 6 | ' | ' | 6 | ' | ' | ' |
Performance period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' | '3 years | ' | ' | '3 years | ' | ' | ' |
Exact number of shares issued as a percentage of the target award | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | 0.00% | ' | 200.00% | 0.00% | ' | 200.00% | 0.00% | ' |
Percentage of fully transferable shares of stock that the participant may elect as a deferral for the second option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of fully transferable shares of stock that the participant may elect as a dividend equivalent deferral for the second option available under the plan | ' | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_Detail1
Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Additional disclosures | ' | ' | ' |
Total unrecognized compensation cost related to nonvested share-based compensation arrangements granted | $17 | ' | ' |
Expected weighted-average period of recognition of unrecognized compensation cost | '2 years | ' | ' |
Total fair value of shares vested | 20 | 19 | 14 |
Compensation cost that has been charged against income | 25 | 32 | 23 |
Total income tax benefit recognized | 10 | 13 | 9 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Additional disclosures | ' | ' | ' |
Compensation cost that has been charged against income | 25 | 32 | 22 |
Stock Options | ' | ' | ' |
Stock option activity under prior equity incentive plans | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 7,925 | ' | ' |
Exercised (in shares) | 3,625 | ' | ' |
Forfeited or expired (in shares) | 4,300 | ' | ' |
Outstanding at the end of the period (in shares) | ' | 7,925 | ' |
Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $32.29 | ' | ' |
Exercised (in dollars per share) | $32.29 | ' | ' |
Forfeited or expired (in dollars per share) | $32.29 | ' | ' |
Outstanding at the end of the period (in dollars per share) | ' | $32.29 | ' |
Additional disclosures | ' | ' | ' |
Cash received from options exercised | $0.10 | $0.50 | $1.80 |
Derivative_Accounting_Details
Derivative Accounting (Details) | Dec. 31, 2013 |
Derivative Accounting | ' |
Percentage of unrealized gains and losses on certain derivatives deferred for future rate treatment | 100.00% |
Commodity - Power | ' |
Outstanding gross notional amount of derivatives | ' |
Outstanding gross notional amount of derivative instruments | 5,765 |
Commodity - Gas | ' |
Outstanding gross notional amount of derivatives | ' |
Outstanding gross notional amount of derivative instruments | 108 |
ARIZONA PUBLIC SERVICE COMPANY | ' |
Derivative Accounting | ' |
Percentage of unrealized gains and losses on certain derivatives deferred for future rate treatment before accounting treatment change | 90.00% |
Percentage of unrealized gains and losses on certain derivatives deferred for future rate treatment | 100.00% |
Derivative_Accounting_Details_
Derivative Accounting (Details 2) (Commodity Contracts, USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Designated as Hedging Instruments | ' | ' | ' |
Gains and losses from derivative instruments | ' | ' | ' |
Loss Recognized in OCI on Derivative Instruments (Effective Portion) | ($353,000) | ($37,663,000) | ($94,660,000) |
Loss Reclassified from Accumulated OCI into Income (Effective Portion Realized) | -44,219,000 | -99,007,000 | -117,189,000 |
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing) | ' | 117,000 | -211,000 |
Amount reclassified from accumulated other comprehensive income to earnings related to discontinued cash flow hedges | 0 | 1,800,000 | 0 |
Estimated net loss before income taxes to be reclassified from accumulated other comprehensive income | 21,000,000 | ' | ' |
Not Designated as Hedging Instruments | ' | ' | ' |
Gains and losses from derivative instruments | ' | ' | ' |
Net Gain (Loss) Recognized in Income from Derivative Instruments | -10,160,000 | -2,644,000 | -52,140,000 |
Not Designated as Hedging Instruments | Revenue | ' | ' | ' |
Gains and losses from derivative instruments | ' | ' | ' |
Net Gain (Loss) Recognized in Income from Derivative Instruments | 289,000 | 103,000 | -27,000 |
Not Designated as Hedging Instruments | Fuel and purchased power | ' | ' | ' |
Gains and losses from derivative instruments | ' | ' | ' |
Net Gain (Loss) Recognized in Income from Derivative Instruments | ($10,449,000) | ($2,747,000) | ($52,113,000) |
Derivative_Accounting_Details_1
Derivative Accounting (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Liabilities | ' | ' |
Amount Reported on Balance Sheet | ($102,207) | ($159,005) |
Commodity Contracts | ' | ' |
Assets | ' | ' |
Amount Reported on Balance Sheet | 41,000 | ' |
Assets and Liabilities | ' | ' |
Gross Recognized Derivatives | -72,712 | -122,252 |
Amounts Offset | 19,000 | 49,299 |
Net Recognized Derivatives | -53,712 | -72,953 |
Other | -7,511 | -24,462 |
Amount Reported on Balance Sheet | -61,223 | -97,415 |
Commodity Contracts | Current Assets | ' | ' |
Assets | ' | ' |
Gross Recognized Derivatives | 24,587 | 42,495 |
Amounts Offset | -7,425 | -17,797 |
Net Recognized Derivatives | 17,162 | 24,698 |
Other | 7 | 1,001 |
Amount Reported on Balance Sheet | 17,169 | 25,699 |
Commodity Contracts | Investments and Other Assets | ' | ' |
Assets | ' | ' |
Gross Recognized Derivatives | 25,364 | 41,563 |
Amounts Offset | -1,549 | -5,672 |
Net Recognized Derivatives | 23,815 | 35,891 |
Amount Reported on Balance Sheet | 23,815 | 35,891 |
Commodity Contracts | Total Assets | ' | ' |
Assets | ' | ' |
Gross Recognized Derivatives | 49,951 | 84,058 |
Amounts Offset | -8,974 | -23,469 |
Net Recognized Derivatives | 40,977 | 60,589 |
Other | 7 | 1,001 |
Amount Reported on Balance Sheet | 40,984 | 61,590 |
Commodity Contracts | Current Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Recognized Derivatives | -50,540 | -105,324 |
Amounts Offset | 26,166 | 57,046 |
Net Recognized Derivatives | -24,374 | -48,278 |
Other | -7,518 | -25,463 |
Amount Reported on Balance Sheet | -31,892 | -73,741 |
Commodity Contracts | Deferred Credits and Other | ' | ' |
Liabilities | ' | ' |
Gross Recognized Derivatives | -72,123 | -100,986 |
Amounts Offset | 1,808 | 15,722 |
Net Recognized Derivatives | -70,315 | -85,264 |
Amount Reported on Balance Sheet | -70,315 | -85,264 |
Commodity Contracts | Total Liabilities | ' | ' |
Liabilities | ' | ' |
Gross Recognized Derivatives | -122,663 | -206,310 |
Amounts Offset | 27,974 | 72,768 |
Net Recognized Derivatives | -94,689 | -133,542 |
Other | -7,518 | -25,463 |
Amount Reported on Balance Sheet | -102,207 | -159,005 |
Designated as Hedging Instruments | ' | ' |
Liabilities | ' | ' |
Amount Reported on Balance Sheet | $5,000 | $5,000 |
Derivative_Accounting_Details_2
Derivative Accounting (Details 4) (Commodity Contracts, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
item | |
Commodity Contracts | ' |
Credit Risk and Credit-Related Contingent Features | ' |
Concentration of credit risk, number of counterparties | 2 |
Concentration of risk with two counterparties, as a percentage of risk management assets | 92.00% |
Risk management activities-derivative instruments: Commodity Contracts | $41,000,000 |
Aggregate Fair Value of Derivative Instruments in a Net Liability Position | 123,000,000 |
Cash Collateral Posted | 19,000,000 |
Additional Cash Collateral in the Event Credit-Risk Related Contingent Features were Fully Triggered | 66,000,000 |
Additional collateral to counterparties for energy related non-derivative instrument contracts | $180,000,000 |
Other_Income_and_Other_Expense2
Other Income and Other Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other income: | ' | ' | ' |
Interest income | $1,629 | $1,239 | $1,850 |
Investment gains - net | ' | ' | 1,165 |
Miscellaneous | 75 | 367 | 96 |
Total other income | 1,704 | 1,606 | 3,111 |
Other expense: | ' | ' | ' |
Non-operating costs | -8,207 | -7,777 | -7,037 |
Investment loss - net | -3,711 | -2,453 | ' |
Miscellaneous | -4,106 | -9,612 | -3,414 |
Total other expense | ($16,024) | ($19,842) | ($10,451) |
Palo_Verde_Sale_Leaseback_Vari2
Palo Verde Sale Leaseback Variable Interest Entities (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2008 | Dec. 31, 1986 | |
item | item | item | |||
Palo Verde Sale Leaseback Variable Interest Entities | ' | ' | ' | ' | ' |
Increase in net income due to consolidation of Palo Verde Sale Leaseback Trusts | $33,892,000 | $31,622,000 | $27,467,000 | ' | ' |
Amounts relating to the VIEs included in Condensed Consolidated Balance Sheets | ' | ' | ' | ' | ' |
Palo Verde sale leaseback property plant and equipment, net of accumulated depreciation | 125,125,000 | 128,995,000 | ' | ' | ' |
Current maturities of long-term debt | 540,424,000 | 122,828,000 | ' | ' | ' |
Long-term debt excluding current maturities | 13,420,000 | 38,869,000 | ' | ' | ' |
Equity-Noncontrolling interests | 145,990,000 | 129,483,000 | ' | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' | ' | ' |
Palo Verde Sale Leaseback Variable Interest Entities | ' | ' | ' | ' | ' |
Number of VIE lessor trusts | 3 | ' | ' | 3 | 3 |
Annual lease payments | 49,000,000 | ' | ' | ' | ' |
Increase in net income due to consolidation of Palo Verde Sale Leaseback Trusts | 33,892,000 | 31,613,000 | 27,524,000 | ' | ' |
Amounts relating to the VIEs included in Condensed Consolidated Balance Sheets | ' | ' | ' | ' | ' |
Palo Verde sale leaseback property plant and equipment, net of accumulated depreciation | 125,125,000 | 128,995,000 | ' | ' | ' |
Current maturities of long-term debt | 540,424,000 | 122,828,000 | ' | ' | ' |
Long-term debt excluding current maturities | 13,420,000 | 38,869,000 | ' | ' | ' |
Equity-Noncontrolling interests | 145,990,000 | 129,483,000 | ' | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | Consolidation of VIEs | ' | ' | ' | ' | ' |
Palo Verde Sale Leaseback Variable Interest Entities | ' | ' | ' | ' | ' |
Annual lease payment if lease is extended | 23,000,000 | ' | ' | ' | ' |
Number of options | 2 | ' | ' | ' | ' |
Increase in net income due to consolidation of Palo Verde Sale Leaseback Trusts | 34,000,000 | 32,000,000 | 28,000,000 | ' | ' |
Amounts relating to the VIEs included in Condensed Consolidated Balance Sheets | ' | ' | ' | ' | ' |
Palo Verde sale leaseback property plant and equipment, net of accumulated depreciation | 125,000,000 | 129,000,000 | ' | ' | ' |
Current maturities of long-term debt | 26,000,000 | 27,000,000 | ' | ' | ' |
Long-term debt excluding current maturities | 13,000,000 | 39,000,000 | ' | ' | ' |
Equity-Noncontrolling interests | 146,000,000 | 129,000,000 | ' | ' | ' |
Maximum payment to the VIEs' noncontrolling equity participants upon the occurrence of certain unlikely events | 133,000,000 | ' | ' | ' | ' |
VIE debt to be assumed upon the occurrence of certain unlikely events | $39,000,000 | ' | ' | ' | ' |
Nuclear_Decommissioning_Trusts2
Nuclear Decommissioning Trusts (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Nuclear decommissioning trust fund assets | ' | ' | ' |
Fair Value | $642,007,000 | $570,625,000 | ' |
Realized gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds | ' | ' | ' |
Proceeds from the sale of securities | 446,025,000 | 417,603,000 | 497,780,000 |
Fair value of fixed income securities, summarized by contractual maturities | ' | ' | ' |
Total | 642,007,000 | 570,625,000 | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Nuclear decommissioning trust fund assets | ' | ' | ' |
Fair Value | 642,007,000 | 570,625,000 | ' |
Unrealized Gains | 140,000,000 | 91,000,000 | ' |
Unrealized Losses | -6,000,000 | ' | ' |
Net payables for securities purchases | -3,000,000 | -4,000,000 | ' |
Realized gains and losses and proceeds from the sale of securities by the nuclear decommissioning trust funds | ' | ' | ' |
Realized gains | 6,000,000 | 7,000,000 | 8,000,000 |
Realized losses | -7,000,000 | -4,000,000 | -5,000,000 |
Proceeds from the sale of securities | 446,025,000 | 417,603,000 | 497,780,000 |
Fair value of fixed income securities, summarized by contractual maturities | ' | ' | ' |
Total | 642,007,000 | 570,625,000 | ' |
ARIZONA PUBLIC SERVICE COMPANY | Equity Securities | ' | ' | ' |
Nuclear decommissioning trust fund assets | ' | ' | ' |
Fair Value | 272,000,000 | 204,000,000 | ' |
Unrealized Gains | 129,000,000 | 67,000,000 | ' |
Fair value of fixed income securities, summarized by contractual maturities | ' | ' | ' |
Total | 272,000,000 | 204,000,000 | ' |
ARIZONA PUBLIC SERVICE COMPANY | Fixed income securities. | ' | ' | ' |
Nuclear decommissioning trust fund assets | ' | ' | ' |
Fair Value | 373,000,000 | 371,000,000 | ' |
Unrealized Gains | 11,000,000 | 24,000,000 | ' |
Unrealized Losses | -6,000,000 | ' | ' |
Fair value of fixed income securities, summarized by contractual maturities | ' | ' | ' |
Less than one year | 9,000,000 | ' | ' |
1 year - 5 years | 109,000,000 | ' | ' |
5 years - 10 years | 108,000,000 | ' | ' |
Greater than 10 years | 147,000,000 | ' | ' |
