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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):    June 30, 2003 
PINNACLE WEST CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)
 	 	 	 	 	
Arizona	 	1-8962	 	86-0512431	
	 		 		
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification Number)	
 	 	 	
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona

(Address of principal executive offices)	 	85072-3999

(Zip Code)	
 	
(602) 250-1000

(Registrant’s telephone number, including area code)	
 	
NONE

(Former name or former address, if changed since last report)	

TABLE OF CONTENTS

									
	Item 7. Financial Statements, Pro Forma Financial Information and Exhibits	
	Item 9. Regulation FD Disclosure (Information furnished pursuant to Item 12. Results of Operations and Financial Condition)	
SIGNATURES	
Index to Exhibits	
Exhibit 99.1	
Exhibit 99.2	
Exhibit 99.3	
Exhibit 99.4	
Exhibit 99.5	
Exhibit 99.6	
Exhibit 99.7	
Exhibit 99.8	
Exhibit 99.9	
Exhibit 99.10	

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Item 7.	 	Financial Statements, Pro Forma Financial Information and Exhibits	
                  (c) Exhibits.

Exhibit	 	 	
No.	 	Description	
	 		
99.1	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	
99.2	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the periods ended June 30, 2003 and 2002.	
 	 	 	
99.3	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
 	 	 	
99.4	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
 	 	 	
99.5	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2001.	
 	 	 	
99.6	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2000.	
 	 	 	
99.7	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 1999.	
 	 	 	
99.8	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended June 30, 2003 and 2002 and condensed consolidated statements of income for the three months, six months and twelve months ended June 30, 2003 and 2002.	
 	 	 	
99.9	 	Glossary of Terms.	
 	 	 	
99.10  	 	Earnings News Release.	

Item 9.	 	Regulation FD Disclosure (Information furnished pursuant to Item 12. Results of Operations and Financial Condition)	
          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. 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

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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. Certain of the Information relates to the Company’s results of operations for its fiscal quarter ended June 30, 2003. This Information is attached hereto as Exhibits 99.2, 99.3, and 99.8. Those exhibits are being furnished, but not filed, under Item 12 of this Report on Form 8-K.
          On July 28, 2003, the Company issued a press release regarding its results of operations for its fiscal quarter ended June 30, 2003. A copy of the press release is attached hereto as Exhibit 99.10. The press release is being furnished, but not filed, under Item 12 of this Report on Form 8-K.
2 

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SIGNATURES
          Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 	 	PINNACLE WEST CAPITAL CORPORATION
(Registrant)	
 	 	 	
Dated: July 25, 2003	 	By: /s/ Barbara M. Gomez	
 	 	
Barbara M. Gomez
Treasurer	
3 

Table of Contents
Index to Exhibits

Exhibit	 	 	
No.	 	Description	
	 		
99.1	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	
99.2	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the periods ended June 30, 2003 and 2002.	
 	 	 	
99.3	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
 	 	 	
99.4	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
 	 	 	
99.5	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2001.	
 	 	 	
99.6	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2000.	
 	 	 	
99.7	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 1999.	
 	 	 	
99.8	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended June 30, 2003 and 2002 and condensed consolidated statements of income for the three months, six months and twelve months ended June 30, 2003 and 2002.	
 	 	 	
99.9	 	Glossary of Terms.	
 	 	 	
99.10  	 	Earnings News Release.	

 

Exhibit 99.1
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002
List of Contents
2003 Second-Quarter Summary
2003 Year-to-Date
2002 by Quarter
2001 by Quarter
2000 by Quarter
1999 by Quarter
Quarters may not sum to totals due to rounding.
The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2002Q3QuarStatsGloss.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
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002
EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)

 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	
 	 	 	 	 		 		
Line	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 		 		 		 		 		 		
1	 	Arizona Public Service	 	$	43	 	 	$	64	 	 	$	(21	)	 	$	59	 	 	$	96	 	 	$	(37	)	
2	 	Pinnacle West Energy	 	 	2	 	 	 	1	 	 	 	1	 	 	 	8	 	 	 	2	 	 	 	6	 	
3	 	APS Energy Services	 	 	5	 	 	 	11	 	 	 	(6	)	 	 	13	 	 	 	13	 	 	 	—	 	
4	 	SunCor	 	 	2	 	 	 	2	 	 	 	—	 	 	 	4	 	 	 	3	 	 	 	1	 	
5	 	El Dorado	 	 	2	 	 	 	(3	)	 	 	5	 	 	 	5	 	 	 	(3	)	 	 	8	 	
6	 	Parent Company	 	 	1	 	 	 	(6	)	 	 	7	 	 	 	(14	)	 	 	11	 	 	 	(25	)	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
7	 	 	Income From Continuing Operations	 	 	55	 	 	 	69	 	 	 	(14	)	 	 	75	 	 	 	122	 	 	 	(47	)	
8a	 	Income From Discontinued Operations -
Net of Tax	 	 	1	 	 	 	6	 	 	 	(5	)	 	 	6	 	 	 	7	 	 	 	(1	)	
8b	 	Cumulative Effect of Change in Accounting -
Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
9	 	 	Net Income	 	$	56	 	 	$	75	 	 	$	(19	)	 	$	81	 	 	$	129	 	 	$	(48	)	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	EARNINGS PER SHARE BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	0.47	 	 	$	0.76	 	 	$	(0.29	)	 	$	0.65	 	 	$	1.13	 	 	$	(0.48	)	
11	 	Pinnacle West Energy	 	 	0.02	 	 	 	0.01	 	 	 	0.01	 	 	 	0.08	 	 	 	0.02	 	 	 	0.06	 	
12	 	APS Energy Services	 	 	0.06	 	 	 	0.13	 	 	 	(0.07	)	 	 	0.14	 	 	 	0.16	 	 	 	(0.02	)	
13	 	SunCor	 	 	0.02	 	 	 	0.02	 	 	 	—	 	 	 	0.04	 	 	 	0.04	 	 	 	—	 	
14	 	El Dorado	 	 	0.02	 	 	 	(0.04	)	 	 	0.06	 	 	 	0.05	 	 	 	(0.04	)	 	 	0.09	 	
15	 	Parent Company	 	 	0.01	 	 	 	(0.07	)	 	 	0.08	 	 	 	(0.14	)	 	 	0.13	 	 	 	(0.27	)	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
16	 	 	Income From Continuing Operations	 	 	0.60	 	 	 	0.81	 	 	 	(0.21	)	 	 	0.82	 	 	 	1.44	 	 	 	(0.62	)	
17a	 	Income From Discontinued Operations -
Net of Tax	 	 	0.01	 	 	 	0.08	 	 	 	(0.07	)	 	 	0.07	 	 	 	0.08	 	 	 	(0.01	)	
17b	 	Cumulative Effect of Change in Accounting -
Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
18	 	 	Net Income	 	$	0.61	 	 	$	0.89	 	 	$	(0.28	)	 	$	0.89	 	 	$	1.52	 	 	$	(0.63	)	
 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
19	BOOK VALUE PER SHARE	 	$	29.95	 	 	$	30.54	 	 	$	(0.59	)	 	$	29.95	 	 	$	30.54	 	 	$	(0.59	)	
 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Average	 	 	91,450	 	 	 	84,926	 	 	 	6,524	 	 	 	91,402	 	 	 	84,910	 	 	 	6,492	 	
21	 	End of Period	 	 	91,262	 	 	 	84,768	 	 	 	6,494	 	 	 	91,262	 	 	 	84,768	 	 	 	6,494	 	

[Additional columns below]
[Continued from above table, first column(s) repeated] 

 	 	 	 	 	12 Mo. Ended June 30	
 	 	 	 	 		
Line	 	 	2003	 	2002	 	Incr (Decr)	
 	 	 		 		 		
1	 	Arizona Public Service	 	$	162	 	 	 	243	 	 	$	(81	)	
2	 	Pinnacle West Energy	 	 	(13	)	 	 	19	 	 	 	(32	)	
3	 	APS Energy Services	 	 	28	 	 	 	11	 	 	 	17	 	
4	 	SunCor	 	 	10	 	 	 	6	 	 	 	4	 	
5	 	El Dorado	 	 	(47	)	 	 	(3	)	 	 	(44	)	
6	 	Parent Company	 	 	20	 	 	 	44	 	 	 	(24	)	
 	 	 	 	 		 	 	 		 	 	 		 	
7	 	 	Income From Continuing Operations	 	 	160	 	 	 	320	 	 	 	(160	)	
8a	 	Income From Discontinued Operations -
Net of Tax	 	 	8	 	 	 	7	 	 	 	1	 	
8b	 	Cumulative Effect of Change in Accounting -
Net of Tax	 	 	(66	)	 	 	(12	)	 	 	(54	)	
 	 	 	 	 		 	 	 		 	 	 		 	
9	 	 	Net Income	 	$	102	 	 	$	315	 	 	$	(213	)	
 	 	 	 	 		 	 	 		 	 	 		 	
 	EARNINGS PER SHARE BY SUBSIDIARY -
DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	
10	 	Arizona Public Service	 	$	1.84	 	 	$	2.86	 	 	$	(1.02	)	
11	 	Pinnacle West Energy	 	 	(0.15	)	 	 	0.22	 	 	 	(0.37	)	
12	 	APS Energy Services	 	 	0.31	 	 	 	0.13	 	 	 	0.18	 	
13	 	SunCor	 	 	0.12	 	 	 	0.07	 	 	 	0.05	 	
14	 	El Dorado	 	 	(0.54	)	 	 	(0.04	)	 	 	(0.50	)	
15	 	Parent Company	 	 	0.22	 	 	 	0.53	 	 	 	(0.31	)	
 	 	 	 	 		 	 	 		 	 	 		 	
16	 	 	Income From Continuing Operations	 	 	1.80	 	 	 	3.77	 	 	 	(1.97	)	
17a	 	Income From Discontinued Operations -
Net of Tax	 	 	0.09	 	 	 	0.09	 	 	 	—	 	
17b	 	Cumulative Effect of Change in Accounting -
Net of Tax	 	 	(0.74	)	 	 	(0.15	)	 	 	(0.59	)	
 	 	 	 	 		 	 	 		 	 	 		 	
18	 	 	Net Income	 	$	1.15	 	 	$	3.71	 	 	$	(2.56	)	
 	 	 	 	 		 	 	 		 	 	 		 	
19	BOOK VALUE PER SHARE	 	$	29.95	 	 	$	30.54	 	 	$	(0.59	)	
 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Average	 	 	88,276	 	 	 	84,888	 	 	 	3,388	 	
21	 	End of Period	 	 	91,262	 	 	 	84,768	 	 	 	6,494	 	

See Glossary of Terms.	 	 	
 	 	Page 2 of 43	

 
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002
ELECTRIC OPERATING REVENUES
(Dollars in Millions)
REGULATED ELECTRICITY SEGMENT

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	
 	 	 	 	 	 		 		
Line	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 		 		 		 		 		 		
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	 	Residential	 	$	233	 	 	$	226	 	 	$	7	 	 	$	401	 	 	$	397	 	 	$	4	 	
23	 	 	Business	 	 	251	 	 	 	251	 	 	 	—	 	 	 	447	 	 	 	446	 	 	 	1	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
24	 	 	 	Total retail	 	 	484	 	 	 	477	 	 	 	7	 	 	 	848	 	 	 	843	 	 	 	5	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	 	Traditional contracts	 	4	 	 	 	1	 	 	 	3	 	 	 	7	 	 	 	3	 	 	 	4	 	
26	 	 	Retail load hedge management	 	 	8	 	 	 	11	 	 	 	(3	)	 	 	13	 	 	 	13	 	 	 	—	 	
27	 	Transmission for others	 	 	5	 	 	 	6	 	 	 	(1	)	 	 	11	 	 	 	12	 	 	 	(1	)	
28	 	Other miscellaneous services	 	 	6	 	 	 	2	 	 	 	4	 	 	 	13	 	 	 	6	 	 	 	7	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
29	 	 	 	Total regulated electricity	 	 	507	 	 	 	497	 	 	 	10	 	 	 	892	 	 	 	877	 	 	 	15	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	 	Generation sales other than native load	 	 	20	 	 	 	2	 	 	 	18	 	 	 	64	 	 	 	10	 	 	 	54	 	
31	 	 	Realized margins on electricity trading	 	 	2	 	 	 	14	 	 	 	(12	)	 	 	7	 	 	 	41	 	 	 	(34	)	
32	 	 	Other delivered electricity (a)	 	 	147	 	 	 	39	 	 	 	108	 	 	 	269	 	 	 	73	 	 	 	196	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
33	 	 	Total delivered marketing and trading	 	 	169	 	 	 	55	 	 	 	114	 	 	 	340	 	 	 	124	 	 	 	216	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	(2	)	 	 	1	 	 	 	(3	)	 	 	(4	)	 	 	5	 	 	 	(9	)	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	1	 	 	 	(8	)	 	 	9	 	 	 	(5	)	 	 	(22	)	 	 	17	 	
36	 	Change in mark-to-market for future-period deliveries	 	 	(1	)	 	 	1	 	 	 	(2	)	 	 	(1	)	 	 	18	 	 	 	(19	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
37	 	Total other marketing and trading	 	 	(2	)	 	 	(6	)	 	 	4	 	 	 	(10	)	 	 	1	 	 	 	(11	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
38	Total marketing and trading	 	 	167	 	 	 	49	 	 	 	118	 	 	 	330	 	 	 	125	 	 	 	205	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
39	Total operating electric revenues	 	$	674	 	 	$	546	 	 	$	128	 	 	$	1,222	 	 	$	1,002	 	 	$	220	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	 	Residential	 	 	2,543	 	 	 	2,441	 	 	 	102	 	 	 	4,647	 	 	 	4,582	 	 	 	65	 	
41	 	 	Business	 	 	3,450	 	 	 	3,429	 	 	 	21	 	 	 	6,299	 	 	 	6,200	 	 	 	99	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
42	 	 	 	Total retail	 	 	5,993	 	 	 	5,870	 	 	 	123	 	 	 	10,946	 	 	 	10,782	 	 	 	164	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	 	Traditional contracts	 	131	 	 	 	121	 	 	 	10	 	 	 	261	 	 	 	192	 	 	 	69	 	
44	 	 	Retail load hedge management	 	 	205	 	 	 	230	 	 	 	(25	)	 	 	314	 	 	 	388	 	 	 	(74	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
45	 	 	 	Total regulated electricity	 	 	6,329	 	 	 	6,221	 	 	 	108	 	 	 	11,521	 	 	 	11,362	 	 	 	159	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	 	Generation sales other than native load	 	476	 	 	 	73	 	 	 	403	 	 	 	1,468	 	 	 	449	 	 	 	1,019	 	
47	 	 	Electricity trading	 	 	3,140	 	 	 	3,596	 	 	 	(456	)	 	 	7,050	 	 	 	6,705	 	 	 	345	 	
48	 	 	Other delivered electricity	 	 	3,004	 	 	 	774	 	 	 	2,230	 	 	 	5,474	 	 	 	1,501	 	 	 	3,973	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
49	 	 	Total delivered marketing and trading	 	 	6,620	 	 	 	4,443	 	 	 	2,177	 	 	 	13,992	 	 	 	8,655	 	 	 	5,337	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
50	Total electric sales	 	 	12,949	 	 	 	10,664	 	 	 	2,285	 	 	 	25,513	 	 	 	20,017	 	 	 	5,496	 	

[Additional columns below]
[Continued from above table, first column(s) repeated] 

 	 	 	 	 	12 Mo. Ended June 30		
 	 	 	 	 	 		
Line	 	 	2003	 	2002	 	Incr (Decr)	
 	 	 		 		 		
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	
22	 	 	Residential	 	$	910	 	 	$	905	 	 	$	5	 	
23	 	 	Business	 	 	929	 	 	 	941	 	 	 	(12	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
24	 	 	 	Total retail	 	 	1,839	 	 	 	1,846	 	 	 	(7	)	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	
25	 	 	Traditional contracts	 	13	 	 	 	(5	)	 	 	18	 	
26	 	 	Retail load hedge management	 	 	123	 	 	 	404	 	 	 	(281	)	
27	 	Transmission for others	 	 	29	 	 	 	29	 	 	 	—	 	
28	 	Other miscellaneous services	 	 	24	 	 	 	13	 	 	 	11	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
29	 	 	 	Total regulated electricity	 	 	2,028	 	 	 	2,287	 	 	 	(259	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	 	Generation sales other than native load	 	 	104	 	 	 	20	 	 	 	84	 	
31	 	 	Realized margins on electricity trading	 	 	15	 	 	 	74	 	 	 	(59	)	
32	 	 	Other delivered electricity (a)	 	 	403	 	 	 	153	 	 	 	250	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
33	 	 	Total delivered marketing and trading	 	 	522	 	 	 	247	 	 	 	275	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	
34	 	Realized margins on delivered commodities other than electricity (a)	 	 	(1	)	 	 	8	 	 	 	(9	)	
35	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(10	)	 	 	(89	)	 	 	79	 	
36	 	Change in mark-to-market for future-period deliveries	 	 	20	 	 	 	118	 	 	 	(98	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
37	 	Total other marketing and trading	 	 	9	 	 	 	37	 	 	 	(28	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
38	Total marketing and trading	 	 	531	 	 	 	284	 	 	 	247	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
39	Total operating electric revenues	 	$	2,559	 	 	$	2,571	 	 	$	(12	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	
 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	 	Residential	 	 	10,509	 	 	 	10,328	 	 	 	181	 	
41	 	 	Business	 	 	13,016	 	 	 	12,995	 	 	 	21	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
42	 	 	 	Total retail	 	 	23,525	 	 	 	23,323	 	 	 	202	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	
43	 	 	Traditional contracts	 	543	 	 	 	238	 	 	 	305	 	
44	 	 	Retail load hedge management	 	 	2,568	 	 	 	2,617	 	 	 	(49	)	
 	 	 	 	 	 		 	 	 		 	 	 		 	
45	 	 	 	Total regulated electricity	 	 	26,636	 	 	 	26,178	 	 	 	458	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	 	Generation sales other than native load	 	2,810	 	 	 	778	 	 	 	2,032	 	
47	 	 	Electricity trading	 	 	17,270	 	 	 	14,086	 	 	 	3,184	 	
48	 	 	Other delivered electricity	 	 	8,112	 	 	 	2,514	 	 	 	5,598	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
49	 	 	Total delivered marketing and trading	 	 	28,192	 	 	 	17,378	 	 	 	10,814	 	
 	 	 	 	 	 		 	 	 		 	 	 		 	
50	Total electric sales	 	 	54,828	 	 	 	43,556	 	 	 	11,272	 	

 	(a)	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2003. Lines 31 and 34 include amounts totaling $1 million of realized losses for the second quarter of 2003.	
 	 	 	
See Glossary of Terms.	 	 	
 	 	Page 3 of 43	

 
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)

 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	 	12 Mo. Ended June 30	
 	 	 	 	 	 		 		 		
Line	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 		 		 		 		 		 		 		 		 		
 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
51	 	 	 	Generation sales other than native load	 	$	1	 	 	$	—	 	 	$	1	 	 	$	4	 	 	$	2	 	 	$	2	 	 	$	16	 	 	$	8	 	 	$	8	 	
52	 	 	 	Other electricity marketing and trading (a)	 	 	21	 	 	 	24	 	 	 	(3	)	 	 	45	 	 	 	57	 	 	 	(12	)	 	 	87	 	 	 	127	 	 	 	(40	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
53	 	 	 	Total electricity	 	 	22	 	 	 	24	 	 	 	(2	)	 	 	49	 	 	 	59	 	 	 	(10	)	 	 	103	 	 	 	135	 	 	 	(32	)	
54	 	 	Other commodities (a)	 	 	(2	)	 	 	1	 	 	 	(3	)	 	 	(4	)	 	 	5	 	 	 	(9	)	 	 	(1	)	 	 	8	 	 	 	(9	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
55	 	 	Total realized margin	 	 	20	 	 	 	25	 	 	 	(5	)	 	 	45	 	 	 	64	 	 	 	(19	)	 	 	102	 	 	 	143	 	 	 	(41	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	 	Electricity (a)	 	 	(2	)	 	 	(9	)	 	 	7	 	 	 	(8	)	 	 	(17	)	 	 	9	 	 	 	(13	)	 	 	(73	)	 	 	60	 	
57	 	 	Other commodities (a)	 	 	3	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	(5	)	 	 	8	 	 	 	3	 	 	 	(9	)	 	 	12	 	
58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(8	)	 	 	8	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
59	 	 	Subtotal	 	 	1	 	 	 	(9	)	 	 	10	 	 	 	(5	)	 	 	(22	)	 	 	17	 	 	 	(10	)	 	 	(90	)	 	 	80	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
60	 	Total current period effects (b)	 	 	21	 	 	 	16	 	 	 	5	 	 	 	40	 	 	 	42	 	 	 	(2	)	 	 	92	 	 	 	53	 	 	 	39	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
61	 	Electricity	 	 	1	 	 	 	10	 	 	 	(9	)	 	 	(4	)	 	 	27	 	 	 	(31	)	 	 	24	 	 	 	129	 	 	 	(105	)	
62	 	Other commodities	 	 	(2	)	 	 	(7	)	 	 	5	 	 	 	3	 	 	 	(10	)	 	 	13	 	 	 	(4	)	 	 	(11	)	 	 	7	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
63	 	Subtotal	 	 	(1	)	 	 	3	 	 	 	(4	)	 	 	(1	)	 	 	17	 	 	 	(18	)	 	 	20	 	 	 	118	 	 	 	(98	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
64	Total gross margin	 	$	20	 	 	$	19	 	 	$	1	 	 	$	39	 	 	$	59	 	 	$	(20	)	 	$	112	 	 	$	171	 	 	$	(59	)	

 	 	FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION	
 		
 	 	As of June 30, 2003, Pinnacle West had accumulated mark-to-market net gains of $35 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: remainder of 2003, $6 million; 2004, $7 million; 2005, $8 million; 2006 and thereafter, $14 million.	

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the second quarter of 2003. A $2 million realized gain is included in the $21 million on line 52 for the second quarter of 2003.	
 		
