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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): March 31, 2005

 	 	Exact Name of Registrant as Specified in	 	 	
 	 	Charter; State of Incorporation;	 	IRS Employer	
Commission File Number	 	Address and Telephone Number	 	Identification Number	
1-8962	 	Pinnacle West Capital Corporation	 	86-0512431	
	 	(an Arizona corporation)	 	 	
	 	400 North Fifth Street, P.O. Box 53999	 	 	
	 	Phoenix, AZ 85072-3999	 	 	
	 	(602) 250-1000	 	 	
 	 	 	 	 	
1-4473	 	Arizona Public Service Company	 	86-0011170	
	 	(an Arizona corporation)	 	 	
	 	400 North Fifth Street, P.O. Box 53999	 	 	
	 	Phoenix, AZ 85072-3999	 	 	
	 	(602) 250-1000	 	 	
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
      o Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)
      o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
      o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
      o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
     This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing on its own behalf all of the information contained in this Form 8-K that relates to such registrant. Neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

 

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GLOSSARY
ACC – Arizona Corporation Commission
APS – Arizona Public Service Company, a subsidiary of the Company
Company – Pinnacle West Capital Corporation
FERC – Federal Energy Regulatory Commission
kWh – kilowatt hour, one thousand watts per hour
January Form 8-K – Pinnacle West’s Current Report on Form 8-K filed on January 28, 2005
March Form 8-K – Pinnacle West’s Current Report on Form 8-K filed on March 29, 2005
Native Load – retail and wholesale sales supplied under traditional cost-based rate regulation
Pinnacle West – Pinnacle West Capital Corporation
Pinnacle West Energy – Pinnacle West Energy Corporation, a subsidiary of the Company
PWEC Dedicated Assets – the following Pinnacle West Energy Corporation power plants: Redhawk Units 1 and 2, West Phoenix Units 4 and 5 and Saguaro Unit 3
Sundance Plant – a 450-megawatt generating facility located approximately 55 miles southeast of Phoenix, Arizona
2004 Form 10-K – the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2004
2004 Settlement Agreement – an agreement that, as approved by the ACC, established terms to resolve APS’ general rate case originally filed with the ACC in June 2003

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TABLE OF CONTENTS

 	 	 	 	Page	
Item 2.02	 	Results of Operations and Financial Condition	 	 	1	 	
Item 7.01	 	Regulation FD Disclosure	 	 	1	 	
Item 9.01	 	Financial Statements and Exhibits	 	 	4	 	
Signatures	 	 	5	 	
  EX-99.1	
  EX-99.2	
  EX-99.3	
  EX-99.4	
  EX-99.5	
  EX-99.6	
  EX-99.7	
  EX-99.8	
  EX-99.9	
  EX-99.10	

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Item 2.02. Results of Operations and Financial Condition
     Certain of the Information referenced in Item 7.01 below relates to Pinnacle West’s results of operations for its fiscal quarter ended March 31, 2005. This Information is attached hereto as Exhibits 99.2, 99.3, and 99.7.
     On April 26, 2005, the Company issued a press release regarding its financial results for its fiscal quarter year ended March 31, 2005. A copy of the press release is attached hereto as Exhibit 99.9.
     The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3, 99.7, 99.9 and 99.10 of this report relating to the Company’s financial results for its fiscal quarter ended March 31, 2005 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
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.
Earnings Outlook
     We currently estimate that 2005 earnings will be within a reasonable range around $3.00 per diluted common share. This estimate is based on a number of factors and assumptions, including but not limited to:

 	•  	We assume SunCor Development Company will report 2005 net income of approximately $50 million, or $0.55 per share.	
 	
 	•  	Our earnings for the first quarter of 2005 exceeded our initial plan. We expect approximately $0.11 per share of the excess to benefit our 2005 earnings, primarily due to fewer unplanned plant outages and lower related replacement power costs ($0.07 per share) and higher mark-to-market valuations for Native Load hedge positions as a result of higher forward prices for gas and power ($0.04 per share).	

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 	•  	We assume APS’ acquisition of the Sundance Plant will be approved by the FERC and close in the spring of 2005. Our planned ownership of the Sundance Plant is expected to decrease 2005 earnings approximately $0.03 per share compared with our earnings outlook in the January Form 8-K.	
 	
 	•  	Pinnacle West Energy issued $500 million of two-year floating rate notes and repaid the intercompany loan from APS. This refinancing is expected to save approximately $0.02 per share compared with our earnings outlook in the January Form 8-K.	
 	
 	•  	The estimate reflects the effects of our expected issuance of approximately 6,095,000 shares of our common stock, which assumes the underwriters’ full exercise of their over-allotment option. The net effect is estimated to be a decrease in earnings of $0.09 per share for 2005.	
 	
 	•  	The transfer of the PWEC Dedicated Assets from Pinnacle West Energy to APS, as approved by the ACC in the 2004 Settlement Agreement, is expected to take place after the FERC approves the transfer. We will recognize a regulatory disallowance of approximately $90 million after income taxes in the period when the plant transfer to APS is completed. Our 2005 earnings estimate does not reflect the regulatory disallowance.	
 	
 	•  	This estimate does not reflect the effects of a potential sale of our interest in Silverhawk, as discussed under “Silverhawk Power Station” below.	
     Except as described in the following sentence, earnings per share amounts for the factors and assumptions discussed above are after income taxes and are based on diluted common shares outstanding before the expected equity issuance. Earnings per share amounts for the net effect of the expected equity issuance are after income taxes and are based on expected average common shares outstanding after the issuance.
     This earnings guidance supersedes all previous earnings guidance provided by the Company and is forward-looking information. Actual results may differ materially from our expectations. See “Forward-Looking Statements” below.
Silverhawk Power Station
     Pinnacle West, through its subsidiary Pinnacle West Energy, has a 75% ownership interest in Silverhawk, a 570 MW combined cycle power plant located 20 miles north of Las Vegas, Nevada. Silverhawk is the only Pinnacle West generating facility that operates as a fully competitive merchant generator. While we believe that our Silverhawk ownership interest will be profitable in the longer term, we estimate that in 2005 and 2006 it will incur annual after-tax losses in the range of $19 million to $23 million, or $0.20 to $0.25 per share. Such a loss for 2005 was assumed in developing the Company’s 2005 earnings outlook discussed above.
     Recently, we have received proposals from several parties that have expressed interest in acquiring our ownership interest in Silverhawk. These proposals contemplate a transaction closing in 2005. Such a transaction would result in our recognizing a loss. If such a transaction were to
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occur, we would plan to invest the after-tax sale proceeds, estimated to be in the range of $200 million to $215 million, into APS. No assurance can be given that the transaction will occur.
     The information being furnished pursuant to this Item 7.01 and in Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6, 99.7 and 99.8 shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that Section.
Forward-Looking Statements
     This Report on Form 8-K contains forward-looking statements based on current expectations, and we assume no obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. Forward-looking statements are often identified by words such as “estimate,” “predicts,” “hope,” “may,” “believe,” “should, ” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. 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 us. These factors include, but are not limited to:

 	•  	state and federal regulatory and legislative decisions and actions, including by the FERC;	
 	
 	•  	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 relating to the restructuring;	
 	
 	•  	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;	
 	
 	•  	regional economic and market conditions, including the results of litigation and other proceedings resulting from the California energy situation, volatile purchased power and fuel 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 and the assumption that the expected equity issuance described above will occur;	
 	
 	•  	the uncertainty that current credit ratings will remain 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	
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 	   	interpretation of those principles;	
 	
 	•  	the performance of the stock market and the changing interest rate environment, which affect the amount of our required contributions to our pension plan and nuclear decommissioning trust funds, as well as our 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 our control.	
Item 9.01. Financial Statements and Exhibits
      (c) 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 periods ended March 31, 2005 and 2004.	
 	 	 	 	 		
 	99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	 	 		
 	99.4	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	 	 	 	
 	99.5	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
 	 	 	 	 		
 	99.6	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
 	 	 	 	 	 	
 	99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended March 31, 2005 and 2004 and condensed consolidated statements of income for the three months ended March 31, 2005 and 2004.	
 	 	 	 	 	 	
 	99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	 	
 	99.9	 	Pinnacle West
APS	 	Earnings News Release issued on April 26, 2005.	
 	 	 	 	 	 	
 	99.10	 	Pinnacle West
APS	 	Reconciliation of Operating Income to Gross Margin.	
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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: April 26, 2005	 	By:	 	/s/ Barbara M. Gomez	
	 	 	 		
	 	 	 	          Barbara M. Gomez	
	 	 	 	          Vice President and Treasurer	
 	 	 	 	 	
 	 	ARIZONA PUBLIC SERVICE COMPANY	
 	 	(Registrant)	
 	 	 	 	 	
Dated: April 26, 2005	 	By:	 	/s/ Barbara M. Gomez	
	 	 	 		
	 	 	 	          Barbara M. Gomez	
	 	 	 	          Vice President and Treasurer	
5

Exhibit 99.1
Last Updated 4/26/05
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Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004
2005 First Quarter Summary
2004 by Quarter
2003 by Quarter
2002 by Quarter
Quarters may not sum to totals due to rounding.
Certain current and prior year amounts have been reclassified to conform to current period presentation.
The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2005Q1QuarStatsGloss.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 4/26/05
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	27	 	 	$	34	 	 	$	(7	)	
2	 	Pinnacle West Energy	 	 	(21	)	 	 	(18	)	 	 	(3	)	
3	 	APS Energy Services	 	 	(3	)	 	 	2	 	 	 	(5	)	
4	 	SunCor	 	 	9	 	 	 	2	 	 	 	7	 	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	(1	)	
6	 	Parent Company	 	 	13	 	 	 	11	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	
7	 	Income From Continuing Operations	 	 	24	 	 	 	31	 	 	 	(7	)	
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	
8a	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	
8b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
9	 	Net Income	 	$	24	 	 	$	31	 	 	$	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS PER SHARE
BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	0.30	 	 	$	0.38	 	 	$	(0.08	)	
11	 	Pinnacle West Energy	 	 	(0.22	)	 	 	(0.20	)	 	 	(0.02	)	
12	 	APS Energy Services	 	 	(0.04	)	 	 	0.02	 	 	 	(0.06	)	
13	 	SunCor	 	 	0.09	 	 	 	0.02	 	 	 	0.07	 	
14	 	El Dorado	 	 	(0.01	)	 	 	—	 	 	 	(0.01	)	
15	 	Parent Company	 	 	0.15	 	 	 	0.12	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	
16	 	Income From Continuing Operations	 	 	0.27	 	 	 	0.34	 	 	 	(0.07	)	
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	
17a	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	
17b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
18	 	Net Income	 	$	0.27	 	 	$	0.34	 	 	$	(0.07	)	
 	 	 	 	 	 	 	 	 	 	 	 	
19	 	BOOK VALUE PER SHARE	 	$	32.50	 	 	$	31.19	 	 	$	1.31	 	
 	 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Average	 	 	92,045	 	 	 	91,376	 	 	 	669	 	
21	 	End of Period	 	 	92,103	 	 	 	91,310	 	 	 	793	 	
 	 	
See Glossary of Terms.	Page 1 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	ELECTRIC OPERATING REVENUES
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Residential	 	$	190	 	 	$	189	 	 	$	1	 	
23	 	Business	 	 	209	 	 	 	211	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Total retail	 	 	399	 	 	 	400	 	 	 	(1	)	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	Traditional contracts	 	 	3	 	 	 	3	 	 	 	—	 	
26	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	
27	 	Transmission for others	 	 	7	 	 	 	8	 	 	 	(1	)	
28	 	Other miscellaneous services	 	 	7	 	 	 	4	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	
29	 	Total regulated electricity	 	 	416	 	 	 	415	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Generation sales other than native load	 	 	46	 	 	 	10	 	 	 	36	 	
31	 	Realized margins on electricity trading (a)	 	 	6	 	 	 	5	 	 	 	1	 	
32	 	Other delivered electricity (a)	 	 	58	 	 	 	66	 	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total delivered marketing and trading	 	 	110	 	 	 	81	 	 	 	29	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	1	 	 	 	(2	)	 	 	3	 	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(2	)	 	 	1	 	 	 	(3	)	
36	 	Change in mark-to-market for future-period deliveries	 	 	8	 	 	 	8	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total other marketing and trading	 	 	7	 	 	 	7	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Total marketing and trading	 	 	117	 	 	 	88	 	 	 	29	 	
 	 	 	 	 	 	 	 	 	 	 	 	
39	 	Total operating electric revenues	 	$	533	 	 	$	503	 	 	$	30	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the first quarter of 2005. Lines 31, 32 and 34 include amounts totaling $2 million of realized gain for the first quarter of 2005.	

