PNW - Earnings call transcript Q2 2019 | Pinnacle West Capital Corporation

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Operator

Greetings, and welcome to the Pinnacle West Capital Corporation 2019 Second Quarter Earnings Conference Call. At this time, all participates are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Stefanie Layton, Director of Investor Relations. you. Thank

begin. may You

Stefanie Layton

I conference to review call recent performance. quarter Christine. participating our everyone in earnings, operating and this and developments, would you, thank like for second Thank webcast, to

be speakers Jim us. APS's here CFO, Guldner, Executive our Our President Jeff will Chairman CEO, Operations and Hatfield. Daniel Don and President; with of and APS's Vice our Brandt; Froetscher, also today are

our these to comments and Note undue using and actual results statements. on The need information. I our expectations, forward-looking contain on may Relations slides are current cover be differ and of materially the statements we will related slides details along caution you. First, site, place no expectations assumes to reconciliations a from you with that not based statements. update Release available Because non-GAAP with that Investor Web Today's company we Earnings reliance financial certain contain the few our slides the to these on obligation information.

second language, to that those filed that risks statements, in sections uncertainties XXXX, identify forward-looking morning, actual the cause for document please from refer cautionary to which Our XX-Q well factors this and Form and risk differ MD&A disclosures. as materially could results as was contained quarter our

this also available by be of shortly on August next will It our be replay call A available the telephone will days. Web site XX for XXth. through

over Don. call turn will I the to now

Don Brandt

all you thank and us Stephanie, joining Thanks, today. for

operating line our Our with expectations for management financial the year. performance and in remain

in the quarter, average in first revenue significantly provided and below above weather average quarter. know, revenue you As second the

that all objectives. and priority on weather I'll our top quarter have priority day of takes regulatory of operational our safety. provide communities many developments. the the XXXX is every a discusses other Jim on and second our years our over safety updates over impacts results, times our expectations repeated The and team, our I recent customers, few our Before details for

we from construction APS fully an occurred our Rico's prayers. member, team Costello, This planned the Recently, in continue and reviewed, underground event keep being experienced to work Phoenix. that Rico and event thoughts performing an in family Downtown, loss we of while is

station Unit Turning on refueling to planned May generating Xth. Verde X operations, outage for its maintenance completed Palo our

peak. modernization Metro completed May budget five Phoenix performing Additionally, the Ocotillo in on by asset prepare peak with available to generation is we units serve the well, only has In all for pocket summer also ensure our was This project adequate customers and we summer demand through have load we wildfire service the valuable XXth. our and summer, meet to the not season. of preparation resources in been

work wildfires. year-round minimize the fact, to In risk we of

removing the fire authorities, property educate from with wild forest mitigation efforts fires. partnering around equipment, fire physical safe how vegetation protect and include Our with service coordination on public and maintaining inspection, that organizations community to pole clearances, their

And we you the know, we experienced begun cause has of The review been equipment failure. analysis. is have site, the As facility. forensic substation now looking discharge the complete. McMicken but completed. the to of into the will storage an battery failure at take on At We're batteries time XXth, progressing a April

had request Accordingly on our delaying APS.com/mcmicken. been solar and safety the facilities, storage existing is our storage top to megawatt we at on Because continue temporarily for from will in learnings post this XX incorporate to XXX put XXX our will a resources megawatts priority, of We solar megawatts batter updates battery be new investments our issued of storage hold. in paired new with for proposals, facility April, incident.

manner. forward resources, investing thoughtful in move ensure and and in reflects including remain to responsible new clean This that informed reinforce storage. we a delay pause to I battery in energy a we want safe committed simply

will Although requests proposals. are issuing storage new delayed, be facilities we for two

first This the solar storage be APS-owned by generation generation is be to designed megawatts will in for future. XXXX. service of energy XXX to solar in install The RFP with to up the flexibility

