Pinnacle West Capital Corp was incorporated in 1985 under the laws of the State of Arizona. It is a holding company that conducts business through its subsidiaries. Its subsidiary APS is a vertically-integrated electric utility that provides either retail or wholesale electric services in the State of Arizona, with the exceptions of about one-half of the Phoenix metropolitan area, the Tucson metropolitan area and Mohave County in northwestern Arizona. Its other operating subsidiary is El Dorado. El Dorado is a corporate venture company that invests in and develops companies offering energy-related technologies and services. The Company's only reportable business segment is its regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (mainly electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution. It competes with other investor-owned electric and gas utilities in Arizona as well as cooperatives, municipalities, electrical districts and similar types of governmental or non-profit organizations. The Company is subject to comprehensive regulation by several federal, state and local regulatory agencies that significantly influence its business, liquidity, results of operations and its ability to fully recover costs from utility customers in a timely manner.