Table of Contents

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): June 30, 2007
 	 	 	 	 	
 	 	Exact Name of Registrant as Specified in	 	 	
 	 	Charter; State of Incorporation;	 	IRS Employer	
Commission File Number	 	Address and Telephone Number	 	Identification Number	
 	 	 	 	 	
1-8962	 	Pinnacle West Capital Corporation
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000	 	86-0512431	
 	 	 	 	 	
1-4473	 	Arizona Public Service Company
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000	 	86-0011170	
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

      o	 	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	
 		
      o	 	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	
 		
      o	 	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	
 		
      o	 	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
     This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

   

TABLE OF CONTENTS

									
	Item 2.02. Results of Operations and Financial Condition	
	Item 7.01. Regulation FD Disclosure	
	Item 9.01. Financial Statements and Exhibits	
SIGNATURES	
Exhibit Index	
EX-99.1	
EX-99.2	
EX-99.3	
EX-99.4	
EX-99.5	
EX-99.6	
EX-99.7	
EX-99.8	
EX-99.9	
EX-99.10	

Table of Contents
 
Item 2.02. Results of Operations and Financial Condition
     On July 26, 2007, Pinnacle West Capital Corporation (the “Company” or “Pinnacle West”) issued a press release regarding its financial results for its fiscal quarter ended June 30, 2007. A copy of the press release is attached hereto as Exhibit 99.9.
     Certain of the Information referenced in Item 7.01 below relates to the Company’s results of operations for its fiscal quarter ended June 30, 2007. This Information is attached hereto as Exhibits 99.2, 99.3, 99.7, 99.9, and 99.10.
Item 7.01. Regulation FD Disclosure
Financial and Business Information
     The Company is providing quarterly consolidated statistical summaries, earnings variance explanations, and a glossary of relevant terms (collectively, “Information”) to help interested parties better understand its business (see Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6, 99.7, 99.8 and 99.10). This Information is concurrently being posted to the Company’s website at www.pinnaclewest.com . The Information may not represent all of the factors that could affect the Company’s operating or financial results for various periods. Some of the Information is preliminary in nature and could be subject to significant adjustment. Some of the Information is based on information received from third parties and may contain inaccuracies. The Company is not responsible for any such inaccuracies. Although the Company may update or correct the Information if it is aware that such Information has been revised or is inaccurate, the Company assumes no obligation to update or correct the Information and reserves the right to discontinue the provision of all or any portion of the Information at any time or to change the type of Information provided.
2007 Earnings Outlook
     We are updating Pinnacle West’s 2007 earnings outlook in light of the recent Arizona Corporation Commission (“ACC”) decision in APS’ general retail rate case. See “APS General Rate Case and Power Supply Adjustor” in Item 8.01 of the Pinnacle West/APS Report on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) on June 20, 2007 for additional information about the ACC decision. In this discussion, earnings per share amounts are after income taxes and are based on diluted common shares outstanding. The earnings guidance in this Form 8-K supersedes all previous earnings guidance provided by Pinnacle West. Our earnings forecasts are subject to numerous risks, including those described under “Forward-Looking Statements” below.
     We currently estimate that our consolidated earnings for 2007 will be within a reasonable range of $2.55 per share. We estimate that APS’ earnings contribution included in such 2007 consolidated earnings will be within a reasonable range of $2.25 per share (equivalent to a return on APS’ average common equity of 7.5%). These estimates include the $8 million after-tax ($0.08 per share) regulatory disallowance recorded in the second quarter of 2007 as a result of the general rate case decision. We currently estimate that net income for 2007 for our real estate subsidiary, SunCor Development Company (“SunCor”) will be approximately $30 million.
     We previously estimated that our base level of consolidated earnings for 2007, before considering any potential earnings benefit derived from a base rate increase effective at any time during 2007, would be within a reasonable range of $2.45 per share. See the Pinnacle West/APS Report on Form 8-K filed with the SEC on January 30, 2007 for further information on our prior 2007 guidance. Our current guidance differs from our prior guidance principally due to the following factors, all of which relate to implementation of the retail rate decision effective July 1, 2007:
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 	•	 	The annualized pretax non-fuel rate increase of $7 million approved by the ACC increased our estimate $0.02 per share;	
 		