RFP wind no The portfolio generation megawatts new is XXX in our service possible, renewable as will XXXX. as up than soon be XXXX. of later for megawatts X,XXX RFPs expand to to but about to These energy second by

worked or future. is needed integrated of August options. On to a a It preliminary to constructive with group explore input designed collaborative this stakeholders. the and group customers. the customers was resources and participating to a demand provide reliably IRP, we XX-year the valuable forecast includes filed serve and stakeholder interested Xst, our forward drafting the affordable and closely power of feedback. The plan, resource group a effort IRP of in IRP, The stakeholders future. look diverse electricity of In with our We the variety can reliable we provided for engaged, which appreciate in

both will population and is generation. vehicles annual Going The a changing final of incorporates generation. XXXX. resource than from that we compounded integrated filed through The driven trends with annual related distributed forward, more growth, distributed primarily by demand growth, and will plan the of rate future April demand-side economic increase in and XXXX XXXX.this electric peak forecast customer commission growth be to project growth future energy X% and at need management our

policy XXXX. X, policy on plan recovery electrification Arizona plan Arizona. programs. support EV infrastructure, and EV At than customer the electric July file Corporation incentive, regulatory meeting, EVs, by customer APS The to at implementation approved test resolved meeting, the year. that pilot of APS the the and propose vehicle the June a open and is plan EV implementation programs among a commission sector ordered XXXX, meeting. other transportation case to commission the ACC to encourages focusing in XX, intended infrastructure, open XXXX utilities rate XX, cost Commission also June the items, to an The October implement September a our a and outreach using The requirement no implemented updates, complaint, education Turning July additional open at their later to

with aligned clean vehicles objectives. present commission the exploring energy our opportunities We're to in the electric advance

reducing convenient to anxiety make by infrastructure. Our EVs goal access range is to more through driving charging

required AZ Our workplaces, July new housing charging On also fast Charge multifamily fleets, most staffs as to We're innovative on while businesses transmission the and charging to other useful Commissioner challenges, Arizona pilot or both as rules. regional report creation operator the the of interest Commission rules with own retail held competition stations, energy retail with Take competition provides System jeopardy charging put reliability AZ communities, and infrastructure. Take proposed Independent establishing strategies does conflict discussing program a operate partnering Olson's fast among exploring retail competition constitution, highway workshop rules that. just draft well infrastructure identify and recommendations Operator XXth, the local Charge with the locations. and in the the for the in clean

the competition residential doubt, sponsored Energy illustrates rates discussed, negative State than we, potential group interest and of XXth, by customers on are three traditionally challenges the retail regulated our concentric prepared policy it that customers states best years states paled with recognizing no analyzing XX the past report the in Arizona energy competition competition Arizona. of the the commission and retail It advisors higher is over report electric with residential July by was impact believe the I filed on

work last we this safety issued became moratorium the of when disconnects recently proposing vulnerable the stopped months residential needs solutions we passing for beginning to warmest Commission Addressing why disconnects it mid of Arizona is non-payment. a Subsequently with that's of a Corporation As objective develop statewide Arizona after assistance committed I top range a ensure most. October. priority need to mentioned into Arizona temporary Arizona that the on call, have rule our customer's help aware of they to broad access through temporarily a September is tower the and a have stakeholders statewide at we

we Canyon award visitors company, demonstrated XXXX In of, Grand corporate closing, the The be awarded a Conservancy. annual Stewardship our Lands to recognizes to in for proud experience company Public much lands. support achievement enhance public in as of the of the quality exceptional so have Americas APS, Alliance Award that a

In addition, like engagement of I'm This APS. companies Advocacy of the Public highlights ballot for the the award defeat Excellence efforts of AEI we DEI member Award Policy around are in XXXX our continually continuing to and honored such and dedicated preparing team, value on focused customers a needs long-term work remain and we our our to with to meet deliver investors. initiative. talented of proud to the future

over I'll to call now turn the Jim.

