e8vk

-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AC0ogZLeeN2i2D8gnjC1PMXMNxBb9/gI5QvOsDOlwXg8zPduL//rar/mv+pei+Fy Wra0XN71pqoiEZN/crjx/w== 0000950124-06-002590.txt : 20060509 0000950124-06-002590.hdr.sgml : 20060509 20060509080217 ACCESSION NUMBER: 0000950124-06-002590 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20060331 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060509 DATE AS OF CHANGE: 20060509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PINNACLE WEST CAPITAL CORP CENTRAL INDEX KEY: 0000764622 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 860512431 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-08962 FILM NUMBER: 06818700 BUSINESS ADDRESS: STREET 1: 400 NORTH FIFTH STREET STREET 2: . CITY: PHOENIX STATE: AZ ZIP: 85004 BUSINESS PHONE: 6023792500 MAIL ADDRESS: STREET 1: 400 NORTH FIFTH STREET STREET 2: . CITY: PHOENIX STATE: AZ ZIP: 85004 FORMER COMPANY: FORMER CONFORMED NAME: AZP GROUP INC DATE OF NAME CHANGE: 19870506 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ARIZONA PUBLIC SERVICE CO CENTRAL INDEX KEY: 0000007286 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC & OTHER SERVICES COMBINED [4931] IRS NUMBER: 860011170 STATE OF INCORPORATION: AZ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-04473 FILM NUMBER: 06818701 BUSINESS ADDRESS: STREET 1: 400 N FIFTH ST STREET 2: P O BOX 53999 CITY: PHOENIX STATE: AZ ZIP: 85004 BUSINESS PHONE: 6022501000 8-K 1 p72248e8vk.htm 8-K e8vk

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): March 31, 2006


	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 (17CFR 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.

TABLE OF CONTENTS


	Page
Item 2.02 Results of Operations and Financial Condition		2
Item 7.01 Regulation FD Disclosure		3
Item 9.01 Financial Statements and Exhibits		4
Signatures		5
Exhibit 99.1
Exhibit 99.2
Exhibit 99.3
Exhibit 99.4
Exhibit 99.5
Exhibit 99.6
Exhibit 99.7
Exhibit 99.8

Item 2.02. Results of Operations and Financial Condition

Certain of the Information referenced in Item 7.01 below relates to Pinnacle West Capital Corporation’s (“Pinnacle West” or the “Company”) results of operations for its fiscal quarter ended March 31, 2006. This Information is attached hereto as Exhibits 99.2, 99.3, and 99.8.

On May 9, 2006, the Company issued a press release regarding its financial results for its fiscal quarter ended March 31, 2006. A copy of the press release is attached hereto as Exhibit 99.8.

The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3, and 99.8 of this report relating to the Company’s financial results for its fiscal quarter ended March 31, 2006 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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.

Item 9.01. Financial Statements and Exhibits

(c) Exhibits.


Exhibit
No.	Registrant(s)	Description

99.1	Pinnacle West Arizona Public Service Company (“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 periods ended March 31, 2006 and 2005.

99.3	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.

99.4	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.

99.5	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.

99.6	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.

99.7	Pinnacle West APS	Glossary of Terms.

99.8	Pinnacle West APS	Earnings News Release issued on May 9, 2006.

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: May 9, 2006	By:	/s/ Barbara M. Gomez

		Barbara M. Gomez
		Vice President and Treasurer

	ARIZONA PUBLIC SERVICE COMPANY (Registrant)

Dated: May 9, 2006	By:	/s/ Barbara M. Gomez

		Barbara M. Gomez
		Vice President and Treasurer

EX-99.1 2 p72248exv99w1.htm EXHIBIT 99.1 exv99w1

Exhibit 99.1

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005

List of Contents

2006 First Quarter Summary

2006 Year-to-Date

2005 by Quarter

2004 by Quarter

2003 by Quarter

Quarters may not sum to totals due to rounding.

Certain current and prior-year amounts have been reclassified to conform to current-period presentation.

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/2006Q1QuarStatsGloss.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 3 p72248exv99w2.htm EXHIBIT 99.2 exv99w2

Exhibit 99.2

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006			2005			Incr (Decr)
		EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)

	1	Arizona Public Service	$	(6	)	$	27		$	(33	)
	2	Pinnacle West Energy		—			(21	)		21
	3	APS Energy Services		1			(3	)		4
	4	SunCor		21			9			12
	5	El Dorado		(1	)		(1	)		—
	6	Parent Company		(3	)		19			(22	)

	7	Income From Continuing Operations		12			30			(18	)
	8	Loss From Discontinued Operations — Net of Tax		—			(6	)		6
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—

	10	Net Income	$	12		$	24		$	(12	)


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	(0.06	)	$	0.30		$	(0.36	)
	12	Pinnacle West Energy		—			(0.23	)		0.23
	13	APS Energy Services		0.01			(0.04	)		0.05
	14	SunCor		0.21			0.09			0.12
	15	El Dorado		(0.01	)		(0.01	)		—
	16	Parent Company		(0.03	)		0.21			(0.24	)

	17	Income From Continuing Operations		0.12			0.32			(0.20	)
	18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			(0.05	)		0.06
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—

	20	Net Income	$	0.13		$	0.27		$	(0.14	)


	21	BOOK VALUE PER SHARE	$	32.37	*	$	32.50		$	(0.13	)

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		99,449			92,045			7,404
	23	End of Period		99,187			92,103			7,084

		* Estimate


See Glossary of Terms.		Page 2 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006		2005		Incr (Decr)
		ELECTRIC OPERATING REVENUES (Dollars in Millions)

		REGULATED ELECTRICITY SEGMENT
		Retail
	24	Residential	$	202	$	190	$	12
	25	Business		233		209		24

	26	Total retail		435		399		36
		Wholesale revenue on delivered electricity
	27	Traditional contracts		6		3		3
	28	Off-system sales		12		—		12
	29	Transmission for others		6		7		(1	)
	30	Other miscellaneous services		7		7		—

	31	Total regulated operating electricity revenues		466		416		50

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		85		89		(4	)

	33	Total operating electric revenues	$	551	$	505	$	46


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,419		2,367		52
	35	Business		3,199		3,042		157

