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): December 31, 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 (an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000	86-0512431
1-4473	Arizona Public Service Company (an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000	86-0011170

     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.

Item 2.02. Results of Operations and Financial Condition

     On February 20, 2009, Pinnacle West Capital Corporation (the “Company” or “Pinnacle West”) issued a press release regarding its financial results for its fiscal quarter ended December 31, 2008. A copy of the press release is attached hereto as Exhibit 99.8.

     Certain of the Information referenced in Item 7.01 below relates to the Company’s results of operations for its fiscal quarter ended December 31, 2008. This Information is attached hereto as Exhibits 99.2, 99.3, 99.6 and 99.8.

Item 7.01. Regulation FD Disclosure

Financial and Business Information

     The Company is providing quarterly consolidated statistical summaries and a glossary of relevant terms (collectively, “Information”) to help interested parties better understand its business (see Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6 and 99.7). 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.

2009 Earnings Outlook

      In this discussion, earnings per share amounts are after income taxes and are based on diluted 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 and under “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008 (the “2008 Form 10-K”). Our estimates as to how several of these risks and other factors may affect future earnings follow:

• Arizona Public Service Company (“APS”) has a general retail rate case pending before the Arizona Corporation Commission (the “ACC”). The rate request includes, among other things, a net overall increase of $278.2 million in annual pretax retail electricity revenues to be effective no later than October 1, 2009. The requested net increase consists of an increase of $264.3 million in non-fuel base rates and a net increase of $13.9 million for fuel and purchased power costs reflected in base rates. On January 30, 2009, APS began settlement discussions with the parties to the general retail rate case. We are not able to predict the ultimate outcome of the rate case, when the ACC will make a decision in this case, or the specific date when a rate increase will become effective. (For detailed information regarding the rate case, see “2008 General Rate Case” in Note 3 of Notes to Consolidated Financial Statements in Part II, Item 8 of the 2008 Form 10-K.)

• On December 18, 2008, the ACC voted to approve an emergency interim base rate surcharge for APS (the “Interim Rate Decision”). This surcharge became effective for retail customer bills issued after December 31, 2008 and will continue in effect until a decision under the pending general retail rate case becomes effective. This surcharge is expected to increase annual pretax retail revenues approximately $65.2 million, and is subject to refund with interest pending the final outcome of APS’ general retail rate case.

• The Interim Rate Decision requires, among other things, that APS examine its operations and expenses, targeting additional cuts of at least $20 million, and reinvest the savings and surcharge revenues in infrastructure and technology necessary to serve APS customers and reduce the need for external debt financing. Since the study is still underway, no adjustments have been made to our estimates for potential additional cost reductions.

• Our current outlook for our real estate subsidiary, SunCor Development Company (“SunCor”), reflects the weak status of the real estate market in the United States and the limited availability of financing. SunCor’s net loss in 2008 included a $53 million pretax impairment charge. If conditions in the broader economy or the real estate market worsen, or as a result of a change in SunCor’s strategy, we may be required to record additional impairment charges.

     We estimate that our consolidated earnings for 2009 will be within a reasonable range around $2.30 per share, excluding the impact of SunCor (including any potential future real estate impairment charges) and before considering any potential earnings benefit during the year derived from a net base rate increase at the conclusion of the pending general retail rate case. We estimate that APS’ earnings contribution included in such consolidated earnings will be within a reasonable range around $2.35 per share (equivalent to a return on APS’ average common equity of about 7%). This estimate assumes that the interim base rate surcharge will remain in effect throughout 2009. Our earnings estimates will increase to the extent the ultimate outcome of the general retail rate case includes a net base rate increase in 2009 that exceeds the amount of the interim base rate surcharge. We currently estimate that holding company expenses and other items, net, will be a net loss within a reasonable range around $0.05 per share. For additional details regarding the major factors affecting our consolidated earnings outlook for 2009, see Exhibit 99.9 attached hereto.

2010 Earnings Outlook

      Assuming APS’ general retail rate request is granted in full and is effective for the entire year, we estimate that our consolidated earnings for 2010, excluding the impact of SunCor (including any potential real estate impairment charges) will be within a reasonable range around $3.00 per share. We estimate that APS’ earnings contribution included in such 2010 consolidated earnings will be within a reasonable range around $3.00 per share (equivalent to a return on APS’ average common equity of about 9%). We currently estimate that holding company expenses and other items, net, will not have any meaningful impact on our 2010 consolidated financial results. For additional details regarding major factors affecting our consolidated earnings outlook for 2010, see Exhibit 99.10 attached hereto.

Forward-Looking Statements

     This Form 8-K contains forward-looking statements regarding our 2009 and 2010 earnings outlook. Neither Pinnacle West 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. These forward-looking statements are often identified by words such as “estimate,” “predict,” “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results

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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, 2008, these factors include, but are not limited to, state and federal regulatory and legislative decisions and actions, including the outcome or timing of the pending rate case of APS; increases in our capital expenditures and operating costs and our ability to achieve timely and adequate rate recovery of these increased costs; our ability to reduce capital expenditures and other costs while maintaining reliability and customer service levels, and unexpected developments that would limit us from achieving all or some of our planned capital expenditure reductions; volatile fuel and purchased power costs, including fluctuations in market prices for natural gas, coal, uranium and other fuels used in our generating facilities, availability of supplies of such commodities, and our ability to recover the costs of such commodities; the outcome and resulting costs of regulatory, legislative and judicial proceedings, both current and future, including those related to environmental matters and climate change; the availability of sufficient water supplies to operate our generation facilities, including as the result of drought conditions; the potential for additional restructuring of the electric industry, including decisions impacting wholesale competition and the introduction of retail electric competition in Arizona; regional, national and international economic and market conditions, including the strength of the housing, credit and financial markets; the potential adverse impact of current economic conditions on our results of operations; the cost of debt and equity capital and access to capital markets; changes in the market price of our common stock; restrictions on dividends or other burdensome provisions in new or existing credit agreements; our ability, or the ability of our subsidiaries, to meet debt service obligations; current credit ratings remaining in effect for any given period of time; the performance of the stock market and the changing interest rate environment, which affect the value of our nuclear decommissioning trust, 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 and our ability to recover such costs; 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); changes in accounting principles generally accepted in the United States of America, the interpretation of those principles and the impact of the adoption of new accounting standards; customer growth and energy usage; weather variations affecting local and regional customer energy usage; power plant performance and outages; transmission outages and constraints; the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies; risks inherent in the operation of nuclear facilities, such as environmental, regulatory, health and financial risks, risk of terrorist attack, planned and unplanned outages, and unfunded decommissioning costs; the ability of our power plant participants to meet contractual or other obligations; technological developments in the electric industry; the results of litigation and other proceedings resulting from the California and Pacific Northwest energy situations; the performance of Pinnacle West’s subsidiaries and any resulting effects on its cash flow; the strength of the real estate market and economic and other conditions affecting 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.

