Table of Contents

 
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): September 30, 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	 	86-0512431	
 	 	(an Arizona corporation)	 	 	
 	 	400 North Fifth Street, P.O. Box 53999	 	 	
 	 	Phoenix, AZ 85072-3999	 	 	
 	 	(602) 250-1000	 	 	
 	 	 	 	 	
1-4473	 	Arizona Public Service Company	 	86-0011170	
 	 	(an Arizona corporation)	 	 	
 	 	400 North Fifth Street, P.O. Box 53999	 	 	
 	 	Phoenix, AZ 85072-3999	 	 	
 	 	(602) 250-1000	 	 	
      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	
  EX-99.1	
  EX-99.2	
  EX-99.3	
  EX-99.4	
  EX-99.5	
  EX-99.6	
  EX-99.7	
  EX-99.8	
  EX-99.9	
  EX-99.10	
  EX-99.11	

Table of Contents
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 the three and nine months ended September 30, 2006. This Information is attached hereto as Exhibits 99.2, 99.3 99.7, 99.9, 99.10 and 99.11.
      On October 27, 2006, the Company issued a press release regarding its financial results for the three and nine months ended September 30, 2006. A copy of the press release is attached hereto as Exhibit 99.9.
      The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3 99.7, 99.9, 99.10 and 99.11 of this report relating to the Company’s financial results for the three and nine months ended September 30, 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.
      Exhibit 99.9 to this report contains certain “non-GAAP financial measures,” as defined in Item 10(e) of Regulation S-K of the Exchange Act. We describe these non-GAAP financial measures as “on-going earnings” and “on-going earnings per share.” Exhibit 99.9 contains a table that reconciles each of these non-GAAP financial measures to net income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe on-going earnings provide investors with a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items that may occur on an irregular basis. Investors should note that these non-GAAP financial measures involve judgments by management, including whether an item is classified as an unusual item. We use on-going earnings, or similar concepts, to measure our performance internally in reports for management.
 2 

Table of Contents
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, 99.7, 99.8, 99.10 and 99.11). 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.
 3 

Table of Contents
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 nine-month periods ended September 30, 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	 	Pinnacle West Capital Corporation earnings variance explanations for the three and nine months ended September 30, 2006 and 2005 and condensed consolidated statements of income for the three and nine months ended September 30, 2006 and 2005.	
 	 	 	 	 	
99.8 	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	
99.9 	 	Pinnacle West
APS	 	Earnings News Release issued on October 27, 2006.	
 	 	 	 	 	
99.10 	 	Pinnacle West
APS	 	Non-GAAP Financial Measure Reconciliation-Operating Income (GAAP Measure) to Gross Margin (Non-GAAP Financial Measure).	
 	 	 	 	 	
99.11 	 	Pinnacle West
APS	 	Non-GAAP Financial Measure Reconciliation-Net Income (GAAP Measure) to On-Going Earnings (Non-GAAP Financial Measure).	
 4 

Table of Contents
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: October 27, 2006 	By:  	/s/ Barbara M. Gomez  	 	
 	 	Barbara M. Gomez 	 	
 	 	Vice President and Treasurer 	 	
 	
 	ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
 	 	
Dated: October 27, 2006 	By:  	/s/ Barbara M. Gomez  	 	
 	 	Barbara M. Gomez 	 	
 	 	Vice President and Treasurer 	 	
 	
 5 

Exhibit 99.1
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
List of Contents
2006 Third 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/2006Q3QuarStatsGloss.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

 

Exhibit 99.2
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	169	 	 	$	61	 	 	$	108	 	 	$	257	 	 	$	152	 	 	$	105	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	(71	)	 	 	71	 	 	 	—	 	 	 	(80	)	 	 	80	 	
3	 	APS Energy Services	 	 	(2	)	 	 	—	 	 	 	(2	)	 	 	(1	)	 	 	(3	)	 	 	2	 	
4	 	SunCor	 	 	17	 	 	 	7	 	 	 	10	 	 	 	47	 	 	 	26	 	 	 	21	 	
5	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(1	)	 	 	(1	)	
6	 	Parent Company	 	 	—	 	 	 	88	 	 	 	(88	)	 	 	6	 	 	 	105	 	 	 	(99	)	

7	 	Income From Continuing Operations	 	 	184	 	 	 	85	 	 	 	99	 	 	 	307	 	 	 	199	 	 	 	108	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	—	 	 	 	19	 	 	 	(19	)	 	 	2	 	 	 	(44	)	 	 	46	 	
9	 	Cumulative Effect of Change in Accounting — Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Net Income	 	$	184	 	 	$	104	 	 	$	80	 	 	$	309	 	 	$	155	 	 	$	154	 	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Arizona Public Service	 	$	1.69	 	 	$	0.62	 	 	$	1.07	 	 	$	2.57	 	 	$	1.59	 	 	$	0.98	 	
12	 	Pinnacle West Energy	 	 	—	 	 	 	(0.72	)	 	 	0.72	 	 	 	—	 	 	 	(0.83	)	 	 	0.83	 	
13	 	APS Energy Services	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	 	 	(0.01	)	 	 	(0.03	)	 	 	0.02	 	
14	 	SunCor	 	 	0.17	 	 	 	0.07	 	 	 	0.10	 	 	 	0.47	 	 	 	0.27	 	 	 	0.20	 	
15	 	El Dorado	 	 	—	 	 	 	(0.01	)	 	 	0.01	 	 	 	(0.02	)	 	 	(0.01	)	 	 	(0.01	)	
16	 	Parent Company	 	 	—	 	 	 	0.90	 	 	 	(0.90	)	 	 	0.06	 	 	 	1.09	 	 	 	(1.03	)	

17	 	Income From Continuing Operations	 	 	1.84	 	 	 	0.86	 	 	 	0.98	 	 	 	3.07	 	 	 	2.08	 	 	 	0.99	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	—	 	 	 	0.19	 	 	 	(0.19	)	 	 	0.03	 	 	 	(0.46	)	 	 	0.49	 	
19	 	Cumulative Effect of Change in Accounting — Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Net Income	 	$	1.84	 	 	$	1.05	 	 	$	0.79	 	 	$	3.10	 	 	$	1.62	 	 	$	1.48	 	

21	 	BOOK VALUE PER SHARE	 	$	34.07	*	 	$	35.81	 	 	$	(1.74	)	 	$	34.07	*	 	$	35.81	 	 	 	(1.74	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Average — Diluted	 	 	99,973	 	 	 	98,816	 	 	 	1,157	 	 	 	99,723	 	 	 	95,755	 	 	 	3,968	 	
23	 	End of Period	 	 	99,648	 	 	 	98,881	 	 	 	767	 	 	 	99,648	 	 	 	98,881	 	 	 	767	 	

*	 	Estimate	
See Glossary of Terms
 Page 2 of 31 

 

Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Residential	 	$	490	 	 	$	414	 	 	$	76	 	 	$	1,029	 	 	$	872	 	 	$	157	 	
25	 	Business	 	 	371	 	 	 	308	 	 	 	63	 	 	 	937	 	 	 	798	 	 	 	139	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Total retail	 	 	861	 	 	 	722	 	 	 	139	 	 	 	1,966	 	 	 	1,670	 	 	 	296	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
27	 	Traditional contracts	 	 	12	 	 	 	9	 	 	 	3	 	 	 	25	 	 	 	17	 	 	 	8	 	
28	 	Off-system sales	 	 	—	 	 	 	8	 	 	 	(8	)	 	 	34	 	 	 	20	 	 	 	14	 	
29	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	—	 	 	 	19	 	 	 	21	 	 	 	(2	)	
30	 	Other miscellaneous services	 	 	7	 	 	 	7	 	 	 	—	 	 	 	22	 	 	 	21	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Total regulated operating electricity revenues	 	 	887	 	 	 	753	 	 	 	134	 	 	 	2,066	 	 	 	1,749	 	 	 	317	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
32	 	Electricity and other commodity sales	 	 	85	 	 	 	107	 	 	 	(22	)	 	 	259	 	 	 	267	 	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total operating electric revenues	 	$	972	 	 	$	860	 	 	$	112	 	 	$	2,325	 	 	$	2,016	 	 	$	309	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Residential	 	 	4,720	 	 	 	4,449	 	 	 	271	 	 	 	10,423	 	 	 	9,705	 	 	 	718	 	
35	 	Business	 	 	4,222	 	 	 	4,100	 	 	 	122	 	 	 	11,392	 	 	 	10,826	 	 	 	566	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Total retail	 	 	8,942	 	 	 	8,549	 	 	 	393	 	 	 	21,815	 	 	 	20,531	 	 	 	1,284	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Traditional contracts	 	 	321	 	 	 	269	 	 	 	52	 	 	 	717	 	 	 	624	 	 	 	93	 	
38	 	Off-system sales	 	 	300	 	 	 	212	 	 	 	88	 	 	 	1,497	 	 	 	810	 	 	 	687	 	
39	 	Retail load hedge management	 	 	622	 	 	 	1,026	 	 	 	(404	)	 	 	1,227	 	 	 	2,478	 	 	 	(1,251	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total regulated electricity	 	 	10,185	 	 	 	10,056	 	 	 	129	 	 	 	25,256	 	 	 	24,443	 	 	 	813	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Wholesale sales of electricity	 	 	4,841	 	 	 	7,263	 	 	 	(2,422	)	 	 	12,594	 	 	 	18,332	 	 	 	(5,738	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total electric sales	 	 	15,026	 	 	 	17,319	 	 	 	(2,293	)	 	 	37,850	 	 	 	42,775	 	 	 	(4,925	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
See Glossary of Terms
 Page 3 of 31 

