| | | Neutral (US$74.00 price target) | | UBS Research THESIS MAP | a guide to our thinking and what's where in this report | | | Q: What are the key elements of the 2016 APS rate case and the financial implications? PNW said it is open to a settlement and we believe that the ongoing discussions with solar stakeholders could reduce the level of overall disagreement within the formal case. Past precedent has shown that solar issues tend to be more contentious than average rate cases, but we see signs which are... more→ Q: What might a solar deal look like? We look for a compromise deal involving a modest degradation to the existing solar tariffs for customers. We would not expect AZ to meaningfully impede on the economics of solar today, allwoing for continued expansion albeit at a modest discount through a fixed bill component, moving away from a solar specific fixed tariff. | | We are closely watching the ongoing UNS Electric rate case for any indications of potential read-throughs for how PNW might fare with its recently filed rate case. Although most of the focus is on the shift in the rate structure (ex. putting most customers on demand rates and the impact on prospective residential solar customers) we see changes to the Lost Fixed Cost Recovery (LFCR) mechanism as perhaps more important as they can help to reduce regulatory lag. Additionally we think the upcoming ACC election cycle (Aug 30th) will be critical for shares with three of the five Arizona Corporation Commission seats up for election. Following the latest anti-solar decision in NV, the debate in AZ is likely to be mild, but is the most important solar policy question outstanding nationally this year. | | There are several important discussions currently taking place that will likely influence the fate of rooftop solar in AZ, with the UNS rate case, the 'value of solar' case, and the recent announcement that discussions will take place between solar parties and utility representatives regarding NEM reform. We see maintenance of the LCFRM and amicable resolution of specific solar related issues in rate design as key to getting an expedited rate case decision, with new rates by mid-2017. | | Pinnacle West management has been discussing the rate case filing for several years (including providing formal notice of its intent to file) and the desired rate design changes, so the main concepts should already be well understood in the market which likely explains the relatively subdued response to the filing (~65bp outperformance since May 31st.) Shares are trading at +4% premium to XLUpeers. | | 
Value drivers | Ratebase ($ Bn) | | | | | $78 upside | 10.1 | | | | | $74 base | 9.7 | | | | | $67 downside | 9.2 | | | | | Source: UBS | | | | | |
more→ | | Pinnacle West Capital Corp. (PNW) headquartered in Phoenix, Arizona, is an integrated utility in Arizona with 6,200MW of generation capacity and serves 1.2Mn customers via its... more → |
| | | PIVOTAL QUESTIONS | return ↑ | Q: What are the key elements of the 2016 APS rate case and the financial implications? UBS VIEW PNW said it is open to a settlement and we believe that the ongoing discussions with solar stakeholders could reduce the level of overall disagreement within the formal case. Past precedent has shown that solar issues tend to be more contentious than average rate cases, but we see signs which are potentially supportive of the parties coming together such as the NY “solar progress partnership” between utilities and SCTY/SPWR. SolarCity specifically cited regulatory uncertainty in Arizona as a factor in its 1Q16 decline in capacity booked and we believe solar companies more broadly are shifting towards a more amicable relationship with utilities. With respect to timing, we think settlement discussions are likely to occur after intervenor testimony. Valuation is based on a 2018E P/E multiple. EVIDENCE There are several important discussions currently taking place that will likely influence the fate of rooftop solar in AZ, with the UNS rate case, the 'value of solar' case, and the recent announcement that discussions will take place between solar parties and utility representatives regarding NEM reform. WHAT'S PRICED IN? Pinnacle West management has been discussing the rate case filing for several years (including providing formal notice of its intent to file) and the desired rate design changes, so the main concepts should already be well understood in the market which likely explains the relatively subdued response to the filing (~65bp outperformance since May 31st). |
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What do we think of shares from here?
We see PNW shares as relatively well positioned despite our initial concerns heading into the year on election and solar showdown risk.
We see an incrementally constructive situation against the backdrop of moderating ACC election and solar risk into the rate case. Our initial concerns, while still above-consensus, are moderating somewhat. We believe a more meaningful de-risking of the story should take place through 2H vis-a-vis both the UNS rate case and the ACC election. We're still on the sidelines with shares already trading at a historical relative P/E premium vs. the wider XLU index at + 4% on an FY2 P/E basis.