Jim Hatfield

us for the to you, Thank the slide weather This in XXXX, of you share of compared of were materials. as largely quarter quarter The results on second second XXXX. we XXXX. in of the $X.XX our X per per second Don, due everyone to unfavorable and results share morning lower financial shown $X.XX quarter We for again reported earned the thank joining today.

gross the per period. offset were sales prior share gross May per second more to Day the year's record. temperature revenues which down high was transmission and margin understand the since the accruals coolest magnitude to margin slide weather by weather, Adjusted LCR by Phoenix Memorial $X.XX quarter was negatively unfavorable impacted of on share $X.XX XXXX in Higher and May compared than for the

gross few margin last reform. and accruals to lower other due contributing refund years. to in customers was to work June Additionally, lower Also the tax margin

which in of due plan impact timing we June the implemented quarter rate of last tax negative net the This a from to reform corporate tax customers, year. had FERC to was

principal adjusted lower expense operations last and past share, positively will $X.XX parent track primarily and lower costs shared record that impacted level drivers and per implementing we the lean lower planned with maintenance continue Continuing our due I costs outage the our management earnings to streamlining discipline be processes. to initiative quarter

effort we bills part the affordability effort, sustainable many deploy the and few take simplifying a what work savings to streamline impact customer mature. the identify within employees to of while positive across our a over and on we ways workshops months, have reduce costs processes have past time five of ultimately we engaged that process hosted will customer calling larger This way to this by are enterprise from technology

consistent historical cost, manage track our record. with to continue We

a can on continuing to to Phoenix. campuses state's West on to XXX% El Construction the we has pay facilities growth on particular, the Mirage. continue Metro in of three datacenter now dividends. power in as Arizona's economy, build week, on manufacturing you to three, with datacenter tends three world-class all Turning confirmed begun development energy. Microsoft the renewable and see Goodyear Last and see slide is Microsoft In other to sites focus plans side

build fourth in XXX datacenters Last quarter are which announced of first two of expected approximately In to of a plans announced datacenters are plant data centers, multi-million Goodyear load. to in new be completed manufacturing area. to projected two construction megawatts of addition, the utilize The dollar jobs the its the Compass to bringing XXXX. Nike month, XX

the with XXX XXXMW forward Compass KV up non-side datacenters to Going expect campus grew substation.

by the result, U.S. increased Metro to show by XX.X% Phoenix. above X.X% job in continues Numerous job growth a increased are As the Metro compared the easily for crews and area. the and Through entire of with be national job to of X.X% Construction has XXXX the consistently been employment May seen sector growth and visible staffs sites construction downtown downtown and the equipped strong manufacturing construction strong Phoenix Phoenix cranes employment area average. increased in employment across in X%

also growth business of permits. job We an The the rates and more low national expansion continue permits, market in expand faster compared family we than residential XXXX, by that development. the has housing believe to increase Metro continue to job Metro to its average. income support housing and a market In upward about growth continued total Phoenix allow single XX,XXX of expect no X,XXX mortgage trend. expect real We economic to generally growth related and economy solid estate the to XXXX Phoenix should relatively driven

economic grew retail in quarter the of second improvement Reflecting base in XXXX. conditions, X.X% stay the customer APS'

in rate economic will accelerate response just to the We expect trends I this growth discussed. that to continue

Importantly, remain. the development population future long-term Arizona supporting growth fundamentals in and economic job

new our projected expenditure energy Turning and we continue evaluate total delaying Don opportunities, capital financial projects the temporarily expectations to as the mentioned, levels we period XXXX of remain through storage to as delayed our investment same. although guidance outlook, forecast are financial the second-half are we our on the in look to

to storage We reallocated and energy parcel projects. other the would on distribution have capital that been have accelerate

we plans. with our in Also, reevaluated change case, our of the rate next financing for timing have

of As level will any for remainder equity not XXXX. debt long-term a the we of parent result, require or additional

consolidated in equity the was the per have However, here will year equity the approximately of the to we earnings the despite end to we continue be a layer, West the strong $X.XX will ratio XXXX first-half mild to the Pinnacle $X.XX of for XX.X% range continue weather test expect share. at in of

low-end to weather would today. the However, due to I guide you

in XX% have of of costs, quarter center represents as and managing of primarily list normal for experience assumptions be quarter complete six the load data on results significantly a the is we can the success factors I and keys as our from third in earlier of and third XXXX, materials. whether vary we'll our weather full-year to over The underlying impact our customer the increases guidance mentioned our of remainder seven included and key the slide

remains any We expect $XXX January X.X% $XXX of which during prepared for remainder of the APS concludes senior to long-term This liquidity mature at notes up refinancing funding issue and strong APS of Overall remarks. excludes million to debt million the that our with XXXX. XXXX. at in

over the operator to call for questions. turn now I will the back

Operator

you. Thank

question-and-answer line question. a Our with proceed Suisse. with Weinstein session. Instructions] Michael Credit be We comes conducting will of question [Operator your from first Please now

Michael Weinstein

guys. Hi,

Don Brandt

Hi, Michael.

