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): July 23, 2002


                         ARIZONA PUBLIC SERVICE COMPANY
             (Exact name of registrant as specified in its charter)


           Arizona                      1-4473                  86-0011170
(State or other jurisdiction         (Commission              (IRS Employer
      of incorporation)              File Number)         Identification Number)


400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona            85004
        (Address of principal executive offices)                  (Zip Code)


                                 (602) 250-1000
              (Registrant's telephone number, including area code)


                                      NONE
          (Former name or former address, if changed since last report)

ITEM 5. OTHER EVENTS.

                     ARIZONA ELECTRIC INDUSTRY RESTRUCTURING

     As previously  reported,  the Arizona  Corporation  Commission  (the "ACC")
issued a procedural  order  stating that hearings in a  consolidated  ACC docket
would begin on June 17,  2002 on various  issues  ("Track A Issues"),  including
Arizona  Public  Service  Company's  (the  "Company")  planned   divestiture  of
generation assets to Pinnacle West Energy Corporation (Pinnacle West Energy) and
associated market and affiliate issues.

     See Note 5 of Notes to  Condensed  Financial  Statements  in the  Company's
Report on Form 10-Q for the fiscal  quarter ended March 31, 2002 for  additional
information  about the  consolidated  docket,  a  comprehensive  1999 Settlement
Agreement  approved by the ACC among the Company and various  parties related to
the  implementation  of retail electric  competition in Arizona,  and the retail
electric competition rules adopted by the ACC.

     On  July  23,  2002  an ACC  Administrative  Law  Judge  ("ALJ")  issued  a
recommendation on Track A Issues in the consolidated docket. Among other things,
the ALJ recommends that:

     *    the ability of the Company to transfer its generation assets be stayed
          until  the ACC  determines  that the  wholesale  market  is  "workably
          competitive,"  and until at least July 1, 2004,  at which time the ACC
          would reassess the appropriateness and timing of divestiture;

     *    the requirement that 100 percent of power purchased for standard offer
          service be  acquired  from the  competitive  market,  with at least 50
          percent  through a competitive  bid process,  be stayed  indefinitely;
          and,

     *    upon  implementation of the outcome of the competitive bidding process
          ("Track B  Issues"),  the Company  would  acquire,  at a minimum,  any
          required  power not  produced  by its  owned  generation  through  the
          competitive procurement process developed in the Track B proceeding.

     The ALJ also  recommended  that if the  Company  wishes to acquire  certain
generation  assets from Pinnacle West Energy, as discussed in the Company's July
11, 2002 letter to the ACC, the Company should file appropriate  applications on
this matter for ACC consideration.  See the Company's Current Report on Form 8-K
dated July 11, 2002.

     The ALJ also recommended that the ACC Staff open a rulemaking to review the
Retail  Electric  Competition  Rules  in  light of the  other  decisions  in the
recommendation  and that an  Electric  Competition  Advisory  Group be formed to
facilitate   communication   among  the  ACC  staff,   stakeholders  and  market
participants.

     The Company expects to file exceptions to the  recommendations by August 1,
2002.  It has not been  determined  when the ACC may  consider  and rule on this
recommendation.

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                                   SIGNATURES

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


                                        ARIZONA PUBLIC SERVICE COMPANY
                                        (Registrant)


Dated: July 24, 2002                    By: Barbara M. Gomez
                                            ------------------------------------
                                            Barbara M. Gomez
                                            Treasurer

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