See Glossary of Terms.	Page 2 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Residential	 	 	2,367	 	 	 	2,410	 	 	 	(43	)	
41	 	Business	 	 	3,042	 	 	 	3,051	 	 	 	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total retail	 	 	5,409	 	 	 	5,461	 	 	 	(52	)	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Traditional contracts	 	 	155	 	 	 	138	 	 	 	17	 	
44	 	Retail load hedge management	 	 	750	 	 	 	169	 	 	 	581	 	
 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Total regulated electricity	 	 	6,314	 	 	 	5,768	 	 	 	546	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Generation sales other than native load	 	 	979	 	 	 	358	 	 	 	621	 	
47	 	Electricity trading	 	 	4,015	 	 	 	4,198	 	 	 	(183	)	
48	 	Other delivered electricity	 	 	1,067	 	 	 	1,139	 	 	 	(72	)	
 	 	 	 	 	 	 	 	 	 	 	 	
49	 	Total delivered marketing and trading	 	 	6,061	 	 	 	5,695	 	 	 	366	 	
 	 	 	 	 	 	 	 	 	 	 	 	
50	 	Total electric sales	 	 	12,375	 	 	 	11,463	 	 	 	912	 	

See Glossary of Terms.	Page 3 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Generation sales other than native load	 	$	6	 	 	$	3	 	 	$	3	 	
52	 	Other electricity marketing and trading (a)	 	 	4	 	 	 	11	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Total electricity	 	 	10	 	 	 	14	 	 	 	(4	)	
54	 	Other commodities (a)	 	 	1	 	 	 	(2	)	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	
55	 	Total realized margin	 	 	11	 	 	 	12	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Electricity (a)	 	 	(1	)	 	 	(1	)	 	 	—	 	
57	 	Other commodities (a)	 	 	(1	)	 	 	2	 	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	
58	 	Subtotal	 	 	(2	)	 	 	1	 	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total current period effects (b)	 	 	9	 	 	 	13	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	
60	 	Electricity	 	 	2	 	 	 	7	 	 	 	(5	)	
61	 	Other commodities	 	 	6	 	 	 	1	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Subtotal	 	 	8	 	 	 	8	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Total gross margin	 	$	17	 	 	$	21	 	 	$	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of March 31, 2005, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2005, $16 million; 2006, $6 million; 2007, $15 million; and thereafter, $8 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 63 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the first quarter of 2005. A $1 million realized gain is included in the $4 million on line 52 for the first quarter of 2005.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	

			
See Glossary of Terms.	 	Page 4 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	
 		
 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	
 		
64	 	Electricity	 	$	11	 	 	$	20	 	 	$	(9	)	
65	 	Natural gas	 	 	6	 	 	 	1	 	 	 	5	 	
66	 	Coal	 	 	—	 	 	 	—	 	 	 	—	 	
67	 	Emission allowances	 	 	—	 	 	 	—	 	 	 	—	 	
68	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Total gross margin	 	$	17	 	 	$	21	 	 	$	(4	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	
 		
 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Generation sales other than native load	 	$	1	 	 	$	—	 	 	$	1	 	
71	 	Other marketing and trading	 	 	13	 	 	 	12	 	 	 	1	 	
 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Generation sales other than native load	 	 	5	 	 	 	3	 	 	 	2	 	
73	 	Other marketing and trading	 	 	(9	)	 	 	(8	)	 	 	(1	)	
 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	
75	 	Other marketing and trading	 	 	10	 	 	 	10	 	 	 	—	 	
 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Other marketing and trading	 	 	(3	)	 	 	4	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total gross margin before income taxes	 	$	17	 	 	$	21	 	 	$	(4	)	

 	 	
See Glossary of Terms.	Page 5 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	
 		
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Residential	 	 	889,967	 	 	 	855,754	 	 	 	34,213	 	
79	 	Business	 	 	109,772	 	 	 	105,502	 	 	 	4,270	 	
 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total	 	 	999,739	 	 	 	961,256	 	 	 	38,483	 	
81	 	Wholesale customers	 	 	81	 	 	 	81	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total customers	 	 	999,820	 	 	 	961,337	 	 	 	38,483	 	

83	 	Customer Growth (% over prior year)	 	 	4.0	%	 	 	3.4	%	 	 	0.6	%	
 		
 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	
 		
84	 	Residential	 	 	2,430	 	 	 	2,371	 	 	 	59	 	
85	 	Business	 	 	3,058	 	 	 	2,998	 	 	 	60	 	
 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	5,488	 	 	 	5,369	 	 	 	119	 	

 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	
 		
87	 	Residential	 	 	2,660	 	 	 	2,816	 	 	 	(156	)	
88	 	Business	 	 	27,712	 	 	 	28,919	 	 	 	(1,207	)	
 		
 	 	RETAIL USAGE -
WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	
 		
89	 	Residential	 	 	2,730	 	 	 	2,770	 	 	 	(40	)	
90	 	Business	 	 	27,860	 	 	 	28,422	 	 	 	(562	)	
 		
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	
 		
91	 	System peak demand	 	 	3,997	 	 	 	3,979	 	 	 	18	 	

 	 	
See Glossary of Terms.	Page 6 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Nuclear	 	 	2,247	 	 	 	2,148	 	 	 	99	 	
93	 	Coal	 	 	2,940	 	 	 	2,887	 	 	 	53	 	
94	 	Gas, oil and other	 	 	1,127	 	 	 	367	 	 	 	760	 	
 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Total	 	 	6,314	 	 	 	5,402	 	 	 	912	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Firm load	 	 	586	 	 	 	701	 	 	 	(115	)	
97	 	Marketing and trading	 	 	5,832	 	 	 	5,506	 	 	 	326	 	
 	 	 	 	 	 	 	 	 	 	 	 	
98	 	Total	 	 	6,418	 	 	 	6,207	 	 	 	211	 	
 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total energy sources	 	 	12,732	 	 	 	11,609	 	 	 	1,123	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Nuclear	 	 	94	%	 	 	88	%	 	 	6	%	
101	 	Coal	 	 	80	%	 	 	77	%	 	 	3	%	
102	 	Gas, oil and other	 	 	17	%	 	 	5	%	 	 	12	%	
103	 	System average	 	 	49	%	 	 	44	%	 	 	5	%	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Nuclear	 	 	52	 	 	 	135	 	 	 	(83	)	
105	 	Coal	 	 	138	 	 	 	149	 	 	 	(11	)	
106	 	Gas	 	 	212	 	 	 	49	 	 	 	163	 	
 	 	 	 	 	 	 	 	 	 	 	 	
107	 	Total	 	 	402	 	 	 	333	 	 	 	69	 	
108	 	Generation Fuel Cost ($/MWh)	 	$	15.50	 	 	$	11.17	 	 	$	4.33	 	

 	 	
See Glossary of Terms.	Page 7 of 8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

 	 	 	 	3 Mo. Ended March	 	
Line	 	 	 	2005	 	 	2004	 	 	Incr (Decr)	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	
109	 	Palo Verde	 	$	49.74	 	 	$	43.73	 	 	$	6.01	 	
110	 	SP15	 	$	55.70	 	 	$	48.37	 	 	$	7.33	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	
111	 	Palo Verde	 	$	37.04	 	 	$	33.66	 	 	$	3.38	 	
112	 	SP15	 	$	40.96	 	 	$	36.90	 	 	$	4.06	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	
113	 	Cooling degree-days	 	 	34	 	 	 	273	 	 	 	(239	)	
114	 	Heating degree-days	 	 	457	 	 	 	552	 	 	 	(95	)	
115	 	Average humidity	 	 	56	%	 	 	39	%	 	 	17	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	
116	 	Cooling degree-days	 	 	80	 	 	 	80	 	 	 	—	 	
117	 	Heating degree-days	 	 	521	 	 	 	521	 	 	 	—	 	
118	 	Average humidity	 	 	43	%	 	 	43	%	 	 	0	%	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	
119	 	Single-family	 	 	6,447	 	 	 	5,571	 	 	 	876	 	
120	 	Multi-family	 	 	1,972	 	 	 	974	 	 	 	998	 	
 	 	 	 	 	 	 	 	 	 	 	 	
121	 	Total	 	 	8,419	 	 	 	6,545	 	 	 	1,874	 	
 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	
122	 	Payroll job growth (% over prior year)	 	 	4.2	%	 	 	2.5	%	 	 	1.7	%	
123	 	Unemployment rate (%, seasonally adjusted)	 	 	4.3	%	 	 	5.3	%	 	 	(1.0	)%	

Sources:
(a)	 	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
 		
(d)	 	The economic indicators reflect latest available data through periods ending February 2005.	

 	 	
See Glossary of Terms.	Page 8 of 8	

Exhibit 99.3
Last Updated 4/26/05
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	27	 	 	 	(7	)	
2	 	Pinnacle West Energy	 	 	(21	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(21	)	 	 	(3	)	
3	 	APS Energy Services	 	 	(3	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(3	)	 	 	(5	)	
4	 	SunCor	 	 	9	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9	 	 	 	7	 	
5	 	El Dorado	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	(1	)	
6	 	Parent Company	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	13	 	 	 	2	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
7	 	Income From Continuing Operations	 	 	24	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	24	 	 	 	(7	)	
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8a	 	Net of Tax	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8b	 	Net of Tax	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
9	 	Net Income	 	$	24	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	24	 	 	$	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS PER SHARE
BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	0.30	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	0.30	 	 	$	(0.08	)	
11	 	Pinnacle West Energy	 	 	(0.22	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.22	)	 	 	(0.02	)	
12	 	APS Energy Services	 	 	(0.04	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.04	)	 	 	(0.06	)	
13	 	SunCor	 	 	0.09	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.09	 	 	 	0.07	 	
14	 	El Dorado	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(0.01	)	 	 	(0.01	)	
15	 	Parent Company	 	 	0.15	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.15	 	 	 	0.03	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
16	 	Income From Continuing Operations	 	 	0.27	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.27	 	 	 	(0.07	)	
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17a	 	Net of Tax	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17b	 	Net of Tax	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	Net Income	 	$	0.27	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	0.27	 	 	$	(0.07	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
19	 	BOOK VALUE PER SHARE	 	$	32.50	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	32.50	 	 	$	1.31	 	
 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Average	 	 	92,045	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	92,045	 	 	 	669	 	
21	 	End of Period	 	 	92,103	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	92,103	 	 	 	793	 	

			
See Glossary of Terms.	 	Page 1 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005

Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	Increase
(Decrease)
vs Prior YTD	 	
 	 	ELECTRIC OPERATING REVENUES
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Residential	 	$	190	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	190	 	 	$	1	 	
23	 	Business	 	 	209	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	209	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Total retail	 	 	399	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	399	 	 	 	(1	)	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	Traditional contracts	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	—	 	
26	 	Retail load hedge management	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
27	 	Transmission for others	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	(1	)	
28	 	Other miscellaneous services	 	 	7	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
29	 	Total regulated electricity	 	 	416	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	416	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Generation sales other than native load	 	 	46	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	46	 	 	 	36	 	
31	 	Realized margins on electricity trading (a)	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	1	 	
32	 	Other delivered electricity (a)	 	 	58	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	58	 	 	 	(8	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total delivered marketing and trading	 	 	110	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	110	 	 	 	29	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	3	 	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(2	)	 	 	(3	)	
36	 	Change in mark-to-market for future-period deliveries	 	 	8	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total other marketing and trading	 	 	7	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	7	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Total marketing and trading	 	 	117	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	117	 	 	 	29	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
39	 	Total electric operating revenues	 	$	533	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	533	 	 	$	30	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the fourth quarter of 2004. Lines 31, 32 and 34 include amounts totaling $1 million of realized gain for the fourth quarter of 2004.	

See Glossary of Terms.	Page 2 of 8	

 

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 SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Residential	 	 	2,367	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,367	 	 	 	(43	)	
41	 	Business	 	 	3,042	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,042	 	 	 	(9	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total retail	 	 	5,409	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5,409	 	 	 	(52	)	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Traditional contracts	 	 	155	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	155	 	 	 	17	 	
44	 	Retail load hedge management	 	 	750	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	750	 	 	 	581	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Total regulated electricity	 	 	6,314	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6,314	 	 	 	546	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Generation sales other than native load	 	 	979	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	979	 	 	 	621	 	
47	 	Electricity trading	 	 	4,015	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,015	 	 	 	(183	)	
48	 	Other delivered electricity	 	 	1,067	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,067	 	 	 	(72	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
49	 	Total delivered marketing and trading	 	 	6,061	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6,061	 	 	 	366	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
50	 	Total electric sales	 	 	12,375	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	12,375	 	 	 	912	 	

See Glossary of Terms.	Page 3 of 8	

 

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	 	
 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
     (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Generation sales other than native load	 	$	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	6	 	 	$	3	 	
52	 	Other electricity marketing and trading (a)	 	 	4	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4	 	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Total electricity	 	 	10	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	(4	)	
54	 	Other commodities (a)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
55	 	Total realized margin	 	 	11	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	11	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Electricity (a)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	—	 	
57	 	Other commodities (a)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
58	 	Subtotal	 	 	(2	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total current period effects (b)	 	 	9	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	9	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
60	 	Electricity	 	 	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	 	 	 	(5	)	
61	 	Other commodities	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total future period effects	 	 	8	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Total gross margin	 	$	17	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	17	 	 	$	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of March 31, 2005, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2005, $16 million; 2006, $6 million; 2007, $15 million; and thereafter, $8 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 63 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the first quarter of 2005. A $1 million realized gain is included in the $4 million on line 52 for the first quarter of 2005.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	
See Glossary of Terms.	Page 4 of 8	

 

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	 	
 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
     (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 		
 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 		
64	 	Electricity	 	$	11	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	11	 	 	$	(9	)	
65	 	Natural gas	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	5	 	
66	 	Coal	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
67	 	Emission allowances	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
68	 	Other	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Total gross margin	 	$	17	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	17	 	 	$	(4	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 		
 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Generation sales other than native load	 	$	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	1	 	 	$	1	 	
71	 	Other marketing and trading	 	 	13	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	13	 	 	 	1	 	
 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Generation sales other than native load	 	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5	 	 	 	2	 	
73	 	Other marketing and trading	 	 	(9	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(9	)	 	 	(1	)	
 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Generation sales other than native load	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
75	 	Other marketing and trading	 	 	10	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10	 	 	 	—	 	
 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Other marketing and trading	 	 	(3	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(3	)	 	 	(7	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total gross margin before income taxes	 	$	17	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	17	 	 	$	(4	)	

			
See Glossary of Terms.	 	Page 5 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Residential	 	 	889,967	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	889,967	 	 	 	34,213	 	
79	 	Business	 	 	109,772	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	109,772	 	 	 	4,270	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total	 	 	999,739	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	999,739	 	 	 	38,483	 	
81	 	Wholesale customers	 	 	81	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	81	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total customers	 	 	999,820	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	999,820	 	 	 	38,483	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Customer Growth (% over prior year)	 	 	4.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4.0	%	 	 	0.6	%	
 		
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
84	 	Residential	 	 	2,430	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,430	 	 	 	59	 	
85	 	Business	 	 	3,058	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,058	 	 	 	59	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	5,488	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5,488	 	 	 	119	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
87	 	Residential	 	 	2,660	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,660	 	 	 	(156	)	
88	 	Business	 	 	27,712	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	27,712	 	 	 	(1,207	)	
 		