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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 twelve-month periods ended December 31, 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 earnings variance explanations for the three and twelve months ended December 31, 2008 and 2007 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2008 and 2007.
99.7	Pinnacle West APS	Glossary of Terms.
99.8	Pinnacle West APS	Earnings News Release issued on February 20, 2009.
99.9	Pinnacle West APS	2009 Earnings Outlook Reconciliation
99.10	Pinnacle West APS	2010 Earnings Outlook Reconciliation

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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: February 20, 2009	By:	/s/ James R. Hatfield
		James R. Hatfield
		Senior Vice President and Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY (Registrant)
Dated: February 20, 2009	By:	/s/ James R. Hatfield
		James R. Hatfield
		Senior Vice President and Chief Financial Officer

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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 twelve-month periods ended December 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 earnings variance explanations for the three and twelve months ended December 31, 2008 and 2007 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2008 and 2007.
99.7	Pinnacle West APS	Glossary of Terms.
99.8	Pinnacle West APS	Earnings News Release issued on February 20, 2009.
99.9	Pinnacle West APS	2009 Earnings Outlook Reconciliation
99.10	Pinnacle West APS	2010 Earnings Outlook Reconciliation

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EX-99.1

Exhibit 99.1

Last Updated  2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

List of Contents

2008 Fourth Quarter Summary

2008 by Quarter

2007 by Quarter

2006 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/2008Q4QuarStatsGloss.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     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December									12 Mo. Ended December
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	(16	)	$	—		$	(16	)	$	262		$	284		$	(22	)
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		1			(1	)		2			2			(2	)		4
4	SunCor		(36	)		6			(42	)		(49	)		14			(63	)
5	El Dorado		(2	)		(1	)		(1	)		(10	)		(6	)		(4	)
6	Parent Company		4			—			4			9			9			—
7	Income From Continuing Operations		(49	)		4			(53	)		214			299			(85	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	SunCor		2			2			—			23			9			14
9	Other		8			(3	)		11			5			(1	)		6
10	Total		10			(1	)		11			28			8			20
11	Net Income (loss)	$	(39	)	$	3		$	(42	)	$	242		$	307		$	(65	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
12	Arizona Public Service	$	(0.16	)	$	—		$	(0.16	)	$	2.60		$	2.82		$	(0.22	)
13	Pinnacle West Energy		—			—			—			—			—			—
14	APS Energy Services		0.01			(0.02	)		0.03			0.02			(0.02	)		0.04
15	SunCor		(0.35	)		0.06			(0.41	)		(0.48	)		0.13			(0.61	)
16	El Dorado		(0.02	)		(0.01	)		(0.01	)		(0.10	)		(0.06	)		(0.04	)
17	Parent Company		0.04			0.01			0.03			0.08			0.09			(0.01	)
18	Income From Continuing Operations		(0.48	)		0.04			(0.52	)		2.12			2.96			(0.84	)
	Income (Loss) From Discontinued Operations — Net of Tax
19	SunCor		0.02			0.02			—			0.22			0.09			0.13
20	Other		0.07			(0.03	)		0.10			0.06			—			0.06
21	Total		0.09			(0.01	)		0.10			0.28			0.09			0.19
22	Net Income (loss)	$	(0.39	)	$	0.03		$	(0.42	)	$	2.40		$	3.05		$	(0.65	)
23	BOOK VALUE PER SHARE	$	34.16		$	35.15		$	(0.99	)	$	34.16		$	35.15		$	(0.99	)
	COMMON SHARES OUTSTANDING (Thousands)
24	Average — Diluted		100,836			100,963			(127	)		100,965			100,835			130
25	End of Period		100,889			100,486			403			100,889			100,486			403

See Glossary of Terms. Page 2 of 25

Last Updated     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December							12 Mo. Ended December
Line		2008		2007		Incr (Decr)			2008		2007		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
26	Residential	$	263	$	263	$	—		$	1,454	$	1,418	$	36
27	Business		321		323		(2	)		1,444		1,355		89
28	Total retail		584		586		(2	)		2,898		2,773		125
	Wholesale revenue on delivered electricity
29	Traditional contracts		13		7		6			70		34		36
30	Off-system sales		20		17		3			88		49		39
31	Transmission for others		9		7		2			34		29		5
32	Other miscellaneous services		9		10		(1	)		37		33		4
33	Total regulated operating electricity revenues		635		627		8			3,127		2,918		209
	MARKETING AND TRADING
34	Electricity and other commodity sales		9		29		(20	)		67		138		(71	)
35	Total operating electric revenues	$	644	$	656	$	(12	)	$	3,194	$	3,056	$	138
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
36	Residential		2,606		2,667		(61	)		13,368		13,771		(403	)
37	Business		3,650		3,685		(35	)		15,425		15,400		25
38	Total retail		6,256		6,352		(96	)		28,793		29,171		(378	)
	Wholesale electricity delivered
39	Traditional contracts		198		190		8			1,074		923		151
40	Off-system sales		457		448		9			2,008		1,481		527
41	Retail load hedge management		267		125		142			1,074		1,026		48
42	Total regulated electricity		7,178		7,115		63			32,949		32,601		348
	MARKETING AND TRADING
43	Wholesale sales of electricity		245		1,681		(1,436	)		2,434		9,397		(6,963	)
44	Total electric sales		7,423		8,796		(1,373	)		35,383		41,998		(6,615	)

See Glossary of Terms. Page 3 of 25

Last Updated     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December									12 Mo. Ended December
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
45	Deferred fuel and purchased power regulatory asset — beginning balance	$	58		$	150		$	(92	)	$	111		$	160		$	(49	)
46	Deferred fuel and purchased power costs — current period		(25	)		(9	)		(16	)		78			189			(111	)
47	Regulatory disallowance		—			—			—			—			(14	)		14
48	Interest on deferred fuel		—			2			(2	)		2			7			(5	)
49	Amounts recovered through revenues		(25	)		(32	)		7			(183	)		(231	)		48
50	Deferred fuel and purchased power regulatory asset — ending balance	$	8		$	111		$	(103	)	$	8		$	111		$	(103	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
51	Electricity and other commodity sales, realized (a)	$	8		$	6		$	—		$	17		$	43		$	(26	)
52	Mark-to-market reversals on realized sales (a) (b)		—			1			(1	)		4			(7	)		11
53	Change in mark-to-market value of forward sales		—			2			(2	)		—			2			(2	)
54	Total gross margin	$	8		$	9		$	(1	)	$	21		$	38		$	(17	)
	By Pinnacle West Entity
55	APS	$	—		$	—		$	—		$	—		$	7		$	(7	)
56	Pinnacle West		8			9			(1	)		21			31			(10	)
57	APS Energy Services		—			—			—			—			—			—
58	Pinnacle West Energy		—			—			—			—			—			—
59	Total gross margin	$	8		$	9		$	(1	)	$	21		$	38		$	(17	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2008, Pinnacle West had accumulated net mark-to-market gains of $4 million related to our power marketing and trading activities.

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 51 and in line 52 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 51 are included in line 52. For example, line 52 shows that a prior-period mark-to-market loss of $4 million was transferred to “realized” for the total year of 2008. A $4 million realized loss is included in the $17 million on line 51 for the total year 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 25

Last Updated     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December									12 Mo. Ended December
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
60	Residential		980,268			972,654			7,614			977,944			966,013			11,931
61	Business		124,878			121,898			2,980			123,961			120,314			3,647
62	Total		1,105,146			1,094,552			10,594			1,101,905			1,086,327			15,578
63	Wholesale customers		49			56			(7	)		51			61			(10	)
64	Total customers		1,105,195			1,094,608			10,587			1,101,956			1,086,388			15,568
65	Customer growth (% over prior year)		1.0	%		2.6	%		(1.6	)%		1.4	%		3.3	%		(1.9	)%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
66	Residential		2,666			2,704			(38	)		13,500			13,390			110
67	Business		3,652			3,663			(11	)		15,434			15,236			198
68	Total		6,318			6,367			(49	)		28,934			28,626			308
	RETAIL USAGE (KWh/Average Customer)
69	Residential		2,658			2,742			(84	)		13,669			14,256			(587	)
70	Business		29,229			30,230			(1,001	)		124,435			127,998			(3,563	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
71	Residential		2,720			2,780			(60	)		13,804			13,861			(57	)
72	Business		29,246			30,047			(801	)		124,506			126,633			(2,127	)
	ELECTRICITY DEMAND (MW)
73	Native load peak demand		5,443			5,089			354			7,026			7,128			(102	)

