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): June 30, 2008

	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 (17 CFR 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

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

Item 2.02. Results of Operations and Financial Condition

     On July 30, 2008, Pinnacle West Capital Corporation (the “Company” or “Pinnacle West”) issued a press release regarding its financial results for its fiscal quarter ended June 30, 2008. A copy of the press release is attached hereto as Exhibit 99.9.

     Certain of the Information referenced in Item 7.01 below relates to the Company’s results of operations for its fiscal quarter ended June 30, 2008. This Information is attached hereto as Exhibits 99.2, 99.3, 99.7 and 99.9.

     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.

Item 7.01. Regulation FD Disclosure

Financial and Business Information

     The Company is providing quarterly consolidated statistical summaries, earnings variance explanations, 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 and 99.8). 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.

2008 Earnings Outlook

     We currently estimate that our on-going consolidated earnings for 2008 will be within a reasonable range of $2.50 per share. We estimate that Arizona Public Service Company (“APS”) will contribute substantially all of the 2008 on-going earnings and that SunCor Development Company’s 2008 earnings contribution will be minimal. Our 2008 on-going earnings estimate excludes $0.30 per share of tax credits related to prior years recorded in the fiscal quarter ended June 30, 2008. In this discussion, earnings per share amounts are after income taxes and are based on diluted average common shares outstanding. The earnings guidance in this Form 8-K supersedes all previous earnings guidance provided by Pinnacle West. Our earnings forecasts are subject to numerous risks, including those described under “Forward-Looking Statements” below.

Capital Expenditures and Financings

     We are continuing efforts to improve APS’ financial strength and to reduce our need for external financing. These efforts consist of the following four components:

• Completion of a previously-announced cost reduction effort implemented earlier this year (including the elimination of $200 million of capital expenditures for the years 2008-2012 and operations and maintenance expense reductions related to staffing and other costs);

• Attainment of interim rate relief under APS’ general retail rate case currently pending before the Arizona Corporation Commission (“ACC”);

• Reduction of at least an additional $500 million in capital expenditures over the next three years, with implementation beginning in late 2008, due to our reduced customer growth outlook, deferral of several large transmission projects, and reductions in general plant capital expenditures; and

• Receipt of a constructive process and decision in the pending general retail rate case with the ACC.

We believe that successful implementation of this program will eliminate the need for a Pinnacle West equity issuance in 2008.

     See “Capital Expenditures” in Part I, Item 2 of the Pinnacle West/APS Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008 (“March 10-Q”) for current capital expenditure estimates, which include the $200 million reduction described above. See the Pinnacle West/APS Report on Form 8-K, filed with the Securities and Exchange Commission (“SEC”) on June 9, 2008, for information regarding the interim base rate surcharge request. See “2008 General Rate Case” in Note 5 of Notes to Condensed Consolidated Financial Statements in the March 10-Q and the Pinnacle West/APS Report on Form 8-K, filed with the SEC on June 2, 2008, for information regarding the pending general retail rate case.

2

Forward-Looking Statements

     This Form 8-K contains forward-looking statements regarding our 2008 earnings outlook, expected decreases in capital expenditures and other expenses resulting from previous and current cost reduction efforts, achievement of interim rate relief and receipt of a constructive process and decision in our pending general retail rate case with the ACC, and the successful implementation of our program to improve our financial strength, eliminating the need for a Pinnacle West equity issuance in 2008. Neither the Company nor APS assumes any obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by Pinnacle West or APS. In addition to the Risk Factors described in Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2007, these factors include, but are not limited to, our ability to reduce capital expenditures and other costs while maintaining reliability and customer service levels and unexpected developments that would limit us from reducing all or some of these capital expenditures; our ability to successfully implement our program to improve our financial strength in whole or in part and unexpected financial or other developments that would require a Pinnacle West equity issuance before the end of 2008; state and federal regulatory and legislative decisions and actions, including the outcome or timing of our pending rate cases; the outcome of regulatory, legislative and judicial proceedings, both current and future, including those related to environmental matters and climate change; the potential for additional restructuring of the electric industry, including decisions impacting wholesale competition and the introduction of retail electric competition in Arizona; fluctuations in market prices for electricity, natural gas, coal, uranium and other fuels used in our generating facilities, and supplies of such commodities; volatile market liquidity, any deteriorating counterparty credit and the use of derivative contracts in our business (including the interpretation of the subjective and complex accounting rules related to these contracts); power plant performance and outages; transmission outages and constraints; weather variations affecting local and regional customer energy usage; customer growth and energy usage; national and regional economic and market conditions, including the strength of the housing and credit markets, volatile fuel and purchased power costs, the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies, and the results of litigation and other proceedings resulting from the California and Pacific Northwest energy situations; ability of power plant participants to meet contractual or other obligations; the cost of debt and equity capital and access to capital markets; current credit ratings remaining in effect for any given period of time; changes in accounting principles generally accepted in the United States of America and the interpretation of those principles; the performance of the stock market and the changing interest rate environment, which affect the value of our nuclear decommissioning trusts, pension and other postretirement benefit plan assets, the amount of required contributions to Pinnacle West’s pension plan and contributions to APS’ nuclear decommissioning trust funds, as well as the reported costs of providing pension and other postretirement benefits; technological developments in the electric industry; the strength of the real estate market in SunCor’s market areas, which include Arizona, Idaho, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of Pinnacle West and APS.

3

Item 9.01. Financial Statements and Exhibits

               (d) Exhibits.

Exhibit
No.	Registrant(s)	Description
99.1	Pinnacle West 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 three-month and six-month periods ended June 30, 2008 and 2007.
99.3	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2008.
99.4	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.
99.5	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.
99.6	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.
99.7	Pinnacle West APS	Pinnacle West Capital Corporation earnings variance explanations for the three and six months ended June 30, 2008 and 2007 and unaudited condensed consolidated statements of income for the three and six months ended June 30, 2008 and 2007.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on July 30, 2008.

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: July 30, 2008	By:	/s/ Donald E. Brandt
		Donald E. Brandt
		President and Chief Operating Officer
	ARIZONA PUBLIC SERVICE COMPANY (Registrant)
Dated: July 30, 2008	By:	/s/ Donald E. Brandt
		Donald E. Brandt
		President and Chief Executive Officer

5

Exhibit Index

Exhibit
No.	Registrant(s)	Description
99.1	Pinnacle West 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 three-month and six-month periods ended June 30, 2008 and 2007.
99.3	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2008.
99.4	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.
99.5	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.
99.6	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.
99.7	Pinnacle West APS	Pinnacle West Capital Corporation earnings variance explanations for the three and six months ended June 30, 2008 and 2007 and unaudited condensed consolidated statements of income for the three and six months ended June 30, 2008 and 2007.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on July 30, 2008.

6

EX-99.1

Exhibit 99.1

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

List of Contents

2008 Second Quarter Summary

2008 by Quarter

2007 by Quarter

2006 by Quarter

2005 by Quarter

Quarters may not sum to totals due to rounding.

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/2008Q2QuarStatsGloss.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     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June									6 Months Ended June
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	125		$	75		$	50		$	119		$	79		$	40
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		—			(1	)		1			—			—			—
4	SunCor		(5	)		1			(6	)		(6	)		10			(16	)
5	El Dorado		(5	)		—			(5	)		(6	)		(2	)		(4	)
6	Parent Company		(1	)		4			(5	)		2			9			(7	)
7	Income From Continuing Operations		114			79			35			109			96			13
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—			—			—			—			—
9	SunCor		20			—			20			20			—			20
10	Other		—			—			—			—			—			—
11	Total		20			—			20			20			—			20
12	Net Income	$	134		$	79		$	55		$	129		$	96		$	33
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	1.24		$	0.75		$	0.49		$	1.18		$	0.79		$	0.39
14	Pinnacle West Energy		—			—			—			—			—			—
15	APS Energy Services		—			(0.01	)		0.01			—			—			—
16	SunCor		(0.05	)		0.01			(0.06	)		(0.06	)		0.10			(0.16	)
17	El Dorado		(0.05	)		—			(0.05	)		(0.06	)		(0.02	)		(0.04	)
18	Parent Company		(0.01	)		0.04			(0.05	)		0.03			0.08			(0.05	)
19	Income From Continuing Operations		1.13			0.79			0.34			1.09			0.95			0.14
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—			—			—			—			—
21	SunCor		0.20			(0.01	)		0.21			0.19			—			0.19
22	Other		—			—			—			—			—			—
23	Total		0.20			(0.01	)		0.21			0.19			—			0.19
24	Net Income	$	1.33		$	0.78		$	0.55		$	1.28		$	0.95		$	0.33
25	BOOK VALUE PER SHARE	$	37.22	*	$	34.13		$	3.09		$	37.22	*	$	34.13		$	3.09
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,917			100,779			138			100,856			100,718			138
27	End of Period		100,706			100,290			416			100,706			100,290			416

* Estimate

See Glossary of Terms.