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
89	 	Residential	 	 	2,730	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,730	 	 	 	(40	)	
90	 	Business	 	 	27,860	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	27,860	 	 	 	(562	)	
 		
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
91	 	System peak demand	 	 	3,997	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,997	 	 	 	18	 	

See Glossary of Terms.	Page 6 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Nuclear	 	 	2,247	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,247	 	 	 	99	 	
93	 	Coal	 	 	2,940	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,940	 	 	 	53	 	
94	 	Gas, oil and other	 	 	1,127	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,127	 	 	 	760	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Total	 	 	6,314	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6,314	 	 	 	912	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Firm load	 	 	586	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	586	 	 	 	(115	)	
97	 	Marketing and trading	 	 	5,832	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,832	 	 	 	326	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
98	 	Total	 	 	6,418	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6,418	 	 	 	211	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total energy sources	 	 	12,732	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	12,732	 	 	 	1,123	 	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 		
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Nuclear	 	 	94	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	94	%	 	 	6	%	
101	 	Coal	 	 	80	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	80	%	 	 	3	%	
102	 	Gas, oil and other	 	 	17	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	17	%	 	 	12	%	
103	 	System average	 	 	49	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	49	%	 	 	5	%	
 		
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Nuclear	 	 	52	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	52	 	 	 	(83	)	
105	 	Coal	 	 	138	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	138	 	 	 	(11	)	
106	 	Gas	 	 	212	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	212	 	 	 	163	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
107	 	Total	 	 	402	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	402	 	 	 	69	 	
 		
108	 	Generation Fuel Cost ($/MWh)	 	$	15.50	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	15.50	 	 	$	4.33	 	

			
See Glossary of Terms.	 	Page 7 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
109	 	Palo Verde	 	$	49.74	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	49.74	 	 	$	6.01	 	
110	 	SP15	 	$	55.70	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	55.70	 	 	$	7.33	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
111	 	Palo Verde	 	$	37.04	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	37.04	 	 	$	3.38	 	
112	 	SP15	 	$	40.96	 	 	 	 	 	 	 	 	 	 	 	 	 	 	$	40.96	 	 	$	4.06	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
113	 	Cooling degree-days	 	 	34	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	34	 	 	 	(239	)	
114	 	Heating degree-days	 	 	457	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	457	 	 	 	(95	)	
115	 	Average humidity	 	 	56	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	56	%	 	 	17	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
116	 	Cooling degree-days	 	 	80	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	80	 	 	 	—	 	
117	 	Heating degree-days	 	 	521	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	521	 	 	 	—	 	
118	 	Average humidity	 	 	43	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	43	%	 	 	0	%	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)(d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
119	 	Single-family	 	 	6,447	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6,447	 	 	 	876	 	
120	 	Multi-family	 	 	1,972	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,972	 	 	 	998	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
121	 	Total	 	 	8,419	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8,419	 	 	 	1,874	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
122	 	Payroll job growth (% over prior year)	 	 	4.2	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4.2	%	 	 	1.7	%	
123	 	Unemployment rate (%, seasonally adjusted)	 	 	4.3	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4.3	%	 	 	(1.0	)%	

Sources:

(a)	 	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
 		
(d)	 	The economic indicators reflect latest available data through periods ending February 2005.	
 	 	
See Glossary of Terms.	Page 8 of 8	

Exhibit 99.4
Last Updated 4/26/05
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	 	 	(18	)	 	 	(11	)	 	 	6	 	 	 	(23	)	 	 	(47	)	 	 	(46	)		
3	 	APS Energy Services	 	 	2	 	 	 	1	 	 	 	1	 	 	 	(1	)	 	 	3	 	 	 	(13	)		
4	 	SunCor	 	 	2	 	 	 	4	 	 	 	4	 	 	 	31	 	 	 	41	 	 	 	(5	)		
5	 	El Dorado	 	 	—	 	 	 	34	 	 	 	—	 	 	 	—	 	 	 	33	 	 	 	33	 		
6	 	Parent Company	 	 	11	 	 	 	(11	)	 	 	(2	)	 	 	7	 	 	 	5	 	 	 	21	 		

7	 	Income From Continuing Operations	 	 	31	 	 	 	72	 	 	 	104	 	 	 	29	 	 	 	235	 	 	 	9	 		
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
8a	 	Net of Tax	 	 	—	 	 	 	1	 	 	 	1	 	 	 	5	 	 	 	8	 	 	 	(7	)		
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
8b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
9	 	Net Income	 	$	31	 	 	$	73	 	 	$	105	 	 	$	34	 	 	$	243	 	 	$	2	 		

 	 	EARNINGS PER SHARE
BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 		
10	 	Arizona Public Service	 	$	0.38	 	 	$	0.60	 	 	$	1.04	 	 	$	0.16	 	 	$	2.18	 	 	$	0.20	 		
11	 	Pinnacle West Energy	 	 	(0.20	)	 	 	(0.13	)	 	 	0.07	 	 	 	(0.25	)	 	 	(0.51	)	 	 	(0.50	)		
12	 	APS Energy Services	 	 	0.02	 	 	 	0.01	 	 	 	0.01	 	 	 	(0.01	)	 	 	0.03	 	 	 	(0.15	)		
13	 	SunCor	 	 	0.02	 	 	 	0.04	 	 	 	0.05	 	 	 	0.34	 	 	 	0.45	 	 	 	(0.05	)		
14	 	El Dorado	 	 	—	 	 	 	0.37	 	 	 	—	 	 	 	—	 	 	 	0.36	 	 	 	0.37	 		
15	 	Parent Company	 	 	0.12	 	 	 	(0.12	)	 	 	(0.03	)	 	 	0.08	 	 	 	0.06	 	 	 	0.23	 		

16	 	Income From Continuing Operations	 	 	0.34	 	 	 	0.77	 	 	 	1.14	 	 	 	0.32	 	 	 	2.57	 	 	 	0.10	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
17a	 	Net of Tax	 	 	—	 	 	 	0.02	 	 	 	0.01	 	 	 	0.05	 	 	 	0.09	 	 	 	(0.07	)		
 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
17b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
18	 	Net Income	 	 	0.34	 	 	$	0.79	 	 	$	1.15	 	 	$	0.37	 	 	$	2.66	 	 	$	0.03	 		

19	 	BOOK VALUE PER SHARE	 	$	31.19	 	 	$	31.68	 	 	$	32.55	 	 	$	32.24	 	 	$	32.24	 	 	$	1.27	 		
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
 	 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 		
20	 	Average	 	 	91,376	 	 	 	91,400	 	 	 	91,491	 	 	 	91,779	 	 	 	91,532	 	 	 	127	 		
21	 	End of Period	 	 	91,310	 	 	 	91,309	 	 	 	91,443	 	 	 	91,793	 	 	 	91,793	 	 	 	505	 		

 	 	
See Glossary of Terms.	Page 1 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Residential	 	$	189	 	 	$	245	 	 	$	360	 	 	$	190	 	 	$	984	 	 	$	27	 	
23	 	Business	 	 	211	 	 	 	257	 	 	 	289	 	 	 	222	 	 	 	979	 	 	 	26	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Total retail	 	 	400	 	 	 	502	 	 	 	649	 	 	 	412	 	 	 	1,963	 	 	 	53	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	6	 	 	 	3	 	 	 	16	 	 	 	1	 	
26	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
27	 	Transmission for others	 	 	8	 	 	 	8	 	 	 	8	 	 	 	8	 	 	 	32	 	 	 	5	 	
28	 	Other miscellaneous services	 	 	4	 	 	 	6	 	 	 	8	 	 	 	6	 	 	 	24	 	 	 	(2	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
29	 	Total regulated electricity	 	 	415	 	 	 	520	 	 	 	671	 	 	 	429	 	 	 	2,035	 	 	 	57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Generation sales other than native load	 	 	10	 	 	 	30	 	 	 	39	 	 	 	56	 	 	 	135	 	 	 	47	 	
31	 	Realized margins on electricity trading (a)	 	 	5	 	 	 	12	 	 	 	9	 	 	 	10	 	 	 	36	 	 	 	14	 	
32	 	Other delivered electricity (a)	 	 	66	 	 	 	71	 	 	 	77	 	 	 	65	 	 	 	279	 	 	 	(29	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total delivered marketing and trading	 	 	81	 	 	 	113	 	 	 	125	 	 	 	131	 	 	 	450	 	 	 	32	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	(2	)	 	 	2	 	 	 	(1	)	 	 	(3	)	 	 	(4	)	 	 	2	 	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	1	 	 	 	(4	)	 	 	(3	)	 	 	(1	)	 	 	(5	)	 	 	6	 	
36	 	Change in mark-to-market for future-period deliveries	 	 	8	 	 	 	4	 	 	 	8	 	 	 	3	 	 	 	21	 	 	 	28	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total other marketing and trading	 	 	7	 	 	 	2	 	 	 	4	 	 	 	(1	)	 	 	12	 	 	 	36	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Total marketing and trading	 	 	88	 	 	 	115	 	 	 	129	 	 	 	130	 	 	 	462	 	 	 	68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
39	 	Total electric operating revenues	 	$	503	 	 	$	635	 	 	$	800	 	 	$	559	 	 	$	2,497	 	 	$	125	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the fourth quarter of 2004. Lines 31, 32 and 34 include amounts totaling $1 million of realized gain for the fourth quarter of 2004.	

			
See Glossary of Terms.	 	Page 2 of 8	

 

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 SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Residential	 	 	2,410	 	 	 	2,722	 	 	 	4,028	 	 	 	2,368	 	 	 	11,528	 	 	 	381	 	
41	 	Business	 	 	3,051	 	 	 	3,602	 	 	 	3,937	 	 	 	3,236	 	 	 	13,825	 	 	 	409	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total retail	 	 	5,461	 	 	 	6,324	 	 	 	7,965	 	 	 	5,604	 	 	 	25,353	 	 	 	790	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Traditional contracts	 	 	138	 	 	 	195	 	 	 	210	 	 	 	167	 	 	 	710	 	 	 	210	 	
44	 	Retail load hedge management	 	 	169	 	 	 	731	 	 	 	943	 	 	 	889	 	 	 	2,732	 	 	 	1,639	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Total regulated electricity	 	 	5,768	 	 	 	7,250	 	 	 	9,118	 	 	 	6,660	 	 	 	28,795	 	 	 	2,639	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Generation sales other than native load	 	 	358	 	 	 	705	 	 	 	636	 	 	 	1,018	 	 	 	2,717	 	 	 	571	 	
47	 	Electricity trading	 	 	4,198	 	 	 	5,243	 	 	 	7,050	 	 	 	6,225	 	 	 	22,714	 	 	 	1,409	 	
48	 	Other delivered electricity	 	 	1,139	 	 	 	1,194	 	 	 	1,308	 	 	 	1,104	 	 	 	4,745	 	 	 	(606	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
49	 	Total delivered marketing and trading	 	 	5,695	 	 	 	7,142	 	 	 	8,994	 	 	 	8,347	 	 	 	30,176	 	 	 	1,374	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
50	 	Total electric sales	 	 	11,463	 	 	 	14,392	 	 	 	18,112	 	 	 	15,007	 	 	 	58,971	 	 	 	4,013	 	

See Glossary of Terms.	Page 3 of 8	

 

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	 	
 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Generation sales other than native load	 	$	3	 	 	$	2	 	 	$	5	 	 	$	6	 	 	$	16	 	 	$	9	 	
52	 	Other electricity marketing and trading (a)	 	 	11	 	 	 	17	 	 	 	12	 	 	 	12	 	 	 	52	 	 	 	(14	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Total electricity	 	 	14	 	 	 	19	 	 	 	17	 	 	 	18	 	 	 	68	 	 	 	(5	)	
54	 	Other commodities (a)	 	 	(2	)	 	 	2	 	 	 	(1	)	 	 	(3	)	 	 	(4	)	 	 	4	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
55	 	Total realized margin	 	 	12	 	 	 	21	 	 	 	16	 	 	 	15	 	 	 	64	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Electricity (a)	 	 	(1	)	 	 	(2	)	 	 	(3	)	 	 	(2	)	 	 	(7	)	 	 	7	 	
57	 	Other commodities (a)	 	 	2	 	 	 	(2	)	 	 	—	 	 	 	1	 	 	 	2	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
58	 	Subtotal	 	 	1	 	 	 	(4	)	 	 	(3	)	 	 	(1	)	 	 	(5	)	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total current period effects (b)	 	 	13	 	 	 	17	 	 	 	13	 	 	 	14	 	 	 	59	 	 	 	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
60	 	Electricity	 	 	7	 	 	 	3	 	 	 	—	 	 	 	5	 	 	 	14	 	 	 	22	 	
61	 	Other commodities	 	 	1	 	 	 	1	 	 	 	8	 	 	 	(2	)	 	 	7	 	 	 	6	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total future period effects	 	 	8	 	 	 	4	 	 	 	8	 	 	 	3	 	 	 	21	 	 	 	28	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	21	 	 	$	17	 	 	$	80	 	 	$	33	 	

 	 	Future Marketing and Trading Mark-to-Market Realization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
As of December 31, 2004, Pinnacle West had accumulated net mark-to-market gains of $39 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: 2005, $15 million; 2006, $6 million; and thereafter, $18 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 59 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the fourth quarter of 2004. A $2 million realized gain is included in the $12 million on line 52 for the fourth quarter of 2004.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	

			
See Glossary of Terms.	 	Page 4 of 8	

 