(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 43	

 
Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)

 	 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	 	12 Mo. Ended June 30	
 	 	 	 	 	 	 		 		 		
Line	 	 	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 	 	 		 		 		 		 		 		 		 		 		
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	21	 	 	$	25	 	 	$	(4	)	 	$	38	 	 	$	70	 	 	$	(32	)	 	$	115	 	 	$	190	 	 	$	(75	)	
 	66	 	 	Natural gas	 	 	3	 	 	 	1	 	 	 	2	 	 	 	5	 	 	 	(4	)	 	 	9	 	 	 	3	 	 	 	2	 	 	 	1	 	
 	67	 	 	Coal	 	 	(1	)	 	 	(2	)	 	 	1	 	 	 	(2	)	 	 	(3	)	 	 	1	 	 	 	(1	)	 	 	(11	)	 	 	10	 	
 	68	 	 	Emission allowances	 	 	(3	)	 	 	(5	)	 	 	2	 	 	 	(3	)	 	 	(4	)	 	 	1	 	 	 	(6	)	 	 	(10	)	 	 	4	 	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	1	 	 	 	1	 	 	 	—	 	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	70	 	 	 	Total Gross Margin	 	$	20	 	 	$	19	 	 	$	1	 	 	$	39	 	 	$	59	 	 	$	(20	)	 	$	112	 	 	$	171	 	 	$	(59	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(2	)	 	$	1	 	 	$	(3	)	 	$	5	 	 	$	1	 	 	$	4	 	
 	72	 	 	 	Other marketing and trading	 	 	4	 	 	 	9	 	 	 	(5	)	 	 	8	 	 	 	43	 	 	 	(35	)	 	 	47	 	 	 	111	 	 	 	(64	)	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	 	Generation sales other than native load	 	 	1	 	 	 	—	 	 	 	1	 	 	 	7	 	 	 	1	 	 	 	6	 	 	 	8	 	 	 	6	 	 	 	2	 	
 	74	 	 	 	Other marketing and trading	 	 	3	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	—	 	 	 	3	 	 	 	3	 	 	 	35	 	 	 	(32	)	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	—	 	 	 	(1	)	 	 	3	 	 	 	—	 	 	 	3	 	
 	76	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	 	Other marketing and trading	 	 	12	 	 	 	10	 	 	 	2	 	 	 	24	 	 	 	14	 	 	 	10	 	 	 	46	 	 	 	18	 	 	 	28	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	78	 	 	Total gross margin before income taxes	 	$	20	 	 	$	19	 	 	$	1	 	 	$	39	 	 	$	59	 	 	$	(20	)	 	$	112	 	 	$	171	 	 	$	(59	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
See Glossary of Terms.
Page 5 of 43 

 
Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002

 	 	 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	
 	 	 	 	 	 	 	 		 		
Line	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 		 		 		 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	821,331	 	 	 	795,681	 	 	 	25,650	 	 	 	824,634	 	 	 	798,341	 	 	 	26,293	 	
 	80	 	 	 	Business	 	 	102,601	 	 	 	100,096	 	 	 	2,505	 	 	 	102,300	 	 	 	99,710	 	 	 	2,590	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	923,932	 	 	 	895,777	 	 	 	28,155	 	 	 	926,934	 	 	 	898,051	 	 	 	28,883	 	
 	82	 	 	Wholesale customers	 	 	66	 	 	 	67	 	 	 	(1	)	 	 	66	 	 	 	67	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	923,998	 	 	 	895,844	 	 	 	28,154	 	 	 	927,000	 	 	 	898,118	 	 	 	28,882	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.1	%	 	 	3.2	%	 	 	(0.1	)%	 	 	3.2	%	 	 	3.2	%	 	 	0.0	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,516	 	 	 	2,443	 	 	 	73	 	 	 	4,751	 	 	 	4,551	 	 	 	200	 	
 	86	 	 	Business	 	 	3,494	 	 	 	3,411	 	 	 	83	 	 	 	6,374	 	 	 	6,166	 	 	 	208	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	6,010	 	 	 	5,854	 	 	 	156	 	 	 	11,125	 	 	 	10,717	 	 	 	408	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	3,096	 	 	 	3,068	 	 	 	28	 	 	 	5,635	 	 	 	5,739	 	 	 	(104	)	
 	89	 	 	Business	 	 	33,625	 	 	 	34,258	 	 	 	(633	)	 	 	61,569	 	 	 	61,839	 	 	 	(270	)	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	3,063	 	 	 	3,071	 	 	 	(8	)	 	 	5,761	 	 	 	5,701	 	 	 	60	 	
 	91	 	 	Business	 	 	34,058	 	 	 	34,075	 	 	 	(17	)	 	 	62,311	 	 	 	61,839	 	 	 	472	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	5,571	 	 	 	5,425	 	 	 	146	 	 	 	5,571	 	 	 	5,425	 	 	 	146	 	
[Additional columns below]
[Continued from above table, first column(s) repeated] 

 	 	 	 	 	 	 	 	12 Mo. Ended June 30	
 	 	 	 	 	 	 	 		
Line	 	 	2003	 	2002	 	Incr (Decr)	
 	 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	814,948	 	 	 	789,096	 	 	 	25,852	 	
 	80	 	 	 	Business	 	 	101,524	 	 	 	99,231	 	 	 	2,293	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	916,472	 	 	 	888,327	 	 	 	28,145	 	
 	82	 	 	Wholesale customers	 	 	66	 	 	 	67	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	916,538	 	 	 	888,394	 	 	 	28,144	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.2	%	 	 	3.3	%	 	 	(0.1	)%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	10,527	 	 	 	9,987	 	 	 	540	 	
 	86	 	 	Business	 	 	13,089	 	 	 	12,683	 	 	 	406	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	23,616	 	 	 	22,670	 	 	 	946	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	12,895	 	 	 	13,088	 	 	 	(193	)	
 	89	 	 	Business	 	 	128,204	 	 	 	130,966	 	 	 	(2,762	)	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	12,918	 	 	 	12,657	 	 	 	261	 	
 	91	 	 	Business	 	 	128,921	 	 	 	127,816	 	 	 	1,105	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	5,803	 	 	 	5,687	 	 	 	116	 	
See Glossary of Terms.
Page 6 of 43 

 
Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002

 	 	 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	
 	 	 	 	 	 	 	 		 		
Line	 	 	 	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,047	 	 	 	2,242	 	 	 	(195	)	 	 	4,353	 	 	 	4,499	 	 	 	(146	)	
 	94	 	 	 	Coal	 	 	2,823	 	 	 	2,703	 	 	 	120	 	 	 	5,593	 	 	 	5,593	 	 	 	—	 	
 	95	 	 	 	Gas, oil and other	 	 	1,572	 	 	 	659	 	 	 	913	 	 	 	2,860	 	 	 	996	 	 	 	1,864	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	6,442	 	 	 	5,604	 	 	 	838	 	 	 	12,806	 	 	 	11,088	 	 	 	1,718	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	606	 	 	 	846	 	 	 	(240	)	 	 	591	 	 	 	916	 	 	 	(325	)	
 	98	 	 	 	Marketing and trading	 	 	6,349	 	 	 	4,599	 	 	 	1,750	 	 	 	12,838	 	 	 	8,592	 	 	 	4,246	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	6,955	 	 	 	5,445	 	 	 	1,510	 	 	 	13,429	 	 	 	9,508	 	 	 	3,921	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	13,397	 	 	 	11,049	 	 	 	2,348	 	 	 	26,235	 	 	 	20,596	 	 	 	5,639	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	86	%	 	 	95	%	 	 	(9	)%	 	 	92	%	 	 	95	%	 	 	(3	)%	
 	102	 	 	 	Coal	 	 	75	%	 	 	72	%	 	 	3	%	 	 	75	%	 	 	75	%	 	 	0	%	
 	103	 	 	 	Gas, oil and other	 	 	31	%	 	 	20	%	 	 	11	%	 	 	29	%	 	 	16	%	 	 	13	%	
 	104	 	 	 	System average	 	 	59	%	 	 	62	%	 	 	(3	)%	 	 	58	%	 	 	57	%	 	 	1	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	15	 	 	 	66	 	 	 	(51	)	 	 	23	 	 	 	64	 	 	 	(41	)	
 	106	 	 	 	Coal	 	 	373	 	 	 	279	 	 	 	94	 	 	 	310	 	 	 	225	 	 	 	85	 	
 	107	 	 	 	Gas	 	 	159	 	 	 	18	 	 	 	141	 	 	 	174	 	 	 	13	 	 	 	161	 	
 	108	 	 	 	 	Total	 	 	547	 	 	 	363	 	 	 	184	 	 	 	507	 	 	 	302	 	 	 	205	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	16.80	 	 	$	11.89	 	 	$	4.91	 	 	$	17.70	 	 	$	11.73	 	 	$	5.97	 	
[Additional columns below]
[Continued from above table, first column(s) repeated]

 	 	 	 	 	 	 	 	12 Mo. Ended June 30	
 	 	 	 	 	 	 	 		
Line	 	 	 	 	 	2003	 	2002	 	Incr (Decr)	
 	 	 	 	 	 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	8,835	 	 	 	8,638	 	 	 	197	 	
 	94	 	 	 	Coal	 	 	12,056	 	 	 	12,019	 	 	 	37	 	
 	95	 	 	 	Gas, oil and other	 	 	6,233	 	 	 	2,727	 	 	 	3,506	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	27,124	 	 	 	23,384	 	 	 	3,740	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	1,293	 	 	 	2,862	 	 	 	(1,569	)	
 	98	 	 	 	Marketing and trading	 	 	27,949	 	 	 	19,214	 	 	 	8,735	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	29,242	 	 	 	22,076	 	 	 	7,166	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	56,366	 	 	 	45,460	 	 	 	10,906	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	93	%	 	 	91	%	 	 	2	%	
 	102	 	 	 	Coal	 	 	80	%	 	 	80	%	 	 	0	%	
 	103	 	 	 	Gas, oil and other	 	 	31	%	 	 	23	%	 	 	8	%	
 	104	 	 	 	System average	 	 	60	%	 	 	64	%	 	 	(4	)%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	47	 	 	 	100	 	 	 	(53	)	
 	106	 	 	 	Coal	 	 	206	 	 	 	181	 	 	 	25	 	
 	107	 	 	 	Gas	 	 	127	 	 	 	31	 	 	 	96	 	
 	108	 	 	 	 	Total	 	 	380	 	 	 	312	 	 	 	68	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	15.32	 	 	$	10.86	 	 	$	4.46	 	
See Glossary of Terms.
Page 7 of 43 

 
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2003 and 2002

 	 	 	 	 	 	 	 	3 Mo. Ended June 30	 	6 Mo. Ended June 30	
 	 	 	 	 	 	 	 		 		
Line	 	 	 	 	 	2003	 	2002	 	Incr (Decr)	 	2003	 	2002	 	Incr (Decr)	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	48.88	 	 	$	30.65	 	 	$	18.23	 	 	$	49.27	 	 	$	28.75	 	 	$	20.52	 	
 	111	 	 	 	 	SP15	 	$	50.73	 	 	$	31.51	 	 	$	19.22	 	 	$	52.54	 	 	$	29.98	 	 	$	22.56	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	25.48	 	 	$	14.10	 	 	$	11.38	 	 	$	30.79	 	 	$	18.13	 	 	$	12.66	 	
 	113	 	 	 	 	SP15	 	$	28.27	 	 	$	15.95	 	 	$	12.32	 	 	$	33.99	 	 	$	19.35	 	 	$	14.64	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	1,550	 	 	 	1,741	 	 	 	(191	)	 	 	1,626	 	 	 	1,830	 	 	 	(204	)	
 	115	 	 	 	Heating degree-days	 	 	17	 	 	 	—	 	 	 	17	 	 	 	366	 	 	 	472	 	 	 	(106	)	
 	116	 	 	 	Average humidity	 	 	18	%	 	 	16	%	 	 	2	%	 	 	31	%	 	 	22	%	 	 	9	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	1,478	 	 	 	1,478	 	 	 	—	 	 	 	1,555	 	 	 	1,555	 	 	 	—	 	
 	118	 	 	 	Heating degree-days	 	 	34	 	 	 	34	 	 	 	—	 	 	 	580	 	 	 	580	 	 	 	—	 	
 	119	 	 	 	Average humidity	 	 	25	%	 	 	25	%	 	 	0	%	 	 	35	%	 	 	35	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	10,065	 	 	 	9,445	 	 	 	620	 	 	 	17,300	 	 	 	16,556	 	 	 	744	 	
 	121	 	 	 	Multi-family	 	 	1,482	 	 	 	1,231	 	 	 	251	 	 	 	2,375	 	 	 	2,481	 	 	 	(106	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	11,547	 	 	 	10,676	 	 	 	871	 	 	 	19,675	 	 	 	19,037	 	 	 	638	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	0.7	%	 	 	(0.5	)%	 	 	1.2	%	 	 	0.8	%	 	 	(0.7	)%	 	 	1.5	%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	5.9	%	 	 	6.2	%	 	 	(0.3	)%	 	 	5.8	%	 	 	6.2	%	 	 	(0.4	)%	
[Additional columns below]
[Continued from above table, first column(s) repeated] 

 	 	 	 	 	 	 	 	12 Mo. Ended June 30	
 	 	 	 	 	 	 	 		
Line	 	 	 	 	 	2003	 	2002	 	Incr (Decr)	
 	 	 	 	 	 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	41.75	 	 	$	33.55	 	 	$	8.20	 	
 	111	 	 	 	 	SP15	 	$	45.16	 	 	$	33.49	 	 	$	11.67	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	26.64	 	 	$	20.46	 	 	$	6.18	 	
 	113	 	 	 	 	SP15	 	$	29.55	 	 	$	22.01	 	 	$	7.54	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	4,671	 	 	 	4,638	 	 	 	33	 	
 	115	 	 	 	Heating degree-days	 	 	694	 	 	 	1,200	 	 	 	(506	)	
 	116	 	 	 	Average humidity	 	 	32	%	 	 	37	%	 	 	(5	)%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	4,407	 	 	 	4,407	 	 	 	—	 	
 	118	 	 	 	Heating degree-days	 	 	1,015	 	 	 	1,015	 	 	 	—	 	
 	119	 	 	 	Average humidity	 	 	36	%	 	 	36	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	35,128	 	 	 	32,321	 	 	 	2,807	 	
 	121	 	 	 	Multi-family	 	 	6,871	 	 	 	6,056	 	 	 	815	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	41,999	 	 	 	38,377	 	 	 	3,622	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	0.6	%	 	 	(0.1	)%	 	 	0.7	%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	6.0	%	 	 	5.6	%	 	 	0.4	%	

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 three month, six month and twelve month ended May 2002 and May 2003.	
See Glossary of Terms.
Page 8 of 43

Exhibit 99.3
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	 	 	 	 	 	 	 	 	 	 	$	59	 	 	$	(37	)	
 	2	 	 	 	Pinnacle West Energy	 	 	5	 	 	 	2	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	6	 	
 	3	 	 	 	APS Energy Services	 	 	8	 	 	 	5	 	 	 	 	 	 	 	 	 	 	 	13	 	 	 	—	 	
 	4	 	 	 	SunCor	 	 	1	 	 	 	2	 	 	 	 	 	 	 	 	 	 	 	4	 	 	 	1	 	
 	5	 	 	 	El Dorado	 	 	3	 	 	 	2	 	 	 	 	 	 	 	 	 	 	 	5	 	 	 	8	 	
 	6	 	 	 	Parent Company	 	 	(13	)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	(14	)	 	 	(25	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	7	 	 	 	 	Income From Continuing Operations	 	 	20	 	 	 	55	 	 	 	 	 	 	 	 	 	 	 	75	 	 	 	(47	)	
 	8	 	 	 	Income From Discontinued Operations -
Net of Tax	 	 	5	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	9	 	 	 	 	Net Income	 	$	25	 	 	$	56	 	 	 	 	 	 	 	 	 	 	$	81	 	 	$	(48	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	EARNINGS PER SHARE BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	 	Arizona Public Service	 	$	0.17	 	 	$	0.47	 	 	 	 	 	 	 	 	 	 	$	0.65	 	 	$	(0.48	)	
 	11	 	 	 	Pinnacle West Energy	 	 	0.06	 	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	0.08	 	 	 	0.06	 	
 	12	 	 	 	APS Energy Services	 	 	0.08	 	 	 	0.06	 	 	 	 	 	 	 	 	 	 	 	0.14	 	 	 	(0.02	)	
 	13	 	 	 	SunCor	 	 	0.01	 	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	0.04	 	 	 	—	 	
 	14	 	 	 	El Dorado	 	 	0.03	 	 	 	0.02	 	 	 	 	 	 	 	 	 	 	 	0.05	 	 	 	0.09	 	
 	15	 	 	 	Parent Company	 	 	(0.13	)	 	 	0.01	 	 	 	 	 	 	 	 	 	 	 	(0.14	)	 	 	(0.27	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	16	 	 	 	 	Income From Continuing Operations	 	 	0.22	 	 	 	0.60	 	 	 	 	 	 	 	 	 	 	 	0.82	 	 	 	(0.62	)	
 	17	 	 	 	Income From Discontinued Operations -
Net of Tax	 	 	0.06	 	 	 	0.01	 	 	 	 	 	 	 	 	 	 	 	0.07	 	 	 	(0.01	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	18	 	 	 	 	Net Income	 	$	0.28	 	 	$	0.61	 	 	 	 	 	 	 	 	 	 	$	0.89	 	 	$	(0.63	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	29.39	 	 	$	29.95	 	 	 	 	 	 	 	 	 	 	$	29.95	 	 	$	(0.59	)	
 	 	 	 	COMMON SHARES OUTSTANDING -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	 	Average	 	 	91,359	 	 	 	91,450	 	 	 	 	 	 	 	 	 	 	 	91,402	 	 	 	6,492	 	
 	21	 	 	 	End of Period	 	 	91,257	 	 	 	91,262	 	 	 	 	 	 	 	 	 	 	 	91,262	 	 	 	6,494	 	
See Glossary of Terms.
Page 9 of 43 

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003 
ELECTRIC OPERATING REVENUES
          (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	 	 	 	Residential	 	$	168	 	 	$	233	 	 	 	 	 	 	 	 	 	 	$	401	 	 	 	4	 	
 	23	 	 	 	 	 	Business	 	 	196	 	 	 	251	 	 	 	 	 	 	 	 	 	 	 	447	 	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	24	 	 	 	 	 	 	Total retail	 	 	364	 	 	 	484	 	 	 	 	 	 	 	 	 	 	 	848	 	 	 	5	 	
 	 	 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	 	 	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	4	 	
 	26	 	 	 	 	 	Retail load hedge management	 	 	5	 	 	 	8	 	 	 	 	 	 	 	 	 	 	 	13	 	 	 	—	 	
 	27	 	 	 	 	Transmission for others	 	 	6	 	 	 	5	 	 	 	 	 	 	 	 	 	 	 	11	 	 	 	(1	)	
 	28	 	 	 	 	Other miscellaneous services	 	 	7	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	13	 	 	 	7	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	29	 	 	 	 	 	 	Total regulated electricity	 	 	385	 	 	 	507	 	 	 	 	 	 	 	 	 	 	 	892	 	 	 	15	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	 	 	 	Generation sales other than native load	 	 	44	 	 	 	20	 	 	 	 	 	 	 	 	 	 	 	64	 	 	 	54	 	
 	31	 	 	 	 	 	Realized margins on electricity trading	 	 	5	 	 	 	2	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	(34	)	
 	32	 	 	 	 	 	Other delivered electricity (a)	 	 	122	 	 	 	147	 	 	 	 	 	 	 	 	 	 	 	269	 	 	 	196	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	33	 	 	 	 	 	Total delivered marketing and trading	 	 	171	 	 	 	169	 	 	 	 	 	 	 	 	 	 	 	340	 	 	 	216	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(2	)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	(4	)	 	 	(9	)	
 	35	 	 	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(3	)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	(5	)	 	 	17	 	
 	36	 	 	 	 	Change in mark-to-market for future-period deliveries	 	 	(3	)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	(19	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	37	 	 	 	 	Total other marketing and trading	 	 	(8	)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	(10	)	 	 	(11	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	38	 	 	Total marketing and trading	 	 	163	 	 	 	167	 	 	 	 	 	 	 	 	 	 	 	330	 	 	 	205	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	39	 	 	Total electric operating revenues	 	$	548	 	 	$	674	 	 	 	 	 	 	 	 	 	 	$	1,222	 	 	$	220	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	 	 	 	Residential	 	 	2,104	 	 	 	2,543	 	 	 	 	 	 	 	 	 	 	 	4,647	 	 	 	65	 	
 	41	 	 	 	 	 	Business	 	 	2,849	 	 	 	3,450	 	 	 	 	 	 	 	 	 	 	 	6,299	 	 	 	99	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	42	 	 	 	 	 	 	Total retail	 	 	4,953	 	 	 	5,993	 	 	 	 	 	 	 	 	 	 	 	10,946	 	 	 	164	 	
 	 	 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	 	 	 	Traditional contracts	 	 	130	 	 	 	131	 	 	 	 	 	 	 	 	 	 	 	261	 	 	 	69	 	
 	44	 	 	 	 	 	Retail load hedge management	 	 	109	 	 	 	205	 	 	 	 	 	 	 	 	 	 	 	314	 	 	 	(74	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	45	 	 	 	 	 	 	Total regulated electricity	 	 	5,192	 	 	 	6,329	 	 	 	 	 	 	 	 	 	 	 	11,521	 	 	 	159	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	 	 	 	Generation sales other than native load	 	 	992	 	 	 	476	 	 	 	 	 	 	 	 	 	 	 	1,468	 	 	 	1,019	 	
 	47	 	 	 	 	 	Electricity trading	 	 	3,910	 	 	 	3,140	 	 	 	 	 	 	 	 	 	 	 	7,050	 	 	 	345	 	
 	48	 	 	 	 	 	Other delivered electricity	 	 	2,470	 	 	 	3,004	 	 	 	 	 	 	 	 	 	 	 	5,474	 	 	 	3,973	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	49	 	 	 	 	 	Total delivered marketing and trading	 	 	7,372	 	 	 	6,620	 	 	 	 	 	 	 	 	 	 	 	13,992	 	 	 	5,337	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	50	 	 	Total electric sales	 	 	12,564	 	 	 	12,949	 	 	 	 	 	 	 	 	 	 	 	25,513	 	 	 	5,496	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2003. Lines 31 and 34 include amounts totaling $1 million of realized losses for the second quarter of 2003.	
See Glossary of Terms.
Page 10 of 43