	36	Total retail		5,618		5,409		209
		Wholesale electricity delivered
	37	Traditional contracts		215		155		60
	38	Off-system sales		936		—		936
	39	Retail load hedge management		178		750		(572	)

	40	Total regulated electricity		6,947		6,314		633

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		3,891		6,060		(2,169	)

	42	Total electric sales		10,838		12,374		(1,536	)


See Glossary of Terms.		Page 3 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006			2005			Incr (Decr)
		POWER SUPPLY ADJUSTOR (“PSA”) - - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)

	43	Deferred fuel and purchased power regulatory asset — beginning balance	$	173		$	—		$	173
	44	Deferred fuel and purchased power costs — current period		13			—			13
	45	Interest on deferred fuel		1			—			1
	46	Amounts recovered through revenues		(18	)		—			(18	)

	47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	—		$	169


		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

		Realized and Mark-To-Market Components

	48	Electricity and other commodity sales, realized (a)	$	11		$	12		$	(1	)
	49	Mark-to-market reversals on realized sales (b)		(1	)		(3	)		2
	50	Change in mark-to-market value of forward sales		1			10			(9	)

	51	Total gross margin	$	11		$	19		$	(8	)


		By Pinnacle West Entity

	52	Parent company marketing and trading division	$	(2	)	$	21		$	(23	)
	53	APS		10			(4	)		14
	54	Pinnacle West Energy		—			5			(5	)
	55	APS Energy Services		3			(3	)		6

	56	Total gross margin	$	11		$	19		$	(8	)

Future Marketing and Trading Mark-to-Market Realization

As of March 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2006, $11 million; 2007, $21 million; and 2008, $13 million.


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the first quarter of 2006. A $1 million realized gain is included in the $11 million on line 48 for the first quarter of 2006.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.


See Glossary of Terms.		Page 4 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006			2005			Incr (Decr)
		AVERAGE ELECTRIC CUSTOMERS

		Retail customers
	57	Residential		930,799			889,967			40,832
	58	Business		113,570			109,795			3,775

	59	Total		1,044,369			999,762			44,607
	60	Wholesale customers		75			81			(6	)

	61	Total customers		1,044,444			999,843			44,601


	62	Customer growth (% over prior year)		4.5	%		4.0	%		0.5	%

		RETAIL SALES (GWH) - WEATHER NORMALIZED

	63	Residential		2,514			2,439			75
	64	Business		3,252			3,058			194

	65	Total		5,766			5,497			269


		RETAIL USAGE (KWh/Average Customer)

	66	Residential		2,763			2,660			103
	67	Business		30,444			27,706			2,738

		RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,700			2,741			(41	)
	69	Business		28,636			27,860			776

		ELECTRICITY DEMAND (MW)

	70	System peak demand		4,205			3,997			208


See Glossary of Terms.		Page 5 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006			2005			Incr (Decr)
		ENERGY SOURCES (GWH)

		Generation production
	71	Nuclear		1,720			2,247			(527	)
	72	Coal		3,083			2,940			143
	73	Gas, oil and other		1,252			1,127			125

	74	Total generation production		6,055			6,314			(259	)

		Purchased power
	75	Firm load		365			586			(221	)
	76	Marketing and trading		4,669			5,832			(1,163	)

	77	Total purchased power		5,034			6,418			(1,384	)

	78	Total energy sources		11,089			12,732			(1,643	)


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		71	%		94	%		(23	)%
	80	Coal		83	%		79	%		4	%
	81	Gas, oil and other		20	%		18	%		2	%
	82	System average		49	%		50	%		(1	)%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		306			52			254
	84	Coal		257			195			62
	85	Gas		201			212			(11	)

	86	Total		764			459			305


(a)		Includes planned and unplanned outages


See Glossary of Terms.		Page 6 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended March 31, 2006 and 2005


			3 Mo. Ended March
Line			2006			2005			Incr (Decr)
		ENERGY MARKET INDICATORS (a)

		Electricity Average Daily Spot Prices ($/MWh)
		On-Peak
	87	Palo Verde	$	53.78		$	49.74		$	4.04
	88	SP15	$	58.34		$	55.70		$	2.64
		Off-Peak
	89	Palo Verde	$	41.92		$	37.04		$	4.88
	90	SP15	$	44.79		$	40.96		$	3.83

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		43			34			9
	92	Heating degree-days		464			457			7
	93	Average humidity		28	%		56	%		(28	)%
		10-Year Averages
	94	Cooling degree-days		99			99			—
	95	Heating degree-days		514			514			—
	96	Average humidity		41	%		41	%		0	%

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b) (d)
	97	Single-family		5,376			6,470			(1,094	)
	98	Multi-family		2,448			1,049			1,399

	99	Total		7,824			7,519			305

		Arizona Job Growth (c) (d)
	100	Payroll job growth (% over prior year)		5.6	%		4.8	%		0.8	%
		Unemployment rate
	101	(%, seasonally adjusted)		4.6	%		4.5	%		0.1	%


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

(d)		Economic indicators reflect latest available data through periods ended February 28, 2006.


See Glossary of Terms.		Page 7 of 31

EX-99.3 4 p72248exv99w3.htm EXHIBIT 99.3 exv99w3

Exhibit 99.3

Last Updated 5/9/2006

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	)							$	(6	)	$	(33	)
	2	Pinnacle West Energy		—									—			21
	3	APS Energy Services		1									1			4
	4	SunCor		21									21			12
	5	El Dorado		(1	)								(1	)		—
	6	Parent Company		(3	)								(3	)		(22	)

	7	Income From Continuing Operations		12			—		—		—		12			(18	)
	8	Loss From Discontinued Operations — Net of Tax		—									—			6
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—		—		—			—

	10	Net Income	$	12		$	—	$	—	$	—	$	12		$	(12	)


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	(0.06	)							$	(0.06	)	$	(0.36	)
	12	Pinnacle West Energy		—									—			0.23
	13	APS Energy Services		0.01									0.01			0.05
	14	SunCor		0.21									0.21			0.12
	15	El Dorado		(0.01	)								(0.01	)		—
	16	Parent Company		(0.03	)								(0.03	)		(0.24	)