Page 2 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June							6 Months Ended June
Line		2008		2007		Incr (Decr)			2008		2007		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
28	Residential	$	365	$	335	$	30		$	636	$	581	$	55
29	Business		396		342		54			696		606		90
30	Total retail		761		677		84			1,332		1,187		145
	Wholesale revenue on delivered electricity
31	Traditional contracts		22		9		13			34		14		20
32	Off-system sales		30		10		20			54		17		37
33	Transmission for others		8		7		1			15		14		1
34	Other miscellaneous services		8		8		—			17		15		2
35	Total regulated operating electricity revenues		829		711		118			1,452		1,247		205
	MARKETING AND TRADING
36	Electricity and other commodity sales		51		93		(42	)		108		165		(57	)
37	Total operating electric revenues	$	880	$	804	$	76		$	1,560	$	1,412	$	148
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		3,112		3,287		(175	)		5,886		6,021		(135	)
39	Business		3,990		4,004		(14	)		7,328		7,289		39
40	Total retail		7,102		7,291		(189	)		13,214		13,310		(96	)
	Wholesale electricity delivered
41	Traditional contracts		319		262		57			541		437		104
42	Off-system sales		610		310		300			1,026		553		473
43	Retail load hedge management		159		254		(95	)		321		371		(50	)
44	Total regulated electricity		8,190		8,117		73			15,102		14,671		431
	MARKETING AND TRADING
45	Wholesale sales of electricity		894		2,648		(1,754	)		1,814		4,571		(2,757	)
46	Total electric sales		9,084		10,765		(1,681	)		16,916		19,242		(2,326	)

See Glossary of Terms.

Page 3 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June									6 Months Ended June
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	50		$	118		$	(68	)	$	111		$	160		$	(49	)
48	Deferred fuel and purchased power costs — current period		37			104			(67	)		26			129			(103	)
49	Regulatory disallowance		—			(14	)		14			—			(14	)		14
50	Interest on deferred fuel		—			1			(1	)		1			3			(2	)
51	Amounts recovered through revenues		(64	)		(72	)		8			(115	)		(141	)		26
52	Deferred fuel and purchased power regulatory asset — ending balance	$	23		$	137		$	(114	)	$	23		$	137		$	(114	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	4		$	23		$	(19	)	$	9		$	39		$	(30	)
54	Mark-to-market reversals on realized sales (a) (b)		1			1			—			2			(5	)		7
55	Change in mark-to-market value of forward sales		—			(6	)		6			—			(2	)		2
56	Total gross margin	$	5		$	18		$	(13	)	$	11		$	32		$	(21	)
	By Pinnacle West Entity
57	APS	$	—		$	7		$	(7	)	$	—		$	6		$	(6	)
58	Pinnacle West		4			10			(6	)		10			20			(10	)
59	APS Energy Services		1			1			—			1			6			(5	)
60	Pinnacle West Energy		—			—			—			—			—			—
61	Total gross margin	$	5		$	18		$	(13	)	$	11		$	32		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of June 30, 2008, Pinnacle West had accumulated net mark-to-market gains of $0.8 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: 2008, $0.2 million; and thereafter, $0.6 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2008. A $1 million realized loss is included in the $4 million on line 53 for the second quarter of 2008.

(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     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June									6 Months Ended June
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
62	Residential		975,594			962,095			13,499			979,026			963,762			15,264
63	Business		123,802			119,792			4,010			123,318			119,221			4,097
64	Total		1,099,396			1,081,887			17,509			1,102,344			1,082,983			19,361
65	Wholesale customers		54			62			(8	)		52			63			(11	)
66	Total customers		1,099,450			1,081,949			17,501			1,102,396			1,083,046			19,350
67	Customer growth (% over prior year)		1.6	%		3.5	%		(1.9	)%		1.8	%		3.7	%		(1.9	)%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
68	Residential		3,247			3,220			27			5,941			5,877			64
69	Business		4,034			3,977			57			7,334			7,205			129
70	Total		7,281			7,197			84			13,275			13,082			193
	RETAIL USAGE (KWh/Average Customer)
71	Residential		3,190			3,417			(227	)		6,012			6,247			(235	)
72	Business		32,229			33,425			(1,196	)		59,424			61,139			(1,715	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		3,328			3,346			(18	)		6,068			6,098			(30	)
74	Business		32,581			33,199			(618	)		59,468			60,434			(966	)
	ELECTRICITY DEMAND (MW)
75	Native load peak demand		6,778			6,705			73			6,778			6,705			73

See Glossary of Terms.

Page 5 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June									6 Months Ended June
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
76	Nuclear		1,856			1,846			10			4,171			4,145			26
77	Coal		3,227			3,265			(38	)		6,133			6,429			(296	)
78	Gas, oil and other		1,516			1,518			(2	)		2,664			2,669			(5	)
79	Total generation production		6,599			6,629			(30	)		12,968			13,243			(275	)
	Purchased power
80	Firm load		1,603			1,676			(73	)		2,343			1,954			389
81	Marketing and trading		1,421			3,097			(1,676	)		2,626			5,225			(2,599	)
82	Total purchased power		3,024			4,773			(1,749	)		4,969			7,179			(2,210	)
83	Total energy sources		9,623			11,402			(1,779	)		17,937			20,422			(2,485	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		74	%		75	%		(1	)%		83	%		85	%		(2	)%
85	Coal		85	%		86	%		(1	)%		81	%		85	%		(4	)%
86	Gas, oil and other		21	%		21	%		0	%		18	%		19	%		(1	)%
87	System average		49	%		49	%		0	%		48	%		50	%		(2	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		298			266			32			153			164			(11	)
89	Coal		152			189			(37	)		234			196			38
90	Gas		180			405			(225	)		296			336			(40	)
91	Total		630			860			(230	)		683			696			(13	)

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 6 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2008 and 2007

		3 Months Ended June									6 Months Ended June
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
92	Palo Verde	$	90.47		$	64.64		$	25.83		$	79.94		$	59.63		$	20.31
93	SP15	$	97.41		$	68.75		$	28.66		$	88.25		$	64.39		$	23.87
	Off-Peak
94	Palo Verde	$	59.20		$	41.46		$	17.74		$	57.80		$	41.76		$	16.04
95	SP15	$	66.73		$	46.14		$	20.59		$	64.54		$	46.00		$	18.54
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		1,540			1,708			(168	)		1,645			1,880			(235	)
97	Heating degree-days		—			8			(8	)		583			597			(14	)
98	Average humidity		17	%		18	%		(1	)%		29	%		27	%		2	%
	10-Year Averages
99	Cooling degree-days		1,554			1,554			—			1,650			1,650			—
100	Heating degree-days		28			28			—			545			545			—
101	Average humidity		22	%		22	%		0	%		32	%		32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
102	Single-family		2,427			5,051			(2,624	)		5,418			12,068			(6,650	)
103	Multi-family		1,462			1,279			183			3,350			5,410			(2,060	)
104	Total		3,889			6,330			(2,441	)		8,768			17,478			(8,710	)
	Arizona Job Growth (c) (d)
105	Payroll job growth (% over prior year)		(0.4	)%		1.5	%		(1.9	)%		(0.1	)%		2.0	%		(2.1	)%
106	Unemployment rate (%, seasonally adjusted)		4.2	%		3.7	%		0.5	%		4.1	%		3.7	%		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 periods ended May 31, 2008 (latest available data) and May 31, 2007.

See Glossary of Terms.

Page 7 of 31

EX-99.3

Exhibit 99.3

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

															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	)	$	125						$	119		$	40
2	Pinnacle West Energy		—			—							—			—
3	APS Energy Services		—			—							—			—
4	SunCor		(1	)		(5	)						(6	)		(16	)
5	El Dorado		(1	)		(5	)						(6	)		(4	)
6	Parent Company		4			(1	)						2			(7	)
7	Income From Continuing Operations		(4	)		114			—		—		109			13
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—							—			—
9	SunCor		—			20							20			20
10	Other		—			—							—			—
11	Total		—			20			—		—		20			20
12	Net Income	$	(4	)	$	134		$	—	$	—	$	129		$	33
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	(0.06	)	$	1.24						$	1.18		$	0.39
14	Pinnacle West Energy		—			—							—			—
15	APS Energy Services		—			—							—			—
16	SunCor		(0.01	)		(0.05	)						(0.06	)		(0.16	)
17	El Dorado		(0.02	)		(0.05	)						(0.06	)		(0.04	)
18	Parent Company		0.04			(0.01	)						0.03			(0.05	)
19	Income From Continuing Operations		(0.05	)		1.13			—		—		1.09			0.14
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—							—			—
21	SunCor		—			0.20							0.19			0.19
22	Other		0.01			—							—			—
23	Total		0.01			0.20			—		—		0.19			0.19
24	Net Income	$	(0.04	)	$	1.33		$	—	$	—	$	1.28		$	0.33
25	BOOK VALUE PER SHARE	$	35.22		$	37.22	*					$	37.22	*	$	3.09
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,521			100,917							100,917			138
27	End of Period		100,486			100,706							100,706			416

* Estimate

See Glossary of Terms.