Total | $373,000,000 | $371,000,000 | ' |
Changes_in_Accumulated_Other_C2
Changes in Accumulated Other Comprehensive Loss (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | ($114,008) | ' | ' |
OCI (loss) before reclassifications | 5,381 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 30,574 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 35,955 | 38,155 | 7,605 |
Ending balance | -78,053 | -114,008 | ' |
Derivative Instruments | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -49,592 | ' | ' |
OCI (loss) before reclassifications | -213 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 26,747 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 26,534 | ' | ' |
Ending balance | -23,058 | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -64,416 | ' | ' |
OCI (loss) before reclassifications | 5,594 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 3,827 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 9,421 | ' | ' |
Ending balance | ($54,995) | ' | ' |
SCHEDULE_I_CONDENSED_FINANCIAL1
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CONDENSED STATEMENTS OF INCOME | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $699,762 | $1,152,392 | $915,822 | $686,652 | $693,122 | $1,109,475 | $878,576 | $620,631 | $3,454,628 | $3,301,804 | $3,241,379 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 2,608,305 | 2,450,049 | 2,494,871 |
OPERATING INCOME | 83,900 | 415,688 | 259,812 | 86,923 | 101,289 | 447,970 | 254,489 | 48,007 | 846,323 | 851,755 | 746,508 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 11,261 | 4,200 | 16,367 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 201,888 | 214,616 | 241,995 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 670,557 | 656,310 | 539,238 |
Income tax benefit | 9,167 | 131,912 | 77,043 | 12,469 | 18,157 | 147,116 | 76,689 | -4,645 | 230,591 | 237,317 | 183,604 |
INCOME FROM CONTINUING OPERATIONS | 32,814 | 234,718 | 139,598 | 32,836 | 34,905 | 252,874 | 130,930 | 284 | 439,966 | 418,993 | 355,634 |
Income (loss) from discontinued operations - net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,829 | 11,306 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 24,260 | 226,163 | 131,207 | 24,444 | 22,631 | 244,823 | 122,345 | -8,257 | 406,074 | 381,542 | 339,473 |
Other comprehensive income attributable to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 35,955 | 38,155 | 7,605 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ' | ' | ' | ' | ' | ' | ' | ' | 442,029 | 419,697 | 347,078 |
Pinnacle West | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONDENSED STATEMENTS OF INCOME | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | ' | ' | ' | ' | ' | ' | ' | ' | 799 | 6,133 | 1,034 |
Operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 24,930 | 12,125 | 8,811 |
OPERATING INCOME | ' | ' | ' | ' | ' | ' | ' | ' | -24,131 | -5,992 | -7,777 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 420,926 | 391,528 | 335,859 |
Other expense | ' | ' | ' | ' | ' | ' | ' | ' | -1,999 | -2,001 | -1,481 |
Total | ' | ' | ' | ' | ' | ' | ' | ' | 418,927 | 389,527 | 334,378 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | 3,226 | 4,868 | 8,053 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | 391,570 | 378,667 | 318,548 |
Income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | -14,504 | -7,079 | -8,938 |
INCOME FROM CONTINUING OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | 406,074 | 385,746 | 327,486 |
Income (loss) from discontinued operations - net of income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,204 | 11,987 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ' | ' | ' | ' | ' | ' | ' | ' | 406,074 | 381,542 | 339,473 |
Other comprehensive income attributable to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 35,955 | 38,155 | 7,605 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ' | ' | ' | ' | ' | ' | ' | ' | $442,029 | $419,697 | $347,078 |
SCHEDULE_I_CONDENSED_FINANCIAL2
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | $9,526 | $26,202 | $33,583 | $110,188 |
Accounts receivable | 299,904 | 277,225 | ' | ' |
Current deferred income taxes | 91,152 | 152,191 | ' | ' |
Income tax receivable | 135,517 | 2,423 | ' | ' |
Other current assets | 39,895 | 37,102 | ' | ' |
Total current assets | 1,043,609 | 1,005,726 | ' | ' |
Investments and other assets | ' | ' | ' | ' |
Other assets | 60,875 | 62,694 | ' | ' |
Total investments and other assets | 726,697 | 669,210 | ' | ' |
TOTAL ASSETS | 13,508,686 | 13,379,615 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable | 284,516 | 221,312 | ' | ' |
Accrued taxes (Note 4) | 130,998 | 124,939 | ' | ' |
Common dividends payable | 62,528 | 59,789 | ' | ' |
Other current liabilities | 158,540 | 171,573 | ' | ' |
Total current liabilities | 1,618,644 | 1,083,542 | ' | ' |
Long-term debt less current maturities | 2,796,465 | 3,199,088 | ' | ' |
Deferred credits and other | ' | ' | ' | ' |
Deferred income taxes (Note 4) | 2,351,882 | 2,151,371 | ' | ' |
Pension and other postretirement liabilities | 513,628 | 1,058,755 | ' | ' |
Other | 185,659 | 183,835 | ' | ' |
Total deferred credits and other | 4,753,117 | 4,994,696 | ' | ' |
Common stock equity | ' | ' | ' | ' |
Common stock | 2,491,558 | 2,466,923 | ' | ' |
Accumulated other comprehensive loss | -78,053 | -114,008 | ' | ' |
Retained earnings | 1,785,273 | 1,624,102 | ' | ' |
Total shareholders' equity | 4,194,470 | 3,972,806 | ' | ' |
Noncontrolling interests | 145,990 | 129,483 | ' | ' |
Total equity | 4,340,460 | 4,102,289 | 3,930,586 | ' |
TOTAL LIABILITIES AND EQUITY | 13,508,686 | 13,379,615 | ' | ' |
Pinnacle West | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' |
Cash and cash equivalents | 5,798 | 22,679 | 12,710 | 7,725 |
Accounts receivable | 80,108 | 92,906 | ' | ' |
Current deferred income taxes | 93,185 | 77,771 | ' | ' |
Income tax receivable | 1,853 | 3,350 | ' | ' |
Other current assets | 242 | 25 | ' | ' |
Total current assets | 181,186 | 196,731 | ' | ' |
Investments and other assets | ' | ' | ' | ' |
Investments in subsidiaries | 4,455,049 | 4,223,301 | ' | ' |
Other assets | 13,789 | 13,833 | ' | ' |
Total investments and other assets | 4,468,838 | 4,237,134 | ' | ' |
TOTAL ASSETS | 4,650,024 | 4,433,865 | ' | ' |
Current liabilities | ' | ' | ' | ' |
Accounts payable | 3,279 | 5,735 | ' | ' |
Accrued taxes (Note 4) | 8,538 | 8,239 | ' | ' |
Common dividends payable | 62,528 | 59,789 | ' | ' |
Other current liabilities | 31,295 | 41,000 | ' | ' |
Total current liabilities | 105,640 | 114,763 | ' | ' |
Long-term debt less current maturities | 125,000 | 125,000 | ' | ' |
Deferred credits and other | ' | ' | ' | ' |
Deferred income taxes (Note 4) | 4,158 | 17,395 | ' | ' |
Pension and other postretirement liabilities | 37,611 | 41,199 | ' | ' |
Other | 37,155 | 33,219 | ' | ' |
Total deferred credits and other | 78,924 | 91,813 | ' | ' |
Common stock equity | ' | ' | ' | ' |
Common stock | 2,487,250 | 2,462,712 | ' | ' |
Accumulated other comprehensive loss | -78,053 | -114,008 | ' | ' |
Retained earnings | 1,785,273 | 1,624,102 | ' | ' |
Total shareholders' equity | 4,194,470 | 3,972,806 | ' | ' |
Noncontrolling interests | 145,990 | 129,483 | ' | ' |
Total equity | 4,340,460 | 4,102,289 | ' | ' |
TOTAL LIABILITIES AND EQUITY | $4,650,024 | $4,433,865 | ' | ' |
SCHEDULE_I_CONDENSED_FINANCIAL3
SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF REGISTRANT (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net Income | $439,966 | $413,164 | $366,940 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 492,322 | 481,262 | 493,784 |
Deferred income taxes | 249,296 | 187,023 | 117,952 |
Accounts receivable | 44,991 | -14,587 | -40,626 |
Accounts payable | 45,414 | -96,600 | 58,346 |
Net cash flow provided by operating activities | 1,153,307 | 1,171,122 | 1,125,583 |
Cash flows from investing activities | ' | ' | ' |
Proceeds from sale of energy-related products and services business | 0 | ' | 45,111 |
Net cash flow used for investing activities | -1,009,401 | -872,994 | -782,007 |
Cash flows from financing activities | ' | ' | ' |
Issuance of long-term debt | 136,307 | 476,081 | 470,353 |
Short-term borrowings and payments - net | 60,950 | 92,175 | -16,600 |
Dividends paid on common stock | -235,244 | -225,075 | -221,728 |
Repayment of long-term debt | -122,828 | -654,286 | -655,169 |
Common stock equity issuance | 17,319 | 15,955 | 15,841 |
Other | 299 | 170 | -2,668 |
Net cash flow used for financing activities | -160,582 | -305,509 | -420,181 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -16,676 | -7,381 | -76,605 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 26,202 | 33,583 | 110,188 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 9,526 | 26,202 | 33,583 |
Pinnacle West | ' | ' | ' |
Cash flows from operating activities | ' | ' | ' |
Net Income | 406,074 | 381,542 | 339,473 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in earnings of subsidiaries - net | -420,926 | -391,528 | -335,859 |
Depreciation and amortization | 95 | 94 | 97 |
Gain on sale of energy-related business | ' | ' | -10,404 |
Deferred income taxes | -28,806 | -15,135 | 7,387 |
Accounts receivable | -21,671 | -28,763 | 24,201 |
Accounts payable | -2,449 | 879 | -2,677 |
Accrued taxes and income tax receivable - net | 1,402 | -3,103 | 7,512 |
Dividends received from subsidiaries | 242,100 | 222,200 | 228,900 |
Other | -15,065 | -4,589 | 19,270 |
Net cash flow provided by operating activities | 204,096 | 219,123 | 229,498 |
Cash flows from investing activities | ' | ' | ' |
Investments in subsidiaries | -3,400 | ' | ' |
Repayments of loans from subsidiaries | 2,149 | 996 | 61,143 |
Proceeds from sale of energy-related products and services business | ' | ' | 45,111 |
Advances of loans to subsidiaries | -2,099 | -1,200 | -64,970 |
Proceeds from sale of life insurance policies | ' | ' | 9,357 |
Net cash flow used for investing activities | -3,350 | -204 | 50,641 |
Cash flows from financing activities | ' | ' | ' |
Issuance of long-term debt | ' | 125,000 | 175,000 |
Short-term borrowings and payments - net | ' | ' | -16,600 |
Dividends paid on common stock | -235,244 | -225,075 | -221,728 |
Repayment of long-term debt | ' | -125,000 | -225,000 |
Common stock equity issuance | 17,319 | 15,955 | 15,841 |
Other | 298 | 170 | -2,667 |
Net cash flow used for financing activities | -217,627 | -208,950 | -275,154 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -16,881 | 9,969 | 4,985 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 22,679 | 12,710 | 7,725 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | $5,798 | $22,679 | $12,710 |
SCHEDULE_II_RESERVE_FOR_UNCOLL1
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES (Details) (Reserve for uncollectibles., Pinnacle West, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reserve for uncollectibles. | Pinnacle West | ' | ' | ' |
Changes in reserve for uncollectibles | ' | ' | ' |
Balance at beginning of period | $3,340 | $3,748 | $4,709 |
Additions, Charged to cost and expenses | 4,923 | 5,290 | 5,672 |
Deductions | 5,060 | 5,698 | 6,633 |
Balance at end of period | $3,203 | $3,340 | $3,748 |
CONSOLIDATED_STATEMENTS_OF_INC2
CONSOLIDATED STATEMENTS OF INCOME (APSC) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
OPERATING EXPENSES | ' | ' | ' |
Fuel and purchased power | $1,095,709 | $994,790 | $1,009,464 |
Operations and maintenance | 924,727 | 884,769 | 904,286 |
Depreciation and amortization | 415,708 | 404,336 | 427,054 |
Taxes other than income taxes | 164,167 | 159,323 | 147,408 |
Total | 2,608,305 | 2,450,049 | 2,494,871 |
OPERATING INCOME | 846,323 | 851,755 | 746,508 |
OTHER INCOME (DEDUCTIONS) | ' | ' | ' |
Allowance for equity funds used during construction (Note 1) | 25,581 | 22,436 | 23,707 |
Other income (Note S-3) | 1,704 | 1,606 | 3,111 |
Other expense (Note S-3) | -16,024 | -19,842 | -10,451 |
Total | 11,261 | 4,200 | 16,367 |
INTEREST EXPENSE | ' | ' | ' |
Allowance for borrowed funds used during construction (Note 1) | -14,861 | -14,971 | -18,358 |
Total | 187,027 | 199,645 | 223,637 |
NET INCOME | 439,966 | 413,164 | 366,940 |
Less: Net income attributable to noncontrolling interests (Note 19) | 33,892 | 31,622 | 27,467 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 406,074 | 381,542 | 339,473 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
ELECTRIC OPERATING REVENUES | 3,451,251 | 3,293,489 | 3,237,241 |
OPERATING EXPENSES | ' | ' | ' |
Fuel and purchased power | 1,095,709 | 994,790 | 1,009,464 |
Operations and maintenance | 897,824 | 873,916 | 895,917 |
Depreciation and amortization | 415,612 | 404,242 | 426,958 |
Income taxes (Notes 4 and S-1) | 256,864 | 256,600 | 204,066 |
Taxes other than income taxes | 163,377 | 158,412 | 146,453 |
Total | 2,829,386 | 2,687,960 | 2,682,858 |
OPERATING INCOME | 621,865 | 605,529 | 554,383 |
OTHER INCOME (DEDUCTIONS) | ' | ' | ' |
