Pinnacle West Capital Corporation (NYSE:PNW) Q3 2020 Earnings Conference Call - Final Transcript

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

Hi guys.

Good morning, Michael.

On the amendments to the proposed energy rules package, can you give us a sense of how those amendments -- and how the energy rule package in general would affect the 6% to 7% rate base growth profile that you currently are predicting? And at what point do we get an update on all of this when you -- in order when you incorporate all of that into it?

Yes. Let me start Michael on just the rulemaking and either Ted and Barbara may want to weigh in. So one thing I think is the alignment that we see from the energy rules package is really important and if there is a fairly nice alignment with our efforts to decarbonize by 2050, and I think the interim targets, while the dates are a little bit different. They're not -- the alignment is still there. And so I think it's consistent with what we were saying as our plan. It's still got to go through the rulemaking process. So this just starts the rulemaking, it's a formal rulemaking and that will likely happen next year.

Yes, Michael, this is Ted. I'll just say that given that the amendments and the plan where it looks like I said it is largely consistent with a clean energy commitment, our rate base growth that we have outlined was already contemplating carbon free and energy -- clean energy goals consistent with these energy rules. So that's how I think about it.

Got you. Great. And also on the rate case, as we're going forward, with the Staff recommendation out now, I just wanted to confirm if there is no -- where would you consider the odds of the settlement process at this point. I mean, maybe after the election is over. Is it even possible at this point to get it done or is it just not enough time?

We're -- Michael, we're still -- this is right now proceeding down a litigated path and so that's the process that we're following right now. As we said before, we'd always be open for those conversations and it could be a narrow one with some of the individual participants, fine alignment, take some issues off the table. So we'd continue to be open to it, but we're focused on the litigated path right now.

Okay, great. That's it from me for now. Thank you.

Great. Thanks, Michael.

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

Hey, good morning team. Thanks for the time. I appreciate it.

Hey Julien.

Hey, good morning. So perhaps if I can just pick up where your prepared remarks kind of left off. Can you talk a little bit more about the procurements that you just alluded