EX-99.2 3 p73728exv99w2.htm EX-99,2 exv99w2
 

Exhibit 99.2
Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
                        
   
 
                        
1  
Arizona Public Service
   $ 4     $ (6 )   $ 10  
2  
Pinnacle West Energy
     —       —       —  
3  
APS Energy Services
     1       1       —  
4  
SunCor
     8       21       (13 )
5  
El Dorado
     (2 )     (1 )     (1 )
6  
Parent Company
     5       (3 )     8  
   
 
                  
   
 
                        
7  
Income From Continuing Operations
     16       12       4  
   
 
                        
   
Income (Loss) From Discontinued Operations — Net of Tax
                        
8  
Silverhawk
     —       —       —  
9  
SunCor
     1       1       —  
10  
NAC
     —       —       —  
   
 
                  
11  
Total
     1       1       —  
   
 
                  
   
 
                        
12  
Net Income
   $ 17     $ 13     $ 4  
   
 
                  
   
 
                        
   
EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
                        
   
 
                        
13  
Arizona Public Service
   $ 0.04     $ (0.06 )   $ 0.10  
14  
Pinnacle West Energy
     —       —       —  
15  
APS Energy Services
     0.01       0.01       —  
16  
SunCor
     0.09       0.21       (0.12 )
17  
El Dorado
     (0.02 )     (0.01 )     (0.01 )
18  
Parent Company
     0.04       (0.03 )     0.07  
   
 
                  
   
 
                        
19  
Income From Continuing Operations
     0.16       0.12       0.04  
   
 
                        
   
Income (Loss) From Discontinued Operations — Net of Tax
                        
20  
Silverhawk
     —       —       —  
21  
SunCor
     —       0.01       (0.01 )
22  
NAC
     —       —       —  
   
 
                  
23  
Total
     —       0.01       (0.01 )
   
 
                  
   
 
                        
24  
Net Income
   $ 0.16     $ 0.13     $ 0.03  
   
 
                  
   
 
                        
25  
BOOK VALUE PER SHARE
   $ 34.45 *   $ 32.37     $ 2.08  
   
 
                        
   
COMMON SHARES OUTSTANDING (Thousands)
                        
26  
Average — Diluted
     100,622       99,449       1,173  
27  
End of Period
     100,115       99,187       928  
    *  Estimate
See Glossary of Terms.

Page 2 of 31

 

Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
ELECTRIC OPERATING REVENUES (Dollars in Millions)
                        
   
 
                        
   
REGULATED ELECTRICITY SEGMENT
                        
   
Retail
                        
28  
Residential
   $ 246     $ 202     $ 44  
29  
Business
     264       233       31  
   
 
                  
30  
Total retail
     510       435       75  
   
Wholesale revenue on delivered electricity
                        
31  
Traditional contracts
     5       6       (1 )
32  
Off-system sales
     7       12       (5 )
33  
Transmission for others
     7       6       1  
34  
Other miscellaneous services
     7       7       —  
   
 
                  
35  
Total regulated operating electricity revenues
     536       466       70  
   
 
                        
   
MARKETING AND TRADING
                        
36  
Electricity and other commodity sales
     72       85       (13 )
   
 
                  
37  
Total operating electric revenues
   $ 608     $ 551     $ 57  
   
 
                  
   
 
                        
   
ELECTRIC SALES (GWH)
                        
   
 
                        
   
REGULATED ELECTRICITY SEGMENT
                        
   
Retail sales
                        
38  
Residential
     2,734       2,419       315  
39  
Business
     3,285       3,199       86  
   
 
                  
40  
Total retail
     6,019       5,618       401  
   
Wholesale electricity delivered
                        
41  
Traditional contracts
     175       215       (40 )
42  
Off-system sales
     243       672       (429 )
43  
Retail load hedge management
     117       178       (61 )
   
 
                  
44  
Total regulated electricity
     6,554       6,683       (129 )
   
 
                        
   
MARKETING AND TRADING
                        
45  
Wholesale sales of electricity
     2,057       3,962       (1,905 )
   
 
                  
46  
Total electric sales
     8,611       10,645       (2,034 )
   
 
                  
See Glossary of Terms.

Page 3 of 31

 

Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
POWER SUPPLY ADJUSTOR (“PSA”)
- REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
                        
   
 
                        
47  
Deferred fuel and purchased power regulatory asset – beginning balance
   $ 160     $ 173     $ (13 )
48  
Deferred fuel and purchased power costs – current period
     25       13       12  
49  
Interest on deferred fuel
     2       1       1  
50  
Amounts recovered through revenues
     (69 )     (18 )     (51 )
   
 
                  
51  
Deferred fuel and purchased power regulatory asset – ending balance
   $ 118     $ 169     $ (51 )
   
 
                  
   
 
                        
   
MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
                        
   
 
                        
   
Realized and Mark-To-Market Components
                        
52  
Electricity and other commodity sales, realized (a)
   $ 12     $ 10     $ 2  
53  
Mark-to-market reversals on realized sales (a) (b)
     (8 )     (1 )     (7 )
54  
Change in mark-to-market value of forward sales
     10       1       9  
   
 
                  
55  
Total gross margin
   $ 14     $ 10     $ 4  
   
 
                  
   
 
                        
   
By Pinnacle West Entity
                        
   
 
                        
56  
APS
   $ (1 )   $ 8     $ (9 )
57  
Pinnacle West Marketing & Trading (c)
     1       —       1  
58  
Parent Company (c)
     9       (1 )     10  
59  
APS Energy Services
     5       3       2  
60  
Pinnacle West Energy
     —       —       —  
   
 
                  
61  
Total gross margin
   $ 14     $ 10     $ 4  
   
 
                  
Future Marketing and Trading Mark-to-Market Realization
As of March 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $28 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: 2007, $13 million; and 2008, $15 million.
 