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	 	
 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Electricity	 	$	20	 	 	$	20	 	 	$	15	 	 	$	21	 	 	$	76	 	 	$	24	 	
65	 	Natural gas	 	 	1	 	 	 	—	 	 	 	6	 	 	 	(4	)	 	 	3	 	 	 	—	 	
66	 	Coal	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2	 	
67	 	Emission allowances	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	8	 	
68	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	21	 	 	$	17	 	 	$	80	 	 	$	33	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	2	 	
71	 	Other marketing and trading	 	 	12	 	 	 	7	 	 	 	5	 	 	 	1	 	 	 	25	 	 	 	28	 	
 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Generation sales other than native load	 	 	3	 	 	 	3	 	 	 	1	 	 	 	5	 	 	 	12	 	 	 	1	 	
73	 	Other marketing and trading	 	 	(8	)	 	 	(3	)	 	 	1	 	 	 	(7	)	 	 	(17	)	 	 	(14	)	
 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	4	 	 	 	1	 	 	 	5	 	 	 	7	 	
75	 	Other marketing and trading	 	 	10	 	 	 	10	 	 	 	6	 	 	 	15	 	 	 	41	 	 	 	31	 	
 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Other marketing and trading	 	 	4	 	 	 	4	 	 	 	4	 	 	 	2	 	 	 	14	 	 	 	(22	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total gross margin before income taxes	 	$	21	 	 	$	21	 	 	$	21	 	 	$	17	 	 	$	80	 	 	$	33	 	

			
See Glossary of Terms.	 	Page 5 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Residential	 	 	855,754	 	 	 	852,594	 	 	 	856,353	 	 	 	871,575	 	 	 	859,069	 	 	 	30,703	 	
79	 	Business	 	 	105,502	 	 	 	106,517	 	 	 	107,583	 	 	 	108,860	 	 	 	107,115	 	 	 	4,019	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total	 	 	961,256	 	 	 	959,111	 	 	 	963,936	 	 	 	980,435	 	 	 	966,184	 	 	 	34,722	 	
81	 	Wholesale customers	 	 	81	 	 	 	82	 	 	 	85	 	 	 	77	 	 	 	81	 	 	 	15	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total customers	 	 	961,337	 	 	 	959,193	 	 	 	964,021	 	 	 	980,512	 	 	 	966,265	 	 	 	34,737	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Customer Growth (% over prior year)	 	 	3.4	%	 	 	3.8	%	 	 	3.9	%	 	 	3.9	%	 	 	3.7	%	 	 	0.4	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Residential	 	 	2,371	 	 	 	2,762	 	 	 	4,231	 	 	 	2,340	 	 	 	11,704	 	 	 	825	 	
85	 	Business	 	 	2,998	 	 	 	3,616	 	 	 	4,005	 	 	 	3,252	 	 	 	13,870	 	 	 	467	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	5,369	 	 	 	6,378	 	 	 	8,236	 	 	 	5,592	 	 	 	25,574	 	 	 	1,292	 	

 	 	RETAIL USAGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
87	 	Residential	 	 	2,816	 	 	 	3,193	 	 	 	4,704	 	 	 	2,717	 	 	 	13,418	 	 	 	(39	)	
88	 	Business	 	 	28,919	 	 	 	33,816	 	 	 	36,595	 	 	 	29,726	 	 	 	129,392	 	 	 	(1,137	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Residential	 	 	2,770	 	 	 	3,240	 	 	 	4,941	 	 	 	2,686	 	 	 	13,624	 	 	 	491	 	
90	 	Business	 	 	28,422	 	 	 	33,944	 	 	 	37,227	 	 	 	29,871	 	 	 	129,495	 	 	 	(511	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	System peak demand	 	 	3,979	 	 	 	5,608	 	 	 	6,402	 	 	 	4,432	 	 	 	6,402	 	 	 	70	 	

			
See Glossary of Terms.	 	Page 6 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Nuclear	 	 	2,148	 	 	 	1,860	 	 	 	2,364	 	 	 	1,812	 	 	 	8,184	 	 	 	(131	)	
93	 	Coal	 	 	2,887	 	 	 	3,035	 	 	 	3,417	 	 	 	3,327	 	 	 	12,666	 	 	 	1,300	 	
94	 	Gas, oil and other	 	 	367	 	 	 	1,339	 	 	 	2,547	 	 	 	1,074	 	 	 	5,327	 	 	 	(764	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Total	 	 	5,402	 	 	 	6,234	 	 	 	8,328	 	 	 	6,213	 	 	 	26,177	 	 	 	405	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Firm load	 	 	701	 	 	 	1,532	 	 	 	1,068	 	 	 	1,024	 	 	 	4,325	 	 	 	1,214	 	
97	 	Marketing and trading	 	 	5,506	 	 	 	7,167	 	 	 	9,301	 	 	 	8,218	 	 	 	30,192	 	 	 	2,443	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
98	 	Total	 	 	6,207	 	 	 	8,699	 	 	 	10,369	 	 	 	9,242	 	 	 	34,517	 	 	 	3,657	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total energy sources	 	 	11,609	 	 	 	14,933	 	 	 	18,697	 	 	 	15,455	 	 	 	60,694	 	 	 	4,062	 	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Nuclear	 	 	88	%	 	 	77	%	 	 	96	%	 	 	74	%	 	 	84	%	 	 	(3	)%	
101	 	Coal	 	 	77	%	 	 	81	%	 	 	90	%	 	 	88	%	 	 	84	%	 	 	8	%	
102	 	Gas, oil and other	 	 	5	%	 	 	20	%	 	 	38	%	 	 	12	%	 	 	18	%	 	 	(10	)%	
103	 	System average	 	 	44	%	 	 	50	%	 	 	64	%	 	 	48	%	 	 	51	%	 	 	(4	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Nuclear	 	 	135	 	 	 	233	 	 	 	13	 	 	 	261	 	 	 	161	 	 	 	29	 	
105	 	Coal	 	 	149	 	 	 	153	 	 	 	63	 	 	 	61	 	 	 	107	 	 	 	(163	)	
106	 	Gas	 	 	49	 	 	 	47	 	 	 	39	 	 	 	34	 	 	 	42	 	 	 	(163	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
107	 	Total	 	 	333	 	 	 	433	 	 	 	115	 	 	 	356	 	 	 	310	 	 	 	(296	)	
108	 	Generation Fuel Cost ($/MWh)	 	$	11.17	 	 	$	18.59	 	 	$	20.73	 	 	$	20.90	 	 	$	18.31	 	 	$	0.95	 	

See Glossary of Terms.	Page 7 of 8	

 

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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
109	 	Palo Verde	 	$	43.73	 	 	$	50.36	 	 	$	51.86	 	 	$	51.23	 	 	$	49.30	 	 	$	0.70	 	
110	 	SP15	 	$	48.37	 	 	$	54.73	 	 	$	57.09	 	 	$	60.62	 	 	$	55.20	 	 	$	3.82	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
111	 	Palo Verde	 	$	33.66	 	 	$	33.74	 	 	$	33.37	 	 	$	38.21	 	 	$	34.75	 	 	$	2.72	 	
112	 	SP15	 	$	36.90	 	 	$	37.32	 	 	$	37.18	 	 	$	43.07	 	 	$	38.62	 	 	$	3.96	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
113	 	Cooling degree-days	 	 	273	 	 	 	1,598	 	 	 	2,471	 	 	 	352	 	 	 	4,694	 	 	 	(205	)	
114	 	Heating degree-days	 	 	552	 	 	 	11	 	 	 	—	 	 	 	422	 	 	 	985	 	 	 	249	 	
115	 	Average humidity	 	 	39	%	 	 	19	%	 	 	26	%	 	 	45	%	 	 	32	%	 	 	1	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
116	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	2,540	 	 	 	420	 	 	 	4,531	 	 	 	420	 	
117	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	—	 	 	 	415	 	 	 	972	 	 	 	415	 	
118	 	Average humidity	 	 	43	%	 	 	24	%	 	 	33	%	 	 	40	%	 	 	35	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
119	 	Single-family	 	 	10,045	 	 	 	13,636	 	 	 	14,111	 	 	 	10,325	 	 	 	48,117	 	 	 	8,466	 	
120	 	Multi-family	 	 	1,757	 	 	 	1,324	 	 	 	2,149	 	 	 	2,356	 	 	 	7,586	 	 	 	859	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
121	 	Total	 	 	11,802	 	 	 	14,960	 	 	 	16,260	 	 	 	12,681	 	 	 	55,703	 	 	 	9,325	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
122	 	Payroll job growth (% over prior year)	 	 	2.7	%	 	 	3.3	%	 	 	3.6	%	 	 	3.9	%	 	 	3.4	%	 	 	2.0	%	
123	 	Unemployment rate (%, seasonally adjusted)	 	 	5.2	%	 	 	5.1	%	 	 	4.9	%	 	 	4.6	%	 	 	5.0	%	 	 	(0.7	)%	

 	 	Sources:	
 		
(a)	 	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	

See Glossary of Terms.	Page 8 of 8	

 

EXHIBIT 99.5
Last Updated 4/26/05
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	16	 	 	$	43	 	 	$	100	 	 	$	21	 	 	$	181	 	 	$	(18	)	
2	 	Pinnacle West Energy	 	 	5	 	 	 	2	 	 	 	3	 	 	 	(12	)	 	 	(1	)	 	 	18	 	
3	 	APS Energy Services	 	 	8	 	 	 	5	 	 	 	1	 	 	 	3	 	 	 	16	 	 	 	(12	)	
4	 	SunCor	 	 	1	 	 	 	2	 	 	 	6	 	 	 	36	 	 	 	46	 	 	 	36	 	
5	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(4	)	
6	 	Parent Company	 	 	(12	)	 	 	2	 	 	 	(1	)	 	 	(3	)	 	 	(16	)	 	 	(36	)	

7	 	Income From Continuing Operations	 	 	18	 	 	 	54	 	 	 	109	 	 	 	45	 	 	 	226	 	 	 	(16	)	
 	 	Income From Discontinued Operations —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8a	 	Net of Tax	 	 	7	 	 	 	2	 	 	 	1	 	 	 	4	 	 	 	15	 	 	 	42	 	
 	 	Cumulative Effect of Change in Accounting —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8b	 	     Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	66	 	

9	 	Net Income	 	$	25	 	 	$	56	 	 	$	110	 	 	$	49	 	 	$	241	 	 	$	92	 	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	0.17	 	 	$	0.47	 	 	$	1.10	 	 	$	0.24	 	 	$	1.98	 	 	$	(0.37	)	
11	 	Pinnacle West Energy	 	 	0.06	 	 	 	0.02	 	 	 	0.04	 	 	 	(0.14	)	 	 	(0.01	)	 	 	0.22	 	
12	 	APS Energy Services	 	 	0.08	 	 	 	0.06	 	 	 	0.01	 	 	 	0.03	 	 	 	0.18	 	 	 	(0.15	)	
13	 	SunCor	 	 	0.01	 	 	 	0.02	 	 	 	0.07	 	 	 	0.39	 	 	 	0.50	 	 	 	0.37	 	
14	 	El Dorado	 	 	—	 	 	 	—	 	 	 	(0.01	)	 	 	—	 	 	 	(0.01	)	 	 	(0.06	)	
15	 	Parent Company	 	 	(0.12	)	 	 	0.02	 	 	 	(0.02	)	 	 	(0.03	)	 	 	(0.17	)	 	 	(0.40	)	

16	 	Income From Continuing Operations	 	 	0.20	 	 	 	0.59	 	 	 	1.19	 	 	 	0.49	 	 	 	2.47	 	 	 	(0.39	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income From Discontinued Operations —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17a	 	Net of Tax	 	 	0.08	 	 	 	0.02	 	 	 	0.01	 	 	 	0.05	 	 	 	0.16	 	 	 	0.48	 	
 	 	Cumulative Effect of Change in Accounting —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.77	 	