Jim Hatfield

Michael. Hi,

Michael Weinstein

Thanks. on Four on you up at SCR have Thanks step update point? what's the any this order of with Do the kind update. for Corners going

Jeff Guldner

Michael, it's Jeff.

but So and got the has before there's filed. you up have being to we've yet, given case the the -- timing It not see. gets commission think rate case, we with being the while you could of could decision as the go upcoming went voted and could a as decided It case, case don't I it process. out pending, recommended on some which rate or consolidated on. passes It that. of and out, the to moved order those through as It case that be clarity hearing a both time that then opinion and the was potential just end three rate could know,

Michael Weinstein

rate XX. -- you get the that if October on I to deadline wondering guys a commission I'm how And by are filing, point. that this discussion it's deadline there meeting it. the was you're at remember Got about case some tight done with or just coping at

Jeff Guldner

work takes Yes, put case it had normally the we it but we're on to doing that is just a six months about paid, accelerate together, it. to

So being right hit it's process now, the of and in target. prepared we'll

Michael Weinstein

you. great. queue. in get the Okay, back I'll Thank

Operator

Please Our Evercore. comes proceed the from of Gordon line your next Greg question with with question.

Greg Gordon

Thanks, good morning.

Don Brandt

Good morning, Greg.

Greg Gordon

I your view point milestones of all sort don't next we agree and next, outcome. vu as and looking competition we this. the tend commission to déjà a of this educated is the retail has sort the based forward of to might should that fully we next history of on is at what look the over commission about over to of that to my timeline the time with again It thinking ultimately I know efficacy we know But state, This the how would on better the with a get view period that get steps. where been long of

Jeff Guldner

potential I make more appropriate what think are, the need impacts was Greg, for you discussed would on on whether yesterday it's a surprisingly looking the and technical analysis that they're move issues what be, meeting would is the This commission Jeff. to what decision all it's to at information forward. the staff not what

have that I going working and think on they're whether they're provide information. getting that that on it additional next another questions workshop on workshop is enough will and clear to it

an in know particularly being you issue situation through we're complicated to the that is RTO already in without As ISO. work an in this really a or

think milestone. October I how And will workshop right so progresses from be there watching in hard it And then now. see that to next for is probably the

Greg Gordon

number move last before to like forward. conclusion there how Can roughly we went came they that memory mean I memory they educational you that this Can refresh very refresh it? process, were very, last through shouldn't they my processed large you though that sessions the of my time

Jeff Guldner

it Book and the took last retail group, you implementation of working forward of they'd it number And time move crisis standing there's been then how given it we multiple competition, working so in work took in So had to long started California process talking on retail and work But with similar legal There a actually as in lot that and customers a done from have we would that folks a don't before And to it is crediting this the to process. technical California experience unwind RTO. interface different was the more pursuing and multiple years to that of during Blue the it through how sales participating years years that. then, lot and hit. But imbalance of some had the working on California, everything put take and you're have started kind I get since energy as that in of would that then issues energy broken had California group it that the actually into were revenues been again we groups, took about particularly we're process the competition but you what up a different would as working until if that multiple that impact market of states. know what hold. path hospice with issues that's through

If affect up, you you that, RTO your that's stop to own doing all stand customers. because going

of rulemaking a to technical whether move got to through they've to would to I of how these the so formal conclusion develop. into a or rulemaking think come issues, that formal And lot work

Greg Gordon

But range, change the should of flexing, drivers end parts other some Last think lower here? a ranges, question give us are? count towards can moving share package. towards low-end are the there bit the expected range I because down Jim, those guidance Other I and margin in obviously think, whether look the sense the at the parts guiding X the moving and on given as for just or be the inside what Page about you I I you gross of the financing adjusted lower is guidance of

Jim Hatfield

that sort So, we things, would Thinking I to would RX be have focus end. of say the lower about O&M. O&M towards on

that the I that think had depend then think be We a towards We a will that there. a end sales. range. of first-half. go you'll the at little due one-time I think commercial had as timing outage I pursuing sales gross impact margin see forward. within can really there on lower the hurt weather actually just they centers the strong sales But with And the in would flap come residential data we fairly upon to is customer commercial

Greg Gordon

gentlemen. you, thank Okay,

Jim Hatfield

Okay. Thank you.