See Glossary of Terms. Page 5 of 25

Last Updated     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December									12 Mo. Ended December
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
74	Nuclear		1,886			1,430			456			8,512			7,794			718
75	Coal		3,422			3,350			72			13,166			13,342			(176	)
76	Gas, oil and other		1,334			1,554			(220	)		6,356			6,703			(347	)
77	Total generation production		6,642			6,334			308			28,034			27,839			195
	Purchased power
78	Firm load		638			913			(275	)		5,028			5,388			(360	)
79	Marketing and trading		639			2,078			(1,439	)		4,558			11,296			(6,738	)
80	Total purchased power		1,277			2,991			(1,714	)		9,586			16,684			(7,098	)
81	Total energy sources		7,919			9,325			(1,406	)		37,620			44,523			(6,903	)
	POWER PLANT PERFORMANCE
	Capacity Factors
82	Nuclear		74	%		57	%		17	%		84	%		79	%		5	%
83	Coal		89	%		87	%		2	%		86	%		87	%		(1	)%
84	Gas, oil and other		18	%		21	%		(3	)%		22	%		23	%		(1	)%
85	System average		48	%		47	%		1	%		51	%		52	%		(1	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
86	Nuclear		287			470			(183	)		155			216			(61	)
87	Coal		89			164			(75	)		155			158			(3	)
88	Gas		188			264			(76	)		197			271			(74	)
89	Total		564			898			(334	)		507			645			(138	)

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 6 of 25

Last Updated     2/20/2009

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2008 and 2007

		3 Mo. Ended December									12 Mo. Ended December
Line		2008			2007			Incr (Decr)			2008			2007			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
90	Palo Verde	$	44.32		$	57.18		$	(12.86	)	$	71.16		$	61.43		$	9.73
91	SP15	$	54.48		$	68.13		$	(13.65	)	$	79.33		$	66.44		$	12.89
	Off-Peak
92	Palo Verde	$	33.39		$	44.39		$	(11.00	)	$	50.61		$	41.24		$	9.37
93	SP15	$	40.10		$	50.71		$	(10.61	)	$	57.13		$	45.99		$	11.14
	WEATHER INDICATORS
	Actual
94	Cooling degree-days		504			595			(91	)		4,682			5,161			(479	)
95	Heating degree-days		321			398			(77	)		904			995			(91	)
96	Average humidity		36	%		30	%		6	%		32	%		30	%		2	%
	10-Year Averages
97	Cooling degree-days		441			441			—			4,635			4,635			—
98	Heating degree-days		394			394			—			939			939			—
99	Average humidity		38	%		38	%		0	%		33	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
100	Single-family		1,124			2,587			(1,463	)		10,350			21,878			(11,528	)
101	Multi-family		1,173			3,483			(2,310	)		7,453			13,874			(6,421	)
102	Total		2,297			6,070			(3,773	)		17,803			35,752			(17,949	)
	Arizona Job Growth (c)
103	Payroll job growth (% over prior year)		(3.6	)%		0.1	%		(3.7	)%		(1.6	)%		1.2	%		(2.8	)%
104	Unemployment rate (%, seasonally adjusted)		6.4	%		4.1	%		2.3	%		5.1	%		3.8	%		1.3	%

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 7 of 25

EX-99.3

Exhibit 99.3

Last Updated      2/20/2009

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		$	160		$	(16	)	$	262		$	(22	)
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		1			—			—			1			2			4
4	SunCor		(1	)		(5	)		(7	)		(36	)		(49	)		(63	)
5	El Dorado		(1	)		(5	)		(1	)		(2	)		(10	)		(4	)
6	Parent Company		4			(1	)		—			4			9			—
7	Income From Continuing Operations		(3	)		114			152			(49	)		214			(85	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	SunCor		—			20			1			2			23			14
9	Other		(1	)		—			(1	)		8			5			6
10	Total		(1	)		20			—			10			28			20
11	Net Income (loss)	$	(4	)	$	134		$	152		$	(39	)	$	242		$	(65	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
12	Arizona Public Service	$	(0.06	)	$	1.24		$	1.58		$	(0.16	)	$	2.60		$	(0.22	)
13	Pinnacle West Energy		—			—			—			—			—			—
14	APS Energy Services		0.01			—			—			0.01			0.02			0.04
15	SunCor		(0.01	)		(0.05	)		(0.07	)		(0.35	)		(0.48	)		(0.61	)
16	El Dorado		(0.02	)		(0.05	)		(0.01	)		(0.02	)		(0.10	)		(0.04	)
17	Parent Company		0.04			(0.01	)		—			0.04			0.08			(0.01	)
18	Income From Continuing Operations		(0.04	)		1.13			1.50			(0.48	)		2.12			(0.84	)
	Income (Loss) From Discontinued Operations — Net of Tax
19	SunCor		—			0.19			0.01			0.02			0.22			0.13
20	Other		—			0.01			(0.01	)		0.07			0.06			0.06
21	Total		—			0.20			—			0.09			0.28			0.19
22	Net Income (loss)	$	(0.04	)	$	1.33		$	1.50		$	(0.39	)	$	2.40		$	(0.65	)
23	BOOK VALUE PER SHARE	$	35.22		$	37.22		$	35.84		$	34.16		$	34.16		$	(0.99	)
	COMMON SHARES OUTSTANDING (Thousands)
24	Average — Diluted		100,521			100,917			101,018			100,836			100,965			130
25	End of Period		100,486			100,706			100,799			100,889			100,889			403

See Glossary of Terms. Page 8 of 25

Last Updated      2/20/2009

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
26	Residential	$	271	$	365	$	555	$	263	$	1,454	$	36
27	Business		300		396		427		321		1,444		89
28	Total retail		571		761		982		584		2,898		125
	Wholesale revenue on delivered electricity
29	Traditional contracts		12		22		23		13		70		36
30	Off-system sales		24		30		14		20		88		39
31	Transmission for others		7		8		11		9		34		5
32	Other miscellaneous services		9		8		10		9		37		4
33	Total regulated operating electricity revenues		623		829		1,040		635		3,127		209
	MARKETING AND TRADING
34	Electricity and other commodity sales		30		23		5		9		67		(71	)
35	Total operating electric revenues	$	653	$	852	$	1,045	$	644	$	3,194	$	138
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
36	Residential		2,774		3,112		4,876		2,606		13,368		(403	)
37	Business		3,338		3,990		4,447		3,650		15,425		25
38	Total retail		6,112		7,102		9,323		6,256		28,793		(378	)
	Wholesale electricity delivered
39	Traditional contracts		222		319		335		198		1,074		151
40	Off-system sales		416		610		525		457		2,008		527
41	Retail load hedge management		162		159		486		267		1,074		48
42	Total regulated electricity		6,912		8,190		10,669		7,178		32,949		348
	MARKETING AND TRADING
43	Wholesale sales of electricity		911		979		298		245		2,434		(6,963	)
44	Total electric sales		7,823		9,169		10,967		7,423		35,383		(6,615	)

See Glossary of Terms. Page 9 of 25

Last Updated      2/20/2009

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)
45	Deferred fuel and purchased power regulatory asset — beginning balance	$	111		$	50		$	23		$	58		$	111		$	(49	)
46	Deferred fuel and purchased power costs — current period		(11	)		37			79			(25	)		78			(111	)
47	Regulatory disallowance		—			—			—			—			—			14
48	Interest on deferred fuel		1			—			—			—			2			(5	)
49	Amounts recovered through revenues		(51	)		(64	)		(44	)		(25	)		(183	)		48
50	Deferred fuel and purchased power regulatory asset — ending balance	$	50		$	23		$	58		$	8		$	8		$	(103	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
51	Electricity and other commodity sales, realized (a)	$	4		$	3		$	5		$	8		$	17		$	(26	)
52	Mark-to-market reversals on realized sales (a) (b)		1			1			(2	)		—			4			11
53	Change in mark-to-market value of forward sales		2			—			—			—			—			(2	)
54	Total gross margin	$	7		$	4		$	3		$	8		$	21		$	(17	)
	By Pinnacle West Entity
55	APS	$	—		$	—		$	—		$	—		$	—		$	(7	)
56	Pinnacle West		7			4			3			8			21			(10	)
57	APS Energy Services		—			—			—			—			—			—
58	Pinnacle West Energy		—			—			—			—			—			—
59	Total gross margin	$	7		$	4		$	3		$	8		$	21		$	(17	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2008, Pinnacle West had accumulated net mark-to-market gains of $4 million related to our power marketing and trading activities.  

