Exhibit 12.3

PINNACLE WEST CAPITAL CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)

	Six Months
	Ended
	June 30,			Twelve Months Ended December 31,
	2009			2008		2007		2006		2005		2004
Earnings:
Income (loss) from continuing operations	$	(82,441	)	$	223,613	$	298,744	$	316,265	$	227,288	$	242,887
Income taxes		(58,574	)		71,918		150,910		155,855		129,533		133,771
Fixed charges		126,581			241,724		235,705		225,119		214,430		214,803
Total earnings	$	(14,434	)	$	537,255	$	685,359	$	697,239	$	571,251	$	591,461
Fixed Charges:
Interest expense	$	114,757		$	216,038	$	208,521	$	196,826	$	185,087	$	183,527
Estimated interest portion of annual rents		11,824			25,686		27,184		28,293		29,343		31,276
Total fixed charges	$	126,581		$	241,724	$	235,705	$	225,119	$	214,430	$	214,803
Preferred Stock Dividend Requirements:
Income before income taxes	$	(141,015	)	$	295,531	$	449,654	$	472,120	$	356,821	$	376,658
Net income from continuing operations		(82,441	)		223,613		298,744		316,265		227,288		242,887
Ratio of income before income taxes to net income		1.710			1.322		1.505		1.493		1.570		1.551
Preferred stock dividends		—			—		—		—		—		—
Preferred stock dividend requirements — ratio (above) times preferred stock dividends	$	—		$	—	$	—	$	—	$	—	$	—
Fixed Charges and Preferred Stock Dividend Requirements:
Fixed charges	$	126,581		$	241,724	$	235,705	$	225,119	$	214,430	$	214,803
Preferred stock dividend requirements		—			—		—		—		—		—
Total	$	126,581		$	241,724	$	235,705	$	225,119	$	214,430	$	214,803
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements (rounded down)		(0.11	)		2.22		2.90		3.09		2.66		2.75