APS rate case several years in the makingDiving into the key parameters of the rate casePNW subsidiary Arizona Public Service Company (APS) filed a rate case with the Arizona Corporation Commission (ACC) on June 1st requesting a net 5.74% increase in customer bills effective July 1, 2017 with a test year ended December 31st , 2015 (with some post-test year adjustments). Residential bills would increase more significantly (8%) with the average customer monthly bill increasing to $150 from $139 ($133 annually) due to residential solar cost shifts. Specifically, APS is requesting a $433Mn base rate increase which includes a proposal to transfer $268Mn of rider and other adjustments into base rates. The rate increase is premised upon a 10.50% return on equity and a rate base valued at $6.77Bn compared with a 10% authorized ROE in its May 2012 rate case. Part of the reason behind the above-inflation cost increase is the change in depreciation for Cholla, Ocotillo, and Yucca. This represents APS' first rate case in five years and includes a variety of wide-sweeping rate reform proposals which we highlight below: An overriding objective of the rate design is to reduce the cost shift among customers by reducing the variable cost component of the bill and shifting towards a large fixed charge and a demand charge for most customers. • Time-of-Use Rate (TOU): APS proposes a revision to certain areas of its TOU rates to reflect the cost of service more effectively and integrate the rates into the three-element structure. The new TOU peak hours will shift to 3-8PM from 12-7PM to better meet the demands placed on the grid. Currently over 50% of APS customers are on TOU rates (40% on TOU – Energy and 10% on TOU – Demand) and the goal is to have even more customers utilize a TOU rate. APS will attempt to minimize the TOU difference in on-peak prices versus off-peak prices to 2x from 4x. • Demand Rates: As mentioned above there are ~10% customers on TOU – Demand rates currently but APS' objective is to have the majority of customers using this framework. The demand charge is based on the highest one-hour on-peak monthly demand. The average demand charge would be $25-$30/month although there are a range of options such as $6.60/kW and $8.40/kW available all year or a seasonal rate of $16.40/kW summer/$11.50 winter. • Basic Service (Fixed Charge): APS is proposing to increase this monthly basic service charge to $14-$24 from $8.67-$16.91. Between the new demand charge and the higher fixed charge, the variable component of the bill would decrease to ~70% from 90% previously. We believe this would likely have the effect of reducing the economics for future residential solar customers. Figure 1: APS Current Residential Bill: $139/month | | Figure 2: APS Proposed Residential Bill: $150/month | 
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| Source: Company Filings and UBS Estimates | | Source: Company Filings and UBS Estimates |
• Lost Fixed Cost Recovery (LFCR): In response to concerns from stakeholders about pairing a decoupling mechanism with a modernized rate design system, APS is attempting to revise its Lost Fixed Cost Recovery (LFCR) mechanism to improve the recovery of lost fixed costs associated with energy efficiency (EE) and distributed generation (DG). Currently the mechanism permits APS to collect approximately 40% of the lost fixed costs resulting from the ACC's policies regarding EE and DG and APS estimates the recoverable amount should increase to ~70% if enacted as proposed. The revisions ask for: • An increase in the year-over-year cap to 2% from 1% • An update for "the costs eligible for recovery to include 100% of generation, customer, transmission, and distribution costs currently collected through energy charges, and 50% of the generation, transmission, and distribution costs currently collected through demand charges" • The removal of the LFCR opt-out rate option • "Applying the adjustment to customers' bills as a per kWh charge for customers under a two-part rate, and a per kW charge for customers taking service under a three-part rate (rather than on a percentage basis)" • The LFCR rate filed on Jan. 15 each year becomes effective on the first billing cycle in March of the same year, unless the ACC takes specific action on the LFCR compliance filing. State Supreme Court could rule on rider authority by mid-2016Recall that In Aug 2015, the Arizona Court of Appeals ruled for the Residential Utility Consumer Office (RUCO) in their case against the Arizona Corporation Commission's authority to implement a "system improvement benefit" charge on behalf of Arizona Water, a small water utility. The ruling declared that certain automatic adjustment rider mechanisms are unconstitutional since they violate the requirement for regulators to determine a public service corporation's fair value when setting rates. The potentially larger ramification of the ruling is that it might apply to many other more important riders in the state, especially ones that ratchet only upward, such as the Lost Fixed-Cost Recovery (LFCR) fee currently charged to rooftop solar owners and the Transmission Service Agreement (TSA). Some adjustors may be safe from challenge since they move in both directions, such as the Power Supply Adjustment (PSA) mechanism. We believe the LFCRM (partial decoupling) mechanism could survive such a challenge – and see this as still palatable for yet another possible extension in APS' latest pending rate case. We see the LFCRM as among the most closely followed trackers in the case given the substantial cumulative impact on rates. • Net metering: Current solar net metering customers would be grandfathered for twenty years based on their original agreement and there is a 'safe harbor' for customers whose solar application is received by APS by July 1, 2017 and installed within 180 days. Future