Even with increasing customer efficiencies, an aggressive demand-side management program and high performance from its existing power plants, Pinnacle West Capital Corp. will need to expand its electrical system by more than 50 percent over the next 12 years to meet Arizona’s future energy needs, Chairman Bill Post told shareholders at the company’s annual meeting.

Post said that reliable, affordable electric power is the key energy cornerstone in a dynamic, modern economy. “The tie between growth in the economy and growth in dependable electricity is inarguable and mutually enabling. Compared to any other energy source, electricity is, by far, the greatest value. In the last 20 years, APS’ actual electric prices have gone up 10 percent. Inflation was up 82 percent and, by comparison, natural gas has increased 146 percent, gasoline has grown 292 percent, and oil has risen 695 percent.”

“As vital as electricity has been in Arizona, it will likely be more so in the future,” Post added. “Our principal subsidiary, Arizona Public Service (APS), will add customers at or near the fastest rate of any utility in the country. As a result, we will invest $10 billion in electric infrastructure over the next 10 years to provide the basic energy needs of Arizona.”

However, Post said the specifics of how the company builds and pays for this future are key pieces of the puzzle that must be solved soon, especially given that Arizona’s growth means APS faces a need for new base load energy capacity within the next five to eight years.