 

Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Deferred fuel and purchased power regulatory asset - beginning balance	 	$	175	 	 	$	38	 	 	$	137	 	 	$	173	 	 	$	—	 	 	$	173	 	
44	 	Deferred fuel and purchased power costs — current period	 	 	134	 	 	 	104	 	 	 	30	 	 	 	225	 	 	 	142	 	 	 	83	 	
45	 	Interest on deferred fuel	 	 	2	 	 	 	1	 	 	 	1	 	 	 	6	 	 	 	1	 	 	 	5	 	
46	 	Amounts recovered through revenues	 	 	(102	)	 	 	—	 	 	 	(102	)	 	 	(195	)	 	 	—	 	 	 	(195	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset - ending balance	 	$	209	 	 	$	143	 	 	$	66	 	 	$	209	 	 	$	143	 	 	$	66	 	

 	 	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)	 	$	8	 	 	$	3	 	 	$	5	 	 	$	36	 	 	$	33	 	 	$	3	 	
49	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(1	)	 	 	3	 	 	 	(4	)	 	 	(3	)	 	 	(5	)	 	 	2	 	
50	 	Change in mark-to-market value of forward sales	 	 	(3	)	 	 	14	 	 	 	(17	)	 	 	(2	)	 	 	24	 	 	 	(26	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Total gross margin	 	$	4	 	 	$	20	 	 	$	(16	)	 	$	31	 	 	$	52	 	 	$	(21	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Parent company marketing and trading division	 	$	5	 	 	$	26	 	 	$	(21	)	 	$	15	 	 	$	53	 	 	$	(38	)	
53	 	APS	 	 	(3	)	 	 	(8	)	 	 	5	 	 	 	8	 	 	 	(9	)	 	 	17	 	
54	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	(5	)	
55	 	APS Energy Services	 	 	2	 	 	 	2	 	 	 	—	 	 	 	8	 	 	 	3	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	4	 	 	$	20	 	 	$	(16	)	 	$	31	 	 	$	52	 	 	$	(21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 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, $8 million; 2007, $17 million; and 2008, $15 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 third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third 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 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	Residential	 	 	935,523	 	 	 	895,789	 	 	 	39,734	 	 	 	932,241	 	 	 	891,422	 	 	 	40,819	 	
58	 	Business	 	 	116,009	 	 	 	111,648	 	 	 	4,361	 	 	 	114,794	 	 	 	110,700	 	 	 	4,094	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total	 	 	1,051,532	 	 	 	1,007,437	 	 	 	44,095	 	 	 	1,047,035	 	 	 	1,002,122	 	 	 	44,913	 	
60	 	Wholesale customers	 	 	76	 	 	 	78	 	 	 	(2	)	 	 	76	 	 	 	78	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total customers	 	 	1,051,608	 	 	 	1,007,515	 	 	 	44,093	 	 	 	1,047,111	 	 	 	1,002,200	 	 	 	44,911	 	

62	 	Customer growth (% over prior year)	 	 	4.4	%	 	 	4.5	%	 	 	(0.1	)%	 	 	4.5	%	 	 	4.2	%	 	 	0.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) — WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	4,776	 	 	 	4,421	 	 	 	355	 	 	 	10,395	 	 	 	9,765	 	 	 	630	 	
64	 	Business	 	 	4,232	 	 	 	4,120	 	 	 	112	 	 	 	11,410	 	 	 	10,871	 	 	 	539	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	9,008	 	 	 	8,541	 	 	 	467	 	 	 	21,805	 	 	 	20,636	 	 	 	1,169	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Residential	 	 	5,045	 	 	 	4,967	 	 	 	78	 	 	 	11,181	 	 	 	10,887	 	 	 	294	 	
67	 	Business	 	 	36,394	 	 	 	36,723	 	 	 	(329	)	 	 	99,238	 	 	 	97,795	 	 	 	1,443	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	5,105	 	 	 	4,935	 	 	 	170	 	 	 	11,151	 	 	 	10,954	 	 	 	197	 	
69	 	Business	 	 	36,477	 	 	 	36,899	 	 	 	(422	)	 	 	99,395	 	 	 	98,202	 	 	 	1,193	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	System peak demand	 	 	7,652	 	 	 	7,000	 	 	 	652	 	 	 	7,652	 	 	 	7,000	 	 	 	652	 	
See Glossary of Terms
 Page 5 of 31 

 

Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Nuclear	 	 	2,202	 	 	 	2,147	 	 	 	55	 	 	 	5,120	 	 	 	6,013	 	 	 	(893	)	
72	 	Coal	 	 	3,574	 	 	 	3,574	 	 	 	—	 	 	 	9,839	 	 	 	9,602	 	 	 	237	 	
73	 	Gas, oil and other	 	 	2,433	 	 	 	3,064	 	 	 	(631	)	 	 	5,756	 	 	 	6,321	 	 	 	(565	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Total generation production	 	 	8,209	 	 	 	8,785	 	 	 	(576	)	 	 	20,715	 	 	 	21,936	 	 	 	(1,221	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	Firm load	 	 	1,962	 	 	 	1,589	 	 	 	373	 	 	 	4,067	 	 	 	3,055	 	 	 	1,012	 	
76	 	Marketing and trading	 	 	5,607	 	 	 	7,795	 	 	 	(2,188	)	 	 	14,912	 	 	 	19,611	 	 	 	(4,699	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total purchased power	 	 	7,569	 	 	 	9,384	 	 	 	(1,815	)	 	 	18,979	 	 	 	22,666	 	 	 	(3,687	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Total energy sources	 	 	15,778	 	 	 	18,169	 	 	 	(2,391	)	 	 	39,694	 	 	 	44,602	 	 	 	(4,908	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Nuclear	 	 	88	%	 	 	88	%	 	 	0	%	 	 	69	%	 	 	83	%	 	 	(14	)%	
80	 	Coal	 	 	94	%	 	 	95	%	 	 	(1	)%	 	 	87	%	 	 	86	%	 	 	1	%	
81	 	Gas, oil and other	 	 	34	%	 	 	39	%	 	 	(5	)%	 	 	26	%	 	 	29	%	 	 	(3	)%	
82	 	System average	 	 	61	%	 	 	62	%	 	 	(1	)%	 	 	51	%	 	 	54	%	 	 	(3	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Nuclear	 	 	97	 	 	 	107	 	 	 	(10	)	 	 	119	 	 	 	163	 	 	 	(44	)	
84	 	Coal	 	 	62	 	 	 	47	 	 	 	15	 	 	 	62	 	 	 	162	 	 	 	(100	)	
85	 	Gas	 	 	109	 	 	 	140	 	 	 	(31	)	 	 	53	 	 	 	172	 	 	 	(119	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	268	 	 	 	294	 	 	 	(26	)	 	 	234	 	 	 	497	 	 	 	(263	)	

			
(a)	 	Includes planned and unplanned outages	
See Glossary of Terms
 Page 6 of 31 

 

Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended September	 	 	9 Mo. Ended September	 	
Line	 	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	 	2006	 	 	2005	 	 	Incr (Decr)	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
87	 	Palo Verde	 	$	65.89	 	 	$	78.94	 	 	$	(13.05	)	 	$	58.10	 	 	$	60.67	 	 	$	(2.57	)	
88	 	SP15	 	$	71.89	 	 	$	83.21	 	 	$	(11.32	)	 	$	61.87	 	 	$	64.70	 	 	$	(2.83	)	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Palo Verde	 	$	38.45	 	 	$	52.35	 	 	$	(13.90	)	 	$	36.25	 	 	$	40.81	 	 	$	(4.56	)	
90	 	SP15	 	$	43.94	 	 	$	56.08	 	 	$	(12.14	)	 	$	38.82	 	 	$	43.92	 	 	$	(5.10	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Cooling degree-days	 	 	2,455	 	 	 	2,583	 	 	 	(128	)	 	 	4,238	 	 	 	4,155	 	 	 	83	 	
92	 	Heating degree-days	 	 	—	 	 	 	—	 	 	 	—	 	 	 	468	 	 	 	458	 	 	 	10	 	
93	 	Average humidity	 	 	33	%	 	 	29	%	 	 	4	%	 	 	26	%	 	 	35	%	 	 	(9	)%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Cooling degree-days	 	 	2,541	 	 	 	2,541	 	 	 	—	 	 	 	4,187	 	 	 	4,187	 	 	 	—	 	
95	 	Heating degree-days	 	 	—	 	 	 	—	 	 	 	—	 	 	 	545	 	 	 	545	 	 	 	—	 	
96	 	Average humidity	 	 	33	%	 	 	33	%	 	 	0	%	 	 	32	%	 	 	32	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Single-family	 	 	4,397	 	 	 	8,000	 	 	 	(3,603	)	 	 	21,996	 	 	 	30,369	 	 	 	(8,373	)	
98	 	Multi-family	 	 	2,031	 	 	 	2,038	 	 	 	(7	)	 	 	7,894	 	 	 	5,424	 	 	 	2,470	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total	 	 	6,428	 	 	 	10,038	 	 	 	(3,610	)	 	 	29,890	 	 	 	35,793	 	 	 	(5,903	)	

 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Payroll job growth (% over prior year)	 	 	4.7	%	 	 	6.1	%	 	 	(1.4	)%	 	 	5.1	%	 	 	5.4	%	 	 	(0.3	)%	
101	 	Unemployment rate (%, seasonally adjusted)	 	 	4.2	%	 	 	4.8	%	 	 	(0.6	)%	 	 	4.3	%	 	 	4.7	%	 	 	(0.4	)%	