(a)

Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 51 and in line 52 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 51 are included in line 52. For example, line 52 shows that a prior-period mark-to-market loss of $4 million was transferred to “realized” for the total year of 2008. A $4 million realized loss is included in the $17 million on line 51 for the total year 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 25

Last Updated      2/20/2009

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
60	Residential		982,459			975,594			973,455			980,268			977,944			11,931
61	Business		122,833			123,802			124,329			124,878			123,961			3,647
62	Total		1,105,292			1,099,396			1,097,784			1,105,146			1,101,905			15,578
63	Wholesale customers		50			54			51			49			51			(10	)
64	Total customers		1,105,342			1,099,450			1,097,835			1,105,195			1,101,956			15,568
65	Customer growth (% over prior year)		2.0	%		1.6	%		1.2	%		1.0	%		1.4	%		(1.9	)%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
66	Residential		2,694			3,247			4,893			2,666			13,500			110
67	Business		3,300			4,034			4,448			3,652			15,434			198
68	Total		5,994			7,281			9,341			6,318			28,934			308
	RETAIL USAGE (KWh/Average Customer)
69	Residential		2,824			3,190			5,009			2,658			13,669			(587	)
70	Business		27,175			32,229			35,768			29,229			124,435			(3,563	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
71	Residential		2,742			3,328			5,027			2,720			13,804			(57	)
72	Business		26,865			32,581			35,777			29,246			124,506			(2,127	)
	ELECTRICITY DEMAND (MW)
73	Native load peak demand		4,404			6,778			7,026			5,443			7,026			(102	)

See Glossary of Terms. Page 11 of 25

Last Updated     2/20/2009

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
74	Nuclear		2,315			1,856			2,455			1,886			8,512			718
75	Coal		2,906			3,227			3,611			3,422			13,166			(176	)
76	Gas, oil and other		1,148			1,516			2,358			1,334			6,356			(347	)
77	Total generation production		6,369			6,599			8,424			6,642			28,034			195
	Purchased power
78	Firm load		740			1,603			2,047			638			5,028			(360	)
79	Marketing and trading		1,196			1,506			1,217			639			4,558			(6,738	)
80	Total purchased power		1,936			3,109			3,264			1,277			9,586			(7,098	)
81	Total energy sources		8,305			9,708			11,688			7,919			37,620			(6,903	)
	POWER PLANT PERFORMANCE
	Capacity Factors
82	Nuclear		92	%		74	%		97	%		74	%		84	%		5	%
83	Coal		76	%		85	%		94	%		89	%		86	%		(1	)%
84	Gas, oil and other		16	%		21	%		32	%		18	%		22	%		(1	)%
85	System average		47	%		49	%		61	%		48	%		51	%		(1	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
86	Nuclear		8			298			27			287			155			(61	)
87	Coal		327			152			64			89			155			(3	)
88	Gas		356			180			76			188			197			(74	)
89	Total		691			630			167			564			507			(138	)

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 12 of 25

Last Updated      2/20/2009

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
90	Palo Verde	$	69.40		$	90.47		$	80.43		$	44.32		$	71.16		$	9.73
91	SP15	$	79.09		$	97.41		$	86.34		$	54.48		$	79.33		$	12.89
	Off-Peak
92	Palo Verde	$	56.39		$	59.20		$	53.47		$	33.39		$	50.61		$	9.37
93	SP15	$	62.35		$	66.73		$	59.33		$	40.10		$	57.13		$	11.14
	WEATHER INDICATORS
	Actual
94	Cooling degree-days		105			1,540			2,533			504			4,682			(479	)
95	Heating degree-days		583			—			—			321			904			(91	)
96	Average humidity		40	%		17	%		33	%		36	%		32	%		2	%
	10-Year Averages
97	Cooling degree-days		96			1,554			2,544			441			4,635			—
98	Heating degree-days		517			28			—			394			939			—
99	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
100	Single-family		2,991			3,732			2,503			1,124			10,350			(11,528	)
101	Multi-family		1,888			2,263			2,129			1,173			7,453			(6,421	)
102	Total		4,879			5,995			4,632			2,297			17,803			(17,949	)
	Arizona Job Growth (c)
103	Payroll job growth (% over prior year)		0.1	%		(0.8	)%		(1.9	)%		(3.6	)%		(1.6	)%		(2.8	)%
104	Unemployment rate (%, seasonally adjusted)		4.1	%		4.4	%		5.5	%		6.4	%		5.1	%		1.3	%

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 13 of 25

EX-99.4

Exhibit 99.4

Last Updated     2/20/2009

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	)		—			(1	)		(2	)		2
4	SunCor		9			1			(1	)		6			14			(36	)
5	El Dorado		(2	)		—			(3	)		(1	)		(6	)		(3	)
6	Parent Company		5			4			—			—			9			6
7	Income From Continuing Operations		15			79			200			4			299			(17	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	SunCor		—			—			7			2			9			(1	)
9	Other		2			—			2			(3	)		(1	)		(2	)
10	Total		2			—			9			(1	)		8			(3	)
11	Net Income	$	17		$	79		$	209		$	3		$	307		$	(20	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
12	Arizona Public Service	$	0.04		$	0.75		$	2.03		$	—		$	2.82		$	0.12
13	Pinnacle West Energy		—			—			—			—			—			—
14	APS Energy Services		(0.01	)		(0.01	)		—			(0.02	)		(0.02	)		0.02
15	SunCor		0.09			0.01			(0.01	)		0.06			0.13			(0.37	)
16	El Dorado		(0.02	)		—			(0.03	)		(0.01	)		(0.06	)		(0.03	)
17	Parent Company		0.04			0.04			—			0.01			0.09			0.06
18	Income From Continuing Operations		0.14			0.79			1.99			0.04			2.96			(0.20	)
	Income (Loss) From Discontinued Operations — Net of Tax
19	SunCor		—			(0.01	)		0.07			0.02			0.09			(0.01	)
20	Other		0.02			—			0.01			(0.03	)		—			(0.01	)
21	Total		0.02			(0.01	)		0.08			(0.01	)		0.09			(0.02	)
22	Net Income	$	0.16		$	0.78		$	2.07		$	0.03		$	3.05		$	(0.22	)
23	BOOK VALUE PER SHARE	$	34.45		$	34.13		$	35.55		$	35.15		$	35.15		$	0.67
	COMMON SHARES OUTSTANDING (Thousands)
24	Average — Diluted		100,622			100,779			100,829			100,963			100,835			825
25	End of Period		100,115			100,290			100,367			100,486			100,486			527

