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): December 31, 2007
 	 	 	 	 	
Commission File Number	 	Exact Name of Registrant as Specified in
Charter; State of Incorporation;
Address and Telephone Number	 	IRS Employer
Identification Number	

1-8962	 	Pinnacle West Capital Corporation
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000	 	86-0512431	
 	 	 	 	 	
1-4473	 	Arizona Public Service Company
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000	 	86-0011170	
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  	 	 Written communications pursuant to Rule 425 under the Securities Act (17 CFR 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	 	 	2	 	
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	

Table of Contents

Item 2.02.	 	Results of Operations and Financial Condition	
     On January 30, 2008, Pinnacle West Capital Corporation (the “Company” or “Pinnacle West”) issued a press release regarding its financial results for its fiscal quarter ended December 31, 2007. A copy of the press release is attached hereto as Exhibit 99.9.
     Certain of the Information referenced in Item 7.01 below relates to the Company’s results of operations for its fiscal quarter ended December 31, 2007. This Information is attached hereto as Exhibits 99.2, 99.3, 99.7 and 99.9.

Item 7.01.	 	Regulation FD Disclosure	
Financial and Business Information
     The Company is providing quarterly consolidated statistical summaries, earnings variance explanations, 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 and 99.8). 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.
2008 Earnings Outlook
     In this discussion, earnings per share amounts are after income taxes and are based on diluted common shares outstanding. The earnings guidance in this Form 8-K supersedes all previous earnings guidance provided by Pinnacle West.
     We estimate that our base level of consolidated earnings for 2008 will be within a reasonable range of $2.50 per share. We currently expect Arizona Public Service Company (“APS”) 2008 earnings to be basically flat compared with 2007, excluding the effects of abnormal weather and prior years’ tax adjustments. These estimates assume a March 1, 2008 effective date for APS’ request pending before the Arizona Corporation Commission (the “ACC”) for a $30 million increase in pretax annual retail revenues under an ACC-approved transmission cost adjustment mechanism and do not include any potential earnings effect from proposed amendments to APS’ line extension schedule (see below). We currently estimate that 2008 net income for our real estate subsidiary, SunCor Development Company (“SunCor”), will be approximately $20 million, reflecting continued weakness in the western United States real estate markets.
     For additional information regarding the retail transmission cost adjustment request pending before the ACC and the related Federal Energy Regulatory Commission (“FERC”) rate case, see “FERC Rate Case” in Note 5 of Notes to Condensed Consolidated Financial Statements in the Pinnacle West/APS Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007 (the “September 2007 Form 10-Q”) and “FERC Rate Case” in the Pinnacle West/APS Current Report on Form 8-K filed December 31, 2007. For information on the proposed line extension amendments, see “APS General Rate Case and Power Supply Adjustor” in Note 5 of Notes to Condensed Consolidated
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Financial Statements in the September 2007 Form 10-Q and “Line Extension Schedule” in the Pinnacle West/APS Current Report on Form 8-K filed December 21, 2007.
Forward-Looking Statements
     Our earnings forecasts are subject to numerous risks, including those described below. This Form 8-K contains forward-looking statements regarding our 2008 earnings outlook. Neither the Company nor APS assumes any obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by Pinnacle West or APS. In addition to the Risk Factors described in Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2006, these factors include, but are not limited to, state and federal regulatory and legislative decisions and actions, particularly those affecting our rates and our recovery of fuel and purchased power costs; the ongoing restructuring of the electric industry, including the introduction of retail electric competition in Arizona and decisions impacting wholesale competition; the outcome of regulatory, legislative and judicial proceedings, both current and future, relating to the restructuring and environmental matters (including those related to climate change); market prices for electricity and natural gas; power plant performance and outages; transmission outages and constraints; weather variations affecting local and regional customer energy usage; customer growth and energy usage; regional economic and market conditions, including the results of litigation and other proceedings resulting from the California energy situation, volatile fuel and purchased power costs and the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital and access to capital markets; current credit ratings remaining in effect for any given period of time; our ability to compete successfully outside traditional regulated markets (including the wholesale market); the performance of our marketing and trading activities due to volatile market liquidity and any deteriorating counterparty credit and the use of derivative contracts in our business (including the interpretation of the subjective and complex accounting rules related to these contracts); changes in accounting principles generally accepted in the United States of America and the interpretation of those principles; the performance of the stock market and the changing interest rate environment, which affect the value of our nuclear decommissioning trust, pension, and other postretirement benefit plan assets, the amount of required contributions to Pinnacle West’s pension plan and contributions to APS’ nuclear decommissioning trust funds, as well as the reported costs of providing pension and other postretirement benefits; technological developments in the electric industry; the strength of the real estate market in SunCor’s market areas, which include Arizona, Idaho, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of Pinnacle West and APS.
 3 

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Item 9.01.	 	Financial Statements and Exhibits	

 	(d)	 	Exhibits.	
 	 	 	 	 	
Exhibit
No.	 	Registrant(s)	 	Description	
 	 	 	 	 	
99.1	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	 	 	
99.2	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the three and twelve-month periods ended December 31, 2007 and 2006.	
 	 	 	 	 	
99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.	
 	 	 	 	 	
99.4	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.	
 	 	 	 	 	
99.5	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	 	 	
99.6	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	 	 	
99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for the three and twelve months ended December 31, 2007 and 2006 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2007 and 2006.	
 	 	 	 	 	
99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	
99.9	 	Pinnacle West
APS	 	Earnings News Release issued on January 30, 2008.	
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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: January 30, 2008 	By:  	/s/ Donald E. Brandt  	 	
 	 	Donald E. Brandt  	 	
 	 	Executive Vice President and
Chief Financial Officer 	 	
 	
 	ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
 	 	
Dated: January 30, 2008 	By:  	/s/ Donald E. Brandt  	 	
 	 	Donald E. Brandt  	 	
 	 	President and Chief Financial Officer 	 	
 5 

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Exhibit Index
 	 	 	 	 	
Exhibit
No.	 	Registrant(s)	 	Description	
 	 	 	 	 	
99.1	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	 	 	
99.2	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the three and twelve-month periods ended December 31, 2007 and 2006.	
 	 	 	 	 	
99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.	
 	 	 	 	 	
99.4	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.	
 	 	 	 	 	
99.5	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	 	 	
99.6	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	 	 	
99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for the three and twelve months ended December 31, 2007 and 2006 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2007 and 2006.	
 	 	 	 	 	
99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	
99.9	 	Pinnacle West
APS	 	Earnings News Release issued on January 30, 2008.	
 6 

Exhibit 99.1
Last Updated          1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
List of Contents
2007 Fourth Quarter Summary
2007 by Quarter
2006 by Quarter
2005 by Quarter
2004 by Quarter
Quarters may not sum to totals due to rounding.
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/2007Q4QuarStatsGloss.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 1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	 	12 Mo. Ended December	 	
Line	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	—	 	 	$	13	 	 	$	(13	)	 	$	284	 	 	$	270	 	 	$	14	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
3	 	APS Energy Services	 	 	(2	)	 	 	(2	)	 	 	—	 	 	 	—	 	 	 	(3	)	 	 	3	 	
4	 	SunCor	 	 	5	 	 	 	3	 	 	 	2	 	 	 	12	 	 	 	50	 	 	 	(38	)	
5	 	El Dorado	 	 	(1	)	 	 	(1	)	 	 	—	 	 	 	(6	)	 	 	(3	)	 	 	(3	)	
6	 	Parent Company	 	 	1	 	 	 	(3	)	 	 	4	 	 	 	9	 	 	 	3	 	 	 	6	 	

7	 	Income From Continuing Operations	 	 	3	 	 	 	10	 	 	 	(7	)	 	 	299	 	 	 	317	 	 	 	(18	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(1	)	
9	 	SunCor	 	 	3	 	 	 	8	 	 	 	(5	)	 	 	11	 	 	 	10	 	 	 	1	 	
10	 	Other	 	 	(3	)	 	 	—	 	 	 	(3	)	 	 	(3	)	 	 	(1	)	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	—	 	 	 	8	 	 	 	(8	)	 	 	8	 	 	 	10	 	 	 	(2	)	
12	 	Net Income	 	$	3	 	 	$	18	 	 	$	(15	)	 	$	307	 	 	$	327	 	 	$	(20	)	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
13	 	Arizona Public Service	 	$	—	 	 	$	0.13	 	 	$	(0.13	)	 	$	2.82	 	 	$	2.70	 	 	$	0.12	 	
14	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
15	 	APS Energy Services	 	 	(0.02	)	 	 	(0.02	)	 	 	—	 	 	 	(0.01	)	 	 	(0.03	)	 	 	0.02	 	
16	 	SunCor	 	 	0.05	 	 	 	0.03	 	 	 	0.02	 	 	 	0.12	 	 	 	0.50	 	 	 	(0.38	)	
17	 	El Dorado	 	 	(0.01	)	 	 	(0.01	)	 	 	—	 	 	 	(0.06	)	 	 	(0.03	)	 	 	(0.03	)	
18	 	Parent Company	 	 	0.01	 	 	 	(0.03	)	 	 	0.04	 	 	 	0.09	 	 	 	0.03	 	 	 	0.06	 	

19	 	Income From Continuing Operations	 	 	0.03	 	 	 	0.10	 	 	 	(0.07	)	 	 	2.96	 	 	 	3.17	 	 	 	(0.21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
21	 	SunCor	 	 	0.03	 	 	 	0.08	 	 	 	(0.05	)	 	 	0.11	 	 	 	0.10	 	 	 	0.01	 	
22	 	Other	 	 	(0.03	)	 	 	—	 	 	 	(0.03	)	 	 	(0.02	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	—	 	 	 	0.08	 	 	 	(0.08	)	 	 	0.09	 	 	 	0.10	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.03	 	 	$	0.18	 	 	$	(0.15	)	 	$	3.05	 	 	$	3.27	 	 	$	(0.22	)	

25	 	BOOK VALUE PER SHARE	 	$	35.09	*	 	$	34.48	 	 	$	0.61	 	 	$	35.09	*	 	$	34.48	 	 	$	0.61	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	100,963	 	 	 	100,474	 	 	 	489	 	 	 	100,835	 	 	 	100,010	 	 	 	825	 	
27	 	End of Period	 	 	100,486	 	 	 	99,959	 	 	 	527	 	 	 	100,486	 	 	 	99,959	 	 	 	838	 	

*	 	Estimate	

See Glossary of Terms.	 	Page 2 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	 	12 Mo. Ended December	 	
Line	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	263	 	 	$	242	 	 	$	21	 	 	$	1,418	 	 	$	1,271	 	 	$	147	 	
29	 	Business	 	 	323	 	 	 	302	 	 	 	21	 	 	 	1,354	 	 	 	1,239	 	 	 	115	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	586	 	 	 	544	 	 	 	42	 	 	 	2,772	 	 	 	2,510	 	 	 	262	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	7	 	 	 	(3	)	 	 	10	 	 	 	33	 	 	 	22	 	 	 	11	 	
32	 	Off-system sales	 	 	17	 	 	 	12	 	 	 	5	 	 	 	50	 	 	 	46	 	 	 	4	 	
33	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	—	 	 	 	29	 	 	 	26	 	 	 	3	 	
34	 	Other miscellaneous services	 	 	10	 	 	 	9	 	 	 	1	 	 	 	34	 	 	 	31	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	627	 	 	 	569	 	 	 	58	 	 	 	2,918	 	 	 	2,635	 	 	 	283	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	78	 	 	 	71	 	 	 	7	 	 	 	343	 	 	 	331	 	 	 	12	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	705	 	 	$	640	 	 	$	65	 	 	$	3,261	 	 	$	2,966	 	 	$	295	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,667	 	 	 	2,571	 	 	 	96	 	 	 	13,772	 	 	 	12,994	 	 	 	778	 	
39	 	Business	 	 	3,685	 	 	 	3,584	 	 	 	101	 	 	 	15,400	 	 	 	14,976	 	 	 	424	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	6,352	 	 	 	6,155	 	 	 	197	 	 	 	29,172	 	 	 	27,970	 	 	 	1,202	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	190	 	 	 	166	 	 	 	24	 	 	 	923	 	 	 	883	 	 	 	40	 	
42	 	Off-system sales	 	 	448	 	 	 	504	 	 	 	(56	)	 	 	1,479	 	 	 	1,613	 	 	 	(134	)	
43	 	Retail load hedge management	 	 	125	 	 	 	340	 	 	 	(215	)	 	 	1,025	 	 	 	1,590	 	 	 	(565	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	7,115	 	 	 	7,165	 	 	 	(50	)	 	 	32,599	 	 	 	32,056	 	 	 	543	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	2,334	 	 	 	3,690	 	 	 	(1,356	)	 	 	10,620	 	 	 	16,355	 	 	 	(5,735	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	9,449	 	 	 	10,855	 	 	 	(1,406	)	 	 	43,219	 	 	 	48,411	 	 	 	(5,192	)	

 	 	 	
See Glossary of Terms.	 	Page 3 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	 	12 Mo. Ended December	 	
Line	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	150	 	 	$	209	 	 	$	(59	)	 	$	160	 	 	$	173	 	 	$	(13	)	
48	 	Deferred fuel and purchased power costs — current period	 	 	(9	)	 	 	19	 	 	 	(28	)	 	 	189	 	 	 	244	 	 	 	(55	)	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(14	)	 	 	—	 	 	 	(14	)	
50	 	Interest on deferred fuel	 	 	2	 	 	 	2	 	 	 	—	 	 	 	7	 	 	 	8	 	 	 	(1	)	
51	 	Amounts recovered through revenues	 	 	(32	)	 	 	(70	)	 	 	38	 	 	 	(231	)	 	 	(265	)	 	 	34	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	111	 	 	$	160	 	 	$	(49	)	 	$	111	 	 	$	160	 	 	$	(49	)	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	11	 	 	$	17	 	 	$	(6	)	 	$	54	 	 	$	54	 	 	$	—	 	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(3	)	 	 	(6	)	 	 	3	 	 	 	(7	)	 	 	(14	)	 	 	7	 	
55	 	Change in mark-to-market value of forward sales	 	 	2	 	 	 	(3	)	 	 	5	 	 	 	1	 	 	 	—	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	10	 	 	$	8	 	 	$	2	 	 	$	48	 	 	$	40	 	 	$	8	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	—	 	 	$	5	 	 	$	(5	)	 	$	7	 	 	$	14	 	 	$	(7	)	
58	 	Pinnacle West	 	 	9	 	 	 	2	 	 	 	7	 	 	 	31	 	 	 	17	 	 	 	14	 	
59	 	APS Energy Services	 	 	1	 	 	 	1	 	 	 	—	 	 	 	10	 	 	 	9	 	 	 	1	 	
60	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total gross margin	 	$	10	 	 	$	8	 	 	$	2	 	 	$	48	 	 	$	40	 	 	$	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $9 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: 2008, $2 million; and thereafter, $7 million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $3 million was transferred to “realized” for the fourth quarter of 2007. A $3 million realized gain is included in the $11 million on line 53 for the fourth quarter of 2007.	
 		