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 August 31, 2006.	
See Glossary of Terms
 Page 7 of 31 

Exhibit 99.3
Last Updated 10/27/2006
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	)	 	$	94	 	 	$	169	 	 	 	 	 	 	$	257	 	 	$	105	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	80	 	
3	 	APS Energy Services	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	 	 	 	 	(1	)	 	 	2	 	
4	 	SunCor	 	 	21	 	 	 	8	 	 	 	17	 	 	 	 	 	 	 	47	 	 	 	21	 	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(2	)	 	 	(1	)	
6	 	Parent Company	 	 	(3	)	 	 	9	 	 	 	—	 	 	 	 	 	 	 	6	 	 	 	(99	)	

7	 	Income From Continuing Operations	 	 	12	 	 	 	111	 	 	 	184	 	 	 	—	 	 	 	307	 	 	 	108	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	—	 	 	 	1	 	 	 	—	 	 	 	 	 	 	 	2	 	 	 	46	 	
9	 	Cumulative Effect of Change in Accounting — Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Net Income	 	$	12	 	 	$	112	 	 	$	184	 	 	$	—	 	 	$	309	 	 	$	154	 	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Arizona Public Service	 	$	(0.06	)	 	$	0.95	 	 	$	1.69	 	 	 	 	 	 	$	2.57	 	 	$	0.98	 	
12	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	0.83	 	
13	 	APS Energy Services	 	 	0.01	 	 	 	—	 	 	 	(0.02	)	 	 	 	 	 	 	(0.01	)	 	 	0.02	 	
14	 	SunCor	 	 	0.21	 	 	 	0.08	 	 	 	0.17	 	 	 	 	 	 	 	0.47	 	 	 	0.20	 	
15	 	El Dorado	 	 	(0.01	)	 	 	—	 	 	 	—	 	 	 	 	 	 	 	(0.02	)	 	 	(0.01	)	
16	 	Parent Company	 	 	(0.03	)	 	 	0.08	 	 	 	—	 	 	 	 	 	 	 	0.06	 	 	 	(1.03	)	

17	 	Income From Continuing Operations	 	 	0.12	 	 	 	1.11	 	 	 	1.84	 	 	 	—	 	 	 	3.07	 	 	 	0.99	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	0.01	 	 	 	0.02	 	 	 	—	 	 	 	 	 	 	 	0.03	 	 	 	0.49	 	
19	 	Cumulative Effect of Change in Accounting — Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Net Income	 	$	0.13	 	 	$	1.13	 	 	$	1.84	 	 	$	—	 	 	$	3.10	 	 	$	1.48	 	

21	 	BOOK VALUE PER SHARE	 	$	32.37	 	 	$	33.08	 	 	$	34.07	*	 	 	 	 	 	$	34.07	*	 	 	(1.74	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Average — Diluted	 	 	99,449	 	 	 	99,640	 	 	 	99,973	 	 	 	 	 	 	 	99,723	 	 	 	3,968	 	
23	 	End of Period	 	 	99,187	 	 	 	99,284	 	 	 	99,648	 	 	 	 	 	 	 	99,648	 	 	 	767	 	

*	 	Estimate	
See Glossary of Terms
 Page 8 of 31 

 

Last Updated 10/27/2006
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	 	 	$	337	 	 	$	490	 	 	 	 	 	 	$	1,029	 	 	$	157	 	
25	 	Business	 	 	233	 	 	 	333	 	 	 	371	 	 	 	 	 	 	 	937	 	 	 	139	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Total retail	 	 	435	 	 	 	670	 	 	 	861	 	 	 	—	 	 	 	1,966	 	 	 	296	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
27	 	Traditional contracts	 	 	6	 	 	 	7	 	 	 	12	 	 	 	 	 	 	 	25	 	 	 	8	 	
28	 	Off-system sales	 	 	12	 	 	 	22	 	 	 	—	 	 	 	 	 	 	 	34	 	 	 	14	 	
29	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	7	 	 	 	 	 	 	 	19	 	 	 	(2	)	
30	 	Other miscellaneous services	 	 	7	 	 	 	8	 	 	 	7	 	 	 	 	 	 	 	22	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Total regulated operating electricity revenues	 	 	466	 	 	 	713	 	 	 	887	 	 	 	—	 	 	 	2,066	 	 	 	317	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
32	 	Electricity and other commodity sales	 	 	85	 	 	 	90	 	 	 	85	 	 	 	 	 	 	 	259	 	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total operating electric revenues	 	$	551	 	 	$	803	 	 	$	972	 	 	$	—	 	 	$	2,325	 	 	$	309	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Residential	 	 	2,419	 	 	 	3,284	 	 	 	4,720	 	 	 	 	 	 	 	10,423	 	 	 	718	 	
35	 	Business	 	 	3,199	 	 	 	3,971	 	 	 	4,222	 	 	 	 	 	 	 	11,392	 	 	 	566	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Total retail	 	 	5,618	 	 	 	7,255	 	 	 	8,942	 	 	 	—	 	 	 	21,815	 	 	 	1,284	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Traditional contracts	 	 	215	 	 	 	181	 	 	 	321	 	 	 	 	 	 	 	717	 	 	 	93	 	
38	 	Off-system sales	 	 	927	 	 	 	270	 	 	 	300	 	 	 	 	 	 	 	1,497	 	 	 	687	 	
39	 	Retail load hedge management	 	 	90	 	 	 	515	 	 	 	622	 	 	 	 	 	 	 	1,227	 	 	 	(1,251	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total regulated electricity	 	 	6,850	 	 	 	8,221	 	 	 	10,185	 	 	 	—	 	 	 	25,256	 	 	 	813	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Wholesale sales of electricity	 	 	3,891	 	 	 	3,862	 	 	 	4,841	 	 	 	 	 	 	 	12,594	 	 	 	(5,738	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total electric sales	 	 	10,741	 	 	 	12,083	 	 	 	15,026	 	 	 	—	 	 	 	37,850	 	 	 	(4,925	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
See Glossary of Terms
 Page 9 of 31 

 

Last Updated 10/27/2006
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	 	 	$	169	 	 	$	175	 	 	 	 	 	 	$	173	 	 	$	173	 	
44	 	Deferred fuel and purchased power costs — current period	 	 	13	 	 	 	78	 	 	 	134	 	 	 	 	 	 	 	225	 	 	 	83	 	
45	 	Interest on deferred fuel	 	 	1	 	 	 	3	 	 	 	2	 	 	 	 	 	 	 	6	 	 	 	5	 	
46	 	Amounts recovered through revenues	 	 	(18	)	 	 	(75	)	 	 	(102	)	 	 	 	 	 	 	(195	)	 	 	(195	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	169	 	 	$	175	 	 	$	209	 	 	$	—	 	 	$	209	 	 	$	66	 	

 	 	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	 	 	$	17	 	 	$	8	 	 	 	 	 	 	$	36	 	 	$	3	 	
49	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	 	 	 	 	(3	)	 	 	2	 	
50	 	Change in mark-to-market value of forward sales	 	 	1	 	 	 	—	 	 	 	(3	)	 	 	 	 	 	 	(2	)	 	 	(26	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Total gross margin	 	$	11	 	 	$	16	 	 	$	4	 	 	$	—	 	 	$	31	 	 	$	(21	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Parent company marketing and trading division	 	$	(2	)	 	$	11	 	 	$	5	 	 	 	 	 	 	$	15	 	 	$	(38	)	
53	 	APS	 	 	10	 	 	 	2	 	 	 	(3	)	 	 	 	 	 	 	8	 	 	 	17	 	
54	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	 	 	 	 	—	 	 	 	(5	)	
55	 	APS Energy Services	 	 	3	 	 	 	3	 	 	 	2	 	 	 	 	 	 	 	8	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	11	 	 	$	16	 	 	$	4	 	 	$	—	 	 	$	31	 	 	$	(21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 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, $8 million; 2007, $17 million; and 2008, $15 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 third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third 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 10/27/2006
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	 	 	 	930,402	 	 	 	935,523	 	 	 	 	 	 	 	932,241	 	 	 	40,819	 	
58	 	Business	 	 	113,570	 	 	 	114,803	 	 	 	116,009	 	 	 	 	 	 	 	114,794	 	 	 	4,094	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total	 	 	1,044,369	 	 	 	1,045,205	 	 	 	1,051,532	 	 	 	—	 	 	 	1,047,035	 	 	 	44,913	 	
60	 	Wholesale customers	 	 	75	 	 	 	76	 	 	 	76	 	 	 	 	 	 	 	76	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total customers	 	 	1,044,444	 	 	 	1,045,281	 	 	 	1,051,608	 	 	 	—	 	 	 	1,047,111	 	 	 	44,911	 	

62	 	Customer growth (% over prior year)	 	 	4.5	%	 	 	4.6	%	 	 	4.4	%	 	 	 	 	 	 	4.5	%	 	 	0.3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	2,514	 	 	 	3,105	 	 	 	4,776	 	 	 	 	 	 	 	10,395	 	 	 	630	 	
64	 	Business	 	 	3,252	 	 	 	3,926	 	 	 	4,232	 	 	 	 	 	 	 	11,410	 	 	 	539	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	5,766	 	 	 	7,031	 	 	 	9,008	 	 	 	—	 	 	 	21,805	 	 	 	1,169	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Residential	 	 	2,763	 	 	 	3,530	 	 	 	5,045	 	 	 	 	 	 	 	11,181	 	 	 	294	 	
67	 	Business	 	 	30,444	 	 	 	34,590	 	 	 	36,394	 	 	 	 	 	 	 	99,238	 	 	 	1,443	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	2,700	 	 	 	3,337	 	 	 	5,105	 	 	 	 	 	 	 	11,151	 	 	 	197	 	
69	 	Business	 	 	28,636	 	 	 	34,194	 	 	 	36,477	 	 	 	 	 	 	 	99,395	 	 	 	1,193	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	System peak demand	 	 	4,205	 	 	 	6,624	 	 	 	7,652	 	 	 	 	 	 	 	7,652	 	 	 	652	 	
See Glossary of Terms
 Page 11 of 31 