Page 8 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

												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
28	Residential	$	271	$	365					$	636	$	55
29	Business		300		396						696		90
30	Total retail		571		761		—		—		1,332		145
	Wholesale revenue on delivered electricity
31	Traditional contracts		12		22						34		20
32	Off-system sales		24		30						54		37
33	Transmission for others		7		8						15		1
34	Other miscellaneous services		9		8						17		2
35	Total regulated operating electricity revenues		623		829		—		—		1,452		205
	MARKETING AND TRADING
36	Electricity and other commodity sales		57		51						108		(57	)
37	Total operating electric revenues	$	680	$	880	$	—	$	—	$	1,560	$	148
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,774		3,112						5,886		(135	)
39	Business		3,338		3,990						7,328		39
40	Total retail		6,112		7,102		—		—		13,214		(96	)
	Wholesale electricity delivered
41	Traditional contracts		222		319						541		104
42	Off-system sales		416		610						1,026		473
43	Retail load hedge management		162		159						321		(50	)
44	Total regulated electricity		6,912		8,190		—		—		15,102		431
	MARKETING AND TRADING
45	Wholesale sales of electricity		920		894						1,814		(2,757	)
46	Total electric sales		7,832		9,084		—		—		16,916		(2,326	)

See Glossary of Terms.

Page 9 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

															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)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	111		$	50						$	111		$	(49	)
48	Deferred fuel and purchased power costs — current period		(11	)		37							26			(103	)
49	Regulatory disallowance		—			—							—			14
50	Interest on deferred fuel		1			—							1			(2	)
51	Amounts recovered through revenues		(51	)		(64	)						(115	)		26
52	Deferred fuel and purchased power regulatory asset — ending balance	$	50		$	23		$	—	$	—	$	23		$	(114	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	5		$	4						$	9		$	(30	)
54	Mark-to-market reversals on realized sales (a) (b)		—			1							2			7
55	Change in mark-to-market value of forward sales		1			—							—			2
56	Total gross margin	$	6		$	5		$	—	$	—	$	11		$	(21	)
	By Pinnacle West Entity
57	APS	$	—		$	—						$	—		$	(6	)
58	Pinnacle West		7			4							10			(10	)
59	APS Energy Services		(1	)		1							1			(5	)
60	Pinnacle West Energy		—			—							—			—
61	Total gross margin	$	6		$	5		$	—	$	—	$	11		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of June 30, 2008, Pinnacle West had accumulated net mark-to-market gains of $0.8 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: 2008, $0.2 million; and thereafter, $0.6 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the first quarter of 2008. A $1 million realized loss is included in the $4 million on line 53 for the first quarter of 2008.

(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     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
62	Residential		982,459			975,594							979,026			15,264
63	Business		122,833			123,802							123,318			4,097
64	Total		1,105,292			1,099,396			—		—		1,102,344			19,361
65	Wholesale customers		50			54							52			(11	)
66	Total customers		1,105,342			1,099,450			—		—		1,102,396			19,350
67	Customer growth (% over prior year)		2.0	%		1.6	%						1.8	%		(1.9	)%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
68	Residential		2,694			3,247							5,941			64
69	Business		3,300			4,034							7,334			129
70	Total		5,994			7,281			—		—		13,275			193
	RETAIL USAGE (KWh/Average Customer)
71	Residential		2,824			3,190							6,012			(235	)
72	Business		27,175			32,229							59,424			(1,715	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		2,742			3,328							6,068			(30	)
74	Business		26,865			32,581							59,468			(966	)
	ELECTRICITY DEMAND (MW)
75	Native load peak demand		4,404			6,778							6,778			73

See Glossary of Terms.

Page 11 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
76	Nuclear		2,315			1,856							4,171			26
77	Coal		2,906			3,227							6,133			(296	)
78	Gas, oil and other		1,148			1,516							2,664			(5	)
79	Total generation production		6,369			6,599			—		—		12,968			(275	)
	Purchased power
80	Firm load		740			1,603							2,343			389
81	Marketing and trading		1,205			1,421							2,626			(2,599	)
82	Total purchased power		1,945			3,024			—		—		4,969			(2,210	)
83	Total energy sources		8,314			9,623			—		—		17,937			(2,485	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		92	%		74	%						83	%		(2	)%
85	Coal		76	%		85	%						81	%		(4	)%
86	Gas, oil and other		16	%		21	%						18	%		(1	)%
87	System average		47	%		49	%						48	%		(2	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		8			298							153			(11	)
89	Coal		327			152							234			38
90	Gas		356			180							296			(40	)
91	Total		691			630			—		—		683			(13	)

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 12 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2008

															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
92	Palo Verde	$	69.40		$	90.47						$	79.94		$	20.31
93	SP15	$	79.09		$	97.41						$	88.25		$	23.87
	Off-Peak
94	Palo Verde	$	56.39		$	59.20						$	57.80		$	16.04
95	SP15	$	62.35		$	66.73						$	64.54		$	18.54
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		105			1,540							1,645			(235	)
97	Heating degree-days		583			—							583			(14	)
98	Average humidity		40	%		17	%						29	%		2	%
	10-Year Averages
99	Cooling degree-days		96			1,554							1,650			—
100	Heating degree-days		517			28							545			—
101	Average humidity		42	%		22	%						32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
102	Single-family		2,991			2,427							5,418			(6,650	)
103	Multi-family		1,888			1,462							3,350			(2,060	)
104	Total		4,879			3,889			—		—		8,768			(8,710	)
	Arizona Job Growth (c) (d)
105	Payroll job growth (% over prior year)		0.1	%		(0.4	)%						(0.1	)%		(2.1	)%
106	Unemployment rate (%, seasonally adjusted)		4.1	%		4.2	%						4.1	%		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 periods ended May 31, 2008 (latest available data).

See Glossary of Terms.

Page 13 of 31

EX-99.4

Exhibit 99.4

Last Updated      7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	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	$	4		$	75		$	204		$	—		$	284		$	14
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		1			(1	)		2			(2	)		—			3
4	SunCor		9			1			(1	)		6			14			(36	)
5	El Dorado		(2	)		—			(3	)		(1	)		(6	)		(3	)
6	Parent Company		5			4			—			1			9			6
7	Income From Continuing Operations		17			79			202			4			301			(16	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—			—			—			—			(1	)
9	SunCor		—			—			7			2			9			(1	)
10	Other		—			—			—			(3	)		(3	)		(2	)
11	Total		—			—			7			(1	)		6			(4	)
12	Net Income	$	17		$	79		$	209		$	3		$	307		$	(20	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	0.04		$	0.75		$	2.03		$	—		$	2.82		$	0.12
14	Pinnacle West Energy		—			—			—			—			—			—
15	APS Energy Services		0.01			(0.01	)		0.01			(0.02	)		(0.01	)		0.02
16	SunCor		0.09			0.01			(0.01	)		0.06			0.15			(0.35	)
17	El Dorado		(0.02	)		—			(0.03	)		(0.01	)		(0.06	)		(0.03	)
18	Parent Company		0.04			0.04			—			0.01			0.09			0.06
19	Income From Continuing Operations		0.16			0.79			2.00			0.04			2.99			(0.18	)
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—			—			—			—			—
21	SunCor		—			(0.01	)		0.07			0.02			0.08			(0.02	)
22	Other		—			—			—			(0.03	)		(0.02	)		(0.02	)
23	Total		—			(0.01	)		0.07			(0.01	)		0.06			(0.04	)
24	Net Income	$	0.16		$	0.78		$	2.07		$	0.03		$	3.05		$	(0.22	)
25	BOOK VALUE PER SHARE	$	34.45		$	34.13		$	35.55		$	35.15		$	35.15		$	0.67
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,622			100,779			100,829			100,963			100,835			825
27	End of Period		100,115			100,290			100,367			100,486			100,486			838

See Glossary of Terms.

Page 14 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

												(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
28	Residential	$	246	$	335	$	574	$	263	$	1,418	$	147
29	Business		264		342		425		323		1,355		116
30	Total retail		510		677		999		586		2,773		263
	Wholesale revenue on delivered electricity
31	Traditional contracts		5		9		12		7		34		12
32	Off-system sales		7		10		16		17		49		3
33	Transmission for others		7		7		8		7		29		3
34	Other miscellaneous services		7		8		9		10		33		2
35	Total regulated operating electricity revenues		536		711		1,044		627		2,918		283
	MARKETING AND TRADING
36	Electricity and other commodity sales		72		93		99		78		342		11
37	Total operating electric revenues	$	608	$	804	$	1,143	$	705	$	3,260	$	294
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,734		3,287		5,084		2,667		13,771		777
39	Business		3,285		4,004		4,426		3,685		15,400		424
40	Total retail		6,019		7,291		9,510		6,352		29,171		1,201
	Wholesale electricity delivered
41	Traditional contracts		175		262		296		190		923		40
42	Off-system sales		243		310		478		448		1,481		(132	)
43	Retail load hedge management		117		254		529		125		1,026		(564	)
44	Total regulated electricity		6,554		8,117		10,813		7,115		32,601		545
	MARKETING AND TRADING
45	Wholesale sales of electricity		1,923		2,648		3,146		1,681		9,397		(6,958	)
46	Total electric sales		8,477		10,765		13,959		8,796		41,998		(6,413	)

See Glossary of Terms.