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003 
MARKETING AND TRADING SEGMENT
      PRETAX GROSS MARGIN ANALYSIS
           (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	 	 	 	Generation sales other than native load	 	$	3	 	 	$	1	 	 	 	 	 	 	 	 	 	 	$	4	 	 	$	2	 	
 	52	 	 	 	 	 	Other electricity marketing and trading (a)	 	 	24	 	 	 	21	 	 	 	 	 	 	 	 	 	 	 	45	 	 	 	(12	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	53	 	 	 	 	 	Total electricity	 	 	27	 	 	 	22	 	 	 	 	 	 	 	 	 	 	 	49	 	 	 	(10	)	
 	54	 	 	 	 	Other commodities (a)	 	 	(2	)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	(4	)	 	 	(9	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	55	 	 	 	 	Total realized margin	 	 	25	 	 	 	20	 	 	 	 	 	 	 	 	 	 	 	45	 	 	 	(19	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	 	 	Electricity (a)	 	 	(5	)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	(8	)	 	 	9	 	
 	57	 	 	 	 	Other commodities (a)	 	 	2	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	8	 	
 	58	 	 	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	59	 	 	 	 	Subtotal	 	 	(3	)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	(5	)	 	 	17	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	60	 	 	 	Total current period effects (b)	 	 	22	 	 	 	21	 	 	 	 	 	 	 	 	 	 	 	40	 	 	 	(2	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	 	Electricity	 	 	(6	)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	(4	)	 	 	(31	)	
 	62	 	 	 	Other commodities	 	 	3	 	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	3	 	 	 	13	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	63	 	 	 	Total future period effects	 	 	(3	)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	(18	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	64	 	 	Total gross margin	 	$	19	 	 	$	20	 	 	 	 	 	 	 	 	 	 	$	39	 	 	$	(20	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION
As of June 30, 2003, Pinnacle West had accumulated mark-to-market net gains of $35 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: remainder of 2003, $6 million; 2004, $7 million; 2005, $8 million; 2006 and thereafter, $14 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the second quarter of 2003. A $2 million realized gain is included in the $21 million on line 52 for the second quarter of 2003.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
See Glossary of Terms.
Page 11 of 43

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003 
MARKETING AND TRADING SEGMENT
      PRETAX GROSS MARGIN ANALYSIS (continued)
          (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 		 		 		 		 		 		
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	17	 	 	$	21	 	 	 	 	 	 	 	 	 	 	$	38	 	 	$	(32	)	
 	66	 	 	Natural gas	 	 	2	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	5	 	 	 	9	 	
 	67	 	 	Coal	 	 	(1	)	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	(2	)	 	 	1	 	
 	68	 	 	Emission allowances	 	 	—	 	 	 	(3	)	 	 	 	 	 	 	 	 	 	 	(3	)	 	 	1	 	
 	69	 	 	Other	 	 	1	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	70	 	 	 	Total gross margin	 	$	19	 	 	$	20	 	 	 	 	 	 	 	 	 	 	$	39	 	 	$	(20	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	 	Generation sales other than native load	 	$	(2	)	 	$	—	 	 	 	 	 	 	 	 	 	 	$	(2	)	 	$	(3	)	
 	72	 	 	 	Other marketing and trading	 	 	4	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	(35	)	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	 	Generation sales other than native load	 	 	6	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	6	 	
 	74	 	 	 	Other marketing and trading	 	 	—	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	3	 	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	 	Generation sales other than native load	 	 	(1	)	 	 	—	 	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	(1	)	
 	76	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	 	Other marketing and trading	 	 	12	 	 	 	12	 	 	 	 	 	 	 	 	 	 	 	24	 	 	 	10	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	78	 	 	Total gross margin before income taxes	 	$	19	 	 	$	20	 	 	 	 	 	 	 	 	 	 	$	39	 	 	$	(20	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
See Glossary of Terms.
Page 12 of 43

 
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	827,937	 	 	 	821,331	 	 	 	 	 	 	 	 	 	 	 	824,634	 	 	 	26,293	 	
 	80	 	 	 	Business	 	 	101,999	 	 	 	102,601	 	 	 	 	 	 	 	 	 	 	 	102,300	 	 	 	2,590	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	929,936	 	 	 	923,932	 	 	 	 	 	 	 	 	 	 	 	926,934	 	 	 	28,883	 	
 	82	 	 	Wholesale customers	 	 	65	 	 	 	66	 	 	 	 	 	 	 	 	 	 	 	66	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	930,001	 	 	 	923,998	 	 	 	 	 	 	 	 	 	 	 	927,000	 	 	 	28,882	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.3	%	 	 	3.1	%	 	 	 	 	 	 	 	 	 	 	3.2	%	 	 	0.0	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,235	 	 	 	2,516	 	 	 	 	 	 	 	 	 	 	 	4,751	 	 	 	200	 	
 	86	 	 	Business	 	 	2,880	 	 	 	3,494	 	 	 	 	 	 	 	 	 	 	 	6,374	 	 	 	208	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	5,115	 	 	 	6,010	 	 	 	 	 	 	 	 	 	 	 	11,125	 	 	 	408	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	       (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,541	 	 	 	3,096	 	 	 	 	 	 	 	 	 	 	 	5,635	 	 	 	(104	)	
 	89	 	 	Business	 	 	27,927	 	 	 	33,625	 	 	 	 	 	 	 	 	 	 	 	61,569	 	 	 	(270	)	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	       (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,700	 	 	 	3,063	 	 	 	 	 	 	 	 	 	 	 	5,761	 	 	 	60	 	
 	91	 	 	Business	 	 	28,236	 	 	 	34,058	 	 	 	 	 	 	 	 	 	 	 	62,311	 	 	 	472	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,569	 	 	 	5,571	 	 	 	 	 	 	 	 	 	 	 	5,571	 	 	 	146	 	
See Glossary of Terms.
Page 13 of 43

 
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,306	 	 	 	2,047	 	 	 	 	 	 	 	 	 	 	 	4,353	 	 	 	(146	)	
 	94	 	 	 	Coal	 	 	2,770	 	 	 	2,823	 	 	 	 	 	 	 	 	 	 	 	5,593	 	 	 	—	 	
 	95	 	 	 	Gas, oil and other	 	 	1,288	 	 	 	1,572	 	 	 	 	 	 	 	 	 	 	 	2,860	 	 	 	1,864	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	6,364	 	 	 	6,442	 	 	 	 	 	 	 	 	 	 	 	12,806	 	 	 	1,718	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	(15	)	 	 	606	 	 	 	 	 	 	 	 	 	 	 	591	 	 	 	(325	)	
 	98	 	 	 	Marketing and trading	 	 	6,489	 	 	 	6,349	 	 	 	 	 	 	 	 	 	 	 	12,838	 	 	 	4,246	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	6,474	 	 	 	6,955	 	 	 	 	 	 	 	 	 	 	 	13,429	 	 	 	3,921	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	12,838	 	 	 	13,397	 	 	 	 	 	 	 	 	 	 	 	26,235	 	 	 	5,639	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	98	%	 	 	86	%	 	 	 	 	 	 	 	 	 	 	92	%	 	 	(3	)%	
 	102	 	 	 	Coal	 	 	75	%	 	 	75	%	 	 	 	 	 	 	 	 	 	 	75	%	 	 	3	%	
 	103	 	 	 	Gas, oil and other	 	 	26	%	 	 	31	%	 	 	 	 	 	 	 	 	 	 	29	%	 	 	13	%	
 	104	 	 	 	System average	 	 	58	%	 	 	59	%	 	 	 	 	 	 	 	 	 	 	58	%	 	 	1	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	31	 	 	 	15	 	 	 	 	 	 	 	 	 	 	 	23	 	 	 	(41	)	
 	106	 	 	 	Coal	 	 	247	 	 	 	373	 	 	 	 	 	 	 	 	 	 	 	310	 	 	 	85	 	
 	107	 	 	 	Gas	 	 	189	 	 	 	159	 	 	 	 	 	 	 	 	 	 	 	174	 	 	 	161	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	108	 	 	 	 	Total	 	 	467	 	 	 	547	 	 	 	 	 	 	 	 	 	 	 	507	 	 	 	204	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	15.89	 	 	$	16.80	 	 	 	 	 	 	 	 	 	 	$	17.70	 	 	$	5.97	 	
See Glossary of Terms.
Page 14 of 43 

 
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	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	49.66	 	 	$	48.88	 	 	 	 	 	 	 	 	 	 	$	49.27	 	 	$	20.52	 	
 	111	 	 	 	 	SP15	 	$	54.35	 	 	$	50.73	 	 	 	 	 	 	 	 	 	 	$	52.54	 	 	$	22.56	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	36.09	 	 	$	25.48	 	 	 	 	 	 	 	 	 	 	$	30.79	 	 	$	12.66	 	
 	113	 	 	 	 	SP15	 	$	39.70	 	 	$	28.27	 	 	 	 	 	 	 	 	 	 	$	33.99	 	 	$	14.64	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	76	 	 	 	1,550	 	 	 	 	 	 	 	 	 	 	 	1,626	 	 	 	(204	)	
 	115	 	 	 	Heating degree-days	 	 	349	 	 	 	17	 	 	 	 	 	 	 	 	 	 	 	366	 	 	 	(106	)	
 	116	 	 	 	Average humidity	 	 	44	%	 	 	18	%	 	 	 	 	 	 	 	 	 	 	31	%	 	 	9	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	77	 	 	 	1,478	 	 	 	 	 	 	 	 	 	 	 	1,555	 	 	 	—	 	
 	118	 	 	 	Heating degree-days	 	 	546	 	 	 	34	 	 	 	 	 	 	 	 	 	 	 	580	 	 	 	—	 	
 	119	 	 	 	Average humidity	 	 	45	%	 	 	25	%	 	 	 	 	 	 	 	 	 	 	35	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	8,030	 	 	 	6,992	 	 	 	 	 	 	 	 	 	 	 	15,022	 	 	 	816	 	
 	121	 	 	 	Multi-family	 	 	863	 	 	 	846	 	 	 	 	 	 	 	 	 	 	 	1,709	 	 	 	(203	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	8,893	 	 	 	7,838	 	 	 	 	 	 	 	 	 	 	 	16,731	 	 	 	613	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	1.0	%	 	 	0.6	%	 	 	 	 	 	 	 	 	 	 	0.8	%	 	 	1.4	%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	5.7	%	 	 	6.0	%	 	 	 	 	 	 	 	 	 	 	5.8	%	 	 	(0.4	)%	

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 May 2003.	
See Glossary of Terms.
Page 15 of 43

 

Exhibit 99.4
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002 
EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 	 		 		 		 		 		 		
 	1	 	 	 	 	Arizona Public Service	 	$	32	 	 	$	64	 	 	$	87	 	 	$	16	 	 	$	199	 	 	$	(82	)	
 	2	 	 	 	 	Pinnacle West Energy	 	 	1	 	 	 	1	 	 	 	10	 	 	 	(31	)	 	 	(19	)	 	 	(37	)	
 	3	 	 	 	 	APS Energy Services	 	 	2	 	 	 	11	 	 	 	7	 	 	 	8	 	 	 	28	 	 	 	38	 	
 	4	 	 	 	 	SunCor	 	 	1	 	 	 	2	 	 	 	(1	)	 	 	8	 	 	 	10	 	 	 	7	 	
 	5	 	 	 	 	El Dorado	 	 	—	 	 	 	(3	)	 	 	(15	)	 	 	(37	)	 	 	(55	)	 	 	(55	)	
 	6	 	 	 	 	Parent Company	 	 	17	 	 	 	(6	)	 	 	13	 	 	 	19	 	 	 	43	 	 	 	8	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	7	 	 	 	 	 	Income From Continuing Operations	 	 	53	 	 	 	69	 	 	 	101	 	 	 	(17	)	 	 	206	 	 	 	(121	)	
 	 	 	 	 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	8	a	 	 	 	Net of Tax	 	 	1	 	 	 	6	 	 	 	—	 	 	 	2	 	 	 	9	 	 	 	9	 	
 	 	 	 	 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	8	b	 	 	 	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	 	 	 	0.11	 	 	 	0.07	 	
 	14	 	 	 	 	El Dorado	 	 	—	 	 	 	(0.04	)	 	 	(0.18	)	 	 	(0.43	)	 	 	(0.65	)	 	 	(0.65	)	
 	15	 	 	 	 	Parent Company	 	 	0.20	 	 	 	(0.07	)	 	 	0.16	 	 	 	0.24	 	 	 	0.51	 	 	 	0.09	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	16	 	 	 	 	 	Income From Continuing Operations	 	 	0.63	 	 	 	0.81	 	 	 	1.19	 	 	 	(0.19	)	 	 	2.42	 	 	 	(1.43	)	
 	 	 	 	 	 	Income From Discontinued Operations -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	17	a	 	 	 	Net of Tax	 	 	—	 	 	 	0.08	 	 	 	—	 	 	 	0.02	 	 	 	0.11	 	 	 	0.11	 	
 	 	 	 	 	 	Cumulative Effect of Change in Accounting -	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	17	b	 	 	 	Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.78	)	 	 	(0.77	)	 	 	(0.60	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	18	 	 	 	 	 	Net Income	 	$	0.63	 	 	$	0.89	 	 	$	1.19	 	 	$	(0.95	)	 	$	1.76	 	 	$	(1.92	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	30.06	 	 	$	30.54	 	 	$	31.39	 	 	$	29.40	 	 	$	29.40	 	 	$	(0.06	)	
 	 	 	 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	 	 	Average	 	 	84,884	 	 	 	84,926	 	 	 	84,797	 	 	 	85,302	 	 	 	84,964	 	 	 	34	 	
 	21	 	 	 	 	End of Period	 	 	84,789	 	 	 	84,768	 	 	 	84,756	 	 	 	91,255	 	 	 	91,255	 	 	 	6,531	 	
 	 	 	
See Glossary of Terms.	 	 	
 	 	 	
 	 	Page 16 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002 
ELECTRIC OPERATING REVENUES
(Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	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	 	 	2	 	 	 	11	 	 	 	99	 	 	 	11	 	 	 	123	 	 	 	(455	)	
 	27	 	 	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	6	 	 	 	12	 	 	 	30	 	 	 	4	 	
 	28	 	 	 	Other miscellaneous services	 	 	4	 	 	 	2	 	 	 	4	 	 	 	7	 	 	 	17	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	29	 	 	 	 	 	Total regulated electricity	 	 	380	 	 	 	497	 	 	 	719	 	 	 	417	 	 	 	2,013	 	 	 	(549	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	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	 	 	27	 	 	 	14	 	 	 	5	 	 	 	3	 	 	 	49	 	 	 	(13	)	
 	32	 	 	 	 	Other delivered electricity (a)	 	 	34	 	 	 	39	 	 	 	53	 	 	 	81	 	 	 	207	 	 	 	(122	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	33	 	 	 	 	Total delivered marketing and trading	 	 	69	 	 	 	55	 	 	 	65	 	 	 	116	 	 	 	306	 	 	 	(233	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	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	)	 	 	(8	)	 	 	3	 	 	 	(8	)	 	 	(40	)	 	 	(39	)	
 	36	 	 	 	Change in mark-to-market for future-period deliveries	 	 	25	 	 	 	1	 	 	 	22	 	 	 	(1	)	 	 	52	 	 	 	(75	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	37	 	 	 	Total other marketing and trading	 	 	7	 	 	 	(6	)	 	 	22	 	 	 	(3	)	 	 	20	 	 	 	(92	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	38	 	 	Total marketing and trading	 	 	76	 	 	 	49	 	 	 	87	 	 	 	113	 	 	 	326	 	 	 	(325	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	39	 	 	Total electric operating revenues	 	$	456	 	 	$	546	 	 	$	806	 	 	$	530	 	 	$	2,339	 	 	$	(874	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	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	 	 	3,109	 	 	 	3,596	 	 	 	5,908	 	 	 	4,312	 	 	 	16,925	 	 	 	4,894	 	
 	48	 	 	 	 	Other delivered electricity	 	 	727	 	 	 	774	 	 	 	905	 	 	 	1,733	 	 	 	4,139	 	 	 	1,557	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	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	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows (a) that a prior-period mark-to-market gain of $40 million was transferred to “realized” for the total year of 2002. Lines 31 and 34 include amounts totaling $40 million of realized revenues for the total year of 2002.	
 	 	 	
See Glossary of Terms.	 	 	
 	 	 	
 	 	Page 17 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002 
MARKETING AND TRADING SEGMENT
      PRETAX GROSS MARGIN ANALYSIS
        (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	 	 	 	Generation sales other than native load	 	$	2	 	 	$	—	 	 	$	3	 	 	$	9	 	 	$	14	 	 	$	(66	)	
 	52	 	 	 	 	 	Other electricity marketing and trading (a)	 	 	33	 	 	 	24	 	 	 	19	 	 	 	23	 	 	 	99	 	 	 	(18	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	53	 	 	 	 	 	Total electricity	 	 	35	 	 	 	24	 	 	 	22	 	 	 	32	 	 	 	113	 	 	 	(84	)	
 	54	 	 	 	 	Other commodities (a)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	6	 	 	 	8	 	 	 	22	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	55	 	 	 	 	Total realized margin	 	 	39	 	 	 	25	 	 	 	19	 	 	 	38	 	 	 	121	 	 	 	(62	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	 	 	Electricity (a)	 	 	(16	)	 	 	(9	)	 	 	(4	)	 	 	(4	)	 	 	(30	)	 	 	(19	)	
 	57	 	 	 	 	Other commodities (a)	 	 	(6	)	 	 	—	 	 	 	6	 	 	 	(4	)	 	 	(11	)	 	 	(36	)	
 	58	 	 	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	59	 	 	 	 	Subtotal	 	 	(22	)	 	 	(9	)	 	 	2	 	 	 	(8	)	 	 	(41	)	 	 	(47	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	60	 	 	 	Total current period effects (b)	 	 	17	 	 	 	16	 	 	 	21	 	 	 	30	 	 	 	80	 	 	 	(109	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	 	Electricity	 	 	25	 	 	 	10	 	 	 	25	 	 	 	6	 	 	 	63	 	 	 	(83	)	
 	62	 	 	 	Other commodities	 	 	(2	)	 	 	(7	)	 	 	(2	)	 	 	(7	)	 	 	(11	)	 	 	7	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	63	 	 	 	Total future period effects	 	 	23	 	 	 	3	 	 	 	23	 	 	 	(1	)	 	 	52	 	 	 	(76	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	64	 	 	Total gross margin	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION
As of December 31, 2002, Pinnacle West had accumulated mark-to-market net gains of $41 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2003, $4 million; 2004, $10 million; 2005 and thereafter, $27 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $30 million was transferred to “realized” for the total year 2002. A $30 million realized gain is included in the $99 million on line 52 for total year 2002.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 		
 	 	 	
 	 	Page 18 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002 
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)

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

See Glossary of Terms.	 		
 	 	 	
 	 	Page 19 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	801,000	 	 	 	795,681	 	 	 	798,590	 	 	 	811,930	 	 	 	801,801	 	 	 	25,462	 	
 	80	 	 	 	Business	 	 	99,335	 	 	 	100,096	 	 	 	100,318	 	 	 	101,177	 	 	 	100,228	 	 	 	2,030	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	900,335	 	 	 	895,777	 	 	 	898,908	 	 	 	913,107	 	 	 	902,029	 	 	 	27,492	 	
 	82	 	 	Wholesale customers	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	900,402	 	 	 	895,844	 	 	 	898,975	 	 	 	913,174	 	 	 	902,096	 	 	 	27,493	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.2	%	 	 	3.2	%	 	 	3.1	%	 	 	3.2	%	 	 	3.1	%	 	 	(0.5	)%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,162	 	 	 	2,443	 	 	 	3,647	 	 	 	2,130	 	 	 	10,382	 	 	 	615	 	
 	86	 	 	Business	 	 	2,774	 	 	 	3,411	 	 	 	3,691	 	 	 	3,023	 	 	 	12,899	 	 	 	81	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	87	 	 	 	 	Total	 	 	4,936	 	 	 	5,854	 	 	 	7,338	 	 	 	5,153	 	 	 	23,281	 	 	 	696	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,673	 	 	 	3,068	 	 	 	4,766	 	 	 	2,532	 	 	 	13,025	 	 	 	(287	)	
 	89	 	 	Business	 	 	27,896	 	 	 	34,258	 	 	 	36,691	 	 	 	30,011	 	 	 	128,885	 	 	 	(4,152	)	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,699	 	 	 	3,071	 	 	 	4,566	 	 	 	2,623	 	 	 	12,947	 	 	 	366	 	
 	91	 	 	Business	 	 	27,926	 	 	 	34,075	 	 	 	36,795	 	 	 	29,878	 	 	 	128,698	 	 	 	(1,834	)	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,921	 	 	 	5,425	 	 	 	5,803	 	 	 	3,828	 	 	 	5,803	 	 	 	116	 	
 	 	 	
See Glossary of Terms.	 		
 	 	 	