 

Last Updated 10/27/2006
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	 	 	 	1,198	 	 	 	2,202	 	 	 	 	 	 	 	5,120	 	 	 	(893	)	
72	 	Coal	 	 	3,083	 	 	 	3,182	 	 	 	3,574	 	 	 	 	 	 	 	9,839	 	 	 	237	 	
73	 	Gas, oil and other	 	 	1,323	 	 	 	2,000	 	 	 	2,433	 	 	 	 	 	 	 	5,756	 	 	 	(565	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Total generation production	 	 	6,126	 	 	 	6,380	 	 	 	8,209	 	 	 	—	 	 	 	20,715	 	 	 	(1,221	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	Firm load	 	 	365	 	 	 	1,740	 	 	 	1,962	 	 	 	 	 	 	 	4,067	 	 	 	1,012	 	
76	 	Marketing and trading	 	 	4,759	 	 	 	4,546	 	 	 	5,607	 	 	 	 	 	 	 	14,912	 	 	 	(4,699	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total purchased power	 	 	5,124	 	 	 	6,286	 	 	 	7,569	 	 	 	—	 	 	 	18,979	 	 	 	(3,687	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Total energy sources	 	 	11,250	 	 	 	12,666	 	 	 	15,778	 	 	 	—	 	 	 	39,694	 	 	 	(4,908	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Nuclear	 	 	71	%	 	 	49	%	 	 	88	%	 	 	 	 	 	 	69	%	 	 	(14	)%	
80	 	Coal	 	 	83	%	 	 	84	%	 	 	94	%	 	 	 	 	 	 	87	%	 	 	1	%	
81	 	Gas, oil and other	 	 	18	%	 	 	28	%	 	 	34	%	 	 	 	 	 	 	26	%	 	 	(3	)%	
82	 	System average	 	 	46	%	 	 	48	%	 	 	61	%	 	 	 	 	 	 	51	%	 	 	(3	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Nuclear	 	 	306	 	 	 	553	 	 	 	97	 	 	 	 	 	 	 	119	 	 	 	(44	)	
84	 	Coal	 	 	257	 	 	 	184	 	 	 	62	 	 	 	 	 	 	 	62	 	 	 	(100	)	
85	 	Gas	 	 	201	 	 	 	117	 	 	 	109	 	 	 	 	 	 	 	53	 	 	 	(119	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	764	 	 	 	854	 	 	 	268	 	 	 	—	 	 	 	234	 	 	 	(203	)	

			
(a)	 	Includes planned and unplanned outages	
See Glossary of Terms
 Page 12 of 31 

 

Last Updated 10/27/2006
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	 	 	$	54.63	 	 	$	65.89	 	 	 	 	 	 	$	58.10	 	 	$	(2.57	)	
88	 	SP15	 	$	58.34	 	 	$	55.39	 	 	$	71.89	 	 	 	 	 	 	$	61.87	 	 	$	(2.83	)	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Palo Verde	 	$	41.92	 	 	$	28.38	 	 	$	38.45	 	 	 	 	 	 	$	36.25	 	 	$	(4.56	)	
90	 	SP15	 	$	44.79	 	 	$	27.73	 	 	$	43.94	 	 	 	 	 	 	$	38.82	 	 	$	(5.10	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Cooling degree-days	 	 	43	 	 	 	1,740	 	 	 	2,455	 	 	 	 	 	 	 	4,238	 	 	 	83	 	
92	 	Heating degree-days	 	 	464	 	 	 	4	 	 	 	—	 	 	 	 	 	 	 	468	 	 	 	10	 	
93	 	Average humidity	 	 	28	%	 	 	18	%	 	 	33	%	 	 	 	 	 	 	26	%	 	 	(9	)%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Cooling degree-days	 	 	99	 	 	 	1,547	 	 	 	2,541	 	 	 	 	 	 	 	4,187	 	 	 	—	 	
95	 	Heating degree-days	 	 	514	 	 	 	31	 	 	 	—	 	 	 	 	 	 	 	545	 	 	 	—	 	
96	 	Average humidity	 	 	41	%	 	 	23	%	 	 	33	%	 	 	 	 	 	 	32	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Single-family	 	 	8,716	 	 	 	8,883	 	 	 	4,397	 	 	 	 	 	 	 	21,996	 	 	 	(8,373	)	
98	 	Multi-family	 	 	2,887	 	 	 	2,976	 	 	 	2,031	 	 	 	 	 	 	 	7,894	 	 	 	2,470	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total	 	 	11,603	 	 	 	11,859	 	 	 	6,428	 	 	 	—	 	 	 	29,890	 	 	 	(5,903	)	

 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Payroll job growth (% over prior year)	 	 	5.6	%	 	 	4.8	%	 	 	4.7	%	 	 	 	 	 	 	5.1	%	 	 	(0.3	)%	
101	 	Unemployment rate (%, seasonally adjusted)	 	 	4.4	%	 	 	4.3	%	 	 	4.2	%	 	 	 	 	 	 	4.3	%	 	 	(0.4	)%	

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 August 31, 2006.		
See Glossary of Terms
 Page 13 of 31 

Exhibit 99.4
Last Updated 10/27/2006
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	 	 	 	7	 	 	 	13	 	 	 	39	 	 	 	(2	)	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(35	)	
6	 	Parent Company	 	 	19	 	 	 	(3	)	 	 	88	 	 	 	2	 	 	 	107	 	 	 	79	 	

7	 	Income From Continuing Operations	 	 	30	 	 	 	85	 	 	 	85	 	 	 	24	 	 	 	223	 	 	 	(24	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Income (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 10/27/2006
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 10/27/2006
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 (a) (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	)	

			
(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 $16 million was transferred to “realized” for the total year 2005. A $16 million realized gain is included in the $55 million on line 48 for the total year 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 10/27/2006
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 10/27/2006
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	 	 	1,128	 	 	 	2,129	 	 	 	3,064	 	 	 	2,114	 	 	 	8,435	 	 	 	3,107	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Total generation production	 	 	6,315	 	 	 	6,836	 	 	 	8,785	 	 	 	7,068	 	 	 	29,004	 	 	 	2,827	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	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	 	 	12,733	 	 	 	13,700	 	 	 	18,169	 	 	 	13,572	 	 	 	58,191	 	 	 	(2,503	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Nuclear	 	 	94	%	 	 	67	%	 	 	88	%	 	 	61	%	 	 	77	%	 	 	(7	)%	
80	 	Coal	 	 	80	%	 	 	83	%	 	 	95	%	 	 	91	%	 	 	87	%	 	 	3	%	
81	 	Gas, oil and other	 	 	17	%	 	 	29	%	 	 	39	%	 	 	27	%	 	 	28	%	 	 	8	%	
82	 	System average	 	 	49	%	 	 	51	%	 	 	62	%	 	 	50	%	 	 	53	%	 	 	2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Nuclear	 	 	52	 	 	 	329	 	 	 	107	 	 	 	419	 	 	 	114	 	 	 	(45	)	
84	 	Coal	 	 	195	 	 	 	244	 	 	 	47	 	 	 	103	 	 	 	73	 	 	 	(55	)	
85	 	Gas	 	 	212	 	 	 	164	 	 	 	140	 	 	 	226	 	 	 	93	 	 	 	45	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	459	 	 	 	737	 	 	 	294	 	 	 	748	 	 	 	280	 	 	 	(54	)	

			
(a)	 	Includes planned and unplanned outages	
See Glossary of Terms
 Page 18 of 31 

 

Last Updated 10/27/2006
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)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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 

Exhibit 99.5
Last Updated 10/27/2006
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 10/27/2006
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 10/27/2006
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 (a) (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 $5 million was transferred to “realized” for the total year 2004. A $5 million realized gain is included in the $64 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 10/27/2006
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 10/27/2006
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	 	 	132	 	 	 	231	 	 	 	13	 	 	 	261	 	 	 	159	 	 	 	28	 	
84	 	Coal	 	 	237	 	 	 	153	 	 	 	63	 	 	 	61	 	 	 	128	 	 	 	(140	)	
85	 	Gas	 	 	71	 	 	 	46	 	 	 	39	 	 	 	34	 	 	 	48	 	 	 	(160	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	440	 	 	 	430	 	 	 	115	 	 	 	356	 	 	 	334	 	 	 	(272	)	

			
(a)	 	Includes planned and unplanned outages	
See Glossary of Terms
 Page 24 of 31 

 

Last Updated 10/27/2006
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 

Exhibit 99.6
Last Updated 10/27/2006
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 10/27/2006
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 10/27/2006
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 (a) (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 $11 million was transferred to “realized” for the total year 2003. A $11 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 10/27/2006
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 10/27/2006
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	 	 	32	 	 	 	134	 	 	 	61	 	 	 	296	 	 	 	131	 	 	 	64	 	
84	 	Coal	 	 	293	 	 	 	253	 	 	 	276	 	 	 	252	 	 	 	268	 	 	 	101	 	
85	 	Gas	 	 	191	 	 	 	149	 	 	 	155	 	 	 	337	 	 	 	208	 	 	 	160	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	516	 	 	 	536	 	 	 	492	 	 	 	885	 	 	 	606	 	 	 	325	 	