Income taxes (Notes 4 and S-1) | 11,769 | 12,204 | 11,524 |
Allowance for equity funds used during construction (Note 1) | 25,581 | 22,436 | 23,707 |
Other income (Note S-3) | 3,896 | 2,868 | 5,071 |
Other expense (Note S-3) | -20,449 | -21,150 | -15,328 |
Total | 20,797 | 16,358 | 24,974 |
INTEREST EXPENSE | ' | ' | ' |
Interest on long-term debt | 188,011 | 198,398 | 218,981 |
Interest on short-term borrowings | 6,605 | 7,135 | 10,345 |
Debt discount, premium and expense | 4,046 | 4,215 | 4,616 |
Allowance for borrowed funds used during construction (Note 1) | -14,861 | -14,971 | -18,358 |
Total | 183,801 | 194,777 | 215,584 |
NET INCOME | 458,861 | 427,110 | 363,773 |
Less: Net income attributable to noncontrolling interests (Note 19) | 33,892 | 31,613 | 27,524 |
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $424,969 | $395,497 | $336,249 |
CONSOLIDATED_STATEMENTS_OF_COM2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (APSC) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
NET INCOME | $439,966 | $413,164 | $366,940 |
Derivative instruments: | ' | ' | ' |
Net unrealized loss, net of tax benefit of $140, $14,888, and $37,397 (Note 17) | -213 | -22,763 | -57,271 |
Reclassification of net realized loss, net of tax benefit of $17,472, $39,119 and $46,298 (Note 17) | 26,747 | 59,887 | 70,902 |
Pension and other postretirement benefits activity, net of tax (expense) benefit of $(6,003), $408 and $1,910 (Note 8) | 9,421 | 1,031 | -6,026 |
Total other comprehensive income | 35,955 | 38,155 | 7,605 |
COMPREHENSIVE INCOME | 475,921 | 451,319 | 374,545 |
Less: Comprehensive income attributable to noncontrolling interests | 33,892 | 31,622 | 27,467 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | 442,029 | 419,697 | 347,078 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
NET INCOME | 458,861 | 427,110 | 363,773 |
Derivative instruments: | ' | ' | ' |
Net unrealized loss, net of tax benefit of $140, $14,888, and $37,397 (Note 17) | -214 | -22,775 | -57,262 |
Reclassification of net realized loss, net of tax benefit of $17,472, $39,119 and $46,298 (Note 17) | 26,747 | 59,888 | 70,891 |
Pension and other postretirement benefits activity, net of tax (expense) benefit of $(6,003), $408 and $1,910 (Note 8) | 9,190 | -617 | -2,925 |
Total other comprehensive income | 35,723 | 36,496 | 10,704 |
COMPREHENSIVE INCOME | 494,584 | 463,606 | 374,477 |
Less: Comprehensive income attributable to noncontrolling interests | 33,892 | 31,613 | 27,524 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $460,692 | $431,993 | $346,953 |
CONSOLIDATED_STATEMENTS_OF_COM3
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (APSC) (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net unrealized loss, tax benefit | $140 | $14,900 | $37,389 |
Reclassification of net realized loss, tax benefit | 17,472 | 39,120 | 46,288 |
Pension and other postretirement benefits activity, tax (expense) benefit | -6,156 | -651 | 3,935 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Net unrealized loss, tax benefit | 140 | 14,888 | 37,397 |
Reclassification of net realized loss, tax benefit | 17,472 | 39,119 | 46,298 |
Pension and other postretirement benefits activity, tax (expense) benefit | ($6,003) | $408 | $1,910 |
CONSOLIDATED_BALANCE_SHEETS_AP
CONSOLIDATED BALANCE SHEETS (APSC) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6 and 10) | ' | ' |
Plant in service and held for future use | $15,200,464 | $14,346,367 |
Accumulated depreciation and amortization | -5,300,219 | -4,929,613 |
Net | 9,900,245 | 9,416,754 |
Construction work in progress | 581,369 | 565,716 |
Palo Verde sale leaseback, net of accumulated depreciation of $225,925 and $222,055 (Note 19) | 125,125 | 128,995 |
Intangible assets, net of accumulated amortization of $439,703 and $411,543 | 157,689 | 162,150 |
Nuclear fuel, net of accumulated amortization of $146,057 and $133,950 | 124,557 | 122,778 |
Total property, plant and equipment | 10,888,985 | 10,396,393 |
INVESTMENTS AND OTHER ASSETS | ' | ' |
Nuclear decommissioning trust (Notes 14 and 20) | 642,007 | 570,625 |
Assets from risk management activities (Note 17) | 23,815 | 35,891 |
Other assets | 60,875 | 62,694 |
Total investments and other assets | 726,697 | 669,210 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 9,526 | 26,202 |
Customer and other receivables | 299,904 | 277,225 |
Accrued unbilled revenues | 96,796 | 94,845 |
Allowance for doubtful accounts | -3,203 | -3,340 |
Materials and supplies (at average cost) | 221,682 | 218,096 |
Fossil fuel (at average cost) | 38,028 | 31,334 |
Income tax receivable | 135,517 | 2,423 |
Assets from risk management activities (Note 17) | 17,169 | 25,699 |
Deferred fuel and purchased power regulatory asset (Note 3) | 20,755 | 72,692 |
Other regulatory assets (Note 3) | 76,388 | 71,257 |
Deferred income taxes (Notes 4 and S-1) | 91,152 | 152,191 |
Other current assets | 39,895 | 37,102 |
Total current assets | 1,043,609 | 1,005,726 |
DEFERRED DEBITS | ' | ' |
Regulatory assets (Notes 1, 3, 4 and S-1) | 711,712 | 1,099,900 |
Income tax receivable (Notes 4 and S-1) | ' | 70,389 |
Other | 137,683 | 137,997 |
Total deferred debits | 849,395 | 1,308,286 |
TOTAL ASSETS | 13,508,686 | 13,379,615 |
CAPITALIZATION | ' | ' |
Common stock | 2,487,250 | 2,462,712 |
Retained earnings | 1,785,273 | 1,624,102 |
Accumulated other comprehensive (loss): | ' | ' |
Pension and other postretirement benefits (Note 8) | -54,995 | -64,416 |
Derivative instruments (Note 17) | -23,058 | -49,592 |
Total shareholders' equity | 4,194,470 | 3,972,806 |
Noncontrolling interests (Note 19) | 145,990 | 129,483 |
Total equity | 4,340,460 | 4,102,289 |
Long-term debt less current maturities (Note 6) | ' | 3,160,219 |
CURRENT LIABILITIES | ' | ' |
Short-term borrowings (Note 5) | 153,125 | 92,175 |
Current maturities of long-term debt (Note 6) | 540,424 | 122,828 |
Accounts payable | 284,516 | 221,312 |
Accrued taxes (Notes 4 and S-1) | 130,998 | 124,939 |
Accrued interest | 48,351 | 49,380 |
Common dividends payable | 62,528 | 59,789 |
Customer deposits | 76,101 | 79,689 |
Liabilities from risk management activities (Note 17) | 31,892 | 73,741 |
Regulatory liabilities (Note 3) | 99,273 | 88,116 |
Other current liabilities | 158,540 | 171,573 |
Total current liabilities | 1,618,644 | 1,083,542 |
DEFERRED CREDITS AND OTHER | ' | ' |
Deferred income taxes (Notes 4 and S-1) | 2,351,882 | 2,151,371 |
Regulatory liabilities (Notes 1, 3, 4, and S-1) | 801,297 | 759,201 |
Liability for asset retirements (Note 12) | 313,833 | 357,097 |
Liabilities for pension and other postretirement benefits (Note 8) | 513,628 | 1,058,755 |
Liabilities from risk management activities (Note 17) | 70,315 | 85,264 |
Customer advances | 114,480 | 109,359 |
Coal mine reclamation | 207,453 | 118,860 |
Deferred investment tax credit | 152,361 | 99,819 |
Unrecognized tax benefits (Notes 4 and S-1) | 42,209 | 71,135 |
Other | 185,659 | 183,835 |
Total deferred credits and other | 4,753,117 | 4,994,696 |
COMMITMENTS AND CONTINGENCIES (SEE NOTES) | ' | ' |
TOTAL LIABILITIES AND EQUITY | 13,508,686 | 13,379,615 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' |
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6 and 10) | ' | ' |
Plant in service and held for future use | 15,196,598 | 14,342,501 |
Accumulated depreciation and amortization | -5,296,501 | -4,925,990 |
Net | 9,900,097 | 9,416,511 |
Construction work in progress | 581,369 | 565,716 |
Palo Verde sale leaseback, net of accumulated depreciation of $225,925 and $222,055 (Note 19) | 125,125 | 128,995 |
Intangible assets, net of accumulated amortization of $439,703 and $411,543 | 157,534 | 161,995 |
Nuclear fuel, net of accumulated amortization of $146,057 and $133,950 | 124,557 | 122,778 |
Total property, plant and equipment | 10,888,682 | 10,395,995 |
INVESTMENTS AND OTHER ASSETS | ' | ' |
Nuclear decommissioning trust (Notes 14 and 20) | 642,007 | 570,625 |
Assets from risk management activities (Note 17) | 23,815 | 35,891 |
Other assets | 33,709 | 31,650 |
Total investments and other assets | 699,531 | 638,166 |
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | 3,725 | 3,499 |
Customer and other receivables | 299,055 | 274,815 |
Accrued unbilled revenues | 96,796 | 94,845 |
Allowance for doubtful accounts | -3,203 | -3,340 |
Materials and supplies (at average cost) | 221,682 | 218,096 |
Fossil fuel (at average cost) | 38,028 | 31,334 |
Income tax receivable | 135,179 | 589 |
Assets from risk management activities (Note 17) | 17,169 | 25,699 |
Deferred fuel and purchased power regulatory asset (Note 3) | 20,755 | 72,692 |
Other regulatory assets (Note 3) | 76,388 | 71,257 |
Deferred income taxes (Notes 4 and S-1) | -2,033 | 74,420 |
Deferred income taxes (Notes 4 and S-1) | 0 | 74,420 |
Other current assets | 39,153 | 37,077 |
Total current assets | 944,727 | 900,983 |
DEFERRED DEBITS | ' | ' |
Regulatory assets (Notes 1, 3, 4 and S-1) | 711,712 | 1,099,900 |
Income tax receivable (Notes 4 and S-1) | ' | 70,784 |
Unamortized debt issue costs | 21,860 | 22,492 |
Other | 114,865 | 114,222 |
Total deferred debits | 848,437 | 1,307,398 |
TOTAL ASSETS | 13,381,377 | 13,242,542 |
CAPITALIZATION | ' | ' |
Common stock | 178,162 | 178,162 |
Additional paid-in capital | 2,379,696 | 2,379,696 |
Retained earnings | 1,804,398 | 1,624,237 |
Accumulated other comprehensive (loss): | ' | ' |
Pension and other postretirement benefits (Note 8) | -30,313 | -39,503 |
Derivative instruments (Note 17) | -23,059 | -49,592 |
Total shareholders' equity | 4,308,884 | 4,093,000 |
Noncontrolling interests (Note 19) | 145,990 | 129,483 |
Total equity | 4,454,874 | 4,222,483 |
Long-term debt less current maturities (Note 6) | 2,671,465 | 3,074,088 |
Total capitalization | 7,126,339 | 7,296,571 |
CURRENT LIABILITIES | ' | ' |
Short-term borrowings (Note 5) | 153,125 | 92,175 |
Current maturities of long-term debt (Note 6) | 540,424 | 122,828 |
Accounts payable | 281,237 | 215,577 |
Accrued taxes (Notes 4 and S-1) | 122,460 | 116,700 |
Accrued interest | 48,132 | 49,135 |
Common dividends payable | 62,500 | 59,800 |
Customer deposits | 76,101 | 79,689 |
Deferred income taxes | 2,033 | ' |
Liabilities from risk management activities (Note 17) | 31,892 | 73,741 |
Liabilities for asset retirements (Note 12) | 32,896 | ' |
Regulatory liabilities (Note 3) | 99,273 | 88,116 |
Other current liabilities | 130,774 | 145,326 |
Total current liabilities | 1,580,847 | 1,043,087 |
DEFERRED CREDITS AND OTHER | ' | ' |
Deferred income taxes (Notes 4 and S-1) | 2,347,724 | 2,133,976 |
Regulatory liabilities (Notes 1, 3, 4, and S-1) | 801,297 | 759,201 |
Liability for asset retirements (Note 12) | 313,833 | 357,097 |
Liabilities for pension and other postretirement benefits (Note 8) | 476,017 | 1,017,556 |
Liabilities from risk management activities (Note 17) | 70,315 | 85,264 |
Customer advances | 114,480 | 109,359 |
Coal mine reclamation | 207,453 | 118,860 |
Deferred investment tax credit | 152,361 | 99,819 |
Unrecognized tax benefits (Notes 4 and S-1) | 42,209 | 70,932 |
Other | 148,502 | 150,820 |
Total deferred credits and other | 4,674,191 | 4,902,884 |
TOTAL LIABILITIES AND EQUITY | $13,381,377 | $13,242,542 |
CONSOLIDATED_BALANCE_SHEETS_AP1
CONSOLIDATED BALANCE SHEETS (APSC) (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6, and 10) | ' | ' |
Accumulated depreciation of Palo Verde sale leaseback | $225,925 | $222,055 |
Accumulated amortization on intangible assets | 439,703 | 411,543 |
Accumulated amortization on nuclear fuel | 146,057 | 133,950 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' |
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6, and 10) | ' | ' |
Accumulated depreciation of Palo Verde sale leaseback | 225,925 | 222,055 |
Accumulated amortization on intangible assets | 439,703 | 411,543 |
Accumulated amortization on nuclear fuel | $146,057 | $133,950 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (APSC) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $439,966 | $413,164 | $366,940 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization including nuclear fuel | 492,322 | 481,262 | 493,784 |
Deferred fuel and purchased power | 21,678 | 71,573 | 69,166 |
Deferred fuel and purchased power amortization | 31,190 | -116,716 | -155,157 |
Allowance for equity funds used during construction | -25,581 | -22,436 | -23,707 |
Deferred income taxes | 249,296 | 187,023 | 117,952 |
Deferred investment tax credit | 52,542 | 41,579 | 58,240 |
Change in derivative instruments fair value | 534 | -749 | 4,064 |
Changes in current assets and liabilities: | ' | ' | ' |
Customer and other receivables | -44,991 | 14,587 | 40,626 |
Accrued unbilled revenues | -1,951 | 30,394 | -21,947 |
Materials, supplies and fossil fuel | -11,878 | -23,043 | -23,398 |
Income tax receivable | -133,094 | -4,043 | 3,983 |
Other current assets | -17,913 | -27,352 | -3,079 |
Accounts payable | 45,414 | -96,600 | 58,346 |
Accrued taxes | 6,059 | 12,736 | 8,085 |