18	 	Net Income	 	$	0.28	 	 	$	0.61	 	 	$	1.20	 	 	$	0.54	 	 	$	2.63	 	 	$	0.86	 	

19	 	BOOK VALUE PER SHARE	 	$	29.39	 	 	$	29.95	 	 	$	30.68	 	 	$	30.97	 	 	$	30.97	 	 	$	1.57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING — DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Average	 	 	91,359	 	 	 	91,450	 	 	 	91,467	 	 	 	91,403	 	 	 	91,405	 	 	 	6,441	 	
21	 	End of Period	 	 	91,257	 	 	 	91,262	 	 	 	91,271	 	 	 	91,288	 	 	 	91,288	 	 	 	33	 	
Page 1 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Residential	 	$	168	 	 	$	233	 	 	$	363	 	 	$	193	 	 	$	957	 	 	$	51	 	
23	 	Business	 	 	196	 	 	 	251	 	 	 	284	 	 	 	222	 	 	 	953	 	 	 	25	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Total retail	 	 	364	 	 	 	484	 	 	 	647	 	 	 	415	 	 	 	1,910	 	 	 	76	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	5	 	 	 	3	 	 	 	15	 	 	 	6	 	
26	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
27	 	Transmission for others	 	 	6	 	 	 	5	 	 	 	9	 	 	 	7	 	 	 	27	 	 	 	(3	)	
28	 	Other miscellaneous services	 	 	7	 	 	 	6	 	 	 	6	 	 	 	7	 	 	 	26	 	 	 	9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
29	 	Total regulated electricity	 	 	380	 	 	 	499	 	 	 	667	 	 	 	432	 	 	 	1,978	 	 	 	88	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Generation sales other than native load	 	 	44	 	 	 	20	 	 	 	8	 	 	 	16	 	 	 	88	 	 	 	38	 	
31	 	Realized margins on electricity trading (a)	 	 	9	 	 	 	5	 	 	 	2	 	 	 	6	 	 	 	22	 	 	 	(28	)	
32	 	Other delivered electricity (a)	 	 	72	 	 	 	78	 	 	 	84	 	 	 	74	 	 	 	308	 	 	 	140	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total delivered marketing and trading	 	 	125	 	 	 	103	 	 	 	94	 	 	 	96	 	 	 	418	 	 	 	150	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than
electricity (a)	 	 	(2	)	 	 	(2	)	 	 	(5	)	 	 	1	 	 	 	(8	)	 	 	(16	)	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current
period (a)	 	 	(3	)	 	 	1	 	 	 	(3	)	 	 	(1	)	 	 	(11	)	 	 	30	 	
36	 	Change in mark-to-market for future-period deliveries	 	 	(3	)	 	 	(1	)	 	 	(3	)	 	 	(5	)	 	 	(7	)	 	 	(59	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total other marketing and trading	 	 	(8	)	 	 	(2	)	 	 	(11	)	 	 	(5	)	 	 	(26	)	 	 	(45	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Total marketing and trading	 	 	117	 	 	 	101	 	 	 	83	 	 	 	91	 	 	 	392	 	 	 	105	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
39	 	Total electric operating revenues	 	$	497	 	 	$	600	 	 	$	750	 	 	$	523	 	 	$	2,370	 	 	$	193	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the fourth quarter of 2003. Lines 31, 32 and 34 include amounts totaling $1 million of realized gain for the fourth quarter of 2003.	
Page 2 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Residential	 	 	2,104	 	 	 	2,543	 	 	 	4,126	 	 	 	2,374	 	 	 	11,147	 	 	 	703	 	
41	 	Business	 	 	2,849	 	 	 	3,450	 	 	 	3,891	 	 	 	3,226	 	 	 	13,416	 	 	 	499	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total retail	 	 	4,953	 	 	 	5,993	 	 	 	8,017	 	 	 	5,600	 	 	 	24,563	 	 	 	1,202	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Traditional contracts	 	 	130	 	 	 	131	 	 	 	127	 	 	 	112	 	 	 	500	 	 	 	26	 	
44	 	Retail load hedge management	 	 	109	 	 	 	205	 	 	 	446	 	 	 	333	 	 	 	1,093	 	 	 	(1,549	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Total regulated electricity	 	 	5,192	 	 	 	6,329	 	 	 	8,590	 	 	 	6,045	 	 	 	26,156	 	 	 	(321	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Generation sales other than native load	 	 	992	 	 	 	476	 	 	 	203	 	 	 	475	 	 	 	2,146	 	 	 	355	 	
47	 	Electricity trading	 	 	5,074	 	 	 	4,936	 	 	 	5,640	 	 	 	5,655	 	 	 	21,305	 	 	 	3,268	 	
48	 	Other delivered electricity	 	 	1,306	 	 	 	1,386	 	 	 	1,412	 	 	 	1,247	 	 	 	5,351	 	 	 	2,324	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
49	 	Total delivered marketing and trading	 	 	7,372	 	 	 	6,798	 	 	 	7,255	 	 	 	7,377	 	 	 	28,802	 	 	 	5,947	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
50	 	Total electric sales	 	 	12,564	 	 	 	13,127	 	 	 	15,845	 	 	 	13,422	 	 	 	54,958	 	 	 	5,626	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Page 3 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Generation sales other than native load	 	$	3	 	 	$	1	 	 	$	—	 	 	$	3	 	 	$	7	 	 	$	(7	)	
52	 	Other electricity marketing and trading (a)	 	 	24	 	 	 	21	 	 	 	9	 	 	 	12	 	 	 	66	 	 	 	(33	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Total electricity	 	 	27	 	 	 	22	 	 	 	9	 	 	 	15	 	 	 	73	 	 	 	(40	)	
54	 	Other commodities (a)	 	 	(2	)	 	 	(2	)	 	 	(5	)	 	 	1	 	 	 	(8	)	 	 	(16	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
55	 	Total realized margin	 	 	25	 	 	 	20	 	 	 	4	 	 	 	16	 	 	 	65	 	 	 	(56	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Electricity (a)	 	 	(5	)	 	 	(2	)	 	 	(3	)	 	 	(2	)	 	 	(14	)	 	 	16	 	
57	 	Other commodities (a)	 	 	2	 	 	 	3	 	 	 	—	 	 	 	1	 	 	 	3	 	 	 	14	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
58	 	Subtotal	 	 	(3	)	 	 	1	 	 	 	(3	)	 	 	(1	)	 	 	(11	)	 	 	30	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total current period effects (b)	 	 	22	 	 	 	21	 	 	 	1	 	 	 	15	 	 	 	54	 	 	 	(26	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
60	 	Electricity	 	 	(6	)	 	 	1	 	 	 	—	 	 	 	(5	)	 	 	(8	)	 	 	(71	)	
61	 	Other commodities	 	 	3	 	 	 	(2	)	 	 	(3	)	 	 	—	 	 	 	1	 	 	 	12	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total future period effects	 	 	(3	)	 	 	(1	)	 	 	(3	)	 	 	(5	)	 	 	(7	)	 	 	(59	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Total gross margin	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Future Marketing and Trading Mark-to-Market Realization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
As of December 31, 2003, Pinnacle West had accumulated net mark-to-market gains of $23 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: 2004, $5 million; 2005, $5 million; 2006, $3 million and thereafter, $10 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 63 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the fourth quarter of 2003. A $2 million realized gain is included in the $12 million on line 52 for the fourth quarter of 2003.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
Page 4 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (continued)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Electricity	 	$	17	 	 	$	21	 	 	$	6	 	 	$	8	 	 	$	52	 	 	$	(95	)	
65	 	Natural gas	 	 	2	 	 	 	3	 	 	 	(5	)	 	 	3	 	 	 	3	 	 	 	9	 	
66	 	Coal	 	 	(1	)	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	—	 	
67	 	Emission allowances	 	 	—	 	 	 	(3	)	 	 	(3	)	 	 	(1	)	 	 	(7	)	 	 	—	 	
68	 	Other	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Total gross margin	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Generation sales other than native load	 	$	(2	)	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(2	)	 	$	(10	)	
71	 	Other marketing and trading	 	 	4	 	 	 	4	 	 	 	(2	)	 	 	(9	)	 	 	(3	)	 	 	(85	)	
 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Generation sales other than native load	 	 	6	 	 	 	1	 	 	 	—	 	 	 	4	 	 	 	11	 	 	 	9	 	
73	 	Other marketing and trading	 	 	—	 	 	 	3	 	 	 	(6	)	 	 	—	 	 	 	(3	)	 	 	(3	)	
 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Generation sales other than native load	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(2	)	 	 	(6	)	
75	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	10	 	 	 	10	 	
 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Other marketing and trading	 	 	12	 	 	 	12	 	 	 	6	 	 	 	6	 	 	 	36	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total gross margin before income taxes	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Page 5 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Residential	 	 	827,937	 	 	 	821,331	 	 	 	824,655	 	 	 	839,539	 	 	 	828,366	 	 	 	26,565	 	
79	 		 	 	101,999	 	 	 	102,601	 	 	 	103,262	 	 	 	104,521	 	 	 	103,096	 	 	 	2,868	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total	 	 	929,936	 	 	 	923,932	 	 	 	927,917	 	 	 	944,060	 	 	 	931,462	 	 	 	29,432	 	
81	 	Wholesale customers	 	 	65	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total customers	 	 	930,001	 	 	 	923,998	 	 	 	927,983	 	 	 	944,126	 	 	 	931,528	 	 	 	29,431	 	

83	 	Customer Growth (% over prior year)	 	 	3.3	%	 	 	3.1	%	 	 	3.2	%	 	 	3.4	%	 	 	3.3	%	 	 	0.2	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Residential	 	 	2,223	 	 	 	2,520	 	 	 	3,872	 	 	 	2,264	 	 	 	10,879	 	 	 	389	 	
85	 		 	 	2,886	 	 	 	3,485	 	 	 	3,858	 	 	 	3,174	 	 	 	13,403	 	 	 	498	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	5,109	 	 	 	6,005	 	 	 	7,730	 	 	 	5,438	 	 	 	24,282	 	 	 	887	 	

 	 	RETAIL USAGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
87	 	Residential	 	 	2,541	 	 	 	3,096	 	 	 	5,004	 	 	 	2,828	 	 	 	13,457	 	 	 	432	 	
88	 		 	 	27,927	 	 	 	33,625	 	 	 	37,677	 	 	 	30,865	 	 	 	130,529	 	 	 	1,288	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Residential	 	 	2,685	 	 	 	3,067	 	 	 	4,695	 	 	 	2,697	 	 	 	13,133	 	 	 	50	 	
90	 		 	 	28,290	 	 	 	33,969	 	 	 	37,360	 	 	 	30,371	 	 	 	130,006	 	 	 	1,251	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	System peak demand	 	 	3,569	 	 	 	5,571	 	 	 	6,332	 	 	 	5,124	 	 	 	6,332	 	 	 	529	 	
Page 6 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Nuclear	 	 	2,306	 	 	 	2,047	 	 	 	2,230	 	 	 	1,732	 	 	 	8,315	 	 	 	(666	)	
93	 	Coal	 	 	2,770	 	 	 	2,824	 	 	 	2,972	 	 	 	2,800	 	 	 	11,366	 	 	 	(690	)	
94	 	Gas, oil and other	 	 	1,288	 	 	 	1,572	 	 	 	2,696	 	 	 	535	 	 	 	6,091	 	 	 	1,722	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Total	 	 	6,364	 	 	 	6,443	 	 	 	7,898	 	 	 	5,067	 	 	 	25,772	 	 	 	366	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Firm load	 	 	(12	)	 	 	606	 	 	 	1,099	 	 	 	1,418	 	 	 	3,111	 	 	 	1,492	 	
97	 	Marketing and trading	 	 	6,489	 	 	 	6,527	 	 	 	7,498	 	 	 	7,235	 	 	 	27,749	 	 	 	4,045	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
98	 	Total	 	 	6,477	 	 	 	7,133	 	 	 	8,597	 	 	 	8,653	 	 	 	30,860	 	 	 	5,537	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total energy sources	 	 	12,841	 	 	 	13,576	 	 	 	16,495	 	 	 	13,720	 	 	 	56,632	 	 	 	5,903	 	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Nuclear	 	 	98	%	 	 	86	%	 	 	93	%	 	 	72	%	 	 	87	%	 	 	(7	)%	
101	 	Coal	 	 	75	%	 	 	75	%	 	 	79	%	 	 	74	%	 	 	76	%	 	 	(4	)%	
102	 	Gas, oil and other	 	 	26	%	 	 	31	%	 	 	44	%	 	 	9	%	 	 	28	%	 	 	1	%	
103	 	System average	 	 	58	%	 	 	59	%	 	 	64	%	 	 	41	%	 	 	55	%	 	 	(8	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Nuclear	 	 	31	 	 	 	136	 	 	 	61	 	 	 	297	 	 	 	131	 	 	 	64	 	
105	 	Coal	 	 	292	 	 	 	254	 	 	 	277	 	 	 	253	 	 	 	269	 	 	 	102	 	
106	 	Gas	 	 	189	 	 	 	148	 	 	 	154	 	 	 	338	 	 	 	205	 	 	 	157	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
107	 	Total	 	 	512	 	 	 	538	 	 	 	492	 	 	 	888	 	 	 	605	 	 	 	323	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
108	 	Generation Fuel Cost ($/MWh)	 	$	15.89	 	 	$	16.80	 	 	$	19.52	 	 	$	15.40	 	 	$	17.36	 	 	$	4.35	 	
Page 7 of 8

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
109	 	Palo Verde	 	$	49.66	 	 	$	48.88	 	 	$	52.88	 	 	$	42.98	 	 	$	48.60	 	 	$	16.32	 	
110	 	SP15	 	$	54.35	 	 	$	50.73	 	 	$	53.54	 	 	$	46.88	 	 	$	51.38	 	 	$	17.16	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
111	 	Palo Verde	 	$	36.09	 	 	$	25.48	 	 	$	36.08	 	 	$	30.48	 	 	$	32.03	 	 	$	12.14	 	
112	 	SP15	 	$	39.70	 	 	$	28.27	 	 	$	37.81	 	 	$	32.85	 	 	$	34.66	 	 	$	12.97	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
113	 	Cooling degree-days	 	 	76	 	 	 	1,550	 	 	 	2,701	 	 	 	572	 	 	 	4,899	 	 	 	24	 	
114	 	Heating degree-days	 	 	349	 	 	 	17	 	 	 	—	 	 	 	370	 	 	 	736	 	 	 	(64	)	
115	 	Average humidity	 	 	44	%	 	 	18	%	 	 	30	%	 	 	34	%	 	 	31	%	 	 	4	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
116	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	2,540	 	 	 	420	 	 	 	4,531	 	 	 	—	 	
117	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	—	 	 	 	415	 	 	 	972	 	 	 	—	 	
118	 	Average humidity	 	 	43	%	 	 	24	%	 	 	33	%	 	 	40	%	 	 	35	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
119	 	Single-family	 	 	8,030	 	 	 	10,613	 	 	 	11,191	 	 	 	9,817	 	 	 	39,651	 	 	 	5,339	 	
120	 	Multi-family	 	 	863	 	 	 	2,053	 	 	 	1,231	 	 	 	2,580	 	 	 	6,727	 	 	 	(347	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
121	 	Total	 	 	8,893	 	 	 	12,666	 	 	 	12,422	 	 	 	12,397	 	 	 	46,378	 	 	 	4,992	 	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
122	 	Payroll job growth (% over prior year)	 	 	1.1	%	 	 	0.9	%	 	 	1.5	%	 	 	2.0	%	 	 	1.4	%	 	 	1.4	%	
123	 	Unemployment rate (%, seasonally adjusted)	 	 	5.8	%	 	 	5.9	%	 	 	5.7	%	 	 	5.3	%	 	 	5.7	%	 	 	(0.5	)%	

 	 	Sources:	
 		