			
(a)	 	Includes planned and unplanned outages	
See Glossary of Terms
 Page 30 of 31 

 

Last Updated 10/27/2006
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 

Exhibit 99.7
Last Updated
10/27/06
Pinnacle West Capital Corporation
Earnings Variance Explanations
for the Periods Ended September 30, 2006 and 2005
      This discussion explains the changes in our consolidated earnings for the three-month and nine-month periods ended September 30, 2006 and 2005. Unaudited Condensed Consolidated Statements of Income for the three months and nine months ended September 30, 2006 and 2005 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal period ended September 30, 2006 on or before November 9, 2006. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and the Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2006 and June 30, 2006. Additional operating and financial statistics and a glossary of terms are available on our website ( www.pinnaclewest.com ).
EARNINGS CONTRIBUTION BY BUSINESS SEGMENT
      Pinnacle West has three principal business segments (determined by products, services and the regulatory environment):

 	•	 	our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution;	
 		
 	•	 	our real estate segment, which consists of SunCor’s real estate development and investment activities; and	
 		
 	•	 	our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services’ commodity-related energy services.	
      The following table summarizes net income by segment for the three months and nine months ended September 30, 2006 and 2005 (dollars in millions):
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Nine Months Ended	 	
 	 	September 30,	 	 	September 30,	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
Regulated electricity (a)	 	$	170	 	 	$	70	 	 	$	252	 	 	$	152	 	
Real estate	 	 	17	 	 	 	7	 	 	 	47	 	 	 	26	 	
Marketing and trading	 	 	(4	)	 	 	7	 	 	 	6	 	 	 	18	 	
Other	 	 	1	 	 	 	1	 	 	 	2	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	 	184	 	 	 	85	 	 	 	307	 	 	 	199	 	
Discontinued operations — net of tax:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate (b)	 	 	—	 	 	 	14	 	 	 	2	 	 	 	16	 	
Marketing and trading (c)	 	 	—	 	 	 	1	 	 	 	1	 	 	 	(64	)	
Other	 	 	—	 	 	 	4	 	 	 	(1	)	 	 	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	184	 	 	$	104	 	 	$	309	 	 	$	155	 	

 

 	(a)	 	2005 periods include an $87 million after-tax regulatory disallowance of plant costs in accordance with the APS retail rate case settlement.	
 		
 	(b)	 	Primarily relates to sales of commercial properties.	
 		
 	(c)	 	Relates to losses on the sale of Silverhawk announced in June 2005 and related operations until the sale closed in January 2006.	
PINNACLE WEST CONSOLIDATED — RESULTS OF OPERATIONS
General
      Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to operating revenues less fuel and purchased power costs. “Gross margin” is a “non-GAAP financial measure,” as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). We view gross margin as an important performance measure of the core profitability of our operations. This measure is a key component of our internal financial reporting and is used by our management in analyzing our business segments. We believe that investors benefit from having access to the same financial measures that our management uses.
Deferred Fuel and Purchased Power Costs
      Arizona Public Service Company’s (“APS”) retail rate case settlement relating to its 2003 general rate case became effective April 1, 2005. As part of the settlement, the Arizona Corporation Commission (“ACC”) approved the Power Supply Adjustor (“PSA”), which permits APS to defer for recovery or refund fluctuations in retail fuel and purchased power costs, subject to specified parameters. In accordance with the PSA, APS defers for future rate recovery 90% of the difference between actual retail fuel and purchased power costs and the amount of such costs currently included in base rates. APS’ recovery of PSA deferrals from its customers is subject to the ACC’s approval of annual PSA adjustments and periodic surcharge applications.
      Since the inception of the PSA, APS has incurred substantially higher fuel and purchased power costs than those authorized for recovery through APS’ current base rates primarily due to the use of higher cost resources to serve incremental customer growth and has deferred those cost differences in accordance with the PSA. The balance of APS’ PSA deferrals at September 30, 2006 was $209 million. APS estimates that its PSA deferral balance at December 31, 2006 will be approximately $140 million to $160 million, based on the amounts already approved for collection and on APS’ hedged positions for fuel and purchased power at September 30, 2006 and recent forward market prices for natural gas and purchased power (which are subject to change). The recovery of PSA deferrals through ACC approved adjustors and surcharges recorded as revenue is offset dollar-for-dollar by the amortization of those deferred expenses.
      APS operated Palo Verde Unit 1 at reduced power levels from December 25, 2005 until March 18, 2006 due to vibration levels in one of the Unit’s shutdown cooling lines. During an outage at Unit 1 from March 18, 2006 to July 7, 2006, APS performed the necessary work and modifications to remedy the situation. APS estimates that incremental replacement power costs resulting from these Palo Verde outages and reduced power levels were approximately $86 million during the nine months ended September 30, 2006. The impact on the PSA deferrals was an increase of approximately
 2 

 

$78 million in that period. These Palo Verde replacement power costs were partially offset by $43 million of lower than expected replacement power costs related to APS’ other generating units during the nine months ended September 30, 2006, which decreased PSA deferrals by $39 million.
      The PSA deferral balance at September 30, 2006 and estimated balance as of December 31, 2006 each includes (a) $45 million related to replacement power costs associated with unplanned 2005 Palo Verde outages and (b) $78 million related to replacement power costs associated with unplanned 2006 outages or reduced power operations at Palo Verde. The PSA deferrals associated with these unplanned Palo Verde outages and reduced power operations are the subject of ACC prudence reviews. The ACC Staff has recommended disallowance of $17 million of the 2005 costs. The recommendation will be considered as part of APS’ general rate case currently before the ACC. The ACC Staff recommendation does not change management’s belief that the expenses in question were prudently incurred and, therefore, are recoverable.
Operating Results — Three-month period ended September 30, 2006 compared with three-month period ended September 30, 2005
      Our consolidated net income for the three months ended September 30, 2006 was $184 million compared with $104 million for the comparable prior-year period. The three months ended September 30, 2005 included income from discontinued operations of $19 million, a substantial portion of which was related to the sale of real estate commercial properties. Income from continuing operations increased $99 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

 	•	 	Regulated Electricity Segment — Income from continuing operations increased approximately $100 million primarily due to an $87 million after-tax regulatory disallowance of plant costs recorded in 2005. Income was also higher due to higher retail sales volumes related to customer growth. These positive factors were partially offset by the effects of milder weather on retail sales. Higher fuel and purchased power costs (as discussed above) were substantially offset by the deferral of those costs in accordance with the PSA.	
 		
 	•	 	Real Estate Segment — Income from continuing operations increased approximately $10 million primarily due to the sale of certain joint venture assets and increased margins on residential and parcel sales. Income from discontinued real estate operations decreased $14 million due to lower commercial property sales.	
 		
 	•	 	Marketing and Trading Segment — Income from continuing operations decreased approximately $11 million primarily due to declines in forward prices.	
 3 

 

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):
Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):	
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs	 	$	(32	)	 	$	(19	)	
Increased deferred fuel and purchased power costs	 	 	30	 	 	 	18	 	
Higher retail sales volumes due to customer growth, excluding weather effects	 	 	28	 	 	 	17	 	
Effects of milder weather on retail sales	 	 	(6	)	 	 	(4	)	
Miscellaneous items, net	 	 	3	 	 	 	2	 	
 	 	 	 	 	 	 	
Net increase in regulated electricity segment gross margin	 	 	23	 	 	 	14	 	
Lower marketing and trading segment gross margin primarily due to declines in forward prices	 	 	(16	)	 	 	(10	)	
Higher real estate segment contribution primarily related to the sale of certain joint venture assets and increased margins on residential and parcel sales	 	 	17	 	 	 	10	 	
Regulatory disallowance of plant costs in 2005, in accordance with the APS retail rate case settlement	 	 	143	 	 	 	87	 	
Operations and maintenance increases primarily due to:	 	 	 	 	 	 	 	 	
Generation costs, including maintenance and overhauls	 	 	(3	)	 	 	(2	)	
Miscellaneous items, net	 	 	(2	)	 	 	(1	)	
Higher depreciation and amortization primarily due to increased plant asset balances	 	 	(5	)	 	 	(3	)	
Miscellaneous items, net	 	 	1	 	 	 	4	 	
 	 	 	 	 	 	 	
Net increase in income from continuing operations	 	$	158	 	 	 	99	 	
 	 	 	 	 	 	 	 	
Discontinued operations primarily related to sales of real estate assets	 	 	 	 	 	 	(19	)	
 	 	 	 	 	 	 	 	
Net increase in net income	 	 	 	 	 	$	80	 	
 	 	 	 	 	 	 	 	
Regulated Electricity Segment Revenues
      Regulated electricity segment revenues were $134 million higher for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $102 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);	
 		
 	•	 	a $43 million increase in retail revenues related to customer growth, excluding weather effects;	
 		
 	•	 	an $8 million decrease in retail revenues related to milder weather;	
 		
 	•	 	an $8 million decrease in Off-System Sales due to lower prices; and	
 		
 	•	 	a $5 million increase due to miscellaneous factors.	
 4 

 

Real Estate Segment Revenues
      Real estate segment revenues were $19 million higher for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $13 million increase from residential sales due to higher prices; and	
 		
 	•	 	a $6 million increase from parcel sales.	
Marketing and Trading Segment Revenues
      Marketing and trading segment revenues were $22 million lower for the three months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $17 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices;	
 		
 	•	 	a $7 million decrease from lower prices on competitive retail sales in California; and	
 		
 	•	 	a $2 million increase due to higher power prices on delivered wholesale electricity sales.	
Operating Results — Nine-month period ended September 30, 2006 compared with nine-month period ended September 30, 2005
      Our consolidated net income for the nine months ended September 30, 2006 was $309 million compared with $155 million for the comparable prior-year period. The nine months ended September 30, 2005 included a net loss from discontinued operations of $44 million, which was related to the sale and operations of Silverhawk, partially offset by income from the sales of real estate commercial properties. Income from continuing operations increased $108 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

 	•	 	Regulated Electricity Segment — Income from continuing operations increased approximately $100 million primarily due to an $87 million after-tax regulatory disallowance of plant costs recorded in 2005. Income also increased due to higher retail sales volumes due to customer growth; income tax credits related to prior years resolved in 2006; effects of weather on retail sales; a retail price increase effective April 1, 2005; lower interest expense; and higher interest income. These positive factors were partially offset by higher operations and maintenance expense related to generation and customer service; and higher depreciation and amortization primarily due to increased plant asset balances, partially offset by lower depreciation rates. In addition, higher fuel and purchased power costs of $80 million after-tax were partially offset by the deferral of $51 million after-tax of costs in accordance with the PSA. See discussion above — “Deferred Fuel and Purchased Power Costs.”	
 		