Other current liabilities | -7,513 | 23,869 | 20,358 |
Change in margin and collateral accounts - assets | 993 | 2,216 | 33,349 |
Change in margin and collateral accounts - liabilities | 12,355 | 137,785 | 29,731 |
Change in long-term regulatory liabilities | 64,473 | 13,539 | 37,009 |
Change in long-term income tax receivable | 137,270 | -1,756 | -3,530 |
Change in unrecognized tax benefits | -91,425 | -2,583 | 8,410 |
Change in other long-term assets | -41,757 | 6,872 | -41,722 |
Change in other long-term liabilities | -24,682 | 29,801 | 58,484 |
Net cash flow provided by operating activities | 1,153,307 | 1,171,122 | 1,125,583 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -1,016,322 | -889,551 | -884,350 |
Contributions in aid of construction | 41,090 | 49,876 | 38,096 |
Allowance for borrowed funds used during construction | -14,861 | -14,971 | -18,358 |
Proceeds from nuclear decommissioning trust sales | 446,025 | 417,603 | 497,780 |
Investment in nuclear decommissioning trust | -463,274 | -434,852 | -513,799 |
Proceeds from sale of life insurance policies | ' | ' | 55,444 |
Other | -2,059 | -1,099 | -1,931 |
Net cash flow used for investing activities | -1,009,401 | -872,994 | -782,007 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Issuance of long-term debt | 136,307 | 476,081 | 470,353 |
Repayment of long-term debt | -122,828 | -654,286 | -655,169 |
Short-term borrowings and payments - net | 60,950 | 92,175 | -16,600 |
Dividends paid on common stock | -235,244 | -225,075 | -221,728 |
Noncontrolling interests | -17,385 | -10,529 | -10,210 |
Net cash flow used for financing activities | -160,582 | -305,509 | -420,181 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | -16,676 | -7,381 | -76,605 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 26,202 | 33,583 | 110,188 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 9,526 | 26,202 | 33,583 |
Cash paid during the year for: | ' | ' | ' |
Income taxes, net of refunds | 18,537 | 2,543 | 10,324 |
Interest, net of amounts capitalized | 184,010 | 200,923 | 217,789 |
Significant non-cash investing and financing activities: | ' | ' | ' |
Accrued capital expenditures | 33,184 | 26,208 | 27,245 |
Dividends declared but not paid | 62,528 | 59,789 | ' |
Liabilities assumed related to acquisition of SCE's Four Corners' interest | 145,609 | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | 458,861 | 427,110 | 363,773 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization including nuclear fuel | 492,226 | 481,168 | 493,653 |
Deferred fuel and purchased power | 21,678 | 71,573 | 69,166 |
Deferred fuel and purchased power amortization | 31,190 | -116,716 | -155,157 |
Allowance for equity funds used during construction | -25,581 | -22,436 | -23,707 |
Deferred income taxes | 278,101 | 202,159 | 110,565 |
Deferred investment tax credit | 52,542 | 41,579 | 58,240 |
Change in derivative instruments fair value | 534 | -749 | 4,064 |
Changes in current assets and liabilities: | ' | ' | ' |
Customer and other receivables | -46,552 | 12,914 | 34,913 |
Accrued unbilled revenues | -1,951 | 30,394 | -21,947 |
Materials, supplies and fossil fuel | -11,878 | -23,043 | -23,398 |
Income tax receivable | -134,590 | -2,280 | 2,869 |
Other current assets | -17,112 | -27,745 | -5,473 |
Accounts payable | 47,870 | -97,395 | 73,369 |
Accrued taxes | 5,760 | 7,330 | 2,234 |
Other current liabilities | -9,005 | 6,070 | 18,762 |
Change in margin and collateral accounts - assets | 993 | 2,216 | 33,349 |
Change in margin and collateral accounts - liabilities | 12,355 | 137,785 | 29,731 |
Change in long-term regulatory liabilities | 64,473 | 13,539 | 37,009 |
Change in long-term income tax receivable | 137,665 | -1,756 | -3,530 |
Change in unrecognized tax benefits | -91,244 | -2,583 | 9,125 |
Change in other long-term assets | -46,043 | 1,391 | -41,788 |
Change in other long-term liabilities | -25,601 | 34,854 | 61,990 |
Net cash flow provided by operating activities | 1,194,691 | 1,175,379 | 1,127,812 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Capital expenditures | -1,016,322 | -889,551 | -878,546 |
Contributions in aid of construction | 41,090 | 49,876 | 38,096 |
Allowance for borrowed funds used during construction | -14,861 | -14,971 | -18,358 |
Proceeds from nuclear decommissioning trust sales | 446,025 | 417,603 | 497,780 |
Investment in nuclear decommissioning trust | -463,274 | -434,852 | -513,799 |
Proceeds from sale of life insurance policies | ' | ' | 44,183 |
Other | -2,067 | -1,099 | -3,306 |
Net cash flow used for investing activities | -1,009,409 | -872,994 | -833,950 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Issuance of long-term debt | 136,307 | 351,081 | 295,353 |
Repayment of long-term debt | -122,828 | -529,286 | -430,169 |
Short-term borrowings and payments - net | 60,950 | 92,175 | ' |
Dividends paid on common stock | -242,100 | -222,200 | -228,900 |
Noncontrolling interests | -17,385 | -10,529 | -10,210 |
Net cash flow used for financing activities | -185,056 | -318,759 | -373,926 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 226 | -16,374 | -80,064 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 3,499 | 19,873 | 99,937 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 3,725 | 3,499 | 19,873 |
Cash paid during the year for: | ' | ' | ' |
Income taxes, net of refunds | 7,524 | 1,196 | 25,975 |
Interest, net of amounts capitalized | 180,757 | 196,038 | 210,995 |
Significant non-cash investing and financing activities: | ' | ' | ' |
Accrued capital expenditures | 33,184 | 26,208 | 27,245 |
Dividends declared but not paid | 62,500 | 59,800 | ' |
Liabilities assumed related to acquisition of SCE's Four Corners' interest | $145,609 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CHA2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (APSC) (USD $) | Total | ARIZONA PUBLIC SERVICE COMPANY | COMMON STOCK | COMMON STOCK | ADDITIONAL PAID-IN CAPITAL | RETAINED EARNINGS | RETAINED EARNINGS | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS | COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER |
In Thousands, unless otherwise specified | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | |||||||
Balance at Dec. 31, 2010 | ' | ' | $2,421,372 | ' | ' | $1,423,961 | $1,403,390 | ($159,767) | ($136,295) | $91,899 | $91,084 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 339,473 | 336,249 | ' | ' | ' | 339,473 | 336,249 | ' | ' | ' | ' | 339,473 | 336,249 |
Dividends on common stock | ' | ' | ' | ' | ' | -228,951 | -228,900 | ' | ' | ' | ' | ' | ' |
Net income attributable to noncontrolling interests | 27,467 | 27,524 | ' | ' | ' | ' | ' | ' | ' | -27,467 | 27,524 | ' | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 7,605 | 10,704 | ' | ' | ' | ' | ' | 7,604 | 10,704 | ' | ' | 7,605 | 10,704 |
Total comprehensive income attributable to common shareholders | 347,078 | 346,953 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 347,078 | 346,953 |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,630 | -10,209 | ' | ' |
Other | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 3,930,586 | 4,051,406 | 2,444,247 | 178,162 | 2,379,696 | 1,534,483 | 1,510,740 | -152,163 | -125,591 | 108,736 | 108,399 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | -8,257 | -4,105 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 3,930,586 | 4,051,406 | 2,444,247 | 178,162 | 2,379,696 | 1,534,483 | 1,510,740 | -152,163 | -125,591 | 108,736 | 108,399 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 381,542 | 395,497 | ' | ' | ' | 381,542 | 395,497 | ' | ' | ' | ' | 381,542 | 395,497 |
Dividends on common stock | ' | ' | ' | ' | ' | -291,923 | -282,000 | ' | ' | ' | ' | ' | ' |
Net income attributable to noncontrolling interests | 31,622 | 31,613 | ' | ' | ' | ' | ' | ' | ' | -31,622 | 31,613 | ' | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 38,155 | 36,496 | ' | ' | ' | ' | ' | 38,155 | 36,496 | ' | ' | 38,155 | 36,496 |
Total comprehensive income attributable to common shareholders | 419,697 | 431,993 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 419,697 | 431,993 |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | -10,875 | -10,529 | ' | ' |
Balance at Dec. 31, 2012 | 4,102,289 | 4,222,483 | 2,466,923 | 178,162 | 2,379,696 | 1,624,102 | 1,624,237 | -114,008 | -89,095 | 129,483 | 129,483 | ' | ' |
Balance at Sep. 30, 2012 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 22,631 | 26,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 4,102,289 | 4,222,483 | 2,466,923 | 178,162 | 2,379,696 | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 24,444 | 26,042 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Mar. 31, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 4,102,289 | 4,222,483 | 2,466,923 | 178,162 | 2,379,696 | 1,624,102 | 1,624,237 | -114,008 | -89,095 | 129,483 | 129,483 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 406,074 | 424,969 | ' | ' | ' | 406,074 | 424,969 | ' | ' | ' | ' | 406,074 | 424,969 |
Dividends on common stock | ' | ' | ' | ' | ' | -244,903 | -244,800 | ' | ' | ' | ' | ' | ' |
Net income attributable to noncontrolling interests | 33,892 | 33,892 | ' | ' | ' | ' | ' | ' | ' | -33,892 | 33,892 | ' | ' |
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other comprehensive income attributable to common shareholders | 35,955 | 35,723 | ' | ' | ' | ' | ' | 35,955 | 35,723 | ' | ' | 35,955 | 35,723 |
Total comprehensive income attributable to common shareholders | 442,029 | 460,692 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 442,029 | 460,692 |
Net capital activities by noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | ' | -17,385 | -17,385 | ' | ' |
Other | ' | ' | ' | ' | ' | ' | -8 | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | 4,340,460 | 4,454,874 | 2,491,558 | 178,162 | 2,379,696 | 1,785,273 | 1,804,398 | -78,053 | -53,372 | 145,990 | 145,990 | ' | ' |
Balance at Sep. 30, 2013 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to common shareholders | 24,260 | 30,024 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $4,340,460 | $4,454,874 | $2,491,558 | $178,162 | $2,379,696 | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_APSC
Income Taxes (APSC) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Income Taxes | ' | ||||||||||
4. Income Taxes | |||||||||||
Certain assets and liabilities are reported differently for income tax purposes than they are for financial statement purposes. The tax effect of these differences is recorded as deferred taxes. We calculate deferred taxes using currently enacted income tax rates. | |||||||||||
APS has recorded regulatory assets and regulatory liabilities related to income taxes on its Balance Sheets in accordance with accounting guidance for regulated operations. The regulatory assets are for certain temporary differences, primarily the allowance for equity funds used during construction and pension and other postretirement benefits. The regulatory liabilities primarily relate to deferred taxes resulting from investment tax credits (“ITC”) and the change in income tax rates. | |||||||||||
In accordance with regulatory requirements, APS ITCs are deferred and are amortized over the life of the related property with such amortization applied as a credit to reduce current income tax expense in the statement of income. | |||||||||||
The $70 million long-term income tax receivable on the Consolidated Balance Sheets as of December 31, 2012 represented the anticipated refund related to an APS tax accounting method change approved by the IRS in the third quarter of 2009. On July 9, 2013, IRS guidance was released which provided clarification regarding the timing and amount of this cash receipt. As a result of this guidance, uncertain tax positions decreased $67 million during the third quarter. This decrease in uncertain tax positions resulted in a corresponding increase to the total anticipated refund due from the IRS and an offsetting increase in long-term deferred tax liabilities. Additionally, as a result of this IRS guidance, the resulting $137 million anticipated refund was reclassified to current income tax receivable. | |||||||||||
During the year ended December 31, 2013, the IRS finalized the examination of tax returns for the years ended December 31, 2008 and 2009, and the $137 million anticipated refund was reduced by approximately $4 million to reflect the outcome of this examination. On December 17, 2013, the Joint Committee on Taxation approved the anticipated refund. Cash related to this refund was received in the first quarter of 2014. | |||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS, resulting in a cumulative effect adjustment. To account for the adoption of these regulations, plant-related long-term deferred tax liabilities decreased by $84 million, with the offsetting decrease to current deferred income tax assets. Prior to the issuance of these regulations, this $84 million would have been repaid over 20 years through lower tax depreciation deductions. | |||||||||||