(a)	 	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
Page 8 of 8

EXHIBIT 99.6
Last Updated 4/26/05
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	32	 	 	$	64	 	 	$	87	 	 	$	16	 	 	$	199	 	 	$	(82	)	
2	 	Pinnacle West Energy	 	 	1	 	 	 	1	 	 	 	10	 	 	 	(31	)	 	 	(19	)	 	 	(37	)	
3	 	APS Energy Services	 	 	2	 	 	 	11	 	 	 	7	 	 	 	8	 	 	 	28	 	 	 	38	 	
4	 	SunCor	 	 	1	 	 	 	2	 	 	 	(1	)	 	 	8	 	 	 	10	 	 	 	7	 	
5	 	El Dorado	 	 	—	 	 	 	(3	)	 	 	(2	)	 	 	9	 	 	 	4	 	 	 	4	 	
6	 	Parent Company	 	 	17	 	 	 	(6	)	 	 	8	 	 	 	1	 	 	 	20	 	 	 	(15	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
7	 	Income From Continuing Operations	 	 	53	 	 	 	69	 	 	 	109	 	 	 	11	 	 	 	242	 	 	 	(85	)	
 	 	Income From Discontinued Operations —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8a	 	Net of Tax	 	 	1	 	 	 	6	 	 	 	(8	)	 	 	(26	)	 	 	(27	)	 	 	(27	)	
 	 	Cumulative Effect of Change in Accounting —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(66	)	 	 	(66	)	 	 	(51	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
9	 	Net Income	 	$	54	 	 	$	75	 	 	$	101	 	 	$	(81	)	 	$	149	 	 	$	(163	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	0.37	 	 	$	0.76	 	 	$	1.02	 	 	$	0.19	 	 	$	2.35	 	 	$	(0.95	)	
11	 	Pinnacle West Energy	 	 	0.01	 	 	 	0.01	 	 	 	0.12	 	 	 	(0.37	)	 	 	(0.23	)	 	 	(0.44	)	
12	 	APS Energy Services	 	 	0.03	 	 	 	0.13	 	 	 	0.08	 	 	 	0.09	 	 	 	0.33	 	 	 	0.45	 	
13	 	SunCor	 	 	0.02	 	 	 	0.02	 	 	 	(0.01	)	 	 	0.09	 	 	 	0.13	 	 	 	0.09	 	
14	 	El Dorado	 	 	—	 	 	 	(0.04	)	 	 	(0.02	)	 	 	0.10	 	 	 	0.05	 	 	 	0.05	 	
15	 	Parent Company	 	 	0.20	 	 	 	(0.07	)	 	 	0.10	 	 	 	0.02	 	 	 	0.23	 	 	 	(0.19	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
16	 	Income From Continuing Operations	 	 	0.63	 	 	 	0.81	 	 	 	1.29	 	 	 	0.12	 	 	 	2.86	 	 	 	(0.99	)	
 	 	Income From Discontinued Operations —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17a	 	Net of Tax	 	 	—	 	 	 	0.08	 	 	 	(0.10	)	 	 	(0.30	)	 	 	(0.32	)	 	 	(0.32	)	
 	 	Cumulative Effect of Change in Accounting —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
17b	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.77	)	 	 	(0.77	)	 	 	(0.60	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
18	 	Net Income	 	$	0.63	 	 	$	0.89	 	 	$	1.19	 	 	$	(0.95	)	 	$	1.77	 	 	$	(1.91	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
19	 	BOOK VALUE PER SHARE COMMON SHARES OUTSTANDING — DILUTED (Thousands)	 	$	30.06	 	 	$	30.54	 	 	$	31.39	 	 	$	29.40	 	 	$	29.40	 	 	$	(0.06	)	
20	 	Average	 	 	84,884	 	 	 	84,926	 	 	 	84,797	 	 	 	85,302	 	 	 	84,964	 	 	 	34	 	
21	 	End of Period	 	 	84,789	 	 	 	84,768	 	 	 	84,756	 	 	 	91,255	 	 	 	91,255	 	 	 	6,531	 	
Page 1 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	ELECTRIC OPERATING REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	Residential	 	$	171	 	 	$	226	 	 	$	337	 	 	$	172	 	 	$	906	 	 	$	(9	)	
23	 	Business	 	 	195	 	 	 	251	 	 	 	270	 	 	 	212	 	 	 	928	 	 	 	(24	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Total retail	 	 	366	 	 	 	477	 	 	 	607	 	 	 	384	 	 	 	1,834	 	 	 	(33	)	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	Traditional contracts	 	 	2	 	 	 	1	 	 	 	3	 	 	 	3	 	 	 	9	 	 	 	(64	)	
26	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
27	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	6	 	 	 	12	 	 	 	30	 	 	 	4	 	
28	 	Other miscellaneous services	 	 	4	 	 	 	2	 	 	 	4	 	 	 	7	 	 	 	17	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
29	 	Total regulated electricity	 	 	378	 	 	 	486	 	 	 	620	 	 	 	406	 	 	 	1,890	 	 	 	(94	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Generation sales other than native load	 	 	8	 	 	 	2	 	 	 	8	 	 	 	32	 	 	 	50	 	 	 	(98	)	
31	 	Realized margins on electricity trading (a)	 	 	28	 	 	 	13	 	 	 	8	 	 	 	1	 	 	 	50	 	 	 	(20	)	
32	 	Other delivered electricity (a)	 	 	21	 	 	 	31	 	 	 	45	 	 	 	71	 	 	 	168	 	 	 	36	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
33	 	Total delivered marketing and trading	 	 	57	 	 	 	46	 	 	 	61	 	 	 	104	 	 	 	268	 	 	 	(82	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	6	 	 	 	8	 	 	 	22	 	
35	 	Prior period mark to market (gains) losses on contracts delivered during current period (a)	 	 	(22	)	 	 	(9	)	 	 	2	 	 	 	(8	)	 	 	(41	)	 	 	(47	)	
36	 	Change in mark to market for future period deliveries	 	 	23	 	 	 	3	 	 	 	23	 	 	 	(1	)	 	 	52	 	 	 	(76	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total other marketing and trading	 	 	5	 	 	 	(5	)	 	 	22	 	 	 	(3	)	 	 	19	 	 	 	(101	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Total marketing and trading	 	 	62	 	 	 	41	 	 	 	83	 	 	 	101	 	 	 	287	 	 	 	(183	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
39	 	Total electric operating revenues	 	$	440	 	 	$	527	 	 	$	703	 	 	$	507	 	 	$	2,177	 	 	$	(277	)	

(a)	 	The net effect on net electric operating revenues from realization of prior period mark to market included in line 39 is zero. Realization of prior period mark to market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior period mark to market gain of $41 million was transferred to “realized” for the total year 2002. Lines 31, 32 and 34 include amounts totaling $41 million of realized gain for the total year 2002.	
Page 2 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Residential	 	 	2,141	 	 	 	2,441	 	 	 	3,806	 	 	 	2,056	 	 	 	10,444	 	 	 	109	 	
41	 	Business	 	 	2,771	 	 	 	3,429	 	 	 	3,681	 	 	 	3,036	 	 	 	12,917	 	 	 	(147	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
42	 	Total retail	 	 	4,912	 	 	 	5,870	 	 	 	7,487	 	 	 	5,092	 	 	 	23,361	 	 	 	(38	)	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	Traditional contracts	 	 	71	 	 	 	121	 	 	 	142	 	 	 	140	 	 	 	474	 	 	 	(739	)	
44	 	Retail load hedge management	 	 	158	 	 	 	230	 	 	 	1,958	 	 	 	296	 	 	 	2,642	 	 	 	(398	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Total regulated electricity	 	 	5,141	 	 	 	6,221	 	 	 	9,587	 	 	 	5,528	 	 	 	26,477	 	 	 	(1,175	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Generation sales other than native load	 	 	376	 	 	 	73	 	 	 	291	 	 	 	1,051	 	 	 	1,791	 	 	 	403	 	
47	 	Electricity trading	 	 	3,410	 	 	 	3,852	 	 	 	6,120	 	 	 	4,655	 	 	 	18,037	 	 	 	4,450	 	
48	 	Other delivered electricity	 	 	426	 	 	 	518	 	 	 	693	 	 	 	1,390	 	 	 	3,027	 	 	 	2,001	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
49	 	Total delivered marketing and trading	 	 	4,212	 	 	 	4,443	 	 	 	7,104	 	 	 	7,096	 	 	 	22,855	 	 	 	6,854	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
50	 	Total electric sales	 	 	9,353	 	 	 	10,664	 	 	 	16,691	 	 	 	12,624	 	 	 	49,332	 	 	 	5,679	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Page 3 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PRETAX GROSS MARGIN ANALYSIS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark To Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	Generation sales other than native load	 	$	2	 	 	$	 	 	 	$	3	 	 	$	9	 	 	$	14	 	 	$	(66	)	
52	 	Other electricity marketing and trading (a)	 	 	33	 	 	 	24	 	 	 	19	 	 	 	23	 	 	 	99	 	 	 	(18	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Total electricity	 	 	35	 	 	 	24	 	 	 	22	 	 	 	32	 	 	 	113	 	 	 	(84	)	
54	 	Other commodities (a)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	6	 	 	 	8	 	 	 	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
55	 	Total realized margin	 	 	39	 	 	 	25	 	 	 	19	 	 	 	38	 	 	 	121	 	 	 	(62	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Prior period mark to market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Electricity (a)	 	 	(16	)	 	 	(9	)	 	 	(4	)	 	 	(4	)	 	 	(30	)	 	 	(19	)	
57	 	Other commodities (a)	 	 	(6	)	 	 	 	 	 	 	6	 	 	 	(4	)	 	 	(11	)	 	 	(36	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
58	 	Subtotal	 	 	(22	)	 	 	(9	)	 	 	2	 	 	 	(8	)	 	 	(41	)	 	 	(47	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
59	 	Total current period effects (b)	 	 	17	 	 	 	16	 	 	 	21	 	 	 	30	 	 	 	80	 	 	 	(109	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Change in mark to market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
60	 	Electricity	 	 	25	 	 	 	10	 	 	 	25	 	 	 	6	 	 	 	63	 	 	 	(83	)	
61	 	Other commodities	 	 	(2	)	 	 	(7	)	 	 	(2	)	 	 	(7	)	 	 	(11	)	 	 	7	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total future period effects	 	 	23	 	 	 	3	 	 	 	23	 	 	 	(1	)	 	 	52	 	 	 	(76	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Total gross margin	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Future Marketing and Trading Mark to Market Realization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

 	 	As of December 31, 2002, Pinnacle West had accumulated mark to net market gains of $41 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2003, $4 million; 2004, $10 million; 2005 and thereafter, $27 million.	
 		
(a)	 	The net effect on pretax gross margin from realization of prior period mark to market included in line 59 and in line 63 is zero. Realization of prior period mark to market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior period mark to market gain of $30 million was transferred to “realized” for the total year 2002. A $30 million realized gain is included in the $99 million on line 52 for total year 2002.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra year mark to market eliminations.	
Page 4 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PRETAX GROSS MARGIN ANALYSIS (continued)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
64	 	Electricity	 	$	45	 	 	$	25	 	 	$	43	 	 	$	34	 	 	$	147	 	 	$	(181	)	
65	 	Natural gas	 	 	(5	)	 	 	1	 	 	 	3	 	 	 	(5	)	 	 	(6	)	 	 	2	 	
66	 	Coal	 	 	(1	)	 	 	(2	)	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	(9	)	
67	 	Emission allowances	 	 	1	 	 	 	(5	)	 	 	(3	)	 	 	—	 	 	 	(7	)	 	 	3	 	
68	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Total gross margin	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
70	 	Generation sales other than native load	 	$	1	 	 	$	—	 	 	$	2	 	 	$	5	 	 	$	8	 	 	$	8	 	
71	 	Other marketing and trading	 	 	34	 	 	 	9	 	 	 	30	 	 	 	9	 	 	 	82	 	 	 	4	 	
 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Generation sales other than native load	 	 	1	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	2	 	 	 	(77	)	
73	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(156	)	
 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	4	 	 	 	4	 	
75	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	Other marketing and trading	 	 	4	 	 	 	10	 	 	 	11	 	 	 	11	 	 	 	36	 	 	 	32	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Total gross margin before income taxes	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Page 5 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
78	 	Residential	 	 	801,000	 	 	 	795,681	 	 	 	798,590	 	 	 	811,930	 	 	 	801,801	 	 	 	25,462	 	
79	 	Business	 	 	99,335	 	 	 	100,096	 	 	 	100,318	 	 	 	101,177	 	 	 	100,228	 	 	 	2,030	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total	 	 	900,335	 	 	 	895,777	 	 	 	898,908	 	 	 	913,107	 	 	 	902,029	 	 	 	27,492	 	
81	 	Wholesale customers	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	1	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
82	 	Total customers	 	 	900,402	 	 	 	895,844	 	 	 	898,975	 	 	 	913,174	 	 	 	902,096	 	 	 	27,493	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Customer Growth (% over prior year)	 	 	3.2	%	 	 	3.2	%	 	 	3.1	%	 	 	3.2	%	 	 	3.1	%	 	 	(0.5	)%	
 	 	RETAIL SALES (GWH) —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Residential	 	 	2,148	 	 	 	2,461	 	 	 	3,746	 	 	 	2,135	 	 	 	10,490	 	 	 	641	 	
85	 	Business	 	 	2,776	 	 	 	3,410	 	 	 	3,696	 	 	 	3,024	 	 	 	12,905	 	 	 	86	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
86	 	Total	 	 	4,924	 	 	 	5,871	 	 	 	7,441	 	 	 	5,159	 	 	 	23,395	 	 	 	727	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
87	 	Residential	 	 	2,673	 	 	 	3,068	 	 	 	4,766	 	 	 	2,532	 	 	 	13,025	 	 	 	(287	)	
88	 	Business	 	 	27,896	 	 	 	34,258	 	 	 	36,691	 	 	 	30,011	 	 	 	129,241	 	 	 	(4,384	)	
 	 	RETAIL USAGE —	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Residential	 	 	2,681	 	 	 	3,093	 	 	 	4,690	 	 	 	2,630	 	 	 	13,083	 	 	 	396	 	
90	 	Business	 	 	27,943	 	 	 	34,065	 	 	 	36,839	 	 	 	29,885	 	 	 	128,754	 	 	 	(1,788	)	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
91	 	System peak demand	 	 	3,921	 	 	 	5,425	 	 	 	5,803	 	 	 	3,828	 	 	 	5,803	 	 	 	116	 	
Page 6 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Nuclear	 	 	2,257	 	 	 	2,242	 	 	 	2,387	 	 	 	2,095	 	 	 	8,981	 	 	 	596	 	
93	 	Coal	 	 	2,890	 	 	 	2,703	 	 	 	3,280	 	 	 	3,183	 	 	 	12,056	 	 	 	(516	)	
94	 	Gas, oil and other	 	 	337	 	 	 	659	 	 	 	1,918	 	 	 	1,455	 	 	 	4,369	 	 	 	375	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Total	 	 	5,484	 	 	 	5,604	 	 	 	7,585	 	 	 	6,733	 	 	 	25,406	 	 	 	455	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
96	 	Firm load	 	 	70	 	 	 	846	 	 	 	859	 	 	 	(157	)	 	 	1,619	 	 	 	(1,342	)	
97	 	Marketing and trading	 	 	3,993	 	 	 	4,599	 	 	 	8,771	 	 	 	6,340	 	 	 	23,704	 	 	 	6,051	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
98	 	Total	 	 	4,063	 	 	 	5,445	 	 	 	9,630	 	 	 	6,183	 	 	 	25,323	 	 	 	4,709	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
99	 	Total energy sources	 	 	9,547	 	 	 	11,049	 	 	 	17,215	 	 	 	12,916	 	 	 	50,729	 	 	 	5,164	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Nuclear	 	 	96	%	 	 	95	%	 	 	100	%	 	 	87	%	 	 	94	%	 	 	6	%	
101	 	Coal	 	 	78	%	 	 	72	%	 	 	87	%	 	 	84	%	 	 	80	%	 	 	(4	)%	
102	 	Gas, oil and other	 	 	12	%	 	 	20	%	 	 	38	%	 	 	29	%	 	 	27	%	 	 	(10	)%	
103	 	System average	 	 	62	%	 	 	62	%	 	 	69	%	 	 	60	%	 	 	63	%	 	 	(7	)%	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
104	 	Nuclear	 	 	62	 	 	 	66	 	 	 	12	 	 	 	129	 	 	 	67	 	 	 	(60	)	
105	 	Coal	 	 	184	 	 	 	279	 	 	 	88	 	 	 	116	 	 	 	167	 	 	 	—	 	
106	 	Gas	 	 	12	 	 	 	18	 	 	 	106	 	 	 	54	 	 	 	48	 	 	 	16	 	
107	 	Total	 	 	258	 	 	 	363	 	 	 	206	 	 	 	299	 	 	 	282	 	 	 	(44	)	
108	 	Generation Fuel Cost ($/MWh)	 	$	11.57	 	 	$	11.89	 	 	$	14.84	 	 	$	13.05	 	 	$	13.01	 	 	$	(3.21	)	
Page 7 of 8