	17	Income From Continuing Operations		0.12			—		—		—		0.12			(0.20	)
	18	Income (Loss) From Discontinued Operations — Net of Tax		0.01									0.01			0.06
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—		—		—			—

	20	Net Income	$	0.13		$	—	$	—	$	—	$	0.13		$	(0.14	)


	21	BOOK VALUE PER SHARE	$	32.37	*							$	32.37		$	(0.13	)

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		99,449									99,449			7,404
	23	End of Period		99,187									99,187			7,084


*		Estimate


See Glossary of Terms.		Page 8 of 31

Last Updated 5/9/2006

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
	24	Residential	$	202							$	202	$	12
	25	Business		233								233		24

	26	Total retail		435		—		—		—		435		36
		Wholesale revenue on delivered electricity
	27	Traditional contracts		6								6		3
	28	Off-system sales		12								12		12
	29	Transmission for others		6								6		(1	)
	30	Other miscellaneous services		7								7		—

	31	Total regulated operating electricity revenues		466		—		—		—		466		50

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		85								85		(4	)

	33	Total operating electric revenues	$	551	$	—	$	—	$	—	$	551	$	46


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,419								2,419		52
	35	Business		3,199								3,199		157

	36	Total retail		5,618		—		—		—		5,618		209
		Wholesale electricity delivered
	37	Traditional contracts		215								215		60
	38	Off-system sales		936								936		936
	39	Retail load hedge management		178								178		(572	)

	40	Total regulated electricity		6,947		—		—		—		6,947		633

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		3,891								3,891		(2,169	)

	42	Total electric sales		10,838		—		—		—		10,838		(1,536	)


See Glossary of Terms.		Page 9 of 31

Last Updated 5/9/2006

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)

	43	Deferred fuel and purchased power regulatory asset — beginning balance	$	173									173		$	173
	44	Deferred fuel and purchased power costs — current period		13									13			13
	45	Interest on deferred fuel		1									1			1
	46	Amounts recovered through revenues		(18	)								(18	)		(18	)

	47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	—	$	—	$	—	$	169		$	169


		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

		Realized and Mark-To-Market Components
	48	Electricity and other commodity sales, realized (a)	$	11								$	11		$	(1	)
	49	Mark-to-market reversals on realized sales (b)		(1	)								(1	)		2
	50	Change in mark-to-market value of forward sales		1									1			(9	)

	51	Total gross margin	$	11		$	—	$	—	$	—	$	11		$	(8	)


		By Pinnacle West Entity

	52	Parent company marketing and trading division	$	(2	)							$	(2	)	$	(23	)
	53	APS		10									10			14
	54	Pinnacle West Energy		—									—			(5	)
	55	APS Energy Services		3									3			6

	56	Total gross margin	$	11		$	—	$	—	$	—	$	11		$	(8	)

Future Marketing and Trading Mark-to-Market Realization


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the first quarter of 2006. A $1 million realized gain is included in the $11 million on line 48 for the first quarter of 2006.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.


See Glossary of Terms.		Page 10 of 31

Last Updated 5/9/2006

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
	57	Residential		930,799									930,799			40,832
	58	Business		113,570									113,570			3,775

	59	Total		1,044,369			—		—		—		1,044,369			44,607
	60	Wholesale customers		75									75			(6	)

	61	Total customers		1,044,444			—		—		—		1,044,444			44,601


	62	Customer growth (% over prior year)		4.5	%								4.5	%		0.5	%

		RETAIL SALES (GWH) — WEATHER NORMALIZED

	63	Residential		2,514									2,514			75
	64	Business		3,252									3,252			194

	65	Total		5,766			—		—		—		5,766			269


		RETAIL USAGE (KWh/Average Customer)

	66	Residential		2,763									2,763			103
	67	Business		30,444									30,444			2,738

		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,700									2,700			(41	)
	69	Business		28,636									28,636			776

		ELECTRICITY DEMAND (MW)

	70	System peak demand		4,205									4,205			208


See Glossary of Terms.		Page 11 of 31

Last Updated 5/9/2006

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
	71	Nuclear		1,720									1,720			(527	)
	72	Coal		3,083									3,083			143
	73	Gas, oil and other		1,252									1,252			125

	74	Total generation production		6,055			—		—		—		6,055			(259	)

		Purchased power
	75	Firm load		365									365			(221	)
	76	Marketing and trading		4,669									4,669			(1,163	)

	77	Total purchased power		5,034			—		—		—		5,034			(1,384	)

	78	Total energy sources		11,089			—		—		—		11,089			(1,643	)


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		71	%								71	%		(23	)%
	80	Coal		83	%								83	%		4	%
	81	Gas, oil and other		20	%								20	%		2	%
	82	System average		49	%								49	%		(1	)%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		306									306			254
	84	Coal		257									257			62
	85	Gas		201									201			(11	)

	86	Total		764			—		—		—		764			305


(a)		Includes planned and unplanned outages


See Glossary of Terms.		Page 12 of 31

Last Updated 5/9/2006

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
	87	Palo Verde	$	53.78								$	53.78		$	4.04
	88	SP15	$	58.34								$	58.34		$	2.64
		Off-Peak
	89	Palo Verde	$	41.92								$	41.92		$	4.88
	90	SP15	$	44.79								$	44.79		$	3.83

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		43									43			9
	92	Heating degree-days		464									464			7
	93	Average humidity		28	%								28	%		(28	)%
		10-Year Averages
	94	Cooling degree-days		99									99			—
	95	Heating degree-days		514									514			—
	96	Average humidity		41	%								41	%		—

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b) (d)
	97	Single-family		5,376									5,376			(1,094	)
	98	Multi-family		2,448									2,448			1,399

	99	Total		7,824			—		—		—		7,824			305

		Arizona Job Growth (c) (d)
	100	Payroll job growth (% over prior year)		5.6	%								5.6	%		0.8	%
	101	Unemployment rate
		(%, seasonally adjusted)		4.6	%								4.6	%		0.1	%


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

(d)		Economic indicators reflect latest available data through periods ended February 28, 2006.


