EXHIBIT 99.4

EX-99.4 6 p68708pexv99w4.htm EXHIBIT 99.4 EXHIBIT 99.4

Exhibit 99.4


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


																				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		$	32	$	64		$	87		$	16		$	199		$	(82	)
	2			Pinnacle West Energy			1		1			10			(31	)		(19	)		(37	)
	3			APS Energy Services			2		11			7			8			28			38
	4			SunCor			1		2			(1	)		8			10			7
	5			El Dorado			—		(3	)		(15	)		(37	)		(55	)		(55	)
	6			Parent Company			17		(6	)		13			19			43			8

	7				Income From Continuing Operations		53		69			101			(17	)		206			(121	)
	8	a		Income From Discontinued Operations - Net of Tax			1		6			—			2			9			9
	8	b		Cumulative Effect of Change in Accounting - Net of Tax			—		—			—			(66	)		(66	)		(51	)

	9				Net Income	$	54	$	75		$	101		$	(81	)	$	149		$	(163	)

			EARNINGS PER SHARE BY SUBSIDIARY - DILUTED
	10			Arizona Public Service		$	0.37	$	0.76		$	1.02		$	0.19		$	2.35		$	(0.95	)
	11			Pinnacle West Energy			0.01		0.01			0.12			(0.37	)		(0.23	)		(0.44	)
	12			APS Energy Services			0.03		0.13			0.08			0.09			0.33			0.45
	13			SunCor			0.02		0.02			(0.01	)		0.09			0.13			0.09
	14			El Dorado			—		(0.04	)		(0.18	)		(0.43	)		(0.65	)		(0.65	)
	15			Parent Company			0.20		(0.07	)		0.16			0.24			0.50			0.08

	16				Income From Continuing Operations		0.63		0.81			1.19			(0.19	)		2.43			(1.42	)
	17	a		Income From Discontinued Operations - Net of Tax			—		0.08			—			0.01			0.10			0.11
	17	a		Cumulative Effect of Change in Accounting - Net of Tax			—		—			—			(0.77	)		(0.77	)		(0.60	)

	18				Net Income	$	0.63	$	0.89		$	1.19		$	(0.95	)	$	1.76		$	(1.91	)

	19		BOOK VALUE PER SHARE			$	30.06	$	30.54		$	31.39		$	29.40		$	29.40		$	(0.06	)
			COMMON SHARES OUTSTANDING - DILUTED (Thousands)
	20			Average			84,884		84,926			84,797			85,302			84,964			34
	21			End of Period			84,789		84,768			84,756			91,255			91,255			6,531


See Glossary of Terms.		Page 1 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


																					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
	22			Residential		$	171		$	226		$	337		$	172		$	906		$	(9	)
	23			Business			195			251			270			212			928			(24	)

	24				Total retail		366			477			607			384			1,834			(33	)
			Wholesale revenue on delivered electricity
	25			Traditional contracts			2			1			3			3			9			(64	)
	26			Retail load hedge management			—			—			—			—			—			—
	27		Transmission for others				6			6			6			12			30			4
	28		Other miscellaneous services				4			2			4			7			17			(1	)

	29				Total regulated electricity		378			486			620			406			1,890			(94	)

		MARKETING AND TRADING SEGMENT
			Delivered marketing and trading
	30			Generation sales other than native load			8			2			8			32			50			(98	)
	31			Realized margins on electricity trading			28			13			8			1			50			(20	)
	32			Other delivered electricity (a)			21			31			45			71			168			36

	33			Total delivered marketing and trading			57			46			61			104			268			(82	)

		OTHER MARKETING AND TRADING
	34		Realized margins on delivered commodities other than electricity (a)				4			1			(3	)		6			8			22
	35		Prior period mark-to-market (gains) losses on contracts delivered during current period (a)				(22	)		(9	)		2			(8	)		(41	)		(47	)
	36		Change in mark-to-market for future-period deliveries				23			3			23			(1	)		52			(76	)

	37		Total other marketing and trading				5			(5	)		22			(3	)		19			(101	)

	38	Total marketing and trading					62			41			83			101			287			(183	)

	39	Total electric operating revenues				$	440		$	527		$	703		$	507		$	2,177		$	(277	)

(a) The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $41 million was transferred to “realized” for the total year 2002. Lines 31 and 34 include amounts totaling $41 million of realized revenues for the total year 2002.