Net income associated with the Palo Verde sale leaseback VIEs is not subject to tax (see Note 19). As a result, there is no income tax expense associated with the VIEs recorded on the Consolidated Statements of Income. | |||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,422 | $ | 136,005 | $ | 127,595 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (108,099 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (826 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,422 | $ | 136,005 | |||||
Included in the balances of unrecognized tax benefits at December 31, 2013, 2012 and 2011 were approximately $10 million, $10 million and $8 million, respectively, of tax positions that, if recognized, would decrease our effective tax rate. | |||||||||||
As of the balance sheet date, the tax year ended December 31, 2010 and all subsequent tax years remain subject to examination by the IRS. With a few exceptions, we are no longer subject to state income tax examinations by tax authorities for years before 2010. | |||||||||||
We reflect interest and penalties, if any, on unrecognized tax benefits in the Consolidated Statements of Income as income tax expense. The amount of interest recognized in the Consolidated Statements of Income related to unrecognized tax benefits was a pre-tax benefit of $4 million for 2013, a pre-tax expense of $4 million for 2012, and a pre-tax expense of $3 million for 2011. | |||||||||||
The total amount of accrued liabilities for interest recognized in the Consolidated Balance Sheets related to unrecognized tax benefits was less than $1 million as of December 31, 2013, $13 million as of December 31, 2012 and $9 million as of December 31, 2011. To the extent that matters are settled favorably, this amount could reverse and decrease our effective tax rate. Additionally, as of December 31, 2013, we have recognized $5 million of interest income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS. | |||||||||||
The components of income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (81,784 | ) | $ | (3,493 | ) | $ | (310 | ) | ||
State | 10,537 | 8,395 | 15,140 | ||||||||
Total current | (71,247 | ) | 4,902 | 14,830 | |||||||
Deferred: | |||||||||||
Federal | 279,973 | 200,322 | 159,566 | ||||||||
State | 21,865 | 28,280 | 16,626 | ||||||||
Total deferred | 301,838 | 228,602 | 176,192 | ||||||||
Total income tax expense | 230,591 | 233,504 | 191,022 | ||||||||
Less: income tax expense (benefit) on discontinued operations | — | (3,813 | ) | 7,418 | |||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
The following chart compares pretax income from continuing operations at the 35% federal income tax rate to income tax expense — continuing operations (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 234,695 | $ | 229,709 | $ | 188,733 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 21,387 | 23,819 | 19,594 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,356 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,881 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,636 | ) | |||||
Other | (4,099 | ) | 529 | (9,029 | ) | ||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
The following table shows the net deferred income tax liability recognized on the Consolidated Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset | $ | 91,152 | $ | 152,191 | |||||||
Long-term liability | (2,351,882 | ) | (2,151,371 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
On February 17, 2011, Arizona enacted legislation (H.B. 2001) that included a four-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in Arizona. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013 APS has recorded a regulatory liability of $75 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
On April 4, 2013, New Mexico enacted legislation (H.B. 641) that included a five-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in New Mexico. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013, APS has recorded a regulatory liability of $2 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Risk management activities | $ | 44,920 | $ | 72,243 | |||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | 235,959 | 238,669 | |||||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Pension and other postretirement liabilities | 198,642 | 408,764 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 133,070 | 139,022 | |||||||||
Other | 148,492 | 68,844 | |||||||||
Total deferred tax assets | 951,242 | 1,082,084 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
As of December 31, 2013, the deferred tax assets for credit and loss carryforwards relate to federal general business credits of $131 million which first begin to expire in 2031, and other federal and state loss carryforwards of $2 million which first begin to expire in 2018. | |||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Income Taxes | ' | ||||||||||
S-1. Income Taxes | |||||||||||
APS is included in Pinnacle West’s consolidated tax return. However, when Pinnacle West allocates income taxes to APS, it is done based upon APS’s taxable income computed on a stand-alone basis, in accordance with the tax sharing agreement. | |||||||||||
Certain assets and liabilities are reported differently for income tax purposes than they are for financial statements purposes. The tax effect of these differences is recorded as deferred taxes. We calculate deferred taxes using currently enacted tax rates. | |||||||||||
APS has recorded regulatory assets and regulatory liabilities related to income taxes on its Balance Sheets in accordance with accounting guidance for regulated operations. The regulatory assets are for certain temporary differences, primarily the allowance for equity funds used during construction and pension and other postretirement benefits. The regulatory liabilities primarily relate to deferred taxes resulting from ITCs and the change in income tax rates. | |||||||||||
In accordance with regulatory requirements, APS ITCs are deferred and are amortized over the life of the related property, with such amortization applied as a credit to reduce current income tax expense in the statement of income. | |||||||||||
The $71 million long-term income tax receivable on APS’s Consolidated Balance Sheets as of December 31, 2012 represented the anticipated refund related to an APS tax accounting method change approved by the IRS in the third quarter of 2009. On July 9, 2013, IRS guidance was released which provided clarification regarding the timing and amount of this cash receipt. As a result of this guidance, uncertain tax positions decreased $67 million during the third quarter. This decrease in uncertain tax positions resulted in a corresponding increase to the total anticipated refund due from the IRS and an offsetting increase in long-term deferred tax liabilities. Additionally, as a result of this IRS guidance, the $138 million anticipated refund was reclassified to current income tax receivable. | |||||||||||
During the year ended December 31, 2013, the IRS finalized the examination of tax returns for the years ended December 31, 2008 and 2009, and the $138 million anticipated refund was reduced by approximately $2 million to reflect the outcome of this examination. On December 17, 2013, the Joint Committee on Taxation approved the anticipated refund. Cash related to this refund was received in the first quarter of 2014. | |||||||||||
On September 13, 2013, the U.S. Treasury Department released final income tax regulations on the deduction and capitalization of expenditures related to tangible property. These final regulations apply to tax years beginning on or after January 1, 2014. Several of the provisions within the regulations will require a tax accounting method change to be filed with the IRS resulting in a cumulative effect adjustment. To account for the adoption of these regulations plant-related long-term deferred tax liabilities decreased by $84 million, with the offsetting decrease to current deferred income tax assets. Prior to the issuance of these regulations, this $84 million would have been repaid over 20 years through lower tax depreciation deductions. | |||||||||||
Net income associated with the Palo Verde sale leaseback VIEs is not subject to tax (see Note 19). As a result, there is no income tax expense associated with the VIEs recorded on APS’s Consolidated Statements of Income. | |||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,241 | $ | 135,824 | $ | 126,698 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (107,918 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (110 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,241 | $ | 135,824 | |||||
Included in the balance of unrecognized tax benefits at December 31, 2013, 2012 and 2011 were approximately $10 million, $10 million and $8 million, respectively, of tax positions that, if recognized, would decrease our effective tax rate. | |||||||||||
As of the balance sheet date, the tax year ended December 31, 2010 and all subsequent tax years remain subject to examination by the IRS. With a few exceptions, we are no longer subject to state income tax examinations by tax authorities for years before 2010. | |||||||||||
We reflect interest and penalties, if any, on unrecognized tax benefits in the Statements of Income as income tax expense. The amount of interest recognized in the Statements of Income related to unrecognized tax benefits was a pre-tax benefit of $4 million for 2013, a pre-tax expense of $4 million for 2012 and a pre-tax expense of $3 million for 2011. | |||||||||||
The total amount of accrued liabilities for interest recognized in the Balance Sheets related to unrecognized tax benefits was less than $1 million as of December 31, 2013, $13 million as of December 31, 2012 and $9 million as of December 31, 2011. To the extent that matters are settled favorably, this amount could be reversed and decrease our effective tax rate. Additionally, as of December 31, 2013, we have recognized $5 million of interest income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS. | |||||||||||
The components of APS’s income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (97,531 | ) | $ | (11,650 | ) | $ | 4,633 | |||
State | 11,983 | 12,308 | 19,104 | ||||||||
Total current | (85,548 | ) | 658 | 23,737 | |||||||
Deferred: | |||||||||||
Federal | 305,389 | 216,367 | 154,632 | ||||||||
State | 25,254 | 27,371 | 14,173 | ||||||||
Total deferred | 330,643 | 243,738 | 168,805 | ||||||||
Total income tax expense | $ | 245,095 | $ | 244,396 | $ | 192,542 | |||||
On the APS Statements of Income, federal and state income taxes are allocated between operating income and other income. | |||||||||||
The following chart compares APS’s pretax income at the 35% federal income tax rate to income tax expense (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 246,384 | $ | 235,027 | $ | 194,710 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 23,970 | 25,379 | 21,139 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,231 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,880 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,633 | ) | |||||
Other | (3,992 | ) | 730 | (7,617 | ) | ||||||
Income tax expense | $ | 245,095 | $ | 244,396 | $ | 192,542 | |||||
The following table shows the net deferred income tax liability recognized on the APS Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset (liability) | $ | (2,033 | ) | $ | 74,420 | ||||||
Long-term liability | (2,347,724 | ) | (2,133,976 | ) | |||||||
Deferred income taxes — net | $ | (2,349,757 | ) | $ | (2,059,556 | ) | |||||
On February 17, 2011, Arizona enacted legislation (H.B. 2001) that included a four-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in Arizona. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013, APS has recorded a regulatory liability of $75 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
On April 4, 2013, New Mexico enacted legislation (H.B. 641) that included a five-year phase-in of corporate income tax rate reductions beginning in 2014. As a result of these tax rate reductions, Pinnacle West has revised the tax rate applicable to reversing temporary items in New Mexico. In accordance with accounting for regulated companies, the benefit of this rate reduction is substantially offset by a regulatory liability. As of December 31, 2013, APS has recorded a regulatory liability of $2 million, with a corresponding decrease in accumulated deferred income tax liabilities, to reflect the impact of this change in tax law. | |||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | $ | 235,959 | $ | 238,669 | |||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Risk management activities | 44,920 | 72,243 | |||||||||
Pension and other postretirement liabilities | 186,213 | 392,486 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 38,183 | 52,441 | |||||||||