See Glossary of Terms.		Page 13 of 31

EX-99.4 5 p72248exv99w4.htm EXHIBIT 99.4 exv99w4

Exhibit 99.4

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


																		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	$	27		$	64		$	61		$	18		$	170		$	(30	)
	2	Pinnacle West Energy		(21	)		12			(71	)		(6	)		(85	)		(27	)
	3	APS Energy Services		(3	)		1			—			(3	)		(6	)		(9	)
	4	SunCor		9			11			6			13			39			(2	)
	5	El Dorado		(1	)		—			—			—			(2	)		(35	)
	6	Parent Company		19			(3	)		89			2			107			79

	7	Income From Continuing Operations		30			85			85			24			223			(24	)
	8	Loss From Discontinued Operations — Net of Tax		(6	)		(58	)		19			(3	)		(47	)		(43	)
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—

	10	Net Income	$	24		$	27		$	104		$	21		$	176		$	(67	)


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	0.30		$	0.66		$	0.62		$	0.19		$	1.77		$	(0.41	)
	12	Pinnacle West Energy		(0.23	)		0.13			(0.72	)		(0.06	)		(0.89	)		(0.26	)
	13	APS Energy Services		(0.04	)		0.01			—			(0.04	)		(0.06	)		(0.09	)
	14	SunCor		0.09			0.11			0.07			0.13			0.40			(0.05	)
	15	El Dorado		(0.01	)		—			(0.01	)		(0.01	)		(0.02	)		(0.38	)
	16	Parent Company		0.21			(0.03	)		0.90			0.03			1.11			0.81

	17	Income From Continuing Operations		0.32			0.88			0.86			0.24			2.31			(0.38	)

	18	Income (Loss) From Discontinued Operations — Net of Tax		(0.05	)		(0.60	)		0.19			(0.02	)		(0.49	)		(0.46	)
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—

	20	Net Income	$	0.27		$	0.28		$	1.05		$	0.22		$	1.82		$	(0.84	)


	21	BOOK VALUE PER SHARE	$	32.50		$	32.89		$	35.81		$	34.58		$	34.58		$	2.44

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		92,045			96,299			98,816			99,050			96,590			5,058
	23	End of Period		92,103			98,442			98,881			99,057			99,057			7,264


See Glossary of Terms.		Page 14 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


													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
	24	Residential	$	190	$	268	$	414	$	207	$	1,079	$	95
	25	Business		209		281		308		243		1,041		63

	26	Total retail		399		549		722		450		2,120		158

		Wholesale revenue on delivered electricity
	27	Traditional contracts		3		5		9		6		23		7
	28	Off-system sales		—		12		8		20		40		40
	29	Transmission for others		7		7		7		5		26		(6	)
	30	Other miscellaneous services		7		7		7		7		28		3

	31	Total regulated operating electricity revenues		416		580		753		488		2,237		202

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		89		71		107		83		351		(50	)

	33	Total operating electric revenues	$	505	$	651	$	860	$	571	$	2,588	$	152


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,367		2,889		4,449		2,518		12,223		696
	35	Business		3,042		3,684		4,100		3,427		14,254		428

	36	Total retail		5,409		6,573		8,549		5,945		26,477		1,124
		Wholesale electricity delivered
	37	Traditional contracts		155		200		269		227		850		141
	38	Off-system sales		—		598		212		526		1,336		1,336
	39	Retail load hedge management		750		702		1,026		532		3,010		278

	40	Total regulated electricity		6,314		8,073		10,056		7,230		31,673		2,879

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		6,060		5,009		7,263		5,240		23,572		(6,606	)

	42	Total electric sales		12,374		13,082		17,319		12,470		55,245		(3,727	)


See Glossary of Terms.		Page 15 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


																		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)
	43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	38			143		$	—		$	—
	44	Deferred fuel and purchased power costs — current period		—			38			104			29			171			171
	45	Interest on deferred fuel		—			—			1			1			2			2
	46	Amounts recovered through revenues		—			—			—			—			—			—

	47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	38		$	143		$	173		$	173		$	173


		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

		Realized and Mark-To-Market Components
	48	Electricity and other commodity sales, realized (a)	$	12		$	18		$	3		$	22		$	55		$	(9	)
	49	Mark-to-market reversals on realized sales (b)		(3	)		(8	)		3			(17	)		(16	)		(11	)
	50	Change in mark-to-market value of forward sales		10			3			14			1			20			(1	)

	51	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)

		By Pinnacle West Entity
	52	Parent company marketing and trading division	$	21		$	6		$	26		$	5		$	59		$	34
	53	APS		(4	)		3			(8	)		3			(6	)		(1	)
	54	Pinnacle West Energy		5			—			—			—			5			(41	)
	55	APS Energy Services		(3	)		4			2			(2	)		1			(13	)

	56	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2005, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2006, $14 million; 2007, $20 million; and 2008, $11 million.


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $17 million was transferred to “realized” for the fourth quarter of 2005. A $17 million realized gain is included in the $22 million on line 48 for the fourth quarter of 2005.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.


See Glossary of Terms.		Page 16 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		AVERAGE ELECTRIC CUSTOMERS

		Retail customers
	57	Residential		889,967			888,509			895,789			911,623			896,472			37,403
	58	Business		109,795			110,658			111,648			112,569			111,168			4,053

	59	Total		999,762			999,167			1,007,437			1,024,192			1,007,640			41,456
	60	Wholesale customers		81			76			78			77			78			(3	)

	61	Total customers		999,843			999,243			1,007,515			1,024,269			1,007,718			41,453

	62	Customer growth (% over prior year)		4.0	%		4.2	%		4.5	%		4.5	%		4.3	%		0.6	%

		RETAIL SALES (GWH) — WEATHER NORMALIZED

	63	Residential		2,439			2,905			4,421			2,515			12,280			572
	64	Business		3,058			3,693			4,120			3,414			14,286			415

	65	Total		5,497			6,598			8,541			5,929			26,566			987


		RETAIL USAGE (KWh/Average Customer)

	66	Residential		2,660			3,252			4,967			2,763			13,635			217
	67	Business		27,706			33,292			36,723			30,444			128,514			(878	)

		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,741			3,269			4,935			2,758			13,698			70
	69	Business		27,860			33,377			36,899			30,332			128,507			(987	)

		ELECTRICITY DEMAND (MW)

	70	System peak demand		3,997			6,458			7,000			5,169			7,000			598


See Glossary of Terms.		Page 17 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		ENERGY SOURCES (GWH)