(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  1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	12 Mo. Ended December	
Line	 	 	 	2007	 	2006	 	Incr (Decr)	 	2007	 	2006	 	Incr (Decr)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Residential	 	 	972,654	 	 	 	949,132	 	 	 	23,522	 	 	 	966,013	 	 	 	936,464	 	 	 	29,549	 	
63	 	Business	 	 	121,898	 	 	 	117,342	 	 	 	4,556	 	 	 	120,314	 	 	 	115,431	 	 	 	4,883	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Total	 	 	1,094,552	 	 	 	1,066,474	 	 	 	28,078	 	 	 	1,086,327	 	 	 	1,051,895	 	 	 	34,432	 	
65	 	Wholesale customers	 	 	56	 	 	 	80	 	 	 	(24	)	 	 	61	 	 	 	77	 	 	 	(16	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Total customers	 	 	1,094,608	 	 	 	1,066,554	 	 	 	28,054	 	 	 	1,086,388	 	 	 	1,051,972	 	 	 	34,416	 	

67	 	Customer growth (% over prior year)	 	 	2.6	%	 	 	4.1	%	 	 	(1.5	)%	 	 	3.3	%	 	 	4.4	%	 	 	(1.1	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	2,702	 	 	 	2,634	 	 	 	68	 	 	 	13,369	 	 	 	13,004	 	 	 	365	 	
69	 	Business	 	 	3,660	 	 	 	3,603	 	 	 	57	 	 	 	15,236	 	 	 	15,016	 	 	 	220	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Total	 	 	6,362	 	 	 	6,237	 	 	 	125	 	 	 	28,605	 	 	 	28,020	 	 	 	585	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Residential	 	 	2,742	 	 	 	2,709	 	 	 	33	 	 	 	14,257	 	 	 	13,876	 	 	 	381	 	
72	 	Business	 	 	30,230	 	 	 	30,552	 	 	 	(322	)	 	 	127,998	 	 	 	129,749	 	 	 	(1,751	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
73	 	Residential	 	 	2,778	 	 	 	2,775	 	 	 	3	 	 	 	13,839	 	 	 	13,886	 	 	 	(47	)	
74	 	Business	 	 	30,027	 	 	 	30,706	 	 	 	(679	)	 	 	126,644	 	 	 	130,082	 	 	 	(3,438	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	System peak demand	 	 	5,376	 	 	 	5,316	 	 	 	60	 	 	 	7,545	 	 	 	7,652	 	 	 	(107	)	
See Glossary of Terms.
 Page 5 of 31 

 

Last Updated  1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	12 Mo. Ended December	
Line	 	 	 	2007	 	2006	 	Incr (Decr)	 	2007	 	2006	 	Incr (Decr)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Nuclear	 	 	1,430	 	 	 	1,868	 	 	 	(438	)	 	 	7,793	 	 	 	6,988	 	 	 	805	 	
77	 	Coal	 	 	3,350	 	 	 	3,337	 	 	 	13	 	 	 	13,342	 	 	 	13,176	 	 	 	166	 	
78	 	Gas, oil and other	 	 	1,553	 	 	 	1,628	 	 	 	(75	)	 	 	6,700	 	 	 	7,384	 	 	 	(684	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Total generation production	 	 	6,333	 	 	 	6,833	 	 	 	(500	)	 	 	27,835	 	 	 	27,548	 	 	 	287	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Firm load	 	 	913	 	 	 	223	 	 	 	690	 	 	 	5,388	 	 	 	4,290	 	 	 	1,098	 	
81	 	Marketing and trading	 	 	2,730	 	 	 	4,326	 	 	 	(1,596	)	 	 	12,516	 	 	 	18,868	 	 	 	(6,352	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total purchased power	 	 	3,643	 	 	 	4,549	 	 	 	(906	)	 	 	17,904	 	 	 	23,158	 	 	 	(5,254	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total energy sources	 	 	9,976	 	 	 	11,382	 	 	 	(1,406	)	 	 	45,739	 	 	 	50,706	 	 	 	(4,967	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Nuclear	 	 	57	%	 	 	75	%	 	 	(18	)%	 	 	79	%	 	 	71	%	 	 	8	%	
85	 	Coal	 	 	87	%	 	 	87	%	 	 	0	%	 	 	87	%	 	 	87	%	 	 	0	%	
86	 	Gas, oil and other	 	 	21	%	 	 	22	%	 	 	(1	)%	 	 	23	%	 	 	25	%	 	 	(2	)%	
87	 	System average	 	 	47	%	 	 	50	%	 	 	(3	)%	 	 	52	%	 	 	51	%	 	 	1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
88	 	Nuclear	 	 	470	 	 	 	267	 	 	 	203	 	 	 	204	 	 	 	153	 	 	 	51	 	
89	 	Coal	 	 	164	 	 	 	155	 	 	 	9	 	 	 	158	 	 	 	82	 	 	 	76	 	
90	 	Gas	 	 	264	 	 	 	286	 	 	 	(22	)	 	 	271	 	 	 	89	 	 	 	182	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Total	 	 	898	 	 	 	708	 	 	 	190	 	 	 	633	 	 	 	324	 	 	 	309	 	

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

 

Last Updated  1/30/2008
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended December	 	12 Mo. Ended December	
Line	 	 	 	2007	 	2006	 	Incr (Decr)	 	2007	 	2006	 	Incr (Decr)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Palo Verde	 	$	57.18	 	 	$	52.72	 	 	$	4.46	 	 	$	61.43	 	 	$	56.76	 	 	$	4.67	 	
93	 	SP15	 	$	68.13	 	 	$	62.16	 	 	$	5.97	 	 	$	66.44	 	 	$	61.95	 	 	$	4.49	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Palo Verde	 	$	44.39	 	 	$	39.62	 	 	$	4.77	 	 	$	41.24	 	 	$	37.09	 	 	$	4.15	 	
95	 	SP15	 	$	50.71	 	 	$	46.27	 	 	$	4.44	 	 	$	45.99	 	 	$	40.61	 	 	$	5.38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Cooling degree-days	 	 	595	 	 	 	457	 	 	 	138	 	 	 	5,161	 	 	 	4,695	 	 	 	466	 	
97	 	Heating degree-days	 	 	398	 	 	 	383	 	 	 	15	 	 	 	995	 	 	 	851	 	 	 	144	 	
98	 	Average humidity	 	 	30	%	 	 	33	%	 	 	(3	)%	 	 	30	%	 	 	28	%	 	 	2	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Cooling degree-days	 	 	441	 	 	 	441	 	 	 	—	 	 	 	4,640	 	 	 	4,640	 	 	 	—	 	
100	 	Heating degree-days	 	 	296	 	 	 	296	 	 	 	—	 	 	 	840	 	 	 	840	 	 	 	—	 	
101	 	Average humidity	 	 	38	%	 	 	38	%	 	 	0	%	 	 	33	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
102	 	Single-family	 	 	1,877	 	 	 	2,939	 	 	 	(1,062	)	 	 	21,168	 	 	 	26,507	 	 	 	(5,339	)	
103	 	Multi-family	 	 	2,436	 	 	 	817	 	 	 	1,619	 	 	 	12,833	 	 	 	9,895	 	 	 	2,938	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Total	 	 	4,313	 	 	 	3,756	 	 	 	557	 	 	 	34,001	 	 	 	36,402	 	 	 	(2,401	)	

 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Payroll job growth (% over prior year)	 	 	1.6	%	 	 	5.1	%	 	 	(3.5	)%	 	 	3.0	%	 	 	5.4	%	 	 	(2.4	)%	
106	 	Unemployment rate (%, seasonally adjusted)	 	 	3.8	%	 	 	4.1	%	 	 	(0.3	)%	 	 	3.8	%	 	 	4.1	%	 	 	(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	
 		
(d)	 	Economic indicators reflect periods ended November 30, 2007 (latest available data) and November 30, 2006.	
 		
See Glossary of Terms.
 Page 7 of 31 

Exhibit 99.3
Last Updated 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter

2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	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	 	$	4	 	 	$	75	 	 	$	204	 	 	$	—	 	 	$	284	 	 	$	14	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
3	 	APS Energy Services	 	 	1	 	 	 	(1	)	 	 	2	 	 	 	(2	)	 	 	—	 	 	 	3	 	
4	 	SunCor	 	 	8	 	 	 	—	 	 	 	(2	)	 	 	5	 	 	 	12	 	 	 	(38	)	
5	 	El Dorado	 	 	(2	)	 	 	—	 	 	 	(3	)	 	 	(1	)	 	 	(6	)	 	 	(3	)	
6	 	Parent Company	 	 	5	 	 	 	5	 	 	 	—	 	 	 	1	 	 	 	9	 	 	 	6	 	

7	 	Income From Continuing Operations	 	 	16	 	 	 	79	 	 	 	201	 	 	 	3	 	 	 	299	 	 	 	(18	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	
9	 	SunCor	 	 	1	 	 	 	—	 	 	 	8	 	 	 	3	 	 	 	11	 	 	 	1	 	
10	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(3	)	 	 	(3	)	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	1	 	 	 	—	 	 	 	8	 	 	 	—	 	 	 	8	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	17	 	 	$	79	 	 	$	209	 	 	$	3	 	 	$	307	 	 	$	(20	)	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
13	 	Arizona Public Service	 	$	0.04	 	 	$	0.75	 	 	$	2.03	 	 	$	—	 	 	$	2.82	 	 	$	0.12	 	
14	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
15	 	APS Energy Services	 	 	0.01	 	 	 	(0.01	)	 	 	0.01	 	 	 	(0.02	)	 	 	(0.01	)	 	 	0.02	 	
16	 	SunCor	 	 	0.09	 	 	 	—	 	 	 	(0.02	)	 	 	0.05	 	 	 	0.12	 	 	 	(0.38	)	
17	 	El Dorado	 	 	(0.02	)	 	 	—	 	 	 	(0.03	)	 	 	(0.01	)	 	 	(0.06	)	 	 	(0.03	)	
18	 	Parent Company	 	 	0.04	 	 	 	0.04	 	 	 	—	 	 	 	0.01	 	 	 	0.09	 	 	 	0.06	 	

19	 	Income From Continuing Operations	 	 	0.16	 	 	 	0.78	 	 	 	1.99	 	 	 	0.03	 	 	 	2.96	 	 	 	(0.21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
21	 	SunCor	 	 	—	 	 	 	—	 	 	 	0.08	 	 	 	0.03	 	 	 	0.11	 	 	 	0.01	 	
22	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.03	)	 	 	(0.02	)	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	—	 	 	 	—	 	 	 	0.08	 	 	 	—	 	 	 	0.09	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.16	 	 	$	0.78	 	 	$	2.07	 	 	$	0.03	 	 	$	3.05	 	 	$	(0.22	)	

25	 	BOOK VALUE PER SHARE	 	$	34.45	 	 	$	34.13	 	 	$	35.55	 	 	$	35.09	*	 	$	35.09	*	 	 	0.61	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	100,622	 	 	 	100,779	 	 	 	100,829	 	 	 	100,963	 	 	 	100,835	 	 	 	825	 	
27	 	End of Period	 	 	100,115	 	 	 	100,290	 	 	 	100,367	 	 	 	100,486	 	 	 	100,486	 	 	 	838	 	

*	 	Estimate	

See Glossary of Terms.	 	Page 8 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter

2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	246	 	 	$	335	 	 	$	574	 	 	$	263	 	 	$	1,418	 	 	$	147	 	
29	 	Business	 	 	264	 	 	 	342	 	 	 	425	 	 	 	323	 	 	 	1,354	 	 	 	115	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	510	 	 	 	677	 	 	 	999	 	 	 	586	 	 	 	2,772	 	 	 	262	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	5	 	 	 	9	 	 	 	12	 	 	 	7	 	 	 	33	 	 	 	11	 	
32	 	Off-system sales	 	 	7	 	 	 	10	 	 	 	16	 	 	 	17	 	 	 	50	 	 	 	4	 	
33	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	8	 	 	 	7	 	 	 	29	 	 	 	3	 	
34	 	Other miscellaneous services	 	 	7	 	 	 	8	 	 	 	9	 	 	 	10	 	 	 	34	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	536	 	 	 	711	 	 	 	1,044	 	 	 	627	 	 	 	2,918	 	 	 	283	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	72	 	 	 	93	 	 	 	99	 	 	 	78	 	 	 	343	 	 	 	12	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	608	 	 	$	804	 	 	$	1,143	 	 	$	705	 	 	$	3,261	 	 	$	295	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,734	 	 	 	3,287	 	 	 	5,084	 	 	 	2,667	 	 	 	13,772	 	 	 	778	 	
39	 	Business	 	 	3,285	 	 	 	4,004	 	 	 	4,426	 	 	 	3,685	 	 	 	15,400	 	 	 	424	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	6,019	 	 	 	7,291	 	 	 	9,510	 	 	 	6,352	 	 	 	29,172	 	 	 	1,202	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	175	 	 	 	262	 	 	 	296	 	 	 	190	 	 	 	923	 	 	 	40	 	
42	 	Off-system sales	 	 	243	 	 	 	310	 	 	 	478	 	 	 	448	 	 	 	1,479	 	 	 	(134	)	
43	 	Retail load hedge management	 	 	117	 	 	 	254	 	 	 	529	 	 	 	125	 	 	 	1,025	 	 	 	(565	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	6,554	 	 	 	8,117	 	 	 	10,813	 	 	 	7,115	 	 	 	32,599	 	 	 	543	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	2,057	 	 	 	2,606	 	 	 	3,623	 	 	 	2,334	 	 	 	10,620	 	 	 	(5,735	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	8,611	 	 	 	10,723	 	 	 	14,436	 	 	 	9,449	 	 	 	43,219	 	 	 	(5,192	)	

 	 	 	
See Glossary of Terms.	 	Page 9 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter

2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	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)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	160	 	 	$	118	 	 	$	137	 	 	$	150	 	 	$	160	 	 	 	(13	)	
48	 	Deferred fuel and purchased power costs — current period	 	 	25	 	 	 	104	 	 	 	69	 	 	 	(9	)	 	 	189	 	 	 	(55	)	
49	 	Regulatory disallowance	 	 	—	 	 	 	(14	)	 	 	—	 	 	 	—	 	 	 	(14	)	 	 	(14	)	
50	 	Interest on deferred fuel	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	7	 	 	 	(1	)	
51	 	Amounts recovered through revenues	 	 	(69	)	 	 	(72	)	 	 	(58	)	 	 	(32	)	 	 	(231	)	 	 	34	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	118	 	 	$	137	 	 	$	150	 	 	$	111	 	 	$	111	 	 	$	(49	)	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	12	 	 	$	22	 	 	$	6	 	 	$	11	 	 	$	54	 	 	$	—	 	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(8	)	 	 	1	 	 	 	(3	)	 	 	(3	)	 	 	(7	)	 	 	7	 	
55	 	Change in mark-to-market value of forward sales	 	 	10	 	 	 	(6	)	 	 	2	 	 	 	2	 	 	 	1	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	14	 	 	$	17	 	 	$	5	 	 	$	10	 	 	$	48	 	 	$	8	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	(1	)	 	$	7	 	 	$	—	 	 	$	—	 	 	$	7	 	 	$	(7	)	
58	 	Pinnacle West	 	 	10	 	 	 	9	 	 	 	1	 	 	 	9	 	 	 	31	 	 	 	14	 	
59	 	APS Energy Services	 	 	5	 	 	 	1	 	 	 	4	 	 	 	1	 	 	 	10	 	 	 	1	 	
60	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total gross margin	 	$	14	 	 	$	17	 	 	$	5	 	 	$	10	 	 	$	48	 	 	$	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $9 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: 2008, $2 million; and thereafter, $7million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $7 million was transferred to “realized” for the total year of 2007. A $7 million realized gain is included in the $54 million on line 53 for the total year of 2007.	
 		
(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 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 		
Line	 	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 		
 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	62	 	 	Residential	 	 	965,428	 	 	 	962,095	 	 	 	963,874	 	 	 	972,654	 	 	 	966,013	 	 	 	29,549	 		
 	63	 	 	Business	 	 	118,649	 	 	 	119,792	 	 	 	120,918	 	 	 	121,898	 	 	 	120,314	 	 	 	4,883	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	64	 	 	Total	 	 	1,084,077	 	 	 	1,081,887	 	 	 	1,084,792	 	 	 	1,094,552	 	 	 	1,086,327	 	 	 	34,432	 		
 	65	 	 	Wholesale customers	 	 	63	 	 	 	62	 	 	 	61	 	 	 	56	 	 	 	61	 	 	 	(16	)		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	66	 	 	Total customers	 	 	1,084,140	 	 	 	1,081,949	 	 	 	1,084,853	 	 	 	1,094,608	 	 	 	1,086,388	 	 	 	34,416	 		

 	67	 	 	Customer growth (% over prior year)	 	 	3.8	%	 	 	3.5	%	 	 	3.2	%	 	 	2.6	%	 	 	3.3	%	 	 	(1.1	)%		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	68	 	 	Residential	 	 	2,648	 	 	 	3,214	 	 	 	4,805	 	 	 	2,702	 	 	 	13,369	 	 	 	365	 		
 	69	 	 	Business	 	 	3,228	 	 	 	3,977	 	 	 	4,371	 	 	 	3,660	 	 	 	15,236	 	 	 	220	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	70	 	 	Total	 	 	5,876	 	 	 	7,191	 	 	 	9,176	 	 	 	6,362	 	 	 	28,605	 	 	 	585	 		

 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	71	 	 	Residential	 	 	2,832	 	 	 	3,417	 	 	 	5,275	 	 	 	2,742	 	 	 	14,257	 	 	 	381	 		
 	72	 	 	Business	 	 	27,687	 	 	 	33,425	 	 	 	36,601	 	 	 	30,230	 	 	 	127,998	 	 	 	(1,751	)		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	73	 	 	Residential	 	 	2,743	 	 	 	3,340	 	 	 	4,985	 	 	 	2,778	 	 	 	13,839	 	 	 	(47	)		
 	74	 	 	Business	 	 	27,204	 	 	 	33,202	 	 	 	36,152	 	 	 	30,027	 	 	 	126,644	 	 	 	(3,438	)		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	75	 	 	System peak demand	 	 	4,781	 	 	 	6,982	 	 	 	7,545	 	 	 	5,376	 	 	 	7,545	 	 	 	(107	)		

See Glossary of Terms.	 	Page 11 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	76	 	 	Nuclear	 	 	2,299	 	 	 	1,846	 	 	 	2,218	 	 	 	1,430	 	 	 	7,793	 	 	 	805	 	
 	77	 	 	Coal	 	 	3,164	 	 	 	3,265	 	 	 	3,563	 	 	 	3,350	 	 	 	13,342	 	 	 	166	 	
 	78	 	 	Gas, oil and other	 	 	1,151	 	 	 	1,517	 	 	 	2,479	 	 	 	1,553	 	 	 	6,700	 	 	 	(684	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Total generation production	 	 	6,614	 	 	 	6,628	 	 	 	8,260	 	 	 	6,333	 	 	 	27,835	 	 	 	287	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	80	 	 	Firm load	 	 	278	 	 	 	1,676	 	 	 	2,521	 	 	 	913	 	 	 	5,388	 	 	 	1,098	 	
 	81	 	 	Marketing and trading	 	 	2,262	 	 	 	3,055	 	 	 	4,469	 	 	 	2,730	 	 	 	12,516	 	 	 	(6,352	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	82	 	 	Total purchased power	 	 	2,540	 	 	 	4,731	 	 	 	6,990	 	 	 	3,643	 	 	 	17,904	 	 	 	(5,254	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	83	 	 	Total energy sources	 	 	9,154	 	 	 	11,359	 	 	 	15,250	 	 	 	9,976	 	 	 	45,739	 	 	 	(4,967	)	

 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	84	 	 	Nuclear	 	 	94	%	 	 	75	%	 	 	89	%	 	 	57	%	 	 	79	%	 	 	8	%	
 	85	 	 	Coal	 	 	84	%	 	 	86	%	 	 	93	%	 	 	87	%	 	 	87	%	 	 	0	%	
 	86	 	 	Gas, oil and other	 	 	16	%	 	 	21	%	 	 	34	%	 	 	21	%	 	 	23	%	 	 	(2	)%	
 	87	 	 	System average	 	 	50	%	 	 	49	%	 	 	61	%	 	 	47	%	 	 	52	%	 	 	1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Nuclear	 	 	57	 	 	 	266	 	 	 	22	 	 	 	470	 	 	 	204	 	 	 	51	 	
 	89	 	 	Coal	 	 	203	 	 	 	189	 	 	 	79	 	 	 	164	 	 	 	158	 	 	 	76	 	
 	90	 	 	Gas	 	 	267	 	 	 	405	 	 	 	147	 	 	 	264	 	 	 	271	 	 	 	182	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	91	 	 	Total	 	 	527	 	 	 	860	 	 	 	248	 	 	 	898	 	 	 	633	 	 	 	309	 	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 12 of 31	

 

Last Updated 1/30/2008
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	Palo Verde	 	$	54.62	 	 	$	64.64	 	 	$	69.26	 	 	$	57.18	 	 	$	61.43	 	 	$	4.67	 	
 	93	 	 	SP15	 	$	60.02	 	 	$	68.75	 	 	$	68.84	 	 	$	68.13	 	 	$	66.44	 	 	$	4.49	 	
 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	94	 	 	Palo Verde	 	$	42.06	 	 	$	41.46	 	 	$	37.03	 	 	$	44.39	 	 	$	41.24	 	 	$	4.15	 	
 	95	 	 	SP15	 	$	45.86	 	 	$	46.14	 	 	$	41.23	 	 	$	50.71	 	 	$	45.99	 	 	$	5.38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	96	 	 	Cooling degree-days	 	 	172	 	 	 	1,708	 	 	 	2,686	 	 	 	595	 	 	 	5,161	 	 	 	466	 	
 	97	 	 	Heating degree-days	 	 	589	 	 	 	8	 	 	 	—	 	 	 	398	 	 	 	995	 	 	 	144	 	
 	98	 	 	Average humidity	 	 	36	%	 	 	18	%	 	 	30	%	 	 	30	%	 	 	30	%	 	 	2	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	99	 	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
 	100	 	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
 	101	 	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	102	 	 	Single-family	 	 	7,017	 	 	 	7,447	 	 	 	4,827	 	 	 	1,877	 	 	 	21,168	 	 	 	(5,339	)	
 	103	 	 	Multi-family	 	 	4,131	 	 	 	3,573	 	 	 	2,687	 	 	 	2,436	 	 	 	12,833	 	 	 	2,938	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	104	 	 	Total	 	 	11,148	 	 	 	11,020	 	 	 	7,514	 	 	 	4,313	 	 	 	34,001	 	 	 	(2,401	)	

 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Payroll job growth (% over prior year)	 	 	4.1	%	 	 	3.3	%	 	 	2.6	%	 	 	1.6	%	 	 	3.0	%	 	 	(2.4	)%	
 	106	 	 	Unemployment rate (%, seasonally adjusted)	 	 	4.0	%	 	 	3.7	%	 	 	3.6	%	 	 	3.8	%	 	 	3.8	%	 	 	(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	
 		
(d)	 	Economic indicators reflect periods ended November 30, 2007 (latest available data).	

