-----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, O1tIxIFyurxh4aNKBhTI8jHCoNBUHuVN64lvUyKWhVAQAhK4j9KIMYq4dG01IVI4 nXJ/hoOy/UgUYiBZN4BO4A== 0000950124-06-004700.txt : 20060821 0000950124-06-004700.hdr.sgml : 20060821 20060821080029 ACCESSION NUMBER: 0000950124-06-004700 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20060818 ITEM INFORMATION: Other Events FILED AS OF DATE: 20060821 DATE AS OF CHANGE: 20060821 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: 061044974 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: 061044975 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 p72807e8vk.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): August 18, 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.
 
 

 

 

Item 8.01. Other Events
Arizona Public Service Company (“APS”) General Rate Case — Testimony
     As required by the procedural schedule in APS’ general rate case pending before the Arizona Corporation Commission (the “ACC”), on August 18, 2006, the ACC staff and other approved rate case intervenors filed their initial written testimony with the ACC. APS is requesting (a) a 21.3%, or $453.9 million, increase in its annual retail electricity revenues and (b) modifications to the power supply adjustor (“PSA”) approved by the ACC in 2005. The requested rate increase includes the following principal components: $299.0 million (14.0%) for increased fuel and purchased power costs and $155.2 million (7.3%) for non-fuel increases. For additional information regarding APS’ request, see “APS General Rate Case” in Note 5 of Notes to Condensed Consolidated Financial Statements in the Pinnacle West Capital Corporation (“Pinnacle West”)/APS Report on Form 10-Q for the fiscal quarter ended June 30, 2006 (“Note 5”).
     ACC Staff Recommendations
     In its filed testimony, the ACC staff recommends that the ACC increase APS’ annual retail electricity revenues by $208.3 million, which would result in a rate increase of approximately 9.8%. The principal components of the increase recommended by the ACC staff are $193.5 million (9.1%) for increased fuel and purchased power costs; $10.5 million (0.5%) for non-fuel increases; and $4.3 million (0.2%) for environmental portfolio standard.
     In arriving at its recommendations, the ACC staff proposed, among other things, that the ACC:
•   Increase the base fuel amount (from which PSA deferrals are calculated) from the current $0.020743 per kWh to $0.027975 per kWh.;
 
•   Approve a weighted-average cost of capital of 8.05% based on a return on common equity of 10.25% and APS’ requested capital structure of 45% long-term debt and 55% common equity;
 
•   Retain the PSA;
 
•   Approve additions to rate base, including the Sundance Power Plant; and
 
•   Establish minimum three-year capacity factor targets for the Palo Verde Nuclear Generating Station (“Palo Verde”)based on a three-year average of Palo Verde performance as compared to a group of comparable nuclear plants, with the ACC to review the recovery of any incremental fuel and replacement power costs attributable to Palo Verde not meeting the minimum targets.
     The ACC staff raised for consideration (without specifically recommending) the following potential changes to the PSA:
•   Establishing the PSA annual adjustor, beginning in 2007, based on projected fuel costs rather than historical fuel costs; and
 
•   Removing the existing limitations on fuel cost recovery.
     If forecasted 2007 fuel costs were used to set the 2007 PSA annual adjustor, the ACC staff estimated that the 2007 PSA annual adjustor would be set to recover approximately $157.4 million over the base rate level of fuel cost recovery recommended. For additional information regarding 2006 PSA-related rate increases, see “Power Supply Adjustor” in Note 5. For information regarding the ACC staff’s recommended disallowances of $17.4 million in PSA deferrals related to 2005 Palo Verde outages, which the ACC staff has requested the ACC to address in the general rate case, see “ACC Staff Report on 2005 Palo Verde

 

Outages” in Item 8.01 of the Pinnacle West/APS Report on Form 8-K filed with the Securities and Exchange Commission on August 18, 2006.
     Other Intervenors’ Recommendations
     Other intervenors in the rate case include the Arizona Residential Utility Consumer Office (“RUCO”), an office established by the Arizona legislature to represent the interests of residential utility consumers before the ACC; Arizonans for Electric Choice and Competition (“AECC”), a business coalition that advocates on behalf of retail electric customers in Arizona ; and Phelps Dodge Mining Company (“Phelps Dodge). In its filed testimony, RUCO recommended that the ACC increase APS’ annual retail electricity revenues by $232 million, which would result in a rate increase of approximately 10.89%. In jointly-filed testimony, AECC and Phelps Dodge recommended that the ACC reduce APS’ requested annual increase by at least $131 million.
     Procedural Schedule
     As required by the procedural schedule, the parties will file additional testimony in the next few weeks, including APS’ rebuttal testimony which is due September 15, 2006. Hearings in the rate case are scheduled to begin on October 10, 2006. We cannot predict the timing or the outcome of this rate case or the resulting levels of regulated revenues.

2

 

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: August 21, 2006
  By:   /s/ Donald E. Brandt
 
       
 
      Donald E. Brandt
 
      Executive Vice President and
 
      Chief Financial Officer
 
        
    ARIZONA PUBLIC SERVICE COMPANY
    (Registrant)
 
        
Dated: August 21, 2006
  By:   /s/ Donald E. Brandt
 
       
 
      Donald E. Brandt
 
      Executive Vice President and
Chief Financial Officer
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