Page 15 of 31

Last Updated     7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	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)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	160		$	118		$	137		$	150		$	160		$	(13	)
48	Deferred fuel and purchased power costs — current period		25			104			69			(9	)		189			(55	)
49	Regulatory disallowance		—			(14	)		—			—			(14	)		(14	)
50	Interest on deferred fuel		2			1			2			2			7			(1	)
51	Amounts recovered through revenues		(69	)		(72	)		(58	)		(32	)		(231	)		34
52	Deferred fuel and purchased power regulatory asset — ending balance	$	118		$	137		$	150		$	111		$	111		$	(49	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	13		$	23		$	6		$	11		$	54		$	—
54	Mark-to-market reversals on realized sales (a) (b)		(8	)		1			(3	)		(3	)		(7	)		7
55	Change in mark-to-market value of forward sales		10			(6	)		2			2			1			1
56	Total gross margin	$	15		$	18		$	5		$	10		$	48		$	8
	By Pinnacle West Entity
57	APS	$	(1	)	$	7		$	—		$	—		$	7		$	(7	)
58	Pinnacle West		11			10			1			9			31			14
59	APS Energy Services		5			1			4			1			10			1
60	Pinnacle West Energy		—			—			—			—			—			—
61	Total gross margin	$	15		$	18		$	5		$	10		$	48		$	8

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $9 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: 2008, $2 million; and thereafter, $7 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $7 million was transferred to “realized” for the total year of 2007. A $7 million realized gain is included in the $54 million on line 53 for the total year of 2007.

(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      7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
62	Residential		965,428			962,095			963,874			972,654			966,013			29,549
63	Business		118,649			119,792			120,918			121,898			120,314			4,883
64	Total		1,084,077			1,081,887			1,084,792			1,094,552			1,086,327			34,432
65	Wholesale customers		63			62			61			56			61			(16	)
66	Total customers		1,084,140			1,081,949			1,084,853			1,094,608			1,086,388			34,416
67	Customer growth (% over prior year)		3.8	%		3.5	%		3.2	%		2.6	%		3.3	%		(1.1	)%
	RETAIL SALES (GWH) — WEATHER NORMALIZED
68	Residential		2,657			3,220			4,810			2,704			13,390			378
69	Business		3,228			3,977			4,368			3,663			15,236			223
70	Total		5,885			7,197			9,178			6,367			28,626			601
	RETAIL USAGE (KWh/Average Customer)
71	Residential		2,832			3,417			5,275			2,742			14,256			380
72	Business		27,687			33,425			36,601			30,230			127,998			(1,751	)
	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		2,752			3,346			4,990			2,780			13,861			(33	)
74	Business		27,205			33,199			36,126			30,047			126,633			(3,431	)
	ELECTRICITY DEMAND (MW)
75	Native load peak demand		4,496			6,705			7,128			5,089			7,128			(92	)

See Glossary of Terms.

Page 17 of 31

Last Updated      7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
76	Nuclear		2,299			1,846			2,218			1,430			7,794			806
77	Coal		3,164			3,265			3,563			3,350			13,342			166
78	Gas, oil and other		1,151			1,518			2,480			1,554			6,703			(681	)
79	Total generation production		6,614			6,629			8,261			6,334			27,839			291
	Purchased power
80	Firm load		278			1,676			2,521			913			5,388			1,098
81	Marketing and trading		2,128			3,097			3,993			2,078			11,296			(7,572	)
82	Total purchased power		2,406			4,773			6,514			2,991			16,684			(6,474	)
83	Total energy sources		9,020			11,402			14,775			9,325			44,523			(6,183	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		94	%		75	%		89	%		57	%		79	%		8	%
85	Coal		84	%		86	%		93	%		87	%		87	%		0	%
86	Gas, oil and other		16	%		21	%		34	%		21	%		23	%		(2	)%
87	System average		50	%		49	%		61	%		47	%		52	%		1	%
	Generation Capacity Out of Service
	and Replaced for Native Load
	(average MW/day) (a)
88	Nuclear		57			266			22			470			204			51
89	Coal		203			189			79			164			158			76
90	Gas		267			405			147			264			271			182
91	Total		527			860			248			898			633			309

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 18 of 31

Last Updated      7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	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
92	Palo Verde	$	54.62		$	64.64		$	69.26		$	57.18		$	61.43		$	4.67
93	SP15	$	60.02		$	68.75		$	68.84		$	68.13		$	66.44		$	4.49
	Off-Peak
94	Palo Verde	$	42.06		$	41.46		$	37.03		$	44.39		$	41.24		$	4.15
95	SP15	$	45.86		$	46.14		$	41.23		$	50.71		$	45.99		$	5.38
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		172			1,708			2,686			595			5,161			466
97	Heating degree-days		589			8			—			398			995			144
98	Average humidity		36	%		18	%		30	%		30	%		30	%		2	%
	10-Year Averages
99	Cooling degree-days		96			1,554			2,544			441			4,635			—
100	Heating degree-days		517			28			—			394			939			—
101	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
102	Single-family		7,017			7,447			4,827			1,530			20,821			(7,155	)
103	Multi-family		4,131			3,573			2,687			2,193			12,833			2,726
104	Total		11,148			11,020			7,514			3,723			33,654			(4,429	)
	Arizona Job Growth (c)
105	Payroll job growth (% over prior year)		4.1	%		3.3	%		2.6	%		0.1	%		2.5	%		(2.9	)%
106	Unemployment rate
	(%, seasonally adjusted)		4.0	%		3.7	%		3.6	%		4.1	%		3.9	%		(0.2	)%

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      7/30/2008   

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		$	13		$	270		$	100
2	Pinnacle West Energy		—			—		—			—			—			85
3	APS Energy Services		1			—		(2	)		(2	)		(3	)		3
4	SunCor		21			8		17			3			50			11
5	El Dorado		(1	)		—		—			(1	)		(3	)		(1	)
6	Parent Company		(3	)		9		—			(3	)		3			(104	)
7	Income From Continuing Operations		12			111		184			10			317			94
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—		—			—			1			68
9	SunCor		1			1		—			8			10			(7	)
10	Other		—			—		—			—			(1	)		(4	)
11	Total		1			1		—			8			10			57
12	Net Income	$	13		$	112	$	184		$	18		$	327		$	151
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69		$	0.13		$	2.70		$	0.93
14	Pinnacle West Energy		—			—		—			—			—			0.89
15	APS Energy Services		0.01			—		(0.02	)		(0.02	)		(0.03	)		0.03
16	SunCor		0.21			0.07		0.17			0.03			0.50			0.10
17	El Dorado		(0.01	)		—		—			(0.01	)		(0.03	)		(0.01	)
18	Parent Company		(0.03	)		0.09		—			(0.03	)		0.03			(1.08	)
19	Income From Continuing Operations		0.12			1.11		1.84			0.10			3.17			0.86
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—		—			—			—			0.69
21	SunCor		0.01			0.02		—			0.08			0.10			(0.07	)
22	Other		—			—		—			—			—			(0.03	)
23	Total		0.01			0.02		—			0.08			0.10			0.59
24	Net Income	$	0.13		$	1.13	$	1.84		$	0.18		$	3.27		$	1.45
25	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07		$	34.48		$	34.48		$	(0.10	)
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		99,449			99,640		99,973			100,474			100,010			3,420
27	End of Period		99,187			99,284		99,648			99,959			99,959			902

See Glossary of Terms.

Page 20 of 31

Last Updated      7/30/2008   

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
28	Residential	$	202	$	337	$	490	$	242		$	1,271	$	192
29	Business		233		333		371		302			1,239		198
30	Total retail		435		670		861		544			2,510		390
	Wholesale revenue on delivered electricity
31	Traditional contracts		6		7		12		(3	)		22		(1	)
32	Off-system sales		12		22		—		12			46		6
33	Transmission for others		6		6		7		7			26		—
34	Other miscellaneous services		7		8		7		9			31		3
35	Total regulated operating electricity revenues		466		713		887		569			2,635		398
	MARKETING AND TRADING
36	Electricity and other commodity sales		85		90		85		71			331		(21	)
37	Total operating electric revenues	$	551	$	803	$	972	$	640		$	2,966	$	377
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,419		3,284		4,720		2,571			12,994		771
39	Business		3,199		3,971		4,222		3,584			14,976		722
40	Total retail		5,618		7,255		8,942		6,155			27,970		1,493
	Wholesale electricity delivered
41	Traditional contracts		215		181		321		166			883		33
42	Off-system sales		672		218		219		504			1,613		277
43	Retail load hedge management		178		622		450		340			1,590		(1,420	)
44	Total regulated electricity		6,683		8,276		9,932		7,165			32,056		383
	MARKETING AND TRADING
45	Wholesale sales of electricity		3,962		3,862		4,841		3,690			16,355		(7,217	)
46	Total electric sales		10,645		12,138		14,773		10,855			48,411		(6,834	)

See Glossary of Terms.