See Glossary of Terms.	 	Page 13 of 31	

 

Exhibit 99.4
Last Updated 1/30/2008
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	 	 	$	13	 	 	$	270	 	 	$	100	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	85	 	
3	 	APS Energy Services	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	(2	)	 	 	(3	)	 	 	3	 	
4	 	SunCor	 	 	21	 	 	 	8	 	 	 	17	 	 	 	3	 	 	 	50	 	 	 	11	 	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(3	)	 	 	(1	)	
6	 	Parent Company	 	 	(3	)	 	 	9	 	 	 	—	 	 	 	(3	)	 	 	3	 	 	 	(104	)	

7	 	Income From Continuing Operations	 	 	12	 	 	 	111	 	 	 	184	 	 	 	10	 	 	 	317	 	 	 	94	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	68	 	
9	 	SunCor	 	 	1	 	 	 	1	 	 	 	—	 	 	 	8	 	 	 	10	 	 	 	(7	)	
10	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	1	 	 	 	1	 	 	 	—	 	 	 	8	 	 	 	10	 	 	 	57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	13	 	 	$	112	 	 	$	184	 	 	$	18	 	 	$	327	 	 	$	151	 	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
13	 	Arizona Public Service	 	$	(0.06	)	 	$	0.95	 	 	$	1.69	 	 	$	0.13	 	 	$	2.70	 	 	$	0.93	 	
14	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.89	 	
15	 	APS Energy Services	 	 	0.01	 	 	 	—	 	 	 	(0.02	)	 	 	(0.02	)	 	 	(0.03	)	 	 	0.03	 	
16	 	SunCor	 	 	0.21	 	 	 	0.07	 	 	 	0.17	 	 	 	0.03	 	 	 	0.50	 	 	 	0.10	 	
17	 	El Dorado	 	 	(0.01	)	 	 	—	 	 	 	—	 	 	 	(0.01	)	 	 	(0.03	)	 	 	(0.01	)	
18	 	Parent Company	 	 	(0.03	)	 	 	0.09	 	 	 	—	 	 	 	(0.03	)	 	 	0.03	 	 	 	(1.08	)	

19	 	Income From Continuing Operations	 	 	0.12	 	 	 	1.11	 	 	 	1.84	 	 	 	0.10	 	 	 	3.17	 	 	 	0.86	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.69	 	
21	 	SunCor	 	 	0.01	 	 	 	0.02	 	 	 	—	 	 	 	0.08	 	 	 	0.10	 	 	 	(0.07	)	
22	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.03	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	0.01	 	 	 	0.02	 	 	 	—	 	 	 	0.08	 	 	 	0.10	 	 	 	0.59	 	
24	 	Net Income	 	$	0.13	 	 	$	1.13	 	 	$	1.84	 	 	$	0.18	 	 	$	3.27	 	 	$	1.45	 	

25	 	BOOK VALUE PER SHARE	 	$	32.37	 	 	$	33.08	 	 	$	34.07	 	 	$	34.48	 	 	$	34.48	 	 	$	(0.10	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	99,449	 	 	 	99,640	 	 	 	99,973	 	 	 	100,474	 	 	 	100,010	 	 	 	3,420	 	
27	 	End of Period	 	 	99,187	 	 	 	99,284	 	 	 	99,648	 	 	 	99,959	 	 	 	99,959	 	 	 	902	 	

See Glossary of Terms.	 	Page 14 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	202	 	 	$	337	 	 	$	490	 	 	$	242	 	 	$	1,271	 	 	$	192	 	
29	 	Business	 	 	233	 	 	 	333	 	 	 	371	 	 	 	302	 	 	 	1,239	 	 	 	198	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	435	 	 	 	670	 	 	 	861	 	 	 	544	 	 	 	2,510	 	 	 	390	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	6	 	 	 	7	 	 	 	12	 	 	 	(3	)	 	 	22	 	 	 	(1	)	
32	 	Off-system sales	 	 	12	 	 	 	22	 	 	 	—	 	 	 	12	 	 	 	46	 	 	 	6	 	
33	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	7	 	 	 	7	 	 	 	26	 	 	 	—	 	
34	 	Other miscellaneous services	 	 	7	 	 	 	8	 	 	 	7	 	 	 	9	 	 	 	31	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	466	 	 	 	713	 	 	 	887	 	 	 	569	 	 	 	2,635	 	 	 	398	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	85	 	 	 	90	 	 	 	85	 	 	 	71	 	 	 	331	 	 	 	(21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	551	 	 	$	803	 	 	$	972	 	 	$	640	 	 	$	2,966	 	 	$	377	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,419	 	 	 	3,284	 	 	 	4,720	 	 	 	2,571	 	 	 	12,994	 	 	 	771	 	
39	 	Business	 	 	3,199	 	 	 	3,971	 	 	 	4,222	 	 	 	3,584	 	 	 	14,976	 	 	 	722	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	5,618	 	 	 	7,255	 	 	 	8,942	 	 	 	6,155	 	 	 	27,970	 	 	 	1,493	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	215	 	 	 	181	 	 	 	321	 	 	 	166	 	 	 	883	 	 	 	33	 	
42	 	Off-system sales	 	 	672	 	 	 	218	 	 	 	219	 	 	 	504	 	 	 	1,613	 	 	 	277	 	
43	 	Retail load hedge management	 	 	178	 	 	 	622	 	 	 	450	 	 	 	340	 	 	 	1,590	 	 	 	(1,420	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	6,683	 	 	 	8,276	 	 	 	9,932	 	 	 	7,165	 	 	 	32,056	 	 	 	383	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	3,962	 	 	 	3,862	 	 	 	4,841	 	 	 	3,690	 	 	 	16,355	 	 	 	(7,217	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	10,645	 	 	 	12,138	 	 	 	14,773	 	 	 	10,855	 	 	 	48,411	 	 	 	(6,834	)	

 	 	 	
See Glossary of Terms.	 	Page 15 of 31	

 

Last Updated 1/30/2008
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)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	173	 	 	$	169	 	 	$	175	 	 	 	209	 	 	$	173	 	 	$	173	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	13	 	 	 	78	 	 	 	134	 	 	 	19	 	 	 	244	 	 	 	73	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	1	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	8	 	 	 	6	 	
51	 	Amounts recovered through revenues	 	 	(18	)	 	 	(75	)	 	 	(102	)	 	 	(70	)	 	 	(265	)	 	 	(265	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	169	 	 	$	175	 	 	$	209	 	 	$	160	 	 	$	160	 	 	$	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	10	 	 	$	17	 	 	$	7	 	 	$	17	 	 	$	54	 	 	$	(1	)	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	(6	)	 	 	(14	)	 	 	2	 	
55	 	Change in mark-to-market value of forward sales	 	 	1	 	 	 	—	 	 	 	(3	)	 	 	(3	)	 	 	—	 	 	 	(20	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	10	 	 	$	16	 	 	$	3	 	 	$	8	 	 	$	40	 	 	$	(19	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	8	 	 	$	2	 	 	$	(3	)	 	$	5	 	 	$	14	 	 	$	20	 	
58	 	Pinnacle West	 	 	(1	)	 	 	11	 	 	 	4	 	 	 	2	 	 	 	17	 	 	 	(42	)	
59	 	APS Energy Services	 	 	3	 	 	 	3	 	 	 	2	 	 	 	1	 	 	 	9	 	 	 	8	 	
60	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(5	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total gross margin	 	$	10	 	 	$	16	 	 	$	3	 	 	$	8	 	 	$	40	 	 	$	(19	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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: 2007, $16 million; and 2008, $14 million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $14 million was transferred to “realized” for the total year 2006. A $14 million realized gain is included in the $54 million on line 53 for the total year 2006.	
 		
(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 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Residential	 	 	930,799	 	 	 	930,402	 	 	 	935,523	 	 	 	949,132	 	 	 	936,464	 	 	 	39,992	 	
63	 	Business	 	 	113,570	 	 	 	114,803	 	 	 	116,009	 	 	 	117,342	 	 	 	115,431	 	 	 	4,263	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Total	 	 	1,044,369	 	 	 	1,045,205	 	 	 	1,051,532	 	 	 	1,066,474	 	 	 	1,051,895	 	 	 	44,255	 	
65	 	Wholesale customers	 	 	75	 	 	 	76	 	 	 	76	 	 	 	80	 	 	 	77	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Total customers	 	 	1,044,444	 	 	 	1,045,281	 	 	 	1,051,608	 	 	 	1,066,554	 	 	 	1,051,972	 	 	 	44,254	 	

67	 	Customer growth (% over prior year)	 	 	4.5	%	 	 	4.6	%	 	 	4.4	%	 	 	4.1	%	 	 	4.4	%	 	 	0.1	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	2,475	 	 	 	3,123	 	 	 	4,772	 	 	 	2,634	 	 	 	13,004	 	 	 	695	 	
69	 	Business	 	 	3,248	 	 	 	3,933	 	 	 	4,231	 	 	 	3,603	 	 	 	15,016	 	 	 	731	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Total	 	 	5,723	 	 	 	7,056	 	 	 	9,003	 	 	 	6,237	 	 	 	28,020	 	 	 	1,426	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Residential	 	 	2,763	 	 	 	3,530	 	 	 	5,045	 	 	 	2,709	 	 	 	13,876	 	 	 	241	 	
72	 	Business	 	 	30,444	 	 	 	34,590	 	 	 	36,394	 	 	 	30,552	 	 	 	129,749	 	 	 	1,235	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
73	 	Residential	 	 	2,659	 	 	 	3,357	 	 	 	5,101	 	 	 	2,775	 	 	 	13,886	 	 	 	156	 	
74	 	Business	 	 	28,600	 	 	 	34,263	 	 	 	36,470	 	 	 	30,706	 	 	 	130,082	 	 	 	1,579	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	System peak demand	 	 	4,205	 	 	 	6,624	 	 	 	7,652	 	 	 	5,316	 	 	 	7,652	 	 	 	652	 	

See Glossary of Terms.	 	Page 17 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Nuclear	 	 	1,720	 	 	 	1,198	 	 	 	2,202	 	 	 	1,868	 	 	 	6,988	 	 	 	(521	)	
77	 	Coal	 	 	3,083	 	 	 	3,182	 	 	 	3,574	 	 	 	3,337	 	 	 	13,176	 	 	 	116	 	
78	 	Gas, oil and other	 	 	1,323	 	 	 	2,000	 	 	 	2,433	 	 	 	1,628	 	 	 	7,384	 	 	 	(1,051	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Total generation production	 	 	6,126	 	 	 	6,380	 	 	 	8,209	 	 	 	6,833	 	 	 	27,548	 	 	 	(1,456	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Firm load	 	 	365	 	 	 	1,740	 	 	 	1,962	 	 	 	223	 	 	 	4,290	 	 	 	816	 	
81	 	Marketing and trading	 	 	4,592	 	 	 	4,597	 	 	 	5,353	 	 	 	4,326	 	 	 	18,868	 	 	 	(6,845	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total purchased power	 	 	4,957	 	 	 	6,337	 	 	 	7,315	 	 	 	4,549	 	 	 	23,158	 	 	 	(6,029	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total energy sources	 	 	11,083	 	 	 	12,717	 	 	 	15,524	 	 	 	11,382	 	 	 	50,706	 	 	 	(7,485	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Nuclear	 	 	71	%	 	 	49	%	 	 	88	%	 	 	75	%	 	 	71	%	 	 	(6	)%	
85	 	Coal	 	 	83	%	 	 	84	%	 	 	94	%	 	 	87	%	 	 	87	%	 	 	0	%	
86	 	Gas, oil and other	 	 	18	%	 	 	28	%	 	 	34	%	 	 	22	%	 	 	25	%	 	 	(3	)%	
87	 	System average	 	 	46	%	 	 	48	%	 	 	61	%	 	 	50	%	 	 	51	%	 	 	(2	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out
of Service and
Replaced for Native
Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
88	 	Nuclear	 	 	306	 	 	 	553	 	 	 	97	 	 	 	267	 	 	 	153	 	 	 	39	 	
89	 	Coal	 	 	257	 	 	 	184	 	 	 	62	 	 	 	155	 	 	 	82	 	 	 	9	 	
90	 	Gas	 	 	201	 	 	 	117	 	 	 	109	 	 	 	286	 	 	 	89	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Total	 	 	764	 	 	 	854	 	 	 	268	 	 	 	708	 	 	 	324	 	 	 	44	 	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 18 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Palo Verde	 	$	53.78	 	 	$	54.63	 	 	$	65.89	 	 	$	52.72	 	 	$	56.76	 	 	$	(9.64	)	
93	 	SP15	 	$	58.34	 	 	$	55.39	 	 	$	71.89	 	 	$	62.16	 	 	$	61.95	 	 	$	(10.99	)	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Palo Verde	 	$	41.92	 	 	$	28.38	 	 	$	38.45	 	 	$	39.62	 	 	$	37.09	 	 	$	(10.46	)	
95	 	SP15	 	$	44.79	 	 	$	27.43	 	 	$	43.94	 	 	$	46.27	 	 	$	40.61	 	 	$	(11.45	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Cooling degree-days	 	 	43	 	 	 	1,740	 	 	 	2,455	 	 	 	457	 	 	 	4,695	 	 	 	32	 	
97	 	Heating degree-days	 	 	464	 	 	 	4	 	 	 	—	 	 	 	383	 	 	 	851	 	 	 	85	 	
98	 	Average humidity	 	 	28	%	 	 	18	%	 	 	33	%	 	 	33	%	 	 	28	%	 	 	(6	)%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
100	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
101	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
102	 	Single-family	 	 	8,716	 	 	 	8,883	 	 	 	5,969	 	 	 	4,408	 	 	 	27,976	 	 	 	(15,282	)	
103	 	Multi-family	 	 	2,887	 	 	 	2,976	 	 	 	3,215	 	 	 	1,029	 	 	 	10,107	 	 	 	2,329	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Total	 	 	11,603	 	 	 	11,859	 	 	 	9,184	 	 	 	5,437	 	 	 	38,083	 	 	 	(12,953	)	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Payroll job growth (% over prior year)	 	 	6.2	%	 	 	5.3	%	 	 	5.1	%	 	 	4.9	%	 	 	5.4	%	 	 	0.0	%	
106	 	Unemployment rate (%, seasonally adjusted)	 	 	4.2	%	 	 	4.1	%	 	 	4.0	%	 	 	4.1	%	 	 	4.1	%	 	 	(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 19 of 31	

 

Exhibit 99.5
Last Updated 1/30/2008
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	 	 	 	10	 	 	 	7	 	 	 	13	 	 	 	39	 	 	 	(2	)	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(35	)	
6	 	Parent Company	 	 	19	 	 	 	(2	)	 	 	88	 	 	 	2	 	 	 	107	 	 	 	79	 	

7	 	Income From Continuing Operations	 	 	30	 	 	 	85	 	 	 	85	 	 	 	24	 	 	 	223	 	 	 	(24	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	(7	)	 	 	(59	)	 	 	1	 	 	 	(3	)	 	 	(67	)	 	 	(55	)	
9	 	SunCor	 	 	1	 	 	 	1	 	 	 	14	 	 	 	—	 	 	 	17	 	 	 	13	 	
10	 	Other	 	 	—	 	 	 	—	 	 	 	4	 	 	 	—	 	 	 	3	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	(6	)	 	 	(58	)	 	 	19	 	 	 	(3	)	 	 	(47	)	 	 	(43	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	24	 	 	$	27	 	 	$	104	 	 	$	21	 	 	$	176	 	 	$	(67	)	