 	 	Page 20 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,257	 	 	 	2,242	 	 	 	2,387	 	 	 	2,095	 	 	 	8,981	 	 	 	596	 	
 	94	 	 	 	Coal	 	 	2,890	 	 	 	2,703	 	 	 	3,280	 	 	 	3,183	 	 	 	12,056	 	 	 	(516	)	
 	95	 	 	 	Gas, oil and other	 	 	337	 	 	 	659	 	 	 	1,918	 	 	 	1,455	 	 	 	4,369	 	 	 	375	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	5,484	 	 	 	5,604	 	 	 	7,585	 	 	 	6,733	 	 	 	25,406	 	 	 	455	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	70	 	 	 	846	 	 	 	859	 	 	 	(157	)	 	 	1,619	 	 	 	(1,342	)	
 	98	 	 	 	Marketing and trading	 	 	3,993	 	 	 	4,599	 	 	 	8,771	 	 	 	6,340	 	 	 	23,704	 	 	 	6,051	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	4,063	 	 	 	5,445	 	 	 	9,630	 	 	 	6,183	 	 	 	25,323	 	 	 	4,709	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	9,547	 	 	 	11,049	 	 	 	17,215	 	 	 	12,916	 	 	 	50,729	 	 	 	5,164	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	96	%	 	 	95	%	 	 	100	%	 	 	87	%	 	 	94	%	 	 	6	%	
 	102	 	 	 	Coal	 	 	78	%	 	 	72	%	 	 	87	%	 	 	84	%	 	 	80	%	 	 	(4	)%	
 	103	 	 	 	Gas, oil and other	 	 	12	%	 	 	20	%	 	 	38	%	 	 	29	%	 	 	27	%	 	 	(10	)%	
 	104	 	 	 	System average	 	 	62	%	 	 	62	%	 	 	69	%	 	 	60	%	 	 	63	%	 	 	(7	)%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	62	 	 	 	66	 	 	 	12	 	 	 	129	 	 	 	67	 	 	 	(60	)	
 	106	 	 	 	Coal	 	 	184	 	 	 	279	 	 	 	88	 	 	 	116	 	 	 	167	 	 	 	—	 	
 	107	 	 	 	Gas	 	 	12	 	 	 	18	 	 	 	106	 	 	 	54	 	 	 	48	 	 	 	16	 	
 	108	 	 	 	 	Total	 	 	258	 	 	 	363	 	 	 	206	 	 	 	299	 	 	 	282	 	 	 	(44	)	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	11.57	 	 	$	11.89	 	 	$	14.84	 	 	$	13.05	 	 	$	13.01	 	 	$	(3.21	)	
See Glossary of Terms.
Page 21 of 43

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Year-To-Date	 	vs Prior YTD	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	26.86	 	 	$	30.65	 	 	$	35.45	 	 	$	36.18	 	 	$	32.28	 	 	$	(86.13	)	
 	111	 	 	 	 	SP15	 	$	28.46	 	 	$	31.51	 	 	$	35.55	 	 	$	41.35	 	 	$	34.22	 	 	$	(85.77	)	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	22.17	 	 	$	14.10	 	 	$	18.21	 	 	$	25.09	 	 	$	19.89	 	 	$	(41.68	)	
 	113	 	 	 	 	SP15	 	$	22.76	 	 	$	15.95	 	 	$	19.54	 	 	$	28.52	 	 	$	21.69	 	 	$	(51.79	)	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	89	 	 	 	1,741	 	 	 	2,647	 	 	 	398	 	 	 	4,875	 	 	 	(247	)	
 	115	 	 	 	Heating degree-days	 	 	472	 	 	 	—	 	 	 	—	 	 	 	328	 	 	 	800	 	 	 	(360	)	
 	116	 	 	 	Average humidity	 	 	28	%	 	 	16	%	 	 	27	%	 	 	38	%	 	 	27	%	 	 	(9	)%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	77	 	 	 	1,478	 	 	 	2,489	 	 	 	395	 	 	 	4,439	 	 	 	—	 	
 	118	 	 	 	Heating degree-days	 	 	546	 	 	 	34	 	 	 	—	 	 	 	433	 	 	 	1,013	 	 	 	—	 	
 	119	 	 	 	Average humidity	 	 	45	%	 	 	25	%	 	 	34	%	 	 	40	%	 	 	36	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	7,682	 	 	 	9,666	 	 	 	8,689	 	 	 	8,275	 	 	 	34,312	 	 	 	1,447	 	
 	121	 	 	 	Multi-family	 	 	1,249	 	 	 	2,005	 	 	 	2,662	 	 	 	1,158	 	 	 	7,074	 	 	 	(1,930	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	8,931	 	 	 	11,671	 	 	 	11,351	 	 	 	9,433	 	 	 	41,386	 	 	 	(483	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	(0.8	)%	 	 	(0.2	)%	 	 	0.1	%	 	 	0.9	%	 	 	0.0	%	 	 	(1.0	)%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	6.2	%	 	 	6.2	%	 	 	6.2	%	 	 	6.0	%	 	 	6.2	%	 	 	1.5	%	

Sources:	
 		
(a)	 	This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
See Glossary of Terms.
Page 22 of 43

 
Exhibit 99.5
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	 	Arizona Public Service	 	$	65	 	 	$	70	 	 	$	108	 	 	$	39	 	 	$	281	 	 	$	(26	)	
 	2	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	1	 	 	 	13	 	 	 	4	 	 	 	18	 	 	 	20	 	
 	3	 	 	 	APS Energy Services	 	 	(8	)	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(10	)	 	 	3	 	
 	4	 	 	 	SunCor	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	 	 	3	 	 	 	(8	)	
 	5	 	 	 	El Dorado	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	
 	6	 	 	 	Parent Company	 	 	4	 	 	 	(4	)	 	 	42	 	 	 	(7	)	 	 	35	 	 	 	38	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	7	 	 	 	 	Income Before Accounting Change	 	 	62	 	 	 	67	 	 	 	162	 	 	 	36	 	 	 	327	 	 	 	25	 	
 	8	 	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	(3	)	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	(15	)	 	 	(15	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	9	 	 	 	 	Net Income	 	$	59	 	 	$	67	 	 	$	150	 	 	$	36	 	 	$	312	 	 	$	10	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	EARNINGS PER SHARE
BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	 	Arizona Public Service	 	$	0.76	 	 	$	0.82	 	 	$	1.27	 	 	$	0.46	 	 	$	3.30	 	 	$	(0.31	)	
 	11	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	0.02	 	 	 	0.16	 	 	 	0.04	 	 	 	0.21	 	 	 	0.24	 	
 	12	 	 	 	APS Energy Services	 	 	(0.10	)	 	 	—	 	 	 	(0.03	)	 	 	—	 	 	 	(0.12	)	 	 	0.04	 	
 	13	 	 	 	SunCor	 	 	0.01	 	 	 	—	 	 	 	0.03	 	 	 	0.01	 	 	 	0.04	 	 	 	(0.10	)	
 	14	 	 	 	El Dorado	 	 	0.01	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.02	)	
 	15	 	 	 	Parent Company	 	 	0.05	 	 	 	(0.05	)	 	 	0.49	 	 	 	(0.09	)	 	 	0.42	 	 	 	0.44	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	16	 	 	 	 	Income Before Accounting Change	 	 	0.73	 	 	 	0.79	 	 	 	1.92	 	 	 	0.42	 	 	 	3.85	 	 	 	0.29	 	
 	17	 	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	(0.03	)	 	 	—	 	 	 	(0.15	)	 	 	—	 	 	 	(0.17	)	 	 	(0.17	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	18	 	 	 	 	Net Income	 	$	0.70	 	 	$	0.79	 	 	$	1.77	 	 	$	0.42	 	 	$	3.68	 	 	$	0.12	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	28.83	 	 	$	28.17	 	 	$	29.37	 	 	$	29.46	 	 	$	29.46	 	 	$	1.37	 	
 	 	 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	 	Average	 	 	84,966	 	 	 	85,042	 	 	 	84,909	 	 	 	84,824	 	 	 	84,930	 	 	 	(5	)	
 	21	 	 	 	End of Period	 	 	84,718	 	 	 	84,713	 	 	 	84,663	 	 	 	84,724	 	 	 	84,724	 	 	 	9	 	
See Glossary of Terms.
Page 23 of 43

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001
ELECTRIC OPERATING REVENUES
     (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	 	 	Residential	 	$	173	 	 	$	234	 	 	$	328	 	 	$	180	 	 	$	915	 	 	$	34	 	
 	23	 	 	 	 	Business	 	 	199	 	 	 	258	 	 	 	276	 	 	 	219	 	 	 	952	 	 	 	17	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	24	 	 	 	 	 	Total retail	 	 	372	 	 	 	492	 	 	 	604	 	 	 	399	 	 	 	1,867	 	 	 	51	 	
 	 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	 	 	Traditional contracts	 	 	26	 	 	 	55	 	 	 	(10	)	 	 	2	 	 	 	73	 	 	 	(48	)	
 	26	 	 	 	 	Retail load hedge management	 	 	5	 	 	 	182	 	 	 	364	 	 	 	27	 	 	 	578	 	 	 	17	 	
 	27	 	 	 	Transmission for others	 	 	4	 	 	 	5	 	 	 	9	 	 	 	8	 	 	 	26	 	 	 	11	 	
 	28	 	 	 	Other miscellaneous services	 	 	6	 	 	 	5	 	 	 	6	 	 	 	1	 	 	 	18	 	 	 	(9	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	29	 	 	 	 	 	Total regulated electricity	 	 	413	 	 	 	739	 	 	 	973	 	 	 	437	 	 	 	2,562	 	 	 	22	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	 	 	Generation sales other than native load	 	 	87	 	 	 	51	 	 	 	4	 	 	 	6	 	 	 	148	 	 	 	32	 	
 	31	 	 	 	 	Realized margin on electricity trading	 	 	12	 	 	 	17	 	 	 	(5	)	 	 	38	 	 	 	62	 	 	 	6	 	
 	32	 	 	 	 	Other delivered electricity (a)	 	 	111	 	 	 	138	 	 	 	51	 	 	 	29	 	 	 	329	 	 	 	87	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	33	 	 	 	 	Total delivered marketing and trading	 	 	210	 	 	 	206	 	 	 	50	 	 	 	73	 	 	 	539	 	 	 	125	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(5	)	 	 	(12	)	 	 	(1	)	 	 	4	 	 	 	(14	)	 	 	(5	)	
 	35	 	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	6	 	 	 	5	 	 	 	(37	)	 	 	(51	)	 	 	(1	)	 	 	1	 	
 	36	 	 	 	Change in mark-to-market for future-period deliveries	 	 	47	 	 	 	35	 	 	 	130	 	 	 	(9	)	 	 	127	 	 	 	113	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	37	 	 	 	Total other marketing and trading	 	 	48	 	 	 	28	 	 	 	92	 	 	 	(56	)	 	 	112	 	 	 	109	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	38	 	 	Total marketing and trading	 	 	258	 	 	 	234	 	 	 	142	 	 	 	17	 	 	 	651	 	 	 	234	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	39	 	 	Total electric operating revenues	 	$	671	 	 	$	973	 	 	$	1,115	 	 	$	454	 	 	$	3,213	 	 	$	256	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	 	 	Residential	 	 	2,121	 	 	 	2,467	 	 	 	3,597	 	 	 	2,149	 	 	 	10,335	 	 	 	554	 	
 	41	 	 	 	 	Business	 	 	2,824	 	 	 	3,445	 	 	 	3,724	 	 	 	3,071	 	 	 	13,064	 	 	 	310	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	42	 	 	 	 	 	Total retail	 	 	4,945	 	 	 	5,912	 	 	 	7,321	 	 	 	5,220	 	 	 	23,399	 	 	 	864	 	
 	 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	 	 	Traditional contracts	 	 	569	 	 	 	598	 	 	 	(37	)	 	 	83	 	 	 	1,213	 	 	 	(397	)	
 	44	 	 	 	 	Retail load hedge management	 	 	75	 	 	 	736	 	 	 	1,847	 	 	 	382	 	 	 	3,040	 	 	 	(3,634	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	45	 	 	 	 	 	Total regulated electricity	 	 	5,589	 	 	 	7,246	 	 	 	9,131	 	 	 	5,685	 	 	 	27,652	 	 	 	(3,167	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	 	 	Generation sales other than native load	 	 	623	 	 	 	436	 	 	 	73	 	 	 	256	 	 	 	1,388	 	 	 	(106	)	
 	47	 	 	 	 	Electricity trading	 	 	2,291	 	 	 	2,359	 	 	 	3,553	 	 	 	3,828	 	 	 	12,031	 	 	 	2,772	 	
 	48	 	 	 	 	Other delivered electricity	 	 	759	 	 	 	810	 	 	 	267	 	 	 	746	 	 	 	2,582	 	 	 	(378	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	49	 	 	 	 	Total delivered marketing and trading	 	 	3,673	 	 	 	3,605	 	 	 	3,893	 	 	 	4,830	 	 	 	16,001	 	 	 	2,288	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	50	 	 	Total electric sales	 	 	9,263	 	 	 	10,851	 	 	 	13,024	 	 	 	10,515	 	 	 	43,653	 	 	 	(879	)	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the total year of 2001. Lines 31 and 34 include amounts totaling $1 million of realized revenues for the total year of 2001.	
See Glossary of Terms.
Page 24 of 43

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	 	 	 	Generation sales other than native load	 	$	48	 	 	$	26	 	 	$	3	 	 	$	3	 	 	$	80	 	 	$	26	 	
 	52	 	 	 	 	 	Other electricity marketing and trading (a)	 	 	4	 	 	 	43	 	 	 	14	 	 	 	56	 	 	 	117	 	 	 	48	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	53	 	 	 	 	 	Total electricity	 	 	52	 	 	 	69	 	 	 	17	 	 	 	59	 	 	 	197	 	 	 	74	 	
 	54	 	 	 	 	Other commodities (a)	 	 	(5	)	 	 	(12	)	 	 	(1	)	 	 	4	 	 	 	(14	)	 	 	(5	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	55	 	 	 	 	Total realized margin	 	 	47	 	 	 	57	 	 	 	16	 	 	 	63	 	 	 	183	 	 	 	69	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	 	 	Electricity (a)	 	 	1	 	 	 	—	 	 	 	(38	)	 	 	(38	)	 	 	(11	)	 	 	(9	)	
 	57	 	 	 	 	Other commodities (a)	 	 	12	 	 	 	5	 	 	 	1	 	 	 	(4	)	 	 	25	 	 	 	25	 	
 	58	 	 	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(8	)	 	 	(8	)	 	 	(8	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	59	 	 	 	 	Subtotal	 	 	13	 	 	 	5	 	 	 	(37	)	 	 	(50	)	 	 	6	 	 	 	8	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	60	 	 	 	Total current period effects (b)	 	 	60	 	 	 	62	 	 	 	(21	)	 	 	13	 	 	 	189	 	 	 	77	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	 	Electricity	 	 	45	 	 	 	42	 	 	 	126	 	 	 	(2	)	 	 	146	 	 	 	139	 	
 	62	 	 	 	Other commodities	 	 	2	 	 	 	(6	)	 	 	3	 	 	 	(7	)	 	 	(18	)	 	 	(25	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	63	 	 	 	Total future period effects	 	 	47	 	 	 	36	 	 	 	129	 	 	 	(9	)	 	 	128	 	 	 	114	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	64	 	 	Total gross margin	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION
As of December 31, 2001, Pinnacle West had accumulated mark-to-market net gains of $138.0 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: 2002, $43.0 million; 2003, $22.6 million; 2004, $23.6 million; 2005 and thereafter, $48.8 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $11 million was transferred to “realized” for the total year of 2001. A $11 million realized gain is included in the $117 million on line 52 for the total year of 2001.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
See Glossary of Terms.
Page 25 of 43

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001 
MARKETING AND TRADING SEGMENT
       PRETAX GROSS MARGIN ANALYSIS (continued)
         (Dollars in Millions)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 		 		 		 		 		 		
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	98	 	 	$	111	 	 	$	105	 	 	$	15	 	 	$	328	 	 	$	201	 	
 	66	 	 	Natural gas	 	 	(3	)	 	 	(12	)	 	 	9	 	 	 	(3	)	 	 	(8	)	 	 	(15	)	
 	67	 	 	Coal	 	 	14	 	 	 	2	 	 	 	(2	)	 	 	(6	)	 	 	7	 	 	 	10	 	
 	68	 	 	Emission allowances	 	 	(2	)	 	 	(3	)	 	 	(4	)	 	 	(2	)	 	 	(10	)	 	 	(5	)	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	70	 	 	 	Total gross margin	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
 	72	 	 	 	Other marketing and trading	 	 	7	 	 	 	3	 	 	 	74	 	 	 	(6	)	 	 	78	 	 	 	80	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	 	Generation sales other than native load	 	 	48	 	 	 	26	 	 	 	2	 	 	 	3	 	 	 	79	 	 	 	25	 	
 	74	 	 	 	Other marketing and trading	 	 	53	 	 	 	68	 	 	 	32	 	 	 	3	 	 	 	156	 	 	 	82	 	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	76	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	 	Other marketing and trading	 	 	(1	)	 	 	1	 	 	 	—	 	 	 	4	 	 	 	4	 	 	 	4	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	78	 	 	Total gross margin before income taxes	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	

See Glossary of Terms.

Page 26 of 43

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	775,317	 	 	 	770,335	 	 	 	773,321	 	 	 	786,382	 	 	 	776,339	 	 	 	27,054	 	
 	80	 	 	 	Business	 	 	97,222	 	 	 	98,065	 	 	 	98,874	 	 	 	98,631	 	 	 	98,198	 	 	 	4,070	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	872,539	 	 	 	868,400	 	 	 	872,195	 	 	 	885,013	 	 	 	874,537	 	 	 	31,124	 	
 	82	 	 	Wholesale customers	 	 	68	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	872,607	 	 	 	868,466	 	 	 	872,261	 	 	 	885,079	 	 	 	874,603	 	 	 	31,123	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	4.0	%	 	 	3.9	%	 	 	3.7	%	 	 	3.2	%	 	 	3.7	%	 	 	(0.4	)%	
 	 	 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,037	 	 	 	2,238	 	 	 	3,354	 	 	 	2,138	 	 	 	9,767	 	 	 	208	 	
 	86	 	 	Business	 	 	2,825	 	 	 	3,339	 	 	 	3,633	 	 	 	3,021	 	 	 	12,818	 	 	 	126	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	4,862	 	 	 	5,577	 	 	 	6,987	 	 	 	5,159	 	 	 	22,585	 	 	 	334	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,737	 	 	 	3,203	 	 	 	4,651	 	 	 	2,733	 	 	 	13,312	 	 	 	259	 	
 	89	 	 	Business	 	 	29,047	 	 	 	35,130	 	 	 	37,666	 	 	 	31,136	 	 	 	133,037	 	 	 	(2,459	)	
 	 	 	 	RETAIL USAGE -
WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,627	 	 	 	2,905	 	 	 	4,337	 	 	 	2,719	 	 	 	12,581	 	 	 	(177	)	
 	91	 	 	Business	 	 	29,057	 	 	 	34,049	 	 	 	36,747	 	 	 	30,629	 	 	 	130,532	 	 	 	(4,305	)	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,661	 	 	 	5,358	 	 	 	5,687	 	 	 	3,898	 	 	 	5,687	 	 	 	209	 	
See Glossary of Terms.

Page 27 of 43

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,261	 	 	 	1,985	 	 	 	2,320	 	 	 	1,819	 	 	 	8,385	 	 	 	(456	)	
 	94	 	 	 	Coal	 	 	2,901	 	 	 	3,245	 	 	 	3,223	 	 	 	3,203	 	 	 	12,572	 	 	 	63	 	
 	95	 	 	 	Gas, oil and other	 	 	1,007	 	 	 	1,256	 	 	 	1,157	 	 	 	574	 	 	 	3,994	 	 	 	1,210	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	6,169	 	 	 	6,486	 	 	 	6,700	 	 	 	5,596	 	 	 	24,951	 	 	 	817	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	170	 	 	 	845	 	 	 	1,734	 	 	 	212	 	 	 	2,961	 	 	 	446	 	
 	98	 	 	 	Marketing and trading	 	 	3,126	 	 	 	3,905	 	 	 	5,667	 	 	 	4,955	 	 	 	17,653	 	 	 	(1,240	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	3,296	 	 	 	4,750	 	 	 	7,401	 	 	 	5,167	 	 	 	20,614	 	 	 	(794	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	9,465	 	 	 	11,236	 	 	 	14,101	 	 	 	10,763	 	 	 	45,565	 	 	 	23	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	96	%	 	 	84	%	 	 	97	%	 	 	76	%	 	 	88	%	 	 	(5	)%	
 	102	 	 	 	Coal	 	 	78	%	 	 	87	%	 	 	85	%	 	 	85	%	 	 	84	%	 	 	1	%	
 	103	 	 	 	Gas, oil and other	 	 	39	%	 	 	46	%	 	 	38	%	 	 	20	%	 	 	37	%	 	 	10	%	
 	104	 	 	 	System average	 	 	71	%	 	 	73	%	 	 	73	%	 	 	62	%	 	 	70	%	 	 	1	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	57	 	 	 	180	 	 	 	26	 	 	 	246	 	 	 	127	 	 	 	47	 	
 	106	 	 	 	Coal	 	 	284	 	 	 	166	 	 	 	129	 	 	 	90	 	 	 	167	 	 	 	13	 	
 	107	 	 	 	Gas	 	 	36	 	 	 	52	 	 	 	24	 	 	 	16	 	 	 	32	 	 	 	10	 	
 	108	 	 	 	 	Total	 	 	376	 	 	 	398	 	 	 	179	 	 	 	352	 	 	 	326	 	 	 	70	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	19.64	 	 	$	19.28	 	 	$	13.21	 	 	$	12.51	 	 	$	16.22	 	 	$	2.50	 	
 	 	 	
See Glossary of Terms.	 	Page 28 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	 	vs Prior Year	
 	 	 	 	 	 		 		 		 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	214.21	 	 	$	182.71	 	 	$	49.80	 	 	$	26.89	 	 	$	118.41	 	 	$	6.98	 	
 	111	 	 	 	 	SP15	 	$	219.66	 	 	$	186.30	 	 	$	45.61	 	 	$	28.38	 	 	$	119.99	 	 	$	12.64	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	130.40	 	 	$	70.32	 	 	$	27.22	 	 	$	18.33	 	 	$	61.57	 	 	$	8.55	 	
 	113	 	 	 	 	SP15	 	$	159.80	 	 	$	84.78	 	 	$	28.92	 	 	$	20.41	 	 	$	73.48	 	 	$	12.74	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	106	 	 	 	1,733	 	 	 	2,663	 	 	 	620	 	 	 	5,122	 	 	 	539	 	
 	115	 	 	 	Heating degree-days	 	 	657	 	 	 	43	 	 	 	—	 	 	 	460	 	 	 	1,160	 	 	 	192	 	
 	116	 	 	 	Average humidity	 	 	50	%	 	 	25	%	 	 	31	%	 	 	39	%	 	 	36	%	 	 	2	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	77	 	 	 	1,478	 	 	 	2,489	 	 	 	395	 	 	 	4,439	 	 	 	—	 	
 	118	 	 	 	Heating degree-days	 	 	546	 	 	 	34	 	 	 	—	 	 	 	433	 	 	 	1,013	 	 	 	—	 	
 	119	 	 	 	Average humidity	 	 	45	%	 	 	25	%	 	 	34	%	 	 	40	%	 	 	36	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	8,783	 	 	 	9,394	 	 	 	8,384	 	 	 	6,304	 	 	 	32,865	 	 	 	356	 	
 	121	 	 	 	Multi-family	 	 	3,925	 	 	 	1,833	 	 	 	2,514	 	 	 	732	 	 	 	9,004	 	 	 	(1,224	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	12,708	 	 	 	11,227	 	 	 	10,898	 	 	 	7,036	 	 	 	41,869	 	 	 	(868	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	2.4	%	 	 	1.5	%	 	 	0.8	%	 	 	(0.7	)%	 	 	1.0	%	 	 	(2.7	)%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	3.9	%	 	 	4.4	%	 	 	4.9	%	 	 	5.7	%	 	 	4.7	%	 	 	0.8	%	