See Glossary of Terms. Page 14 of 25

Last Updated     2/20/2009

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
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
26	Residential	$	246	$	335	$	574	$	263	$	1,418	$	147
27	Business		264		342		425		323		1,355		116
28	Total retail		510		677		999		586		2,773		263
	Wholesale revenue on delivered electricity
29	Traditional contracts		5		9		12		7		34		12
30	Off-system sales		7		10		16		17		49		3
31	Transmission for others		7		7		8		7		29		3
32	Other miscellaneous services		7		8		9		10		33		2
33	Total regulated operating electricity revenues		536		711		1,044		627		2,918		283
	MARKETING AND TRADING
34	Electricity and other commodity sales		28		40		41		29		138		1
35	Total operating electric revenues	$	564	$	751	$	1,085	$	656	$	3,056	$	284
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
36	Residential		2,734		3,287		5,084		2,667		13,771		777
37	Business		3,285		4,004		4,426		3,685		15,400		424
38	Total retail		6,019		7,291		9,510		6,352		29,171		1,201
	Wholesale electricity delivered
39	Traditional contracts		175		262		296		190		923		40
40	Off-system sales		243		310		478		448		1,481		(132	)
41	Retail load hedge management		117		254		529		125		1,026		(564	)
42	Total regulated electricity		6,554		8,117		10,813		7,115		32,601		545
	MARKETING AND TRADING
43	Wholesale sales of electricity		1,923		2,648		3,146		1,681		9,397		(6,958	)
44	Total electric sales		8,477		10,765		13,959		8,796		41,998		(6,413	)

See Glossary of Terms. Page 15 of 25

Last Updated     2/20/2009

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)
45	Deferred fuel and purchased power regulatory asset — beginning balance	$	160		$	118		$	137		$	150		$	160		$	(13	)
46	Deferred fuel and purchased power costs — current period		25			104			69			(9	)		189			(55	)
47	Regulatory disallowance		—			(14	)		—			—			(14	)		(14	)
48	Interest on deferred fuel		2			1			2			2			7			(1	)
49	Amounts recovered through revenues		(69	)		(72	)		(58	)		(32	)		(231	)		34
50	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
51	Electricity and other commodity sales, realized (a)	$	8		$	22		$	6		$	6		$	43		$	(2	)
52	Mark-to-market reversals on realized sales (a) (b)		(8	)		1			(3	)		1			(7	)		7
53	Change in mark-to-market value of forward sales		10			(6	)		(2	)		2			2			2
54	Total gross margin	$	10		$	17		$	1		$	9		$	38		$	7
	By Pinnacle West Entity
55	APS	$	(1	)	$	7		$	—		$	—		$	7		$	(7	)
56	Pinnacle West		11			10			1			9			31			14
57	APS Energy Services		—			—			—			—			—			—
58	Pinnacle West Energy		—			—			—			—			—			—
59	Total gross margin	$	10		$	17		$	1		$	9		$	38		$	7

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 51 and in line 52 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 51 are included in line 52. For example, line 52 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 $43 million on line 51 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 25

Last Updated     2/20/2009

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

See Glossary of Terms. Page 17 of 25

 

Last Updated     2/20/2009

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
74	Nuclear		2,299			1,846			2,218			1,430			7,794			806
75	Coal		3,164			3,265			3,563			3,350			13,342			166
76	Gas, oil and other		1,151			1,518			2,480			1,554			6,703			(681	)
77	Total generation production		6,614			6,629			8,261			6,334			27,839			291
	Purchased power
78	Firm load		278			1,676			2,521			913			5,388			1,098
79	Marketing and trading		2,128			3,097			3,993			2,078			11,296			(7,572	)
80	Total purchased power		2,406			4,773			6,514			2,991			16,684			(6,474	)
81	Total energy sources		9,020			11,402			14,775			9,325			44,523			(6,183	)
	POWER PLANT PERFORMANCE
	Capacity Factors
82	Nuclear		94	%		75	%		89	%		57	%		79	%		8	%
83	Coal		84	%		86	%		93	%		87	%		87	%		0	%
84	Gas, oil and other		16	%		21	%		34	%		21	%		23	%		(2	)%
85	System average		50	%		49	%		61	%		47	%		52	%		1	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
86	Nuclear		57			260			76			470			216			63
87	Coal		203			189			79			164			158			76
88	Gas		267			405			147			264			271			182
89	Total		527			854			302			898			645			321

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 18 of 25

 

Last Updated     2/20/2009

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
90	Palo Verde	$	54.62		$	64.64		$	69.26		$	57.18		$	61.43		$	4.67
91	SP15	$	60.02		$	68.75		$	68.84		$	68.13		$	66.44		$	4.49
	Off-Peak
92	Palo Verde	$	42.06		$	41.46		$	37.03		$	44.39		$	41.24		$	4.15
93	SP15	$	45.86		$	46.14		$	41.23		$	50.71		$	45.99		$	5.38
	WEATHER INDICATORS
	Actual
94	Cooling degree-days		172			1,708			2,686			595			5,161			466
95	Heating degree-days		589			8			—			398			995			144
96	Average humidity		36	%		18	%		30	%		30	%		30	%		2	%
	10-Year Averages
97	Cooling degree-days		96			1,554			2,544			441			4,635			—
98	Heating degree-days		517			28			—			394			939			—
99	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
100	Single-family		7,017			7,447			4,827			2,587			21,878			(6,098	)
101	Multi-family		4,131			3,573			2,687			3,483			13,874			3,767
102	Total		11,148			11,020			7,514			6,070			35,752			(2,331	)
	Arizona Job Growth (c)
103	Payroll job growth (% over prior year)		2.4	%		1.4	%		0.9	%		0.1	%		1.2	%		(3.8	)%
104	Unemployment rate (%, seasonally adjusted)		3.8	%		3.6	%		3.7	%		4.1	%		3.8	%		(0.3	)%

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

See Glossary of Terms. Page 19 of 25

EX-99.5

Exhibit 99.5

Last Updated     2/20/2009

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		—			—		(2	)		(2	)		(4	)		(2	)
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		11			111		184			10			316			89
	Income (Loss) From Discontinued Operations — Net of Tax
8	SunCor		1			1		—			8			10			(7	)
9	Other		1			—		—			—			1			69
10	Total		2			1		—			8			11			62
11	Net Income	$	13		$	112	$	184		$	18		$	327		$	151
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
12	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69		$	0.13		$	2.70		$	0.93
13	Pinnacle West Energy		—			—		—			—			—			0.89
14	APS Energy Services		—			—		(0.02	)		(0.02	)		(0.04	)		(0.02	)
15	SunCor		0.21			0.07		0.17			0.03			0.50			0.10
16	El Dorado		(0.01	)		—		—			(0.01	)		(0.03	)		(0.01	)
17	Parent Company		(0.03	)		0.09		—			(0.03	)		0.03			(1.08	)
18	Income From Continuing Operations		0.11			1.11		1.84			0.10			3.16			0.81
	Income (Loss) From Discontinued Operations — Net of Tax
19	SunCor		0.01			0.02		—			0.08			0.10			(0.07	)
20	Other		0.01			—		—			—			0.01			0.71
21	Total		0.02			0.02		—			0.08			0.11			0.64
22	Net Income	$	0.13		$	1.13	$	1.84		$	0.18		$	3.27		$	1.45
23	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07		$	34.48		$	34.48		$	(0.10	)
	COMMON SHARES OUTSTANDING (Thousands)
24	Average — Diluted		99,449			99,640		99,973			100,474			100,010			3,420
25	End of Period		99,187			99,284		99,648			99,959			99,959			902

