8-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 30, 2006

	Exact Name of Registrant as Specified
	in Charter; State of Incorporation;	IRS Employer
Commission File Number	Address and Telephone Number	Identification Number
1-8962	Pinnacle West Capital Corporation	86-0512431
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix, AZ 85072-3999
	(602) 250-1000
1-4473	Arizona Public Service Company	86-0011170
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix, AZ 85072-3999
	(602) 250-1000

      Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

      o Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)

      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

      o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

      This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

TABLE OF CONTENTS

	Page
Item 2.02 Results of Operations and Financial Condition	2
Item 7.01 Regulation FD Disclosure	3
Item 9.01 Financial Statements and Exhibits	4
Signatures	5
EX-99.1
EX-99.2
EX-99.3
EX-99.4
EX-99.5
EX-99.6
EX-99.7
EX-99.8
EX-99.9
EX-99.10
EX-99.11

Item 2.02. Results of Operations and Financial Condition

      Certain of the Information referenced in Item 7.01 below relates to Pinnacle West Capital Corporation’s (“Pinnacle West” or the “Company”) results of operations for the three and nine months ended September 30, 2006. This Information is attached hereto as Exhibits 99.2, 99.3 99.7, 99.9, 99.10 and 99.11.

      On October 27, 2006, the Company issued a press release regarding its financial results for the three and nine months ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.9.

      The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3 99.7, 99.9, 99.10 and 99.11 of this report relating to the Company’s financial results for the three and nine months ended September 30, 2006 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

      Exhibit 99.9 to this report contains certain “non-GAAP financial measures,” as defined in Item 10(e) of Regulation S-K of the Exchange Act. We describe these non-GAAP financial measures as “on-going earnings” and “on-going earnings per share.” Exhibit 99.9 contains a table that reconciles each of these non-GAAP financial measures to net income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe on-going earnings provide investors with a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items that may occur on an irregular basis. Investors should note that these non-GAAP financial measures involve judgments by management, including whether an item is classified as an unusual item. We use on-going earnings, or similar concepts, to measure our performance internally in reports for management.

2

Item 7.01. Regulation FD Disclosure

Financial and Business Information

      The Company is providing quarterly consolidated statistical summaries and a glossary of relevant terms (collectively, “Information”) to help interested parties better understand its business (see Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6, 99.7, 99.8, 99.10 and 99.11). This Information is concurrently being posted to the Company’s website at www.pinnaclewest.com. The Information may not represent all of the factors that could affect the Company’s operating or financial results for various periods. Some of the Information is preliminary in nature and could be subject to significant adjustment. Some of the Information is based on information received from third parties and may contain inaccuracies. The Company is not responsible for any such inaccuracies. Although the Company may update or correct the Information if it is aware that such Information has been revised or is inaccurate, the Company assumes no obligation to update or correct the Information and reserves the right to discontinue the provision of all or any portion of the Information at any time or to change the type of Information provided.

3

Item 9.01. Financial Statements and Exhibits

(c) Exhibits.

Exhibit
No.	Registrant(s)	Description
99.1	Pinnacle West Arizona Public Service Company (“APS”)	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).
99.2	Pinnacle West APS	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the nine-month periods ended September 30, 2006 and 2005.
99.3	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.
99.4	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.
99.5	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.
99.6	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.
99.7	Pinnacle West APS	Pinnacle West Capital Corporation earnings variance explanations for the three and nine months ended September 30, 2006 and 2005 and condensed consolidated statements of income for the three and nine months ended September 30, 2006 and 2005.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on October 27, 2006.
99.10	Pinnacle West APS	Non-GAAP Financial Measure Reconciliation-Operating Income (GAAP Measure) to Gross Margin (Non-GAAP Financial Measure).
99.11	Pinnacle West APS	Non-GAAP Financial Measure Reconciliation-Net Income (GAAP Measure) to On-Going Earnings (Non-GAAP Financial Measure).

4

SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PINNACLE WEST CAPITAL CORPORATION (Registrant)
Dated: October 27, 2006	By:	/s/ Barbara M. Gomez
		Barbara M. Gomez
		Vice President and Treasurer
	ARIZONA PUBLIC SERVICE COMPANY (Registrant)
Dated: October 27, 2006	By:	/s/ Barbara M. Gomez
		Barbara M. Gomez
		Vice President and Treasurer

5

EX-99.1

Exhibit 99.1

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

List of Contents

2006 Third Quarter Summary

2006 Year-to-Date

2005 by Quarter

2004 by Quarter

2003 by Quarter

Quarters may not sum to totals due to rounding.

Certain current and prior-year amounts have been reclassified to conform to current-period presentation.

The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2006Q3QuarStatsGloss.pdf

This statistical data may be graphed in various quarterly or annual comparisons
using the “Interactive Charts” tool on the Pinnacle West website at:
http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/landing.html

EX-99.2

Exhibit 99.2

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	169		$	61		$	108		$	257		$	152		$	105
2	Pinnacle West Energy		—			(71	)		71			—			(80	)		80
3	APS Energy Services		(2	)		—			(2	)		(1	)		(3	)		2
4	SunCor		17			7			10			47			26			21
5	El Dorado		—			—			—			(2	)		(1	)		(1	)
6	Parent Company		—			88			(88	)		6			105			(99	)
7	Income From Continuing Operations		184			85			99			307			199			108
8	Income (Loss) From Discontinued Operations — Net of Tax		—			19			(19	)		2			(44	)		46
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
10	Net Income	$	184		$	104		$	80		$	309		$	155		$	154
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	1.69		$	0.62		$	1.07		$	2.57		$	1.59		$	0.98
12	Pinnacle West Energy		—			(0.72	)		0.72			—			(0.83	)		0.83
13	APS Energy Services		(0.02	)		—			(0.02	)		(0.01	)		(0.03	)		0.02
14	SunCor		0.17			0.07			0.10			0.47			0.27			0.20
15	El Dorado		—			(0.01	)		0.01			(0.02	)		(0.01	)		(0.01	)
16	Parent Company		—			0.90			(0.90	)		0.06			1.09			(1.03	)
17	Income From Continuing Operations		1.84			0.86			0.98			3.07			2.08			0.99
18	Income (Loss) From Discontinued Operations — Net of Tax		—			0.19			(0.19	)		0.03			(0.46	)		0.49
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
20	Net Income	$	1.84		$	1.05		$	0.79		$	3.10		$	1.62		$	1.48
21	BOOK VALUE PER SHARE	$	34.07	*	$	35.81		$	(1.74	)	$	34.07	*	$	35.81			(1.74	)
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,973			98,816			1,157			99,723			95,755			3,968
23	End of Period		99,648			98,881			767			99,648			98,881			767

* Estimate

See Glossary of Terms

Page 2 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September							9 Mo. Ended September
Line		2006		2005		Incr (Decr)			2006		2005		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	490	$	414	$	76		$	1,029	$	872	$	157
25	Business		371		308		63			937		798		139
26	Total retail		861		722		139			1,966		1,670		296
	Wholesale revenue on delivered electricity
27	Traditional contracts		12		9		3			25		17		8
28	Off-system sales		—		8		(8	)		34		20		14
29	Transmission for others		7		7		—			19		21		(2	)
30	Other miscellaneous services		7		7		—			22		21		1
31	Total regulated operating electricity revenues		887		753		134			2,066		1,749		317
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		85		107		(22	)		259		267		(8	)
33	Total operating electric revenues	$	972	$	860	$	112		$	2,325	$	2,016	$	309
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		4,720		4,449		271			10,423		9,705		718
35	Business		4,222		4,100		122			11,392		10,826		566
36	Total retail		8,942		8,549		393			21,815		20,531		1,284
	Wholesale electricity delivered
37	Traditional contracts		321		269		52			717		624		93
38	Off-system sales		300		212		88			1,497		810		687
39	Retail load hedge management		622		1,026		(404	)		1,227		2,478		(1,251	)
40	Total regulated electricity		10,185		10,056		129			25,256		24,443		813
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		4,841		7,263		(2,422	)		12,594		18,332		(5,738	)
42	Total electric sales		15,026		17,319		(2,293	)		37,850		42,775		(4,925	)

See Glossary of Terms

Page 3 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset - - beginning balance	$	175		$	38		$	137		$	173		$	—		$	173
44	Deferred fuel and purchased power costs — current period		134			104			30			225			142			83
45	Interest on deferred fuel		2			1			1			6			1			5
46	Amounts recovered through revenues		(102	)		—			(102	)		(195	)		—			(195	)
47	Deferred fuel and purchased power regulatory asset - - ending balance	$	209		$	143		$	66		$	209		$	143		$	66
	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	8		$	3		$	5		$	36		$	33		$	3
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		3			(4	)		(3	)		(5	)		2
50	Change in mark-to-market value of forward sales		(3	)		14			(17	)		(2	)		24			(26	)
51	Total gross margin	$	4		$	20		$	(16	)	$	31		$	52		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	5		$	26		$	(21	)	$	15		$	53		$	(38	)
53	APS		(3	)		(8	)		5			8			(9	)		17
54	Pinnacle West Energy		—			—			—			—			5			(5	)
55	APS Energy Services		2			2			—			8			3			5
56	Total gross margin	$	4		$	20		$	(16	)	$	31		$	52		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2006, $8 million; 2007, $17 million; and 2008, $15 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third quarter of 2006.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms

Page 4 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		935,523			895,789			39,734			932,241			891,422			40,819
58	Business		116,009			111,648			4,361			114,794			110,700			4,094
59	Total		1,051,532			1,007,437			44,095			1,047,035			1,002,122			44,913
60	Wholesale customers		76			78			(2	)		76			78			(2	)
61	Total customers		1,051,608			1,007,515			44,093			1,047,111			1,002,200			44,911
62	Customer growth (% over prior year)		4.4	%		4.5	%		(0.1	)%		4.5	%		4.2	%		0.3	%
	RETAIL SALES (GWH) — WEATHER NORMALIZED
63	Residential		4,776			4,421			355			10,395			9,765			630
64	Business		4,232			4,120			112			11,410			10,871			539
65	Total		9,008			8,541			467			21,805			20,636			1,169
	RETAIL USAGE (KWh/Average Customer)
66	Residential		5,045			4,967			78			11,181			10,887			294
67	Business		36,394			36,723			(329	)		99,238			97,795			1,443
	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		5,105			4,935			170			11,151			10,954			197
69	Business		36,477			36,899			(422	)		99,395			98,202			1,193
	ELECTRICITY DEMAND (MW)
70	System peak demand		7,652			7,000			652			7,652			7,000			652

See Glossary of Terms

Page 5 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,202			2,147			55			5,120			6,013			(893	)
72	Coal		3,574			3,574			—			9,839			9,602			237
73	Gas, oil and other		2,433			3,064			(631	)		5,756			6,321			(565	)
74	Total generation production		8,209			8,785			(576	)		20,715			21,936			(1,221	)
	Purchased power
75	Firm load		1,962			1,589			373			4,067			3,055			1,012
76	Marketing and trading		5,607			7,795			(2,188	)		14,912			19,611			(4,699	)
77	Total purchased power		7,569			9,384			(1,815	)		18,979			22,666			(3,687	)
78	Total energy sources		15,778			18,169			(2,391	)		39,694			44,602			(4,908	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		88	%		88	%		0	%		69	%		83	%		(14	)%
80	Coal		94	%		95	%		(1	)%		87	%		86	%		1	%
81	Gas, oil and other		34	%		39	%		(5	)%		26	%		29	%		(3	)%
82	System average		61	%		62	%		(1	)%		51	%		54	%		(3	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a)
83	Nuclear		97			107			(10	)		119			163			(44	)
84	Coal		62			47			15			62			162			(100	)
85	Gas		109			140			(31	)		53			172			(119	)
86	Total		268			294			(26	)		234			497			(263	)

(a) Includes planned and unplanned outages

See Glossary of Terms

Page 6 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	65.89		$	78.94		$	(13.05	)	$	58.10		$	60.67		$	(2.57	)
88	SP15	$	71.89		$	83.21		$	(11.32	)	$	61.87		$	64.70		$	(2.83	)
	Off-Peak
89	Palo Verde	$	38.45		$	52.35		$	(13.90	)	$	36.25		$	40.81		$	(4.56	)
90	SP15	$	43.94		$	56.08		$	(12.14	)	$	38.82		$	43.92		$	(5.10	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		2,455			2,583			(128	)		4,238			4,155			83
92	Heating degree-days		—			—			—			468			458			10
93	Average humidity		33	%		29	%		4	%		26	%		35	%		(9	)%
	10-Year Averages
94	Cooling degree-days		2,541			2,541			—			4,187			4,187			—
95	Heating degree-days		—			—			—			545			545			—
96	Average humidity		33	%		33	%		0	%		32	%		32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
97	Single-family		4,397			8,000			(3,603	)		21,996			30,369			(8,373	)
98	Multi-family		2,031			2,038			(7	)		7,894			5,424			2,470
99	Total		6,428			10,038			(3,610	)		29,890			35,793			(5,903	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		4.7	%		6.1	%		(1.4	)%		5.1	%		5.4	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.2	%		4.8	%		(0.6	)%		4.3	%		4.7	%		(0.4	)%

Sources:
(a)	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b)	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c)	Arizona Department of Economic Security
(d)	Economic indicators reflect latest available data through periods ended August 31, 2006.

See Glossary of Terms

Page 7 of 31

EX-99.3

Exhibit 99.3

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2006

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr		3rd Qtr			4th Qtr		Year-To-Date			vs Prior YTD
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	(6	)	$	94	$	169				$	257		$	105
2	Pinnacle West Energy		—			—		—					—			80
3	APS Energy Services		1			—		(2	)				(1	)		2
4	SunCor		21			8		17					47			21
5	El Dorado		(1	)		—		—					(2	)		(1	)
6	Parent Company		(3	)		9		—					6			(99	)
7	Income From Continuing Operations		12			111		184			—		307			108
8	Income (Loss) From Discontinued Operations — Net of Tax		—			1		—					2			46
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—		—			—
10	Net Income	$	12		$	112	$	184		$	—	$	309		$	154
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69				$	2.57		$	0.98
12	Pinnacle West Energy		—			—		—					—			0.83
13	APS Energy Services		0.01			—		(0.02	)				(0.01	)		0.02
14	SunCor		0.21			0.08		0.17					0.47			0.20
15	El Dorado		(0.01	)		—		—					(0.02	)		(0.01	)
16	Parent Company		(0.03	)		0.08		—					0.06			(1.03	)
17	Income From Continuing Operations		0.12			1.11		1.84			—		3.07			0.99
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			0.02		—					0.03			0.49
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—		—			—
20	Net Income	$	0.13		$	1.13	$	1.84		$	—	$	3.10		$	1.48
21	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07	*			$	34.07	*		(1.74	)
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,449			99,640		99,973					99,723			3,968
23	End of Period		99,187			99,284		99,648					99,648			767

* Estimate

See Glossary of Terms

Page 8 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2006

												Increase
												(Decrease)
Line		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date		vs Prior YTD
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	202	$	337	$	490			$	1,029	$	157
25	Business		233		333		371				937		139
26	Total retail		435		670		861		—		1,966		296
	Wholesale revenue on delivered electricity
27	Traditional contracts		6		7		12				25		8
28	Off-system sales		12		22		—				34		14
29	Transmission for others		6		6		7				19		(2	)
30	Other miscellaneous services		7		8		7				22		1
31	Total regulated operating electricity revenues		466		713		887		—		2,066		317
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		85		90		85				259		(8	)
33	Total operating electric revenues	$	551	$	803	$	972	$	—	$	2,325	$	309
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,419		3,284		4,720				10,423		718
35	Business		3,199		3,971		4,222				11,392		566
36	Total retail		5,618		7,255		8,942		—		21,815		1,284
	Wholesale electricity delivered
37	Traditional contracts		215		181		321				717		93
38	Off-system sales		927		270		300				1,497		687
39	Retail load hedge management		90		515		622				1,227		(1,251	)
40	Total regulated electricity		6,850		8,221		10,185		—		25,256		813
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		3,891		3,862		4,841				12,594		(5,738	)
42	Total electric sales		10,741		12,083		15,026		—		37,850		(4,925	)

See Glossary of Terms

Page 9 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2006

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	173		$	169		$	175				$	173		$	173
44	Deferred fuel and purchased power costs — current period		13			78			134					225			83
45	Interest on deferred fuel		1			3			2					6			5
46	Amounts recovered through revenues		(18	)		(75	)		(102	)				(195	)		(195	)
47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	209		$	—	$	209		$	66
	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	11		$	17		$	8				$	36		$	3
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)				(3	)		2
50	Change in mark-to-market value of forward sales		1			—			(3	)				(2	)		(26	)
51	Total gross margin	$	11		$	16		$	4		$	—	$	31		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	(2	)	$	11		$	5				$	15		$	(38	)
53	APS		10			2			(3	)				8			17
54	Pinnacle West Energy		—			—			—					—			(5	)
55	APS Energy Services		3			3			2					8			5
56	Total gross margin	$	11		$	16		$	4		$	—	$	31		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2006, $8 million; 2007, $17 million; and 2008, $15 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third quarter of 2006.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms

Page 10 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		930,799			930,402			935,523					932,241			40,819
58	Business		113,570			114,803			116,009					114,794			4,094
59	Total		1,044,369			1,045,205			1,051,532			—		1,047,035			44,913
60	Wholesale customers		75			76			76					76			(2	)
61	Total customers		1,044,444			1,045,281			1,051,608			—		1,047,111			44,911
62	Customer growth (% over prior year)		4.5	%		4.6	%		4.4	%				4.5	%		0.3	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,514			3,105			4,776					10,395			630
64	Business		3,252			3,926			4,232					11,410			539
65	Total		5,766			7,031			9,008			—		21,805			1,169
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,763			3,530			5,045					11,181			294
67	Business		30,444			34,590			36,394					99,238			1,443
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,700			3,337			5,105					11,151			197
69	Business		28,636			34,194			36,477					99,395			1,193
	ELECTRICITY DEMAND (MW)
70	System peak demand		4,205			6,624			7,652					7,652			652

See Glossary of Terms

Page 11 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		1,720			1,198			2,202					5,120			(893	)
72	Coal		3,083			3,182			3,574					9,839			237
73	Gas, oil and other		1,323			2,000			2,433					5,756			(565	)
74	Total generation production		6,126			6,380			8,209			—		20,715			(1,221	)
	Purchased power
75	Firm load		365			1,740			1,962					4,067			1,012
76	Marketing and trading		4,759			4,546			5,607					14,912			(4,699	)
77	Total purchased power		5,124			6,286			7,569			—		18,979			(3,687	)
78	Total energy sources		11,250			12,666			15,778			—		39,694			(4,908	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		71	%		49	%		88	%				69	%		(14	)%
80	Coal		83	%		84	%		94	%				87	%		1	%
81	Gas, oil and other		18	%		28	%		34	%				26	%		(3	)%
82	System average		46	%		48	%		61	%				51	%		(3	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		306			553			97					119			(44	)
84	Coal		257			184			62					62			(100	)
85	Gas		201			117			109					53			(119	)
86	Total		764			854			268			—		234			(203	)

(a) Includes planned and unplanned outages

See Glossary of Terms

Page 12 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr		Year-To-Date			vs Prior YTD
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	53.78		$	54.63		$	65.89				$	58.10		$	(2.57	)
88	SP15	$	58.34		$	55.39		$	71.89				$	61.87		$	(2.83	)
	Off-Peak
89	Palo Verde	$	41.92		$	28.38		$	38.45				$	36.25		$	(4.56	)
90	SP15	$	44.79		$	27.73		$	43.94				$	38.82		$	(5.10	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		43			1,740			2,455					4,238			83
92	Heating degree-days		464			4			—					468			10
93	Average humidity		28	%		18	%		33	%				26	%		(9	)%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541					4,187			—
95	Heating degree-days		514			31			—					545			—
96	Average humidity		41	%		23	%		33	%				32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
97	Single-family		8,716			8,883			4,397					21,996			(8,373	)
98	Multi-family		2,887			2,976			2,031					7,894			2,470
99	Total		11,603			11,859			6,428			—		29,890			(5,903	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		5.6	%		4.8	%		4.7	%				5.1	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.4	%		4.3	%		4.2	%				4.3	%		(0.4	)%

Sources:
(a)	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b)	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c)	Arizona Department of Economic Security
(d)	Economic indicators reflect latest available data through periods ended August 31, 2006.