net metering customers would have the net metering price set at the avoided cost rate rather than the full retail rate. Currently, management estimates that solar customers using an energy rate avoid an average of $72 per month which is borne by other customers and the new rate design would look to close the gap for future customers. Without cost deferrals, APS would need to file rate cases immediately to capture the $900Mn of spending for these projects. • Four Corners SCRs and the Ocotillo Modernization Project: APS is required to install Selective Catalytic Reduction Equipment (SCRs) at the Four Corners Generating Station at a cost of $400Mn and APS is requesting a $30Mn cost deferral from the time of installation through 2018 with costs included in rates in 2019 via a 2% step increase (~$3/month for a typical residential customer). It expects to complete construction for Unit 5 by YE17 with Unit 4 completion in the following Spring. The request for Ocotillo modernization is similar where management is spending $500Mn to build five fast-ramping CTs designed to help with the integration of increasing solar generation in the territory. The company's estimated cost deferral through 2019 is $45Mn and APS is not requesting a step increase like that for Four Corners but instead is just requesting deferral to the next rate case.
How do other AZ cases factor in?The ACC is currently reviewing four other pending rate cases: UNS Electric (93,000 customers), Tucson Electric Power Company (415,000 customers), Sulphur Springs Valley (58,000 customers), and Trico Electric Cooperative (38,000 customers). We will continue to monitor dataponts on rate case execution in the coming weeks for UNS as potential read-through indicators for the current APS case. Figure 3: Pending Arizona Electric Utility General Rate Cases | 
| Source: Company Filings |
UNS Electric Case Could Set Precedent for APSPNW is actively monitoring the UNS rate case, we believe in large part likely due to the potential precedent-setting aspect of the case. The UNS case was filed in May 2015. We note the precedent in establishing new rate designs in the UNS rate case could provide a framework for the APS rate case, with larger potential implications in the state. The UNS case includes rate design with a demand charge similar to APS' latest case and the ACC Staff appeared willing to support a full three-tiered design. There is less residential solar in UNS' service territory so the issue of rate design is less pressing. Nevertheless, in a scenario where $5.50/kw demand charges are implemented, this could significantly alter bills particularly in solar customer territory. We continue to monitor the ongoing UNS Electric rate case, which began settlement around April with an ALJ order expected in July. This is notable as it could be the first time that a case is fully litigated with key distributed generation design topics at stake. Figure 4: Pending Arizona Rate Cases | 
| Source: SNL Energy |
ACC primaries have significant implicationsThe ACC primary election cycle will be key to watch in our view – with the Republican nominees to be selected in August; uncertainty in the regulatory cycle could peak in the summer. The three seats up for election (or re-election) – while not explicitly deciding on any solar policies per se – could prove strongly influential in upcoming rate cases. So far, two Democratic candidates – Bill Mundell and Tom Chabin – have signalled their intentions to run. On the Republican side, five candidates – Boyd Dunn, Robert Burns, Al Melvin, Rick Gray, and Andy Tobin – have announced their intentions to run. Bill Mundell previously served on the ACC from 1999-2008 as a Republican and is running on a campaign which has been publicly critical of APS. Should both Democrats be elected, a possible scenario is that they could join current Commissioner Bob Burns (D) to form a majority that may not be that supportive of APS interests. In mainly red-state Arizona, the outcome of this election could be polarizing and possibly lead to a split ticket result with some in the electorate potentially balancing their national vote with down-the-line votes for the opposite party at the state level, including for positions on the ACC. Where do the current Commissioners stand on solar issues?If there was to be a spectrum, historical voting records would appear to suggest that Commissioner Bob Burns is likely the least pro-utility, particularly following his petition to push APS for public disclosure of campaign donations to Political Action Committees (PACs). In contrast, voting records point to Doug Little as being more towards the middle of the remaining commissioners. We note Chairman Tobin has a limited track record of views on energy from which to reasonably ascertain his position. Will the recent compromising tone with Solar groups hold?We believe the solar industry in Arizona is likely keen to achieve a settlement on net metering issues ahead of decisions in the UNS rate case (decision anticipated by year-end) and the APS rate case just filed on June 1. Recall that last month, APS and solar advocates recently entered into mediation over net metering after Arizona Senators Lesko and Shooter agreed to withdraw their opposing bills coincident with the solar industry's dropping of the Arizona Solar Energy Freedom Act. Based on our industry checks, some solar advocates have been opposed in discussions to the imposition of demand charges that vary by a customer's peak demand and have instead supported (somewhat surprisingly) a fixed charge instead (this would tend to help those with higher demand). Support for a fixed charge portion of customer rates (not subject to volumetric impact) would be significant considering the meaningful opposition from the solar industry over the past few years to even modest levels ($5/month) of net metering fees.