		Generation production
	71	Nuclear		2,247			1,619			2,147			1,496			7,509			(674	)
	72	Coal		2,940			3,088			3,574			3,458			13,060			394
	73	Gas, oil and other		1,127			2,074			3,018			1,482			7,701			2,373

	74	Total generation production		6,314			6,781			8,739			6,436			28,270			2,093

		Purchased power
	75	Firm load		586			880			1,589			402			3,474			(851	)
	76	Marketing and trading		5,832			5,984			7,795			6,102			25,713			(4,479	)

	77	Total purchased power		6,418			6,864			9,384			6,504			29,187			(5,330	)

	78	Total energy sources		12,732			13,645			18,123			12,940			57,457			(3,237	)


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		94	%		67	%		88	%		61	%		77	%		(7	)%
	80	Coal		79	%		83	%		95	%		91	%		87	%		3	%
	81	Gas, oil and other		18	%		28	%		40	%		29	%		29	%		9	%
	82	System average		50	%		49	%		63	%		51	%		53	%		2	%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		52			329			107			419			227			66
	84	Coal		195			244			57			103			150			43
	85	Gas		212			164			140			226			186			144

	86	Total		459			737			304			748			563			253


(a)		Includes planned and unplanned outages


See Glossary of Terms.		Page 18 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2005


																		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
	87	Palo Verde	$	49.74		$	53.33		$	78.94		$	83.58		$	66.40		$	17.10
	88	SP15	$	55.70		$	55.19		$	83.21		$	97.65		$	72.94		$	17.74
		Off-Peak
	89	Palo Verde	$	37.04		$	33.03		$	52.35		$	67.79		$	47.55		$	12.81
	90	SP15	$	40.96		$	34.73		$	56.08		$	76.45		$	52.06		$	13.44

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		34			1,538			2,583			508			4,663			(31	)
	92	Heating degree-days		457			1			—			308			766			(219	)
	93	Average humidity		56	%		20	%		29	%		30	%		34	%		2	%
		10-Year Averages
	94	Cooling degree-days		99			1,547			2,541			437			4,623			—
	95	Heating degree-days		514			31			—			386			930			—
	96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b) (d)
	97	Single-family		10,356			12,013			11,577			9,312			43,258			(4,859	)
	98	Multi-family		1,741			1,645			2,360			2,032			7,778			192

	99	Total		12,097			13,658			13,937			11,344			51,036			(4,667	)


		Arizona Job Growth (c)
	100	Payroll job growth (% over prior year)		4.8	%		5.5	%		6.1	%		6.0	%		5.6	%		2.2	%
	101	Unemployment rate (%, seasonally adjusted)		4.5	%		4.7	%		4.8	%		4.7	%		4.7	%		(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 31

EX-99.5 6 p72248exv99w5.htm EXHIBIT 99.5 exv99w5

Exhibit 99.5

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


																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	$	34		$	55		$	95	$	15		$	200		$	19
2	Pinnacle West Energy		(22	)		(14	)		1		(23	)		(58	)		(50	)
3	APS Energy Services		2			1			1		(1	)		3			(13	)
4	SunCor		2			4			4		31			41			(5	)
5	El Dorado		—			34			—		—			33			34
6	Parent Company		15			(6	)		3		16			28			37


7	Income From Continuing Operations		31			74			104		38			247			22

8	Income (Loss) From Discontinued
	Operations — Net of Tax		—			(1	)		1		(4	)		(4	)		(20	)

9	Cumulative Effect of Change in
	Accounting — Net of Tax		—			—			—		—			—			—

10	Net Income	$	31		$	73		$	105	$	34		$	243		$	2


	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

11	Arizona Public Service	$	0.38		$	0.60		$	1.04	$	0.16		$	2.18		$	0.20
12	Pinnacle West Energy		(0.24	)		(0.15	)		0.01		(0.25	)		(0.63	)		(0.55	)
13	APS Energy Services		0.02			0.01			0.01		(0.01	)		0.03			(0.15	)
14	SunCor		0.02			0.04			0.05		0.34			0.45			(0.05	)
15	El Dorado		—			0.37			—		—			0.36			0.37
16	Parent Company		0.15			(0.06	)		0.03		0.17			0.30			0.40


17	Income From Continuing Operations		0.33			0.81			1.14		0.41			2.69			0.22

18	Income (Loss) From Discontinued
	Operations — Net of Tax		0.01			(0.02	)		0.01		(0.04	)		(0.03	)		(0.19	)
19	Cumulative Effect of Change in
	Accounting — Net of Tax		—			—			—		—			—			—

20	Net Income	$	0.34		$	0.79		$	1.15	$	0.37		$	2.66		$	0.03

21	BOOK VALUE PER SHARE	$	31.19		$	31.68		$	32.55	$	32.14		$	32.14		$	1.17

	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		91,376			91,400			91,491		91,779			91,532			127
23	End of Period		91,310			91,309			91,443		91,793			91,793			505


See Glossary of Terms.		Page 20 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


												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
24	Residential	$	189	$	245	$	360	$	190	$	984	$	27
25	Business		211		257		289		221		978		25

26	Total retail		400		502		649		411		1,962		52
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		4		6		3		16		1
28	Off-system sales		—		—		—		—		—		—
29	Transmission for others		8		8		8		8		32		4
30	Other miscellaneous services		4		6		8		7		25		—

31	Total regulated operating
	electricity revenues		415		520		671		429		2,035		57

	MARKETING AND TRADING SEGMENT
32	Electricity and other
	commodity sales		89		110		91		111		401		9

33	Total operating electric revenues	$	504	$	630	$	762	$	540	$	2,436	$	66


	ELECTRIC SALES (GWH)

	REGULATED ELECTRICITY SEGMENT Retail sales
34	Residential		2,410		2,722		4,028		2,367		11,527		380
35	Business		3,051		3,602		3,937		3,236		13,826		411

36	Total retail		5,461		6,324		7,965		5,603		25,353		791
	Wholesale electricity delivered
37	Traditional contracts		138		195		210		166		709		209
38	Off-system sales		—		—		—		—		—		—
39	Retail load hedge management		169		731		943		889		2,732		1,638

