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Case Study - Pinnacle West Capital Corporation


One of the most successful engagements of this team was its work with the substation maintenance group that eventually culminated in the TOAN project and the Edison Award. Authorized for use only by Kaiyin Wan in Business Process Management at San Francisco State University from Aug 25, 2014 to Dec 20, 2014. Use outside these parameters is a copyright violation.
             Company Background.
             Pinnacle West, based in Phoenix, Arizona, provided energy and energy-related services and products to residential and business consumers in Arizona. PNW had been in business for more than 120 years. The company's largest subsidiary, APS, served more than a million customers across Arizona. APS also co- owned and operated the Palo Verde Nuclear Power Generating Station. Palo Verde was the largest power generation facility in the United States and was a primary source of power for the Southwest United States. Arizona's utility industry was highly regulated with two power utilities serving most of Arizona utility customers. Apart from nuclear power (24 per cent of total power supplied), the generation portfolio for the company included coal (37 per cent), natural gas (18 per cent) and solar (less than one per cent) - about 20 per cent of the power was purchased from outside sources. In the early part of the 21st century, Arizona was one of the fastest-growing states in the United States. In 2008, it was the second fastest-growing state, with a population of about 6.5 million. During 2008, APS served more than a million customers in Arizona. In addition to APS, Pinnacle West also owned a real-estate subsidiary, SunCor, which accounted for four per cent of operating revenues in 2008. The electricity generation, transmission and distribution activities contributed to 93 per cent of the operating revenues in 2008. Pinnacle West employed approximately 7,500 people, and of those approximately 6,900 were APS employees.


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