 	•	 	Real Estate Segment — Income from continuing operations increased approximately $21 million primarily due to increased margins on residential and parcel sales and the sale of certain joint venture assets. Income from discontinued operations decreased $14 million due to lower commercial property sales.	
 5 

 

 	•	 	Marketing and Trading Segment — Income from continuing operations decreased approximately $12 million primarily due to lower mark-to-market gains on contracts for future delivery, partially offset by higher unit margins on wholesale sales.	
 6 

 

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs	 	$	(131	)	 	$	(80	)	
Increased deferred fuel and purchased power costs (deferrals began April 1, 2005)	 	 	83	 	 	 	51	 	
Higher retail sales volumes due to customer growth, excluding weather effects	 	 	71	 	 	 	43	 	
Effects of weather on retail sales	 	 	7	 	 	 	4	 	
Retail price increase effective April 1, 2005	 	 	7	 	 	 	4	 	
Miscellaneous items, net	 	 	(13	)	 	 	(7	)	
 	 	 	 	 	 	 	
Net increase in regulated electricity segment gross margin	 	 	24	 	 	 	15	 	
Lower marketing and trading segment gross margin primarily related to lower mark-to-market gains, partially offset by higher unit margins on wholesale sales	 	 	(21	)	 	 	(13	)	
Higher real estate segment contribution primarily related to increased margins on residential and parcel sales and the sale of certain joint venture assets	 	 	35	 	 	 	21	 	
Regulatory disallowance of plant costs in 2005, in accordance with the APS retail rate case settlement	 	 	143	 	 	 	87	 	
Operations and maintenance increases primarily due to:	 	 	 	 	 	 	 	 	
Generation costs, including maintenance and overhauls	 	 	(32	)	 	 	(20	)	
Customer service costs, including regulatory demand-side management programs and planned maintenance	 	 	(10	)	 	 	(6	)	
Miscellaneous items, net	 	 	(2	)	 	 	(1	)	
Higher depreciation and amortization primarily due to increased plant asset balances partially offset by lower depreciations rates	 	 	(5	)	 	 	(3	)	
Lower interest expense, net of capitalized financing costs, primarily due to lower debt balances, partially offset by higher rates	 	 	6	 	 	 	4	 	
Higher other income, net of expense, primarily due to miscellaneous asset sales and increased interest income	 	 	9	 	 	 	5	 	
Income tax credits related to prior years resolved in 2006	 	 	—	 	 	 	10	 	
Miscellaneous items, net	 	 	1	 	 	 	9	 	
 	 	 	 	 	 	 	
Net increase in income from continuing operations	 	$	148	 	 	 	108	 	
 	 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	
Silverhawk loss in 2005	 	 	 	 	 	 	65	 	
Lower commercial property real estate sales	 	 	 	 	 	 	(14	)	
Other	 	 	 	 	 	 	(5	)	
 	 	 	 	 	 	 	 	
Net increase in net income	 	 	 	 	 	$	154	 	
 	 	 	 	 	 	 	 	
Regulated Electricity Segment Revenues
      Regulated electricity segment revenues were $317 million higher for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $195 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount	
 7 

 

 	 	 	recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);	

 	•	 	a $102 million increase in retail revenues related to customer growth, excluding weather effects;	
 		
 	•	 	a $12 million increase in Off-System Sales primarily resulting from sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;	
 		
 	•	 	a $10 million increase in retail revenues related to weather;	
 		
 	•	 	a $7 million increase in retail revenues due to a price increase effective April 1, 2005; and	
 		
 	•	 	a $9 million decrease due to miscellaneous factors.	
Real Estate Segment Revenues
      Real estate segment revenues were $85 million higher for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $62 million increase from residential sales due to higher prices and volumes;	
 		
 	•	 	a $15 million increase from parcel sales; and	
 		
 	•	 	an $8 million increase due to miscellaneous sales.	
Marketing and Trading Segment Revenues
      Marketing and trading segment revenues were $8 million lower for the nine months ended September 30, 2006 compared with the prior-year period primarily as a result of:

 	•	 	a $26 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices;	
 		
 	•	 	a $12 million decrease in Off-System Sales due to the absence of sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;	
 		
 	•	 	a $25 million increase from higher prices on competitive retail sales in California; and	
 		
 	•	 	a $5 million increase due to miscellaneous factors.	
 8 

 

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	 	 	 	 	
 	 	SEPTEMBER 30,	 	 	Increase (Decrease)	 	 	 	
 	 	2006	 	 	2005	 	 	Amount	 	 	Percent	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	886,979	 	 	$	753,428	 	 	$	133,551	 	 	 	17.7	%	 	B	
Marketing and trading segment	 	 	84,425	 	 	 	107,031	 	 	 	(22,606	)	 	 	21.1	%	 	W	
Real estate segment	 	 	97,871	 	 	 	78,755	 	 	 	19,116	 	 	 	24.3	%	 	B	
Other revenues	 	 	7,167	 	 	 	16,369	 	 	 	(9,202	)	 	 	56.2	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,076,442	 	 	 	955,583	 	 	 	120,859	 	 	 	12.6	%	 	B	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	314,150	 	 	 	203,519	 	 	 	110,631	 	 	 	54.4	%	 	W	
Marketing and trading segment fuel and purchased power	 	 	80,906	 	 	 	86,945	 	 	 	(6,039	)	 	 	6.9	%	 	B	
Operations and maintenance	 	 	164,396	 	 	 	158,940	 	 	 	5,456	 	 	 	3.4	%	 	W	
Real estate segment operations	 	 	78,853	 	 	 	67,508	 	 	 	11,345	 	 	 	16.8	%	 	W	
Depreciation and amortization	 	 	90,390	 	 	 	85,763	 	 	 	4,627	 	 	 	5.4	%	 	W	
Taxes other than income taxes	 	 	31,697	 	 	 	34,325	 	 	 	(2,628	)	 	 	7.7	%	 	B	
Other expenses	 	 	5,610	 	 	 	13,521	 	 	 	(7,911	)	 	 	58.5	%	 	B	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	100.0	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	766,002	 	 	 	793,738	 	 	 	(27,736	)	 	 	3.5	%	 	B	

Operating Income	 	 	310,440	 	 	 	161,845	 	 	 	148,595	 	 	 	91.8	%	 	B	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	3,178	 	 	 	2,852	 	 	 	326	 	 	 	11.4	%	 	B	
Other income	 	 	18,055	 	 	 	8,694	 	 	 	9,361	 	 	 	107.7	%	 	B	
Other expense	 	 	(3,693	)	 	 	(4,915	)	 	 	1,222	 	 	 	24.9	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	17,540	 	 	 	6,631	 	 	 	10,909	 	 	 	164.5	%	 	B	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	50,577	 	 	 	46,778	 	 	 	3,799	 	 	 	8.1	%	 	W	
Capitalized interest	 	 	(5,612	)	 	 	(3,301	)	 	 	(2,311	)	 	 	70.0	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	44,965	 	 	 	43,477	 	 	 	1,488	 	 	 	3.4	%	 	W	

Income From Continuing Operations Before Income Taxes	 	 	283,015	 	 	 	124,999	 	 	 	158,016	 	 	 	126.4	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	98,836	 	 	 	40,305	 	 	 	58,531	 	 	 	145.2	%	 	W	

Income From Continuing Operations	 	 	184,179	 	 	 	84,694	 	 	 	99,485	 	 	 	117.5	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	(12	)	 	 	19,043	 	 	 	(19,055	)	 	 	100.1	%	 	W	

Net Income	 	$	184,167	 	 	$	103,737	 	 	$	80,430	 	 	 	77.5	%	 	B	

Weighted-Average Common Shares Outstanding — Basic	 	 	99,491	 	 	 	98,697	 	 	 	794	 	 	 	0.8	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	99,973	 	 	 	98,816	 	 	 	1,157	 	 	 	1.2	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	1.85	 	 	$	0.86	 	 	$	0.99	 	 	 	115.1	%	 	B	
Net income — basic	 	$	1.85	 	 	$	1.05	 	 	$	0.80	 	 	 	76.2	%	 	B	
Income from continuing operations — diluted	 	$	1.84	 	 	$	0.86	 	 	$	0.98	 	 	 	114.0	%	 	B	
Net income — diluted	 	$	1.84	 	 	$	1.05	 	 	$	0.79	 	 	 	75.2	%	 	B	
Certain prior-year amounts have been reclassified to conform to the 2006 presentation.
     B — Better
     W — Worse