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 29 of 43	

Exhibit 99.6
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	 	Arizona Public Service	 	$	33	 	 	$	96	 	 	$	124	 	 	$	54	 	 	$	307	 	
 	2	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	(1	)	 	 	—	 	 	 	(1	)	 	 	(2	)	
 	3	 	 	 	APS Energy Services	 	 	(2	)	 	 	(2	)	 	 	—	 	 	 	(9	)	 	 	(13	)	
 	4	 	 	 	SunCor	 	 	5	 	 	 	1	 	 	 	2	 	 	 	3	 	 	 	11	 	
 	5	 	 	 	El Dorado	 	 	19	 	 	 	(3	)	 	 	(9	)	 	 	(5	)	 	 	2	 	
 	6	 	 	 	Parent Company	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	—	 	 	 	(3	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	7	 	 	 	 	Income Before Accounting Change	 	 	54	 	 	 	90	 	 	 	116	 	 	 	42	 	 	 	302	 	
 	8	 	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	9	 	 	 	 	Net Income	 	$	54	 	 	$	90	 	 	$	116	 	 	$	42	 	 	$	302	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	 	Arizona Public Service	 	$	0.39	 	 	$	1.13	 	 	$	1.46	 	 	$	0.63	 	 	$	3.61	 	
 	11	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.01	)	 	 	(0.03	)	
 	12	 	 	 	APS Energy Services	 	 	(0.02	)	 	 	(0.03	)	 	 	—	 	 	 	(0.11	)	 	 	(0.16	)	
 	13	 	 	 	SunCor	 	 	0.06	 	 	 	0.01	 	 	 	0.03	 	 	 	0.04	 	 	 	0.14	 	
 	14	 	 	 	El Dorado	 	 	0.22	 	 	 	(0.04	)	 	 	(0.10	)	 	 	(0.06	)	 	 	0.02	 	
 	15	 	 	 	Parent Company	 	 	(0.01	)	 	 	—	 	 	 	(0.01	)	 	 	—	 	 	 	(0.02	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	16	 	 	 	 	Income Before Accounting Change	 	 	0.64	 	 	 	1.06	 	 	 	1.37	 	 	 	0.49	 	 	 	3.56	 	
 	17	 	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	18	 	 	 	 	Net Income	 	$	0.64	 	 	$	1.06	 	 	$	1.37	 	 	$	0.49	 	 	$	3.56	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	26.29	 	 	$	27.00	 	 	$	28.01	 	 	$	28.09	 	 	$	28.09	 	
 	 	 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	 	Average	 	 	84,834	 	 	 	84,891	 	 	 	85,012	 	 	 	85,015	 	 	 	84,935	 	
 	21	 	 	 	End of Period	 	 	84,723	 	 	 	84,727	 	 	 	84,779	 	 	 	84,715	 	 	 	84,715	 	
 	 	 	
See Glossary of Terms.	 	Page 30 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000 
ELECTRIC OPERATING REVENUES
(Dollars in Millions)

Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 	 		 		 		 		 		
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	 	 	Residential	 	$	157	 	 	$	228	 	 	$	324	 	 	$	172	 	 	$	881	 	
 	23	 	 	 	 	Business	 	 	196	 	 	 	253	 	 	 	275	 	 	 	211	 	 	 	935	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	24	 	 	 	 	 	Total retail	 	 	353	 	 	 	481	 	 	 	599	 	 	 	383	 	 	 	1,816	 	
 	 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	 	 	Traditional contracts	 	 	12	 	 	 	18	 	 	 	75	 	 	 	16	 	 	 	121	 	
 	26	 	 	 	 	Retail load hedge management	 	 	7	 	 	 	36	 	 	 	472	 	 	 	46	 	 	 	561	 	
 	27	 	 	 	Transmission for others	 	 	3	 	 	 	4	 	 	 	4	 	 	 	4	 	 	 	15	 	
 	28	 	 	 	Other miscellaneous services	 	 	4	 	 	 	8	 	 	 	8	 	 	 	7	 	 	 	27	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	29	 	 	 	 	 	Total regulated electricity	 	 	379	 	 	 	547	 	 	 	1,158	 	 	 	456	 	 	 	2,540	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	 	 	Generation sales other than native load	 	 	9	 	 	 	13	 	 	 	14	 	 	 	80	 	 	 	116	 	
 	31	 	 	 	 	Realized margins on electricity trading	 	 	3	 	 	 	11	 	 	 	32	 	 	 	10	 	 	 	56	 	
 	32	 	 	 	 	Other delivered electricity (a)	 	 	22	 	 	 	55	 	 	 	59	 	 	 	106	 	 	 	242	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	33	 	 	 	 	Total delivered marketing and trading	 	 	34	 	 	 	79	 	 	 	105	 	 	 	196	 	 	 	414	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(5	)	 	 	1	 	 	 	(4	)	 	 	(1	)	 	 	(9	)	
 	35	 	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	—	 	 	 	—	 	 	 	(17	)	 	 	(2	)	 	 	(2	)	
 	36	 	 	 	Change in mark-to-market for future-period deliveries	 	 	7	 	 	 	25	 	 	 	10	 	 	 	(11	)	 	 	14	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	37	 	 	 	Total other marketing and trading	 	 	2	 	 	 	26	 	 	 	(11	)	 	 	(14	)	 	 	3	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	38	 	 	Total marketing and trading	 	 	36	 	 	 	105	 	 	 	94	 	 	 	182	 	 	 	417	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	39	 	 	Total electric operating revenues	 	$	415	 	 	$	652	 	 	$	1,252	 	 	$	638	 	 	$	2,957	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	 	 	Residential	 	 	1,877	 	 	 	2,370	 	 	 	3,506	 	 	 	2,028	 	 	 	9,781	 	
 	41	 	 	 	 	Business	 	 	2,736	 	 	 	3,379	 	 	 	3,674	 	 	 	2,965	 	 	 	12,754	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	42	 	 	 	 	 	Total retail	 	 	4,613	 	 	 	5,749	 	 	 	7,180	 	 	 	4,993	 	 	 	22,535	 	
 	 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	 	 	Traditional contracts	 	 	331	 	 	 	391	 	 	 	537	 	 	 	351	 	 	 	1,610	 	
 	44	 	 	 	 	Retail load hedge management	 	 	232	 	 	 	585	 	 	 	5,155	 	 	 	702	 	 	 	6,674	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	45	 	 	 	 	 	Total regulated electricity	 	 	5,176	 	 	 	6,725	 	 	 	12,872	 	 	 	6,046	 	 	 	30,819	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	 	 	Generation sales other than native load	 	 	396	 	 	 	215	 	 	 	163	 	 	 	720	 	 	 	1,494	 	
 	47	 	 	 	 	Electricity trading	 	 	1,294	 	 	 	1,803	 	 	 	4,073	 	 	 	2,089	 	 	 	9,259	 	
 	48	 	 	 	 	Other delivered electricity	 	 	735	 	 	 	601	 	 	 	665	 	 	 	960	 	 	 	2,960	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	49	 	 	 	 	Total delivered marketing and trading	 	 	2,425	 	 	 	2,619	 	 	 	4,901	 	 	 	3,769	 	 	 	13,713	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	50	 	 	Total electric sales	 	 	7,601	 	 	 	9,344	 	 	 	17,773	 	 	 	9,815	 	 	 	44,532	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the total year of 2000. Lines 31 and 34 include amounts totaling $2 million of realized revenues for the total year of 2000.	
 	 	 	
See Glossary of Terms.	 	Page 31 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000 
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)

Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 	 		 		 		 		 		
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	 	 	 	Generation sales other than native load	 	$	2	 	 	$	6	 	 	$	7	 	 	$	39	 	 	$	54	 	
 	52	 	 	 	 	 	Other electricity marketing and trading (a)	 	 	3	 	 	 	28	 	 	 	33	 	 	 	5	 	 	 	69	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	53	 	 	 	 	 	Total electricity	 	 	5	 	 	 	34	 	 	 	40	 	 	 	44	 	 	 	123	 	
 	54	 	 	 	 	Other commodities (a)	 	 	(5	)	 	 	1	 	 	 	(4	)	 	 	(1	)	 	 	(9	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	55	 	 	 	 	Total realized margin	 	 	—	 	 	 	35	 	 	 	36	 	 	 	43	 	 	 	114	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	 	 	Electricity (a)	 	 	—	 	 	 	—	 	 	 	(18	)	 	 	(2	)	 	 	(2	)	
 	57	 	 	 	 	Other commodities (a)	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	
 	58	 	 	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	59	 	 	 	 	Subtotal	 	 	—	 	 	 	—	 	 	 	(17	)	 	 	(2	)	 	 	(2	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	60	 	 	 	Total current period effects (b)	 	 	—	 	 	 	35	 	 	 	19	 	 	 	41	 	 	 	112	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	 	Electricity	 	 	2	 	 	 	27	 	 	 	6	 	 	 	(10	)	 	 	7	 	
 	62	 	 	 	Other commodities	 	 	5	 	 	 	(2	)	 	 	4	 	 	 	(1	)	 	 	7	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	63	 	 	 	Total future period effects	 	 	7	 	 	 	25	 	 	 	10	 	 	 	(11	)	 	 	14	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	64	 	 	Total gross margin	 	$	7	 	 	$	60	 	 	$	29	 	 	$	30	 	 	$	126	 	

 	(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the total year of 2000. A $2 million realized gain is included in the $69 million on line 52 for the total year of 2000.	
 		
 	(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 	Page 32 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000 
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)

Line	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 		 		 		 		 		
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	 	7	 	 	 	61	 	 	 	28	 	 	 	31	 	 	 	127	 	
 	66	 	 	Natural gas	 	 	—	 	 	 	(1	)	 	 	3	 	 	 	4	 	 	 	6	 	
 	67	 	 	Coal	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	—	 	 	 	(2	)	
 	68	 	 	Emission allowances	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(5	)	 	 	(5	)	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	70	 	 	 	Total gross margin	 	$	7	 	 	$	60	 	 	$	29	 	 	$	30	 	 	$	126	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
 	72	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(2	)	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	 	Generation sales other than native load	 	 	2	 	 	 	6	 	 	 	7	 	 	 	39	 	 	 	54	 	
 	74	 	 	 	Other marketing and trading	 	 	5	 	 	 	54	 	 	 	22	 	 	 	(7	)	 	 	74	 	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	76	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	78	 	 	Total gross margin before income taxes	 	$	7	 	 	$	60	 	 	$	29	 	 	$	30	 	 	$	126	 	

See Glossary of Terms.	 	Page 33 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	746,528	 	 	 	742,485	 	 	 	746,742	 	 	 	761,386	 	 	 	749,285	 	
 	80	 	 	 	Business	 	 	92,667	 	 	 	93,343	 	 	 	94,479	 	 	 	96,024	 	 	 	94,128	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	839,195	 	 	 	835,828	 	 	 	841,221	 	 	 	857,410	 	 	 	843,413	 	
 	82	 	 	Wholesale customers	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	839,262	 	 	 	835,895	 	 	 	841,288	 	 	 	857,477	 	 	 	843,480	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	4.0	%	 	 	4.1	%	 	 	4.1	%	 	 	4.2	%	 	 	4.1	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	1,933	 	 	 	2,253	 	 	 	3,439	 	 	 	1,934	 	 	 	9,559	 	
 	86	 	 	Business	 	 	2,737	 	 	 	3,297	 	 	 	3,644	 	 	 	3,014	 	 	 	12,692	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	4,670	 	 	 	5,550	 	 	 	7,083	 	 	 	4,948	 	 	 	22,251	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,514	 	 	 	3,192	 	 	 	4,695	 	 	 	2,664	 	 	 	13,054	 	
 	89	 	 	Business	 	 	29,525	 	 	 	36,200	 	 	 	38,887	 	 	 	30,878	 	 	 	135,496	 	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,589	 	 	 	3,034	 	 	 	4,605	 	 	 	2,540	 	 	 	12,757	 	
 	91	 	 	Business	 	 	29,536	 	 	 	35,321	 	 	 	38,569	 	 	 	31,388	 	 	 	134,838	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,315	 	 	 	5,095	 	 	 	5,478	 	 	 	4,331	 	 	 	5,478	 	
 	 	 	
See Glossary of Terms.	 	Page 34 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,325	 	 	 	2,090	 	 	 	2,348	 	 	 	2,078	 	 	 	8,841	 	
 	94	 	 	 	Coal	 	 	2,828	 	 	 	3,163	 	 	 	3,343	 	 	 	3,175	 	 	 	12,509	 	
 	95	 	 	 	Gas, oil and other	 	 	323	 	 	 	526	 	 	 	1,046	 	 	 	889	 	 	 	2,784	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	5,476	 	 	 	5,779	 	 	 	6,737	 	 	 	6,142	 	 	 	24,134	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	51	 	 	 	819	 	 	 	1,550	 	 	 	95	 	 	 	2,515	 	
 	98	 	 	 	Marketing and trading	 	 	2,261	 	 	 	2,989	 	 	 	9,893	 	 	 	3,750	 	 	 	18,893	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	2,312	 	 	 	3,808	 	 	 	11,443	 	 	 	3,845	 	 	 	21,408	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	7,788	 	 	 	9,587	 	 	 	18,180	 	 	 	9,987	 	 	 	45,542	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	98	%	 	 	88	%	 	 	98	%	 	 	87	%	 	 	93	%	
 	102	 	 	 	Coal	 	 	76	%	 	 	85	%	 	 	88	%	 	 	84	%	 	 	83	%	
 	103	 	 	 	Gas, oil and other	 	 	13	%	 	 	21	%	 	 	40	%	 	 	34	%	 	 	27	%	
 	104	 	 	 	System average	 	 	63	%	 	 	67	%	 	 	77	%	 	 	70	%	 	 	69	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	27	 	 	 	129	 	 	 	21	 	 	 	143	 	 	 	80	 	
 	106	 	 	 	Coal	 	 	223	 	 	 	124	 	 	 	85	 	 	 	187	 	 	 	155	 	
 	107	 	 	 	Gas	 	 	8	 	 	 	43	 	 	 	16	 	 	 	20	 	 	 	22	 	
 	108	 	 	 	 	Total	 	 	258	 	 	 	296	 	 	 	122	 	 	 	350	 	 	 	257	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	10.65	 	 	$	12.69	 	 	$	14.77	 	 	$	16.28	 	 	$	13.72	 	
 	 	 	
See Glossary of Terms.	 	
Page 35 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2000

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	30.52	 	 	$	90.49	 	 	$	170.40	 	 	$	154.33	 	 	$	111.44	 	
 	111	 	 	 	 	SP15	 	$	31.40	 	 	$	82.67	 	 	$	152.74	 	 	$	162.59	 	 	$	107.35	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	22.97	 	 	$	31.91	 	 	$	61.48	 	 	$	95.72	 	 	$	53.02	 	
 	113	 	 	 	 	SP15	 	$	24.52	 	 	$	32.45	 	 	$	66.28	 	 	$	119.72	 	 	$	60.74	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	71	 	 	 	1,712	 	 	 	2,547	 	 	 	253	 	 	 	4,583	 	
 	115	 	 	 	Heating degree-days	 	 	459	 	 	 	9	 	 	 	—	 	 	 	500	 	 	 	968	 	
 	116	 	 	 	Average humidity	 	 	37	%	 	 	23	%	 	 	29	%	 	 	46	%	 	 	34	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	77	 	 	 	1,478	 	 	 	2,489	 	 	 	395	 	 	 	4,439	 	
 	118	 	 	 	Heating degree-days	 	 	546	 	 	 	34	 	 	 	—	 	 	 	433	 	 	 	1,013	 	
 	119	 	 	 	Average humidity	 	 	45	%	 	 	25	%	 	 	34	%	 	 	40	%	 	 	36	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	8,163	 	 	 	9,605	 	 	 	8,331	 	 	 	6,410	 	 	 	32,509	 	
 	121	 	 	 	Multi-family	 	 	3,208	 	 	 	2,651	 	 	 	2,417	 	 	 	1,952	 	 	 	10,228	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	11,371	 	 	 	12,256	 	 	 	10,748	 	 	 	8,362	 	 	 	42,737	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	4.4	%	 	 	3.8	%	 	 	3.4	%	 	 	3.2	%	 	 	3.7	%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	4.1	%	 	 	3.9	%	 	 	3.8	%	 	 	3.7	%	 	 	3.9	%	

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 36 of 43	

 
Exhibit 99.7
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	

 	 	 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	 	Arizona Public Service	 	$	33	 	 	$	70	 	 	$	130	 	 	$	34	 	 	$	267	 	
 	2	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	3	 	 	 	APS Energy Services	 	 	(2	)	 	 	(2	)	 	 	(2	)	 	 	(3	)	 	 	(9	)	
 	4	 	 	 	SunCor	 	 	1	 	 	 	3	 	 	 	—	 	 	 	2	 	 	 	6	 	
 	5	 	 	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	11	 	 	 	11	 	
 	6	 	 	 	Parent Company	 	 	(1	)	 	 	(2	)	 	 	(2	)	 	 	—	 	 	 	(5	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	7	 	 	 	 	Income From Continuing Operations	 	 	31	 	 	 	69	 	 	 	126	 	 	 	44	 	 	 	270	 	
 	8a	 	 	 	Income Tax Benefit From Discontinued Operations	 	 	—	 	 	 	—	 	 	 	38	 	 	 	—	 	 	 	38	 	
 	8b	 	 	 	Extraordinary Charge - Net of Income Tax	 	 	—	 	 	 	—	 	 	 	(140	)	 	 	—	 	 	 	(140	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	9	 	 	 	 	Net Income	 	$	31	 	 	$	69	 	 	$	24	 	 	$	44	 	 	$	168	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	EARNINGS PER SHARE
BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	 	Arizona Public Service	 	$	0.38	 	 	$	0.82	 	 	$	1.52	 	 	$	0.42	 	 	$	3.14	 	
 	11	 	 	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	12	 	 	 	APS Energy Services	 	 	(0.02	)	 	 	(0.02	)	 	 	(0.02	)	 	 	(0.05	)	 	 	(0.11	)	
 	13	 	 	 	SunCor	 	 	0.01	 	 	 	0.03	 	 	 	(0.01	)	 	 	0.03	 	 	 	0.07	 	
 	14	 	 	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.13	 	 	 	0.14	 	
 	15	 	 	 	Parent Company	 	 	(0.01	)	 	 	(0.02	)	 	 	(0.01	)	 	 	—	 	 	 	(0.07	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	16	 	 	 	 	Income From Continuing Operations	 	 	0.36	 	 	 	0.81	 	 	 	1.48	 	 	 	0.53	 	 	 	3.17	 	
 	17a	 	 	 	Income Tax Benefit From Discontinued Operations	 	 	—	 	 	 	—	 	 	 	0.45	 	 	 	—	 	 	 	0.45	 	
 	17b	 	 	 	Extraordinary Charge - Net of Income Tax	 	 	—	 	 	 	—	 	 	 	(1.65	)	 	 	—	 	 	 	(1.65	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	18	 	 	 	 	Net Income	 	$	0.36	 	 	$	0.81	 	 	$	0.28	 	 	$	0.53	 	 	$	1.97	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	25.49	 	 	$	25.58	 	 	$	25.84	 	 	$	26.00	 	 	$	26.00	 	
 	 	 	 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	 	Average	 	 	85,176	 	 	 	85,093	 	 	 	84,989	 	 	 	84,894	 	 	 	85,009	 	
 	21	 	 	 	End of Period	 	 	84,645	 	 	 	84,771	 	 	 	84,735	 	 	 	84,750	 	 	 	84,750	 	
 	 	 	
See Glossary of Terms.	 	
Page 37 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999

 	 	ELECTRIC OPERATING REVENUES
                (Dollars in Millions)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line	 	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 	 	 		 		 		 		 		
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	 	 	Residential	 	$	157	 	 	$	189	 	 	$	295	 	 	$	164	 	 	$	805	 	
 	23	 	 	 	 	Business	 	 	190	 	 	 	237	 	 	 	269	 	 	 	216	 	 	 	912	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	24	 	 	 	 	 	 	Total retail	 	 	347	 	 	 	426	 	 	 	564	 	 	 	380	 	 	 	1,717	 	
 	 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	 	 	Traditional contracts	 	 	11	 	 	 	16	 	 	 	21	 	 	 	13	 	 	 	61	 	
 	26	 	 	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	108	 	 	 	—	 	 	 	108	 	
 	27	 	 	 	Transmission for others	 	 	3	 	 	 	3	 	 	 	3	 	 	 	3	 	 	 	11	 	
 	28	 	 	 	Other miscellaneous services	 	 	3	 	 	 	4	 	 	 	6	 	 	 	5	 	 	 	18	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	29	 	 	 	 	 	 	Total regulated electricity	 	 	364	 	 	 	449	 	 	 	702	 	 	 	401	 	 	 	1,915	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	 	 	Generation sales other than native load	 	 	7	 	 	 	6	 	 	 	6	 	 	 	11	 	 	 	30	 	
 	31	 	 	 	 	Realized margins on electricity trading	 	 	4	 	 	 	(2	)	 	 	5	 	 	 	3	 	 	 	10	 	
 	32	 	 	 	 	Other delivered electricity (a)	 	 	17	 	 	 	22	 	 	 	45	 	 	 	27	 	 	 	111	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	33	 	 	 	 	Total delivered marketing and trading	 	 	28	 	 	 	26	 	 	 	56	 	 	 	41	 	 	 	151	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(1	)	 	 	—	 	 	 	(2	)	 	 	5	 	 	 	2	 	
 	35	 	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	36	 	 	 	Change in mark-to-market for future-period deliveries	 	 	—	 	 	 	6	 	 	 	(1	)	 	 	(4	)	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	37	 	 	 	Total other marketing and trading	 	 	(1	)	 	 	6	 	 	 	(3	)	 	 	1	 	 	 	3	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	38	 	 	Total marketing and trading	 	 	27	 	 	 	32	 	 	 	53	 	 	 	42	 	 	 	154	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	39	 	 	Total electric operating revenues	 	$	391	 	 	$	481	 	 	$	755	 	 	$	442	 	 	$	2,069	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	 	 	Residential	 	 	1,796	 	 	 	1,939	 	 	 	3,160	 	 	 	1,880	 	 	 	8,775	 	
 	41	 	 	 	 	Business	 	 	2,665	 	 	 	3,239	 	 	 	3,464	 	 	 	2,932	 	 	 	12,300	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	42	 	 	 	 	 	 	Total sales	 	 	4,461	 	 	 	5,178	 	 	 	6,624	 	 	 	4,812	 	 	 	21,075	 	
 	 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	 	 	Traditional contracts	 	 	309	 	 	 	351	 	 	 	441	 	 	 	321	 	 	 	1,422	 	
 	44	 	 	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	631	 	 	 	—	 	 	 	631	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	45	 	 	 	 	 	 	Total regulated electricity	 	 	4,770	 	 	 	5,529	 	 	 	7,696	 	 	 	5,133	 	 	 	23,128	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	 	 	Generation sales other than native load	 	 	348	 	 	 	254	 	 	 	171	 	 	 	494	 	 	 	1,267	 	
 	47	 	 	 	 	Electricity trading	 	 	1,286	 	 	 	1,198	 	 	 	2,165	 	 	 	1,029	 	 	 	5,678	 	
 	48	 	 	 	 	Other delivered electricity	 	 	902	 	 	 	1,192	 	 	 	2,937	 	 	 	1,664	 	 	 	6,695	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	49	 	 	 	 	Total delivered marketing and trading	 	 	2,536	 	 	 	2,644	 	 	 	5,273	 	 	 	3,187	 	 	 	13,640	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	50	 	 	Total electric sales	 	 	7,306	 	 	 	8,173	 	 	 	12,969	 	 	 	8,320	 	 	 	36,768	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $0 million was transferred to “realized” for the total year of 1999. Lines 31 and 34 include amounts totaling $0 million of realized revenues for the total year of 1999.	
 	 	 	