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year To Date	 	 	vs Prior YTD	 	
 	 	ENERGY MARKET
INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
109	 	Palo Verde	 	$	26.86	 	 	$	30.65	 	 	$	35.45	 	 	$	36.18	 	 	$	32.28	 	 	$	(86.13	)	
110	 	SP15	 	$	28.46	 	 	$	31.51	 	 	$	35.55	 	 	$	41.35	 	 	$	34.22	 	 	$	(85.77	)	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
111	 	Palo Verde	 	$	22.17	 	 	$	14.10	 	 	$	18.21	 	 	$	25.09	 	 	$	19.89	 	 	$	(41.68	)	
112	 	SP15	 	$	22.76	 	 	$	15.95	 	 	$	19.54	 	 	$	28.52	 	 	$	21.69	 	 	$	(51.79	)	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
113	 	Cooling degree-days	 	 	89	 	 	 	1,741	 	 	 	2,647	 	 	 	398	 	 	 	4,875	 	 	 	(247	)	
114	 	Heating degree-days	 	 	472	 	 	 	—	 	 	 	—	 	 	 	328	 	 	 	800	 	 	 	(360	)	
115	 	Average humidity	 	 	28	%	 	 	16	%	 	 	27	%	 	 	38	%	 	 	27	%	 	 	(9	)%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
116	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	2,540	 	 	 	420	 	 	 	4,531	 	 	 	—	 	
117	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	—	 	 	 	415	 	 	 	972	 	 	 	—	 	
118	 	Average humidity	 	 	43	%	 	 	24	%	 	 	33	%	 	 	40	%	 	 	35	%	 	 	0	%	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
119	 	Single-family	 	 	7,682	 	 	 	9,666	 	 	 	8,689	 	 	 	8,275	 	 	 	34,312	 	 	 	1,447	 	
120	 	Multi-family	 	 	1,249	 	 	 	2,005	 	 	 	2,662	 	 	 	1,158	 	 	 	7,074	 	 	 	(1,930	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
121	 	Total	 	 	8,931	 	 	 	11,671	 	 	 	11,351	 	 	 	9,433	 	 	 	41,386	 	 	 	(483	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
122	 	Payroll job growth (% over prior year)	 	 	(0.8	)%	 	 	(0.2	)%	 	 	(0.1	)%	 	 	1.1	%	 	 	0.0	%	 	 	(1.0	)%	
123	 	Unemployment rate (%, seasonally adjusted)	 	 	6.3	%	 	 	6.2	%	 	 	6.1	%	 	 	6.0	%	 	 	6.2	%	 	 	1.5	%	

 	 	Sources:	

(a)  	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 	
(b)  	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 	
(c)  	Arizona Department of Economic Security	
Page 8 of 8

 

EXHIBIT 99.7
LAST UPDATE: 4/26/05
Pinnacle West Capital Corporation
Earnings Variance Explanations
for Periods Ended March 31, 2005 and 2004
     This discussion explains the changes in our consolidated earnings for the three-month periods ended March 31, 2005 and 2004. Condensed Consolidated Statements of Income for the three months ended March 31, 2005 and 2004 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2005 on or before May 10, 2005. Additional operating and financial statistics and a glossary of terms are available on our website ( www.pinnaclewest.com ).
EARNINGS CONTRIBUTION BY BUSINESS SEGMENT
     We have three principal business segments (determined by services and the regulatory environment):

 	•  	our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to “Native Load” customers) and related activities and includes electricity generation, transmission and distribution;	
 	
 	•  	our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services’ commodity-related energy services; and	
 	
 	•  	our real estate segment, which consists of SunCor’s real estate development and investment activities.	
     The following table summarizes net income for the three months ended March 31, 2005 and the comparable prior-year period (dollars in millions): 

 	 	2005	 	 	2004	 	
Regulated electricity	 	$	13	 	 	$	18	 	
Marketing and trading	 	 	1	 	 	 	10	 	
Real estate	 	 	9	 	 	 	2	 	
Other	 	 	1	 	 	 	1	 	
 	 	 	 	 	 	 	
Net income	 	$	24	 	 	$	31	 	

 

General
     Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to electric operating revenues less purchased power and fuel costs. “Gross margin” is a “non-GAAP financial measure,” as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America. We view gross margin as an important performance measure of the core profitability of our operations. This measure is a key component of our internal financial reporting and is used by our management in analyzing our business segments. We believe that investors benefit from having access to the same financial measures that our management uses. In addition, we have reclassified certain prior period amounts to conform to our current period presentation.
Operating Results – Three-month period ended March 31, 2005 compared with the three-month period ended March 31, 2004
     Our consolidated net income for the three months ended March 31, 2005 was $24 million compared with $31 million for the prior-year period. The $7 million decrease in the period-to-period comparison reflected the following changes in earnings by segment:

 	•  	Regulated Electricity Segment – Net income decreased approximately $5 million primarily due to higher operations and maintenance costs primarily related to customer service, generation and benefit costs; lower other income, net of other expense, primarily due to gains on asset sales in the prior year period; increased property taxes due to increased plant in service; and the effects of milder weather on retail sales. These negative factors were partially offset by the absence of regulatory asset amortization; higher retail sales volumes due to customer growth and usage; decreased purchased power and fuel costs due to lower hedged gas and power prices; and lower replacement power costs due to fewer unplanned outages.	
 	
 	•  	Marketing and Trading Segment – Net income decreased approximately $9 million primarily due to increased costs related to the Silverhawk Power Station, which was placed in service in mid-2004 and lower margins on competitive retail sales in California by APS Energy Services.	
 	
 	•  	Real Estate Segment – Net income increased approximately $7 million primarily due to increased land sales.	
2

 

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions). 

 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher retail sales volumes due to customer growth, excluding weather effects	 	$	7	 	 	$	4	 	
Decreased purchased power and fuel costs due to lower hedged gas and power prices	 	 	5	 	 	 	3	 	
Lower replacement power costs due to fewer unplanned outages	 	 	4	 	 	 	3	 	
Effects of weather on retail sales	 	 	(5	)	 	 	(3	)	
 	 	 	 	
Net increase in regulated electricity segment gross margin	 	 	11	 	 	 	7	 	
 	 	 	 	
Marketing and trading segment gross margin:	 	 	 	 	 	 	 	 	
Lower competitive retail unit margins in California by APS Energy Services	 	 	(6	)	 	 	(4	)	
Lower realized margins on wholesale sales primarily due to lower unit margins	 	 	(1	)	 	 	(1	)	
Increase in generation sales other than Native Load due to higher sales volumes	 	 	3	 	 	 	2	 	
 	 	 	 	
Net decrease in marketing and trading segment gross margin	 	 	(4	)	 	 	(3	)	
 	 	 	 	
Net increase in gross margin for regulated electricity and marketing and trading segments	 	 	7	 	 	 	4	 	
Higher real estate segment contribution primarily related to increased land sales	 	 	12	 	 	 	7	 	
Higher operations and maintenance expense primarily related to customer service, generation and benefit costs	 	 	(19	)	 	 	(11	)	
Depreciation and amortization decreases (increases):	 	 	 	 	 	 	 	 	
Absence of regulatory asset amortization	 	 	9	 	 	 	5	 	
Increased delivery and other assets	 	 	(2	)	 	 	(1	)	
Higher property taxes due to increased plant in service	 	 	(5	)	 	 	(3	)	
Lower other income net of other expense primarily due to gain on asset sales and higher interest income in prior-year period	 	 	(9	)	 	 	(5	)	
Miscellaneous items, net	 	 	(1	)	 	 	(3	)	
 	 	 	 	 	 	 	
Net decrease in net income	 	$	(8	)	 	$	(7	)	
 	 	 	 	 	 	 	
     The increase in net costs (primarily depreciation, interest expense, property taxes and operations and maintenance expense, net of gross margin contributions) related to the Silverhawk Power Station, which was placed in service in mid-2004 by Pinnacle West Energy totaled approximately $4 million after income taxes in the three months ended March 31, 2005 compared with the prior-year period.
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $1 million higher for the three months ended March 31, 2005 compared with the prior-year period primarily as a result of:

 	•  	a $13 million increase in retail revenues related to customer growth, excluding weather effects;	
 	
 	•  	a $13 million decrease in retail revenues related to milder weather; and	
 	
 	•  	a $1 million increase due to miscellaneous factors.	
3

 

Marketing and Trading Segment Revenues
     Marketing and trading segment revenues were $29 million higher for the three months ended March 31, 2005 compared with the prior-year period primarily as a result of:

 	•  	a $36 million increase from generation sales other than Native Load primarily due to higher sales volumes, including sales from the Silverhawk Power Station, and higher wholesale market prices;	
 	
 	•  	$1 million of higher energy trading revenues on realized sales of electricity primarily due to higher electricity prices; and	
 	
 	•  	an $8 million decrease from lower competitive retail sales and prices in California by APS Energy Services.	
Real Estate Revenues
     Real estate revenues were $20 million higher for the three months ended March 31, 2005 compared with the prior-year period primarily due to higher land and home sales.
4

 

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

 	 	THREE MONTHS ENDED	 	 	 	 	 	 	 	 	
 	 	MARCH 31,	 	 	Increase (Decrease)	 	 	 	 	 	
 	 	2005	 	 	2004	 	 	Amount	 	 	Percent	 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	416,030	 	 	$	415,464	 	 	$	566	 	 	 	0.1	%	 	 	B	 	
Marketing and trading segment	 	 	116,866	 	 	 	88,383	 	 	 	28,483	 	 	 	32.2	%	 	 	B	 	
Real estate segment	 	 	72,056	 	 	 	51,593	 	 	 	20,463	 	 	 	39.7	%	 	 	B	 	
Other revenues	 	 	10,135	 	 	 	10,905	 	 	 	(770	)	 	 	7.1	%	 	 	W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	615,087	 	 	 	566,345	 	 	 	48,742	 	 	 	8.6	%	 	 	B	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	78,423	 	 	 	88,611	 	 	 	(10,188	)	 	 	11.5	%	 	 	B	 	
Marketing and trading segment purchased power and fuel	 	 	100,641	 	 	 	67,764	 	 	 	32,877	 	 	 	48.5	%	 	 	W	 	
Operations and maintenance	 	 	156,496	 	 	 	137,386	 	 	 	19,110	 	 	 	13.9	%	 	 	W	 	
Real estate segment operations	 	 	56,476	 	 	 	47,690	 	 	 	8,786	 	 	 	18.4	%	 	 	W	 	
Depreciation and amortization	 	 	94,231	 	 	 	101,616	 	 	 	(7,385	)	 	 	7.3	%	 	 	B	 	
Taxes other than income taxes	 	 	35,190	 	 	 	30,330	 	 	 	4,860	 	 	 	16.0	%	 	 	W	 	
Other expenses	 	 	8,374	 	 	 	8,750	 	 	 	(376	)	 	 	4.3	%	 	 	B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	529,831	 	 	 	482,147	 	 	 	47,684	 	 	 	9.9	%	 	 	W	 	

Operating Income	 	 	85,256	 	 	 	84,198	 	 	 	1,058	 	 	 	1.3	%	 	 	B	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	2,603	 	 	 	2,002	 	 	 	601	 	 	 	30.0	%	 	 	B	 	
Other income	 	 	1,744	 	 	 	11,412	 	 	 	(9,668	)	 	 	84.7	%	 	 	W	 	
Other expense	 	 	(5,309	)	 	 	(5,945	)	 	 	636	 	 	 	10.7	%	 	 	B	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	(962	)	 	 	7,469	 	 	 	(8,431	)	 	 	112.9	%	 	 	W	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	49,195	 	 	 	50,319	 	 	 	(1,124	)	 	 	2.2	%	 	 	B	 	
Capitalized interest	 	 	(3,289	)	 	 	(4,911	)	 	 	1,622	 	 	 	33.0	%	 	 	W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	45,906	 	 	 	45,408	 	 	 	498	 	 	 	1.1	%	 	 	W	 	

Income From Continuing Operations Before Income Taxes	 	 	38,388	 	 	 	46,259	 	 	 	(7,871	)	 	 	17.0	%	 	 	W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	14,732	 	 	 	15,468	 	 	 	(736	)	 	 	4.8	%	 	 	B	 	

Income From Continuing Operations	 	 	23,656	 	 	 	30,791	 	 	 	(7,135	)	 	 	23.2	%	 	 	W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Tax Expense	 	 	792	 	 	 	635	 	 	 	157	 	 	 	24.7	%	 	 	B	 	

Net Income	 	$	24,448	 	 	$	31,426	 	 	$	(6,978	)	 	 	22.2	%	 	 	W	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	91,962	 	 	 	91,294	 	 	 	668	 	 	 	0.7	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	92,045	 	 	 	91,376	 	 	 	669	 	 	 	0.7	%	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations — Basic	 	$	0.26	 	 	$	0.34	 	 	$	(0.08	)	 	 	23.5	%	 	 	W	 	
Net Income — Basic	 	$	0.27	 	 	$	0.34	 	 	$	(0.07	)	 	 	20.6	%	 	 	W	 	
Income From Continuing Operations — Diluted	 	$	0.26	 	 	$	0.34	 	 	$	(0.08	)	 	 	23.5	%	 	 	W	 	
Net Income — Diluted	 	$	0.27	 	 	$	0.34	 	 	$	(0.07	)	 	 	20.6	%	 	 	W	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Certain prior-year amounts have been reclassified to conform to the 2005 presentation.
B — Better
W — Worse

 
EXHIBIT 99.8

Last Updated 4/26/05
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Glossary of Terms

Arizona Job Growth	 	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.	
 	 	 	