Other | 166,781 | 111,327 | |||||||||
Total deferred tax assets | 862,215 | 1,021,708 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,349,757 | ) | $ | (2,059,556 | ) | |||||
As of December 31, 2013, the deferred tax assets for credit and loss carryforwards relate primarily to federal general business credits which first begin to expire in 2031. | |||||||||||
Selected_Quarterly_Financial_D3
Selected Quarterly Financial Data (Unaudited) (APSC) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
13. Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
Consolidated quarterly financial information for 2013 and 2012 is provided in the tables below (dollars in thousands, except per share amounts). Weather conditions cause significant seasonal fluctuations in our revenues; therefore, results for interim periods do not necessarily represent results expected for the year. | |||||||||||||||||
2013 Quarter Ended | 2013 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 686,652 | $ | 915,822 | $ | 1,152,392 | $ | 699,762 | $ | 3,454,628 | |||||||
Operations and maintenance | 223,250 | 229,300 | 233,323 | 238,854 | 924,727 | ||||||||||||
Operating income | 86,923 | 259,812 | 415,688 | 83,900 | 846,323 | ||||||||||||
Income taxes | 12,469 | 77,043 | 131,912 | 9,167 | 230,591 | ||||||||||||
Income from continuing operations | 32,836 | 139,598 | 234,718 | 32,814 | 439,966 | ||||||||||||
Net income attributable to common shareholders | 24,444 | 131,207 | 226,163 | 24,260 | 406,074 | ||||||||||||
Earnings Per Share: | |||||||||||||||||
Income from continuing operations attributable to common shareholders — Basic | $ | 0.22 | $ | 1.19 | $ | 2.06 | $ | 0.22 | $ | 3.69 | |||||||
Net income attributable to common shareholders — Basic | 0.22 | 1.19 | 2.06 | 0.22 | 3.69 | ||||||||||||
Income from continuing operations attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
Net income attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
2012 Quarter Ended | 2012 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 620,631 | $ | 878,576 | $ | 1,109,475 | $ | 693,122 | $ | 3,301,804 | |||||||
Operations and maintenance | 210,663 | 216,236 | 220,729 | 237,141 | 884,769 | ||||||||||||
Operating income | 48,007 | 254,489 | 447,970 | 101,289 | 851,755 | ||||||||||||
Income taxes | (4,645 | ) | 76,689 | 147,116 | 18,157 | 237,317 | |||||||||||
Income from continuing operations | 284 | 130,930 | 252,874 | 34,905 | 418,993 | ||||||||||||
Net income (loss) attributable to common shareholders | (8,257 | ) | 122,345 | 244,823 | 22,631 | 381,542 | |||||||||||
Earnings Per Share: | |||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders — Basic | $ | (0.07 | ) | $ | 1.12 | $ | 2.23 | $ | 0.24 | $ | 3.54 | ||||||
Net income (loss) attributable to common shareholders — Basic | (0.08 | ) | 1.12 | 2.23 | 0.21 | 3.48 | |||||||||||
Income (loss) from continuing operations attributable to common shareholders — Diluted | (0.07 | ) | 1.12 | 2.21 | 0.24 | 3.5 | |||||||||||
Net income (loss) attributable to common shareholders — Diluted | (0.08 | ) | 1.11 | 2.21 | 0.2 | 3.45 | |||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
S-2. Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
Quarterly financial information for 2013 and 2012 is as follows (dollars in thousands): | |||||||||||||||||
2013 Quarter Ended, | 2013 | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | |||||||||||||
Operating revenues | $ | 685,827 | $ | 915,065 | $ | 1,151,535 | $ | 698,824 | $ | 3,451,251 | |||||||
Operations and maintenance | 220,752 | 224,950 | 222,617 | 229,505 | 897,824 | ||||||||||||
Operating income | 74,862 | 183,728 | 284,251 | 79,024 | 621,865 | ||||||||||||
Net income attributable to common shareholder | 26,042 | 133,949 | 234,954 | 30,024 | 424,969 | ||||||||||||
2012 Quarter Ended, | 2012 | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | |||||||||||||
Operating revenues | $ | 620,248 | $ | 877,587 | $ | 1,108,623 | $ | 687,031 | $ | 3,293,489 | |||||||
Operations and maintenance | 208,447 | 213,746 | 218,403 | 233,320 | 873,916 | ||||||||||||
Operating income | 53,995 | 176,821 | 296,945 | 77,768 | 605,529 | ||||||||||||
Net income (loss) attributable to common shareholder | (4,105 | ) | 124,928 | 247,831 | 26,843 | 395,497 | |||||||||||
Other_Income_and_Other_Expense3
Other Income and Other Expense (APSC) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Other Income and Other Expense | ' | ||||||||||
18. Other Income and Other Expense | |||||||||||
The following table provides detail of other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,629 | $ | 1,239 | $ | 1,850 | |||||
Investment gains — net | — | — | 1,165 | ||||||||
Miscellaneous | 75 | 367 | 96 | ||||||||
Total other income | $ | 1,704 | $ | 1,606 | $ | 3,111 | |||||
Other expense: | |||||||||||
Non-operating costs | $ | (8,207 | ) | $ | (7,777 | ) | $ | (7,037 | ) | ||
Investment loss — net | (3,711 | ) | (2,453 | ) | — | ||||||
Miscellaneous | (4,106 | ) | (9,612 | ) | (3,414 | ) | |||||
Total other expense | $ | (16,024 | ) | $ | (19,842 | ) | $ | (10,451 | ) | ||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Other Income and Other Expense | ' | ||||||||||
S-3. Other Income and Other Expense | |||||||||||
The following table provides detail of APS’s other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,234 | $ | 310 | $ | 406 | |||||
Investment gains — net | — | — | 1,418 | ||||||||
Miscellaneous | 2,662 | 2,558 | 3,247 | ||||||||
Total other income | $ | 3,896 | $ | 2,868 | $ | 5,071 | |||||
Other expense: | |||||||||||
Non-operating costs (a) | $ | (9,626 | ) | $ | (8,706 | ) | $ | (8,810 | ) | ||
Asset dispositions | (4,992 | ) | (1,511 | ) | (1,352 | ) | |||||
Miscellaneous | (5,831 | ) | (10,933 | ) | (5,166 | ) | |||||
Total other expense | $ | (20,449 | ) | $ | (21,150 | ) | $ | (15,328 | ) | ||
(a) As defined by FERC, includes below-the-line non-operating utility income and expense (items excluded from utility rate recovery). | |||||||||||
Changes_in_Accumulated_Other_C3
Changes in Accumulated Other Comprehensive Loss (APSC) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||
21. Changes in Accumulated Other Comprehensive Loss | |||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (64,416 | ) | $ | (114,008 | ) | ||
OCI (loss) before reclassifications | (213 | ) | 5,594 | 5,381 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,827 | (b) | 30,574 | ||||||
Net current period OCI | 26,534 | 9,421 | 35,955 | ||||||||
Ending balance | $ | (23,058 | ) | $ | (54,995 | ) | $ | (78,053 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Changes in Accumulated Other Comprehensive Loss | ' | ||||||||||
S-4. Changes in Accumulated Other Comprehensive Loss | |||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (39,503 | ) | $ | (89,095 | ) | ||
OCI (loss) before reclassifications | (214 | ) | 5,387 | 5,173 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,803 | (b) | 30,550 | ||||||
Net current period OCI | 26,533 | 9,190 | 35,723 | ||||||||
Ending balance | $ | (23,059 | ) | $ | (30,313 | ) | $ | (53,372 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
SCHEDULE_II_RESERVE_FOR_UNCOLL2
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES (APSC) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES | ' | ||||||||||||||||
PINNACLE WEST CAPITAL CORPORATION | |||||||||||||||||
SCHEDULE II — RESERVE FOR UNCOLLECTIBLES | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Additions | |||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | ||||||||||||
beginning | cost and | to other | at end of | ||||||||||||||
of period | expenses | accounts | period | ||||||||||||||
Reserve for uncollectibles: | |||||||||||||||||
2013 | $ | 3,340 | $ | 4,923 | $ | — | $ | 5,060 | $ | 3,203 | |||||||
2012 | 3,748 | 5,290 | — | 5,698 | 3,340 | ||||||||||||
2011 | 4,709 | 5,672 | — | 6,633 | 3,748 | ||||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||||||||
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES | ' | ||||||||||||||||
ARIZONA PUBLIC SERVICE COMPANY | |||||||||||||||||
SCHEDULE II — RESERVE FOR UNCOLLECTIBLES | |||||||||||||||||
(dollars in thousands) | |||||||||||||||||
Column A | Column B | Column C | Column D | Column E | |||||||||||||
Additions | |||||||||||||||||
Description | Balance at | Charged to | Charged | Deductions | Balance | ||||||||||||
beginning | cost and | to other | at end of | ||||||||||||||
of period | expenses | accounts | period | ||||||||||||||
Reserve for uncollectibles: | |||||||||||||||||
2013 | $ | 3,340 | $ | 4,923 | $ | — | $ | 5,060 | $ | 3,203 | |||||||
2012 | 3,748 | 5,290 | — | 5,698 | 3,340 | ||||||||||||
2011 | 4,376 | 5,751 | — | 6,379 | 3,748 | ||||||||||||
Income_Taxes_APSC_Tables
Income Taxes (APSC) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year | ' | ||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,422 | $ | 136,005 | $ | 127,595 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (108,099 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (826 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,422 | $ | 136,005 | |||||
Components of income tax expense | ' | ||||||||||
The components of income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (81,784 | ) | $ | (3,493 | ) | $ | (310 | ) | ||
State | 10,537 | 8,395 | 15,140 | ||||||||
Total current | (71,247 | ) | 4,902 | 14,830 | |||||||
Deferred: | |||||||||||
Federal | 279,973 | 200,322 | 159,566 | ||||||||
State | 21,865 | 28,280 | 16,626 | ||||||||
Total deferred | 301,838 | 228,602 | 176,192 | ||||||||
Total income tax expense | 230,591 | 233,504 | 191,022 | ||||||||
Less: income tax expense (benefit) on discontinued operations | — | (3,813 | ) | 7,418 | |||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
Comparison of pretax income from continuing operations at the federal income tax rate to income tax expense - continuing operations | ' | ||||||||||
The following chart compares pretax income from continuing operations at the 35% federal income tax rate to income tax expense — continuing operations (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 234,695 | $ | 229,709 | $ | 188,733 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 21,387 | 23,819 | 19,594 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,356 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,881 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,636 | ) | |||||
Other | (4,099 | ) | 529 | (9,029 | ) | ||||||
Income tax expense — continuing operations | $ | 230,591 | $ | 237,317 | $ | 183,604 | |||||
Net deferred income tax liability recognized on the Balance Sheets | ' | ||||||||||
The following table shows the net deferred income tax liability recognized on the Consolidated Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset | $ | 91,152 | $ | 152,191 | |||||||
Long-term liability | (2,351,882 | ) | (2,151,371 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
Components of the net deferred income tax liability | ' | ||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Risk management activities | $ | 44,920 | $ | 72,243 | |||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | 235,959 | 238,669 | |||||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Pension and other postretirement liabilities | 198,642 | 408,764 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 133,070 | 139,022 | |||||||||
Other | 148,492 | 68,844 | |||||||||
Total deferred tax assets | 951,242 | 1,082,084 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,260,730 | ) | $ | (1,999,180 | ) | |||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year | ' | ||||||||||
The following is a tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year that are included in accrued taxes and unrecognized tax benefits (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Total unrecognized tax benefits, January 1 | $ | 133,241 | $ | 135,824 | $ | 126,698 | |||||
Additions for tax positions of the current year | 3,516 | 5,167 | 10,915 | ||||||||
Additions for tax positions of prior years | 13,158 | — | — | ||||||||
Reductions for tax positions of prior years for: | |||||||||||
Changes in judgment | (107,918 | ) | (7,729 | ) | (1,555 | ) | |||||
Settlements with taxing authorities | — | — | (124 | ) | |||||||
Lapses of applicable statute of limitations | — | (21 | ) | (110 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 41,997 | $ | 133,241 | $ | 135,824 | |||||
Components of income tax expense | ' | ||||||||||
The components of APS’s income tax expense are as follows (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Current: | |||||||||||
Federal | $ | (97,531 | ) | $ | (11,650 | ) | $ | 4,633 | |||
State | 11,983 | 12,308 | 19,104 | ||||||||
Total current | (85,548 | ) | 658 | 23,737 | |||||||
Deferred: | |||||||||||
Federal | 305,389 | 216,367 | 154,632 | ||||||||
State | 25,254 | 27,371 | 14,173 | ||||||||
Total deferred | 330,643 | 243,738 | 168,805 | ||||||||