 	•	 	The increase in the base fuel rate approved by the ACC increased our estimate $0.11 per share because of the PSA sharing arrangement (under which APS absorbs 10% of variances between actual retail fuel and purchase power costs and the base fuel rate); and	
 		
 	•	 	The regulatory disallowance decreased our estimate $0.08 per share.	
Forward-Looking Statements
     This Form 8-K contains forward-looking statements regarding our 2007 earnings outlook. Neither the Company nor APS assumes any obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by Pinnacle West or APS. In addition to the Risk Factors described in Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2006, these factors include, but are not limited to, state and federal regulatory and legislative decisions and actions; the ongoing restructuring of the electric industry, including the introduction of retail electric competition in Arizona and decisions impacting wholesale competition; the outcome of regulatory, legislative and judicial proceedings, both current and future, relating to the restructuring; market prices for electricity and natural gas; power plant performance and outages; transmission outages and constraints; weather variations affecting local and regional customer energy usage; customer growth and energy usage; regional economic and market conditions, including the results of litigation and other proceedings resulting from the California energy situation, volatile fuel and purchased power costs and the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital and access to capital markets; current credit ratings remaining in effect for any given period of time; our ability to compete successfully outside traditional regulated markets (including the wholesale market); the performance of our marketing and trading activities due to volatile market liquidity and any deteriorating counterparty credit and the use of derivative contracts in our business (including the interpretation of the subjective and complex accounting rules related to these contracts); changes in accounting principles generally accepted in the United States of America and the interpretation of those principles; the performance of the stock market and the changing interest rate environment, which affect the value of our nuclear decommissioning trust, pension, and other postretirement benefit plans assets, the amount of required contributions to Pinnacle West’s pension plan and contributions to APS’ nuclear decommissioning trust funds, as well as the reported costs of providing pension and other postretirement benefits; technological developments in the electric industry; the strength of the real estate market in SunCor’s market areas, which include Arizona, Idaho, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of Pinnacle West and APS.
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Item 9.01. Financial Statements and Exhibits
      (d) Exhibits.
 	 	 	 	 	
Exhibit	 	 	 	 	
No.	 	Registrant(s)	 	Description	
 	 	 	 	 	
99.1	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	 	 	
99.2	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the three-month and six-month periods ended June 30, 2007 and 2006.	
 	 	 	 	 	
99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.	
 	 	 	 	 	
99.4	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.	
 	 	 	 	 	
99.5	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	 	 	
99.6	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	 	 	
99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for the three and six months ended June 30, 2007 and 2006 and unaudited condensed consolidated statements of income for the three and six months ended June 30, 2007 and 2006.	
 	 	 	 	 	
99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	
99.9	 	Pinnacle West
APS	 	Earnings News Release issued on July 26, 2007.	
 	 	 	 	 	
99.10	 	Pinnacle West
APS	 	Non-GAAP Financial Measure Reconciliation - Operating Income (GAAP measure) to Gross Margin (non-GAAP financial measure).	
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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 	 	 	 	 	
 	PINNACLE WEST CAPITAL CORPORATION
(Registrant)
 	 	
Dated: July 26, 2007 	By:  	/s/ Donald E. Brandt	 	
 	 	Donald E. Brandt	 	
 	 	Executive Vice President and
Chief Financial Officer 	 	

 	ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
 	 	
Dated: July 26, 2007 	By:  	/s/ Donald E. Brandt  	 	
 	 	Donald E. Brandt 	 	
 	 	President and Chief Financial Officer 	 	
 	
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Exhibit Index
 	 	 	 	 	
Exhibit	 	 	 	 	
No.	 	Registrant(s)	 	Description	
 	 	 	 	 	
99.1	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	 	 	
99.2	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the six-month periods ended June 30, 2007 and 2006.	
 	 	 	 	 	
99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2007.	
 	 	 	 	 	
99.4	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.	
 	 	 	 	 	
