Long-Term Debt and Liquidity Matters (Tables)

12 Months Ended

Dec. 31, 2013

Long-Term Debt and Liquidity Matters

Components of long-term debt on the Consolidated Balance Sheets

The following table presents the components of long-term debt on the Consolidated Balance Sheets outstanding at December 31, 2013 and 2012 (dollars in thousands):

	Maturity	Interest	December 31,
	Dates (a)	Rates	2013			2012
APS
Pollution Control Bonds:
Variable	2029-2038	(b)	$	75,580		$	75,580
Fixed	2024-2034	1.25%-6.00%	426,125			490,275
Total Pollution Control Bonds			501,705			565,855
Senior unsecured notes	2014-2042	4.50%-8.75%	2,675,000			2,575,000
Palo Verde sale leaseback lessor notes	2015	8.00%	38,869			65,547
Unamortized discount			(8,732		)	(9,486		)
Unamortized premium			5,047			—
Total APS long-term debt			3,211,889			3,196,916
Less current maturities	(d)		540,424			122,828
Total APS long-term debt less current maturities			2,671,465			3,074,088
Pinnacle West
Term loan	2015	(c)	125,000			125,000
TOTAL LONG-TERM DEBT LESS CURRENT MATURITIES			$	2,796,465		$	3,199,088

(a) This schedule does not reflect the timing of redemptions that may occur prior to maturities.

(b) The weighted-average rate for the variable rate pollution control bonds was 0.03%-0.06% at December 31, 2013 and 0.13%-0.15% at December 31, 2012.

(c) The weighted-average interest rate was 1.269% at December 31, 2013 and 1.312% at December 31, 2012.

(d) Current maturities include $215 million of pollution control bonds expected to be remarketed in 2014 and $300 million in senior unsecured notes that mature in 2014.

Principal payments due on Pinnacle West's and APS's total long-term debt

The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in millions):

Year	Consolidated Pinnacle West		Consolidated APS
2014	$	540	$	540
2015	470		345
2016	358		358
2017	—		—
2018	32		32
Thereafter	1,940		1,940
Total	$	3,340	$	3,215

Schedule of estimated fair value of long-term debt, including current maturities

The following table represents the estimated fair value of our long-term debt, including current maturities (dollars in millions):

	As of December 31, 2013				As of December 31, 2012
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Pinnacle West	$	125	$	125	$	125	$	125
APS	3,212		3,454		3,197		3,750
Total	$	3,337	$	3,579	$	3,322	$	3,875