See Glossary of Terms.		Page 2 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


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

		ELECTRIC SALES (GWH)
		REGULATED ELECTRICITY SEGMENT
			Retail sales
	40			Residential			2,141		2,441		3,806		2,056		10,444		109
	41			Business			2,771		3,429		3,681		3,036		12,917		(147	)

	42				Total retail		4,912		5,870		7,487		5,092		23,361		(38	)
			Wholesale electricity delivered
	43			Traditional contracts			71		121		142		140		474		(739	)
	44			Retail load hedge management			158		230		1,958		296		2,642		(398	)

	45				Total regulated electricity		5,141		6,221		9,587		5,528		26,477		(1,175	)

		MARKETING AND TRADING SEGMENT
			Delivered marketing and trading
	46			Generation sales other than native load			376		73		291		1,051		1,791		403
	47			Electricity trading			3,410		3,852		6,120		4,655		18,037		4,450
	48			Other delivered electricity			426		518		693		1,390		3,027		2,001

	49			Total delivered marketing and trading			4,212		4,443		7,104		7,096		22,855		6,854

	50	Total electric sales					9,353		10,664		16,691		12,624		49,332		5,679


See Glossary of Terms.		Page 3 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


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

		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
		Realized and Mark-To-Market Components
		Current Period Effects
			Realized margin on delivered commodities
				Electricity
	51				Generation sales other than native load	$	2		$	—		$	3		$	9		$	14		$	(66	)
	52				Other electricity marketing and trading (a)		33			24			19			23			99			(18	)

	53				Total electricity		35			24			22			32			113			(84	)
	54			Other commodities (a)			4			1			(3	)		6			8			22

	55			Total realized margin			39			25			19			38			121			(62	)

			Prior-period mark-to-market (gains) losses on contracts delivered during current period
	56			Electricity (a)			(16	)		(9	)		(4	)		(4	)		(30	)		(19	)
	57			Other commodities (a)			(6	)		—			6			(4	)		(11	)		(36	)
	58			Charge related to trading activities with Enron and its affiliates			—			—			—			—			—			8

	59			Subtotal			(22	)		(9	)		2			(8	)		(41	)		(47	)

	60		Total current period effects (b)				17			16			21			30			80			(109	)

		Change in mark-to-market gains (losses) for future period deliveries (b)
	61		Electricity				25			10			25			6			63			(83	)
	62		Other commodities				(2	)		(7	)		(2	)		(7	)		(11	)		7

	63		Total future period effects				23			3			23			(1	)		52			(76	)

	64	Total gross margin				$	40		$	19		$	44		$	29		$	132		$	(185	)

FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION

As of December 31, 2002, Pinnacle West had accumulated mark-to-market net gains of $41 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: 2003, $4 million; 2004, $10 million; 2005 and thereafter, $27 million.

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 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 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $30 million was transferred to “realized” for the total year 2002. A $30 million realized gain is included in the $99 million on line 52 for total year 2002.

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


See Glossary of Terms.		Page 4 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


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

		MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (continued) (Dollars in Millions)
		By Commodity Sold or Traded
	65	Electricity		$	45		$	25		$	43		$	34		$	147		$	(181	)
	66	Natural gas			(5	)		1			3			(5	)		(6	)		2
	67	Coal			(1	)		(2	)		1			—			(2	)		(9	)
	68	Emission allowances			1			(5	)		(3	)		—			(7	)		3
	69	Other			—			—			—			—			—			—

	70		Total gross margin	$	40		$	19		$	44		$	29		$	132		$	(185	)

		By Pinnacle West Entity
		Parent company marketing and trading division
	71		Generation sales other than native load	$	1		$	—		$	2		$	5		$	8		$	8
	72		Other marketing and trading		34			9			30			9			82			4
		APS
	73		Generation sales other than native load		1			—			1			—			2			(77	)
	74		Other marketing and trading		—			—			—			—			—			(156	)
		Pinnacle West Energy
	75		Generation sales other than native load		—			—			—			4			4			4
	76		Other marketing and trading		—			—			—			—			—			—
		APS ES
	77		Other marketing and trading		4			10			11			11			36			32

	78	Total gross margin before income taxes		$	40		$	19		$	44		$	29		$	132		$	(185	)


See Glossary of Terms.		Page 5 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


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

		AVERAGE ELECTRIC CUSTOMERS
		Retail customers
	79		Residential			801,000			795,681			798,590			811,930			801,801			25,462
	80		Business			99,335			100,096			100,318			101,177			100,228			2,030

	81			Total		900,335			895,777			898,908			913,107			902,029			27,492
	82	Wholesale customers				67			67			67			67			67			1