 

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	NINE MONTHS ENDED	 	 	 	 	 	 	
 	 	SEPTEMBER 30,	 	 	Increase (Decrease)	 	 	 	
 	 	2006	 	 	2005	 	 	Amount	 	 	Percent	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	2,065,823	 	 	$	1,749,110	 	 	$	316,713	 	 	 	18.1	%	 	B	
Marketing and trading segment	 	 	259,352	 	 	 	267,460	 	 	 	(8,108	)	 	 	3.0	%	 	W	
Real estate segment	 	 	318,328	 	 	 	232,950	 	 	 	85,378	 	 	 	36.7	%	 	B	
Other revenues	 	 	28,173	 	 	 	46,763	 	 	 	(18,590	)	 	 	39.8	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	2,671,676	 	 	 	2,296,283	 	 	 	375,393	 	 	 	16.3	%	 	B	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	735,489	 	 	 	442,532	 	 	 	292,957	 	 	 	66.2	%	 	W	
Marketing and trading segment fuel and purchased power	 	 	227,797	 	 	 	215,347	 	 	 	12,450	 	 	 	5.8	%	 	W	
Operations and maintenance	 	 	511,155	 	 	 	467,121	 	 	 	44,034	 	 	 	9.4	%	 	W	
Real estate segment operations	 	 	248,595	 	 	 	190,555	 	 	 	58,040	 	 	 	30.5	%	 	W	
Depreciation and amortization	 	 	267,308	 	 	 	262,030	 	 	 	5,278	 	 	 	2.0	%	 	W	
Taxes other than income taxes	 	 	99,970	 	 	 	103,528	 	 	 	(3,558	)	 	 	3.4	%	 	B	
Other expenses	 	 	22,562	 	 	 	39,451	 	 	 	(16,889	)	 	 	42.8	%	 	B	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	100.0	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	2,112,876	 	 	 	1,863,781	 	 	 	249,095	 	 	 	13.4	%	 	W	

Operating Income	 	 	558,800	 	 	 	432,502	 	 	 	126,298	 	 	 	29.2	%	 	B	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	10,612	 	 	 	8,407	 	 	 	2,205	 	 	 	26.2	%	 	B	
Other income	 	 	34,448	 	 	 	18,019	 	 	 	16,429	 	 	 	91.2	%	 	B	
Other expense	 	 	(12,953	)	 	 	(12,985	)	 	 	32	 	 	 	0.2	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	32,107	 	 	 	13,441	 	 	 	18,666	 	 	 	138.9	%	 	B	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	143,985	 	 	 	142,820	 	 	 	1,165	 	 	 	0.8	%	 	W	
Capitalized interest	 	 	(14,595	)	 	 	(10,134	)	 	 	(4,461	)	 	 	44.0	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	129,390	 	 	 	132,686	 	 	 	(3,296	)	 	 	2.5	%	 	B	

Income From Continuing Operations Before Income Taxes	 	 	461,517	 	 	 	313,257	 	 	 	148,260	 	 	 	47.3	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	154,900	 	 	 	113,863	 	 	 	41,037	 	 	 	36.0	%	 	W	

Income From Continuing Operations	 	 	306,617	 	 	 	199,394	 	 	 	107,223	 	 	 	53.8	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) From Discontinued Operations Net of Income Taxes	 	 	2,159	 	 	 	(44,474	)	 	 	46,633	 	 	 	104.9	%	 	B	

Net Income	 	$	308,776	 	 	$	154,920	 	 	$	153,856	 	 	 	99.3	%	 	B	

Weighted-Average Common Shares Outstanding — Basic	 	 	99,277	 	 	 	95,642	 	 	 	3,635	 	 	 	3.8	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	99,723	 	 	 	95,755	 	 	 	3,968	 	 	 	4.1	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	3.09	 	 	$	2.08	 	 	$	1.01	 	 	 	48.6	%	 	B	
Net income — basic	 	$	3.11	 	 	$	1.62	 	 	$	1.49	 	 	 	92.0	%	 	B	
Income from continuing operations — diluted	 	$	3.07	 	 	$	2.08	 	 	$	0.99	 	 	 	47.6	%	 	B	
Net income — diluted	 	$	3.10	 	 	$	1.62	 	 	$	1.48	 	 	 	91.4	%	 	B	
Certain prior-year amounts have been reclassified to conform to the 2006 presentation.
     B — Better
     W — Worse

 

Exhibit 99.8
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.	

 

Exhibit 99.9

FOR IMMEDIATE RELEASE	 	October 27, 2006	
Media Contact:	 	Alan Bunnell, (602) 250-3376	 	Page 1 of 2	
Analyst Contacts:	 	Rebecca Hickman, (602) 250-5668	 	 	
 	 	Lisa Malagon, (602) 250-5671	 	 	
Web site:	 	www.pinnaclewest.com	 	 	
PINNACLE WEST REPORTS LOWER ON-GOING EARNINGS
FOR 2006 THIRD QUARTER
PHOENIX — Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income for the quarter ended September 30, 2006, of $184.2 million, or $1.84 per diluted share of common stock. This result reflects a decline from on-going earnings of $186.4 million, or $1.89 per diluted share, for the same period in 2005.
Third-quarter 2005 on-going results exclude several non-recurring items, the largest of which was a regulatory disallowance of $87 million, or $0.88 per share, recorded in that prior-year quarter. On-going earnings for the 2005 third quarter also exclude $4.3 million, or $0.04 per share, of income from discontinued operations related to the sales of the Company’s interests in NAC International and the Silverhawk Power Station. Reported consolidated net income was $103.7 million, or $1.05 per diluted share, for the third quarter of 2005.
“Customer price increases granted by the Arizona Corporation Commission earlier this year have had no impact on 2006 earnings” said Chairman Bill Post. “These fuel related price increases decreased customer fuel cost liabilities and stabilized our declining cash flow.”
The quarter-to-quarter comparison was negatively impacted by higher fuel costs; lower results from the Company’s wholesale power marketing and real estate operations; and milder weather. These items were substantially offset by higher fuel cost deferrals and increased retail sales at Arizona Public Service (APS) due to customer growth of 4.4 percent.
In addition, APS reported net income for the third quarter of 2006 of $168.6 million, compared with on-going earnings of $148.1 million for the same period a year ago. Third quarter 2005 on-going results exclude the previously mentioned $87 million regulatory disallowance. APS reported net income of $61.1 million for the third quarter of 2005. SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $17.5 million, compared with $21.4 million in the 2005 third quarter.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials .

 

			
PINNACLE WEST 2006 THIRD QUARTER EARNINGS  	 	OCTOBER 27, 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 third quarter earnings and recent developments at 12 noon (ET) today, October 27. 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 9001144. A replay of the call also will be available until 11:55 p.m. (ET), Friday, November 3, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and the same reservation number.
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.
-30-
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Three Months Ended	 	
 	 	September 30, 2006	 	 	September 30, 2005	 	
 	 	$ in	 	 	Diluted	 	 	$ in	 	 	Diluted	 	
 	 	Millions	 	 	EPS	 	 	Millions	 	 	EPS	 	
Net Income	 	$	184.2	 	 	$	1.84	 	 	$	103.7	 	 	$	1.05	 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	87.0	 	 	 	0.88	 	
Income from discontinued operations — Silverhawk Power Station operations	 	 	—	 	 	 	—	 	 	 	(0.6	)	 	 	—	 	
Income from discontinued operations — NAC International	 	 	—	 	 	 	—	 	 	 	(3.7	)	 	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
On-going Earnings	 	$	184.2	 	 	$	1.84	 	 	$	186.4	 	 	$	1.89	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
ARIZONA PUBLIC SERVICE COMPANY
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Three Months Ended	 	
 	 	September 30, 2006	 	 	September 30, 2005	 	
 	 	$ in Millions	 	 	$ in Millions	 	
Net Income	 	$	168.6	 	 	$	61.1	 	
Adjustments:	 	 	 	 	 	 	 	 	
Regulatory disallowance	 	 	—	 	 	 	87.0	 	
On-going Earnings	 	$	168.6	 	 	$	148.1	 	

 

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	NINE MONTHS ENDED	 	
 	 	SEPTEMBER 30,	 	 	SEPTEMBER 30,	 	
 	 	2006	 	 	2005	 	 	2006	 	 	2005	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	886,979	 	 	$	753,428	 	 	$	2,065,823	 	 	$	1,749,110	 	
Marketing and trading segment	 	 	84,425	 	 	 	107,031	 	 	 	259,352	 	 	 	267,460	 	
Real estate segment	 	 	97,871	 	 	 	78,755	 	 	 	318,328	 	 	 	232,950	 	
Other revenues	 	 	7,167	 	 	 	16,369	 	 	 	28,173	 	 	 	46,763	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,076,442	 	 	 	955,583	 	 	 	2,671,676	 	 	 	2,296,283	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	314,150	 	 	 	203,519	 	 	 	735,489	 	 	 	442,532	 	
Marketing and trading segment fuel and purchased power	 	 	80,906	 	 	 	86,945	 	 	 	227,797	 	 	 	215,347	 	
Operations and maintenance	 	 	164,396	 	 	 	158,940	 	 	 	511,155	 	 	 	467,121	 	
Real estate segment operations	 	 	78,853	 	 	 	67,508	 	 	 	248,595	 	 	 	190,555	 	
Depreciation and amortization	 	 	90,390	 	 	 	85,763	 	 	 	267,308	 	 	 	262,030	 	
Taxes other than income taxes	 	 	31,697	 	 	 	34,325	 	 	 	99,970	 	 	 	103,528	 	
Other expenses	 	 	5,610	 	 	 	13,521	 	 	 	22,562	 	 	 	39,451	 	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	—	 	 	 	143,217	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	766,002	 	 	 	793,738	 	 	 	2,112,876	 	 	 	1,863,781	 	