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

19	 	Income From Continuing Operations	 	 	0.32	 	 	 	0.88	 	 	 	0.86	 	 	 	0.24	 	 	 	2.31	 	 	 	(0.38	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	(0.06	)	 	 	(0.61	)	 	 	—	 	 	 	(0.03	)	 	 	(0.69	)	 	 	(0.57	)	
21	 	SunCor	 	 	0.01	 	 	 	0.01	 	 	 	0.15	 	 	 	0.01	 	 	 	0.17	 	 	 	0.13	 	
22	 	Other	 	 	—	 	 	 	—	 	 	 	0.04	 	 	 	—	 	 	 	0.03	 	 	 	(0.02	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	(0.05	)	 	 	(0.60	)	 	 	0.19	 	 	 	(0.02	)	 	 	(0.49	)	 	 	(0.46	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.27	 	 	$	0.28	 	 	$	1.05	 	 	$	0.22	 	 	$	1.82	 	 	$	(0.84	)	

25	 	BOOK VALUE PER SHARE	 	$	32.50	 	 	$	32.89	 	 	$	35.81	 	 	$	34.58	 	 	$	34.58	 	 	$	2.44	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	92,045	 	 	 	96,299	 	 	 	98,816	 	 	 	99,050	 	 	 	96,590	 	 	 	5,058	 	
27	 	End of Period	 	 	92,103	 	 	 	98,442	 	 	 	98,881	 	 	 	99,057	 	 	 	99,057	 	 	 	7,264	 	

See Glossary of Terms.	 	Page 20 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	190	 	 	$	268	 	 	$	414	 	 	$	207	 	 	$	1,079	 	 	$	95	 	
29	 	Business	 	 	209	 	 	 	281	 	 	 	308	 	 	 	243	 	 	 	1,041	 	 	 	63	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	399	 	 	 	549	 	 	 	722	 	 	 	450	 	 	 	2,120	 	 	 	158	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	3	 	 	 	5	 	 	 	9	 	 	 	6	 	 	 	23	 	 	 	7	 	
32	 	Off-system sales	 	 	—	 	 	 	12	 	 	 	8	 	 	 	20	 	 	 	40	 	 	 	40	 	
33	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	7	 	 	 	5	 	 	 	26	 	 	 	(6	)	
34	 	Other miscellaneous services	 	 	7	 	 	 	7	 	 	 	7	 	 	 	7	 	 	 	28	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	416	 	 	 	580	 	 	 	753	 	 	 	488	 	 	 	2,237	 	 	 	202	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	89	 	 	 	71	 	 	 	107	 	 	 	84	 	 	 	352	 	 	 	(49	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	505	 	 	$	651	 	 	$	860	 	 	$	572	 	 	$	2,589	 	 	$	153	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,367	 	 	 	2,889	 	 	 	4,449	 	 	 	2,518	 	 	 	12,223	 	 	 	696	 	
39	 	Business	 	 	3,042	 	 	 	3,684	 	 	 	4,100	 	 	 	3,427	 	 	 	14,254	 	 	 	428	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	5,409	 	 	 	6,573	 	 	 	8,549	 	 	 	5,945	 	 	 	26,477	 	 	 	1,124	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	155	 	 	 	200	 	 	 	269	 	 	 	227	 	 	 	850	 	 	 	141	 	
42	 	Off-system sales	 	 	—	 	 	 	598	 	 	 	212	 	 	 	526	 	 	 	1,336	 	 	 	1,336	 	
43	 	Retail load hedge management	 	 	750	 	 	 	702	 	 	 	1,026	 	 	 	532	 	 	 	3,010	 	 	 	278	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	6,314	 	 	 	8,073	 	 	 	10,056	 	 	 	7,230	 	 	 	31,673	 	 	 	2,879	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	6,060	 	 	 	5,009	 	 	 	7,263	 	 	 	5,240	 	 	 	23,572	 	 	 	(6,606	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	12,374	 	 	 	13,082	 	 	 	17,319	 	 	 	12,470	 	 	 	55,245	 	 	 	(3,727	)	

 	 	 	
See Glossary of Terms.	 	Page 21 of 31	

 

Last Updated 1/30/2008
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)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	—	 	 	$	—	 	 	$	38	 	 	$	143	 	 	$	—	 	 	$	—	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	—	 	 	 	38	 	 	 	104	 	 	 	29	 	 	 	171	 	 	 	171	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	 	 	2	 	 	 	2	 	
51	 	Amounts recovered through revenues	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	—	 	 	$	38	 	 	$	143	 	 	$	173	 	 	$	173	 	 	$	173	 	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	12	 	 	$	18	 	 	$	3	 	 	$	23	 	 	$	55	 	 	$	(9	)	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(3	)	 	 	(8	)	 	 	3	 	 	 	(17	)	 	 	(16	)	 	 	(11	)	
55	 	Change in mark-to-market value of forward sales	 	 	10	 	 	 	3	 	 	 	14	 	 	 	1	 	 	 	20	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	19	 	 	$	13	 	 	$	20	 	 	$	7	 	 	$	59	 	 	$	(21	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	(4	)	 	$	3	 	 	$	(8	)	 	$	3	 	 	$	(6	)	 	$	(1	)	
58	 	Pinnacle West	 	 	21	 	 	 	6	 	 	 	26	 	 	 	6	 	 	 	59	 	 	 	34	 	
59	 	APS Energy Services	 	 	(3	)	 	 	4	 	 	 	2	 	 	 	(2	)	 	 	1	 	 	 	(13	)	
60	 	Pinnacle West Energy	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	(41	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Total gross margin	 	$	19	 	 	$	13	 	 	$	20	 	 	$	7	 	 	$	59	 	 	$	(21	)	

			
(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 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 53 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 22 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Residential	 	 	889,967	 	 	 	888,509	 	 	 	895,789	 	 	 	911,623	 	 	 	896,472	 	 	 	37,403	 	
63	 	Business	 	 	109,795	 	 	 	110,658	 	 	 	111,648	 	 	 	112,569	 	 	 	111,168	 	 	 	4,053	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Total	 	 	999,762	 	 	 	999,167	 	 	 	1,007,437	 	 	 	1,024,192	 	 	 	1,007,640	 	 	 	41,456	 	
65	 	Wholesale customers	 	 	81	 	 	 	76	 	 	 	78	 	 	 	77	 	 	 	78	 	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Total customers	 	 	999,843	 	 	 	999,243	 	 	 	1,007,515	 	 	 	1,024,269	 	 	 	1,007,718	 	 	 	41,453	 	

67	 	Customer growth (% over prior year)	 	 	4.0	%	 	 	4.2	%	 	 	4.5	%	 	 	4.5	%	 	 	4.3	%	 	 	0.6	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) — WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	2,438	 	 	 	2,924	 	 	 	4,427	 	 	 	2,520	 	 	 	12,309	 	 	 	573	 	
69	 	Business	 	 	3,062	 	 	 	3,705	 	 	 	4,106	 	 	 	3,412	 	 	 	14,285	 	 	 	412	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Total	 	 	5,500	 	 	 	6,629	 	 	 	8,533	 	 	 	5,932	 	 	 	26,594	 	 	 	985	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Residential	 	 	2,660	 	 	 	3,252	 	 	 	4,967	 	 	 	2,763	 	 	 	13,635	 	 	 	217	 	
72	 	Business	 	 	27,706	 	 	 	33,292	 	 	 	36,723	 	 	 	30,444	 	 	 	128,514	 	 	 	(878	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
73	 	Residential	 	 	2,739	 	 	 	3,291	 	 	 	4,942	 	 	 	2,764	 	 	 	13,730	 	 	 	69	 	
74	 	Business	 	 	27,887	 	 	 	33,483	 	 	 	36,777	 	 	 	30,313	 	 	 	128,503	 	 	 	(1,014	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	System peak demand	 	 	3,997	 	 	 	6,458	 	 	 	7,000	 	 	 	5,169	 	 	 	7,000	 	 	 	598	 	

See Glossary of Terms.	 	Page 23 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Nuclear	 	 	2,247	 	 	 	1,619	 	 	 	2,147	 	 	 	1,496	 	 	 	7,509	 	 	 	(674	)	
77	 	Coal	 	 	2,940	 	 	 	3,088	 	 	 	3,574	 	 	 	3,458	 	 	 	13,060	 	 	 	394	 	
78	 	Gas, oil and other	 	 	1,128	 	 	 	2,129	 	 	 	3,064	 	 	 	2,114	 	 	 	8,435	 	 	 	3,107	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Total generation production	 	 	6,315	 	 	 	6,836	 	 	 	8,785	 	 	 	7,068	 	 	 	29,004	 	 	 	2,827	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Firm load	 	 	586	 	 	 	880	 	 	 	1,589	 	 	 	402	 	 	 	3,474	 	 	 	(851	)	
81	 	Marketing and trading	 	 	5,832	 	 	 	5,984	 	 	 	7,795	 	 	 	6,102	 	 	 	25,713	 	 	 	(4,479	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total purchased power	 	 	6,418	 	 	 	6,864	 	 	 	9,384	 	 	 	6,504	 	 	 	29,187	 	 	 	(5,330	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total energy sources	 	 	12,733	 	 	 	13,700	 	 	 	18,169	 	 	 	13,572	 	 	 	58,191	 	 	 	(2,503	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Nuclear	 	 	94	%	 	 	67	%	 	 	88	%	 	 	61	%	 	 	77	%	 	 	(7	)%	
85	 	Coal	 	 	80	%	 	 	83	%	 	 	95	%	 	 	92	%	 	 	87	%	 	 	3	%	
86	 	Gas, oil and other	 	 	17	%	 	 	29	%	 	 	39	%	 	 	27	%	 	 	28	%	 	 	9	%	
87	 	System average	 	 	49	%	 	 	51	%	 	 	62	%	 	 	50	%	 	 	53	%	 	 	2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
88	 	Nuclear	 	 	52	 	 	 	329	 	 	 	107	 	 	 	419	 	 	 	114	 	 	 	(45	)	
89	 	Coal	 	 	195	 	 	 	244	 	 	 	47	 	 	 	103	 	 	 	73	 	 	 	(55	)	
90	 	Gas	 	 	212	 	 	 	164	 	 	 	140	 	 	 	226	 	 	 	93	 	 	 	45	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Total	 	 	459	 	 	 	737	 	 	 	294	 	 	 	748	 	 	 	280	 	 	 	(54	)	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 24 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Palo Verde	 	$	49.74	 	 	$	53.33	 	 	$	78.94	 	 	$	83.58	 	 	$	66.40	 	 	$	17.10	 	
93	 	SP15	 	$	55.70	 	 	$	55.19	 	 	$	83.21	 	 	$	97.65	 	 	$	72.94	 	 	$	17.74	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Palo Verde	 	$	37.04	 	 	$	33.03	 	 	$	52.35	 	 	$	67.79	 	 	$	47.55	 	 	$	12.81	 	
95	 	SP15	 	$	40.96	 	 	$	34.73	 	 	$	56.08	 	 	$	76.45	 	 	$	52.06	 	 	$	13.44	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Cooling degree-days	 	 	34	 	 	 	1,538	 	 	 	2,583	 	 	 	508	 	 	 	4,663	 	 	 	(31	)	
97	 	Heating degree-days	 	 	457	 	 	 	1	 	 	 	—	 	 	 	308	 	 	 	766	 	 	 	(219	)	
98	 	Average humidity	 	 	56	%	 	 	20	%	 	 	29	%	 	 	30	%	 	 	34	%	 	 	2	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
100	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
101	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
102	 	Single-family	 	 	10,356	 	 	 	12,013	 	 	 	11,577	 	 	 	9,312	 	 	 	43,258	 	 	 	(4,859	)	
103	 	Multi-family	 	 	1,741	 	 	 	1,645	 	 	 	2,360	 	 	 	2,032	 	 	 	7,778	 	 	 	192	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Total	 	 	12,097	 	 	 	13,658	 	 	 	13,937	 	 	 	11,344	 	 	 	51,036	 	 	 	(4,667	)	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Payroll job growth (% over prior year)	 	 	4.8	%	 	 	5.5	%	 	 	6.0	%	 	 	5.2	%	 	 	5.4	%	 	 	1.7	%	
106	 	Unemployment rate (%, seasonally adjusted)	 	 	4.6	%	 	 	4.7	%	 	 	4.7	%	 	 	4.6	%	 	 	4.6	%	 	 	(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 25 of 31	

 

Exhibit 99.6
Last Updated 1/30/2008
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	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(8	)	 	 	(12	)	 	 	(13	)	
9	 	SunCor	 	 	—	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	4	 	 	 	(6	)	
10	 	Other	 	 	—	 	 	 	1	 	 	 	—	 	 	 	3	 	 	 	4	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	—	 	 	 	(1	)	 	 	1	 	 	 	(4	)	 	 	(4	)	 	 	(20	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	31	 	 	$	73	 	 	$	105	 	 	$	34	 	 	$	243	 	 	$	2	 	

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

19	 	Income From Continuing Operations	 	 	0.33	 	 	 	0.81	 	 	 	1.14	 	 	 	0.41	 	 	 	2.69	 	 	 	0.22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	(0.03	)	 	 	—	 	 	 	(0.09	)	 	 	(0.12	)	 	 	(0.12	)	
21	 	SunCor	 	 	0.01	 	 	 	—	 	 	 	0.01	 	 	 	0.02	 	 	 	0.04	 	 	 	(0.07	)	
22	 	Other	 	 	—	 	 	 	0.01	 	 	 	—	 	 	 	0.03	 	 	 	0.05	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	0.01	 	 	 	(0.02	)	 	 	0.01	 	 	 	(0.04	)	 	 	(0.03	)	 	 	(0.19	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.34	 	 	$	0.79	 	 	$	1.15	 	 	$	0.37	 	 	$	2.66	 	 	$	0.03	 	