See Glossary of Terms. Page 20 of 25

Last Updated     2/20/2009

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
26	Residential	$	202	$	337	$	490	$	242		$	1,271	$	192
27	Business		233		333		371		302			1,239		198
28	Total retail		435		670		861		544			2,510		390
	Wholesale revenue on delivered electricity
29	Traditional contracts		6		7		12		(3	)		22		(1	)
30	Off-system sales		12		22		—		12			46		6
31	Transmission for others		6		6		7		7			26		—
32	Other miscellaneous services		7		8		7		9			31		3
33	Total regulated operating electricity revenues		466		713		887		569			2,635		398
	MARKETING AND TRADING
34	Electricity and other commodity sales		28		40		41		28			137		(43	)
35	Total operating electric revenues	$	494	$	753	$	928	$	597		$	2,772	$	355
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
36	Residential		2,419		3,284		4,720		2,571			12,994		771
37	Business		3,199		3,971		4,222		3,584			14,976		722
38	Total retail		5,618		7,255		8,942		6,155			27,970		1,493
	Wholesale electricity delivered
39	Traditional contracts		215		181		321		166			883		33
40	Off-system sales		672		218		219		504			1,613		277
41	Retail load hedge management		178		622		450		340			1,590		(1,420	)
42	Total regulated electricity		6,683		8,276		9,932		7,165			32,056		383
	MARKETING AND TRADING
43	Wholesale sales of electricity		3,962		3,862		4,841		3,690			16,355		(7,217	)
44	Total electric sales		10,645		12,138		14,773		10,855			48,411		(6,834	)

See Glossary of Terms. Page 21 of 25

Last Updated     2/20/2009

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)
45	Deferred fuel and purchased power regulatory asset — beginning balance	$	173		$	169		$	175		$	209		$	173		$	173
46	Deferred fuel and purchased power costs — current period		13			78			134			19			244			73
47	Regulatory disallowance		—			—			—			—			—			—
48	Interest on deferred fuel		1			3			2			2			8			6
49	Amounts recovered through revenues		(18	)		(75	)		(102	)		(70	)		(265	)		(265	)
50	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
51	Electricity and other commodity sales, realized (a)	$	7		$	14		$	5		$	16		$	45		$	(9	)
52	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)		(6	)		(14	)		2
53	Change in mark-to-market value of forward sales		1			—			(3	)		(3	)		—			(20	)
54	Total gross margin	$	7		$	13		$	1		$	7		$	31		$	(27	)
	By Pinnacle West Entity
55	APS	$	8		$	2		$	(3	)	$	5		$	14		$	20
56	Pinnacle West		(1	)		11			4			2			17			(42	)
57	APS Energy Services		—			—			—			—			—			—
58	Pinnacle West Energy		—			—			—			—			—			(5	)
59	Total gross margin	$	7		$	13		$	1		$	7		$	31		$	(27	)

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 51 and in line 52 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 51 are included in line 52. For example, line 52 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 $45 million on line 51 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 25

Last Updated     2/20/2009

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

See Glossary of Terms. Page 23 of 25

Last Updated     2/20/2009

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

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 24 of 25

Last Updated     2/20/2009

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
90	Palo Verde	$	53.78		$	54.63		$	65.89		$	52.72		$	56.76		$	(9.64	)
91	SP15	$	58.34		$	55.39		$	71.89		$	62.16		$	61.95		$	(10.99	)
	Off-Peak
92	Palo Verde	$	41.92		$	28.38		$	38.45		$	39.62		$	37.09		$	(10.46	)
93	SP15	$	44.79		$	27.43		$	43.94		$	46.27		$	40.61		$	(11.45	)
	WEATHER INDICATORS
	Actual
94	Cooling degree-days		43			1,740			2,455			457			4,695			32
95	Heating degree-days		464			4			—			383			851			85
96	Average humidity		28	%		18	%		33	%		33	%		28	%		(6	)%
	10-Year Averages
97	Cooling degree-days		96			1,554			2,544			441			4,635			—
98	Heating degree-days		517			28			—			394			939			—
99	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
100	Single-family		8,716			8,883			5,969			4,408			27,976			(15,282	)
101	Multi-family		2,887			2,976			3,215			1,029			10,107			2,329
102	Total		11,603			11,859			9,184			5,437			38,083			(12,953	)
	Arizona Job Growth (c)
103	Payroll job growth (% over prior year)		6.2	%		5.3	%		4.6	%		4.0	%		5.0	%		(0.4	)%
104	Unemployment rate (%, seasonally adjusted)		4.3	%		4.1	%		4.0	%		3.9	%		4.1	%		(0.6	)%

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 25

EX-99.6

Exhibit 99.6

Last Updated
2/20/09

Pinnacle West Capital Corporation
Earnings Variance Explanations
For Three-Month and Twelve-Month Periods Ended December 31, 2008 and 2007

     The following discussion includes earnings variance explanations for Pinnacle West Capital Corporation (“Pinnacle West”) for the three months and twelve months ended December 31, 2008 and 2007. We suggest that this discussion be read in connection with the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 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 (loss) from continuing operations for our regulated electricity and real estate segments and reconciles those amounts to our consolidated net income (loss) (dollars in millions):

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2008			2007			2008			2007
Regulated electricity segment	$	(17	)	$	(3	)	$	256		$	274
Real estate segment (a)		(36	)		6			(49	)		14
All other (b)		4			1			7			11
Income (loss) from continuing operations		(49	)		4			214			299
Income (loss) from discontinued operations — net of tax:
Real estate segment (c)		2			2			23			9
All other (b)		8			(3	)		5			(1	)
Net income (loss)	$	(39	)	$	3		$	242		$	307

(a)	SunCor’s net loss in 2008 included a $32 million after-tax real estate impairment charge.
(b)	Includes activities related to marketing and trading, APSES, Silverhawk and El Dorado. Income from discontinued operations for 2008 is primarily related to the resolution of certain tax issues associated with the sale of Silverhawk in 2005. The 2007 loss is primarily related to an APSES project. None of these segments is a reportable segment.
(c)	Primarily relates to sales of commercial properties.

Last Updated
2/20/09

PINNACLE WEST CONSOLIDATED — RESULTS OF OPERATIONS

Operating Results — Three-month period ended December 31, 2008 compared with three-month period ended December 31, 2007

     Our consolidated net loss for the three months ended December 31, 2008 was $39 million, compared with net income of $3 million for the comparable prior-year period. The major factors that increased (decreased) our net income for the three-month comparison are summarized in the following table (dollars in millions):

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment:
Transmission rate increases (including related retail rates)	$	9		$	5
Lower mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals		(12	)		(7	)
Higher interest expense, net of capitalized financing costs, primarily due to higher rates on certain APS pollution control bonds and higher short-term debt balances		(12	)		(7	)
Higher taxes other than income taxes primarily due to changes in property tax valuation assessments		(7	)		(4	)
Miscellaneous items, net		(6	)		(1	)
Decrease in regulated electricity segment net income		(28	)		(14	)
Real estate impairment charge		(53	)		(32	)
Lower real estate contribution primarily due to lower land parcel and home sales resulting from the weak real estate market		(16	)		(10	)
Other miscellaneous items, net		4			3
Decrease in income from continuing operations	$	(93	)		(53	)
Increase in other income from discontinued operations primarily related to the resolution in 2008 of certain tax issues associated with the sale of Silverhawk in 2005					11
Decrease in net income				$	(42	)

Operating Results — Twelve-month period ended December 31, 2008 compared with twelve-month period ended December 31, 2007

     Our consolidated net income decreased approximately $65 million, to $242 million in 2008 from $307 million in 2007. The major factors that increased (decreased) our net income for the year-to-year comparison are summarized in the following table (dollars in millions):

