Other Income and Other Expense (APSC)

6 Months Ended

Jun. 30, 2011

Other Income and Other Expense

11. Other Income and Other Expense

The following table provides detail of other income and other expense for the three and six months ended June 30, 2011 and 2010 (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Other income:
Interest income	$	543		$	635		$	935		$	1,572
Investment gains — net	12			—			1,307			—
Miscellaneous	2			308			5			320
Total other income	$	557		$	943		$	2,247		$	1,892
Other expense:
Non-operating costs	$	(1,629	)	$	(1,237	)	$	(3,119	)	$	(3,084	)
Investment losses — net	—			(3,561		)	—			(2,339		)
Miscellaneous	(1,557		)	(852		)	(1,808		)	(1,753		)
Total other expense	$	(3,186	)	$	(5,650	)	$	(4,927	)	$	(7,176	)

ARIZONA PUBLIC SERVICE COMPANY

Other Income and Other Expense

S-2.Other Income and Other Expense

The following table provides detail of APS’s other income and other expense for the three and six months ended June 30, 2011 and 2010 (dollars in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Other income:
Interest income	$	89		$	143		$	219		$	211
Investment gains — net	268			—			1,418			—
Miscellaneous	876			1,684			1,574			2,234
Total other income	$	1,233		$	1,827		$	3,211		$	2,445
Other expense:
Non-operating costs (a)	$	(2,400	)	$	(1,751	)	$	(4,214	)	$	(3,708	)
Asset dispositions	—			—			(823		)	—
Investment losses — net	—			(2,700		)	—			(1,535		)
Miscellaneous	(2,251		)	(1,640		)	(3,206		)	(3,309		)
Total other expense	$	(4,651	)	$	(6,091	)	$	(8,243	)	$	(8,552	)

(a) As defined by FERC, includes below-the-line non-operating utility expense (items excluded from utility rate recovery).