25	 	BOOK VALUE PER SHARE	 	$	31.19	 	 	$	31.68	 	 	$	32.55	 	 	$	32.14	 	 	$	32.14	 	 	$	1.17	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	91,376	 	 	 	91,400	 	 	 	91,491	 	 	 	91,779	 	 	 	91,532	 	 	 	127	 	
27	 	End of Period	 	 	91,310	 	 	 	91,309	 	 	 	91,443	 	 	 	91,793	 	 	 	91,793	 	 	 	505	 	

See Glossary of Terms.	 	Page 26 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	189	 	 	$	245	 	 	$	360	 	 	$	190	 	 	$	984	 	 	$	27	 	
29	 	Business	 	 	211	 	 	 	257	 	 	 	289	 	 	 	221	 	 	 	978	 	 	 	25	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	400	 	 	 	502	 	 	 	649	 	 	 	411	 	 	 	1,962	 	 	 	52	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	6	 	 	 	3	 	 	 	16	 	 	 	1	 	
32	 	Off-system sales	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
33	 	Transmission for others	 	 	8	 	 	 	8	 	 	 	8	 	 	 	8	 	 	 	32	 	 	 	4	 	
34	 	Other miscellaneous services	 	 	4	 	 	 	6	 	 	 	8	 	 	 	7	 	 	 	25	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	415	 	 	 	520	 	 	 	671	 	 	 	429	 	 	 	2,035	 	 	 	57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	89	 	 	 	110	 	 	 	91	 	 	 	111	 	 	 	401	 	 	 	9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	504	 	 	$	630	 	 	$	762	 	 	$	540	 	 	$	2,436	 	 	$	66	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,410	 	 	 	2,722	 	 	 	4,028	 	 	 	2,367	 	 	 	11,527	 	 	 	380	 	
39	 	Business	 	 	3,051	 	 	 	3,602	 	 	 	3,937	 	 	 	3,236	 	 	 	13,826	 	 	 	411	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	5,461	 	 	 	6,324	 	 	 	7,965	 	 	 	5,603	 	 	 	25,353	 	 	 	791	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	138	 	 	 	195	 	 	 	210	 	 	 	166	 	 	 	709	 	 	 	209	 	
42	 	Off-system sales	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
43	 	Retail load hedge management	 	 	169	 	 	 	731	 	 	 	943	 	 	 	889	 	 	 	2,732	 	 	 	1,638	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	5,768	 	 	 	7,250	 	 	 	9,118	 	 	 	6,658	 	 	 	28,794	 	 	 	2,638	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	5,696	 	 	 	7,141	 	 	 	8,994	 	 	 	8,347	 	 	 	30,178	 	 	 	1,375	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	11,464	 	 	 	14,391	 	 	 	18,112	 	 	 	15,005	 	 	 	58,972	 	 	 	4,013	 	

 	 	 	
See Glossary of Terms.	 	Page 27 of 31	

 

Last Updated 1/30/2008
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)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
51	 	Amounts recovered through revenues	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	12	 	 	$	21	 	 	$	16	 	 	$	15	 	 	$	64	 	 	$	(1	)	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	1	 	 	 	(4	)	 	 	(3	)	 	 	(1	)	 	 	(5	)	 	 	6	 	
55	 	Change in mark-to-market value of forward sales	 	 	8	 	 	 	4	 	 	 	8	 	 	 	3	 	 	 	21	 	 	 	28	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	21	 	 	$	17	 	 	$	80	 	 	$	33	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	(5	)	 	$	—	 	 	$	2	 	 	$	(2	)	 	$	(5	)	 	$	(13	)	
58	 	Pinnacle West	 	 	12	 	 	 	6	 	 	 	5	 	 	 	1	 	 	 	25	 	 	 	30	 	
59	 	APS Energy Services	 	 	4	 	 	 	4	 	 	 	4	 	 	 	2	 	 	 	14	 	 	 	(22	)	
60	 	Pinnacle West Energy	 	 	10	 	 	 	11	 	 	 	10	 	 	 	16	 	 	 	46	 	 	 	38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	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 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 53 are included in line 54. For example, line 54 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 53 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 28 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Residential	 	 	855,754	 	 	 	852,594	 	 	 	856,353	 	 	 	871,575	 	 	 	859,069	 	 	 	30,703	 	
63	 	Business	 	 	105,502	 	 	 	106,517	 	 	 	107,583	 	 	 	108,860	 	 	 	107,115	 	 	 	4,019	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Total	 	 	961,256	 	 	 	959,111	 	 	 	963,936	 	 	 	980,435	 	 	 	966,184	 	 	 	34,722	 	
65	 	Wholesale customers	 	 	81	 	 	 	82	 	 	 	85	 	 	 	77	 	 	 	81	 	 	 	15	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
66	 	Total customers	 	 	961,337	 	 	 	959,193	 	 	 	964,021	 	 	 	980,512	 	 	 	966,265	 	 	 	34,737	 	

67	 	Customer growth (% over prior year)	 	 	3.4	%	 	 	3.8	%	 	 	3.9	%	 	 	3.9	%	 	 	3.7	%	 	 	0.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
68	 	Residential	 	 	2,365	 	 	 	2,818	 	 	 	4,215	 	 	 	2,338	 	 	 	11,736	 	 	 	804	 	
69	 	Business	 	 	2,990	 	 	 	3,623	 	 	 	4,033	 	 	 	3,226	 	 	 	13,873	 	 	 	470	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Total	 	 	5,355	 	 	 	6,441	 	 	 	8,248	 	 	 	5,564	 	 	 	25,609	 	 	 	1,274	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Residential	 	 	2,816	 	 	 	3,193	 	 	 	4,704	 	 	 	2,717	 	 	 	13,418	 	 	 	(39	)	
72	 	Business	 	 	28,919	 	 	 	33,816	 	 	 	36,595	 	 	 	29,726	 	 	 	129,392	 	 	 	(1,137	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
73	 	Residential	 	 	2,764	 	 	 	3,305	 	 	 	4,922	 	 	 	2,682	 	 	 	13,661	 	 	 	464	 	
74	 	Business	 	 	28,345	 	 	 	34,018	 	 	 	37,489	 	 	 	29,636	 	 	 	129,517	 	 	 	(485	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
75	 	System peak demand	 	 	3,979	 	 	 	5,632	 	 	 	6,402	 	 	 	4,432	 	 	 	6,402	 	 	 	70	 	

See Glossary of Terms.	 	Page 29 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Nuclear	 	 	2,148	 	 	 	1,860	 	 	 	2,364	 	 	 	1,811	 	 	 	8,183	 	 	 	(132	)	
77	 	Coal	 	 	2,887	 	 	 	3,035	 	 	 	3,417	 	 	 	3,327	 	 	 	12,666	 	 	 	1,299	 	
78	 	Gas, oil and other	 	 	367	 	 	 	1,339	 	 	 	2,547	 	 	 	1,075	 	 	 	5,328	 	 	 	(763	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
79	 	Total generation production	 	 	5,402	 	 	 	6,234	 	 	 	8,328	 	 	 	6,213	 	 	 	26,177	 	 	 	404	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Firm load	 	 	701	 	 	 	1,532	 	 	 	1,068	 	 	 	1,024	 	 	 	4,325	 	 	 	1,214	 	
81	 	Marketing and trading	 	 	5,506	 	 	 	7,167	 	 	 	9,301	 	 	 	8,218	 	 	 	30,192	 	 	 	2,442	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total purchased power	 	 	6,207	 	 	 	8,699	 	 	 	10,369	 	 	 	9,242	 	 	 	34,517	 	 	 	3,656	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total energy sources	 	 	11,609	 	 	 	14,933	 	 	 	18,697	 	 	 	15,455	 	 	 	60,694	 	 	 	4,060	 	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Nuclear	 	 	88	%	 	 	76	%	 	 	96	%	 	 	74	%	 	 	84	%	 	 	(3	)%	
85	 	Coal	 	 	77	%	 	 	81	%	 	 	90	%	 	 	88	%	 	 	84	%	 	 	8	%	
86	 	Gas, oil and other	 	 	5	%	 	 	20	%	 	 	38	%	 	 	17	%	 	 	19	%	 	 	(8	)%	
87	 	System average	 	 	44	%	 	 	49	%	 	 	64	%	 	 	48	%	 	 	51	%	 	 	(3	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out
of Service and
Replaced for Native
Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
88	 	Nuclear	 	 	132	 	 	 	231	 	 	 	13	 	 	 	261	 	 	 	159	 	 	 	28	 	
89	 	Coal	 	 	237	 	 	 	153	 	 	 	63	 	 	 	61	 	 	 	128	 	 	 	(140	)	
90	 	Gas	 	 	71	 	 	 	46	 	 	 	39	 	 	 	34	 	 	 	48	 	 	 	(160	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	Total	 	 	440	 	 	 	430	 	 	 	115	 	 	 	356	 	 	 	334	 	 	 	(272	)	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 30 of 31	

 

Last Updated 1/30/2008
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Palo Verde	 	$	43.73	 	 	$	50.36	 	 	$	51.86	 	 	$	51.23	 	 	$	49.30	 	 	$	0.70	 	
93	 	SP15	 	$	48.37	 	 	$	54.73	 	 	$	57.09	 	 	$	60.62	 	 	$	55.20	 	 	$	3.82	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
94	 	Palo Verde	 	$	33.66	 	 	$	33.74	 	 	$	33.37	 	 	$	38.21	 	 	$	34.75	 	 	$	2.72	 	
95	 	SP15	 	$	36.90	 	 	$	37.32	 	 	$	37.18	 	 	$	43.07	 	 	$	38.62	 	 	$	3.96	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Cooling degree-days	 	 	273	 	 	 	1,598	 	 	 	2,471	 	 	 	352	 	 	 	4,694	 	 	 	(205	)	
97	 	Heating degree-days	 	 	552	 	 	 	11	 	 	 	—	 	 	 	422	 	 	 	985	 	 	 	249	 	
98	 	Average humidity	 	 	39	%	 	 	19	%	 	 	26	%	 	 	45	%	 	 	32	%	 	 	1	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
100	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
101	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
102	 	Single-family	 	 	10,045	 	 	 	13,636	 	 	 	14,111	 	 	 	10,325	 	 	 	48,117	 	 	 	8,466	 	
103	 	Multi-family	 	 	1,757	 	 	 	1,324	 	 	 	2,149	 	 	 	2,356	 	 	 	7,586	 	 	 	859	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Total	 	 	11,802	 	 	 	14,960	 	 	 	16,260	 	 	 	12,681	 	 	 	55,703	 	 	 	9,325	 	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Payroll job growth (% over prior year)	 	 	2.6	%	 	 	3.4	%	 	 	4.0	%	 	 	4.6	%	 	 	3.7	%	 	 	2.3	%	
106	 	Unemployment rate (%, seasonally adjusted)	 	 	5.2	%	 	 	5.0	%	 	 	4.9	%	 	 	4.6	%	 	 	4.9	%	 	 	(0.8	)%	

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 1/30/2008
Pinnacle West Capital Corporation
Earnings Variance Explanations
For the Periods Ended December 31, 2007 and 2006
     This discussion explains the changes in our consolidated earnings for the three-month and twelve-month periods ended December 31, 2007 and 2006. Unaudited Condensed Consolidated Statements of Income for the three months and twelve months ended December 31, 2007 and 2006 follow this discussion. We will file our Annual Report on Form 10-K for the year ended December 31, 2007 on or before February 29, 2008. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation (“Pinnacle West”) Annual Report on Form 10-K for the fiscal year ended December 31, 2006 and the Quarterly Reports on Form 10-Q for the fiscal quarters ended March 31, 2007, June 30, 2007 and September 30, 2007. 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’s two reportable business segments are:

 	•	 	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; and	
 		
 	•	 	our real estate segment, which consists of SunCor’s real estate development and investment activities.	
     The following table summarizes income (loss) from continuing operations for the three months and twelve months ended December 31, 2007 and 2006 and reconciles net income in total (dollars in millions):
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Twelve Months Ended	 	
 	 	December 31,	 	 	December 31,	 	
 	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
Regulated electricity segment	 	$	(3	)	 	$	6	 	 	$	274	 	 	$	259	 	
Real estate segment	 	 	5	 	 	 	4	 	 	 	12	 	 	 	50	 	
All other (a)	 	 	1	 	 	 	—	 	 	 	13	 	 	 	8	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	 	3	 	 	 	10	 	 	 	299	 	 	 	317	 	
Income (loss) from discontinued operations — net of tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment (b)	 	 	3	 	 	 	8	 	 	 	11	 	 	 	10	 	
Other (a)	 	 	(3	)	 	 	—	 	 	 	(3	)	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	3	 	 	$	18	 	 	$	307	 	 	$	327	 	

 	(a)	 	Includes activities related to marketing and trading, APSES and El Dorado. None of these segments is a reportable segment.	
 		
 	(b)	 	Primarily relates to sales of commercial properties.	