Last Updated
2/20/09

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment:
Impacts of retail rate increase effective July 1, 2007 and transmission rate increases:
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 increases (including related retail rates)		31			19
Lower mark-to-market valuations of fuel and purchased power contracts related to changes in market prices, net of related PSA deferrals		(14	)		(9	)
Regulatory disallowance in 2007		14			8
Higher retail sales primarily due to customer growth, excluding weather effects, partially offset by lower average usage		21			13
Effects of weather on retail sales		(43	)		(26	)
Operations and maintenance expense increases primarily due to:
Customer service and other costs, including distribution system reliability		(30	)		(18	)
Generation costs, including more planned maintenance		(18	)		(11	)
Employee severance costs		(9	)		(5	)
Higher depreciation and amortization primarily due to increased utility plant in service		(18	)		(11	)
Income tax benefits related to prior years resolved in 2008		—			30
Income tax benefits related to prior years resolved in 2007		—			(13	)
Higher interest expense, net of capitalized financing costs, primarily due to higher rates on certain APS pollution control bonds and higher short-term debt balances		(15	)		(9	)
Miscellaneous items, net		1			5
Decrease in regulated electricity segment net income		(65	)		(18	)
Lower real estate segment income from continuing operations primarily due to:
Real estate impairment charge		(53	)		(32	)
Lower land parcel sales resulting from the weak real estate market		(40	)		(24	)
Lower sales of residential property resulting from the weak real estate market		(4	)		(2	)
Higher other costs		(7	)		(5	)
Lower marketing and trading contribution primarily due to lower sales volumes		(16	)		(10	)
Other miscellaneous items, net		14			6
Decrease in income from continuing operations	$	(171	)		(85	)
Increase in real estate segment income from discontinued operations primarily related to a 2008 commercial property sale					14
Increase in other income from discontinued operations primarily related to the resolution in 2008 of certain tax issues associated with the sale of Silverhawk in 2005					6
Decrease in net income				$	(65	)

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

	THREE MONTHS ENDED
	DECEMBER 31,						Increase (Decrease)
	2008			2007			Amount			Percent
Operating Revenues
Regulated electricity segment	$	634,756		$	627,096		$	7,660			1.2	%	B
Real estate segment		27,480			40,924			(13,444	)		32.9	%	W
Marketing and trading		9,274			29,149			(19,875	)		68.2	%	W
Other revenues		14,905			11,905			3,000			25.2	%	B
Total		686,415			709,074			(22,659	)		3.2	%	W
Operating Expenses
Regulated electricity segment fuel and purchased power		267,198			259,991			7,207			2.8	%	W
Real estate segment operations		30,219			39,644			(9,425	)		23.8	%	B
Real estate impairment charge		53,250			—			53,250			100.0	%	W
Marketing and trading fuel and purchased power		1,443			19,589			(18,146	)		92.6	%	B
Operations and maintenance		209,797			205,579			4,218			2.1	%	W
Depreciation and amortization		98,434			95,536			2,898			3.0	%	W
Taxes other than income taxes		30,510			23,802			6,708			28.2	%	W
Other expenses		13,090			10,388			2,702			26.0	%	W
Total		703,941			654,529			49,412			7.5	%	W
Operating Income		(17,526	)		54,545			(72,071	)		132.1	%	W
Other
Allowance for equity funds used during construction		2,425			6,321			(3,896	)		61.6	%	W
Other income		2,028			12,718			(10,690	)		84.1	%	W
Other expense		(9,523	)		(12,183	)		2,660			21.8	%	B
Total		(5,070	)		6,856			(11,926	)		173.9	%	W
Interest Expense
Interest charges		58,710			53,417			5,293			9.9	%	W
Capitalized interest		(4,227	)		(7,608	)		3,381			44.4	%	W
Total		54,483			45,809			8,674			18.9	%	W
Income (Loss) From Continuing Operations Before Income Taxes		(77,079	)		15,592			(92,671	)		594.3	%	W
Income Taxes		(28,373	)		11,124			(39,497	)		355.1	%	B
Income (Loss) From Continuing Operations		(48,706	)		4,468			(53,174	)		1190.1	%	W
Income (Loss) From Discontinued Operations
Net of Income Taxes		9,856			(1,557	)		11,413			733.0	%	B
Net Income (Loss)	$	(38,850	)	$	2,911		$	(41,761	)		1434.6	%	W
Weighted-Average Common Shares Outstanding — Basic		100,836			100,420			416			0.4	%
Weighted-Average Common Shares Outstanding — Diluted		100,836			100,963			(127	)		0.1	%
Earnings Per Weighted-Average Common Share Outstanding
Income (loss) from continuing operations — basic	$	(0.48	)	$	0.04		$	(0.52	)		1300.0	%	W
Net income (loss) — basic	$	(0.39	)	$	0.03		$	(0.42	)		1400.0	%	W
Income (loss) from continuing operations — diluted	$	(0.48	)	$	0.04		$	(0.52	)		1300.0	%	W
Net income (loss) — diluted	$	(0.39	)	$	0.03		$	(0.42	)		1400.0	%	W

B — Better

W — Worse

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

	TWELVE MONTHS ENDED
	DECEMBER 31,						Increase (Decrease)
	2008			2007			Amount			Percent
Operating Revenues
Regulated electricity segment	$	3,127,383		$	2,918,163		$	209,220			7.2	%	B
Real estate segment		131,067			212,586			(81,519	)		38.3	%	W
Marketing and trading		66,897			138,247			(71,350	)		51.6	%	W
Other revenues		41,729			48,018			(6,289	)		13.1	%	W
Total		3,367,076			3,317,014			50,062			1.5	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		1,284,116			1,140,923			143,193			12.6	%	W
Real estate segment operations		149,125			192,972			(43,847	)		22.7	%	B
Real estate impairment charge		53,250			—			53,250			100.0	%	W
Marketing and trading fuel and purchased power		45,572			100,462			(54,890	)		54.6	%	B
Operations and maintenance		807,852			728,340			79,512			10.9	%	W
Depreciation and amortization		390,358			372,102			18,256			4.9	%	W
Taxes other than income taxes		125,336			128,210			(2,874	)		2.2	%	B
Other expenses		34,171			38,925			(4,754	)		12.2	%	B
Total		2,889,780			2,701,934			187,846			7.0	%	W
Operating Income		477,296			615,080			(137,784	)		22.4	%	W
Other
Allowance for equity funds used during construction		18,636			21,195			(2,559	)		12.1	%	W
Other income		12,078			24,694			(12,616	)		51.1	%	W
Other expense		(31,576	)		(25,857	)		(5,719	)		22.1	%	W
Total		(862	)		20,032			(20,894	)		104.3	%	W
Interest Expense
Interest charges		216,290			208,521			7,769			3.7	%	W
Capitalized interest		(18,820	)		(23,063	)		4,243			18.4	%	W
Total		197,470			185,458			12,012			6.5	%	W
Income From Continuing Operations Before Income Taxes		278,964			449,654			(170,690	)		38.0	%	W
Income Taxes		65,407			150,910			(85,503	)		56.7	%	B
Income From Continuing Operations		213,557			298,744			(85,187	)		28.5	%	W
Income From Discontinued Operations
Net of Income Taxes		28,568			8,399			20,169			240.1	%	B
Net Income	$	242,125		$	307,143		$	(65,018	)		21.2	%	W
Weighted-Average Common Shares Outstanding — Basic		100,691			100,256			435			0.4	%
Weighted-Average Common Shares Outstanding — Diluted		100,965			100,835			130			0.1	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	2.12		$	2.98		$	(0.86	)		28.9	%	W
Net income — basic	$	2.40		$	3.06		$	(0.66	)		21.6	%	W
Income from continuing operations — diluted	$	2.12		$	2.96		$	(0.84	)		28.4	%	W
Net income — diluted	$	2.40		$	3.05		$	(0.65	)		21.3	%	W

B — Better

W — Worse

EX-99.7

Exhibit 99.7

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-99.8

Exhibit 99.8

FOR IMMEDIATE RELEASE		February 20, 2009
Media Contact:	Alan Bunnell, (602) 250-3376	Page 1 of 2
Analyst Contacts:	Rebecca Hickman, (602) 250-5668
	Lisa Malagon, (602) 250-5671
Web site:	www.pinnaclewest.com

PINNACLE WEST REPORTS 2008 FOURTH-QUARTER LOSS
Real Estate Write-Down Dominates Consolidated Results

PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported a consolidated net loss for the quarter ended December 31, 2008, of $38.9 million, or $0.39 per diluted share of common stock. This result compares with consolidated net income of $2.9 million, or $0.03 per diluted share, for the same quarter a year ago. The lower quarterly results were due largely to real estate impairment charges of $32.5 million, net of tax, for SunCor, the Company’s real estate subsidiary.