Residential solar keen to reach a deal; we see a favorable backdrop for APSWith many resi solar companies (e.g., SCTY) noticeably struggling with respect to achieving consistent growth targets, we believe there is a broader desire to arrive at a largely consistent outcome in AZ – both for existing, but also a consistent (yet moderately reduced) value proposition to ongoing resi solar installs. Bottom line, the more aggressive approach pursued by the sector in past years appears unpalatable in the current growth outlook for the industry. As such, we see APS as likely being in a relatively favorable position (as SCTY needs consistent growth to hit targets) heading into arbitration meetings around the rate case with solar & utility constituencies (don’t look for a bilateral deal directly with SCTY or RUN). Further, the direct implications of ongoing discussions are not clear vis a vis parallel ongoing rate cases.
| | | UPSIDE / DOWNSIDE SPECTRUM | return ↑ | 
Value drivers | Ratebase ($ Bn) | | | | | $78 upside | 10.1 | | | | | $74 base | 9.7 | | | | | $67 downside | 9.2 | | | | | Source: UBS | | | | | |
| PNW is trading at US$75.26. |
Figure 5: APS Rate Base Growth Guidance ($Bn) | | Figure 6: 2018E Total Approved Rate Base Mix | 
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| Source: Company Filings | | Source: Company Filings |
EPS estimates unchangedNo equity issuances seen through to the end of the decade. Management increased its ACC rate base guidance in 2018E to $7.9Bn from $7.4Bn previously with the 6-7% 2014A-2018E CAGR intact. 2015A rate base was lifted to $6.5Bn from $6.2Bn as well. Management attributed the change to a reduced level of depreciation, as we've mentioned, which should be earnings-neutral until the next rate case as the revenue requirement should be set lower to offset for a reduced level of depreciation. Figure 7: Pinnacle West Capital Co. EPS Estimates | 
| Source: Company Filings, FactSet, and UBS Estimates |
Valuation: Maintain $74 Price TargetValuation continues to be based on the average regulated utility peer multiple. We believe that an in-line multiple is appropriate given the uncertainty around the general rate case and ACC elections. Figure 8: Maintain $74 Price Target | 
| Source: Company Filings, FactSet, and UBS Estimates |
Upside (US$78): Our upside case is predicated on a 5% premium to the 2018 peer P/E multiple and based upon reduced regulatory risk stemming out of constructive outcome of the general rate case, arbitration meetings with the solar companies, and upcoming ACC election. We see a potential for M&A premiums to return to shares given accelerated pace across the sector. Base (US$74): Valuation is based on a peer average P/E multiple. We see regulatory risk as moderating amidst an improving backdrop on solar and ACC election risk into the rate case cycle filed. Downside (US$67): Our downside case is based on a 10% discount to the 2018 peer P/E utilized in this scenario. The downside scenario is premised upon higher regulatory risk associated with negative outcome of the arbitration meeting with solar constituencies and election risk. A loss of regulatory mechanisms such that regulatory lag widens out would be a key risk.