Operator

comes the Dumoulin-Smith with your Lynch. of from Merrill question of next Julien Our Bank Please line proceed with America question.

Unidentified Analyst

good Hi, Julian. on for morning. is This [indiscernible]

had what a like shortly. renewable Just around sense RFPs the question you issuing be? the spend you with Any that will associated CapEx said will to those as be

Don Brandt

Well, I with no CapEx associated that. don't incremental there's think

go battery had storage we plan. As forward, our we renewable other we baked in and had

-- any point. I'll back more So the art by know capital we see that at incremental I when we'll to get don't piece actual this

Unidentified Analyst

Okay, bit timing as to the Can a thank able sense on plan of you. the a little investigation is of of proceed to you about I when more be more bit energy talk the the and And will little ongoing. the more maybe far you'll know plan just talk Can as know you forward there? as when going storage? you kind

Daniel Froetscher

of you the at remaining actual will, has phase, if modules involved completed. Daniel. first To is the And facility, just charging main There phase second event equipment the moved to mechanism, of phase to the your the first the the forensic been as phase investigation on we've point, to the

I forensic in specific We have we we some months. of cautiously second at to Mr. confidence but stage late back this Brandt's September, know that say that echo, In and will the We're point. technology. in will I optimistic remarks. involve safely the couple this a I sure speculation make timeframe the prudently, little bit to to a a to meantime, returns speculate want approach with October have his and the to that think look, timeline. comments, full is

that just space present. at we're pause in on so, And

Unidentified Analyst

you very Thank Okay. much.

Operator

with next Our Sachs. Goldman Insoo Kim question. from line Please with your question a of comes proceed

Insoo Kim

generation was be you with, until you. I offset other that Starting you stretch plan? in have have recent think it the if the or only what happen to moratorium Thank and a that CapEx for But proposal gas items the would early bill that your any FIFO do consideration consideration potential the out to in extending were I think further, XXXX.

Jeff Guldner

this Insoo, is Jeff.

and moratorium And want of what language us we requires, Just you is we is if of be so it gas I would irrespective think I at do essentially And something moratorium Open on going it's the clarify don't we to if place. needed go if there think extended. to any to get commission to just gas impact that But that's I would discussed it if whether to to that's on the to approval, it, we that limited construct, which was that, generation needed to a have would do, clarify have that in construct capital. look September Meeting. to likely

Don Brandt

it we to need. needed fulfill Also, extent prohibit Yes. to that that wouldn't PH-XX

Insoo Kim

layer Understood that of APS And was case? at amount believe, I end the equities, of and upcoming that equity just likely plan, be XX.X, rate then for does in the no the with plans the that that's revised XXXX. in will additional terms imply filed around you financing the mentioned

Don Brandt

XX, approximately the expect year, that the you'll June of I equity Yes, layer, in XX.X%. the would test see end that

Insoo Kim

Okay. Thank you very much.

Don Brandt

XXX For so and that our had to XXX a consistent historically, -- we've within

Insoo Kim

you. Thank Understood.

Operator

from question. of next line Please Ali Our your question Agha with proceed with comes SunTrust.

Ali Agha

morning. Good you. Thank

Jim Hatfield

Hi, Ali.