Page 21 of 31

Last Updated      7/30/2008   

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)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	173		$	169		$	175		$	209		$	173		$	173
48	Deferred fuel and purchased power costs — current period		13			78			134			19			244			73
49	Regulatory disallowance		—			—			—			—			—			—
50	Interest on deferred fuel		1			3			2			2			8			6
51	Amounts recovered through revenues		(18	)		(75	)		(102	)		(70	)		(265	)		(265	)
52	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	209		$	160		$	160		$	(13	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	10		$	17		$	7		$	17		$	54		$	(1	)
54	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)		(6	)		(14	)		2
55	Change in mark-to-market value of forward sales		1			—			(3	)		(3	)		—			(20	)
56	Total gross margin	$	10		$	16		$	3		$	8		$	40		$	(19	)
	By Pinnacle West Entity
57	APS	$	8		$	2		$	(3	)	$	5		$	14		$	20
58	Pinnacle West		(1	)		11			4			2			17			(42	)
59	APS Energy Services		3			3			2			1			9			8
60	Pinnacle West Energy		—			—			—			—			—			(5	)
61	Total gross margin	$	10		$	16		$	3		$	8		$	40		$	(19	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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, $16 million; and 2008, $14 million.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $14 million was transferred to “realized” for the total year 2006. A $14 million realized gain is included in the $54 million on line 53 for the total year 2006.

(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      7/30/2008   

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
62	Residential		930,799			930,402			935,523			949,132			936,464			39,992
63	Business		113,570			114,803			116,009			117,342			115,431			4,263
64	Total		1,044,369			1,045,205			1,051,532			1,066,474			1,051,895			44,255
65	Wholesale customers		75			76			76			80			77			(1	)
66	Total customers		1,044,444			1,045,281			1,051,608			1,066,554			1,051,972			44,254
67	Customer growth (% over prior year)		4.5	%		4.6	%		4.4	%		4.1	%		4.4	%		0.1	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
68	Residential		2,471			3,129			4,779			2,633			13,012			690
69	Business		3,247			3,932			4,230			3,604			15,013			730
70	Total		5,718			7,061			9,009			6,237			28,025			1,420
	RETAIL USAGE (KWh/Average Customer)
71	Residential		2,763			3,530			5,045			2,709			13,876			241
72	Business		30,444			34,590			36,394			30,552			129,749			1,235
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		2,655			3,363			5,108			2,774			13,894			149
74	Business		28,589			34,252			36,463			30,716			130,064			1,579
	ELECTRICITY DEMAND (MW)
75	Native load peak demand		3,954			6,306			7,220			5,022			7,220			647

See Glossary of Terms.

Page 23 of 31

]

Last Updated      7/30/2008   

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
76	Nuclear		1,720			1,198			2,202			1,868			6,988			(521	)
77	Coal		3,083			3,182			3,574			3,337			13,176			116
78	Gas, oil and other		1,323			2,000			2,433			1,628			7,384			(1,051	)
79	Total generation production		6,126			6,380			8,209			6,833			27,548			(1,456	)
	Purchased power
80	Firm load		365			1,740			1,962			223			4,290			816
81	Marketing and trading		4,592			4,597			5,353			4,326			18,868			(6,845	)
82	Total purchased power		4,957			6,337			7,315			4,549			23,158			(6,029	)
83	Total energy sources		11,083			12,717			15,524			11,382			50,706			(7,485	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		71	%		49	%		88	%		75	%		71	%		(6	)%
85	Coal		83	%		84	%		94	%		87	%		87	%		0	%
86	Gas, oil and other		18	%		28	%		34	%		22	%		25	%		(3	)%
87	System average		46	%		48	%		61	%		50	%		51	%		(2	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		306			553			97			267			153			39
89	Coal		257			184			62			155			82			9
90	Gas		201			117			109			286			89			(4	)
91	Total		764			854			268			708			324			44

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 24 of 31

Last Updated      7/30/2008   

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
92	Palo Verde	$	53.78		$	54.63		$	65.89		$	52.72		$	56.76		$	(9.64	)
93	SP15	$	58.34		$	55.39		$	71.89		$	62.16		$	61.95		$	(10.99	)
	Off-Peak
94	Palo Verde	$	41.92		$	28.38		$	38.45		$	39.62		$	37.09		$	(10.46	)
95	SP15	$	44.79		$	27.43		$	43.94		$	46.27		$	40.61		$	(11.45	)
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		43			1,740			2,455			457			4,695			32
97	Heating degree-days		464			4			—			383			851			85
98	Average humidity		28	%		18	%		33	%		33	%		28	%		(6	)%
	10-Year Averages
99	Cooling degree-days		96			1,554			2,544			441			4,635			—
100	Heating degree-days		517			28			—			394			939			—
101	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
102	Single-family		8,716			8,883			5,969			4,408			27,976			(15,282	)
103	Multi-family		2,887			2,976			3,215			1,029			10,107			2,329
104	Total		11,603			11,859			9,184			5,437			38,083			(12,953	)
	Arizona Job Growth (c)
105	Payroll job growth (% over prior year)		6.2	%		5.3	%		5.1	%		4.9	%		5.4	%		0.0	%
106	Unemployment rate (%, seasonally adjusted)		4.2	%		4.1	%		4.0	%		4.1	%		4.1	%		(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 25 of 31

EX-99.6

Exhibit 99.6

Last Updated      7/30/2008

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			10			7			13			39			(2	)
5	El Dorado		(1	)		—			—			—			(2	)		(35	)
6	Parent Company		19			(2	)		88			2			107			79
7	Income From Continuing Operations		30			85			85			24			223			(24	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		(7	)		(59	)		1			(3	)		(67	)		(55	)
9	SunCor		1			1			14			—			17			13
10	Other		—			—			4			—			3			(1	)
11	Total		(6	)		(58	)		19			(3	)		(47	)		(43	)
12	Net Income	$	24		$	27		$	104		$	21		$	176		$	(67	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	0.30		$	0.66		$	0.62		$	0.19		$	1.77		$	(0.41	)
14	Pinnacle West Energy		(0.23	)		0.13			(0.72	)		(0.06	)		(0.89	)		(0.26	)
15	APS Energy Services		(0.04	)		0.01			—			(0.04	)		(0.06	)		(0.09	)
16	SunCor		0.09			0.11			0.07			0.13			0.40			(0.05	)
17	El Dorado		(0.01	)		—			(0.01	)		(0.01	)		(0.02	)		(0.38	)
18	Parent Company		0.21			(0.03	)		0.90			0.03			1.11			0.81
19	Income From Continuing Operations		0.32			0.88			0.86			0.24			2.31			(0.38	)
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		(0.06	)		(0.61	)		—			(0.03	)		(0.69	)		(0.57	)
21	SunCor		0.01			0.01			0.15			0.01			0.17			0.13
22	Other		—			—			0.04			—			0.03			(0.02	)
23	Total		(0.05	)		(0.60	)		0.19			(0.02	)		(0.49	)		(0.46	)
24	Net Income	$	0.27		$	0.28		$	1.05		$	0.22		$	1.82		$	(0.84	)
25	BOOK VALUE PER SHARE	$	32.50		$	32.89		$	35.81		$	34.58		$	34.58		$	2.44
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		92,045			96,299			98,816			99,050			96,590			5,058
27	End of Period		92,103			98,442			98,881			99,057			99,057			7,264

See Glossary of Terms.

Page 26 of 31

Last Updated      7/30/2008

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
28	Residential	$	190	$	268	$	414	$	207	$	1,079	$	95
29	Business		209		281		308		243		1,041		63
30	Total retail		399		549		722		450		2,120		158
	Wholesale revenue on delivered electricity
31	Traditional contracts		3		5		9		6		23		7
32	Off-system sales		—		12		8		20		40		40
33	Transmission for others		7		7		7		5		26		(6	)
34	Other miscellaneous services		7		7		7		7		28		3
35	Total regulated operating electricity revenues		416		580		753		488		2,237		202
	MARKETING AND TRADING
36	Electricity and other commodity sales		89		71		107		84		352		(49	)
37	Total operating electric revenues	$	505	$	651	$	860	$	572	$	2,589	$	153
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,367		2,889		4,449		2,518		12,223		696
39	Business		3,042		3,684		4,100		3,427		14,254		428
40	Total retail		5,409		6,573		8,549		5,945		26,477		1,124
	Wholesale electricity delivered
41	Traditional contracts		155		200		269		227		850		141
42	Off-system sales		—		598		212		526		1,336		1,336
43	Retail load hedge management		750		702		1,026		532		3,010		278
44	Total regulated electricity		6,314		8,073		10,056		7,230		31,673		2,879
	MARKETING AND TRADING
45	Wholesale sales of electricity		6,060		5,009		7,263		5,240		23,572		(6,606	)
46	Total electric sales		12,374		13,082		17,319		12,470		55,245		(3,727	)

See Glossary of Terms.