See Glossary of Terms

Page 13 of 31

EX-99.4

Exhibit 99.4

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	27		$	64		$	61		$	18		$	170		$	(30	)
2	Pinnacle West Energy		(21	)		12			(71	)		(6	)		(85	)		(27	)
3	APS Energy Services		(3	)		1			—			(3	)		(6	)		(9	)
4	SunCor		9			11			7			13			39			(2	)
5	El Dorado		(1	)		—			—			—			(2	)		(35	)
6	Parent Company		19			(3	)		88			2			107			79
7	Income From Continuing Operations		30			85			85			24			223			(24	)
8	Income (Loss) From Discontinued Operations — Net of Tax		(6	)		(58	)		19			(3	)		(47	)		(43	)
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
10	Net Income	$	24		$	27		$	104		$	21		$	176		$	(67	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.30		$	0.66		$	0.62		$	0.19		$	1.77		$	(0.41	)
12	Pinnacle West Energy		(0.23	)		0.13			(0.72	)		(0.06	)		(0.89	)		(0.26	)
13	APS Energy Services		(0.04	)		0.01			—			(0.04	)		(0.06	)		(0.09	)
14	SunCor		0.09			0.11			0.07			0.13			0.40			(0.05	)
15	El Dorado		(0.01	)		—			(0.01	)		(0.01	)		(0.02	)		(0.38	)
16	Parent Company		0.21			(0.03	)		0.90			0.03			1.11			0.81
17	Income From Continuing Operations		0.32			0.88			0.86			0.24			2.31			(0.38	)
18	Income (Loss) From Discontinued Operations — Net of Tax		(0.05	)		(0.60	)		0.19			(0.02	)		(0.49	)		(0.46	)
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
20	Net Income	$	0.27		$	0.28		$	1.05		$	0.22		$	1.82		$	(0.84	)
21	BOOK VALUE PER SHARE	$	32.50		$	32.89		$	35.81		$	34.58		$	34.58		$	2.44
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		92,045			96,299			98,816			99,050			96,590			5,058
23	End of Period		92,103			98,442			98,881			99,057			99,057			7,264

See Glossary of Terms

Page 14 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

												Increase
												(Decrease)
Line		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date		vs Prior YTD
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	190	$	268	$	414	$	207	$	1,079	$	95
25	Business		209		281		308		243		1,041		63
26	Total retail		399		549		722		450		2,120		158
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		5		9		6		23		7
28	Off-system sales		—		12		8		20		40		40
29	Transmission for others		7		7		7		5		26		(6	)
30	Other miscellaneous services		7		7		7		7		28		3
31	Total regulated operating electricity revenues		416		580		753		488		2,237		202
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		89		71		107		83		351		(50	)
33	Total operating electric revenues	$	505	$	651	$	860	$	571	$	2,588	$	152
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,367		2,889		4,449		2,518		12,223		696
35	Business		3,042		3,684		4,100		3,427		14,254		428
36	Total retail		5,409		6,573		8,549		5,945		26,477		1,124
	Wholesale electricity delivered
37	Traditional contracts		155		200		269		227		850		141
38	Off-system sales		—		598		212		526		1,336		1,336
39	Retail load hedge management		750		702		1,026		532		3,010		278
40	Total regulated electricity		6,314		8,073		10,056		7,230		31,673		2,879
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		6,060		5,009		7,263		5,240		23,572		(6,606	)
42	Total electric sales		12,374		13,082		17,319		12,470		55,245		(3,727	)

See Glossary of Terms

Page 15 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	38			143		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			38			104			29			171			171
45	Interest on deferred fuel		—			—			1			1			2			2
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	38		$	143		$	173		$	173		$	173
	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	12		$	18		$	3		$	22		$	55		$	(9	)
49	Mark-to-market reversals on realized sales (a) (b)		(3	)		(8	)		3			(17	)		(16	)		(11	)
50	Change in mark-to-market value of forward sales		10			3			14			1			20			(1	)
51	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	21		$	6		$	26		$	5		$	59		$	34
53	APS		(4	)		3			(8	)		3			(6	)		(1	)
54	Pinnacle West Energy		5			—			—			—			5			(41	)
55	APS Energy Services		(3	)		4			2			(2	)		1			(13	)
56	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $16 million was transferred to “realized” for the total year 2005. A $16 million realized gain is included in the $55 million on line 48 for the total year 2005.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms

Page 16 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		889,967			888,509			895,789			911,623			896,472			37,403
58	Business		109,795			110,658			111,648			112,569			111,168			4,053
59	Total		999,762			999,167			1,007,437			1,024,192			1,007,640			41,456
60	Wholesale customers		81			76			78			77			78			(3	)
61	Total customers		999,843			999,243			1,007,515			1,024,269			1,007,718			41,453
62	Customer growth (% over prior year)		4.0	%		4.2	%		4.5	%		4.5	%		4.3	%		0.6	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,439			2,905			4,421			2,515			12,280			572
64	Business		3,058			3,693			4,120			3,414			14,286			415
65	Total		5,497			6,598			8,541			5,929			26,566			987
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,660			3,252			4,967			2,763			13,635			217
67	Business		27,706			33,292			36,723			30,444			128,514			(878	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,741			3,269			4,935			2,758			13,698			70
69	Business		27,860			33,377			36,899			30,332			128,507			(987	)
	ELECTRICITY DEMAND (MW)
70	System peak demand		3,997			6,458			7,000			5,169			7,000			598

See Glossary of Terms

Page 17 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,247			1,619			2,147			1,496			7,509			(674	)
72	Coal		2,940			3,088			3,574			3,458			13,060			394
73	Gas, oil and other		1,128			2,129			3,064			2,114			8,435			3,107
74	Total generation production		6,315			6,836			8,785			7,068			29,004			2,827
	Purchased power
75	Firm load		586			880			1,589			402			3,474			(851	)
76	Marketing and trading		5,832			5,984			7,795			6,102			25,713			(4,479	)
77	Total purchased power		6,418			6,864			9,384			6,504			29,187			(5,330	)
78	Total energy sources		12,733			13,700			18,169			13,572			58,191			(2,503	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		94	%		67	%		88	%		61	%		77	%		(7	)%
80	Coal		80	%		83	%		95	%		91	%		87	%		3	%
81	Gas, oil and other		17	%		29	%		39	%		27	%		28	%		8	%
82	System average		49	%		51	%		62	%		50	%		53	%		2	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		52			329			107			419			114			(45	)
84	Coal		195			244			47			103			73			(55	)
85	Gas		212			164			140			226			93			45
86	Total		459			737			294			748			280			(54	)

(a) Includes planned and unplanned outages

See Glossary of Terms

Page 18 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	49.74		$	53.33		$	78.94		$	83.58		$	66.40		$	17.10
88	SP15	$	55.70		$	55.19		$	83.21		$	97.65		$	72.94		$	17.74
	Off-Peak
89	Palo Verde	$	37.04		$	33.03		$	52.35		$	67.79		$	47.55		$	12.81
90	SP15	$	40.96		$	34.73		$	56.08		$	76.45		$	52.06		$	13.44
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		34			1,538			2,583			508			4,663			(31	)
92	Heating degree-days		457			1			—			308			766			(219	)
93	Average humidity		56	%		20	%		29	%		30	%		34	%		2	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
97	Single-family		10,356			12,013			11,577			9,312			43,258			(4,859	)
98	Multi-family		1,741			1,645			2,360			2,032			7,778			192
99	Total		12,097			13,658			13,937			11,344			51,036			(4,667	)
	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		4.8	%		5.5	%		6.1	%		6.0	%		5.6	%		2.2	%
101	Unemployment rate (%, seasonally adjusted)		4.5	%		4.7	%		4.8	%		4.7	%		4.7	%		(0.3	)%

Sources:
(a)	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b)	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c)	Arizona Department of Economic Security