See Glossary of Terms.	 	
Page 38 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999 

 	 	 	 	MARKETING AND TRADING SEGMENT
      PRETAX GROSS MARGIN ANALYSIS
            (Dollars in Millions)	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Line	 	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 	 		 		 		 		 		
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	 	 	 	Generation sales other than native load	 	$	2	 	 	$	1	 	 	$	2	 	 	$	2	 	 	$	7	 	
 	52	 	 	 	 	 	Other electricity marketing and trading (a)	 	 	6	 	 	 	(2	)	 	 	3	 	 	 	—	 	 	 	7	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	53	 	 	 	 	 	Total electricity	 	 	8	 	 	 	(1	)	 	 	5	 	 	 	2	 	 	 	14	 	
 	54	 	 	 	 	Other commodities (a)	 	 	(1	)	 	 	—	 	 	 	(2	)	 	 	6	 	 	 	3	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	55	 	 	 	 	Total realized margin	 	 	7	 	 	 	(1	)	 	 	3	 	 	 	8	 	 	 	17	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	 	 	Electricity	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	57	 	 	 	 	Other commodities	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	58	 	 	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	59	 	 	 	 	Subtotal	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	60	 	 	 	Total current period effects	 	 	7	 	 	 	(1	)	 	 	3	 	 	 	8	 	 	 	17	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	 	Electricity	 	 	(1	)	 	 	4	 	 	 	(1	)	 	 	—	 	 	 	2	 	
 	62	 	 	 	Other commodities	 	 	1	 	 	 	2	 	 	 	—	 	 	 	(4	)	 	 	(1	)	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	63	 	 	 	Total future period effects	 	 	—	 	 	 	6	 	 	 	(1	)	 	 	(4	)	 	 	1	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	64	 	 	Total gross margin	 	$	7	 	 	$	5	 	 	$	2	 	 	$	4	 	 	$	18	 	

 	(a)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 	
Page 39 of 43	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999 
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)

Line	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 		 		 		 		 		
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	7	 	 	$	3	 	 	$	4	 	 	$	2	 	 	$	16	 	
 	66	 	 	Natural gas	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	
 	67	 	 	Coal	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	68	 	 	Emission allowances	 	 	1	 	 	 	2	 	 	 	(2	)	 	 	1	 	 	 	2	 	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	70	 	 	 	Total gross margin	 	$	7	 	 	$	5	 	 	$	2	 	 	$	4	 	 	$	18	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
 	72	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	 	Generation sales other than native load	 	 	2	 	 	 	1	 	 	 	2	 	 	 	2	 	 	 	7	 	
 	74	 	 	 	Other marketing and trading	 	 	5	 	 	 	4	 	 	 	—	 	 	 	2	 	 	 	11	 	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	76	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	78	 	 	Total gross margin before income taxes	 	$	7	 	 	$	5	 	 	$	2	 	 	$	4	 	 	$	18	 	

See Glossary of Terms.	Page 40 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	 	Residential	 	 	717,540	 	 	 	713,259	 	 	 	717,204	 	 	 	731,092	 	 	 	719,774	 	
 	80	 	 	 	Business	 	 	89,046	 	 	 	89,949	 	 	 	91,076	 	 	 	91,914	 	 	 	90,496	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	81	 	 	 	 	Total	 	 	806,586	 	 	 	803,208	 	 	 	808,280	 	 	 	823,006	 	 	 	810,270	 	
 	82	 	 	Wholesale customers	 	 	67	 	 	 	67	 	 	 	71	 	 	 	73	 	 	 	70	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	83	 	 	 	 	Total customers	 	 	806,653	 	 	 	803,275	 	 	 	808,351	 	 	 	823,079	 	 	 	810,340	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	84	 	 	Customer Growth (% over prior year)	 	 	4.2	%	 	 	4.3	%	 	 	4.2	%	 	 	4.0	%	 	 	4.2	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	1,859	 	 	 	1,984	 	 	 	3,166	 	 	 	1,924	 	 	 	8,933	 	
 	86	 	 	Business	 	 	2,669	 	 	 	3,280	 	 	 	3,461	 	 	 	2,893	 	 	 	12,303	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	87	 	 	 	 	Total	 	 	4,528	 	 	 	5,264	 	 	 	6,627	 	 	 	4,817	 	 	 	21,236	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,503	 	 	 	2,719	 	 	 	4,406	 	 	 	2,571	 	 	 	12,191	 	
 	89	 	 	Business	 	 	29,928	 	 	 	36,009	 	 	 	38,034	 	 	 	31,899	 	 	 	135,918	 	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,591	 	 	 	2,782	 	 	 	4,414	 	 	 	2,632	 	 	 	12,411	 	
 	91	 	 	Business	 	 	29,973	 	 	 	36,465	 	 	 	38,001	 	 	 	31,475	 	 	 	135,951	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,343	 	 	 	4,885	 	 	 	4,935	 	 	 	3,881	 	 	 	4,935	 	

See Glossary of Terms.	Page 41 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	 	Nuclear	 	 	2,295	 	 	 	2,080	 	 	 	2,397	 	 	 	2,077	 	 	 	8,849	 	
 	94	 	 	 	Coal	 	 	2,677	 	 	 	2,764	 	 	 	3,230	 	 	 	3,204	 	 	 	11,875	 	
 	95	 	 	 	Gas, oil and other	 	 	241	 	 	 	477	 	 	 	557	 	 	 	484	 	 	 	1,759	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	96	 	 	 	 	Total	 	 	5,213	 	 	 	5,321	 	 	 	6,184	 	 	 	5,765	 	 	 	22,483	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	 	Firm load	 	 	170	 	 	 	753	 	 	 	1,470	 	 	 	87	 	 	 	2,480	 	
 	98	 	 	 	Marketing and trading	 	 	2,189	 	 	 	2,390	 	 	 	5,734	 	 	 	2,693	 	 	 	13,006	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	99	 	 	 	 	Total	 	 	2,359	 	 	 	3,143	 	 	 	7,204	 	 	 	2,780	 	 	 	15,486	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	100	 	 	 	 	Total energy sources	 	 	7,572	 	 	 	8,464	 	 	 	13,388	 	 	 	8,545	 	 	 	37,969	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	 	Nuclear	 	 	98	%	 	 	88	%	 	 	100	%	 	 	87	%	 	 	93	%	
 	102	 	 	 	Coal	 	 	72	%	 	 	74	%	 	 	85	%	 	 	85	%	 	 	79	%	
 	103	 	 	 	Gas, oil and other	 	 	9	%	 	 	18	%	 	 	21	%	 	 	18	%	 	 	17	%	
 	104	 	 	 	System average	 	 	61	%	 	 	61	%	 	 	71	%	 	 	66	%	 	 	65	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	 	Nuclear	 	 	36	 	 	 	135	 	 	 	3	 	 	 	152	 	 	 	82	 	
 	106	 	 	 	Coal	 	 	337	 	 	 	368	 	 	 	177	 	 	 	172	 	 	 	264	 	
 	107	 	 	 	Gas	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	108	 	 	 	 	Total	 	 	373	 	 	 	503	 	 	 	180	 	 	 	324	 	 	 	345	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	10.00	 	 	$	10.96	 	 	$	11.02	 	 	$	11.33	 	 	$	10.85	 	
 	 	 	
See Glossary of Terms.	 	Page 42 of 43	

 
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
1999

Line	 	 	 	 	 	1st Qtr	 	2nd Qtr	 	3rd Qtr	 	4th Qtr	 	Total Year	
 	 	 	 	 	 		 		 		 		 		
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	 	 	Palo Verde	 	$	21.57	 	 	$	29.02	 	 	$	38.46	 	 	$	33.31	 	 	$	30.59	 	
 	111	 	 	 	 	SP15	 	$	21.26	 	 	$	27.17	 	 	$	35.01	 	 	$	33.84	 	 	$	29.32	 	
 	 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	 	 	Palo Verde	 	$	13.94	 	 	$	15.33	 	 	$	20.73	 	 	$	22.26	 	 	$	18.07	 	
 	113	 	 	 	 	SP15	 	$	13.68	 	 	$	14.47	 	 	$	20.60	 	 	$	25.06	 	 	$	18.45	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	 	Cooling degree-days	 	 	71	 	 	 	1,312	 	 	 	2,353	 	 	 	589	 	 	 	4,325	 	
 	115	 	 	 	Heating degree-days	 	 	459	 	 	 	112	 	 	 	—	 	 	 	359	 	 	 	930	 	
 	116	 	 	 	Average humidity	 	 	34	%	 	 	27	%	 	 	40	%	 	 	28	%	 	 	32	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	 	Cooling degree-days	 	 	77	 	 	 	1,478	 	 	 	2,489	 	 	 	395	 	 	 	4,439	 	
 	118	 	 	 	Heating degree-days	 	 	546	 	 	 	34	 	 	 	—	 	 	 	433	 	 	 	1,013	 	
 	119	 	 	 	Average humidity	 	 	45	%	 	 	25	%	 	 	34	%	 	 	40	%	 	 	36	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits – Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	 	Single-family	 	 	8,873	 	 	 	9,299	 	 	 	8,223	 	 	 	6,855	 	 	 	33,250	 	
 	121	 	 	 	Multi-family	 	 	2,337	 	 	 	2,396	 	 	 	1,861	 	 	 	3,011	 	 	 	9,605	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	122	 	 	 	 	Total	 	 	11,210	 	 	 	11,695	 	 	 	10,084	 	 	 	9,866	 	 	 	42,855	 	
 	 	 	 	 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	 	Payroll job growth (% over prior year)	 	 	3.9	%	 	 	4.4	%	 	 	4.6	%	 	 	4.2	%	 	 	4.3	%	
 	124	 	 	 	Unemployment rate (%, seasonally adjusted)	 	 	4.4	%	 	 	4.4	%	 	 	4.3	%	 	 	4.3	%	 	 	4.4	%	

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 43 of 43	

Exhibit 99.8
Pinnacle West Capital Corporation
Earnings Variance Explanations
For Periods Ended June 30, 2003 and 2002
     This discussion explains the changes in our consolidated earnings for the three, six and twelve month periods ended June 30, 2003 and 2002. Condensed Consolidated Statements of Income for the three, six and twelve months ended June 30, 2003 and 2002 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2003 on or before August 14, 2003. We suggest this section be read in connection with the Pinnacle West Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2002 and the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2003. We have reclassified certain prior period amounts to conform to our current period presentation. Additional operating and financial statistics and a glossary of terms are available on our website (www.pinnaclewest.com).
Earnings Contributions By Subsidiary And Business Segment
     We have three principal business segments (determined by products, services and the regulatory environment):

 	•	 	our regulated electricity segment, which consists of regulated traditional retail and wholesale electricity businesses 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 tables summarize net income and segment details for the three, six and twelve months ended June 30, 2003 and the comparable prior periods for Pinnacle West and each of our subsidiaries (dollars in millions): 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Marketing and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	 	Regulated Electricity	 	Trading	 	Real Estate (a)	 	Other	
 	 		 		 		 		 		
Three months ended	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
June 30,	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	
 	 		 		 		 		 		 		 		 		 		 		
Arizona Public Service (b)	 	$	43	 	 	$	64	 	 	$	41	 	 	$	64	 	 	$	2	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Pinnacle West Energy (b)	 	 	2	 	 	 	1	 	 	 	2	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
APS Energy Services (c)	 	 	5	 	 	 	11	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	10	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	
SunCor	 	 	2	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	2	 	 	 	—	 	 	 	—	 	
El Dorado (c)	 	 	2	 	 	 	(3	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	(3	)	
Parent company (c)	 	 	1	 	 	 	(6	)	 	 	—	 	 	 	(4	)	 	 	2	 	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(1	)	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Income (loss) from continuing operations	 	 	55	 	 	 	69	 	 	 	43	 	 	 	61	 	 	 	8	 	 	 	9	 	 	 	2	 	 	 	2	 	 	 	2	 	 	 	(3	)	
Income from discontinued operations – net of tax	 	 	1	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	6	 	 	 	—	 	 	 	—	 	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net income (loss)	 	$	56	 	 	$	75	 	 	$	43	 	 	$	61	 	 	$	8	 	 	$	9	 	 	$	3	 	 	$	8	 	 	$	2	 	 	$	(3	)	

 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Marketing and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	 	Regulated Electricity	 	Trading	 	Real Estate (a)	 	Other	
 	 		 		 		 		 		
Six months ended	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
June 30,	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	
 	 		 		 		 		 		 		 		 		 		 		
Arizona Public Service (b)	 	$	59	 	 	$	96	 	 	$	53	 	 	$	96	 	 	$	6	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Pinnacle West Energy (b)	 	 	8	 	 	 	2	 	 	 	8	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
APS Energy Services (c)	 	 	13	 	 	 	13	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	11	 	 	 	—	 	 	 	—	 	 	 	3	 	 	 	2	 	
SunCor	 	 	4	 	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	3	 	 	 	—	 	 	 	—	 	
El Dorado (c)	 	 	5	 	 	 	(3	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	(3	)	
Parent company (c)	 	 	(14	)	 	 	11	 	 	 	(12	)	 	 	(5	)	 	 	1	 	 	 	18	 	 	 	—	 	 	 	—	 	 	 	(3	)	 	 	(2	)	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Income (loss) from continuing operations	 	 	75	 	 	 	122	 	 	 	49	 	 	 	93	 	 	 	17	 	 	 	29	 	 	 	4	 	 	 	3	 	 	 	5	 	 	 	(3	)	
Income from discontinued operations – net of tax	 	 	6	 	 	 	7	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	6	 	 	 	7	 	 	 	—	 	 	 	—	 	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net income (loss)	 	$	81	 	 	$	129	 	 	$	49	 	 	$	93	 	 	$	17	 	 	$	29	 	 	$	10	 	 	$	10	 	 	$	5	 	 	$	(3	)	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Marketing and	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Total	 	Regulated Electricity	 	Trading	 	Real Estate (a)	 	Other (d)	
 	 		 		 		 		 		
Twelve months ended	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
June 30,	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	
 	 		 		 		 		 		 		 		 		 		 		
Arizona Public Service (b)	 	$	162	 	 	$	243	 	 	$	156	 	 	$	218	 	 	$	6	 	 	$	25	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Pinnacle West Energy (b) (e)	 	 	(13	)	 	 	19	 	 	 	(15	)	 	 	19	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
APS Energy Services (c)	 	 	28	 	 	 	11	 	 	 	—	 	 	 	—	 	 	 	23	 	 	 	9	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	2	 	
SunCor	 	 	10	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	6	 	 	 	—	 	 	 	—	 	
El Dorado (c)	 	 	(47	)	 	 	(3	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(47	)	 	 	(3	)	
Parent company (c)	 	 	20	 	 	 	44	 	 	 	(15	)	 	 	(6	)	 	 	17	 	 	 	52	 	 	 	—	 	 	 	—	 	 	 	18	 	 	 	(2	)	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Income (loss) from continuing operations	 	 	160	 	 	 	320	 	 	 	126	 	 	 	231	 	 	 	48	 	 	 	86	 	 	 	10	 	 	 	6	 	 	 	(24	)	 	 	(3	)	
Income from discontinued operations – net of tax	 	 	8	 	 	 	7	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	7	 	 	 	—	 	 	 	—	 	
Cumulative effect of change in accounting - net of tax (f) (g)	 	 	(66	)	 	 	(12	)	 	 	—	 	 	 	—	 	 	 	(66	)	 	 	(12	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net income (loss)	 	$	102	 	 	$	315	 	 	$	126	 	 	$	231	 	 	$	(18	)	 	$	74	 	 	$	18	 	 	$	13	 	 	$	(24	)	 	$	(3	)	

(a)	 	See “Real Estate Activities” discussion below.	
 		
(b)	 	Consistent with APS’ October 2001 ACC filing, APS entered into contracts with its affiliates to buy power through June 2003. The contracts reflect a price based on the fully-dispatchable dedication of the Pinnacle West Energy generating assets to APS’ Native Load customers (customers receiving power under traditional cost-based rate regulation). Under the ACC Track B order, APS was required to solicit bids for certain estimated capacity and energy requirements for periods beginning July 1, 2003. Pinnacle West Energy bid on and entered into a contract to supply most of these purchase power requirements in summer months through September 2006.	
 		
(c)	 	APS Energy Services’ net income prior to 2003 and El Dorado’s net income are primarily reported before income taxes. The income tax expense or benefit for these subsidiaries was recorded at the parent company.	
 		
(d)	 	Primarily includes activities related to El Dorado in the twelve months ended June 30, 2003, principally El Dorado’s investment in NAC Holding Inc. (NAC). For the twelve months ended June 30, 2003, we recorded a pretax loss of $47 million related to NAC contracts with two customers.	
 		
(e)	 	In the fourth quarter of 2002, Pinnacle West Energy recorded a charge related to the cancellation of Redhawk Units 3 and 4 of approximately $30 million after income taxes ($49 million pretax).	
 		
(f)	 	We recorded a $66 million after tax charge as of October 1, 2002 for the cumulative effect of a change in accounting for trading activities, for the early adoption of EITF 02-3, “Issues Involved in Accounting for Derivative Contracts Held for Trading Purposes and Contracts Involved in Energy Trading and Risk Management Activities.”	
 		