Arizona Public Service (APS), the Company’s principal subsidiary, reported a 2008 fourth-quarter net loss of $16.4 million, compared with net income of $0.3 million for the same period a year ago. The utility’s 2008 results were negatively impacted by higher expenditures for continuing infrastructure additions and improvements and lower mark-to-market valuations of fuel and purchased power contracts.

“Our fourth-quarter results reflect the need to continue to meet our customers’ electric demand in the future” said Chairman Bill Post. “While our growth rate has dropped significantly, we still ended the year with more than 10,000 new customers.”

Earlier this year, APS filed a comprehensive long-term resource plan with the Arizona Corporation Commission to address the future energy needs of Arizona. “Although our economy has been damaged by the real estate downturn and national recession, we must stay diligent in our focus to ensure Arizona has the energy resources to meet our future needs,” said APS CEO Don Brandt. “We are working aggressively to minimize our costs while maintaining our electric reliability.”

For the year 2008 as a whole, Pinnacle West reported 2008 consolidated net income of $242.1 million, or $2.40 per diluted share, compared with 2007 net income of $307.1 million, or $3.05 per diluted share.

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

PINNACLE WEST REPORTS 2008 EARNINGS	February 20, 2009
	Page 2 of 2

Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s fourth-quarter and year-end results, as well as recent developments at 12:00 noon (ET), today, Friday, February 20, 2009. 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 81428217. A replay of the call also will be available until 11:55 p.m. (ET), Friday, February 27, 2009, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same Conference ID number as above.

Pinnacle West is a Phoenix-based company with consolidated assets of about $11.6 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.

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

	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	DECEMBER 31,						DECEMBER 31,
	2008			2007			2008			2007
Operating Revenues
Regulated electricity segment	$	634,756		$	627,096		$	3,127,383		$	2,918,163
Real estate segment		27,480			40,924			131,067			212,586
Marketing and trading		9,274			29,149			66,897			138,247
Other revenues		14,905			11,905			41,729			48,018
Total		686,415			709,074			3,367,076			3,317,014
Operating Expenses
Regulated electricity segment fuel and purchased power		267,198			259,991			1,284,116			1,140,923
Real estate segment operations		30,219			39,644			149,125			192,972
Real estate impairment charge		53,250			—			53,250			—
Marketing and trading fuel and purchased power		1,443			19,589			45,572			100,462
Operations and maintenance		209,797			205,579			807,852			728,340
Depreciation and amortization		98,434			95,536			390,358			372,102
Taxes other than income taxes		30,510			23,802			125,336			128,210
Other expenses		13,090			10,388			34,171			38,925
Total		703,941			654,529			2,889,780			2,701,934
Operating Income		(17,526	)		54,545			477,296			615,080
Other
Allowance for equity funds used during construction		2,425			6,321			18,636			21,195
Other income		2,028			12,718			12,078			24,694
Other expense		(9,523	)		(12,183	)		(31,576	)		(25,857	)
Total		(5,070	)		6,856			(862	)		20,032
Interest Expense
Interest charges		58,710			53,417			216,290			208,521
Capitalized interest		(4,227	)		(7,608	)		(18,820	)		(23,063	)
Total		54,483			45,809			197,470			185,458
Income (Loss) From Continuing Operations Before Income Taxes		(77,079	)		15,592			278,964			449,654
Income Taxes		(28,373	)		11,124			65,407			150,910
Income (Loss) From Continuing Operations		(48,706	)		4,468			213,557			298,744
Income (Loss) From Discontinued Operations
Net of Income Taxes		9,856			(1,557	)		28,568			8,399
Net Income (Loss)	$	(38,850	)	$	2,911		$	242,125		$	307,143
Weighted-Average Common Shares Outstanding — Basic		100,836			100,420			100,691			100,256
Weighted-Average Common Shares Outstanding — Diluted		100,836			100,963			100,965			100,835
Earnings Per Weighted-Average Common Share Outstanding
Income (loss) from continuing operations — basic	$	(0.48	)	$	0.04		$	2.12		$	2.98
Net income (loss) — basic	$	(0.39	)	$	0.03		$	2.40		$	3.06
Income (loss) from continuing operations — diluted	$	(0.48	)	$	0.04		$	2.12		$	2.96
Net income (loss) — diluted	$	(0.39	)	$	0.03		$	2.40		$	3.05

EX-99.9

Exhibit 99.9

Pinnacle West Capital Corporation

Major Factors Affecting Consolidated Earnings Outlook
for Year Ending December 31, 2009
Compared with Year Ended December 31, 2008
(Earnings Per Diluted Share Outstanding)

2008 net income	$	2.40
Adjustments:
SunCor real estate impairment charge		0.32
Income tax credits related to prior years		(0.30	)
Severance costs related to workforce reductions		0.08
Income from discontinued operations for resolution a tax issue related to 2005 Silverhawk plant sale		(0.08	)
2008 on-going earnings		2.42
Projected increases (decreases) in 2009:
Regulated electricity segment gross margin		0.35 - 0.45
(revenues net of fuel and purchased power costs, excluding Renewable Energy Surcharge), including:
retail interim rate increase for full year, transmission revenue increases, higher fuel and purchased power costs (net of deferrals) and minimal weather- normalized retail sales growth
Lower marketing and trading gross margin (revenues net of fuel and purchased power costs)		(0.14	)
Increased operations and maintenance expense		(0.20) - (0.30	)
(excluding Renewable Energy Standard and severance costs) related primarily to fossil plant maintenance and outages, pension and other post- retirement benefits, partially offset by cost efficiency efforts
Costs related to utility capital expenditures		(0.30) - (0.35	)
(such as depreciation, property taxes and interest expense, net of capitalized financing costs)
Miscellaneous other items — net		0.10 - 0.15
Estimated 2009 earnings — a reasonable range around	$	2.30
(excluding potential real estate results)

EX-99.10

Exhibit 99.10

Pinnacle West Capital Corporation

Major Factors Affecting Consolidated Earnings Outlook
for Year Ending December 31, 2010
Compared with Year Ending December 31, 2009
(Earnings Per Diluted Share Outstanding)

Estimated 2009 earnings — a reasonable range around	$	2.30
(excluding potential real estate results)
Projected increases (decreases) in 2010:
Retail base rate revenue increase from general rate		1.40
case in excess of interim revenues
Other regulated electricity segment gross margin		0.00 - 0.10
(revenues net of fuel and purchased power costs excluding Renewable Energy Surcharge), including:
transmission revenue increases, higher fuel and purchased power costs (net of deferrals) and minimal weather-normalized retail sales growth
Increased operations and maintenance expense		(0.15) - (0.25	)
(excluding Renewable Energy Standard costs) primarily due to inflation
Costs related to utility capital expenditures		(0.30) - (0.35	)
(such as depreciation, property taxes and interest expense, net of capitalized financing costs)
Miscellaneous other items — net		(0.10) - (0.15	)
Estimated 2010 earnings — a reasonable range around	$	3.00
(excluding potential real estate results)