See Glossary of Terms

Page 19 of 31

EX-99.5

Exhibit 99.5

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr			Year-To-Date			vs Prior YTD
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	34		$	55		$	95	$	15		$	200		$	19
2	Pinnacle West Energy		(22	)		(14	)		1		(23	)		(58	)		(50	)
3	APS Energy Services		2			1			1		(1	)		3			(13	)
4	SunCor		2			4			4		31			41			(5	)
5	El Dorado		—			34			—		—			33			34
6	Parent Company		15			(6	)		3		16			28			37
7	Income From Continuing Operations		31			74			104		38			247			22
8	Income (Loss) From Discontinued Operations — Net of Tax		—			(1	)		1		(4	)		(4	)		(20	)
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—
10	Net Income	$	31		$	73		$	105	$	34		$	243		$	2
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.38		$	0.60		$	1.04	$	0.16		$	2.18		$	0.20
12	Pinnacle West Energy		(0.24	)		(0.15	)		0.01		(0.25	)		(0.63	)		(0.55	)
13	APS Energy Services		0.02			0.01			0.01		(0.01	)		0.03			(0.15	)
14	SunCor		0.02			0.04			0.05		0.34			0.45			(0.05	)
15	El Dorado		—			0.37			—		—			0.36			0.37
16	Parent Company		0.15			(0.06	)		0.03		0.17			0.30			0.40
17	Income From Continuing Operations		0.33			0.81			1.14		0.41			2.69			0.22
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			(0.02	)		0.01		(0.04	)		(0.03	)		(0.19	)
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—
20	Net Income	$	0.34		$	0.79		$	1.15	$	0.37		$	2.66		$	0.03
21	BOOK VALUE PER SHARE	$	31.19		$	31.68		$	32.55	$	32.14		$	32.14		$	1.17
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		91,376			91,400			91,491		91,779			91,532			127
23	End of Period		91,310			91,309			91,443		91,793			91,793			505

See Glossary of Terms

Page 20 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

												Increase
												(Decrease)
Line		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date		vs Prior YTD
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	189	$	245	$	360	$	190	$	984	$	27
25	Business		211		257		289		221		978		25
26	Total retail		400		502		649		411		1,962		52
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		4		6		3		16		1
28	Off-system sales		—		—		—		—		—		—
29	Transmission for others		8		8		8		8		32		4
30	Other miscellaneous services		4		6		8		7		25		—
31	Total regulated operating electricity revenues		415		520		671		429		2,035		57
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		89		110		91		111		401		9
33	Total operating electric revenues	$	504	$	630	$	762	$	540	$	2,436	$	66
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,410		2,722		4,028		2,367		11,527		380
35	Business		3,051		3,602		3,937		3,236		13,826		411
36	Total retail		5,461		6,324		7,965		5,603		25,353		791
	Wholesale electricity delivered
37	Traditional contracts		138		195		210		166		709		209
38	Off-system sales		—		—		—		—		—		—
39	Retail load hedge management		169		731		943		889		2,732		1,638
40	Total regulated electricity		5,768		7,250		9,118		6,658		28,794		2,638
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		5,696		7,141		8,994		8,347		30,178		1,375
42	Total electric sales		11,464		14,391		18,112		15,005		58,972		4,013

See Glossary of Terms

Page 21 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			—			—			—			—			—
45	Interest on deferred fuel		—			—			—			—			—			—
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—
	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	12		$	21		$	16		$	15		$	64		$	(1	)
49	Mark-to-market reversals on realized sales (a) (b)		1			(4	)		(3	)		(1	)		(5	)		6
50	Change in mark-to-market value of forward sales		8			4			8			3			21			28
51	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	12		$	6		$	5		$	1		$	25		$	30
53	APS		(5	)		—			2			(2	)		(5	)		(13	)
54	Pinnacle West Energy		10			11			10			16			46			38
55	APS Energy Services		4			4			4			2			14			(22	)
56	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $5 million was transferred to “realized” for the total year 2004. A $5 million realized gain is included in the $64 million on line 48 for the total year 2004.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms

Page 22 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		855,754			852,594			856,353			871,575			859,069			30,703
58	Business		105,502			106,517			107,583			108,860			107,115			4,019
59	Total		961,256			959,111			963,936			980,435			966,184			34,722
60	Wholesale customers		81			82			85			77			81			15
61	Total customers		961,337			959,193			964,021			980,512			966,265			34,737
62	Customer growth (% over prior year)		3.4	%		3.8	%		3.9	%		3.9	%		3.7	%		0.4	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,366			2,798			4,209			2,334			11,708			804
64	Business		2,998			3,616			4,005			3,252			13,871			469
65	Total		5,364			6,414			8,214			5,586			25,579			1,273
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,816			3,193			4,704			2,717			13,418			(39	)
67	Business		28,919			33,816			36,595			29,726			129,392			(1,137	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,765			3,282			4,915			2,678			13,628			465
69	Business		28,421			33,944			37,224			29,874			129,494			(503	)
	ELECTRICITY DEMAND (MW)
70	System peak demand		3,979			5,632			6,402			4,432			6,402			70

See Glossary of Terms

Page 23 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,148			1,860			2,364			1,811			8,183			(132	)
72	Coal		2,887			3,035			3,417			3,327			12,666			1,299
73	Gas, oil and other		367			1,339			2,547			1,075			5,328			(763	)
74	Total generation production		5,402			6,234			8,328			6,213			26,177			404
	Purchased power
75	Firm load		701			1,532			1,068			1,024			4,325			1,214
76	Marketing and trading		5,506			7,167			9,301			8,218			30,192			2,442
77	Total purchased power		6,207			8,699			10,369			9,242			34,517			3,656
78	Total energy sources		11,609			14,933			18,697			15,455			60,694			4,060
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		88	%		76	%		96	%		74	%		84	%		(3	)%
80	Coal		77	%		81	%		90	%		88	%		84	%		8	%
81	Gas, oil and other		5	%		20	%		38	%		17	%		20	%		(7	)%
82	System average		44	%		49	%		64	%		48	%		51	%		(3	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		132			231			13			261			159			28
84	Coal		237			153			63			61			128			(140	)
85	Gas		71			46			39			34			48			(160	)
86	Total		440			430			115			356			334			(272	)

(a) Includes planned and unplanned outages

See Glossary of Terms

Page 24 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	43.73		$	50.36		$	51.86		$	51.23		$	49.30		$	0.70
88	SP15	$	48.37		$	54.73		$	57.09		$	60.62		$	55.20		$	3.82
	Off-Peak
89	Palo Verde	$	33.66		$	33.74		$	33.37		$	38.21		$	34.75		$	2.72
90	SP15	$	36.90		$	37.32		$	37.18		$	43.07		$	38.62		$	3.96
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		273			1,598			2,471			352			4,694			(205	)
92	Heating degree-days		552			11			—			422			985			249
93	Average humidity		39	%		19	%		26	%		45	%		32	%		1	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
97	Single-family		10,045			13,636			14,111			10,325			48,117			8,466
98	Multi-family		1,757			1,324			2,149			2,356			7,586			859
99	Total		11,802			14,960			16,260			12,681			55,703			9,325
	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		2.7	%		3.3	%		3.6	%		3.9	%		3.4	%		2.0	%
101	Unemployment rate (%, seasonally adjusted)		5.2	%		5.1	%		4.9	%		4.6	%		5.0	%		(0.7	)%

Sources:
(a)	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b)	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c)	Arizona Department of Economic Security

See Glossary of Terms

Page 25 of 31

EX-99.6

Exhibit 99.6

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																Increase
																(Decrease)
Line		1st Qtr			2nd Qtr		3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	16		$	43	$	100		$	21		$	181		$	(18	)
2	Pinnacle West Energy		4			1		2			(15	)		(8	)		11
3	APS Energy Services		8			5		1			3			16			(12	)
4	SunCor		1			2		6			36			46			36
5	El Dorado		—			—		—			—			(1	)		4
6	Parent Company		(11	)		3		—			—			(9	)		(32	)
7	Income From Continuing Operations		18			54		109			45			225			(11	)
8	Income From Discontinued Operations — Net of Tax		7			2		1			4			16			37
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			66
10	Net Income	$	25		$	56	$	110		$	49		$	241		$	92
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.17		$	0.47	$	1.10		$	0.24		$	1.98		$	(0.37	)
12	Pinnacle West Energy		0.05			0.01		0.02			(0.16	)		(0.08	)		0.15
13	APS Energy Services		0.08			0.06		0.01			0.03			0.18			(0.15	)
14	SunCor		0.01			0.03		0.07			0.39			0.50			0.37
15	El Dorado		—			—		—			—			(0.01	)		0.05
16	Parent Company		(0.11	)		0.02		(0.01	)		(0.01	)		(0.10	)		(0.36	)
17	Income From Continuing Operations		0.20			0.59		1.19			0.49			2.47			(0.31	)
18	Income From Discontinued Operations — Net of Tax		0.08			0.02		0.01			0.05			0.16			0.41
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			0.77
20	Net Income	$	0.28		$	0.61	$	1.20		$	0.54		$	2.63		$	0.87
21	BOOK VALUE PER SHARE	$	29.39		$	29.95	$	30.68		$	30.97		$	30.97		$	1.57
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		91,359			91,450		91,467			91,403			91,405			6,441
23	End of Period		91,257			91,262		91,271			91,288			91,288			33

See Glossary of Terms

Page 26 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

												Increase
												(Decrease)
Line		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date		vs Prior YTD
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	168	$	233	$	363	$	193	$	957	$	51
25	Business		196		251		284		222		953		25
26	Total retail		364		484		647		415		1,910		76
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		4		5		3		15		7
28	Off-system sales		—		—		—		—		—		—
29	Transmission for others		6		5		9		8		28		(2	)
30	Other miscellaneous services		7		6		6		6		25		7
31	Total regulated operating electricity revenues		380		499		667		432		1,978		88
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		117		101		83		91		392		105
33	Total operating electric revenues	$	497	$	600	$	750	$	523	$	2,370	$	193
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,104		2,543		4,126		2,374		11,147		703
35	Business		2,849		3,450		3,891		3,225		13,415		497
36	Total retail		4,953		5,993		8,017		5,599		24,562		1,200
	Wholesale electricity delivered
37	Traditional contracts		130		131		127		112		500		27
38	Off-system sales		—		—		—		—		—		—
39	Retail load hedge management		109		205		446		334		1,094		(1,548	)
40	Total regulated electricity		5,192		6,329		8,590		6,045		26,156		(321	)
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		7,372		6,798		7,255		7,378		28,803		5,949
42	Total electric sales		12,564		13,127		15,845		13,423		54,959		5,628