Page 27 of 31

Last Updated      7/30/2008

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)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	38		$	143		$	—		$	—
48	Deferred fuel and purchased power costs — current period		—			38			104			29			171			171
49	Regulatory disallowance		—			—			—			—			—			—
50	Interest on deferred fuel		—			—			1			1			2			2
51	Amounts recovered through revenues		—			—			—			—			—			—
52	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	38		$	143		$	173		$	173		$	173
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	12		$	18		$	3		$	23		$	55		$	(9	)
54	Mark-to-market reversals on realized sales (a) (b)		(3	)		(8	)		3			(17	)		(16	)		(11	)
55	Change in mark-to-market value of forward sales		10			3			14			1			20			(1	)
56	Total gross margin	$	19		$	13		$	20		$	7		$	59		$	(21	)
	By Pinnacle West Entity
57	APS	$	(4	)	$	3		$	(8	)	$	3		$	(6	)	$	(1	)
58	Pinnacle West		21			6			26			6			59			34
59	APS Energy Services		(3	)		4			2			(2	)		1			(13	)
60	Pinnacle West Energy		5			—			—			—			5			(41	)
61	Total gross margin	$	19		$	13		$	20		$	7		$	59		$	(21	)

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 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 53 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 28 of 31

Last Updated      7/30/2008

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
62	Residential		889,967			888,509			895,789			911,623			896,472			37,403
63	Business		109,795			110,658			111,648			112,569			111,168			4,053
64	Total		999,762			999,167			1,007,437			1,024,192			1,007,640			41,456
65	Wholesale customers		81			76			78			77			78			(3	)
66	Total customers		999,843			999,243			1,007,515			1,024,269			1,007,718			41,453
67	Customer growth (% over prior year)		4.0	%		4.2	%		4.5	%		4.5	%		4.3	%		0.6	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
68	Residential		2,431			2,931			4,434			2,525			12,322			572
69	Business		3,061			3,704			4,105			3,414			14,283			412
70	Total		5,492			6,635			8,539			5,939			26,605			984
	RETAIL USAGE (KWh/Average Customer)
71	Residential		2,660			3,252			4,967			2,763			13,635			217
72	Business		27,706			33,292			36,723			30,444			128,514			(878	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		2,732			3,298			4,950			2,770			13,745			68
74	Business		27,876			33,471			36,770			30,324			128,485			(1,011	)
	ELECTRICITY DEMAND (MW)
75	Native load peak demand		3,763			6,159			6,573			4,904			6,573			555

See Glossary of Terms.

Page 29 of 31

Last Updated      7/30/2008

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
76	Nuclear		2,247			1,619			2,147			1,496			7,509			(674	)
77	Coal		2,940			3,088			3,574			3,458			13,060			394
78	Gas, oil and other		1,128			2,129			3,064			2,114			8,434			3,106
79	Total generation production		6,315			6,836			8,785			7,068			29,003			2,826
	Purchased power
80	Firm load		586			880			1,589			402			3,474			(851	)
81	Marketing and trading		5,832			5,984			7,795			6,102			25,713			(4,479	)
82	Total purchased power		6,418			6,864			9,384			6,504			29,187			(5,330	)
83	Total energy sources		12,733			13,700			18,169			13,572			58,190			(2,504	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		94	%		67	%		88	%		61	%		77	%		(7	)%
85	Coal		80	%		83	%		95	%		92	%		87	%		3	%
86	Gas, oil and other		17	%		29	%		39	%		27	%		28	%		9	%
87	System average		49	%		51	%		62	%		50	%		53	%		2	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		52			329			107			419			114			(45	)
89	Coal		195			244			47			103			73			(55	)
90	Gas		212			164			140			226			93			45
91	Total		459			737			294			748			280			(54	)

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 30 of 31

Last Updated      7/30/2008

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
92	Palo Verde	$	49.74		$	53.33		$	78.94		$	83.58		$	66.40		$	17.10
93	SP15	$	55.70		$	55.19		$	83.21		$	97.65		$	72.94		$	17.74
	Off-Peak
94	Palo Verde	$	37.04		$	33.03		$	52.35		$	67.79		$	47.55		$	12.81
95	SP15	$	40.96		$	34.73		$	56.08		$	76.45		$	52.06		$	13.44
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		34			1,538			2,583			508			4,663			(31	)
97	Heating degree-days		457			1			—			308			766			(219	)
98	Average humidity		56	%		20	%		29	%		30	%		34	%		2	%
	10-Year Averages
99	Cooling degree-days		96			1,554			2,544			441			4,635			—
100	Heating degree-days		517			28			—			394			939			—
101	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
102	Single-family		10,356			12,013			11,577			9,312			43,258			(4,859	)
103	Multi-family		1,741			1,645			2,360			2,032			7,778			192
104	Total		12,097			13,658			13,937			11,344			51,036			(4,667	)
	Arizona Job Growth (c)
105	Payroll job growth (% over prior year)		4.8	%		5.5	%		6.0	%		5.2	%		5.4	%		1.7	%
106	Unemployment rate (%, seasonally adjusted)		4.6	%		4.7	%		4.7	%		4.6	%		4.6	%		(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 31 of 31

EX-99.7

Exhibit 99.7

LAST UPDATED:
7/30/08

Pinnacle West Capital Corporation
Earnings Variance Explanations
for the Three-Month and Six-Month Periods Ended June 30, 2008 and 2007

     This discussion explains the changes in our consolidated earnings for the three-month and six-month periods ended June 30, 2008 and 2007. Unaudited Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2008 and 2007 follow this discussion. We will file our Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 on or before August 11, 2008. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation (“Pinnacle West”) Annual Report on Form 10-K for the fiscal year ended December 31, 2007 and the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2008. 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’s two reportable business segments are:

• 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; and

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

     The following table presents income from continuing operations for our regulated electricity and real estate segments and reconciles those amounts to net income in total for the three months and six months ended June 30, 2008 and 2007 (dollars in millions):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2008			2007		2008			2007
Regulated electricity segment	$	121		$	71	$	114		$	74
Real estate segment		(5	)		—		(6	)		10
All other (a)		(2	)		8		1			12
Income from continuing operations		114			79		109			96
Income from discontinued operations, real estate segment – net of tax (b)		20			—		20			—
Net income	$	134		$	79	$	129		$	96

(a)	Includes activities related to marketing and trading, APSES and El Dorado. None of these segments is a reportable segment.
(b)	Primarily relates to a commercial property sale.

PINNACLE WEST CONSOLIDATED – RESULTS OF OPERATIONS

Operating Results – Three-month period ended June 30, 2008 compared with three-month period ended June 30, 2007

     Our consolidated net income for the three months ended June 30, 2008 was $134 million compared with net income of $79 million for the comparable prior-year period. Net income increased $55 million in the period-to-period comparison and is reflected in the segments as follows:

• Regulated Electricity Segment – Net income increased approximately $50 million due to various factors, including income tax benefits of $30 million related to prior years resolved in 2008; the impacts of retail and transmission rate increases; increased mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals; a regulatory disallowance in 2007; increased revenues, net of fuel and purchased power costs, related to long-term traditional wholesale contracts; and higher retail sales primarily due to customer growth. These positive factors were partially offset by the effects of milder weather on retail sales; higher operations and maintenance expense primarily related to distribution system reliability, generation costs (including planned maintenance and overhauls), and other costs; and higher depreciation and amortization primarily due to higher plant balances.

• Real Estate Segment – Net income increased approximately $15 million primarily due to a commercial property sale in 2008, partially offset by lower land parcel sales resulting from the weak real estate market.

• Other – Net income decreased approximately $10 million primarily due to lower marketing and trading contributions as a result of lower sales volumes.

