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How Customers and Arizona Communities Benefit from APS Earnings
You may have heard people say, “APS made $600+ million last year.” We understand that claim may be confusing – here are the facts.
The money APS earns is put back to work—strengthening the energy grid, supporting Arizona communities, and helping us deliver safe, reliable power every day. Let us explain how it works.
Who benefits from APS profits?
Who benefits? You do. In 2025, our parent company, Pinnacle West, reported $617 million in earnings after paying all operating costs and taxes. These earnings were then used in three primary ways:
First, about two-thirds went to repay people who invested in the company through the shares they buy. Their dollars provide long-term funding for critical infrastructure like power lines, substations and power plants. Paying them back is like paying a mortgage, and the modest amount APS can return to investors is regulated by the Arizona Corporation Commission.
Second, about one-third was reinvested directly into replacing and upgrading our energy system to make service more reliable, resilient and efficient. It’s similar to using savings to improve your home rather than taking out another loan.
Third, a portion of our earnings is invested each year in Arizona communities, supporting local non-profits. In 2025, APS was named Arizona’s #1 philanthropic company by the Phoenix Business Journal. We are proud to be one of Arizona’s leading corporate contributors—supporting education, energy assistance, community safety, and local nonprofits across the state—especially those who need it most.
These three uses of earnings help keep the lights on today, strengthen communities and prepare Arizona’s energy system for the future.
Why aren’t customer dollars enough to keep the grid operating?
Keeping Arizona powered safely and reliably requires constant investment. Power lines age. Customer and technology needs evolve. Extreme weather puts new stress on the grid. And our state continues to grow, requiring more energy generation. Current customer base rates were last updated in 2021, and costs have risen dramatically since then.
Look at the electrical equipment you see in your neighborhood. Over the past five years, the prices of power poles, transformers and overhead wires have risen sharply, in some cases doubling in cost.
This mismatch between current rates and costs makes shareholder investment even more important, allowing APS to plan ahead, build responsibly and avoid higher borrowing costs that would otherwise impact customers.
Last year alone, customer funds paid through rates, net of our expenses, covered $1.4 billion of the $2.4 billion we invested to modernize and strengthen the energy grid. The $1 billion funding gap that remained was covered by investors.
The bottom line
APS is Arizona’s largest electric utility, and we are proud to be an investor-owned utility with a clear purpose: serving our customers in this state with safe, reliable and affordable power. Being financially stable allows us to invest deeply in Arizona—as a major employer, taxpayer, community partner, philanthropist, and energy provider.
Our earnings help us reinvest back into Arizona, whether that’s into the grid, into communities or into delivering some of the most reliable power in the nation and service our customers expect and deserve.
You count on energy every day. We’re here to provide it—safely, reliably and responsibly—today and tomorrow.
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