Pinnacle West Capital (PNW) Says Commissioner Burns Filed Subpoenas in APS's Current Retail Rate Proceeding

August 30, 2016 5:40 PM EDT

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Pinnacle West Capital (NYSE: PNW) today disclosed in an SEC filing:

As previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2015, on January 28, 2016, an Arizona Corporation Commission (“ACC”) Commissioner, Robert L. Burns, sent Arizona Public Service Company (“APS”) a Notice of Investigation pursuant to an Arizona statute that authorizes a Commissioner and his agents to inspect the accounts, books, papers and documents of any public service corporation, and examine under oath any officer, agent or employee of such corporation in relation to the business and affairs of the corporation. The Notice stated that Commissioner Burns intends to investigate whether APS has used funds recoverable from ratepayers for political contributions, lobbying, or charitable donations purposes; whether APS’s corporate affiliates have made contributions or donations under APS’ brand name; and the degree to which APS and Pinnacle West Capital Corporation (“Pinnacle West”) are “intertwined” in terms of organization, management and operations.

On August 25, 2016, Commissioner Burns filed subpoenas in APS’s current retail rate proceeding to APS and Pinnacle West for the production of records and information relating to a range of expenditures from 2011 through year-to-date 2016. The subpoenas request information concerning marketing and advertising expenditures, charitable donations, lobby expenses, contributions to 501(c)(3) and (c)(4) nonprofits and political contributions. The subpoenas were issued by Commissioner Burns individually, not by action of the ACC as a whole. The return date for the production of information is September 15, 2016. The subpoenas also seek testimony from company personnel having knowledge of the material, including the Chief Executive Officer, on October 6, 2016. APS and Pinnacle West are considering their respective responses to the subpoenas and cannot predict the outcome of this matter.

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