 

PINNACLE WEST CONSOLIDATED — RESULTS OF OPERATIONS
Operating Results — Three-month period ended December 31, 2007 compared with three-month period ended December 31, 2006
     Our consolidated net income for the three months ended December 31, 2007 was $3 million compared with $18 million for the comparable prior-year period. The current period includes income from discontinued operations of $3 million related to sales of commercial properties by SunCor and a loss from discontinued operations of $3 million related to an APSES project. The prior period includes income from discontinued operations of $8 million related to sales of commercial properties by SunCor. Income from continuing operations decreased $7 million in the period-to-period comparison and is reflected in the segments as follows:

 	•	 	Regulated Electricity Segment — Income from continuing operations decreased approximately $9 million primarily due to higher operations and maintenance expense related to increased costs for generation (including increased maintenance and overhauls and the Palo Verde performance improvement plan) and customer service and other costs; higher depreciation and amortization primarily due to higher plant balances and rates; and income tax credits resolved in 2006 related to prior years. These negative factors were partially offset by higher retail sales primarily due to customer growth; higher capitalized financing costs primarily due to increased construction work in progress; and lower other taxes primarily due to lower property tax rates. In addition, higher fuel and purchased power costs related to commodity price increases were substantially offset by the deferral of such costs in accordance with the PSA. See “APS General Rate Case and Power Supply Adjustor” in Note 5 of Notes to Condensed Consolidated Financial Statements in the Pinnacle West/APS Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2007 (“Note 5”).	
 		
 	•	 	Real Estate Segment — Income from continuing operations increased approximately $1 million primarily due to sales of certain joint venture assets partially offset by lower sales of residential property resulting from the continued slowdown in the western United States real estate markets. Income from discontinued operations decreased $5 million due to decreased commercial property sales.	
 2 

 

     Additional details on the major factors that increased (decreased) net income for the three-month period ended December 31, 2007 compared with the prior-year period are contained in the following table (dollars in millions):
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment:	 	 	 	 	 	 	 	 	
Higher retail sales primarily due to customer growth, excluding weather effects	 	$	9	 	 	$	5	 	
Impacts of retail rate increase effective July 1, 2007:	 	 	 	 	 	 	 	 	
Revenue increase related to higher Base Fuel Rate	 	 	71	 	 	 	43	 	
Decreased deferred fuel and purchased power costs related to higher Base Fuel Rate	 	 	(68	)	 	 	(41	)	
Net changes in fuel and purchased power costs related to prices:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs related to increased commodity prices	 	 	(41	)	 	 	(25	)	
Increased deferred fuel and purchased power costs related to increased prices	 	 	40	 	 	 	24	 	
Mark-to-market fuel and purchased power costs, net of related deferred fuel and purchased power costs	 	 	5	 	 	 	3	 	
Operations and maintenance increases primarily due to:	 	 	 	 	 	 	 	 	
Increased generation costs, including increased maintenance and overhauls and Palo Verde performance improvement plan	 	 	(16	)	 	 	(10	)	
Customer service and other costs	 	 	(14	)	 	 	(9	)	
Higher depreciation and amortization primarily due to higher plant balances and rates	 	 	(4	)	 	 	(2	)	
Higher capitalized financing costs primarily due to increased construction work in progress	 	 	5	 	 	 	3	 	
Lower other taxes primarily due to lower property tax rates	 	 	5	 	 	 	3	 	
Income tax credits resolved in 2006 related to prior years	 	 	—	 	 	 	(4	)	
Miscellaneous items, net	 	 	5	 	 	 	1	 	
 	 	 	 	 	 	 	
Decrease in regulated electricity segment net income	 	 	(3	)	 	 	(9	)	
Higher real estate segment income from continuing operations primarily due to:	 	 	 	 	 	 	 	 	
Higher sales of certain joint venture assets	 	 	8	 	 	 	5	 	
Lower sales of residential property resulting from the continued slowdown in the western United States real estate markets	 	 	(12	)	 	 	(7	)	
Lower other costs	 	 	6	 	 	 	3	 	
Other miscellaneous items, net	 	 	3	 	 	 	1	 	
 	 	 	 	 	 	 	
Increase (decrease) in income from continuing operations	 	$	2	 	 	 	(7	)	
 	 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	
Lower commercial property real estate sales	 	 	 	 	 	 	(5	)	
Other discontinued operations	 	 	 	 	 	 	(3	)	
 	 	 	 	 	 	 	 	
Decrease in net income	 	 	 	 	 	$	(15	)	
 	 	 	 	 	 	 	 	
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $58 million higher for the three months ended December 31, 2007 compared with the prior-year period primarily because of:
 3 

 

 	•	 	a $71 million increase in retail revenues due to a rate increase effective July 1, 2007;	
 		
 	•	 	a $5 million increase in retail revenues due to the effects of weather;	
 		
 	•	 	a $12 million increase in retail revenues primarily related to customer growth, excluding weather effects;	
 		
 	•	 	a $38 million decrease in retail 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 Note 5); and	
 		
 	•	 	an $8 million net increase due to miscellaneous factors.	
Real Estate Segment Revenues
     Real estate segment revenues were $39 million lower for the three months ended December 31, 2007 compared with the prior-year period primarily because of:

 	•	 	a $43 million decrease in residential property sales due to the continued slowdown in the western United States real estate markets; and	
 		
 	•	 	a $4 million net increase due to miscellaneous factors.	
All Other Revenues
     Marketing and trading revenues were $7 million higher for the three months ended December 31, 2007 compared with the prior-year period primarily due to higher mark-to-market gains because of changes in forward prices.
     Other revenues were $4 million higher for the three months ended December 31, 2007 compared to the prior-year period primarily as a result of increased sales by APSES of energy-related products and services.
Operating Results — 2007 compared with 2006
     Our consolidated net income for 2007 was $307 million compared with $327 million for 2006. The current period includes income from discontinued operations of $11 million related to sales of commercial properties by SunCor and a loss from discontinued operations of $3 million related to an APSES project. The prior year includes income from discontinued operations of $10 million related to sales of commercial properties by SunCor. Income from continuing operations decreased $18 million in the year-to-year comparison and is reflected in the segments as follows:

 	•	 	Regulated Electricity Segment — Income from continuing operations increased approximately $15 million primarily due to higher retail sales related to customer growth; the effects of weather on retail sales; and impacts of the retail rate increase. These positive factors were partially offset by higher operations and maintenance expense primarily due to increased	
 4 

 

 	 	 	generation costs (including increased maintenance and overhauls and the Palo Verde performance improvement plan), customer service and other costs; higher depreciation and amortization primarily due to increased plant balances; lower other income, net of expense, primarily due to miscellaneous asset sales in the prior year and lower interest income as a result of lower investment balances; and a regulatory disallowance. In addition, higher fuel and purchased power costs related to commodity price increases were substantially offset by deferral of such costs in accordance with the PSA. See Note 5 for further discussion of the regulatory disallowance and the PSA.	
 		
 	•	 	Real Estate Segment — Income from continuing operations decreased approximately $38 million primarily due to lower sales of residential property and land parcels resulting from the continued slowdown in the western United States real estate markets.	
 5 

 

     Additional details on the major factors that increased (decreased) net income for the year ended December 31, 2007 compared with the prior year are contained in the following table (dollars in millions):
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment:	 	 	 	 	 	 	 	 	
Higher retail sales primarily due to customer growth, excluding weather effects	 	$	46	 	 	$	28	 	
Effects of weather on retail sales	 	 	37	 	 	 	23	 	
Impacts of retail rate increase effective July 1, 2007:	 	 	 	 	 	 	 	 	
Revenue increase related to higher Base Fuel Rate	 	 	185	 	 	 	113	 	
Decreased deferred fuel and purchased power costs related to higher Base Fuel Rate	 	 	(171	)	 	 	(104	)	
Non-fuel rate increase	 	 	6	 	 	 	4	 	
Net changes in fuel and purchased power costs related to price:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs related to increased commodity prices	 	 	(121	)	 	 	(74	)	
Increased deferred fuel and purchased power costs related to increased prices	 	 	115	 	 	 	70	 	
Mark-to-market fuel and purchased power costs, net of related deferred fuel and purchased power costs	 	 	18	 	 	 	11	 	
Regulatory disallowance (see Note 5)	 	 	(14	)	 	 	(8	)	
Operations and maintenance increases primarily due to:	 	 	 	 	 	 	 	 	
Increased generation costs, including increased maintenance and overhauls and Palo Verde performance improvement plan	 	 	(25	)	 	 	(15	)	
Customer service and other costs	 	 	(21	)	 	 	(13	)	
Higher depreciation and amortization primarily due to increased plant balances	 	 	(12	)	 	 	(7	)	
Lower other income, net of expense, primarily due to lower interest income as a result of lower investment balances and miscellaneous asset sales in the prior year	 	 	(15	)	 	 	(9	)	
Income tax benefits resolved in 2007 related to prior years	 	 	—	 	 	 	13	 	
Income tax credits resolved in 2006 related to prior years	 	 	—	 	 	 	(14	)	
Miscellaneous items, net	 	 	6	 	 	 	(3	)	
 	 	 	 	 	 	 	
Increase in regulated electricity segment net income	 	 	34	 	 	 	15	 	
Lower real estate segment income from continuing operations primarily due to:	 	 	 	 	 	 	 	 	
Lower sales of residential property resulting from the continued slowdown in the western United States real estate markets	 	 	(47	)	 	 	(29	)	
Lower sales of land parcels	 	 	(12	)	 	 	(7	)	
Higher other costs	 	 	(5	)	 	 	(2	)	
Higher marketing and trading contribution primarily due to higher mark-to-market gains resulting from changes in forward prices and higher unit margins	 	 	8	 	 	 	5	 	
Other miscellaneous items, net	 	 	(2	)	 	 	—	 	
 	 	 	 	 	 	 	
Decrease in income from continuing operations	 	$	(24	)	 	 	(18	)	
 	 	 	 	 	 	 	
Discontinued operations:	 	 	 	 	 	 	 	 	
Increased commercial property real estate sales	 	 	 	 	 	 	1	 	
Other discontinued operations	 	 	 	 	 	 	(3	)	
 	 	 	 	 	 	 	 	
Decrease in net income	 	 	 	 	 	$	(20	)	
 	 	 	 	 	 	 	 	
 6 

 

Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $283 million higher for the year ended December 31, 2007 compared with the prior year primarily because of:

 	•	 	a $191 million increase in retail revenues due to a rate increase effective July 1, 2007;	
 		
 	•	 	a $60 million increase in retail revenues primarily related to customer growth, excluding weather effects;	
 		
 	•	 	a $50 million increase in retail revenues due to the effects of weather;	
 		
 	•	 	a $3 million increase in revenues from Off-System Sales due to higher prices and volumes;	
 		
 	•	 	a $35 million decrease in retail 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 Note 5); and	
 		
 	•	 	a $14 million net increase due to miscellaneous factors.	
Real Estate Segment Revenues
     Real estate segment revenues were $185 million lower for the year ended December 31, 2007 compared with the prior year primarily because of:

 	•	 	a $167 million decrease in residential property sales due to the continued slowdown in western United States real estate markets; and	
 		
 	•	 	an $18 million decrease primarily due to lower sales of land parcels.	
All Other Revenues
     Marketing and trading revenues were $12 million higher for the year ended December 31, 2007 compared with the prior year primarily because of higher mark-to-market gains resulting from changes in forward prices and higher competitive retail sales volumes in California.
     Other revenues were $12 million higher for the year ended December 31, 2007 compared to the prior year primarily as a result of increased sales by APSES of energy-related products and services.
 7 

 
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	 	 	
 	 	DECEMBER 31,	 	 	Increase (Decrease)	 	
 	 	2007	 	 	2006	 	 	Amount	 	 	Percent	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	627,096	 	 	$	569,213	 	 	$	57,883	 	 	 	10.2% B	 	
Real estate segment	 	 	42,055	 	 	 	81,470	 	 	 	(39,415	)	 	 	48.4% W	 	
Marketing and trading	 	 	78,060	 	 	 	71,390	 	 	 	6,670	 	 	 	9.3% B	 	
Other revenues	 	 	11,905	 	 	 	7,999	 	 	 	3,906	 	 	 	48.8% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	759,116	 	 	 	730,072	 	 	 	29,044	 	 	 	4.0% B	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	259,991	 	 	 	225,160	 	 	 	34,831	 	 	 	15.5% W	 	
Real estate segment operations	 	 	39,918	 	 	 	76,266	 	 	 	(36,348	)	 	 	47.7% B	 	
Marketing and trading fuel and purchased power	 	 	67,899	 	 	 	62,840	 	 	 	5,059	 	 	 	8.1% W	 	
Operations and maintenance	 	 	207,398	 	 	 	180,122	 	 	 	27,276	 	 	 	15.1% W	 	
Depreciation and amortization	 	 	95,921	 	 	 	91,336	 	 	 	4,585	 	 	 	5.0% W	 	
Taxes other than income taxes	 	 	23,802	 	 	 	28,425	 	 	 	(4,623	)	 	 	16.3% B	 	
Other expenses	 	 	10,388	 	 	 	5,853	 	 	 	4,535	 	 	 	77.5% W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	705,317	 	 	 	670,002	 	 	 	35,315	 	 	 	5.3% W	 	

Operating Income	 	 	53,799	 	 	 	60,070	 	 	 	(6,271	)	 	 	10.4% W	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	6,321	 	 	 	3,700	 	 	 	2,621	 	 	 	70.8% B	 	
Other income	 	 	12,718	 	 	 	9,568	 	 	 	3,150	 	 	 	32.9% B	 	
Other expense	 	 	(12,198	)	 	 	(14,847	)	 	 	2,649	 	 	 	17.8% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	6,841	 	 	 	(1,579	)	 	 	8,420	 	 	 	533.2% B	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	54,268	 	 	 	52,841	 	 	 	1,427	 	 	 	2.7% W	 	
Capitalized interest	 	 	(7,608	)	 	 	(6,394	)	 	 	(1,214	)	 	 	19.0% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	46,660	 	 	 	46,447	 	 	 	213	 	 	 	0.5% W	 	