See Glossary of Terms

Page 27 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			—			—			—			—			—
45	Interest on deferred fuel		—			—			—			—			—			—
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—
	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	25		$	20		$	4		$	16		$	65		$	(56	)
49	Mark-to-market reversals on realized sales (a) (b)		(3	)		1			(3	)		(1	)		(11	)		35
50	Change in mark-to-market value of forward sales		(3	)		(1	)		(3	)		(5	)		(7	)		(64	)
51	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	2		$	4		$	(2	)	$	(9	)	$	(5	)	$	(95	)
53	APS		6			4			(6	)		4			8			6
54	Pinnacle West Energy		(1	)		—			—			9			8			4
55	APS Energy Services		12			12			6			6			36			—
56	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $11 million was transferred to “realized” for the total year 2003. A $11 million realized gain is included in the $65 million on line 48 for the total year 2003.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms

Page 28 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		827,937			821,331			824,655			839,539			828,366			26,565
58	Business		101,999			102,601			103,262			104,521			103,096			2,868
59	Total		929,936			923,932			927,917			944,060			931,462			29,432
60	Wholesale customers		65			66			66			66			66			(1	)
61	Total customers		930,001			923,998			927,983			944,126			931,528			29,431
62	Customer growth (% over prior year)		3.3	%		3.1	%		3.2	%		3.4	%		3.3	%		0.2	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,218			2,477			3,939			2,269			10,904			443
64	Business		2,885			3,485			3,857			3,174			13,402			496
65	Total		5,103			5,962			7,796			5,443			24,306			939
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,541			3,096			5,004			2,828			13,457			432
67	Business		27,927			33,625			37,677			30,865			130,529			1,288
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,679			3,016			4,777			2,703			13,163			116
69	Business		28,286			33,969			37,356			30,371			129,997			1,234
	ELECTRICITY DEMAND (MW)
70	System peak demand		3,569			5,571			6,332			5,124			6,332			529

See Glossary of Terms

Page 29 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,306			2,047			2,230			1,732			8,315			(666	)
72	Coal		2,770			2,824			2,972			2,801			11,367			(690	)
73	Gas, oil and other		1,288			1,572			2,696			535			6,091			1,722
74	Total generation production		6,364			6,443			7,898			5,068			25,773			366
	Purchased power
75	Firm load		(12	)		606			1,099			1,418			3,111			1,492
76	Marketing and trading		6,489			6,527			7,498			7,236			27,750			4,045
77	Total purchased power		6,477			7,133			8,597			8,654			30,861			5,537
78	Total energy sources		12,841			13,576			16,495			13,722			56,634			5,903
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		98	%		86	%		93	%		72	%		87	%		(7	)%
80	Coal		75	%		75	%		79	%		74	%		76	%		(4	)%
81	Gas, oil and other		26	%		30	%		45	%		9	%		27	%		0	%
82	System average		58	%		57	%		65	%		41	%		54	%		(9	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		32			134			61			296			131			64
84	Coal		293			253			276			252			268			101
85	Gas		191			149			155			337			208			160
86	Total		516			536			492			885			606			325

(a) Includes planned and unplanned outages

See Glossary of Terms

Page 30 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh) On-Peak
87	Palo Verde	$	49.66		$	48.88		$	52.88		$	42.98		$	48.60		$	16.32
88	SP15	$	54.35		$	50.73		$	53.54		$	46.88		$	51.38		$	17.16
	Off-Peak
89	Palo Verde	$	36.09		$	25.48		$	36.08		$	30.48		$	32.03		$	12.14
90	SP15	$	39.70		$	28.27		$	37.81		$	32.85		$	34.66		$	12.97
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		76			1,550			2,701			572			4,899			24
92	Heating degree-days		349			17			—			370			736			(64	)
93	Average humidity		44	%		18	%		30	%		34	%		31	%		4	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
97	Single-family		8,030			10,613			11,191			9,817			39,651			5,339
98	Multi-family		863			2,053			1,231			2,580			6,727			(347	)
99	Total		8,893			12,666			12,422			12,397			46,378			4,992
	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		1.1	%		0.9	%		1.5	%		2.0	%		1.4	%		1.4	%
101	Unemployment rate (%, seasonally adjusted)		5.8	%		5.9	%		5.7	%		5.3	%		5.7	%		(0.5	)%

Sources:
(a)	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b)	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c)	Arizona Department of Economic Security

See Glossary of Terms

Page 31 of 31

EX-99.7

Exhibit 99.7

Last Updated
10/27/06

Pinnacle West Capital Corporation
Earnings Variance Explanations
for the Periods Ended September 30, 2006 and 2005

      This discussion explains the changes in our consolidated earnings for the three-month and nine-month periods ended September 30, 2006 and 2005. Unaudited Condensed Consolidated Statements of Income for the three months and nine months ended September 30, 2006 and 2005 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2006 on or before November 9, 2006. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and the Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2006 and June 30, 2006. Additional operating and financial statistics and a glossary of terms are available on our website (www.pinnaclewest.com).

EARNINGS CONTRIBUTION BY BUSINESS SEGMENT

      Pinnacle West has three principal business segments (determined by products, services and the regulatory environment):

• our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution;

• our real estate segment, which consists of SunCor’s real estate development and investment activities; and

• our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services’ commodity-related energy services.

      The following table summarizes net income by segment for the three months and nine months ended September 30, 2006 and 2005 (dollars in millions):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2006			2005		2006			2005
Regulated electricity (a)	$	170		$	70	$	252		$	152
Real estate		17			7		47			26
Marketing and trading		(4	)		7		6			18
Other		1			1		2			3
Income from continuing operations		184			85		307			199
Discontinued operations — net of tax:
Real estate (b)		—			14		2			16
Marketing and trading (c)		—			1		1			(64	)
Other		—			4		(1	)		4
Net income	$	184		$	104	$	309		$	155

(a)	2005 periods include an $87 million after-tax regulatory disallowance of plant costs in accordance with the APS retail rate case settlement.
(b)	Primarily relates to sales of commercial properties.
(c)	Relates to losses on the sale of Silverhawk announced in June 2005 and related operations until the sale closed in January 2006.

PINNACLE WEST CONSOLIDATED — RESULTS OF OPERATIONS

General

      Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to operating revenues less fuel and purchased power costs. “Gross margin” is a “non-GAAP financial measure,” as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). We view gross margin as an important performance measure of the core profitability of our operations. This measure is a key component of our internal financial reporting and is used by our management in analyzing our business segments. We believe that investors benefit from having access to the same financial measures that our management uses.

Deferred Fuel and Purchased Power Costs

      Arizona Public Service Company’s (“APS”) retail rate case settlement relating to its 2003 general rate case became effective April 1, 2005. As part of the settlement, the Arizona Corporation Commission (“ACC”) approved the Power Supply Adjustor (“PSA”), which permits APS to defer for recovery or refund fluctuations in retail fuel and purchased power costs, subject to specified parameters. In accordance with the PSA, APS defers for future rate recovery 90% of the difference between actual retail fuel and purchased power costs and the amount of such costs currently included in base rates. APS’ recovery of PSA deferrals from its customers is subject to the ACC’s approval of annual PSA adjustments and periodic surcharge applications.

      Since the inception of the PSA, APS has incurred substantially higher fuel and purchased power costs than those authorized for recovery through APS’ current base rates primarily due to the use of higher cost resources to serve incremental customer growth and has deferred those cost differences in accordance with the PSA. The balance of APS’ PSA deferrals at September 30, 2006 was $209 million. APS estimates that its PSA deferral balance at December 31, 2006 will be approximately $140 million to $160 million, based on the amounts already approved for collection and on APS’ hedged positions for fuel and purchased power at September 30, 2006 and recent forward market prices for natural gas and purchased power (which are subject to change). The recovery of PSA deferrals through ACC approved adjustors and surcharges recorded as revenue is offset dollar-for-dollar by the amortization of those deferred expenses.

      APS operated Palo Verde Unit 1 at reduced power levels from December 25, 2005 until March 18, 2006 due to vibration levels in one of the Unit’s shutdown cooling lines. During an outage at Unit 1 from March 18, 2006 to July 7, 2006, APS performed the necessary work and modifications to remedy the situation. APS estimates that incremental replacement power costs resulting from these Palo Verde outages and reduced power levels were approximately $86 million during the nine months ended September 30, 2006. The impact on the PSA deferrals was an increase of approximately

2

$78 million in that period. These Palo Verde replacement power costs were partially offset by $43 million of lower than expected replacement power costs related to APS’ other generating units during the nine months ended September 30, 2006, which decreased PSA deferrals by $39 million.

      The PSA deferral balance at September 30, 2006 and estimated balance as of December 31, 2006 each includes (a) $45 million related to replacement power costs associated with unplanned 2005 Palo Verde outages and (b) $78 million related to replacement power costs associated with unplanned 2006 outages or reduced power operations at Palo Verde. The PSA deferrals associated with these unplanned Palo Verde outages and reduced power operations are the subject of ACC prudence reviews. The ACC Staff has recommended disallowance of $17 million of the 2005 costs. The recommendation will be considered as part of APS’ general rate case currently before the ACC. The ACC Staff recommendation does not change management’s belief that the expenses in question were prudently incurred and, therefore, are recoverable.

