EXHIBIT 99.10

PHOENIX – Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the year 2003 of $240.6 million, or $2.63 per diluted share of common stock. This result compares with $149.4 million, or $1.76 per share, for the year 2002. Arizona Public Service (APS) reported net income for 2003 of $180.9 million, compared with $199.3 million for 2002. APS’ on-going earnings were $168.7 million for 2003 versus $219.6 million for the prior year.

On-going consolidated earnings in 2003 were $223.4 million, or $2.44 per share, compared with $302.1 million, or $3.56 per share, for the prior year. On-going earnings exclude income tax credits related to prior years and recorded in 2003 of $17.2 million, or $0.19 per share; previously disclosed, non-recurring charges in 2002 totaling $87.0 million, or $1.03 per share; and a 2002 charge for the cumulative effect of an accounting change of $65.7 million, or $0.77 per share.

“Earnings for the year were in line with our guidance, and our operational performance and market area remained strong,” said Chairman Bill Post, citing vibrant customer growth of 3.3 percent, about three times the national average. In addition, retail electricity consumption hit record levels, with the Company experiencing a 9 percent increase in its peak demand and a 5 percent increase in total retail kilowatt-hour sales.

Looking forward, Post said, “The Company needs to achieve a constructive regulatory outcome in our pending rate case to cover the costs of providing reliable service for our retail customers.”

APS’ on-going earnings exclude income tax credits related to prior years and recorded in 2003 of $12.2 million, and previously disclosed, non-recurring severance charges in 2002 of $20.3 million. These lower results were due to deterioration in the western wholesale power market; higher hedged natural gas and purchased power prices; retail electricity price decreases; and other operating cost increases necessary to meet the growing demand of retail customers, which were partially offset by the effects of higher retail sales due to customer growth and favorable weather. These higher costs – and the Company’s investment in new power plants and other infrastructure – are currently under review by the Arizona Corporation Commission. A decision on their recovery in rates is anticipated before the end of 2004.

In addition to APS’ earnings variances, Pinnacle West’s consolidated results were impacted by deterioration in the western wholesale power markets; an increase in fixed costs related to placing new electricity-generating units into service in 2002 and 2003; and improved results from the Company’s unregulated subsidiaries.

Consistent with its accelerated asset sales program for 2003-2005, SunCor Development Co., Pinnacle West’s real estate subsidiary, delivered solid, on-plan performance, reporting 2003 net income of $56.1 million, compared with net income of $18.9 million for 2002.

For the 2003 fourth quarter, the Company reported consolidated net income of $49.1 million, or $0.54 per diluted share, compared with a net loss of $80.6 million, or $0.95 per share, in the comparable 2002 period. On-going consolidated earnings in the 2003 fourth quarter were $38.4 million, or $0.42 per share, compared with $44.5 million, or $0.52 per share. On-going earnings exclude income tax credits related to prior years and recorded in 2003 totaling $10.7 million, or $0.12 per share; previously disclosed, non-recurring charges in 2002’s fourth quarter totaling $59.4 million, or $0.70 per share; and a 2002 charge for the cumulative effect of a change in accounting of $65.7 million, or $0.77 per share. In addition, fourth quarter earnings reflect an increase in SunCor’s earnings of $29.4 million, or $0.33 per share, compared with the prior year’s same period.

All dollar amounts included in this release are reported after income tax effects. For more information on Pinnacle West’s operating statistics and earnings, please visit http://www.pinnaclewest.com/main/pnw/investors/default.html.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $9 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.

The Company will hold a conference call and live webcast at 11:30 a.m. (ET) today, Thursday, January 29 to discuss its earnings and recent events. The webcast can be accessed at http://www.pinnaclewest.com/main/pnw/investors/presentations/default.html and will be available for replay on the website for 30 days. To access the conference call by telephone, dial (877) 356-3961 and enter reservation number 4861194. A replay of the call also will be available until 12:00 midnight (ET), Thursday, February 5, 2004, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number.

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


		THREE MONTHS ENDED						TWELVE MONTHS ENDED
		December 31,						December 31,
		2003			2002			2003			2002

Operating Revenues
	Regulated electricity segment	$	432,246		$	405,915		$	1,978,075		$	1,890,391
	Marketing and trading segment		91,447			101,116			391,886			286,879
	Real estate segment		188,718			73,729			361,604			201,081
	Other revenues		21,793			33,555			86,287			61,937

	Total		734,204			614,315			2,817,852			2,440,288

Operating Expenses
	Regulated electricity segment purchased power and fuel		122,947			65,269			517,320			376,911
	Marketing and trading segment purchased power and fuel		81,661			72,175			344,862			154,987
	Operations and maintenance		140,244			193,674			548,732			584,538
	Real estate segment operations		148,677			62,706			305,974			185,925
	Depreciation and amortization		114,672			113,968			438,143			424,082
	Taxes other than income taxes		25,419			26,805			110,270			107,952
	Other expenses		19,118			65,843			70,498			104,959

			652,738			600,440			2,335,799			1,939,354

Operating Income			81,466			13,875			482,053			500,934

Other
	Allowance for equity funds used during construction		3,046			—			14,240			—
	Other income		21,967			4,771			35,563			14,910
	Other expense		(5,785	)		(6,868	)		(20,574	)		(33,655	)

	Total		19,228			(2,097	)		29,229			(18,745	)

Interest Expense
	Interest charges		53,051			46,974			204,590			187,512
	Capitalized interest		(5,383	)		(4,967	)		(29,444	)		(43,749	)

	Total		47,668			42,007			175,146			143,763

Income From Continuing Operations Before Income Taxes			53,026			(30,229	)		336,136			338,426
Income Taxes			7,030			(13,660	)		105,560			132,228

Income From Continuing Operations			45,996			(16,569	)		230,576			206,198
Income From Discontinued Operations — Net of Income Tax Expense			3,095			1,684			10,003			8,955
Cumulative Effect of a Change in Accounting for Trading Activities — Net of Income Tax Benefit			—			(65,745	)		—			(65,745	)

Net Income		$	49,091		$	(80,630	)	$	240,579		$	149,408

Weighted-Average Common Shares Outstanding — Basic			91,273			85,302			91,265			84,903
Weighted-Average Common Shares Outstanding — Diluted			91,403			85,302			91,405			84,964
Earnings Per Weighted-Average Common Share Outstanding
	Income From Continuing Operations — Basic	$	0.50		$	(0.19	)	$	2.53		$	2.43
	Net Income — Basic	$	0.54		$	(0.95	)	$	2.64		$	1.76
	Income From Continuing Operations — Diluted	$	0.50		$	(0.19	)	$	2.52		$	2.43
	Net Income — Diluted	$	0.54		$	(0.95	)	$	2.63		$	1.76

Certain prior year amounts have been restated to conform to the 2003 presentation.


FOR IMMEDIATE RELEASE		January 29, 2004
Media Contacts:	Alan Bunnell, (602) 250-3376	Page 1 of 2
Analyst Contacts:	Rebecca Hickman, (602) 250-5668
	Lisa Malagon, (602) 250-5671
Website:	www.pinnaclewest.com


PINNACLE WEST REPORTS 2003 EARNINGS		January 29, 2004
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