Pinnacle West Capital

1. Regulatory Risk: Pinnacle West Capital Corporation is subject to many different policies and regulations, such as those imposed by the Securities and Exchange Commission, the Federal Energy Regulatory Commission, and public utilities commissions. A change in any of these could adversely affect Pinnacle West's ability to operate.

2. Interest Rate Risk: Pinnacle West is exposed to interest rate risk due to their significant amount of debt. If interest rates go up, the company’s income and profitability could suffer.

3. Operational Risk: Any disruptions in operations could result in the reduction or loss of customers, jeopardizing Pinnacle West's future performance.

4. Competition Risk: Pinnacle West is facing competition from other utility companies, as well as from alternative sources of energy. This competition could reduce Pinnacle West's market share and profits.

5. Environmental Risk: Pinnacle West is subject to certain environmental policies and regulations. A failure to comply with these could lead to fines and other penalties, which could impact the company's bottom line.

6. Financial Risk: Pinnacle West is highly leveraged, which means it is exposed to the risk of financial distress due to its large debt load. This risk could be exacerbated by a decline in its cash flows.