Total income tax expense | $ | 245,095 | $ | 244,396 | $ | 192,542 | |||||
Comparison of pretax income from continuing operations at the federal income tax rate to income tax expense - continuing operations | ' | ||||||||||
The following chart compares APS’s pretax income at the 35% federal income tax rate to income tax expense (dollars in thousands): | |||||||||||
Year Ended December 31, | |||||||||||
2013 | 2012 | 2011 | |||||||||
Federal income tax expense at 35% statutory rate | $ | 246,384 | $ | 235,027 | $ | 194,710 | |||||
Increases (reductions) in tax expense resulting from: | |||||||||||
State income tax net of federal income tax benefit | 23,970 | 25,379 | 21,139 | ||||||||
Credits and favorable adjustments related to prior years resolved in current year | (3,231 | ) | — | — | |||||||
Medicare Subsidy Part-D | 823 | 483 | 823 | ||||||||
Allowance for equity funds used during construction (see Note 1) | (6,997 | ) | (6,158 | ) | (6,880 | ) | |||||
Palo Verde VIE noncontrolling interest (see Note 19) | (11,862 | ) | (11,065 | ) | (9,633 | ) | |||||
Other | (3,992 | ) | 730 | (7,617 | ) | ||||||
Income tax expense | $ | 245,095 | $ | 244,396 | $ | 192,542 | |||||
Net deferred income tax liability recognized on the Balance Sheets | ' | ||||||||||
The following table shows the net deferred income tax liability recognized on the APS Balance Sheets (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
Current asset (liability) | $ | (2,033 | ) | $ | 74,420 | ||||||
Long-term liability | (2,347,724 | ) | (2,133,976 | ) | |||||||
Deferred income taxes — net | $ | (2,349,757 | ) | $ | (2,059,556 | ) | |||||
Components of the net deferred income tax liability | ' | ||||||||||
The components of the net deferred income tax liability were as follows (dollars in thousands): | |||||||||||
December 31, | |||||||||||
2013 | 2012 | ||||||||||
DEFERRED TAX ASSETS | |||||||||||
Regulatory liabilities: | |||||||||||
Asset retirement obligation and removal costs | $ | 235,959 | $ | 238,669 | |||||||
Unamortized investment tax credits | 82,116 | 53,837 | |||||||||
Other | 42,609 | 33,764 | |||||||||
Risk management activities | 44,920 | 72,243 | |||||||||
Pension and other postretirement liabilities | 186,213 | 392,486 | |||||||||
Renewable energy incentives | 65,434 | 66,941 | |||||||||
Credit and loss carryforwards | 38,183 | 52,441 | |||||||||
Other | 166,781 | 111,327 | |||||||||
Total deferred tax assets | 862,215 | 1,021,708 | |||||||||
DEFERRED TAX LIABILITIES | |||||||||||
Plant-related | (2,903,730 | ) | (2,584,166 | ) | |||||||
Risk management activities | (16,191 | ) | (23,940 | ) | |||||||
Regulatory assets: | |||||||||||
Allowance for equity funds used during construction | (43,058 | ) | (37,899 | ) | |||||||
Deferred fuel and purchased power | (8,282 | ) | (28,858 | ) | |||||||
Deferred fuel and purchased power — mark-to-market | (13,343 | ) | (15,796 | ) | |||||||
Pension and other postretirement benefits | (129,250 | ) | (316,757 | ) | |||||||
Other | (93,202 | ) | (68,170 | ) | |||||||
Other | (4,916 | ) | (5,678 | ) | |||||||
Total deferred tax liabilities | (3,211,972 | ) | (3,081,264 | ) | |||||||
Deferred income taxes — net | $ | (2,349,757 | ) | $ | (2,059,556 | ) | |||||
Selected_Quarterly_Financial_D4
Selected Quarterly Financial Data (Unaudited) (APSC) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Schedule of quarterly financial information | ' | ||||||||||||||||
Consolidated quarterly financial information for 2013 and 2012 is provided in the tables below (dollars in thousands, except per share amounts). | |||||||||||||||||
2013 Quarter Ended | 2013 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 686,652 | $ | 915,822 | $ | 1,152,392 | $ | 699,762 | $ | 3,454,628 | |||||||
Operations and maintenance | 223,250 | 229,300 | 233,323 | 238,854 | 924,727 | ||||||||||||
Operating income | 86,923 | 259,812 | 415,688 | 83,900 | 846,323 | ||||||||||||
Income taxes | 12,469 | 77,043 | 131,912 | 9,167 | 230,591 | ||||||||||||
Income from continuing operations | 32,836 | 139,598 | 234,718 | 32,814 | 439,966 | ||||||||||||
Net income attributable to common shareholders | 24,444 | 131,207 | 226,163 | 24,260 | 406,074 | ||||||||||||
Earnings Per Share: | |||||||||||||||||
Income from continuing operations attributable to common shareholders — Basic | $ | 0.22 | $ | 1.19 | $ | 2.06 | $ | 0.22 | $ | 3.69 | |||||||
Net income attributable to common shareholders — Basic | 0.22 | 1.19 | 2.06 | 0.22 | 3.69 | ||||||||||||
Income from continuing operations attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
Net income attributable to common shareholders — Diluted | 0.22 | 1.18 | 2.04 | 0.22 | 3.66 | ||||||||||||
2012 Quarter Ended | 2012 | ||||||||||||||||
March 31, | June 30, | Sept. 30, | Dec. 31, | Total | |||||||||||||
Operating revenues | $ | 620,631 | $ | 878,576 | $ | 1,109,475 | $ | 693,122 | $ | 3,301,804 | |||||||
Operations and maintenance | 210,663 | 216,236 | 220,729 | 237,141 | 884,769 | ||||||||||||
Operating income | 48,007 | 254,489 | 447,970 | 101,289 | 851,755 | ||||||||||||
Income taxes | (4,645 | ) | 76,689 | 147,116 | 18,157 | 237,317 | |||||||||||
Income from continuing operations | 284 | 130,930 | 252,874 | 34,905 | 418,993 | ||||||||||||
Net income (loss) attributable to common shareholders | (8,257 | ) | 122,345 | 244,823 | 22,631 | 381,542 | |||||||||||
Earnings Per Share: | |||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders — Basic | $ | (0.07 | ) | $ | 1.12 | $ | 2.23 | $ | 0.24 | $ | 3.54 | ||||||
Net income (loss) attributable to common shareholders — Basic | (0.08 | ) | 1.12 | 2.23 | 0.21 | 3.48 | |||||||||||
Income (loss) from continuing operations attributable to common shareholders — Diluted | (0.07 | ) | 1.12 | 2.21 | 0.24 | 3.5 | |||||||||||
Net income (loss) attributable to common shareholders — Diluted | (0.08 | ) | 1.11 | 2.21 | 0.2 | 3.45 | |||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||||||||
Schedule of quarterly financial information | ' | ||||||||||||||||
Quarterly financial information for 2013 and 2012 is as follows (dollars in thousands): | |||||||||||||||||
2013 Quarter Ended, | 2013 | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | |||||||||||||
Operating revenues | $ | 685,827 | $ | 915,065 | $ | 1,151,535 | $ | 698,824 | $ | 3,451,251 | |||||||
Operations and maintenance | 220,752 | 224,950 | 222,617 | 229,505 | 897,824 | ||||||||||||
Operating income | 74,862 | 183,728 | 284,251 | 79,024 | 621,865 | ||||||||||||
Net income attributable to common shareholder | 26,042 | 133,949 | 234,954 | 30,024 | 424,969 | ||||||||||||
2012 Quarter Ended, | 2012 | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | |||||||||||||
Operating revenues | $ | 620,248 | $ | 877,587 | $ | 1,108,623 | $ | 687,031 | $ | 3,293,489 | |||||||
Operations and maintenance | 208,447 | 213,746 | 218,403 | 233,320 | 873,916 | ||||||||||||
Operating income | 53,995 | 176,821 | 296,945 | 77,768 | 605,529 | ||||||||||||
Net income (loss) attributable to common shareholder | (4,105 | ) | 124,928 | 247,831 | 26,843 | 395,497 | |||||||||||
Other_Income_and_Other_Expense4
Other Income and Other Expense (APSC) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Detail of other income and other expense | ' | ||||||||||
The following table provides detail of other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,629 | $ | 1,239 | $ | 1,850 | |||||
Investment gains — net | — | — | 1,165 | ||||||||
Miscellaneous | 75 | 367 | 96 | ||||||||
Total other income | $ | 1,704 | $ | 1,606 | $ | 3,111 | |||||
Other expense: | |||||||||||
Non-operating costs | $ | (8,207 | ) | $ | (7,777 | ) | $ | (7,037 | ) | ||
Investment loss — net | (3,711 | ) | (2,453 | ) | — | ||||||
Miscellaneous | (4,106 | ) | (9,612 | ) | (3,414 | ) | |||||
Total other expense | $ | (16,024 | ) | $ | (19,842 | ) | $ | (10,451 | ) | ||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Detail of other income and other expense | ' | ||||||||||
The following table provides detail of APS’s other income and other expense for 2013, 2012 and 2011 (dollars in thousands): | |||||||||||
2013 | 2012 | 2011 | |||||||||
Other income: | |||||||||||
Interest income | $ | 1,234 | $ | 310 | $ | 406 | |||||
Investment gains — net | — | — | 1,418 | ||||||||
Miscellaneous | 2,662 | 2,558 | 3,247 | ||||||||
Total other income | $ | 3,896 | $ | 2,868 | $ | 5,071 | |||||
Other expense: | |||||||||||
Non-operating costs (a) | $ | (9,626 | ) | $ | (8,706 | ) | $ | (8,810 | ) | ||
Asset dispositions | (4,992 | ) | (1,511 | ) | (1,352 | ) | |||||
Miscellaneous | (5,831 | ) | (10,933 | ) | (5,166 | ) | |||||
Total other expense | $ | (20,449 | ) | $ | (21,150 | ) | $ | (15,328 | ) | ||
(a) As defined by FERC, includes below-the-line non-operating utility income and expense (items excluded from utility rate recovery). | |||||||||||
Changes_in_Accumulated_Other_C4
Changes in Accumulated Other Comprehensive Loss (APSC) (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Schedule of changes in accumulated other comprehensive loss including reclassification adjustments, by component | ' | ||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (64,416 | ) | $ | (114,008 | ) | ||
OCI (loss) before reclassifications | (213 | ) | 5,594 | 5,381 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,827 | (b) | 30,574 | ||||||
Net current period OCI | 26,534 | 9,421 | 35,955 | ||||||||
Ending balance | $ | (23,058 | ) | $ | (54,995 | ) | $ | (78,053 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
ARIZONA PUBLIC SERVICE COMPANY | ' | ||||||||||
Schedule of changes in accumulated other comprehensive loss including reclassification adjustments, by component | ' | ||||||||||
The following table shows the changes in accumulated other comprehensive loss, including reclassification adjustments, net of tax, by component for the year ended December 31, 2013 (dollars in thousands): | |||||||||||
Year Ended December 31, 2013 | |||||||||||
Derivative | Pension and | Total | |||||||||
Instruments | Other | ||||||||||
Postretirement | |||||||||||
Benefits | |||||||||||
Beginning balance | $ | (49,592 | ) | $ | (39,503 | ) | $ | (89,095 | ) | ||
OCI (loss) before reclassifications | (214 | ) | 5,387 | 5,173 | |||||||
Amounts reclassified from accumulated other comprehensive loss | 26,747 | (a) | 3,803 | (b) | 30,550 | ||||||
Net current period OCI | 26,533 | 9,190 | 35,723 | ||||||||
Ending balance | $ | (23,059 | ) | $ | (30,313 | ) | $ | (53,372 | ) | ||
(a) These amounts represent realized gains and losses and are included in the computation of fuel and purchased power costs and are subject to the PSA. See Note 17. | |||||||||||
(b) These amounts primarily represent amortization of actuarial loss, and are included in the computation of net periodic pension cost. See Note 8. | |||||||||||
Income_Taxes_APSC_Details
Income Taxes (APSC) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 13, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2009 | Dec. 31, 2013 | |
Palo Verde VIE | Maximum | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | |||||
Maximum | ||||||||||||||
Income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term income tax receivables | ' | ' | $70,389,000 | ' | ' | ' | ' | ' | ' | $70,784,000 | ' | ' | $71,000,000 | ' |
Decrease in uncertain tax positions | 67,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 67,000,000 | ' | ' |
Income tax receivable that will be reclassified from long term to short-term | ' | 137,000,000 | ' | ' | ' | ' | ' | ' | 138,000,000 | ' | ' | ' | ' | ' |
Anticipated refund reduction amount | ' | -4,000,000 | ' | ' | ' | ' | ' | -4,000,000 | -4,000,000 | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to adoption of regulations | -84,000,000 | ' | ' | ' | ' | ' | -84,000,000 | ' | ' | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to rate changes | ' | -75,000,000 | ' | ' | ' | ' | ' | -2,000,000 | -2,000,000 | ' | ' | ' | ' | ' |
Period over which deferred income tax liability would have been repaid | ' | '20 years | ' | ' | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' |
Income tax expense associates with the VIE's | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tabular reconciliation of the total amounts of unrecognized tax benefits, excluding interest and penalties, at the beginning and end of the year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized tax benefits at the beginning of the year | ' | 133,422,000 | 136,005,000 | 127,595,000 | ' | ' | ' | ' | 133,241,000 | 135,824,000 | 126,698,000 | ' | ' | ' |
Additions for tax positions of the current year | ' | 3,516,000 | 5,167,000 | 10,915,000 | ' | ' | ' | ' | 3,516,000 | 5,167,000 | 10,915,000 | ' | ' | ' |
Additions for tax positions of prior years | ' | 13,158,000 | ' | ' | ' | ' | ' | ' | 13,158,000 | ' | ' | ' | ' | ' |