Ali Agha

Hey.

taking earnings First from guiding Jim, step Or the towards that all the counting Four talk about scenario? on this Slide that to even just the of and end Corner Does that, you laid increase within sort year. not you this lower question, I clarify, increase, when XX, happen Corners range Four does are still not of some year? the the place on minuses? implications step the for pluses out wanted you

Jim Hatfield

about going the path forward. Well, Jeff, talked earlier

I earlier. of it, on know So path. we're the low-end that don't get get talked towards we assuming just or don't again, guidance, it practice about still going the But be we based to

Ali Agha

you. Got I

come couple this secondly, year. general a board question, new commissioners you've more then had of on Okay. And

you XX, you're your current in on seeing ago, are general, with the commission that how commission, interactions in the months say XX months with XX, wondering, issues? versus XX dealing today ago, various Just general, as

Jim Hatfield

commission's dynamic. The

So have other come they'll when you different commissioners priorities. that in have always changes and

the we of kind we're policies sure, and so, seeing. the we make issues are try And process, in explaining open we're and to the

Ali Agha

similar? the general, has interaction in been And

Jim Hatfield

It's similar. challenging, it's situations, I you mean, case you into pending when because rate party can't you index get get matters. discuss and issues,

that on so, docket how And depending can much interaction how your affects you busy sometimes that have. is,

Ali Agha

then mentioned, equity And also out case Jim, the you lastly, think as When in Right. I wanted guys? won't comes this and any for plans. the you've equity, to need back clarify, plan you you into CapEx long-term some you you rate out are as earliest laid scenario filing, longer-term

Jim Hatfield

I don't the progress a have a gain on outcome, is and and right we'll found view go case today. that from on there. really constructive And

Ali Agha

Thank it. you. Got

Operator

Our comes with Charles proceed question your next from a Fishman question. of Morningstar. line Please with

Charles Fishman

XXXX XXXX just make on the The I got generation? is I CAGR in growth and could right. this between Good X% Don, distributed sure that if low IRP. morning of net

Don Brandt

Yes.

Charles Fishman

So that's a wow, huh? like

Don Brandt

energy. that's Yes, peak said and both it I demand was

expect at We that bigger X%. grow to

Charles Fishman

slide all of -- the the this, centers? But huge. That's you driving I So Energy correct? of all users, is those this that had one things are what's some above. data guess with

Don Brandt

lot you But we And over as window of State, due prices Phoenix, there's here for out in valley pretty low some conditions very happen the a of natural from look that all that's energy We're thing back.So very attractive if on holding centers. and Downtown to probabilities there areas it continue a drive shortages disasters I around the living on and other convinced activity the lot only attractive they reasonable growth energy, cranes Arizona. developers areas are. hear their for going the of and to labor here, to we're Yes, of is there's more employees, is

Charles Fishman

use So source what or offset to is to locations? from that that they're with renewables They're saying Arizona? renewables, they it standard that Microsoft those says other thing, when going could just in come the

Don Brandt

a a contract which in did to Charles, we Yes, arrangement do what's with to them is contract differences. something Microsoft, special the allows for called similar industry that

kind cost we it construct market price. out wherever and them So lets of them renewable and go a energy give

so flexibility for. objectives it energy achieve gives us looking And they're to out that go the the to and customer

load tariff factor other to a use it so see customers. And unique of able tailored of And also that that we be attractive when model and pressure that customers, the data these arrangement. we've data come the are was we it's just to for system we're to expect using our to to customers centers all a takes increases these they're benefit other centers rate more it because at, But and customers. can this relatively high looking designs again, system, on a to apply efficiency underscore and actually our price off we

Charles Fishman

Right. Last they question, I didn't slug my way through IRP.

do need natural natural all of addition the some the Just is gas a storage in little about actual the to IRP? importance more and bit talk gas, - address I but read. the you in I you there see what renewables of build

Daniel Froetscher

gas the you is distinction, if will, don't this natural We Daniel. build make Charles, standpoint. a from

will while that interest come having storage, either and with discussions we the Given through should status additional decisions we bridge the our the have and whole some energy obviously point for of about PPA as relative five move acquisitions to or seven through next inform the candidate Gas has been, needed three fuel, better gas additional will solar to build. at to to the years, wind. a peaking resource continue a as deferral our and forth we've be

Jeffrey Guldner

XXX% policy involved that the that gas XX% policy have you that Jeff, you this understanding electrify IRP to a getting clean and to could that XX% issued the things a that path this have how on of and move just quickly but kind expensive, Do then more lower around to and be future stakeholders issue last on very in you watch mix, the the of or are do move resource with the And move Charles, clean or system. a the and is fundamental engaging, energy, energy. is this carbon

get have discussion. what to it's have country further so going seeing out around expect to And we'll seven we're in five that's six, I to year a issue to the similar know I you're that I the going policy pass Arizona, but that to be horizon in think. it

Charles Fishman

Okay, have. fascinating. all IRP. rest like That's worth Thank It sounds the the of you. I reading it's

Operator

comes Glenrock of proceed Paul Associates. Patterson Our next with question question. the line with your from Please

Paul Patterson

morning. good Hey,

Don Brandt

Hi, Paul.