(g)	 	APS recorded a $12 million after tax charge in July 2001 for the cumulative effect of a change in accounting for derivatives related to the adoption of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities.”	
2 

 

Results of Operations
      General
     Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to electric operating revenues less purchased power and fuel costs. Our real estate segment gross margin refers to real estate revenues less real estate operations costs of SunCor. Other gross margin refers to other operating revenues less other operating expenses, which includes El Dorado’s investment in NAC, which we began consolidating in our financial statements in July 2002. Other gross margin also includes amounts related to APS Energy Services’ energy consulting services.
      Operating Results – Three-month period ended June 30, 2003 compared with three-month period ended June 30, 2002
     Our consolidated net income for the three months ended June 30, 2003 was $56 million compared with $75 million for the prior year. The period-to-period decrease of $19 million was primarily due to (amounts after tax):

 	•	 	$13 million of higher purchased power and fuel costs primarily due to higher hedged gas and power prices;	
 		
 	•	 	$5 million of higher depreciation, operations and maintenance and net interest expense, net of decreased purchased power costs and increased generation sales other than Native Load, related to new power plants in service;	
 		
 	•	 	$5 million of lower SunCor earnings contributions primarily due to the sale of a retail center in the prior year period which was reported as discontinued operations on the Condensed Consolidated Statements of Income, see “Real Estate Activities” below for further discussion;	
 		
 	•	 	a $4 million earnings decrease due to a retail electricity price reduction;	
 		
 	•	 	$4 million of higher operating costs primarily related to higher pension and other benefit costs;	
 		
 	•	 	$3 million of higher depreciation expense primarily related to increased plant assets in service; and	
 		
 	•	 	$1 million of miscellaneous factors, net.	
     The above decreases were partially offset by (amounts after tax):

 	•	 	$8 million of higher retail sales primarily due to customer growth, excluding weather effects;	
 		
 	•	 	$4 million of lower regulatory asset amortization; and	
 		
 	•	 	$4 million of higher income as a result of the absence of NAC losses in 2003.	
3 

 

     For additional details, see the following discussion.
     The major factors that increased (decreased) net income were as follows
(dollars in millions): 

 	 	 	 	Increase	
 	 	 	 	(Decrease)	
 	 	 	 		
Regulated electricity segment gross margin:	 	 	 	 	
 	Increased purchased power and fuel costs primarily due to higher hedged gas and power prices	 	$	(22	)	
 	Retail electricity price reduction effective July 1, 2002	 	 	(7	)	
 	Effects of weather on retail sales	 	 	(1	)	
 	Higher retail sales primarily due to customer growth, excluding weather effects	 	 	14	 	
 	Decreased purchased power costs due to new power plants in service	 	 	6	 	
 	 	 	 		 	
 	 	Net decrease in regulated electricity segment gross margin	 	 	(10	)	
 	 	 	 		 	
Marketing and trading segment gross margin:	 	 	 	 	
 	Lower realized wholesale margins primarily due to lower unit margins, partially offset by higher volumes	 	 	(6	)	
 	Lower mark-to-market gains for future delivery due to lower market liquidity	 	 	(4	)	
 	Higher revenues related to the adoption of EITF 02-3	 	 	8	 	
 	Increased competitive retail sales in California by APS Energy Services	 	 	2	 	
 	Increase in generation sales other than Native Load due to higher sales volumes	 	 	1	 	
 	 	 	 		 	
 	 	Net increase in marketing and trading segment gross margin	 	 	1	 	
 	 	 	 		 	
Net decrease in regulated electricity and marketing and trading segments’ gross margins	 	 	(9	)	
Higher operations and maintenance expense related to increased pension and other benefit costs, new power plants in service and prior period reversal of APS Energy Services’ California reserve	 	 	(13	)	
Higher interest expense and lower capitalized interest related to new power plants in service	 	 	(7	)	
Higher depreciation and amortization primarily related to new power plants and increased plant assets, partially offset by lower regulatory asset amortization	 	 	(5	)	
Higher income primarily related to the absence of NAC losses in 2003	 	 	7	 	
Miscellaneous items, net	 	 	3	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations before income taxes	 	 	(24	)	
Lower income taxes primarily due to lower income	 	 	10	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations	 	 	(14	)	
Decrease in income from discontinued operations related to SunCor – net of income tax (see “Real Estate Activities” below)	 	 	(5	)	
 	 	 	 		 	
 	Net decrease in net income	 	$	(19	)	
 	 	 	 		 	
4 

 

Regulated Electricity Segment Gross Margin
     Regulated electricity segment revenues related to our regulated retail and wholesale electricity businesses were $10 million higher in the three months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	a $7 million decrease in retail revenues related to a reduction in retail electricity prices;	
 		
 	•	 	a $20 million increase in retail revenues related to customer growth, excluding weather effects;	
 		
 	•	 	a $2 million decrease in retail revenues related to weather; and	
 		
 	•	 	a $1 million net decrease due to other miscellaneous factors.	
     Regulated electricity segment purchased power and fuel costs were $20 million higher in the three months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	a $22 million increase in purchased power and fuel costs primarily due to higher hedged gas and power prices;	
 		
 	•	 	a $6 million increase related to customer growth, excluding weather effects;	
 		
 	•	 	a $1 million decrease related to the effects of weather on retail sales;	
 		
 	•	 	a $6 million decrease in purchased power costs due to new power plants in service; and	
 		
 	•	 	a $1 million decrease due to other miscellaneous factors.	
Marketing and Trading Segment Gross Margin
     Marketing and trading segment revenues were $118 million higher in the three months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	$77 million of higher realized wholesale revenues primarily due to higher volumes and higher prices;	
 		
 	•	 	$2 million in lower mark-to-market gains for future delivery primarily as a result of lower market liquidity;	
 		
 	•	 	$8 million of higher revenues related to the adoption of EITF 02-3;	
 		
 	•	 	a $17 million increase from higher competitive retail sales in California by APS Energy Services; and	
 		
 	•	 	an $18 million increase from generation sales other than Native Load primarily due to higher sales volumes and higher prices.	
     Marketing and trading segment purchased power and fuel costs were $117 million higher in the three months ended June 30, 2003, compared to the same period in the prior year as a result of:

 	•	 	an $83 million increase in purchased power costs related to other realized marketing activities in the current period primarily due to higher volumes and higher prices;	
 		
 	•	 	a $2 million increase in mark-to-market fuel costs for future delivery;	
 		
 	•	 	a $15 million increase in purchased power costs related to higher competitive retail sales in California by APS Energy Services; and	
 		
 	•	 	a $17 million increase in fuel costs related to generation sales other than Native Load primarily because of higher natural gas prices and higher sales volumes.	
5 

 

Other Income Statement Items
     The increase in operations and maintenance expense of $13 million was due to increased pension and other benefit costs, new power plants in service, a prior period reversal of APS Energy Services’ California reserve and other costs.
     Net interest expense increased $7 million primarily because of higher debt balances and lower capitalized interest related to our generation construction program, including completion of Redhawk Units 1 and 2 in mid-2002.
     The increase in depreciation and amortization expense of $5 million primarily related to increased plant assets and new power plants, partially offset by lower regulatory asset amortization.
     The increase in other gross margin of $2 million was primarily due to increased NAC gross margins.
     The decrease in other expense of $8 million primarily related to the absence of NAC losses of $6 million in 2003 and lower other expenses.
     The increase in real estate segment gross margin of $2 million was primarily due to higher home sales. In addition, in the 2003 period, discontinued operations of $1 million after tax primarily related to SunCor’s sale of its water utility company. In the 2002 period, discontinued operations of $6 million after tax primarily related to SunCor’s sale of a retail center (see “Real Estate Activities” below).
      Operating Results – Six-month period ended June 30, 2003 compared with six-month period ended June 30, 2002
     Our consolidated net income for the six months ended June 30, 2003 was $81 million compared with $129 million for the prior year. Both periods include income from discontinued operations related to our real estate segment. The period-to-period decrease of $48 million was primarily due to (amounts after tax):

 	•	 	$20 million of lower earnings contributions from our marketing and trading activities, reflecting lower liquidity and higher price volatility in the wholesale power markets in the western United States, partially offset by higher revenues related to the adoption of EITF 02-3;	
 		
 	•	 	$16 million of higher depreciation, operations and maintenance and net interest expense, net of decreased purchased power costs and increased generation sales other than Native Load, related to new power plants in service;	
 		
 	•	 	$14 million of higher purchased power and fuel costs primarily due to higher hedged gas and power prices;	
 		
 	•	 	$8 million of higher operating costs primarily related to higher pension and other benefit costs;	
6 

 

 	•	 	a $7 million earnings decrease due to a retail electricity price reduction;	
 		
 	•	 	$7 million of higher depreciation expense related to increased plant assets in service;	
 		
 	•	 	$4 million from the effects of weather on retail sales; and	
 		
 	•	 	$6 million of miscellaneous factors, net.	
     The above decreases were partially offset by (amounts after tax):

 	•	 	$13 million of higher retail sales primarily due to customer growth, excluding weather effects;	
 		
 	•	 	$8 million of lower regulatory asset amortization;	
 		
 	•	 	$7 million related to the absence of NAC losses in 2003 and the current period settlement of an NAC contract dispute; and	
 		
 	•	 	$6 million in higher competitive retail sales in California by APS Energy Services.	
     For additional details, see the following discussion.
7 

 

     The major factors that increased (decreased) net income were as follows
(dollars in millions): 

 	 	 	 	Increase	
 	 	 	 	(Decrease)	
 	 	 	 		
Regulated electricity segment gross margin:	 	 	 	 	
 	Increased purchased power and fuel costs primarily due to higher hedged gas and power prices	 	$	(23	)	
 	Retail electricity price reduction effective July 1, 2002	 	 	(12	)	
 	Effects of milder weather on retail sales	 	 	(7	)	
 	Higher retail sales volumes due to customer growth, excluding weather effects	 	 	21	 	
 	Decreased purchased power costs due to new power plants in service	 	 	3	 	
 	 	 	 		 	
 	 	Net decrease in regulated electricity segment gross margin	 	 	(18	)	
 	 	 	 		 	
Marketing and trading segment gross margin:	 	 	 	 	
 	Lower realized wholesale margins primarily due to lower unit margins, partially offset by higher volumes	 	 	(30	)	
 	Lower mark-to-market gains for future delivery due to lower market liquidity and higher price volatility	 	 	(18	)	
 	Higher revenues related to the adoption of EITF 02-3	 	 	16	 	
 	Increased competitive retail sales in California by APS Energy Services	 	 	10	 	
 	Increase in generation sales other than Native Load due to higher sales volumes	 	 	2	 	
 	 	 	 		 	
 	 	Net decrease in marketing and trading segment gross margin	 	 	(20	)	
 	 	 	 		 	
Net decrease in regulated electricity and marketing and trading segments’ gross margins	 	 	(38	)	
Higher operations and maintenance expense related to increased pension and other benefit costs, new power plants in service and increased customer service costs	 	 	(28	)	
Higher interest expense and lower capitalized interest primarily related to new power plants in service	 	 	(14	)	
Higher depreciation and amortization primarily related to new power plants and increased plant assets, partially offset by lower regulatory asset amortization	 	 	(11	)	
Higher income primarily related to the absence of NAC losses in 2003 and NAC’s settlement of a contract dispute recorded in the first quarter of 2003	 	 	11	 	
 	Miscellaneous factors, net	 	 	1	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations before income taxes	 	 	(79	)	
Lower income taxes primarily due to lower income	 	 	32	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations	 	 	(47	)	
Decrease in income from discontinued operations related to SunCor – net of income tax (see “Real Estate Activities” below)	 	 	(1	)	
 	 	 	 		 	
 	Net decrease in net income	 	$	(48	)	
 	 	 	 		 	
8 

 

Regulated Electricity Segment Gross Margin
     Regulated electricity segment revenues related to our regulated retail and wholesale electricity businesses were $15 million higher in the six months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	a $4 million increase related to traditional wholesale sales as a result of higher sales volumes and higher prices;	
 		
 	•	 	a $12 million decrease in retail revenues related to a reduction in retail electricity prices;	
 		
 	•	 	a $13 million decrease in retail revenues related to milder weather;	
 		
 	•	 	a $34 million increase in retail revenues related to customer growth, excluding weather effects; and	
 		
 	•	 	a $2 million net increase due to other miscellaneous factors.	
     Regulated electricity segment purchased power and fuel costs were $33 million higher in the six months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	a $4 million increase related to traditional wholesale sales as a result of higher sales volumes and higher prices;	
 		
 	•	 	a $23 million increase in purchased power and fuel costs primarily due to higher hedged gas and power prices;	
 		
 	•	 	a $6 million decrease related to the effects of milder weather on retail sales;	
 		
 	•	 	a $13 million increase related to customer growth, excluding weather effects;	
 		
 	•	 	a $3 million decrease in purchased power costs due to new power plants in service; and	
 		
 	•	 	a $2 million net increase due to other miscellaneous factors.	
Marketing and Trading Segment Gross Margin
     Marketing and trading segment revenues were $205 million higher in the six months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	$19 million in lower mark-to-market gains for future delivery primarily as a result of lower market liquidity and higher price volatility;	
 		
 	•	 	$106 million of higher realized wholesale revenues primarily due to higher volumes;	
 		
 	•	 	$16 million of higher revenues related to the adoption of EITF 02-3;	
 		
 	•	 	a $48 million increase from higher competitive retail sales in California by APS Energy Services; and	
 		
 	•	 	a $54 million increase from generation sales other than Native Load primarily due to higher prices and higher sales volumes.	
     Marketing and trading segment purchased power and fuel costs were $225 million higher in the six months ended June 30, 2003, compared to the same period in the prior year as a result of:

 	•	 	a $1 million decrease in mark-to-market fuel costs for future delivery;	
 		
 	•	 	a $136 million increase in purchased power costs related to other realized marketing activities in the current period primarily due to higher volumes and higher prices;	
9 

 

 	•	 	a $38 million increase in purchased power costs related to higher competitive retail sales in California by APS Energy Services; and	
 		
 	•	 	a $52 million increase in fuel costs related to generation sales other than Native Load primarily because of higher natural gas prices and higher sales volumes.	
Other Income Statement Items
     The increase in operations and maintenance expense of $28 million was due to increased pension and other benefit costs, new power plants in service and increased customer service costs.
     Net interest expense increased $14 million primarily because of higher debt balances and lower capitalized interest related to our generation construction program, including completion of Redhawk Units 1 and 2 in mid-2002.
     The increase in depreciation and amortization expense of $11 million primarily related to new power plants and increased plant assets, partially offset by lower regulatory asset amortization.
     The increase in other gross margin of $8 million was primarily due to NAC’s $5 million reversal of loss reserves related to the settlement of a contract.
     The decrease in other expense of $7 million primarily related to prior period NAC losses.
      Operating Results – Twelve-month period ended June 30, 2003 compared with twelve-month period ended June 30, 2002
     Our consolidated net income for the twelve months ended June 30, 2003 was $102 million compared with $315 million for the prior year. The period-to-period decrease of $213 million was primarily due to (amounts after tax):

 	•	 	a $66 million charge for the cumulative effect of a change in accounting for trading activities for the early adoption of EITF 02-3 on October 1, 2002;	
 		
 	•	 	$61 million of lower earnings contributions from our marketing and trading activities, reflecting lower liquidity and lower price volatility in the wholesale power markets in the western United States, partially offset by higher revenues related to the adoption of EITF 02-3;	
 		
 	•	 	$37 million of higher purchased power and fuel prices primarily due to higher hedged gas and power prices;	
 		
 	•	 	$34 million of higher operations and maintenance expenses related to the Redhawk Units 3 and 4 cancellation charge and 2002 severance costs, partially offset by lower generation reliability costs;	
 		
 	•	 	$25 million in losses related to our investment in NAC;	
 		
 	•	 	$19 million of higher depreciation, operations and maintenance and net interest expense, net of decreased purchased power costs and increased generation sales other than Native Load, related to new power plants in service;	
10 

 

 	•	 	a $16 million earnings decrease due to two retail electricity price reductions;	
 		
 	•	 	$14 million from the effects of milder weather on retail sales;	
 		
 	•	 	$12 million of depreciation expense related to increased plant assets in service;	
 		
 	•	 	$11 million of higher pension and other benefit costs; and	
 		
 	•	 	$3 million of miscellaneous factors, net.	
     The above decreases were partially offset by (amounts after tax):

 	•	 	$26 million of higher retail sales primarily due to customer growth, excluding weather effects;	
 		
 	•	 	$17 million in higher competitive retail sales in California by APS Energy Services;	
 		
 	•	 	$17 million of lower regulatory asset amortization;	
 		
 	•	 	$13 million of 2001 charges related to Enron and its affiliates; and	
 		
 	•	 	a $12 million charge for the cumulative effect of a change in accounting for derivatives, as required by SFAS No. 133, recorded in the twelve months ended June 30, 2002.	
     For additional details, see the following discussion.
11 

 

     The major factors that increased (decreased) net income were as follows (dollars in millions): 

 	 	 	 	Increase	
 	 	 	 	(Decrease)	
 	 	 	 		
Regulated electricity segment gross margin:	 	 	 	 	
 	Increased purchased power and fuel costs primarily due to higher hedged gas and power prices	 	$	(61	)	
 	Retail electricity price reductions effective July 1, 2001 and July 1, 2002	 	 	(27	)	
 	Effects of milder weather on retail sales	 	 	(23	)	
 	Higher retail sales volumes due to customer growth, excluding weather effects	 	 	44	 	
 	Decreased purchased power due to new power plants in service	 	 	20	 	
 	2001 charges related to purchase power contracts with Enron	 	 	13	 	
 	Miscellaneous factors, net	 	 	5	 	
 	 	 	 		 	
 	 	Net decrease in regulated electricity segment gross margin	 	 	(29	)	
 	 	 	 		 	
Marketing and trading segment gross margin:	 	 	 	 	
 	Lower mark-to-market gains for future delivery due to lower market liquidity and lower price volatility	 	 	(98	)	
 	Lower realized wholesale margins due to lower unit margins, partially offset by higher volumes	 	 	(30	)	
 	Increased competitive retail sales in California by APS Energy Services	 	 	28	 	
 	Higher revenues related to the adoption of EITF 02-3	 	 	25	 	
 	Increase in generation sales other than Native Load primarily due to higher sales volumes	 	 	8	 	
 	Change in prior period mark-to-market value related to trading with Enron	 	 	8	 	
 	 	 	 		 	
 	 	Net decrease in marketing and trading segment gross margin	 	 	(59	)	
 	 	 	 		 	
Net decrease in regulated electricity and marketing and trading segments’ gross margins	 	 	(88	)	
Higher operations and maintenance expense related primarily to a $47 million write-off of Redhawk Units 3 and 4, 2002 severance costs of approximately $36 million, increased pension and other benefit costs and new power plants in service, partially offset by lower generation reliability costs	 	 	(94	)	
Lower income primarily related to NAC losses	 	 	(41	)	
Higher interest expense and lower capitalized interest primarily related to new power plants in service	 	 	(30	)	
Higher depreciation and amortization primarily related to new power plants and increased plant assets, partially offset by lower regulatory asset amortization	 	 	(17	)	
Higher taxes other than income taxes due to increased property taxes on higher property balances	 	 	(6	)	
Lower real estate segment gross margin primarily due to lower commercial and property management sales, partially offset by higher home sales	 	 	(4	)	
Lower other expense primarily related to prior period non-operating costs	 	 	11	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations before income taxes	 	 	(269	)	
Lower income taxes primarily due to lower income	 	 	109	 	
 	 	 	 		 	
 	Net decrease in income from continuing operations	 	 	(160	)	
Increase in income from discontinued operations related to SunCor – net of income tax (see “Real Estate Activities” below)	 	 	1	 	
Increase due to cumulative effect of a change in accounting for derivatives – net of income tax	 	 	12	 	
Decrease due to cumulative effect of a change in accounting for trading activities – net of income tax	 	 	(66	)	
 	 	 	 		 	
 	Net decrease in net income	 	$	(213	)	
 	 	 	 		 	
12 

 

Regulated Electricity Segment Gross Margin
     Regulated electricity segment revenues related to our regulated retail and wholesale electricity businesses were $259 million lower in the twelve months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	an $18 million increase related to traditional wholesale sales as a result of higher prices and higher sales volumes;	
 		
 	•	 	a $281 million decrease related to retail load hedge management wholesale sales primarily as a result of lower prices and lower sales volumes;	
 		
 	•	 	a $27 million decrease in retail revenues related to reductions in retail electricity prices;	
 		
 	•	 	a $37 million decrease in retail revenues related to milder weather;	
 		
 	•	 	a $63 million increase in retail revenues related to customer growth and higher average usage, excluding weather effects; and	
 		
 	•	 	a $5 million net increase due to other miscellaneous factors.	
     Regulated electricity segment purchased power and fuel costs were $230 million lower in the twelve months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	an $18 million increase related to traditional wholesale sales as a result of higher prices and higher sales volumes;	
 		
 	•	 	a $257 million decrease related to retail load hedge management wholesale sales primarily as a result of lower prices and lower sales volumes;	
 		
 	•	 	a $37 million increase in purchased power and fuel costs due to higher hedged gas and power prices;	
 		
 	•	 	a $14 million decrease related to the effects of milder weather on retail sales;	
 		
 	•	 	a $19 million increase related to customer growth, excluding weather effects;	
 		
 	•	 	a $13 million net decrease for charges in 2001 related to purchased power contracts with Enron and its affiliates; and	
 		
 	•	 	a $20 million decrease in purchased power costs due to new power plants in service.	
Marketing and Trading Segment Gross Margin
     Marketing and trading segment revenues were $247 million higher in the twelve months ended June 30, 2003, compared with the same period in the prior year as a result of:

 	•	 	$98 million in lower mark-to-market gains for future delivery primarily as a result of lower market liquidity and lower price volatility;	
 		
 	•	 	$117 million of higher realized wholesale revenues primarily due to higher volumes, partially offset by lower prices;	
 		
 	•	 	a $111 million increase from higher competitive retail sales in California by APS Energy Services;	
 		
 	•	 	$25 million of higher revenues related to the adoption of EITF 02-3;	
 		
 	•	 	an $84 million increase from generation sales other than Native Load primarily due to higher sales volumes and higher prices; and	
 		
 	•	 	an $8 million increase due to the 2001 write-off of prior period mark-to-market value related to trading with Enron and its affiliates.	
13 

 

     Marketing and trading segment purchased power and fuel costs were $306 million higher in the twelve months ended June 30, 2003, compared to the same period in the prior year as a result of:

 	•	 	a $147 million increase in purchased power costs related to other realized marketing activities in the current period primarily due to higher volumes and higher prices;	
 		
 	•	 	an $83 million increase in purchased power costs related to higher competitive retail sales in California by APS Energy Services; and	
 		
 	•	 	a $76 million increase in fuel costs related to generation sales other than Native Load primarily because of higher sales volumes and higher natural gas prices.	
Other Income Statement Items
     The increase in operations and maintenance expense of $94 million was due to a $47 million write-off related to the cancellation of Redhawk Units 3 and 4, severance costs of $36 million related to a 2002 voluntary workforce reduction, increased pension and other benefit costs of $17 million, new power plants in service of $17 million and other costs of $1 million, partially offset by lower costs related to generation reliability of $25 million.
     The decrease in other gross margin of $37 million was primarily due to losses on El Dorado’s investment in NAC, partially offset by increased margin on APS Energy Services’ non-commodity sales. Total NAC losses for the twelve month period ended June 30, 2003 totaled approximately $47 million on a pretax basis and were primarily related to contracts with two customers. We reversed $5 million of loss reserves in the first quarter of 2003 related to NAC’s settlement of one of those contracts. We believe we have reserved our exposure with respect to these contracts in all material respects and, as a result, we consider these charges to be non-recurring.
     The decrease in other expense of $7 million is primarily related to the absence of NAC losses of $4 million in 2003 recorded as other expense and prior period non-operating costs.
     Net interest expense increased $30 million primarily because of higher debt balances related to our generation construction program and lower capitalized interest on our generation construction program due to completion of Redhawk Units 1 and 2 in mid-2002.
     The increase in depreciation and amortization expense of $17 million primarily related to new power plants and increased plant assets, partially offset by lower regulatory amortization.
     The increase in taxes other than income taxes of $6 million is primarily due to increased property taxes on higher property balances.
     The decrease in real estate segment gross margin of $4 million was primarily due to lower commercial and property management sales, partially offset by higher home sales activities. In addition, as discussed in “Real Estate Activities” below, SunCor had a $14 million ($8 million after tax) gain on the sale of its water utility company included in discontinued operations for the twelve months ended June 30, 2003 and a $12 million ($7 million after tax) gain related primarily to the sale of a retail center included in discontinued operations in the twelve months ended June 30, 2002.
14 