(a)   Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 52 and in line 53 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 52 are included in line 53. For example, line 53 shows that a prior-period mark-to-market gain of $8 million was transferred to “realized” for the first quarter of 2007. A $8 million realized gain is included in the $12 million on line 52 for the first quarter of 2007.
 
(b)   Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.
 
(c)   On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.
See Glossary of Terms.

Page 4 of 31

 

Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
AVERAGE ELECTRIC CUSTOMERS
                        
   
 
                        
   
Retail customers
                        
62  
Residential
     965,428       930,799       34,629  
63  
Business
     118,649       113,570       5,079  
   
 
                  
64  
Total
     1,084,077       1,044,369       39,708  
65  
Wholesale customers
     63       75       (12 )
   
 
                  
66  
Total customers
     1,084,140       1,044,444       39,696  
   
 
                  
   
 
                        
67  
Customer growth (% over prior year)
     3.8 %     4.5 %     (0.7 )%
   
 
                        
   
RETAIL SALES (GWH) - WEATHER NORMALIZED
                        
   
 
                        
68  
Residential
     2,648       2,475       173  
69  
Business
     3,228       3,248       (20 )
   
 
                  
70  
Total
     5,876       5,723       153  
   
 
                  
   
 
                        
   
RETAIL USAGE (KWh/Average Customer)
                        
   
 
                        
71  
Residential
     2,832       2,763       69  
72  
Business
     27,687       30,444       (2,757 )
   
 
                        
   
RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
                        
   
 
                        
73  
Residential
     2,743       2,659       84  
74  
Business
     27,204       28,600       (1,396 )
   
 
                        
   
ELECTRICITY DEMAND (MW)
                        
   
 
                        
75  
System peak demand
     4,781       4,205       576  
See Glossary of Terms.

Page 5 of 31

 

Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
ENERGY SOURCES (GWH)
                        
   
 
                        
   
Generation production
                        
76  
Nuclear
     2,299       1,720       579  
77  
Coal
     3,164       3,083       81  
78  
Gas, oil and other
     1,151       1,323       (172 )
   
 
                  
79  
Total generation production
     6,614       6,126       488  
   
 
                  
   
Purchased power
                        
80  
Firm load
     278       365       (87 )
81  
Marketing and trading
     2,262       4,592       (2,330 )
   
 
                  
82  
Total purchased power
     2,540       4,957       (2,417 )
   
 
                  
83  
Total energy sources
     9,154       11,083       (1,929 )
   
 
                  
   
 
                        
   
POWER PLANT PERFORMANCE
                        
   
 
                        
   
Capacity Factors
                        
84  
Nuclear
     94 %     71 %     23 %
85  
Coal
     84 %     83 %     1 %
86  
Gas, oil and other
     16 %     18 %     (2 )%
87  
System average
     50 %     46 %     4 %
   
 
                        
   
Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
                        
88  
Nuclear
     57       306       (249 )
89  
Coal
     203       257       (54 )
90  
Gas
     267       201       66  
   
 
                  
91  
Total
     527       764       (237 )
   
 
                  
 
(a)   Includes planned and unplanned outages
See Glossary of Terms.

Page 6 of 31

 

Last Updated     4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
                             
        3 Mo. Ended March  
Line       2007     2006     Incr (Decr)  
   
 
                        
   
ENERGY MARKET INDICATORS (a)
                        
   
 
                        
   
Electricity Average Daily Spot Prices ($/MWh)
                        
   
On-Peak
                        
92  
Palo Verde
   $ 54.62     $ 53.78     $ 0.84  
93  
SP15
   $ 60.02     $ 58.34     $ 1.68  
   
Off-Peak
                        
94  
Palo Verde
   $ 42.06     $ 41.92     $ 0.14  
95  
SP15
   $ 45.86     $ 44.79     $ 1.07  
   
 
                        
   
WEATHER INDICATORS
                        
   
 
                        
   
Actual
                        
96  
Cooling degree-days
     172       43       129  
97  
Heating degree-days
     589       464       125  
98  
Average humidity
     36 %     28 %     8 %
   
10-Year Averages
                        
99  
Cooling degree-days
     97       97       —  
100  
Heating degree-days
     513       513       —  
101  
Average humidity
     42 %     42 %     0 %
   
 
                        
   
ECONOMIC INDICATORS
                        
   
 
                        
   
Building Permits — Metro Phoenix (b) (d)
                        
102  
Single-family
     4,089       5,386       (1,297 )
103  
Multi-family
     2,457       2,448       9  
   
 
                  
104  
Total
     6,546       7,834       (1,288 )
   
 
                  
   
 
                        
   
Arizona Job Growth (c) (d)
                        
105  
Payroll job growth (% over prior year)
     4.4 %     6.2 %     (1.8 )%
106  
Unemployment rate (%, seasonally adjusted)
     4.1 %     4.2 %     (0.1 )%
 
    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 periods ended February 28, 2007 (latest available data) and February 28, 2006.
See Glossary of Terms.

Page 7 of 31