| | | COMPANY DESCRIPTION | return ↑ | Market Cap | US$8.4bn | Shares Outstanding | 111m (COM) | Industry | Electric Utility, Regulated | Region | Americas | Website | www.pinnaclewest.com |
Pinnacle West Capital Corp. (PNW) headquartered in Phoenix, Arizona, is an integrated utility in Arizona with 6,200MW of generation capacity and serves 1.2Mn customers via its largest subsidiary Arizona Public Service (APS). The company also has a small venture capital and investment firm, El Dorado Investment Company. PNW's other affiliate is SunCor Development company, a developer of residential, commercial and industrial real estate. Industry outlook The electric utility industry is likely to experience weak or negative electric demand growth in coming years as a tepid economy and energy efficiency dampen demand. In the unregulated merchant power space, we see limited potential for a meaningful recovery from currently low power prices due to limited projected demand growth, growth of subsidized renewables, and potential for only modest further retirements. At regulated utilities, we believe rising interest rates and robust valuations are a challenge to the sector, particularly as earnings growth stalls once EPA-mandated growth capex slow mid-decade. We expect cost-cutting and strategic planning to be a key theme across both regulated and competitive companies, with M&A at modest (at best) premiums designed to extract cost synergies. We believe utilities with high parent leverage will disproportionately suffer, as they are unable to recoup from rising interest rates. | APS Current Residential Bill: $139/month 
Source: Company reports, UBS APS Proposed Residential Bill: $150/month 
Source: Company reports, UBS | | | | Value of Solar Case Could Set the TonePNW management stated that the outcome from the generic solar docket could change the compensation level for net metering included in its rate case. The Arizona Value of Solar (Docket E-00000J-14-0023) general docket has started with hearings in April/early-May and could be decided on an accelerated timeline (3Q) potentially providing important read-throughs for PNW's rate case. The outcome of the case will likely set the tone for solar-customer compensation: low value would support reducing net metering rate or increasing fixed charges to levels closer to those that PNW has previously asked for, but initial evidence is thin and a decision to the contrary (high value finding) would likely further intensify the solar debate in Arizona. Given recent ACC staff opinions in other dockets, we see a constructive outcome read-through for PNW as the more likely scenario, although we note the outcome of elections could shift opinions and outcomes materially. • History: Last year regulators voted 4-1 (then-Chairman Bitter-Smith dissenting) to move forward with a combined generic docket to consider both cost of service and the value of solar ahead of the next rate case filing, expected on June 1, 2016. The docket considers topics including methodologies for determining the cost to serve customers with solar and the value of solar. This follows APS' withdrawal of a request to increase the interim $20/mo fixed charge for solar customers and the company's recommendation to discuss the issues generically in the near-term in order to speed up the rate case proceeding next year. • How high will the demand charge be raised? Under the current solar tariff, customers pay roughly $5/mo for an average system (assuming 7kW * $0.70/kW). With the previous proposal in the state having been closer to $20/mo, we think a compromise is likely to be struck closer to the higher figure (albeit still below). Following the federal ITC extension, we envisage lessened concern over the impact of higher fixed tariffs. The thought process in the initial $5/mo rate appears to have been tied to an 'incremental' approach, effectively reducing subsidies to the industry gradually. • Workshop on solar could yield 'methodology': Ultimately, we continue to anticipate relatively little out of the solar workshop, expecting simply a 'methodology' on how to calculate the cost shift to be determined. This in our mind would establish rough frameworks on the 'value of solar' to the distribution network. We increasingly perceive this to be a complicated question as small penetrations appear to defer the need for grid upgrades, while greater penetrations would appear to drive higher estimates. Only with such clarity does the commission appear to feel comfortable in having adequate clarity to meaningfully move from the current compensation scheme. | | | | | | | Forecast returns | Forecast price appreciation-1.7% | Forecast dividend yield3.4% | Forecast stock return+1.7% | Market return assumption5.8% | Forecast excess return-4.1% | | Valuation Method and Risk Statement Risks for Pinnacle West Capital Co. include but are not limited to: (1) inability to execute on capital expenditures, ratebase, and other financial metrics guidance; (2) adverse political/legal/regulatory actions; (3) unfavorable weather; (4) operational and construction risk; (5) inability to access the capital markets on attractive terms; (6) declines in customer demand and/or population; (7) failure to close pending or prospective M&A transactions; (8) natural disasters or nuclear accidents; (9) changes in macroeconomic factors; (10) operational challenges at the nuclear and other assets; (11) potential for M&A either as an acquirer or seller; (12) unfavorable commodity movements [natural gas, power, etc.]; (13) change in penetration from residential solar generation; and (14) other unforeseen changes.