99.5	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	 	 	
99.6	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	 	 	
99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for the three and six months ended June 30, 2007 and 2006 and unaudited condensed consolidated statements of income for the three and six months ended June 30, 2007 and 2006.	
 	 	 	 	 	
99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
 	 	 	 	 	
99.9	 	Pinnacle West
APS	 	Earnings News Release issued on July 26, 2007.	
 	 	 	 	 	
99.10	 	Pinnacle West
APS	 	Non-GAAP Financial Measure Reconciliation — Operating Income (GAAP measure) to Gross Margin (non-GAAP financial measure).	

 

Exhibit 99.1
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
List of Contents
 
2007 Second Quarter Summary
2007 by Quarter
2006 by Quarter
2005 by Quarter
2004 by Quarter
 
Quarters may not sum to totals due to rounding.
The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2007Q2QuarStatsGloss.pdf
This statistical data may be graphed in various quarterly or annual comparisons
using the “Interactive Charts” tool on the Pinnacle West website at:
http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/landing.html

Exhibit 99.2
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	75	 	 	$	94	 	 	$	(19	)	 	$	79	 	 	$	88	 	 	$	(9	)	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
3	 	APS Energy Services	 	 	(1	)	 	 	—	 	 	 	(1	)	 	 	—	 	 	 	1	 	 	 	(1	)	
4	 	SunCor	 	 	—	 	 	 	8	 	 	 	(8	)	 	 	8	 	 	 	30	 	 	 	(22	)	
5	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(2	)	 	 	—	 	
6	 	Parent Company	 	 	5	 	 	 	9	 	 	 	(4	)	 	 	9	 	 	 	5	 	 	 	4	 	

7	 	Income From Continuing Operations	 	 	79	 	 	 	111	 	 	 	(32	)	 	 	94	 	 	 	122	 	 	 	(28	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(1	)	
9	 	SunCor	 	 	—	 	 	 	1	 	 	 	(1	)	 	 	2	 	 	 	2	 	 	 	—	 	
10	 	NAC	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	—	 	 	 	1	 	 	 	(1	)	 	 	2	 	 	 	3	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	79	 	 	$	112	 	 	$	(33	)	 	$	96	 	 	$	125	 	 	$	(29	)	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
13	 	Arizona Public Service	 	$	0.75	 	 	$	0.95	 	 	$	(0.20	)	 	$	0.79	 	 	$	0.89	 	 	$	(0.10	)	
14	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
15	 	APS Energy Services	 	 	(0.01	)	 	 	—	 	 	 	(0.01	)	 	 	—	 	 	 	0.01	 	 	 	(0.01	)	
16	 	SunCor	 	 	—	 	 	 	0.07	 	 	 	(0.07	)	 	 	0.08	 	 	 	0.30	 	 	 	(0.22	)	
17	 	El Dorado	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.02	)	 	 	(0.02	)	 	 	—	 	
18	 	Parent Company	 	 	0.04	 	 	 	0.09	 	 	 	(0.05	)	 	 	0.09	 	 	 	0.05	 	 	 	0.04	 	

19	 	Income From Continuing Operations	 	 	0.78	 	 	 	1.11	 	 	 	(0.33	)	 	 	0.94	 	 	 	1.23	 	 	 	(0.29	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
21	 	SunCor	 	 	—	 	 	 	0.02	 	 	 	(0.02	)	 	 	0.01	 	 	 	0.02	 	 	 	(0.01	)	
22	 	NAC	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	—	 	 	 	0.02	 	 	 	(0.02	)	 	 	0.01	 	 	 	0.02	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.78	 	 	$	1.13	 	 	$	(0.35	)	 	$	0.95	 	 	$	1.25	 	 	$	(0.30	)	

25	 	BOOK VALUE PER SHARE	 	$	34.13	*	 	$	33.08	 	 	$	1.05	 	 	$	34.13	*	 	$	33.08	 	 	$	1.05	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	100,779	 	 	 	99,640	 	 	 	1,139	 	 	 	100,718	 	 	 	99,562	 	 	 	1,156	 	
27	 	End of Period	 	 	100,290	 	 	 	99,284	 	 	 	1,006	 	 	 	100,290	 	 	 	99,284	 	 	 	1,006	 	