40	Total regulated electricity		5,768		7,250		9,118		6,658		28,794		2,638

	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		5,696		7,141		8,994		8,347		30,178		1,375

42	Total electric sales		11,464		14,391		18,112		15,005		58,972		4,013


See Glossary of Terms.		Page 21 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


																	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)

43	Deferred fuel and purchased power
	regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
44	Deferred fuel and purchased power
	costs — current period		—			—			—			—			—			—
45	Interest on deferred fuel		—			—			—			—			—			—
46	Amounts recovered through revenues		—			—			—			—			—			—

47	Deferred fuel and purchased power
	regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—


	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

	Realized and Mark-To-Market
	Components
48	Electricity and other commodity
	sales, realized (a)	$	12		$	21		$	16		$	15		$	64		$	(1	)
49	Mark-to-market reversals on
	realized sales (b)		1			(4	)		(3	)		(1	)		(5	)		6
50	Change in mark-to-market value of
	forward sales		8			4			8			3			21			28

51	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33


	By Pinnacle West Entity

52	Parent company marketing and
	trading division	$	12		$	6		$	5		$	1		$	25		$	30
53	APS		(5	)		—			2			(2	)		(5	)		(13	)
54	Pinnacle West Energy		10			11			10			16			46			38
55	APS Energy Services		4			4			4			2			14			(22	)

56	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $6 million was transferred to “realized” for the total year 2004. A $6 million realized gain is included in the $63 million on line 48 for the total year 2004.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.


See Glossary of Terms.		Page 22 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS

	Retail customers
57	Residential		855,754			852,594			856,353			871,575			859,069			30,703
58	Business		105,502			106,517			107,583			108,860			107,115			4,019

59	Total		961,256			959,111			963,936			980,435			966,184			34,722
60	Wholesale customers		81			82			85			77			81			15

61	Total customers		961,337			959,193			964,021			980,512			966,265			34,737

62	Customer growth (% over prior year)		3.4	%		3.8	%		3.9	%		3.9	%		3.7	%		0.4	%

	RETAIL SALES (GWH) — WEATHER NORMALIZED

63	Residential		2,366			2,798			4,209			2,334			11,708			804
64	Business		2,998			3,616			4,005			3,252			13,871			469

65	Total		5,364			6,414			8,214			5,586			25,579			1,273


	RETAIL USAGE (KWh/Average Customer)

66	Residential		2,816			3,193			4,704			2,717			13,418			(39	)
67	Business		28,919			33,816			36,595			29,726			129,392			(1,137	)

	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

68	Residential		2,765			3,282			4,915			2,678			13,628			465
69	Business		28,421			33,944			37,224			29,874			129,494			(503	)

	ELECTRICITY DEMAND (MW)

70	System peak demand		3,979			5,632			6,402			4,432			6,402			70


See Glossary of Terms.		Page 23 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)

	Generation production
71	Nuclear		2,148			1,860			2,364			1,811			8,183			(132	)
72	Coal		2,887			3,035			3,417			3,327			12,666			1,299
73	Gas, oil and other		367			1,339			2,547			1,075			5,328			(763	)

74	Total generation production		5,402			6,234			8,328			6,213			26,177			404

	Purchased power
75	Firm load		701			1,532			1,068			1,024			4,325			1,214
76	Marketing and trading		5,506			7,167			9,301			8,218			30,192			2,442

77	Total purchased power		6,207			8,699			10,369			9,242			34,517			3,656

78	Total energy sources		11,609			14,933			18,697			15,455			60,694			4,060


	POWER PLANT PERFORMANCE

	Capacity Factors
79	Nuclear		88	%		76	%		96	%		74	%		84	%		(3	)%
80	Coal		77	%		81	%		90	%		88	%		84	%		8	%
81	Gas, oil and other		5	%		20	%		38	%		17	%		20	%		(7	)%
82	System average		44	%		49	%		64	%		48	%		51	%		(3	)%

	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		135			233			13			261			161			29
84	Coal		149			153			63			61			107			(163	)
85	Gas		49			47			39			34			42			(163	)

86	Total		333			433			115			356			310			(296	)


(a)		Includes planned and unplanned outages


See Glossary of Terms.		Page 24 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2004


																	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
87	Palo Verde	$	43.73		$	50.36		$	51.86		$	51.23		$	49.30		$	0.70
88	SP15	$	48.37		$	54.73		$	57.09		$	60.62		$	55.20		$	3.82
	Off-Peak
89	Palo Verde	$	33.66		$	33.74		$	33.37		$	38.21		$	34.75		$	2.72
90	SP15	$	36.90		$	37.32		$	37.18		$	43.07		$	38.62		$	3.96

	WEATHER INDICATORS

	Actual
91	Cooling degree-days		273			1,598			2,471			352			4,694			(205	)
92	Heating degree-days		552			11			—			422			985			249
93	Average humidity		39	%		19	%		26	%		45	%		32	%		1	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%

	ECONOMIC INDICATORS

	Building Permits — Metro Phoenix (b)
97	Single-family		10,045			13,636			14,111			10,325			48,117			8,466
98	Multi-family		1,757			1,324			2,149			2,356			7,586			859

99	Total		11,802			14,960			16,260			12,681			55,703			9,325

	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		2.7	%		3.3	%		3.6	%		3.9	%		3.4	%		2.0	%
101	Unemployment rate
	(%, seasonally adjusted)		5.2	%		5.1	%		4.9	%		4.6	%		5.0	%		(0.7	)%


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 31

EX-99.6 7 p72248exv99w6.htm EXHIBIT 99.6 exv99w6

Exhibit 99.6

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


																	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	$	16		$	43	$	100		$	21		$	181		$	(18	)
	2	Pinnacle West Energy		4			1		2			(15	)		(8	)		11
	3	APS Energy Services		8			5		1			3			16			(12	)
	4	SunCor		1			2		6			36			46			36
	5	El Dorado		—			—		—			—			(1	)		4
	6	Parent Company		(11	)		3		—			—			(9	)		(32	)


	7	Income From Continuing Operations		18			54		109			45			225			(11	)

	8	Income From Discontinued Operations — Net of Tax		7			2		1			4			16			37
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			66