Operating Income	 	 	310,440	 	 	 	161,845	 	 	 	558,800	 	 	 	432,502	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	3,178	 	 	 	2,852	 	 	 	10,612	 	 	 	8,407	 	
Other income	 	 	18,055	 	 	 	8,694	 	 	 	34,448	 	 	 	18,019	 	
Other expense	 	 	(3,693	)	 	 	(4,915	)	 	 	(12,953	)	 	 	(12,985	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	17,540	 	 	 	6,631	 	 	 	32,107	 	 	 	13,441	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	50,577	 	 	 	46,778	 	 	 	143,985	 	 	 	142,820	 	
Capitalized interest	 	 	(5,612	)	 	 	(3,301	)	 	 	(14,595	)	 	 	(10,134	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	44,965	 	 	 	43,477	 	 	 	129,390	 	 	 	132,686	 	

Income From Continuing Operations Before Income Taxes	 	 	283,015	 	 	 	124,999	 	 	 	461,517	 	 	 	313,257	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	98,836	 	 	 	40,305	 	 	 	154,900	 	 	 	113,863	 	

Income From Continuing Operations	 	 	184,179	 	 	 	84,694	 	 	 	306,617	 	 	 	199,394	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	(12	)	 	 	19,043	 	 	 	2,159	 	 	 	(44,474	)	

Net Income	 	$	184,167	 	 	$	103,737	 	 	$	308,776	 	 	$	154,920	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	99,491	 	 	 	98,697	 	 	 	99,277	 	 	 	95,642	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	99,973	 	 	 	98,816	 	 	 	99,723	 	 	 	95,755	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	1.85	 	 	$	0.86	 	 	$	3.09	 	 	$	2.08	 	
Net income — basic	 	$	1.85	 	 	$	1.05	 	 	$	3.11	 	 	$	1.62	 	
Income from continuing operations — diluted	 	$	1.84	 	 	$	0.86	 	 	$	3.07	 	 	$	2.08	 	
Net income — diluted	 	$	1.84	 	 	$	1.05	 	 	$	3.10	 	 	$	1.62	 	
Certain prior-year amounts have been reclassified to conform to the 2006 presentation.

 

Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	 	 	
 	 	SEPTEMBER 30,	 	 	Increase (Decrease)	 	
 	 	2006	 	 	2005	 	 	Pretax	 	 	After Tax	 	
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	310,440	 	 	$	161,845	 	 	$	148,595	 	 	$	90,569	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	164,396	 	 	 	158,940	 	 	 	5,456	 	 	 	3,325	 	
Real estate segment operations	 	 	78,853	 	 	 	67,508	 	 	 	11,345	 	 	 	6,915	 	
Depreciation and amortization	 	 	90,390	 	 	 	85,763	 	 	 	4,627	 	 	 	2,820	 	
Taxes other than income taxes	 	 	31,697	 	 	 	34,325	 	 	 	(2,628	)	 	 	(1,602	)	
Other expenses	 	 	5,610	 	 	 	13,521	 	 	 	(7,911	)	 	 	(4,822	)	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	(87,291	)	
Marketing and trading segment fuel and purchased power	 	 	80,906	 	 	 	86,945	 	 	 	(6,039	)	 	 	(3,681	)	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	97,871	 	 	 	78,755	 	 	 	19,116	 	 	 	11,651	 	
Other revenues	 	 	7,167	 	 	 	16,369	 	 	 	(9,202	)	 	 	(5,609	)	
Marketing and trading segment revenues	 	 	84,425	 	 	 	107,031	 	 	 	(22,606	)	 	 	(13,778	)	

Regulated electricity segment gross margin	 	$	572,829	 	 	$	549,909	 	 	$	22,920	 	 	$	13,969	 	

RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	310,440	 	 	$	161,845	 	 	$	148,595	 	 	$	90,569	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	164,396	 	 	 	158,940	 	 	 	5,456	 	 	 	3,325	 	
Real estate segment operations	 	 	78,853	 	 	 	67,508	 	 	 	11,345	 	 	 	6,915	 	
Depreciation and amortization	 	 	90,390	 	 	 	85,763	 	 	 	4,627	 	 	 	2,820	 	
Taxes other than income taxes	 	 	31,697	 	 	 	34,325	 	 	 	(2,628	)	 	 	(1,602	)	
Other expenses	 	 	5,610	 	 	 	13,521	 	 	 	(7,911	)	 	 	(4,822	)	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	(87,291	)	
Regulated electricity segment fuel and purchased power	 	 	314,150	 	 	 	203,519	 	 	 	110,631	 	 	 	67,430	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	97,871	 	 	 	78,755	 	 	 	19,116	 	 	 	11,651	 	
Other revenues	 	 	7,167	 	 	 	16,369	 	 	 	(9,202	)	 	 	(5,609	)	
Regulated electricity segment revenues	 	 	886,979	 	 	 	753,428	 	 	 	133,551	 	 	 	81,399	 	

Marketing and trading segment gross margin	 	$	3,519	 	 	$	20,086	 	 	$	(16,567	)	 	$	(10,097	)	

 

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	NINE MONTHS ENDED	 	 	 	 	
 	 	SEPTEMBER 30,	 	 	Increase (Decrease)	 	
 	 	2006	 	 	2005	 	 	Pretax	 	 	After Tax	 	
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	558,800	 	 	$	432,502	 	 	$	126,298	 	 	$	76,979	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	511,155	 	 	 	467,121	 	 	 	44,034	 	 	 	26,839	 	
Real estate segment operations	 	 	248,595	 	 	 	190,555	 	 	 	58,040	 	 	 	35,375	 	
Depreciation and amortization	 	 	267,308	 	 	 	262,030	 	 	 	5,278	 	 	 	3,217	 	
Taxes other than income taxes	 	 	99,970	 	 	 	103,528	 	 	 	(3,558	)	 	 	(2,169	)	
Other expenses	 	 	22,562	 	 	 	39,451	 	 	 	(16,889	)	 	 	(10,294	)	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	(87,291	)	
Marketing and trading segment fuel and purchased power	 	 	227,797	 	 	 	215,347	 	 	 	12,450	 	 	 	7,588	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	318,328	 	 	 	232,950	 	 	 	85,378	 	 	 	52,038	 	
Other revenues	 	 	28,173	 	 	 	46,763	 	 	 	(18,590	)	 	 	(11,331	)	
Marketing and trading segment revenues	 	 	259,352	 	 	 	267,460	 	 	 	(8,108	)	 	 	(4,942	)	

Regulated electricity segment gross margin	 	$	1,330,334	 	 	$	1,306,578	 	 	$	23,756	 	 	$	14,479	 	

RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	558,800	 	 	$	432,502	 	 	$	126,298	 	 	$	76,979	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	511,155	 	 	 	467,121	 	 	 	44,034	 	 	 	26,839	 	
Real estate segment operations	 	 	248,595	 	 	 	190,555	 	 	 	58,040	 	 	 	35,375	 	
Depreciation and amortization	 	 	267,308	 	 	 	262,030	 	 	 	5,278	 	 	 	3,217	 	
Taxes other than income taxes	 	 	99,970	 	 	 	103,528	 	 	 	(3,558	)	 	 	(2,169	)	
Other expenses	 	 	22,562	 	 	 	39,451	 	 	 	(16,889	)	 	 	(10,294	)	
Regulatory disallowance	 	 	—	 	 	 	143,217	 	 	 	(143,217	)	 	 	(87,291	)	
Regulated electricity segment fuel and purchased power	 	 	735,489	 	 	 	442,532	 	 	 	292,957	 	 	 	178,557	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	318,328	 	 	 	232,950	 	 	 	85,378	 	 	 	52,038	 	
Other revenues	 	 	28,173	 	 	 	46,763	 	 	 	(18,590	)	 	 	(11,331	)	
Regulated electricity segment revenues	 	 	2,065,823	 	 	 	1,749,110	 	 	 	316,713	 	 	 	193,037	 	

Marketing and trading segment gross margin	 	$	31,555	 	 	$	52,113	 	 	$	(20,558	)	 	$	(12,531	)	

  
 
Exhibit 99.11
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Nine Months Ended	 	 	Nine Months Ended	 	
 	 	September 30, 2006	 	 	September 30, 2005	 	
 	 	$ in	 	 	Diluted	 	 	$ in	 	 	Diluted	 	
 	 	Millions	 	 	EPS	 	 	Millions	 	 	EPS	 	
Net Income	 	$	309	 	 	$	3.10	 	 	$	155	 	 	$	1.62	 	
Adjustments:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	87	 	 	 	0.91	 	
Income tax credit related to prior periods	 	 	(10	)	 	 	(0.10	)	 	 	—	 	 	 	—	 	
Loss from discontinued operations — Silverhawk Power Station write-down	 	 	—	 	 	 	—	 	 	 	55	 	 	 	0.58	 	
Loss from discontinued operations — Silverhawk Power Station operations	 	 	—	 	 	 	—	 	 	 	9	 	 	 	0.09	 	
Income from discontinued operations — NAC International	 	 	—	 	 	 	—	 	 	 	(4	)	 	 	(0.04	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
On-going Earnings	 	$	299	 	 	$	3.00	 	 	$	302	 	 	$	3.16