*	 	Estimate	

See Glossary of Terms.	 	Page 2 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	335	 	 	$	337	 	 	$	(2	)	 	$	581	 	 	$	539	 	 	$	42	 	
29	 	Business	 	 	342	 	 	 	333	 	 	 	9	 	 	 	606	 	 	 	566	 	 	 	40	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	677	 	 	 	670	 	 	 	7	 	 	 	1,187	 	 	 	1,105	 	 	 	82	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	9	 	 	 	7	 	 	 	2	 	 	 	14	 	 	 	13	 	 	 	1	 	
32	 	Off-system sales	 	 	10	 	 	 	22	 	 	 	(12	)	 	 	17	 	 	 	34	 	 	 	(17	)	
33	 	Transmission for others	 	 	7	 	 	 	6	 	 	 	1	 	 	 	14	 	 	 	12	 	 	 	2	 	
34	 	Other miscellaneous services	 	 	8	 	 	 	8	 	 	 	—	 	 	 	15	 	 	 	15	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	711	 	 	 	713	 	 	 	(2	)	 	 	1,247	 	 	 	1,179	 	 	 	68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	93	 	 	 	90	 	 	 	3	 	 	 	165	 	 	 	175	 	 	 	(10	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	804	 	 	$	803	 	 	$	1	 	 	$	1,412	 	 	$	1,354	 	 	$	58	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	3,287	 	 	 	3,284	 	 	 	3	 	 	 	6,021	 	 	 	5,703	 	 	 	318	 	
39	 	Business	 	 	4,004	 	 	 	3,971	 	 	 	33	 	 	 	7,289	 	 	 	7,170	 	 	 	119	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	7,291	 	 	 	7,255	 	 	 	36	 	 	 	13,310	 	 	 	12,873	 	 	 	437	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	262	 	 	 	181	 	 	 	81	 	 	 	437	 	 	 	396	 	 	 	41	 	
42	 	Off-system sales	 	 	310	 	 	 	218	 	 	 	92	 	 	 	553	 	 	 	890	 	 	 	(337	)	
43	 	Retail load hedge management	 	 	254	 	 	 	622	 	 	 	(368	)	 	 	371	 	 	 	800	 	 	 	(429	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	8,117	 	 	 	8,276	 	 	 	(159	)	 	 	14,671	 	 	 	14,959	 	 	 	(288	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	2,606	 	 	 	3,862	 	 	 	(1,256	)	 	 	4,663	 	 	 	7,824	 	 	 	(3,161	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	10,723	 	 	 	12,138	 	 	 	(1,415	)	 	 	19,334	 	 	 	22,783	 	 	 	(3,449	)	

 	 	 	
See Glossary of Terms.	 	Page 3 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	118	 	 	$	169	 	 	$	(51	)	 	$	160	 	 	$	173	 	 	$	(13	)	
48	 	Deferred fuel and purchased power costs — current period	 	 	104	 	 	 	78	 	 	 	26	 	 	 	129	 	 	 	91	 	 	 	38	 	
49	 	Regulatory disallowance	 	 	(14	)	 	 	—	 	 	 	(14	)	 	 	(14	)	 	 	—	 	 	 	(14	)	
50	 	Interest on deferred fuel	 	 	1	 	 	 	3	 	 	 	(2	)	 	 	3	 	 	 	4	 	 	 	(1	)	
51	 	Amounts recovered through revenues	 	 	(72	)	 	 	(75	)	 	 	3	 	 	 	(141	)	 	 	(93	)	 	 	(48	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	137	 	 	$	175	 	 	$	(38	)	 	$	137	 	 	$	175	 	 	$	(38	)	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	22	 	 	$	17	 	 	$	5	 	 	$	39	 	 	$	29	 	 	$	10	 	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	1	 	 	 	(1	)	 	 	2	 	 	 	(4	)	 	 	(3	)	 	 	(1	)	
55	 	Change in mark-to-market value of forward sales	 	 	(6	)	 	 	—	 	 	 	(6	)	 	 	(2	)	 	 	2	 	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	17	 	 	$	16	 	 	$	1	 	 	$	33	 	 	$	28	 	 	$	5	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	7	 	 	$	2	 	 	$	5	 	 	$	6	 	 	$	10	 	 	$	(4	)	
58	 	Pinnacle West Marketing & Trading (c)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	 	 	2	 	
59	 	Parent Company (c)	 	 	9	 	 	 	11	 	 	 	(2	)	 	 	19	 	 	 	12	 	 	 	7	 	
60	 	APS Energy Services	 	 	1	 	 	 	3	 	 	 	(2	)	 	 	6	 	 	 	6	 	 	 	—	 	
61	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total gross margin	 	$	17	 	 	$	16	 	 	$	1	 	 	$	33	 	 	$	28	 	 	$	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of June 30, 2007, Pinnacle West had accumulated net mark-to-market gains of $24 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2007, $7 million; and 2008, $17 million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2007. A $1 million realized loss is included in the $22 million on line 53 for the second quarter of 2007.	
 		