	10	Net Income	$	25		$	56	$	110		$	49		$	241		$	92


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	0.17		$	0.47	$	1.10		$	0.24		$	1.98		$	(0.37	)
	12	Pinnacle West Energy		0.05			0.01		0.02			(0.16	)		(0.08	)		0.15
	13	APS Energy Services		0.08			0.06		0.01			0.03			0.18			(0.15	)
	14	SunCor		0.01			0.03		0.07			0.39			0.50			0.37
	15	El Dorado		—			—		—			—			(0.01	)		0.05
	16	Parent Company		(0.11	)		0.02		(0.01	)		(0.01	)		(0.10	)		(0.36	)


	17	Income From Continuing Operations		0.20			0.59		1.19			0.49			2.47			(0.31	)

	18	Income From Discontinued Operations — Net of Tax		0.08			0.02		0.01			0.05			0.16			0.41
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			0.77

	20	Net Income	$	0.28		$	0.61	$	1.20		$	0.54		$	2.63		$	0.87


	21	BOOK VALUE PER SHARE	$	29.39		$	29.95	$	30.68		$	30.97		$	30.97		$	1.57

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		91,359			91,450		91,467			91,403			91,405			6,441
	23	End of Period		91,257			91,262		91,271			91,288			91,288			33


See Glossary of Terms.		Page 26 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


													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
	24	Residential	$	168	$	233	$	363	$	193	$	957	$	51
	25	Business		196		251		284		222		953		25

	26	Total retail		364		484		647		415		1,910		76
		Wholesale revenue on delivered electricity
	27	Traditional contracts		3		4		5		3		15		7
	28	Off-system sales		—		—		—		—		—		—
	29	Transmission for others		6		5		9		8		28		(2	)
	30	Other miscellaneous services		7		6		6		6		25		7

	31	Total regulated operating electricity revenues		380		499		667		432		1,978		88

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		117		101		83		91		392		105

	33	Total operating electric revenues	$	497	$	600	$	750	$	523	$	2,370	$	193


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,104		2,543		4,126		2,374		11,147		703
	35	Business		2,849		3,450		3,891		3,225		13,415		497

	36	Total retail		4,953		5,993		8,017		5,599		24,562		1,200
		Wholesale electricity delivered
	37	Traditional contracts		130		131		127		112		500		27
	38	Off-system sales		—		—		—		—		—		—
	39	Retail load hedge management		109		205		446		334		1,094		(1,548	)

	40	Total regulated electricity		5,192		6,329		8,590		6,045		26,156		(321	)

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		7,372		6,798		7,255		7,378		28,803		5,949

	42	Total electric sales		12,564		13,127		15,845		13,423		54,959		5,628


See Glossary of Terms.		Page 27 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


																		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)

	43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
	44	Deferred fuel and purchased power costs — current period		—			—			—			—			—			—
	45	Interest on deferred fuel		—			—			—			—			—			—
	46	Amounts recovered through revenues		—			—			—			—			—			—

	47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—


		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

		Realized and Mark-To-Market Components
	48	Electricity and other commodity sales, realized (a)	$	25		$	20		$	4		$	16		$	65		$	(56	)
	49	Mark-to-market reversals on realized sales (b)		(3	)		1			(3	)		(1	)		(11	)		35
	50	Change in mark-to-market value of forward sales		(3	)		(1	)		(3	)		(5	)		(7	)		(64	)

	51	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)


		By Pinnacle West Entity

	52	Parent company marketing and trading division	$	2		$	4		$	(2	)	$	(9	)	$	(5	)	$	(95	)
	53	APS		6			4			(6	)		4			8		$	6
	54	Pinnacle West Energy		(1	)		—			—			9			8		$	4
	55	APS Energy Services		12			12			6			6			36		$	—

	56	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $6 million was transferred to “realized” for the total year 2003. A $6 million realized gain is included in the $65 million on line 48 for the total year 2003.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.



See Glossary of Terms.		Page 28 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		AVERAGE ELECTRIC CUSTOMERS

		Retail customers
	57	Residential		827,937			821,331			824,655			839,539			828,366			26,565
	58	Business		101,999			102,601			103,262			104,521			103,096			2,868

	59	Total		929,936			923,932			927,917			944,060			931,462			29,432
	60	Wholesale customers		65			66			66			66			66			(1	)

	61	Total customers		930,001			923,998			927,983			944,126			931,528			29,431


	62	Customer growth (% over prior year)		3.3	%		3.1	%		3.2	%		3.4	%		3.3	%		0.2	%

		RETAIL SALES (GWH) — WEATHER NORMALIZED

	63	Residential		2,218			2,477			3,939			2,269			10,904			443
	64	Business		2,885			3,485			3,857			3,174			13,402			496

	65	Total		5,103			5,962			7,796			5,443			24,306			939


		RETAIL USAGE (KWh/Average Customer)
	66	Residential		2,541			3,096			5,004			2,828			13,457			432
	67	Business		27,927			33,625			37,677			30,865			130,529			1,288

		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,679			3,016			4,777			2,703			13,163			116
	69	Business		28,286			33,969			37,356			30,371			129,997			1,234

		ELECTRICITY DEMAND (MW)

	70	System peak demand		3,569			5,571			6,332			5,124			6,332			529


See Glossary of Terms.		Page 29 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		ENERGY SOURCES (GWH)

		Generation production
	71	Nuclear		2,306			2,047			2,230			1,732			8,315			(666	)
	72	Coal		2,770			2,824			2,972			2,801			11,367			(690	)
	73	Gas, oil and other		1,288			1,572			2,696			535			6,091			1,722

	74	Total generation production		6,364			6,443			7,898			5,068			25,773			366

		Purchased power
	75	Firm load		(12	)		606			1,099			1,418			3,111			1,492
	76	Marketing and trading		6,489			6,527			7,498			7,236			27,750			4,045

	77	Total purchased power		6,477			7,133			8,597			8,654			30,861			5,537

	78	Total energy sources		12,841			13,576			16,495			13,722			56,634			5,903


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		98	%		86	%		93	%		72	%		87	%		(7	)%
	80	Coal		75	%		75	%		79	%		74	%		76	%		(4	)%
	81	Gas, oil and other		26	%		30	%		45	%		9	%		27	%		0	%
	82	System average		58	%		57	%		65	%		41	%		54	%		(9	)%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		31			136			61			297			131			64
	84	Coal		292			254			277			253			269			102
	85	Gas		189			148			154			338			205			157