Building Permits – Metro Phoenix	 	The number of residential dwellings permitted to be built by authorized agencies in Maricopa County, Arizona. Single-family refers to detached buildings intended to be occupied by one family each. Multi-family permits represent the number of units authorized to be built in condominium, townhouse and apartment complexes.	
 	 	 	
Capacity Factor	 	The ratio of the average operating load of an electric power generating unit for a period of time to the capacity rating of the unit during that period.	
 	 	 	
Change in Mark-To-Market Gains (Losses)
For Future-Period Deliveries	 	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.	
 	 	 	
Current Period Effects	 	The net effect of the total revenue or gross margins realized on delivery of commodities in the period being measured, and the amount of prior-period mark-to-market (gains) losses on contracts delivered during period. The net effect of transferring prior-period mark-to-market to realized does not affect total revenues, gross margin or earnings.	
 	 	 	
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.	

 

- 2 - 

Electricity Marketing and Trading – Delivered	 	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.	
 	 	 	
Electricity Spot Prices —Palo Verde – Off-Peak	 	Electricity average daily spot prices at Palo Verde substation during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — Palo Verde – On-Peak	 	Electricity average daily spot prices at Palo Verde substation during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 – Off-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 – On-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Generation Capacity Out of Service and Replaced for Native Load	 	Total capacity required and economic, yet unavailable for retail customers and traditional wholesale contracts due to scheduled or unscheduled outages. Measured in megawatts per day.	
 	 	 	
Generation Sales Other Than Native Load	 	Sales of electricity from generation owned by the company that is over and above the amount required to serve retail customers and traditional wholesale contracts.	
 	 	 	
Generation Production — Coal	 	Amount of net energy produced by coal-fueled generators. Measured in gigawatt-hours.	
Pinnacle West Capital Corporation — Quarterly Consolidated Statistical Summary — Glossary of Terms

 

- 3 -

Generation Production — Gas/Oil/Other	 	Amount of net energy predominately produced by natural gas and oil-fueled generators. A small amount of energy from hydroelectric and solar power plants is also included. Measured in gigawatt-hours.	
 	 	 	
Generation Production — Nuclear	 	Amount of net energy produced by nuclear-fueled generators. Measured in gigawatt-hours.	
 	 	 	
Gigawatt-hour (GWH)	 	A unit of energy equivalent to 1,000 megawatt-hours or 1,000,000 kilowatt-hours.	
 	 	 	
Marketing and Trading Gross Margin – Pretax	 	Revenues from marketing and trading activities (other than retail sales, traditional wholesale sales and retail load hedge management) less the costs of the related commodities, with mark-to-market gains or losses, before income taxes.	
 	 	 	
Marketing and Trading Gross Margin by Commodity — Pretax	 	Marketing and trading gross margin, before income taxes, for generation sales other than native load and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the underlying commodities.	
 	 	 	
Native Load	 	Retail and wholesale sales supplied under traditional cost-based rate regulation.	
 	 	 	
Realized and Mark-to-Market Components	 	Marketing and trading gross margin, before income taxes, for generation sales other than native load 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.	
 	 	 	
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.	
 	 	 	
Megawatt (MW)	 	One million watts.	
 	 	 	
Megawatt-hour (MWh)	 	A unit of energy equivalent to 1,000 kilowatt-hours.	
Pinnacle West Capital Corporation — Quarterly Consolidated Statistical Summary — Glossary of Terms

 

- 4 -

Prior Period Mark-To-Market (Gains) Losses on
Contracts Delivered During Current Period	 	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.	
 	 	 	
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 Margin on Delivered Commodities	 	Marketing and trading gross margin related to electricity and other commodities that were delivered in the then-current period.	
 	 	 	
Retail Customer Growth	 	Percentage growth over the prior year in the number of retail customers.	
 	 	 	
Retail Electricity Usage	 	Total retail sales for a period divided by the average retail customers for the same period. Measured in kilowatt-hours per average customer.	
 	 	 	
Retail Load Hedge Management	 	Wholesale sales to liquidate electricity purchases originally intended to meet firm load during peak times, which purchases were not needed ultimately for firm load. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.	
 	 	 	
Retail Sales	 	Sales of electricity made directly to retail customers or ultimate customers. Residential retail sales are sales to households. Business retail sales include commercial, industrial, irrigation, and streetlighting sales. Measured in gigawatt-hours.	
Pinnacle West Capital Corporation — Quarterly Consolidated Statistical Summary — Glossary of Terms

 

- 5 -

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.	
Pinnacle West Capital Corporation — Quarterly Consolidated Statistical Summary — Glossary of Terms

Exhibit 99.9

 	 	 	 	 	
FOR IMMEDIATE RELEASE	 	April 26, 2005	
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 FIRST QUARTER EARNINGS
SIGNIFICANTLY AHEAD OF PLAN, COMPANY SAYS
Results Reflect Growth in the Company’s Core Business
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended March 31, 2005, of $24.4 million, or $0.27 per diluted share of common stock. This result compares with net income of $31.4 million, or $0.34 per share, for the comparable quarter a year ago.
“While first quarter results were lower than the same period a year ago, they were significantly better than our plan,” said Chairman Bill Post. “Further, they reflect our strong core business performance and the rising demand for electricity in the growing Arizona market.”
Post added that recent approval of the Company’s rate settlement provides a regulatory structure which places all of the company’s Arizona power plants in rate base, while strengthening and clarifying Arizona Public Service’s (APS) responsibility to provide for the energy needs of its customers.
Results for the quarter were positively impacted by higher retail sales at APS due to customer growth of 4 percent (three times the national average); lower replacement power costs attributable to fewer unplanned plant outages; lower gas and power prices; the absence of regulatory asset amortization; and higher earnings at the Company’s real estate subsidiary.
These positive items were more than offset by a number of factors, including a net increase in costs related to placing the Silverhawk Power Station into service in mid-2004; an increase in operating costs primarily related to customer service, generation and benefits costs; the effects of milder weather; lower results from the Company’s competitive retail operations; and increased property taxes.
For more information on Pinnacle West’s operating statistics and earnings, please visit http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/default.html .
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2005 first quarter earnings and recent

 

 	 	 	
PINNACLE WEST 2005 FIRST QUARTER EARNINGS	 	April 26, 2005	
	 	Page 2 of 2	
developments at 11 a.m. (ET) Wednesday, April 27, 2005. The web cast can be accessed at www.pinnaclewest.com/main/pnw/investors/presentations/default.html . To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 5245903.
Pinnacle West is a Phoenix-based company with consolidated assets of approximately $10 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
-30-
This press release may contain forward-looking statements within the meaning of the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, and neither Pinnacle West 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. These forward-looking statements are often identified by words such as “estimate,” “predict,” “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. 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. These factors include, but are not limited to: state and federal regulatory and legislative decisions and actions, including by the FERC; 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 relating to the restructuring; market prices for electricity and natural gas; power plant performance and outages, including 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 purchased power and fuel 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; the uncertainty that current credit ratings will remain 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 amount of required contributions to Pinnacle West’s pension plan and 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.

 

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

 	 	THREE MONTHS ENDED	 	
 	 	MARCH 31,	 	
 	 	2005	 	 	2004	 	
 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	416,030	 	 	$	415,464	 	
Marketing and trading segment	 	 	116,866	 	 	 	88,383	 	
Real estate segment	 	 	72,056	 	 	 	51,593	 	
Other revenues	 	 	10,135	 	 	 	10,905	 	
 	 	 	 	 	 	 	
Total	 	 	615,087	 	 	 	566,345	 	

Operating Expenses	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	78,423	 	 	 	88,611	 	
Marketing and trading segment purchased power and fuel	 	 	100,641	 	 	 	67,764	 	
Operations and maintenance	 	 	156,496	 	 	 	137,386	 	
Real estate segment operations	 	 	56,476	 	 	 	47,690	 	
Depreciation and amortization	 	 	94,231	 	 	 	101,616	 	
Taxes other than income taxes	 	 	35,190	 	 	 	30,330	 	
Other expenses	 	 	8,374	 	 	 	8,750	 	
 	 	 	 	 	 	 	
Total	 	 	529,831	 	 	 	482,147	 	

Operating Income	 	 	85,256	 	 	 	84,198	 	

Other	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	2,603	 	 	 	2,002	 	
Other income	 	 	1,744	 	 	 	11,412	 	
Other expense	 	 	(5,309	)	 	 	(5,945	)	
 	 	 	 	 	 	 	
Total	 	 	(962	)	 	 	7,469	 	

Interest Expense	 	 	 	 	 	 	 	 	
Interest charges	 	 	49,195	 	 	 	50,319	 	
Capitalized interest	 	 	(3,289	)	 	 	(4,911	)	
 	 	 	 	 	 	 	
Total	 	 	45,906	 	 	 	45,408	 	

Income From Continuing Operations Before Income Taxes	 	 	38,388	 	 	 	46,259	 	
 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	14,732	 	 	 	15,468	 	

Income From Continuing Operations	 	 	23,656	 	 	 	30,791	 	
 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations Net of Income Tax Expense	 	 	792	 	 	 	635	 	

Net Income	 	$	24,448	 	 	$	31,426	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	91,962	 	 	 	91,294	 	
 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	92,045	 	 	 	91,376	 	
 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	
Income From Continuing Operations — Basic	 	$	0.26	 	 	$	0.34	 	
Net Income — Basic	 	$	0.27	 	 	$	0.34	 	
Income From Continuing Operations — Diluted	 	$	0.26	 	 	$	0.34	 	
Net Income — Diluted	 	$	0.27	 	 	$	0.34	 	
Certain prior year amounts have been reclassified to conform to the 2005 presentation.

 
Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN (NON-GAAP MEASURE)
(in thousands)

 	 	THREE MONTHS ENDED	 	 	 	 	
 	 	MARCH 31,	 	 	 	 	
 	 	2005	 	 	2004	 	 	Increase (Decrease)	 	
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	85,256	 	 	$	84,198	 	 	$	1,058	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	156,496	 	 	 	137,386	 	 	 	19,110	 	
Real estate segment operations	 	 	56,476	 	 	 	47,690	 	 	 	8,786	 	
Depreciation and amortization	 	 	94,231	 	 	 	101,616	 	 	 	(7,385	)	
Taxes other than income taxes	 	 	35,190	 	 	 	30,330	 	 	 	4,860	 	
Other expenses	 	 	8,374	 	 	 	8,750	 	 	 	(376	)	
Marketing and trading segment purchased power and fuel	 	 	100,641	 	 	 	67,764	 	 	 	32,877	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	72,056	 	 	 	51,593	 	 	 	20,463	 	
Other revenues	 	 	10,135	 	 	 	10,905	 	 	 	(770	)	
Marketing and trading segment revenues	 	 	116,866	 	 	 	88,383	 	 	 	28,483	 	
 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment gross margin	 	$	337,607	 	 	$	326,853	 	 	$	10,754	 	
 	 	 	 	 	 	 	 	 	 	
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	
Operating Income (closest GAAP measure)	 	$	85,256	 	 	$	84,198	 	 	$	1,058	 	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	156,496	 	 	 	137,386	 	 	 	19,110	 	
Real estate segment operations	 	 	56,476	 	 	 	47,690	 	 	 	8,786	 	
Depreciation and amortization	 	 	94,231	 	 	 	101,616	 	 	 	(7,385	)	
Taxes other than income taxes	 	 	35,190	 	 	 	30,330	 	 	 	4,860	 	
Other expenses	 	 	8,374	 	 	 	8,750	 	 	 	(376	)	
Regulated electricity segment purchased power and fuel	 	 	78,423	 	 	 	88,611	 	 	 	(10,188	)	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	72,056	 	 	 	51,593	 	 	 	20,463	 	
Other revenues	 	 	10,135	 	 	 	10,905	 	 	 	(770	)	
Regulated electricity segment revenues	 	 	416,030	 	 	 	415,464	 	 	 	566	 	
 	 	 	 	 	 	 	 	 	 	
Marketing and trading segment gross margin	 	$	16,225	 	 	$	20,619	 	 	$	(4,394	)