Operating Results — Three-month period ended September 30, 2006 compared with three-month period ended September 30, 2005

      Our consolidated net income for the three months ended September 30, 2006 was $184 million compared with $104 million for the comparable prior-year period. The three months ended September 30, 2005 included income from discontinued operations of $19 million, a substantial portion of which was related to the sale of real estate commercial properties. Income from continuing operations increased $99 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment — Income from continuing operations increased approximately $100 million primarily due to an $87 million after-tax regulatory disallowance of plant costs recorded in 2005. Income was also higher due to higher retail sales volumes related to customer growth. These positive factors were partially offset by the effects of milder weather on retail sales. Higher fuel and purchased power costs (as discussed above) were substantially offset by the deferral of those costs in accordance with the PSA.

• Real Estate Segment — Income from continuing operations increased approximately $10 million primarily due to the sale of certain joint venture assets and increased margins on residential and parcel sales. Income from discontinued real estate operations decreased $14 million due to lower commercial property sales.

• Marketing and Trading Segment — Income from continuing operations decreased approximately $11 million primarily due to declines in forward prices.

3

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment gross margin:
Higher fuel and purchased power costs	$	(32	)	$	(19	)
Increased deferred fuel and purchased power costs		30			18
Higher retail sales volumes due to customer growth, excluding weather effects		28			17
Effects of milder weather on retail sales		(6	)		(4	)
Miscellaneous items, net		3			2
Net increase in regulated electricity segment gross margin		23			14
Lower marketing and trading segment gross margin primarily due to declines in forward prices		(16	)		(10	)
Higher real estate segment contribution primarily related to the sale of certain joint venture assets and increased margins on residential and parcel sales		17			10
Regulatory disallowance of plant costs in 2005, in accordance with the APS retail rate case settlement		143			87
Operations and maintenance increases primarily due to:
Generation costs, including maintenance and overhauls		(3	)		(2	)
Miscellaneous items, net		(2	)		(1	)
Higher depreciation and amortization primarily due to increased plant asset balances		(5	)		(3	)
Miscellaneous items, net		1			4
Net increase in income from continuing operations	$	158			99
Discontinued operations primarily related to sales of real estate assets					(19	)
Net increase in net income				$	80

Regulated Electricity Segment Revenues

      Regulated electricity segment revenues were $134 million higher for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $102 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);

• a $43 million increase in retail revenues related to customer growth, excluding weather effects;

• an $8 million decrease in retail revenues related to milder weather;

• an $8 million decrease in Off-System Sales due to lower prices; and

• a $5 million increase due to miscellaneous factors.

4

Real Estate Segment Revenues

      Real estate segment revenues were $19 million higher for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $13 million increase from residential sales due to higher prices; and

• a $6 million increase from parcel sales.

Marketing and Trading Segment Revenues

      Marketing and trading segment revenues were $22 million lower for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $17 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices;

• a $7 million decrease from lower prices on competitive retail sales in California; and

• a $2 million increase due to higher power prices on delivered wholesale electricity sales.

Operating Results — Nine-month period ended September 30, 2006 compared with nine-month period ended September 30, 2005

      Our consolidated net income for the nine months ended September 30, 2006 was $309 million compared with $155 million for the comparable prior-year period. The nine months ended September 30, 2005 included a net loss from discontinued operations of $44 million, which was related to the sale and operations of Silverhawk, partially offset by income from the sales of real estate commercial properties. Income from continuing operations increased $108 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment — Income from continuing operations increased approximately $100 million primarily due to an $87 million after-tax regulatory disallowance of plant costs recorded in 2005. Income also increased due to higher retail sales volumes due to customer growth; income tax credits related to prior years resolved in 2006; effects of weather on retail sales; a retail price increase effective April 1, 2005; lower interest expense; and higher interest income. These positive factors were partially offset by higher operations and maintenance expense related to generation and customer service; and higher depreciation and amortization primarily due to increased plant asset balances, partially offset by lower depreciation rates. In addition, higher fuel and purchased power costs of $80 million after-tax were partially offset by the deferral of $51 million after-tax of costs in accordance with the PSA. See discussion above — “Deferred Fuel and Purchased Power Costs.”

• Real Estate Segment — Income from continuing operations increased approximately $21 million primarily due to increased margins on residential and parcel sales and the sale of certain joint venture assets. Income from discontinued operations decreased $14 million due to lower commercial property sales.

5

• Marketing and Trading Segment — Income from continuing operations decreased approximately $12 million primarily due to lower mark-to-market gains on contracts for future delivery, partially offset by higher unit margins on wholesale sales.

6

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment gross margin:
Higher fuel and purchased power costs	$	(131	)	$	(80	)
Increased deferred fuel and purchased power costs (deferrals began April 1, 2005)		83			51
Higher retail sales volumes due to customer growth, excluding weather effects		71			43
Effects of weather on retail sales		7			4
Retail price increase effective April 1, 2005		7			4
Miscellaneous items, net		(13	)		(7	)
Net increase in regulated electricity segment gross margin		24			15
Lower marketing and trading segment gross margin primarily related to lower mark-to-market gains, partially offset by higher unit margins on wholesale sales		(21	)		(13	)
Higher real estate segment contribution primarily related to increased margins on residential and parcel sales and the sale of certain joint venture assets		35			21
Regulatory disallowance of plant costs in 2005, in accordance with the APS retail rate case settlement		143			87
Operations and maintenance increases primarily due to:
Generation costs, including maintenance and overhauls		(32	)		(20	)
Customer service costs, including regulatory demand-side management programs and planned maintenance		(10	)		(6	)
Miscellaneous items, net		(2	)		(1	)
Higher depreciation and amortization primarily due to increased plant asset balances partially offset by lower depreciations rates		(5	)		(3	)
Lower interest expense, net of capitalized financing costs, primarily due to lower debt balances, partially offset by higher rates		6			4
Higher other income, net of expense, primarily due to miscellaneous asset sales and increased interest income		9			5
Income tax credits related to prior years resolved in 2006		—			10
Miscellaneous items, net		1			9
Net increase in income from continuing operations	$	148			108
Discontinued operations:
Silverhawk loss in 2005					65
Lower commercial property real estate sales					(14	)
Other					(5	)
Net increase in net income				$	154

Regulated Electricity Segment Revenues

      Regulated electricity segment revenues were $317 million higher for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $195 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount

7

recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);

• a $102 million increase in retail revenues related to customer growth, excluding weather effects;

• a $12 million increase in Off-System Sales primarily resulting from sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;

• a $10 million increase in retail revenues related to weather;

• a $7 million increase in retail revenues due to a price increase effective April 1, 2005; and

• a $9 million decrease due to miscellaneous factors.

Real Estate Segment Revenues

      Real estate segment revenues were $85 million higher for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $62 million increase from residential sales due to higher prices and volumes;

• a $15 million increase from parcel sales; and

• an $8 million increase due to miscellaneous sales.

Marketing and Trading Segment Revenues

      Marketing and trading segment revenues were $8 million lower for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

• a $26 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices;

• a $12 million decrease in Off-System Sales due to the absence of sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;

• a $25 million increase from higher prices on competitive retail sales in California; and

• a $5 million increase due to miscellaneous factors.

8

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)

	THREE MONTHS ENDED
	SEPTEMBER 30,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	886,979		$	753,428		$	133,551			17.7	%	B
Marketing and trading segment		84,425			107,031			(22,606	)		21.1	%	W
Real estate segment		97,871			78,755			19,116			24.3	%	B
Other revenues		7,167			16,369			(9,202	)		56.2	%	W
Total		1,076,442			955,583			120,859			12.6	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		314,150			203,519			110,631			54.4	%	W
Marketing and trading segment fuel and purchased power		80,906			86,945			(6,039	)		6.9	%	B
Operations and maintenance		164,396			158,940			5,456			3.4	%	W
Real estate segment operations		78,853			67,508			11,345			16.8	%	W
Depreciation and amortization		90,390			85,763			4,627			5.4	%	W
Taxes other than income taxes		31,697			34,325			(2,628	)		7.7	%	B
Other expenses		5,610			13,521			(7,911	)		58.5	%	B
Regulatory disallowance		—			143,217			(143,217	)		100.0	%	B
Total		766,002			793,738			(27,736	)		3.5	%	B
Operating Income		310,440			161,845			148,595			91.8	%	B
Other
Allowance for equity funds used during construction		3,178			2,852			326			11.4	%	B
Other income		18,055			8,694			9,361			107.7	%	B
Other expense		(3,693	)		(4,915	)		1,222			24.9	%	B
Total		17,540			6,631			10,909			164.5	%	B
Interest Expense
Interest charges		50,577			46,778			3,799			8.1	%	W
Capitalized interest		(5,612	)		(3,301	)		(2,311	)		70.0	%	B
Total		44,965			43,477			1,488			3.4	%	W
Income From Continuing Operations Before Income Taxes		283,015			124,999			158,016			126.4	%	B
Income Taxes		98,836			40,305			58,531			145.2	%	W
Income From Continuing Operations		184,179			84,694			99,485			117.5	%	B
Income (Loss) From Discontinued Operations
Net of Income Taxes		(12	)		19,043			(19,055	)		100.1	%	W
Net Income	$	184,167		$	103,737		$	80,430			77.5	%	B
Weighted-Average Common Shares Outstanding — Basic		99,491			98,697			794			0.8	%
Weighted-Average Common Shares Outstanding — Diluted		99,973			98,816			1,157			1.2	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.85		$	0.86		$	0.99			115.1	%	B
Net income — basic	$	1.85		$	1.05		$	0.80			76.2	%	B
Income from continuing operations — diluted	$	1.84		$	0.86		$	0.98			114.0	%	B
Net income — diluted	$	1.84		$	1.05		$	0.79			75.2	%	B