	83			Total customers		900,402			895,844			898,975			913,174			902,096			27,493

	84	Customer Growth (% over prior year)				3.2	%		3.2	%		3.1	%		3.2	%		3.1	%		(0.5	)%
		RETAIL SALES (GWH) - WEATHER NORMALIZED
	85	Residential				2,162			2,443			3,647			2,130			10,382			615
	86	Business				2,774			3,411			3,691			3,023			12,899			81

	87			Total		4,936			5,854			7,338			5,153			23,281			696

		RETAIL USAGE (KWh/Average Customer)
	88	Residential				2,673			3,068			4,766			2,532			13,025			(287	)
	89	Business				27,896			34,258			36,691			30,011			128,885			(4,152	)
		RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
	90	Residential				2,699			3,071			4,566			2,623			12,947			366
	91	Business				27,926			34,075			36,795			29,878			128,698			(1,834	)
		ELECTRICITY DEMAND (MW)
	92	System peak demand				3,921			5,425			5,803			3,828			5,803			116


See Glossary of Terms.				Page 6 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


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

		ENERGY SOURCES (GWH)
		Generation production
	93		Nuclear			2,257			2,242			2,387			2,095			8,981			596
	94		Coal			2,890			2,703			3,280			3,183			12,056			(516	)
	95		Gas, oil and other			337			659			1,918			1,455			4,369			375

	96			Total		5,484			5,604			7,585			6,733			25,406			455

		Purchased power
	97		Firm load			70			846			859			(157	)		1,619			(1,342	)
	98		Marketing and trading			3,993			4,599			8,771			6,340			23,704			6,051

	99			Total		4,063			5,445			9,630			6,183			25,323			4,709

	100			Total energy sources		9,547			11,049			17,215			12,916			50,729			5,164

		POWER PLANT PERFORMANCE
		Capacity Factors
	101		Nuclear			96	%		95	%		100	%		87	%		94	%		6	%
	102		Coal			78	%		72	%		87	%		84	%		80	%		(4	)%
	103		Gas, oil and other			12	%		20	%		38	%		29	%		27	%		(10	)%
	104		System average			62	%		62	%		69	%		60	%		63	%		(7	)%
		Generation Capacity Out of Service and Replaced for Native Load (average MW/day)
	105		Nuclear			62			66			12			129			67			(60	)
	106		Coal			184			279			88			116			167			—
	107		Gas			12			18			106			54			48			16
	108			Total		258			363			206			299			282			(44	)
	109	Generation Fuel Cost ($/MWh)			$	11.57		$	11.89		$	14.84		$	13.05		$	13.01		$	(3.21	)


See Glossary of Terms.				Page 7 of 8


		Last Updated		1/29/2004

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002


																				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
	110			Palo Verde	$	26.86		$	30.65		$	35.45		$	36.18		$	32.28		$	(86.13	)
	111			SP15	$	28.46		$	31.51		$	35.55		$	41.35		$	34.22		$	(85.77	)
			Off-Peak
	112			Palo Verde	$	22.17		$	14.10		$	18.21		$	25.09		$	19.89		$	(41.68	)
	113			SP15	$	22.76		$	15.95		$	19.54		$	28.52		$	21.69		$	(51.79	)
		WEATHER INDICATORS
		Actual
	114		Cooling degree-days			89			1,741			2,647			398			4,875			(247	)
	115		Heating degree-days			472			—			—			328			800			(360	)
	116		Average humidity			28	%		16	%		27	%		38	%		27	%		(9	)%
		10-Year Averages
	117		Cooling degree-days			77			1,478			2,489			395			4,439			—
	118		Heating degree-days			546			34			—			433			1,013			—
	119		Average humidity			45	%		25	%		34	%		40	%		36	%		0	%
		ECONOMIC INDICATORS
		Building Permits – Metro Phoenix (b)
	120		Single-family			7,682			9,666			8,689			8,275			34,312			1,447
	121		Multi-family			1,249			2,005			2,662			1,158			7,074			(1,930	)

	122		Total			8,931			11,671			11,351			9,433			41,386			(483	)

		Arizona Job Growth (c)
	123		Payroll job growth (% over prior year)			(0.8	)%		(0.2	)%		0.1	%		0.9	%		0.0	%		(1.0	)%
	124		Unemployment rate (%, seasonally adjusted)			6.2	%		6.2	%		6.2	%		6.0	%		6.2	%		1.5	%

Sources:

(a)		This price is an 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 8 of 8


(a)		The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $41 million was transferred to “realized” for the total year 2002. Lines 31 and 34 include amounts totaling $41 million of realized revenues for the total year 2002.


(a)		The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 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 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $30 million was transferred to “realized” for the total year 2002. A $30 million realized gain is included in the $99 million on line 52 for total year 2002.

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