Valuation is based on a peer average P/E multiple. Required Disclosures This report has been prepared by UBS Securities LLC, an affiliate of UBS AG. UBS AG, its subsidiaries, branches and affiliates are referred to herein as UBS. For information on the ways in which UBS manages conflicts and maintains independence of its research product; historical performance information; and certain additional disclosures concerning UBS research recommendations, please visit www.ubs.com/disclosures. The figures contained in performance charts refer to the past; past performance is not a reliable indicator of future results. Additional information will be made available upon request. UBS Securities Co. Limited is licensed to conduct securities investment consultancy businesses by the China Securities Regulatory Commission. UBS acts or may act as principal in the debt securities (or in related derivatives) that may be the subject of this report. Analyst Certification: Each research analyst primarily responsible for the content of this research report, in whole or in part, certifies that with respect to each security or issuer that the analyst covered in this report: (1) all of the views expressed accurately reflect his or her personal views about those securities or issuers and were prepared in an independent manner, including with respect to UBS, and (2) no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by that research analyst in the research report. UBS Investment Research: Global Equity Rating Definitions 12-Month Rating | Definition | Coverage | IB Services | Buy | FSR is > 6% above the MRA. | 49% | 32% | Neutral | FSR is between -6% and 6% of the MRA. | 38% | 26% | Sell | FSR is > 6% below the MRA. | 14% | 19% | Short-Term Rating | Definition | Coverage | IB Services | Buy | Stock price expected to rise within three months from the time the rating was assigned because of a specific catalyst or event. | <1% | <1% | Sell | Stock price expected to fall within three months from the time the rating was assigned because of a specific catalyst or event. | <1% | <1% |
Source: UBS. Rating allocations are as of 31 March 2016. 1:Percentage of companies under coverage globally within the 12-month rating category. 2:Percentage of companies within the 12-month rating category for which investment banking (IB) services were provided within the past 12 months. 3:Percentage of companies under coverage globally within the Short-Term rating category. 4:Percentage of companies within the Short-Term rating category for which investment banking (IB) services were provided within the past 12 months. KEY DEFINITIONS: Forecast Stock Return (FSR) is defined as expected percentage price appreciation plus gross dividend yield over the next 12 months. Market Return Assumption (MRA) is defined as the one-year local market interest rate plus 5% (a proxy for, and not a forecast of, the equity risk premium). Under Review (UR) Stocks may be flagged as UR by the analyst, indicating that the stock's price target and/or rating are subject to possible change in the near term, usually in response to an event that may affect the investment case or valuation. Short-Term Ratings reflect the expected near-term (up to three months) performance of the stock and do not reflect any change in the fundamental view or investment case. Equity Price Targets have an investment horizon of 12 months. EXCEPTIONS AND SPECIAL CASES: UK and European Investment Fund ratings and definitions are: Buy: Positive on factors such as structure, management, performance record, discount; Neutral: Neutral on factors such as structure, management, performance record, discount; Sell: Negative on factors such as structure, management, performance record, discount. Core Banding Exceptions (CBE): Exceptions to the standard +/-6% bands may be granted by the Investment Review Committee (IRC). Factors considered by the IRC include the stock's volatility and the credit spread of the respective company's debt. As a result, stocks deemed to be very high or low risk may be subject to higher or lower bands as they relate to the rating. When such exceptions apply, they will be identified in the Company Disclosures table in the relevant research piece. Research analysts contributing to this report who are employed by any non-US affiliate of UBS Securities LLC are not registered/qualified as research analysts with FINRA. Such analysts may not be associated persons of UBS Securities LLC and therefore are not subject to the FINRA restrictions on communications with a subject company, public appearances, and trading securities held by a research analyst account. The name of each affiliate and analyst employed by that affiliate contributing to this report, if any, follows. UBS Securities LLC: Julien Dumoulin-Smith; Michael Weinstein; Paul Zimbardo. Company Disclosures Company Name | Reuters | 12-month rating | Short-term rating | Price | Price date | Pinnacle West Capital Co. | PNW.N | Neutral | N/A | US$75.26 | 06 Jun 2016 |
Source: UBS. All prices as of local market close. Ratings in this table are the most current published ratings prior to this report. They may be more recent than the stock pricing date 6.This company/entity is, or within the past 12 months has been, a client of UBS Securities LLC, and investment banking services are being, or have been, provided. 16.UBS Securities LLC makes a market in the securities and/or ADRs of this company. Unless otherwise indicated, please refer to the Valuation and Risk sections within the body of this report. For a complete set of disclosure statements associated with the companies discussed in this report, including information on valuation and risk, please contact UBS Securities LLC, 1285 Avenue of Americas, New York, NY 10019, USA, Attention: Investment Research. Pinnacle West Capital Co. (US$) 
Source: UBS; as of 06 Jun 2016 |
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