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.
     B — Better
     W — Worse

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)

	NINE MONTHS ENDED
	SEPTEMBER 30,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	2,065,823		$	1,749,110		$	316,713			18.1	%	B
Marketing and trading segment		259,352			267,460			(8,108	)		3.0	%	W
Real estate segment		318,328			232,950			85,378			36.7	%	B
Other revenues		28,173			46,763			(18,590	)		39.8	%	W
Total		2,671,676			2,296,283			375,393			16.3	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		735,489			442,532			292,957			66.2	%	W
Marketing and trading segment fuel and purchased power		227,797			215,347			12,450			5.8	%	W
Operations and maintenance		511,155			467,121			44,034			9.4	%	W
Real estate segment operations		248,595			190,555			58,040			30.5	%	W
Depreciation and amortization		267,308			262,030			5,278			2.0	%	W
Taxes other than income taxes		99,970			103,528			(3,558	)		3.4	%	B
Other expenses		22,562			39,451			(16,889	)		42.8	%	B
Regulatory disallowance		—			143,217			(143,217	)		100.0	%	B
Total		2,112,876			1,863,781			249,095			13.4	%	W
Operating Income		558,800			432,502			126,298			29.2	%	B
Other
Allowance for equity funds used during construction		10,612			8,407			2,205			26.2	%	B
Other income		34,448			18,019			16,429			91.2	%	B
Other expense		(12,953	)		(12,985	)		32			0.2	%	B
Total		32,107			13,441			18,666			138.9	%	B
Interest Expense
Interest charges		143,985			142,820			1,165			0.8	%	W
Capitalized interest		(14,595	)		(10,134	)		(4,461	)		44.0	%	B
Total		129,390			132,686			(3,296	)		2.5	%	B
Income From Continuing Operations Before Income Taxes		461,517			313,257			148,260			47.3	%	B
Income Taxes		154,900			113,863			41,037			36.0	%	W
Income From Continuing Operations		306,617			199,394			107,223			53.8	%	B
Income (Loss) From Discontinued Operations Net of Income Taxes		2,159			(44,474	)		46,633			104.9	%	B
Net Income	$	308,776		$	154,920		$	153,856			99.3	%	B
Weighted-Average Common Shares Outstanding — Basic		99,277			95,642			3,635			3.8	%
Weighted-Average Common Shares Outstanding — Diluted		99,723			95,755			3,968			4.1	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	3.09		$	2.08		$	1.01			48.6	%	B
Net income — basic	$	3.11		$	1.62		$	1.49			92.0	%	B
Income from continuing operations — diluted	$	3.07		$	2.08		$	0.99			47.6	%	B
Net income — diluted	$	3.10		$	1.62		$	1.48			91.4	%	B

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.
     B — Better
     W — Worse

EX-99.8

Exhibit 99.8
Last updated 10/27/05

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Glossary of Terms

Amounts Recovered Through Revenues	Amounts recovered from retail customers through the power supply adjustor in the current period.
Arizona Job Growth	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.
Building Permits — Metro Phoenix	The number of residential dwellings permitted to be built by authorized agencies in Maricopa County, Arizona. Single-family refers to detached buildings intended to be occupied by one family each. Multi-family permits represent the number of units authorized to be built in condominium, townhouse and apartment complexes.
Capacity Factor	The ratio of the average operating load of an electric power generating unit for a period of time to the capacity rating of the unit during that period.
Change in Mark-To-Market Value of Forward Sales	The gross margin related to the change in mark-to-market value in the current period of transactions which have been entered into during the current period or prior periods for which the commodities are scheduled for delivery in a future period.
Deferred Fuel and Purchased Power Costs — Current Period	Deferrals recorded in the period for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).
Deferred Fuel and Purchased Power Regulatory Asset	Balance of accumulated deferrals, net of amounts recovered through revenues, recorded for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).
Degree-Days — Cooling	A measure of temperatures designed to indicate the amount of electricity demand for cooling purposes. Cooling degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures less than the base temperature are ignored.

- 2 -

Degree-Days — Heating	A measure of temperatures designed to indicate the amount of electricity demand for heating purposes. Heating degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures greater than the base temperature are ignored.
Electricity and Other Commodity Sales, Realized	Marketing and trading gross margin related to electricity and other commodities that were delivered in the then-current period.
Electricity Spot Prices —Palo Verde — Off-Peak	Electricity average daily spot prices at Palo Verde substation during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — Palo Verde — On-Peak	Electricity average daily spot prices at Palo Verde substation during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — SP15 — Off-Peak	Electricity average daily spot prices at SP15, a region of California substations, during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — SP15 — On-Peak	Electricity average daily spot prices at SP15, a region of California substations, during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Generation Capacity Out of Service and Replaced for Native Load	Total capacity required and economic, yet unavailable for retail customers and traditional wholesale contracts due to scheduled or unscheduled outages. Measured in megawatts per day.
Generation Production — Coal	Amount of net energy produced by coal-fueled generators. Measured in gigawatt-hours.

- 3 -

Generation Production — Gas/Oil/Other	Amount of net energy predominately produced by natural gas and oil-fueled generators. A small amount of energy from hydroelectric and solar power plants is also included. Measured in gigawatt-hours.
Generation Production — Nuclear	Amount of net energy produced by nuclear-fueled generators. Measured in gigawatt-hours.
Gigawatt-hour (GWH)	A unit of energy equivalent to 1,000 megawatt-hours or 1,000,000 kilowatt-hours.
Marketing and Trading Gross Margin — Pretax	Revenues from marketing and trading activities (other than retail sales, traditional wholesale sales and retail load hedge management) less the costs of the related commodities, with mark-to-market gains or losses, before income taxes.
Mark-To-Market	Adjustments to revenues or costs to recognize value of sales and purchase contracts, for which the commodities are scheduled for delivery in a future period, at current forward wholesale prices.
Mark-To-Market Reversals on Realized Sales	The reversal of the gross margin related to mark-to-market transactions entered into in prior periods for which the commodities were delivered in the current period. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition or earnings recognition, because in accordance with mark-to-market accounting, the margin was already recorded in the prior period. A negative amount shown in this category represents the arithmetic opposite of a gain recognized in the period in which the commodities were delivered; an equal positive amount is reflected in the realized revenue or margin for delivered commodities. A positive amount shown in this category represents the arithmetic opposite of a loss recognized in the period in which the commodities were delivered; an equal negative amount is reflected in the realized revenue or margin for delivered commodities.
Megawatt (MW)	One million watts.
Megawatt-hour (MWh)	A unit of energy equivalent to 1,000 kilowatt-hours.
Native Load	Retail and wholesale sales supplied under traditional cost-based rate regulation.
Off-System Sales	Sales of electricity from generation owned or contracted by the company that is over and above the amount required to serve retail customers and traditional wholesale contracts.

- 4 -

Power Supply Adjustor (“PSA”)	Power supply adjustor provides for recovery or refund of variations in actual fuel and purchased power costs compared with the amount included in base retail rates (currently $0.020743 per kWh) subject to certain specified parameters.
Purchased Power — Firm Load	Power purchased from wholesale market sources used to serve regulated retail demand and traditional wholesale contracts. Measured in gigawatt-hours.
Purchased Power — Marketing and Trading	Power purchased from wholesale market sources used to serve marketing and trading sales not served by company-owned generation. Measured in gigawatt-hours.
Realized and Mark-to-Market Components	Marketing and trading gross margin, before income taxes, for off-system sales and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the period of delivery and whether the margin is realized or mark-to-market. Realized margins relate to commodities that have been delivered. Mark-to-market margins relate to commodities that have delivery dates in future periods.
Retail Customer Growth	Percentage growth over the prior year in the number of retail customers.
Retail Electricity Usage	Total retail sales for a period divided by the average retail customers for the same period. Measured in kilowatt-hours per average customer.
Retail Load Hedge Management	Wholesale sales to liquidate electricity purchases originally intended to meet firm load during peak times, which purchases were not needed ultimately for firm load. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.
Retail Sales	Sales of electricity made directly to retail customers or ultimate customers. Residential retail sales are sales to households. Business retail sales include commercial, industrial, irrigation, and streetlighting sales. Measured in gigawatt-hours.
System Peak Demand	The demand for electricity during the one hour of highest use each month. Measured in megawatts.
Traditional Contracts	Wholesale sales resulting from unique cost-based, long-term contracts held by the company with various entities for the supply of electricity at agreed-upon prices.

- 5 -

Weather Normalized	Adjusted to exclude the effects of abnormal weather patterns.
Wholesale Sales of Electricity	All wholesale sales of electricity not accounted for in sales under traditional contracts or retail load hedge management. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.

EX-99.9

Exhibit 99.9

FOR IMMEDIATE RELEASE		October 27, 2006
Media Contact:	Alan Bunnell, (602) 250-3376	Page 1 of 2
Analyst Contacts:	Rebecca Hickman, (602) 250-5668
	Lisa Malagon, (602) 250-5671
Web site:	www.pinnaclewest.com

PINNACLE WEST REPORTS LOWER ON-GOING EARNINGS
FOR 2006 THIRD QUARTER

PHOENIX — Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income for the quarter ended September 30, 2006, of $184.2 million, or $1.84 per diluted share of common stock. This result reflects a decline from on-going earnings of $186.4 million, or $1.89 per diluted share, for the same period in 2005.