     Additional details on the major factors that increased (decreased) net income for the three-month period ended June 30, 2008 compared with the prior-year period are contained in the following table (dollars in millions):

2

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment:
Impacts of retail rate increase effective July 1, 2007 and transmission rate increase effective March 1, 2008:
Retail revenue increase primarily related to higher Base Fuel Rate	$	93		$	57
Decreased deferred fuel and purchased power costs related to higher Base Fuel Rate		(76	)		(46	)
Transmission rate increase (including a retail rate component)		7			4
Higher mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals		17			10
Regulatory disallowance in 2007		14			8
Increased revenues, net of fuel and purchased power costs, related to long-term traditional wholesale contracts		7			4
Higher retail sales primarily due to customer growth, excluding weather effects		6			4
Effects of milder weather on retail sales		(18	)		(11	)
Higher operations and maintenance expense primarily related to distribution system reliability, increased generation costs (including planned maintenance and overhauls), and other costs		(12	)		(7	)
Higher depreciation and amortization primarily due to higher plant balances		(5	)		(3	)
Income tax benefits related to prior years resolved in 2008		—			30
Miscellaneous items, net		2			—
Increase in regulated electricity segment net income		35			50
Lower real estate segment income from continuing operations primarily due to lower land parcel sales resulting from the weak real estate market		(8	)		(5	)
Lower marketing and trading contribution primarily due to lower sales volumes		(13	)		(8	)
Other miscellaneous items, net		(2	)		(2	)
Increase in income from continuing operations	$	12			35
Increase in real estate segment income from discontinued operations primarily related to a commercial property sale					20
Increase in net income				$	55

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $118 million higher for the three months ended June 30, 2008 compared with the prior-year period primarily because of:

• a $93 million increase in retail revenues due to a rate increase effective July 1, 2007;

• a $20 million increase in revenues from Off-System Sales due to higher prices and volumes;

3

• a $13 million increase in revenues related to long-term traditional wholesale contracts;

• an $8 million increase in retail revenues primarily related to customer growth, excluding weather effects;

• a $7 million increase due to a transmission rate increase (including a retail rate component) effective March 1, 2008;

• a $24 million decrease in retail revenue due to the effects of milder weather;

• an $8 million decrease in retail 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; and

• a $9 million net increase due to miscellaneous factors.

Real Estate Segment Revenues

     Real estate segment revenues were $11 million lower for the three months ended June 30, 2008 compared with the prior-year period primarily due to lower land parcel and home sales as a result of the weak real estate market.

All Other Revenues

     All other revenues were $44 million lower for the three months ended June 30, 2008 compared with the prior-year period primarily due to the planned reduction of APSES’ retail commodity-related energy services and a decrease in other marketing and trading activities.

Operating Results – Six-month period ended June 30, 2008 compared with six-month period ended June 30, 2007

     Our consolidated net income for the six months ended June 30, 2008 was $129 million compared with net income of $96 million for the comparable prior-year period. Net income increased $33 million in the period-to-period comparison and is reflected in the segments as follows:

• Regulated Electricity Segment – Net income increased approximately $40 million due to various factors, including income tax benefits of $30 million related to prior years resolved in 2008; the impacts of retail and transmission rate increases; increased mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals; a regulatory disallowance in 2007; higher retail sales primarily due to customer growth; and increased revenues, net of fuel and purchased power costs, related to long-term traditional wholesale contracts. These positive factors were partially offset by higher operations and maintenance expense primarily related to increased generation costs (including planned maintenance and overhauls), increased costs related to distribution system reliability, and other costs; the

4

effects of milder weather on retail sales; and higher depreciation and amortization primarily due to higher plant balances.

• Real Estate Segment – Net income increased approximately $4 million primarily due to a commercial property sale in 2008, partially offset by lower land parcel sales resulting from the weak real estate market.

• Other – Net income decreased approximately $11 million primarily due to lower marketing and trading contributions as a result of lower sales volumes.

     Additional details on the major factors that increased (decreased) net income for the six-month period ended June 30, 2008 compared with the prior-year period are contained in the following table (dollars in millions):

5

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment:
Impacts of retail rate increase effective July 1, 2007 and transmission rate increase effective March 1, 2008:
Retail revenue increase primarily related to higher Base Fuel Rate	$	156		$	95
Decreased deferred fuel and purchased power costs related to higher Base Fuel Rate		(141	)		(86	)
Transmission rate increase (including a retail rate component)		10			6
Higher mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals		26			16
Regulatory disallowance in 2007		14			8
Higher retail sales primarily due to customer growth, excluding weather effects		12			7
Increased revenues, net of fuel and purchased power costs, related to long-term traditional wholesale contracts		11			7
Effects of milder weather on retail sales		(19	)		(12	)
Operations and maintenance expense increases primarily due to:
Increased customer service and other costs as a result of distribution system reliability		(18	)		(11	)
Increased generation costs, including more planned maintenance and overhauls		(15	)		(9	)
Higher depreciation and amortization primarily due to higher plant balances		(11	)		(7	)
Income tax benefits related to prior years resolved in 2008		—			30
Miscellaneous items, net		(3	)		(4	)
Increase in regulated electricity segment net income		22			40
Lower real estate segment income from continuing operations primarily due to lower land parcel sales resulting from the weak real estate market		(26	)		(16	)
Lower marketing and trading contribution primarily due to lower sales volumes		(21	)		(13	)
Other miscellaneous items, net		6			2
Increase (decrease) in income from continuing operations	$	(19	)		13
Increase in real estate segment income from discontinued operations primarily related to a commercial property sale					20
Increase in net income				$	33

6

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $205 million higher for the six months ended June 30, 2008 compared with the prior-year period primarily because of:

• a $156 million increase in retail revenues due to a rate increase effective July 1, 2007;

• a $37 million increase in revenues from Off-System Sales due to higher prices and volumes;

• a $20 million increase in revenues related to long-term traditional wholesale contracts;

• a $16 million increase in retail revenues primarily related to customer growth, excluding weather effects;

• a $10 million increase due to a transmission rate increase (including a retail rate component) effective March 1, 2008;

• a $26 million decrease in retail 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;

• a $25 million decrease in retail revenue due to the effects of milder weather; and

• a $17 million net increase due to miscellaneous factors.

Real Estate Segment Revenues

     Real estate segment revenues were $40 million lower for the six months ended June 30, 2008 compared with the prior-year period primarily due to lower land parcel sales as a result of the weak real estate market.

All Other Revenues

     All other revenues were $60 million lower for the six months ended June 30, 2008 compared with the prior-year period primarily due to the planned reduction of APSES’ retail commodity-related energy services and a decrease in other marketing and trading activities.

7

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

	THREE MONTHS ENDED
	JUNE 30,						Increase (Decrease)
	2008			2007			Amount			Percent
Operating Revenues
Regulated electricity segment	$	829,478		$	711,293		$	118,185			16.6	%	B
Real estate segment		36,880			47,819			(10,939	)		22.9	%	W
Marketing and trading		50,673			92,637			(41,964	)		45.3	%	W
Other revenues		9,162			11,153			(1,991	)		17.9	%	W
Total		926,193			862,902			63,291			7.3	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		327,561			270,337			57,224			21.2	%	W
Real estate segment operations		41,746			45,917			(4,171	)		9.1	%	B
Marketing and trading fuel and purchased power		45,245			74,533			(29,288	)		39.3	%	B
Operations and maintenance		194,909			177,310			17,599			9.9	%	W
Depreciation and amortization		97,784			92,476			5,308			5.7	%	W
Taxes other than income taxes		33,251			34,757			(1,506	)		4.3	%	B
Other expenses		6,822			8,803			(1,981	)		22.5	%	B
Total		747,318			704,133			43,185			6.1	%	W
Operating Income		178,875			158,769			20,106			12.7	%	B
Other
Allowance for equity funds used during construction		5,414			5,195			219			4.2	%	B
Other income		3,928			5,869			(1,941	)		33.1	%	W
Other expense		(10,063	)		(3,269	)		(6,794	)		207.8	%	W
Total		(721	)		7,795			(8,516	)		109.2	%	W
Interest Expense
Interest charges		51,583			51,827			(244	)		0.5	%	B
Capitalized interest		(4,938	)		(5,213	)		275			5.3	%	W
Total		46,645			46,614			31			0.1	%	W
Income From Continuing Operations Before Income Taxes		131,509			119,950			11,559			9.6	%	B
Income Taxes		17,076			40,713			(23,637	)		58.1	%	B
Income From Continuing Operations		114,433			79,237			35,196			44.4	%	B
Income (Loss) From Discontinued Operations
Net of Income Taxes		19,429			(243	)		19,672			8095.5	%	B
Net Income	$	133,862		$	78,994		$	54,868			69.5	%	B
Weighted-Average Common Shares Outstanding — Basic		100,653			100,229			424			0.4	%
Weighted-Average Common Shares Outstanding — Diluted		100,917			100,779			138			0.1	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.14		$	0.79		$	0.35			44.3	%	B
Net income — basic	$	1.33		$	0.79		$	0.54			68.4	%	B
Income from continuing operations — diluted	$	1.13		$	0.79		$	0.34			43.0	%	B
Net income — diluted	$	1.33		$	0.78		$	0.55			70.5	%	B