 

Real Estate Activities
     As discussed in our 2002 10-K, we have undertaken an aggressive effort to accelerate asset sales activities to approximately double SunCor’s annual earnings in 2003 to 2005 compared with the $19 million in earnings recorded in 2002.
     Certain components of SunCor’s real estate sales activities, which are included in the real estate segment, may be required to be reported as discontinued operations on our Condensed Consolidated Statements of Income in accordance with SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” Among other things, SFAS No. 144 prescribes accounting for discontinued operations and defines certain real estate activities as discontinued operations. We adopted SFAS No. 144 effective January 1, 2002 and determined that activities that would have required discontinued operations reporting in 2002, 2001 and 2000 were immaterial. We currently estimate that 15% to 30% of SunCor’s net income in 2003 will be reported in discontinued operations; however, this ultimately depends on the specific properties sold.
     In the first quarter of 2003, SunCor sold its water utility company, which resulted in an after tax gain of $5 million ($8 million pretax). The gain on the sale and operating income in the current and prior periods are classified as discontinued operations on our Condensed Consolidated Statements of Income.
     In the second quarter of 2002, SunCor sold a retail center, but maintained a significant continuing involvement through a management contract. In the first quarter of 2003, this management contract was canceled. As a result, the gain on the 2002 sale and the operating income related to this property have been reclassified as discontinued operations. The income from discontinued operations in the three, six and twelve months ended June 30, 2002 primarily reflects this sale.
     The following chart provides a summary of SunCor’s earnings (after income taxes) for the three, six and twelve months ended June 30, 2003 and the comparable prior periods (dollars in millions): 

 	 	Three Months	 	Six Months	 	Twelve Months	
 	 	Ended	 	Ended	 	Ended	
 	 	June 30,	 	June 30,	 	June 30,	
 	 		 		 		
 	 	2003	 	2002	 	2003	 	2002	 	2003	 	2002	
 	 		 		 		 		 		 		
Income from continuing operations	 	$	2	 	 	$	2	 	 	$	4	 	 	$	3	 	 	$	10	 	 	$	6	 	
Income from discontinued operations	 	 	1	 	 	 	6	 	 	 	6	 	 	 	7	 	 	 	8	 	 	 	7	 	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Net income	 	$	3	 	 	$	8	 	 	$	10	 	 	$	10	 	 	$	18	 	 	$	13	 	
 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	 	 		 	
Forward-Looking Statements
     This document 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. These forward-looking statements are often identified by words such as “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,”
15 

 

“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, 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 and legislative proceedings relating to the restructuring; state and federal regulatory and legislative decisions and actions, including the outcome of the rate case we filed with the ACC on June 27, 2003 and the wholesale electric price mitigation plan adopted by the FERC; 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; weather variations affecting local and regional customer energy usage; conservation programs; power plant performance; the successful completion of our generation construction program; regulatory issues associated with generation construction, such as permitting and licensing; our ability to compete successfully outside traditional regulated markets (including the wholesale market); our ability to manage our marketing and trading activities and the use of derivative contracts in our business; technological developments in the electric industry; the performance of the stock market, which affects the amount of our required contributions to our pension plan and nuclear decommissioning trust funds; the strength of the real estate market in SunCor’s market areas, which include Arizona, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond our control.
16 

 

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

 	 	 	 	THREE MONTHS ENDED	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	June 30,	 	Increase (Decrease)	
 	 	 	 	2003	 	2002	 	Amount	 	Percent	 	 	 	 	
 	 	 	 		 		 		 		 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment	 	$	506,632	 	 	$	496,838	 	 	$	9,794	 	 	 	2.0	%	 	 	B	 	
 	Marketing and trading segment	 	 	167,475	 	 	 	49,503	 	 	 	117,972	 	 	 	238.3	%	 	 	B	 	
 	Real estate segment	 	 	57,189	 	 	 	44,294	 	 	 	12,895	 	 	 	29.1	%	 	 	B	 	
 	Other revenues	 	 	26,187	 	 	 	2,881	 	 	 	23,306	 	 	 	809.0	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	 	Total	 	 	757,483	 	 	 	593,516	 	 	 	163,967	 	 	 	27.6	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment purchased power and fuel	 	 	124,108	 	 	 	104,591	 	 	 	19,517	 	 	 	18.7	%	 	 	W	 	
 	Marketing and trading segment purchased power and fuel	 	 	147,698	 	 	 	30,479	 	 	 	117,219	 	 	 	384.6	%	 	 	W	 	
 	Operations and maintenance	 	 	141,519	 	 	 	128,996	 	 	 	12,523	 	 	 	9.7	%	 	 	W	 	
 	Real estate operations segment	 	 	53,942	 	 	 	42,532	 	 	 	11,410	 	 	 	26.8	%	 	 	W	 	
 	Depreciation and amortization	 	 	107,076	 	 	 	101,786	 	 	 	5,290	 	 	 	5.2	%	 	 	W	 	
 	Taxes other than income taxes	 	 	28,149	 	 	 	27,632	 	 	 	517	 	 	 	1.9	%	 	 	W	 	
 	Other expenses	 	 	22,509	 	 	 	1,668	 	 	 	20,841	 	 	 	1249.5	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	 	Total	 	 	625,001	 	 	 	437,684	 	 	 	187,317	 	 	 	42.8	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Income	 	 	132,482	 	 	 	155,832	 	 	 	(23,350	)	 	 	15.0	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Other income	 	 	2,698	 	 	 	3,987	 	 	 	(1,289	)	 	 	32.3	%	 	 	W	 	
 	Other expense	 	 	(5,157	)	 	 	(13,020	)	 	 	7,863	 	 	 	60.4	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	 	Total	 	 	(2,459	)	 	 	(9,033	)	 	 	6,574	 	 	 	72.8	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest charges	 	 	51,117	 	 	 	46,764	 	 	 	4,353	 	 	 	9.3	%	 	 	W	 	
 	Capitalized interest	 	 	(11,231	)	 	 	(13,908	)	 	 	2,677	 	 	 	19.2	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	 	Total	 	 	39,886	 	 	 	32,856	 	 	 	7,030	 	 	 	21.4	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income From Continuing Operations Before Income Taxes	 	 	90,137	 	 	 	113,943	 	 	 	(23,806	)	 	 	20.9	%	 	 	W	 	
Income Taxes	 	 	35,248	 	 	 	45,140	 	 	 	(9,892	)	 	 	21.9	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income From Continuing Operations	 	 	54,889	 	 	 	68,803	 	 	 	(13,914	)	 	 	20.2	%	 	 	W	 	
Income From Discontinued Operations - Net of Income Tax Expense	 	 	1,253	 	 	 	6,562	 	 	 	(5,309	)	 	 	80.9	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Net Income	 	$	56,142	 	 	$	75,365	 	 	$	(19,223	)	 	 	25.5	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding - Basic	 	 	91,258	 	 	 	84,794	 	 	 	6,464	 	 	 	7.6	%	 	 	 	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	91,450	 	 	 	84,926	 	 	 	6,524	 	 	 	7.7	%	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income From Continuing Operations - Basic	 	$	0.60	 	 	$	0.81	 	 	$	(0.21	)	 	 	25.9	%	 	 	W	 	
 	Net Income - Basic	 	$	0.62	 	 	$	0.89	 	 	$	(0.27	)	 	 	30.3	%	 	 	W	 	
 	Income From Continuing Operations - Diluted	 	$	0.60	 	 	$	0.81	 	 	$	(0.21	)	 	 	25.9	%	 	 	W	 	
 	Net Income - Diluted	 	$	0.61	 	 	$	0.89	 	 	$	(0.28	)	 	 	31.5	%	 	 	W	 	

 	 	Certain prior year amounts have been restated to conform to the 2003 presentation.	
 		
 	 	          B — Better	
 		
 	 	          W — Worse	

 

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

 	 	 	SIX MONTHS ENDED	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	June 30,	 	Increase (Decrease)	 	 	 	 	
 	 	 	2003	 	2002	 	Amount	 	Percent	 	 	 	 	
 	 	 		 		 		 		 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment	 	$	891,592	 	 	$	877,079	 	 	$	14,513	 	 	 	1.7	%	 	 	B	 	
 	Marketing and trading segment	 	 	330,218	 	 	 	125,318	 	 	 	204,900	 	 	 	163.5	%	 	 	B	 	
 	Real estate segment	 	 	97,877	 	 	 	83,805	 	 	 	14,072	 	 	 	16.8	%	 	 	B	 	
 	Other revenues	 	 	41,758	 	 	 	7,158	 	 	 	34,600	 	 	 	483.4	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	1,361,445	 	 	 	1,093,360	 	 	 	268,085	 	 	 	24.5	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment purchased power and fuel	 	 	198,779	 	 	 	166,122	 	 	 	32,657	 	 	 	19.7	%	 	 	W	 	
 	Marketing and trading segment purchased power and fuel	 	 	291,343	 	 	 	66,264	 	 	 	225,079	 	 	 	339.7	%	 	 	W	 	
 	Operations and maintenance	 	 	274,636	 	 	 	246,426	 	 	 	28,210	 	 	 	11.4	%	 	 	W	 	
 	Real estate operations segment	 	 	94,101	 	 	 	79,178	 	 	 	14,923	 	 	 	18.8	%	 	 	W	 	
 	Depreciation and amortization	 	 	212,474	 	 	 	201,442	 	 	 	11,032	 	 	 	5.5	%	 	 	W	 	
 	Taxes other than income taxes	 	 	56,645	 	 	 	54,390	 	 	 	2,255	 	 	 	4.1	%	 	 	W	 	
 	Other expenses	 	 	31,730	 	 	 	4,970	 	 	 	26,760	 	 	 	538.4	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	1,159,708	 	 	 	818,792	 	 	 	340,916	 	 	 	41.6	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Income	 	 	201,737	 	 	 	274,568	 	 	 	(72,831	)	 	 	26.5	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Other income	 	 	8,353	 	 	 	7,113	 	 	 	1,240	 	 	 	17.4	%	 	 	B	 	
 	Other expense	 	 	(9,288	)	 	 	(16,074	)	 	 	6,786	 	 	 	42.2	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	(935	)	 	 	(8,961	)	 	 	8,026	 	 	 	89.6	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Interest Expense	 	
 	Interest charges	 	 	98,968	 	 	 	91,283	 	 	 	7,685	 	 	 	8.4	%	 	 	W	 	
 	Capitalized interest	 	 	(21,210	)	 	 	(27,767	)	 	 	6,557	 	 	 	23.6	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	77,758	 	 	 	63,516	 	 	 	14,242	 	 	 	22.4	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income From Continuing Operations Before Income Taxes	 	 	123,044	 	 	 	202,091	 	 	 	(79,047	)	 	 	39.1	%	 	 	W	 	
Income Taxes	 	 	48,002	 	 	 	80,037	 	 	 	(32,035	)	 	 	40.0	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income From Continuing Operations	 	 	75,042	 	 	 	122,054	 	 	 	(47,012	)	 	 	38.5	%	 	 	W	 	
Income From Discontinued Operations - Net of Income Tax Expense	 	 	6,398	 	 	 	7,068	 	 	 	(670	)	 	 	9.5	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Net Income	 	$	81,440	 	 	$	129,122	 	 	$	(47,682	)	 	 	36.9	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding - Basic	 	 	91,257	 	 	 	84,769	 	 	 	6,488	 	 	 	7.7	%	 	 	 	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	91,402	 	 	 	84,910	 	 	 	6,492	 	 	 	7.6	%	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income From Continuing Operations - Basic	 	$	0.82	 	 	$	1.44	 	 	$	(0.62	)	 	 	43.1	%	 	 	W	 	
 	Net Income - Basic	 	$	0.89	 	 	$	1.52	 	 	$	(0.63	)	 	 	41.4	%	 	 	W	 	
 	Income From Continuing Operations - Diluted	 	$	0.82	 	 	$	1.44	 	 	$	(0.62	)	 	 	43.1	%	 	 	W	 	
 	Net Income - Diluted	 	$	0.89	 	 	$	1.52	 	 	$	(0.63	)	 	 	41.4	%	 	 	W	 	

 	 	Certain prior year amounts have been restated to conform to the 2003 presentation.	
 		
 	 	          B — Better	
 		
 	 	          W — Worse	

 

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

 	 	 	TWELVE MONTHS ENDED	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	June 30,	 	Increase (Decrease)	 	 	 	 	
 	 	 	2003	 	2002	 	Amount	 	Percent	 	 	 	 	
 	 	 		 		 		 		 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment	 	$	2,027,536	 	 	$	2,287,043	 	 	$	(259,507	)	 	 	11.3	%	 	 	W	 	
 	Marketing and trading segment	 	 	530,831	 	 	 	284,412	 	 	 	246,419	 	 	 	86.6	%	 	 	B	 	
 	Real estate segment	 	 	215,153	 	 	 	187,924	 	 	 	27,229	 	 	 	14.5	%	 	 	B	 	
 	Other revenues	 	 	96,537	 	 	 	15,733	 	 	 	80,804	 	 	 	513.6	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	2,870,057	 	 	 	2,775,112	 	 	 	94,945	 	 	 	3.4	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Regulated electricity segment purchased power and fuel	 	 	532,200	 	 	 	762,536	 	 	 	(230,336	)	 	 	30.2	%	 	 	B	 	
 	Marketing and trading segment purchased power and fuel	 	 	419,118	 	 	 	113,332	 	 	 	305,786	 	 	 	269.8	%	 	 	W	 	
 	Operations and maintenance	 	 	612,748	 	 	 	519,132	 	 	 	93,616	 	 	 	18.0	%	 	 	W	 	
 	Real estate operations segment	 	 	200,848	 	 	 	169,195	 	 	 	31,653	 	 	 	18.7	%	 	 	W	 	
 	Depreciation and amortization	 	 	435,114	 	 	 	418,435	 	 	 	16,679	 	 	 	4.0	%	 	 	W	 	
 	Taxes other than income taxes	 	 	110,207	 	 	 	104,693	 	 	 	5,514	 	 	 	5.3	%	 	 	W	 	
 	Other expenses	 	 	131,719	 	 	 	13,854	 	 	 	117,865	 	 	 	850.8	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	2,441,954	 	 	 	2,101,177	 	 	 	340,777	 	 	 	16.2	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Operating Income	 	 	428,103	 	 	 	673,935	 	 	 	(245,832	)	 	 	36.5	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Other income	 	 	14,937	 	 	 	16,230	 	 	 	(1,293	)	 	 	8.0	%	 	 	W	 	
 	Other expense	 	 	(25,656	)	 	 	(33,146	)	 	 	7,490	 	 	 	22.6	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	(10,719	)	 	 	(16,916	)	 	 	6,197	 	 	 	36.6	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest charges	 	 	195,197	 	 	 	180,533	 	 	 	14,664	 	 	 	8.1	%	 	 	W	 	
 	Capitalized interest	 	 	(37,192	)	 	 	(52,675	)	 	 	15,483	 	 	 	29.4	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
 	Total	 	 	158,005	 	 	 	127,858	 	 	 	30,147	 	 	 	23.6	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income Before Continuing Operations Before Income Taxes	 	 	259,379	 	 	 	529,161	 	 	 	(269,782	)	 	 	51.0	%	 	 	W	 	
Income Taxes	 	 	100,193	 	 	 	208,802	 	 	 	(108,609	)	 	 	52.0	%	 	 	B	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Income From Continuing Operations	 	 	159,186	 	 	 	320,359	 	 	 	(161,173	)	 	 	50.3	%	 	 	W	 	
Income From Discontinued Operations - Net of Income Tax Expense	 	 	8,285	 	 	 	7,068	 	 	 	1,217	 	 	 	17.2	%	 	 	B	 	
Cumulative Effect of a Change in Accounting for Derivatives - Net of Income Tax Benefit	 	 	—	 	 	 	(12,446	)	 	 	12,446	 	 	 	100.0	%	 	 	B	 	
Cumulative Effect of a Change in Accounting for Trading Activities - Net of Income Tax Benefit	 	 	(65,745	)	 	 	—	 	 	 	(65,745	)	 	 	100.0	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Net Income	 	$	101,726	 	 	$	314,981	 	 	$	(213,255	)	 	 	67.7	%	 	 	W	 	
 	 	 		 	 	 		 	 	 		 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding - Basic	 	 	88,121	 	 	 	84,734	 	 	 	3,387	 	 	 	4.0	%	 	 	 	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	88,276	 	 	 	84,888	 	 	 	3,388	 	 	 	4.0	%	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income From Continuing Operations - Basic	 	$	1.81	 	 	$	3.78	 	 	$	(1.97	)	 	 	52.1	%	 	 	W	 	
 	Net Income - Basic	 	$	1.15	 	 	$	3.72	 	 	$	(2.57	)	 	 	69.1	%	 	 	W	 	
 	Income From Continuing Operations - Diluted	 	$	1.80	 	 	$	3.77	 	 	$	(1.97	)	 	 	52.3	%	 	 	W	 	
 	Net Income - Diluted	 	$	1.15	 	 	$	3.71	 	 	$	(2.56	)	 	 	69.0	%	 	 	W	 	

Certain prior year amounts have been restated to conform to the 2003 presentation.	
 		
 	 	B — Better	
 		
 	 	W — Worse	

 
Exhibit 99.9
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.	

 

- 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.	
 	 	 	
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.	

 

- 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.	

 

- 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.	

 

 	 	 	 	 	
FOR IMMEDIATE RELEASE	 	July 28, 2003	
Media Contact:	 	Alan Bunnell, (602) 250-3376	 	Page 1 of 2	
Analyst Contacts:	 	Rebecca Hickman, (602) 250-5668
Lisa Malagon, (602) 250-5671	 	 	
Website:	 	www.pinnaclewest.com	 	 	
PINNACLE WEST REPORTS LOWER SECOND QUARTER EARNINGS;
REDUCES 2003 EARNINGS GUIDANCE
PHOENIX – Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended June 30, 2003, of $56.1 million or $0.61 per diluted share of common stock. The result compares with net income of $75.4 million or $0.89 per share for the same quarter a year ago.
The lower earnings were primarily the result of higher natural gas and purchased power costs at Arizona Public Service (APS) to serve retail electricity customers. Compared with the second quarter of 2002, for instance, the cost of natural gas to run the Company’s plants increased from $15 million to $30 million – a 100 percent increase.
“While clearly not desirable earnings, the results include the cost of gas hedges purchased in early 2001 during the western energy crisis,” Chairman Bill Post said. “In addition to the higher gas prices, our gas plants produced more than twice their output of a year ago to meet the growing electricity needs of our customers.”
In order to meet Arizona’s growth of three times the national average, the Company has built several new plants and added about 3,000 miles of transmission and distribution lines over the last several years – all designed to meet growing customer demand with the highest level of reliable service.
Other factors affecting the quarterly comparison included a $5 million increase in expenses, net of the benefit of reduced purchased power, related to three new power plant units placed into service in mid-2002; an increase of $4 million in pension and other related benefit costs; and $4 million for a 1.5 percent retail electricity price decrease related to the Company’s 1999 regulatory settlement agreement. These factors were partially offset by 3.1 percent retail customer growth of $8 million; and lower regulatory asset amortization of $4 million.
A substantial deterioration in the western wholesale power market over the last few months has caused the Company to reduce its 2003 earnings estimate to a range of $2.55 to $2.85 per share. This deterioration was driven by a 15 to 20 percent reduction in margins (known in the industry as “spark spreads”), and by a reduction in market liquidity attributable to fewer creditworthy counterparties and the decision of several key

 

 	 	 	
Pinnacle West 2003 Second Quarter Earnings	 	July 28, 2003
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market participants to reduce their activities or exit the market entirely. The Company’s revised earnings estimate assumes 2003 power marketing and trading contributions, although still profitable, will be down 75 percent from 2002 levels.
For 2004, the Company anticipates earnings to be in the range of $2.85 to $3.15 per share, reflecting a return to earnings growth related to the scheduled completion of regulatory asset amortization, and continuing customer growth of about three times the national average. Marketing and trading contributions in 2004 are expected to be comparable to the levels assumed in the Company’s 2003 earnings estimate.
All dollar amounts included in this release are reported after income tax effects. For more information on Pinnacle West’s operating and financial statistics, please visit www.pinnaclewest.com/investor/default_opstats.asp.
Pinnacle West is a Phoenix-based company with consolidated assets of approximately $9 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
Webcast and Conference Call
 The Company will hold a conference call and live webcast at 12:00 noon (ET) today, Monday, July 28 to discuss its earnings and recent developments. The webcast will be at www.pinnaclewest.com/investor/presentations and will be available for replay on the website for 30 days. To access the conference call by telephone dial (877) 356-3961 and enter reservation number 1571133. A replay of the call also will be available until 12:00 midnight (ET), Monday, August 4, 2003, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number.
This press release contains forward-looking statements based on current expectations, and the Company assumes no 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 “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume,” and similar words. Because actual results may differ materially from expectations, the Company cautions 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 the Company. These factors include 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 and legislative proceedings relating to the restructuring, including the outcome of the rate case APS filed with the Arizona Corporation Commission on June 27, 2003 and the wholesale electric price mitigation plan adopted by the FERC; state and federal regulatory and legislative decisions and actions, including price caps and other market constraints imposed by the FERC; 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; energy usage; weather variations affecting local and regional customer energy usage; conservation programs; power plant performance; the successful completion of our generation construction program; regulatory issues associated with generation construction , such as permitting and licensing; our ability to compete successfully outside traditional regulated markets (including the wholesale market);our ability to manage our marketing and trading activities and the use of derivative contracts in our business; technological developments in the electric industry; the performance of the stock market, which affects the amount of our required contributions to our pension plan and nuclear decommissioning trust funds; the strength of the real estate market in SunCor’s market areas, which include Arizona, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond our control.