Third-quarter 2005 on-going results exclude several non-recurring items, the largest of which was a regulatory disallowance of $87 million, or $0.88 per share, recorded in that prior-year quarter. On-going earnings for the 2005 third quarter also exclude $4.3 million, or $0.04 per share, of income from discontinued operations related to the sales of the Company’s interests in NAC International and the Silverhawk Power Station. Reported consolidated net income was $103.7 million, or $1.05 per diluted share, for the third quarter of 2005.

“Customer price increases granted by the Arizona Corporation Commission earlier this year have had no impact on 2006 earnings” said Chairman Bill Post. “These fuel related price increases decreased customer fuel cost liabilities and stabilized our declining cash flow.”

The quarter-to-quarter comparison was negatively impacted by higher fuel costs; lower results from the Company’s wholesale power marketing and real estate operations; and milder weather. These items were substantially offset by higher fuel cost deferrals and increased retail sales at Arizona Public Service (APS) due to customer growth of 4.4 percent.

In addition, APS reported net income for the third quarter of 2006 of $168.6 million, compared with on-going earnings of $148.1 million for the same period a year ago. Third quarter 2005 on-going results exclude the previously mentioned $87 million regulatory disallowance. APS reported net income of $61.1 million for the third quarter of 2005. SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $17.5 million, compared with $21.4 million in the 2005 third quarter.

For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.

PINNACLE WEST 2006 THIRD QUARTER EARNINGS  OCTOBER 27, 2006
Page 2 of 2

Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2006 third quarter earnings and recent developments at 12 noon (ET) today, October 27. The web cast can be accessed at www.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 9001144. A replay of the call also will be available until 11:55 p.m. (ET), Friday, November 3, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and the same reservation number.

Pinnacle West is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.

-30-

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)

	Three Months Ended				Three Months Ended
	September 30, 2006				September 30, 2005
	$ in		Diluted		$ in			Diluted
	Millions		EPS		Millions			EPS
Net Income	$	184.2	$	1.84	$	103.7		$	1.05
Adjustments:
Regulatory disallowance		—		—		87.0			0.88
Income from discontinued operations — Silverhawk Power Station operations		—		—		(0.6	)		—
Income from discontinued operations — NAC International		—		—		(3.7	)		(0.04	)
On-going Earnings	$	184.2	$	1.84	$	186.4		$	1.89

ARIZONA PUBLIC SERVICE COMPANY
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)

	Three Months Ended		Three Months Ended
	September 30, 2006		September 30, 2005
	$ in Millions		$ in Millions
Net Income	$	168.6	$	61.1
Adjustments:
Regulatory disallowance		—		87.0
On-going Earnings	$	168.6	$	148.1

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)

	THREE MONTHS ENDED						NINE MONTHS ENDED
	SEPTEMBER 30,						SEPTEMBER 30,
	2006			2005			2006			2005
Operating Revenues
Regulated electricity segment	$	886,979		$	753,428		$	2,065,823		$	1,749,110
Marketing and trading segment		84,425			107,031			259,352			267,460
Real estate segment		97,871			78,755			318,328			232,950
Other revenues		7,167			16,369			28,173			46,763
Total		1,076,442			955,583			2,671,676			2,296,283
Operating Expenses
Regulated electricity segment fuel and purchased power		314,150			203,519			735,489			442,532
Marketing and trading segment fuel and purchased power		80,906			86,945			227,797			215,347
Operations and maintenance		164,396			158,940			511,155			467,121
Real estate segment operations		78,853			67,508			248,595			190,555
Depreciation and amortization		90,390			85,763			267,308			262,030
Taxes other than income taxes		31,697			34,325			99,970			103,528
Other expenses		5,610			13,521			22,562			39,451
Regulatory disallowance		—			143,217			—			143,217
Total		766,002			793,738			2,112,876			1,863,781
Operating Income		310,440			161,845			558,800			432,502
Other
Allowance for equity funds used during construction		3,178			2,852			10,612			8,407
Other income		18,055			8,694			34,448			18,019
Other expense		(3,693	)		(4,915	)		(12,953	)		(12,985	)
Total		17,540			6,631			32,107			13,441
Interest Expense
Interest charges		50,577			46,778			143,985			142,820
Capitalized interest		(5,612	)		(3,301	)		(14,595	)		(10,134	)
Total		44,965			43,477			129,390			132,686
Income From Continuing Operations Before Income Taxes		283,015			124,999			461,517			313,257
Income Taxes		98,836			40,305			154,900			113,863
Income From Continuing Operations		184,179			84,694			306,617			199,394
Income (Loss) From Discontinued Operations
Net of Income Taxes		(12	)		19,043			2,159			(44,474	)
Net Income	$	184,167		$	103,737		$	308,776		$	154,920
Weighted-Average Common Shares Outstanding — Basic		99,491			98,697			99,277			95,642
Weighted-Average Common Shares Outstanding — Diluted		99,973			98,816			99,723			95,755
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.85		$	0.86		$	3.09		$	2.08
Net income — basic	$	1.85		$	1.05		$	3.11		$	1.62
Income from continuing operations — diluted	$	1.84		$	0.86		$	3.07		$	2.08
Net income — diluted	$	1.84		$	1.05		$	3.10		$	1.62

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.

EX-99.10

Exhibit 99.10

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)

	THREE MONTHS ENDED
	SEPTEMBER 30,				Increase (Decrease)
	2006		2005		Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	310,440	$	161,845	$	148,595		$	90,569
Plus:
Operations and maintenance		164,396		158,940		5,456			3,325
Real estate segment operations		78,853		67,508		11,345			6,915
Depreciation and amortization		90,390		85,763		4,627			2,820
Taxes other than income taxes		31,697		34,325		(2,628	)		(1,602	)
Other expenses		5,610		13,521		(7,911	)		(4,822	)
Regulatory disallowance		—		143,217		(143,217	)		(87,291	)
Marketing and trading segment fuel and purchased power		80,906		86,945		(6,039	)		(3,681	)
Less:
Real estate segment revenues		97,871		78,755		19,116			11,651
Other revenues		7,167		16,369		(9,202	)		(5,609	)
Marketing and trading segment revenues		84,425		107,031		(22,606	)		(13,778	)
Regulated electricity segment gross margin	$	572,829	$	549,909	$	22,920		$	13,969
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	310,440	$	161,845	$	148,595		$	90,569
Plus:
Operations and maintenance		164,396		158,940		5,456			3,325
Real estate segment operations		78,853		67,508		11,345			6,915
Depreciation and amortization		90,390		85,763		4,627			2,820
Taxes other than income taxes		31,697		34,325		(2,628	)		(1,602	)
Other expenses		5,610		13,521		(7,911	)		(4,822	)
Regulatory disallowance		—		143,217		(143,217	)		(87,291	)
Regulated electricity segment fuel and purchased power		314,150		203,519		110,631			67,430
Less:
Real estate segment revenues		97,871		78,755		19,116			11,651
Other revenues		7,167		16,369		(9,202	)		(5,609	)
Regulated electricity segment revenues		886,979		753,428		133,551			81,399
Marketing and trading segment gross margin	$	3,519	$	20,086	$	(16,567	)	$	(10,097	)

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)

	NINE MONTHS ENDED
	SEPTEMBER 30,				Increase (Decrease)
	2006		2005		Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	558,800	$	432,502	$	126,298		$	76,979
Plus:
Operations and maintenance		511,155		467,121		44,034			26,839
Real estate segment operations		248,595		190,555		58,040			35,375
Depreciation and amortization		267,308		262,030		5,278			3,217
Taxes other than income taxes		99,970		103,528		(3,558	)		(2,169	)
Other expenses		22,562		39,451		(16,889	)		(10,294	)
Regulatory disallowance		—		143,217		(143,217	)		(87,291	)
Marketing and trading segment fuel and purchased power		227,797		215,347		12,450			7,588
Less:
Real estate segment revenues		318,328		232,950		85,378			52,038
Other revenues		28,173		46,763		(18,590	)		(11,331	)
Marketing and trading segment revenues		259,352		267,460		(8,108	)		(4,942	)
Regulated electricity segment gross margin	$	1,330,334	$	1,306,578	$	23,756		$	14,479
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	558,800	$	432,502	$	126,298		$	76,979
Plus:
Operations and maintenance		511,155		467,121		44,034			26,839
Real estate segment operations		248,595		190,555		58,040			35,375
Depreciation and amortization		267,308		262,030		5,278			3,217
Taxes other than income taxes		99,970		103,528		(3,558	)		(2,169	)
Other expenses		22,562		39,451		(16,889	)		(10,294	)
Regulatory disallowance		—		143,217		(143,217	)		(87,291	)
Regulated electricity segment fuel and purchased power		735,489		442,532		292,957			178,557
Less:
Real estate segment revenues		318,328		232,950		85,378			52,038
Other revenues		28,173		46,763		(18,590	)		(11,331	)
Regulated electricity segment revenues		2,065,823		1,749,110		316,713			193,037
Marketing and trading segment gross margin	$	31,555	$	52,113	$	(20,558	)	$	(12,531	)

EX-99.11

Exhibit 99.11

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)

	Nine Months Ended						Nine Months Ended
	September 30, 2006						September 30, 2005
	$ in			Diluted			$ in			Diluted
	Millions			EPS			Millions			EPS
Net Income	$	309		$	3.10		$	155		$	1.62
Adjustments:
Regulatory disallowance		—			—			87			0.91
Income tax credit related to prior periods		(10	)		(0.10	)		—			—
Loss from discontinued operations — Silverhawk Power Station write-down		—			—			55			0.58
Loss from discontinued operations — Silverhawk Power Station operations		—			—			9			0.09
Income from discontinued operations — NAC International		—			—			(4	)		(0.04	)
On-going Earnings	$	299		$	3.00		$	302		$	3.16