Reductions for tax positions of prior years for: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Changes in judgment | ' | -108,099,000 | -7,729,000 | -1,555,000 | ' | ' | ' | ' | -107,918,000 | -7,729,000 | -1,555,000 | ' | ' | ' |
Settlements with taxing authorities | ' | ' | ' | -124,000 | ' | ' | ' | ' | ' | ' | -124,000 | ' | ' | ' |
Lapses of applicable statute of limitations | ' | ' | -21,000 | -826,000 | ' | ' | ' | ' | ' | -21,000 | -110,000,000 | ' | ' | ' |
Total unrecognized tax benefits at the end of the year | ' | 41,997,000 | 133,422,000 | 136,005,000 | ' | ' | ' | 41,997,000 | 41,997,000 | 133,241,000 | 135,824,000 | ' | ' | ' |
Unrecognized tax benefits if recognized, would decrease effective tax rate | ' | 10,000,000 | 10,000,000 | 8,000,000 | ' | ' | ' | 10,000,000 | 10,000,000 | 10,000,000 | 8,000,000 | ' | ' | ' |
Pre-tax interest benefit related to unrecognized tax benefits | ' | 4,000,000 | 4,000,000 | 3,000,000 | ' | ' | ' | ' | 4,000,000 | 4,000,000 | 3,000,000 | ' | ' | ' |
Accrued liabilities for interest related to unrecognized tax benefits | ' | ' | 13,000,000 | 9,000,000 | ' | 1,000,000 | ' | ' | ' | 13,000,000 | 9,000,000 | ' | ' | 1,000,000 |
Interest income to be received on the overpayment of income taxes for certain adjustments that we have filed, or will file, with the IRS | ' | $5,000,000 | ' | ' | ' | ' | ' | $5,000,000 | $5,000,000 | ' | ' | ' | ' | ' |
Income_Taxes_APSC_Details_2
Income Taxes (APSC) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 13, 2013 | Apr. 04, 2013 | Feb. 17, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ARIZONA PUBLIC SERVICE COMPANY | ||||||||||||
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | ($81,784,000) | ($3,493,000) | ($310,000) | ' | ' | ' | ' | ($97,531,000) | ($11,650,000) | $4,633,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 10,537,000 | 8,395,000 | 15,140,000 | ' | ' | ' | ' | 11,983,000 | 12,308,000 | 19,104,000 |
Total current | ' | ' | ' | ' | ' | ' | ' | ' | -71,247,000 | 4,902,000 | 14,830,000 | ' | ' | ' | ' | -85,548,000 | 658,000 | 23,737,000 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 279,973,000 | 200,322,000 | 159,566,000 | ' | ' | ' | ' | 305,389,000 | 216,367,000 | 154,632,000 |
State | ' | ' | ' | ' | ' | ' | ' | ' | 21,865,000 | 28,280,000 | 16,626,000 | ' | ' | ' | ' | 25,254,000 | 27,371,000 | 14,173,000 |
Total deferred | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 330,643,000 | 243,738,000 | 168,805,000 |
Income tax expense - continuing operations | 9,167,000 | 131,912,000 | 77,043,000 | 12,469,000 | 18,157,000 | 147,116,000 | 76,689,000 | -4,645,000 | 230,591,000 | 237,317,000 | 183,604,000 | ' | ' | ' | ' | 245,095,000 | 244,396,000 | 192,542,000 |
Comparison of pretax income from continuing operations at the federal income tax rate to income tax expense - continuing operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% | ' | ' | ' | ' | 35.00% | 35.00% | 35.00% |
Federal income tax expense at 35% statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | 234,695,000 | 229,709,000 | 188,733,000 | ' | ' | ' | ' | 246,384,000 | 235,027,000 | 194,710,000 |
Increases (reductions) in tax expense resulting from: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
State income tax net of federal income tax benefit | ' | ' | ' | ' | ' | ' | ' | ' | 21,387,000 | 23,819,000 | 19,594,000 | ' | ' | ' | ' | 23,970,000 | 25,379,000 | 21,139,000 |
Credits and favorable adjustments related to prior years resolved in current year | ' | ' | ' | ' | ' | ' | ' | ' | -3,356,000 | ' | ' | ' | ' | ' | ' | -3,231,000 | ' | ' |
Medicare Subsidy Part-D | ' | ' | ' | ' | ' | ' | ' | ' | 823,000 | 483,000 | 823,000 | ' | ' | ' | ' | 823,000 | 483,000 | 823,000 |
Allowance for equity funds used during construction | ' | ' | ' | ' | ' | ' | ' | ' | -6,997,000 | -6,158,000 | -6,881,000 | ' | ' | ' | ' | -6,997,000 | -6,158,000 | -6,880,000 |
Palo Verde VIE noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | -11,862,000 | -11,065,000 | -9,636,000 | ' | ' | ' | ' | -11,862,000 | -11,065,000 | -9,633,000 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | -4,099,000 | 529,000 | -9,029,000 | ' | ' | ' | ' | -3,992,000 | 730,000 | -7,617,000 |
Income tax expense - continuing operations | 9,167,000 | 131,912,000 | 77,043,000 | 12,469,000 | 18,157,000 | 147,116,000 | 76,689,000 | -4,645,000 | 230,591,000 | 237,317,000 | 183,604,000 | ' | ' | ' | ' | 245,095,000 | 244,396,000 | 192,542,000 |
Net deferred income tax liability recognized on the Consolidated Balance Sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current asset (liability) | 91,152,000 | ' | ' | ' | 152,191,000 | ' | ' | ' | 91,152,000 | 152,191,000 | ' | ' | ' | ' | -2,033,000 | -2,033,000 | 74,420,000 | ' |
Long-term liability | -2,351,882,000 | ' | ' | ' | -2,151,371,000 | ' | ' | ' | -2,351,882,000 | -2,151,371,000 | ' | ' | ' | ' | -2,347,724,000 | -2,347,724,000 | -2,133,976,000 | ' |
Deferred income taxes - net | -2,260,730,000 | ' | ' | ' | -1,999,180,000 | ' | ' | ' | -2,260,730,000 | -1,999,180,000 | ' | ' | ' | ' | -2,349,757,000 | -2,349,757,000 | -2,059,556,000 | ' |
Income Taxes, additional disclosures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Phase-in period of corporate income tax rate reductions beginning in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '4 years | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to adoption of regulations | ' | -84,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -84,000,000 | ' | ' | ' | ' | ' | ' |
Decrease in long term deferred tax liability due to rate changes | ' | ' | ' | ' | ' | ' | ' | ' | ($75,000,000) | ' | ' | ' | ' | ' | ($2,000,000) | ($2,000,000) | ' | ' |
Income_Taxes_APSC_Details_3
Income Taxes (APSC) (Details 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Regulatory liabilities: | ' | ' |
Asset retirement obligation and removal costs | $235,959 | $238,669 |
Unamortized investment tax credits | 82,116 | 53,837 |
Other | 42,609 | 33,764 |
Risk management activities | 44,920 | 72,243 |
Pension and other postretirement liabilities | 198,642 | 408,764 |
Renewable energy incentives | 65,434 | 66,941 |
Credit and loss carryforwards | 133,070 | 139,022 |
Other | 148,492 | 68,844 |
Total deferred tax assets | 951,242 | 1,082,084 |
DEFERRED TAX LIABILITIES | ' | ' |
Plant-related | -2,903,730 | -2,584,166 |
Risk management activities | -16,191 | -23,940 |
Regulatory assets: | ' | ' |
Allowance for equity funds used during construction | -43,058 | -37,899 |
Deferred fuel and purchased power | -8,282 | -28,858 |
Deferred fuel and purchased power - mark-to-market | -13,343 | -15,796 |
Pension and other postretirement benefits | -129,250 | -316,757 |
Other | -93,202 | -68,170 |
Other | -4,916 | -5,678 |
Total deferred tax liabilities | -3,211,972 | -3,081,264 |
Deferred income taxes - net | -2,260,730 | -1,999,180 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' |
Regulatory liabilities: | ' | ' |
Asset retirement obligation and removal costs | 235,959 | 238,669 |
Unamortized investment tax credits | 82,116 | 53,837 |
Other | 42,609 | 33,764 |
Risk management activities | 44,920 | 72,243 |
Pension and other postretirement liabilities | 186,213 | 392,486 |
Renewable energy incentives | 65,434 | 66,941 |
Credit and loss carryforwards | 38,183 | 52,441 |
Other | 166,781 | 111,327 |
Total deferred tax assets | 862,215 | 1,021,708 |
DEFERRED TAX LIABILITIES | ' | ' |
Plant-related | -2,903,730 | -2,584,166 |
Risk management activities | -16,191 | -23,940 |
Regulatory assets: | ' | ' |
Allowance for equity funds used during construction | -43,058 | -37,899 |
Deferred fuel and purchased power | -8,282 | -28,858 |
Deferred fuel and purchased power - mark-to-market | -13,343 | -15,796 |
Pension and other postretirement benefits | -129,250 | -316,757 |
Other | -93,202 | -68,170 |
Other | -4,916 | -5,678 |
Total deferred tax liabilities | -3,211,972 | -3,081,264 |
Deferred income taxes - net | ($2,349,757) | ($2,059,556) |
Selected_Quarterly_Financial_D5
Selected Quarterly Financial Data (Unaudited) (APSC) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Consolidated quarterly financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | $699,762 | $1,152,392 | $915,822 | $686,652 | $693,122 | $1,109,475 | $878,576 | $620,631 | $3,454,628 | $3,301,804 | $3,241,379 |
Operations and maintenance | 238,854 | 233,323 | 229,300 | 223,250 | 237,141 | 220,729 | 216,236 | 210,663 | 924,727 | 884,769 | 904,286 |
Operating income | 83,900 | 415,688 | 259,812 | 86,923 | 101,289 | 447,970 | 254,489 | 48,007 | 846,323 | 851,755 | 746,508 |
Net income (loss) attributable to common shareholder | 24,260 | 226,163 | 131,207 | 24,444 | 22,631 | 244,823 | 122,345 | -8,257 | 406,074 | 381,542 | 339,473 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated quarterly financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating revenues | 698,824 | 1,151,535 | 915,065 | 685,827 | 687,031 | 1,108,623 | 877,587 | 620,248 | 3,451,251 | 3,293,489 | ' |
Operations and maintenance | 229,505 | 222,617 | 224,950 | 220,752 | 233,320 | 218,403 | 213,746 | 208,447 | 897,824 | 873,916 | 895,917 |
Operating income | 79,024 | 284,251 | 183,728 | 74,862 | 77,768 | 296,945 | 176,821 | 53,995 | 621,865 | 605,529 | 554,383 |
Net income (loss) attributable to common shareholder | $30,024 | $234,954 | $133,949 | $26,042 | $26,843 | $247,831 | $124,928 | ($4,105) | $424,969 | $395,497 | $336,249 |
Other_Income_and_Other_Expense5
Other Income and Other Expense (APSC) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other income: | ' | ' | ' |
Interest income | $1,629 | $1,239 | $1,850 |
Investment gains - net | ' | ' | 1,165 |
Miscellaneous | 75 | 367 | 96 |
Total other income | 1,704 | 1,606 | 3,111 |
Other expense: | ' | ' | ' |
Non-operating costs | -8,207 | -7,777 | -7,037 |
Miscellaneous | -4,106 | -9,612 | -3,414 |
Total other expense | -16,024 | -19,842 | -10,451 |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Other income: | ' | ' | ' |
Interest income | 1,234 | 310 | 406 |
Investment gains - net | ' | ' | 1,418 |
Miscellaneous | 2,662 | 2,558 | 3,247 |
Total other income | 3,896 | 2,868 | 5,071 |
Other expense: | ' | ' | ' |
Non-operating costs | -9,626 | -8,706 | -8,810 |
Asset dispositions | -4,992 | -1,511 | -1,352 |
Miscellaneous | -5,831 | -10,933 | -5,166 |
Total other expense | ($20,449) | ($21,150) | ($15,328) |
Changes_in_Accumulated_Other_C5
Changes in Accumulated Other Comprehensive Loss (APSC) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | ($114,008) | ' | ' |
OCI (loss) before reclassifications | 5,381 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 30,574 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 35,955 | 38,155 | 7,605 |
Ending balance | -78,053 | -114,008 | ' |
Derivative Instruments | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -49,592 | ' | ' |
OCI (loss) before reclassifications | -213 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 26,747 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 26,534 | ' | ' |
Ending balance | -23,058 | ' | ' |
Pension and other postretirement benefits | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -64,416 | ' | ' |
OCI (loss) before reclassifications | 5,594 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 3,827 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 9,421 | ' | ' |
Ending balance | -54,995 | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -89,095 | ' | ' |
OCI (loss) before reclassifications | 5,173 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 30,550 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 35,723 | 36,496 | 10,704 |
Ending balance | -53,372 | -89,095 | ' |
ARIZONA PUBLIC SERVICE COMPANY | Derivative Instruments | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -49,592 | ' | ' |
OCI (loss) before reclassifications | -214 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 26,747 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 26,533 | ' | ' |
Ending balance | -23,059 | ' | ' |
ARIZONA PUBLIC SERVICE COMPANY | Pension and other postretirement benefits | ' | ' | ' |
Changes in accumulated other comprehensive income (loss) by component | ' | ' | ' |
Beginning balance | -39,503 | ' | ' |
OCI (loss) before reclassifications | 5,387 | ' | ' |
Amounts reclassified from accumulated other comprehensive loss | 3,803 | ' | ' |
Other comprehensive income (loss) attributable to common shareholders | 9,190 | ' | ' |
Ending balance | ($30,313) | ' | ' |
SCHEDULE_II_RESERVE_FOR_UNCOLL3
SCHEDULE II - RESERVE FOR UNCOLLECTIBLES (APSC) (Details) (Reserve for uncollectibles., ARIZONA PUBLIC SERVICE COMPANY, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reserve for uncollectibles. | ARIZONA PUBLIC SERVICE COMPANY | ' | ' | ' |
Changes in reserve for uncollectibles | ' | ' | ' |
Balance at beginning of period | $3,340 | $3,748 | $4,376 |
Additions, Charged to cost and expenses | 4,923 | 5,290 | 5,751 |
Deductions | 5,060 | 5,698 | 6,379 |
Balance at end of period | $3,203 | $3,340 | $3,748 |