B — Better

W — Worse

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

	SIX MONTHS ENDED
	JUNE 30,						Increase (Decrease)
	2008			2007			Amount			Percent
Operating Revenues
Regulated electricity segment	$	1,452,279		$	1,247,344		$	204,935			16.4	%	B
Real estate segment		84,622			124,951			(40,329	)		32.3	%	W
Marketing and trading		108,131			165,108			(56,977	)		34.5	%	W
Other revenues		17,899			20,516			(2,617	)		12.8	%	W
Total		1,662,931			1,557,919			105,012			6.7	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		596,939			473,690			123,249			26.0	%	W
Real estate segment operations		89,965			107,253			(17,288	)		16.1	%	B
Marketing and trading fuel and purchased power		96,767			132,477			(35,710	)		27.0	%	B
Operations and maintenance		389,033			348,888			40,145			11.5	%	W
Depreciation and amortization		193,391			181,854			11,537			6.3	%	W
Taxes other than income taxes		66,403			69,476			(3,073	)		4.4	%	B
Other expenses		12,760			17,291			(4,531	)		26.2	%	B
Total		1,445,258			1,330,929			114,329			8.6	%	W
Operating Income		217,673			226,990			(9,317	)		4.1	%	W
Other
Allowance for equity funds used during construction		11,538			9,639			1,899			19.7	%	B
Other income		7,776			8,642			(866	)		10.0	%	W
Other expense		(14,971	)		(7,883	)		(7,088	)		89.9	%	W
Total		4,343			10,398			(6,055	)		58.2	%	W
Interest Expense
Interest charges		106,349			101,953			4,396			4.3	%	W
Capitalized interest		(10,617	)		(10,020	)		(597	)		6.0	%	B
Total		95,732			91,933			3,799			4.1	%	W
Income From Continuing Operations Before Income Taxes		126,284			145,455			(19,171	)		13.2	%	W
Income Taxes		16,519			49,754			(33,235	)		66.8	%	B
Income From Continuing Operations		109,765			95,701			14,064			14.7	%	B
Income (Loss) From Discontinued Operations
Net of Income Taxes		19,624			(177	)		19,801			11187.0	%	B
Net Income	$	129,389		$	95,524		$	33,865			35.5	%	B
Weighted-Average Common Shares Outstanding — Basic		100,587			100,138			449			0.4	%
Weighted-Average Common Shares Outstanding — Diluted		100,856			100,718			138			0.1	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.09		$	0.96		$	0.13			13.5	%	B
Net income — basic	$	1.29		$	0.95		$	0.34			35.8	%	B
Income from continuing operations — diluted	$	1.09		$	0.95		$	0.14			14.7	%	B
Net income — diluted	$	1.28		$	0.95		$	0.33			34.7	%	B

B — Better

W — Worse

EX-99.8

Exhibit 99.8

Last Updated 7/30/08

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
and Earnings Variance Explanations
Glossary of Terms

Amounts Recovered Through Revenues	Amounts recovered from retail customers through the power supply adjustor in the current period.
APS	Arizona Public Service Company, a subsidiary of Pinnacle West.
APSES	APS Energy Services Company, Inc., a subsidiary of Pinnacle West.
Arizona Job Growth	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.
Base Fuel Rate	The portion of APS’ retail base rates attributable to fuel and purchased power costs.
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.
Company	Pinnacle West Capital Corporation.
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 $0.0325 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 $0.0325 per kWh).

- 2 -

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.
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.
El Dorado	El Dorado Investment Company, a subsidiary of Pinnacle West.
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.

- 3 -

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.
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.

- 4 -

Native Load	Retail and wholesale sales supplied under traditional cost-based rate regulation.
Native Load Peak Demand	The demand for electricity during the one hour of highest use each month. Measured in megawatts.
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.
Palo Verde	Palo Verde Nuclear Generating Station.
Pinnacle West	Pinnacle West Capital Corporation (the Company)
Pinnacle West Energy (PWEC)	Pinnacle West Energy Corporation, a subsidiary of the Company, dissolved as of August 31, 2006.
Pinnacle West Marketing & Trading	Pinnacle West Marketing & Trading Co., LLC, a subsidiary of Pinnacle West.
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 $0.0325 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.

- 5 -

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.
SunCor	SunCor Development Company, a subsidiary of Pinnacle West.
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.
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		July 30, 2008
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 ON-GOING YEAR-TO-DATE EARNINGS FLAT
Prior-Year Tax Credits and Real Estate Sale Drive Second-Quarter Results

PHOENIX – Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income of $133.9 million, or $1.33 per diluted share of common stock, for the quarter ended June 30, 2008. These results compare with net income of $79.0 million, or $0.78 per diluted share, for the same period a year ago. The higher results were due in large part to $30 million of credits attributable to the resolution of tax issues applicable to prior years at the Company’s regulated utility and a $19 million gain from the sale of a large asset in its real estate business.

Pinnacle West Chairman Bill Post pointed out that Pinnacle West’s on-going earnings for the first six months of 2008 were the same as a year ago.

“Although earnings for the second quarter are up, after adjusting for the tax impacts, on-going earnings are flat for the year with inflation offsetting our efficiency savings and revenue growth,” said Post. “Year-to-date, on-going earnings at Arizona Public Service are essentially flat, increasing only $4 million compared to last year.”

SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $14.7 million for the second quarter of 2008, compared with $0.3 million in the 2007 second quarter. The increase was entirely related to the sale of a 12-story office building at SunCor’s Hayden Ferry Lakeside development in Tempe, Ariz.

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

Conference Call

Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2008 second quarter earnings and recent developments at 1 p.m. (ET), today, Wednesday, July 30, 2008. 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 Conference ID Number 52534276. A replay of the call also will be available until 11:55 p.m. (ET), Wednesday, August 6, 2008, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same ID number as above.

PINNACLE WEST SECOND QUARTER EARNINGS	July 30, 2008
	Page 2 of 2

Pinnacle West is a Phoenix-based company with consolidated assets of about $11.5 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
	June 30, 2008						June 30, 2007
	$ in			Diluted			$ in			Diluted
	Millions			EPS			Millions			EPS
PINNACLE WEST CAPITAL CORPORATION
Net Income	$	133.9		$	1.33		$	79.0		$	0.78
Adjustments:
Income tax credits related to prior years		(30.0	)		(0.30	)		(1.8	)		(0.02	)
Regulatory disallowance		—			—			8.0			0.08
On-going Earnings	$	103.9		$	1.03		$	85.2		$	0.84

	Six Months Ended						Six Months Ended
	June 30, 2008						June 30, 2007
	$ in			Diluted			$ in			Diluted
	Millions			EPS			Millions			EPS
PINNACLE WEST CAPITAL CORPORATION
Net Income	$	129.4		$	1.28		$	95.5		$	0.95
Adjustments:
Income tax credits related to prior years		(30.0	)		(0.30	)		(3.3	)		(0.03	)
Regulatory disallowance		—			—			8.0			0.08
On-going Earnings	$	99.4		$	0.98		$	100.2		$	1.00
ARIZONA PUBLIC SERVICE
Net Income	$	119.0					$	79.4
Adjustments:
Income tax credits related to prior years		(29.3	)					(1.5	)
Regulatory disallowance		—						8.0
On-going Earnings	$	89.7					$	85.9

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

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2008			2007			2008			2007
Operating Revenues
Regulated electricity segment	$	829,478		$	711,293		$	1,452,279		$	1,247,344
Real estate segment		36,880			47,819			84,622			124,951
Marketing and trading		50,673			92,637			108,131			165,108
Other revenues		9,162			11,153			17,899			20,516
Total		926,193			862,902			1,662,931			1,557,919
Operating Expenses
Regulated electricity segment fuel and purchased power		327,561			270,337			596,939			473,690
Real estate segment operations		41,746			45,917			89,965			107,253
Marketing and trading fuel and purchased power		45,245			74,533			96,767			132,477
Operations and maintenance		194,909			177,310			389,033			348,888
Depreciation and amortization		97,784			92,476			193,391			181,854
Taxes other than income taxes		33,251			34,757			66,403			69,476
Other expenses		6,822			8,803			12,760			17,291
Total		747,318			704,133			1,445,258			1,330,929
Operating Income		178,875			158,769			217,673			226,990
Other
Allowance for equity funds used during construction		5,414			5,195			11,538			9,639
Other income		3,928			5,869			7,776			8,642
Other expense		(10,063	)		(3,269	)		(14,971	)		(7,883	)
Total		(721	)		7,795			4,343			10,398
Interest Expense
Interest charges		51,583			51,827			106,349			101,953
Capitalized interest		(4,938	)		(5,213	)		(10,617	)		(10,020	)
Total		46,645			46,614			95,732			91,933
Income From Continuing Operations Before Income Taxes		131,509			119,950			126,284			145,455
Income Taxes		17,076			40,713			16,519			49,754
Income From Continuing Operations		114,433			79,237			109,765			95,701
Income (Loss) From Discontinued Operations
Net of Income Taxes		19,429			(243	)		19,624			(177	)
Net Income	$	133,862		$	78,994		$	129,389		$	95,524
Weighted-Average Common Shares Outstanding — Basic		100,653			100,229			100,587			100,138
Weighted-Average Common Shares Outstanding — Diluted		100,917			100,779			100,856			100,718
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.14		$	0.79		$	1.09		$	0.96
Net income — basic	$	1.33		$	0.79		$	1.29		$	0.95
Income from continuing operations — diluted	$	1.13		$	0.79		$	1.09		$	0.95
Net income — diluted	$	1.33		$	0.78		$	1.28		$	0.95