Paul Patterson

these was rear just experience emergency make shut moratorium have still you on or where have your you, budgets there a I paying have wondering follow sometimes like edge final stood? that a experienced been me not who if moratoriums on if you anything if update get you where and or you or what and tight Is - this And have So and have have wondering you so these any this that problems just rule behind did then when what's bills that? it their off. with I'm they guys stop far people was

Jeffrey Guldner

Yes, emergency disconnect Paul, Jeff. will going in emergency the is formal this rules are rules are be on policy while commission meant in The forward. a conducts be place. The rulemaking the to place whatever

the the the likely fairly to start rules And and then summer in is through so, are emergency soon. place formal rulemaking

that, asked the on to right. what And are. We for are commission we reporting and report they've you're the and edges rear seeing monthly

expected, go As rear edges the up. seeing we're

engage that comes up with the four support where when circumstance things how And on on how months have we're will to we're to the mentioned organizations of lot so customers a October to we're summer of we going it, community and going engage moratorium behind know of is customers bills. Don one XXth going be focused we're and

with who working the And stakeholders with forward in how those engaged so customers. we'll deal are that, supporting we're with of number

Paul Patterson

of seems considerable part seems country there little of so retail of voice this has what lot you There of questions then still the in you. where seeing been the have fad okay to that commissioners, the the to and it when the and it Greg's sort on long but having least it issue, -- be a to already they have regarding parts back with of became how much, I seems be enthusiasm is a guys to forward at not a been their think, put choice few around be residential a seems I sort everything bit and concerns. enough was or amount just remember of to staff, to seem a surprising to mean, I the report And enthusiast switching mean this. at for of least And Okay. process

So of if around I the for little wondering a from consumer much enthusiasm at to actually you what so groups of sort color more is, what least guess unpopularity we're around, hearing and give have something country? as I'm you that why could parts bit

Don Brandt

read Commissioner can the you the do. Burns certainly of competition, has letters and I retail on proponent I'm Olson's he's been certainly been has watch commissioner you if Chairman since proponent bench. he workshops, broad sorry, And burns, --

the staff's concern think all I the potential all impacts. consequences, make the is, understand let's we do sure

allowed can go us secure working by those a up, RTO side, so new to through provisions out has resources couple customers because pressure, that out to limited attention that more last it's rate that and that need get scale and you've commercial the power our place. of putting we've of And it's But now. through an number on not customers creative themselves, do and in worked in it for some got of certainly the some - cases megawatts a if go you kind of and

the we on it who large the this in basis.And you something to you're go interest saying that but of can see accommodate And so interest can there to is think we've and part go you I I opportunity to right. an primarily where commercial interest the is it, And customers have that's to of what buy But to that energy-only more? And certainly mean, is lot do a an done out of about value system? capacity they're do to hard so to is talking that's the utilities do do really incumbent interested where spring fairly you is. hard it. in the Choice I a fleet one how about and residential, talk Aggregation. reflect And Community think

to Choice impossible being having mismatch on. Aggregation without probably of kind it's do think going some and in RTO Community I an underlying

Paul Patterson

have and I at been Okay, there. Thanks I the good again It's exhausting, much guys I but appreciate. one. have going been. hearings. so a have have on Yes, you little

Don Brandt

Thanks, Paul.

Operator

the to back the session. comments. end now floor the reached closing Management, like of would question-and-answer for to I have over We turn

Stefanie Layton

our concludes call. This today. us joining for you Thank

Operator

Ladies today's gentlemen, conclude teleconference. and this does

have may day. this for You wonderful participation disconnect your Thank a you your time. and lines at

Pinnacle West Capital (PNW) 8 Aug 192019 Q2 Earnings call transcript