	86	Total		512			538			492			888			605			323


(a)		Includes planned and unplanned outages



See Glossary of Terms.		Page 30 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003


																		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
	87	Palo Verde	$	49.66		$	48.88		$	52.88		$	42.98		$	48.60		$	16.32
	88	SP15	$	54.35		$	50.73		$	53.54		$	46.88		$	51.38		$	17.16
		Off-Peak
	89	Palo Verde	$	36.09		$	25.48		$	36.08		$	30.48		$	32.03		$	12.14
	90	SP15	$	39.70		$	28.27		$	37.81		$	32.85		$	34.66		$	12.97

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		76			1,550			2,701			572			4,899			24
	92	Heating degree-days		349			17			—			370			736			(64	)
	93	Average humidity		44	%		18	%		30	%		34	%		31	%		4	%
		10-Year Averages
	94	Cooling degree-days		99			1,547			2,541			437			4,623			—
	95	Heating degree-days		514			31			—			386			930			—
	96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b)
	97	Single-family		8,030			10,613			11,191			9,817			39,651			5,339
	98	Multi-family		863			2,053			1,231			2,580			6,727			(347	)
	99	Total		8,893			12,666			12,422			12,397			46,378			4,992

		Arizona Job Growth (c)
	100	Payroll job growth (% over prior year)		1.1	%		0.9	%		1.5	%		2.0	%		1.4	%		1.4	%
	101	Unemployment rate (%, seasonally adjusted)		5.8	%		5.9	%		5.7	%		5.3	%		5.7	%		(0.5	)%


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 31 of 31

EX-99.7 8 p72248exv99w7.htm EXHIBIT 99.7 exv99w7

Exhibit 99.7
Last updated 10/27/05

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Glossary of Terms


Amounts Recovered Through Revenues		Amounts recovered from retail customers through the power supply adjustor in the current period.

Arizona Job Growth		Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.

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.

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 $0.020743 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 $0.020743 per kWh).

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.

- 2 -



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.

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.

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.

- 3 -



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.

Native Load		Retail and wholesale sales supplied under traditional cost-based rate regulation.

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.

- 4 -



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 $0.020743 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.

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.

System Peak Demand		The demand for electricity during the one hour of highest use each month. Measured in megawatts.

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.

- 5 -



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 9 p72248exv99w8.htm EXHIBIT 99.8 exv99w8

Exhibit 99.8


FOR IMMEDIATE RELEASE		May 9, 2006
Media Contact:	Alan Bunnell, (602) 250-3376	Page 1 of 2
Analyst Contact:	Rebecca Hickman, (602) 250-5668
Web site:	www.pinnaclewest.com

PINNACLE WEST FIRST QUARTER EARNINGS
LOWER DUE TO HIGHER FUEL COSTS

PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported lower consolidated net income for the quarter ended March 31, 2006, of $12.5 million, or $0.13 per diluted share of common stock. This result compares with net income of $24.4 million, or $0.27 per share, for the comparable quarter a year ago.

Arizona Public Service (APS) reported a net loss of $5.5 million for the first quarter of 2006, compared with net income of $27.0 million for the same period a year ago. Whereas, SunCor Development Co., Pinnacle West’s real estate subsidiary, delivered solid performance, reporting net income of $22.0 million, compared with $9.4 million in the 2005 first quarter.

“APS’ first quarter sales growth was strong, increasing 4 percent in 2006. But the associated revenue growth was more than offset by high natural gas and purchased power prices,” said Chairman Bill Post. “The power supply adjustor approved by the Arizona Corporation Commission (ACC) last week allows us to begin collecting a significant portion of our fuel cost increases on a timely basis.

“And, the ACC’s order will improve APS’ cash flow, which is essential to maintaining its financial integrity and investment grade credit ratings so as to allow us to continue supporting Arizona’s growth in the most cost-effective manner for our customers.”

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

Pinnacle West is a Phoenix-based company with consolidated assets of about $11 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.


PINNACLE WEST FIRST QUARTER EARNINGS		May 9, 2006
		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 2006 first quarter earnings and recent developments at 1:00 p.m. (ET), today, Tuesday, May 9, 2006. 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 reservation number 8073391. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, May 16, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number as above.

-30-

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


	THREE MONTHS ENDED
	MARCH 31,
	2006			2005
Operating Revenues
Regulated electricity segment	$	466,126		$	416,030
Marketing and trading segment		85,002			89,257
Real estate segment		107,854			69,936
Other revenues		11,224			10,135

Total		670,206			585,358


Operating Expenses
Regulated electricity segment fuel and purchased power		157,395			78,423
Marketing and trading segment fuel and purchased power		74,175			70,809
Operations and maintenance		178,427			155,084
Real estate segment operations		71,330			55,334
Depreciation and amortization		87,621			90,944
Taxes other than income taxes		35,573			34,565
Other expenses		8,522			8,374

Total		613,043			493,533


Operating Income		57,163			91,825


Other
Allowance for equity funds used during construction		3,801			2,603
Other income		5,467			1,726
Other expense		(4,541	)		(5,309	)

Total		4,727			(980	)


Interest Expense
Interest charges		47,526			45,965
Capitalized interest		(4,024	)		(3,289	)

Total		43,502			42,676


Income From Continuing Operations Before Income Taxes		18,388			48,169

Income Taxes		6,793			18,570


Income From Continuing Operations		11,595			29,599

Income (Loss) From Discontinued Operations
Net of Income Taxes		860			(5,151	)


Net Income	$	12,455		$	24,448


Weighted-Average Common Shares Outstanding — Basic		99,115			91,962

Weighted-Average Common Shares Outstanding — Diluted		99,449			92,045

Earnings Per Weighted-Average Common Share Outstanding
Income From Continuing Operations — Basic	$	0.12		$	0.32
Net Income — Basic	$	0.13		$	0.27
Income From Continuing Operations — Diluted	$	0.12		$	0.32
Net Income — Diluted	$	0.13		$	0.27

Certain prior year amounts have been reclassified to conform to the 2006 presentation.

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