Income From Continuing Operations Before Income Taxes	 	 	13,980	 	 	 	12,044	 	 	 	1,936	 	 	 	16.1% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	10,492	 	 	 	1,518	 	 	 	8,974	 	 	 	591.2% W	 	

Income From Continuing Operations	 	 	3,488	 	 	 	10,526	 	 	 	(7,038	)	 	 	66.9% W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	(577	)	 	 	7,953	 	 	 	(8,530	)	 	 	107.3% W	 	

Net Income	 	$	2,911	 	 	$	18,479	 	 	$	(15,568	)	 	 	84.2% W	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	100,420	 	 	 	99,832	 	 	 	588	 	 	 	0.6%     	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,963	 	 	 	100,474	 	 	 	489	 	 	 	0.5%     	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	0.03	 	 	$	0.11	 	 	$	(0.08	)	 	 	72.7% W	 	
Net income — basic	 	$	0.03	 	 	$	0.19	 	 	$	(0.16	)	 	 	84.2% W	 	
Income from continuing operations — diluted	 	$	0.03	 	 	$	0.10	 	 	$	(0.07	)	 	 	70.0% W	 	
Net income — diluted	 	$	0.03	 	 	$	0.18	 	 	$	(0.15	)	 	 	83.3% W	 	
B — Better
W — Worse

 

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	TWELVE MONTHS ENDED	 	 	 	 	
 	 	DECEMBER 31,	 	 	Increase (Decrease)	 	
 	 	2007	 	 	2006	 	 	Amount	 	 	Percent	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	2,918,163	 	 	$	2,635,036	 	 	$	283,127	 	 	 	10.7% B	 	
Real estate segment	 	 	215,068	 	 	 	399,798	 	 	 	(184,730	)	 	 	46.2% W	 	
Marketing and trading	 	 	342,371	 	 	 	330,742	 	 	 	11,629	 	 	 	3.5% B	 	
Other revenues	 	 	48,018	 	 	 	36,172	 	 	 	11,846	 	 	 	32.7% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	3,523,620	 	 	 	3,401,748	 	 	 	121,872	 	 	 	3.6% B	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	1,140,923	 	 	 	960,649	 	 	 	180,274	 	 	 	18.8% W	 	
Real estate segment operations	 	 	193,926	 	 	 	324,861	 	 	 	(130,935	)	 	 	40.3% B	 	
Marketing and trading fuel and purchased power	 	 	294,236	 	 	 	290,637	 	 	 	3,599	 	 	 	1.2% W	 	
Operations and maintenance	 	 	734,705	 	 	 	691,277	 	 	 	43,428	 	 	 	6.3% W	 	
Depreciation and amortization	 	 	373,436	 	 	 	358,644	 	 	 	14,792	 	 	 	4.1% W	 	
Taxes other than income taxes	 	 	128,218	 	 	 	128,395	 	 	 	(177	)	 	 	0.1% B	 	
Other expenses	 	 	38,925	 	 	 	28,415	 	 	 	10,510	 	 	 	37.0% W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	2,904,369	 	 	 	2,782,878	 	 	 	121,491	 	 	 	4.4% W	 	

Operating Income	 	 	619,251	 	 	 	618,870	 	 	 	381	 	 	 	0.1% B	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	21,195	 	 	 	14,312	 	 	 	6,883	 	 	 	48.1% B	 	
Other income	 	 	24,694	 	 	 	44,016	 	 	 	(19,322	)	 	 	43.9% W	 	
Other expense	 	 	(25,883	)	 	 	(27,800	)	 	 	1,917	 	 	 	6.9% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	20,006	 	 	 	30,528	 	 	 	(10,522	)	 	 	34.5% W	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	212,620	 	 	 	196,826	 	 	 	15,794	 	 	 	8.0% W	 	
Capitalized interest	 	 	(23,063	)	 	 	(20,989	)	 	 	(2,074	)	 	 	9.9% B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	189,557	 	 	 	175,837	 	 	 	13,720	 	 	 	7.8% W	 	

Income From Continuing Operations Before Income Taxes	 	 	449,700	 	 	 	473,561	 	 	 	(23,861	)	 	 	5.0% W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	150,920	 	 	 	156,418	 	 	 	(5,498	)	 	 	3.5% B	 	

Income From Continuing Operations	 	 	298,780	 	 	 	317,143	 	 	 	(18,363	)	 	 	5.8% W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	8,363	 	 	 	10,112	 	 	 	(1,749	)	 	 	17.3% W	 	

Net Income	 	$	307,143	 	 	$	327,255	 	 	$	(20,112	)	 	 	6.1% W	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	100,256	 	 	 	99,417	 	 	 	839	 	 	 	0.8%     	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,835	 	 	 	100,010	 	 	 	825	 	 	 	0.8%     	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	2.98	 	 	$	3.19	 	 	$	(0.21	)	 	 	6.6% W	 	
Net income — basic	 	$	3.06	 	 	$	3.29	 	 	$	(0.23	)	 	 	7.0% W	 	
Income from continuing operations — diluted	 	$	2.96	 	 	$	3.17	 	 	$	(0.21	)	 	 	6.6% W	 	
Net income — diluted	 	$	3.05	 	 	$	3.27	 	 	$	(0.22	)	 	 	6.7% W	 	
B — Better
W — Worse

 
Exhibit 99.8
Last Updated 1/30/08
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
and Earnings Variance Explanations
Glossary of Terms
 	 	 	
Amounts Recovered Through Revenues	 	Amounts recovered from retail customers through the power supply adjustor in the current period.	
 	 	 	
APS	 	Arizona Public Service Company, a subsidiary of Pinnacle West.	
 	 	 	
APSES	 	APS Energy Services Company, Inc., a subsidiary of Pinnacle West.	
 	 	 	
Arizona Job Growth	 	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.	
 	 	 	
Base Fuel Rate	 	The portion of APS’ retail base rates attributable to fuel and purchased power costs.	
 	 	 	
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.	
 	 	 	
Company	 	Pinnacle West Capital Corporation.	
 	 	 	
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 $0.0325 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 $0.0325 per kWh).	

 

 -2- 

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.	
 	 	 	
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.	
 	 	 	
El Dorado	 	El Dorado Investment Company, a subsidiary of Pinnacle West.	
 	 	 	
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.	

 

 -3- 

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.	
 	 	 	
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.	

 

 -4- 

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.	
 	 	 	
Palo Verde	 	Palo Verde Nuclear Generating Station.	
 	 	 	
Pinnacle West	 	Pinnacle West Capital Corporation (the Company).	
 	 	 	
Pinnacle West Energy (PWEC)	 	Pinnacle West Energy Corporation, a subsidiary of the Company, dissolved as of August 31, 2006.	
 	 	 	
Pinnacle West Marketing & Trading	 	Pinnacle West Marketing & Trading Co., LLC, a subsidiary of Pinnacle West.	
 	 	 	
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 $0.0325 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.	

 

 -5- 

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.	
 	 	 	
SunCor	 	SunCor Development Company, a subsidiary of Pinnacle West.	
 	 	 	
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.	
 	 	 	
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	 	January 30, 2008	
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 FOURTH QUARTER EARNINGS
APS Quarterly Results Down 98 Percent
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended December 31, 2007, of $2.9 million, or $0.03 per diluted share of common stock. This result compares with net income of $18.5 million, or $0.18 per diluted share, for the same quarter a year ago.
The quarterly results were impacted by lower results from the Company’s utility and real estate operations. Arizona Public Service (APS), the Company’s principal subsidiary, reported net income of $0.3 million, compared with earnings of $12.9 million for the same period a year ago. In addition, real estate subsidiary SunCor Development Co. reported lower net income of $8.1 million, compared with $11.4 million in the final quarter of 2006, reflecting a continued slowdown in the western U.S. real estate markets.
The 2007 fourth-quarter earnings were negatively impacted by increased operation and maintenance costs primarily related to power plant maintenance and planned overhauls, as well as higher customer service, depreciation and other growth-related costs. These factors more than offset increased retail sales at APS primarily due to customer growth of 2.6 percent.
“Arizona’s growth and the increasing demand for energy require additional capital investment,” said Chairman Bill Post. “Meeting this growth — and finding a way to effectively pay for and recover the associated costs — will require a transparent, collaborative and forward-looking process with all our stakeholders. We are committed to working with our customers, communities and regulators to find solutions to these challenges.”
Post added that in 2007 the Company’s employees continued meeting the challenges of growth in Arizona. The Company recorded all-time best results in measures such as customer outage frequency and average outage duration, all while setting 35,000 new meters and managing one of the hottest summers on record. APS’ top-tier customer service also was recognized in 2007 survey results from J.D. Power and Associates. APS was rated number two among investor-owned electric utilities in the West for superior customer satisfaction by both residential and business customers.

 

			
PINNACLE WEST FOURTH QUARTER EARNINGS	 	January 30, 2008	
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For the year 2007 as a whole, Pinnacle West’s consolidated net income decreased 6 percent to $307.1 million, or $3.05 per share, compared with 2006 net income of $327.3 million, or $3.27 per diluted share. APS reported earnings of $283.9 million during the same period compared with $269.7 million in 2006. And, SunCor reported net income of $23.7 million, down from $60.5 million for the same period a year ago.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials .
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2007 fourth-quarter earnings and year-end results, as well as recent developments at 11 a.m. (ET) today, January 30. 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 conference ID number 28391511. A replay of the call also will be available until 11:55 p.m. (ET), Thursday, February 7, 2008, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering 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.
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PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	TWELVE MONTHS ENDED	 	
 	 	DECEMBER 31,	 	 	DECEMBER 31,	 	
 	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	627,096	 	 	$	569,213	 	 	$	2,918,163	 	 	$	2,635,036	 	
Real estate segment	 	 	42,055	 	 	 	81,470	 	 	 	215,068	 	 	 	399,798	 	
Marketing and trading	 	 	78,060	 	 	 	71,390	 	 	 	342,371	 	 	 	330,742	 	
Other revenues	 	 	11,905	 	 	 	7,999	 	 	 	48,018	 	 	 	36,172	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	759,116	 	 	 	730,072	 	 	 	3,523,620	 	 	 	3,401,748	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	259,991	 	 	 	225,160	 	 	 	1,140,923	 	 	 	960,649	 	
Real estate segment operations	 	 	39,918	 	 	 	76,266	 	 	 	193,926	 	 	 	324,861	 	
Marketing and trading fuel and purchased power	 	 	67,899	 	 	 	62,840	 	 	 	294,236	 	 	 	290,637	 	
Operations and maintenance	 	 	207,398	 	 	 	180,122	 	 	 	734,705	 	 	 	691,277	 	
Depreciation and amortization	 	 	95,921	 	 	 	91,336	 	 	 	373,436	 	 	 	358,644	 	
Taxes other than income taxes	 	 	23,802	 	 	 	28,425	 	 	 	128,218	 	 	 	128,395	 	
Other expenses	 	 	10,388	 	 	 	5,853	 	 	 	38,925	 	 	 	28,415	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	705,317	 	 	 	670,002	 	 	 	2,904,369	 	 	 	2,782,878	 	

Operating Income	 	 	53,799	 	 	 	60,070	 	 	 	619,251	 	 	 	618,870	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	6,321	 	 	 	3,700	 	 	 	21,195	 	 	 	14,312	 	
Other income	 	 	12,718	 	 	 	9,568	 	 	 	24,694	 	 	 	44,016	 	
Other expense	 	 	(12,198	)	 	 	(14,847	)	 	 	(25,883	)	 	 	(27,800	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	6,841	 	 	 	(1,579	)	 	 	20,006	 	 	 	30,528	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	54,268	 	 	 	52,841	 	 	 	212,620	 	 	 	196,826	 	
Capitalized interest	 	 	(7,608	)	 	 	(6,394	)	 	 	(23,063	)	 	 	(20,989	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	46,660	 	 	 	46,447	 	 	 	189,557	 	 	 	175,837	 	

Income From Continuing Operations Before Income Taxes	 	 	13,980	 	 	 	12,044	 	 	 	449,700	 	 	 	473,561	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	10,492	 	 	 	1,518	 	 	 	150,920	 	 	 	156,418	 	

Income From Continuing Operations	 	 	3,488	 	 	 	10,526	 	 	 	298,780	 	 	 	317,143	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income (Loss) From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	(577	)	 	 	7,953	 	 	 	8,363	 	 	 	10,112	 	

Net Income	 	$	2,911	 	 	$	18,479	 	 	$	307,143	 	 	$	327,255	 	

Weighted—Average Common Shares Outstanding — Basic	 	 	100,420	 	 	 	99,832	 	 	 	100,256	 	 	 	99,417	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,963	 	 	 	100,474	 	 	 	100,835	 	 	 	100,010	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	0.03	 	 	$	0.11	 	 	$	2.98	 	 	$	3.19	 	
Net income — basic	 	$	0.03	 	 	$	0.19	 	 	$	3.06	 	 	$	3.29	 	
Income from continuing operations — diluted	 	$	0.03	 	 	$	0.10	 	 	$	2.96	 	 	$	3.17	 	
Net income — diluted	 	$	0.03	 	 	$	0.18	 	 	$	3.05	 	 	$	3.27