(b)	 	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.	
 		
(c)	 	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.	

See Glossary of Terms.	 	Page 4 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	962,095	 	 	 	930,402	 	 	 	31,693	 	 	 	963,762	 	 	 	930,601	 	 	 	33,161	 	
64	 	Business	 	 	119,792	 	 	 	114,803	 	 	 	4,989	 	 	 	119,220	 	 	 	114,187	 	 	 	5,033	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	1,081,887	 	 	 	1,045,205	 	 	 	36,682	 	 	 	1,082,982	 	 	 	1,044,788	 	 	 	38,194	 	
66	 	Wholesale customers	 	 	62	 	 	 	76	 	 	 	(14	)	 	 	63	 	 	 	76	 	 	 	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
67	 	Total customers	 	 	1,081,949	 	 	 	1,045,281	 	 	 	36,668	 	 	 	1,083,045	 	 	 	1,044,864	 	 	 	38,181	 	

68	 	Customer growth (% over prior year)	 	 	3.5	%	 	 	4.6	%	 	 	(1.1	)%	 	 	3.7	%	 	 	4.5	%	 	 	(0.8	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) — WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Residential	 	 	3,214	 	 	 	3,123	 	 	 	91	 	 	 	5,862	 	 	 	5,598	 	 	 	264	 	
70	 	Business	 	 	3,977	 	 	 	3,933	 	 	 	44	 	 	 	7,205	 	 	 	7,181	 	 	 	24	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Total	 	 	7,191	 	 	 	7,056	 	 	 	135	 	 	 	13,067	 	 	 	12,779	 	 	 	288	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Residential	 	 	3,417	 	 	 	3,530	 	 	 	(113	)	 	 	6,247	 	 	 	6,128	 	 	 	119	 	
73	 	Business	 	 	33,425	 	 	 	34,590	 	 	 	(1,165	)	 	 	61,139	 	 	 	62,792	 	 	 	(1,653	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Residential	 	 	3,340	 	 	 	3,357	 	 	 	(17	)	 	 	6,082	 	 	 	6,015	 	 	 	67	 	
75	 	Business	 	 	33,202	 	 	 	34,263	 	 	 	(1,061	)	 	 	60,435	 	 	 	62,889	 	 	 	(2,454	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	System peak demand	 	 	6,982	 	 	 	6,624	 	 	 	358	 	 	 	6,982	 	 	 	6,624	 	 	 	358	 	

See Glossary of Terms.	 	Page 5 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Nuclear	 	 	1,846	 	 	 	1,198	 	 	 	648	 	 	 	4,145	 	 	 	2,918	 	 	 	1,227	 	
78	 	Coal	 	 	3,265	 	 	 	3,182	 	 	 	83	 	 	 	6,429	 	 	 	6,265	 	 	 	164	 	
79	 	Gas, oil and other	 	 	1,517	 	 	 	2,000	 	 	 	(483	)	 	 	2,668	 	 	 	3,323	 	 	 	(655	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total generation production	 	 	6,628	 	 	 	6,380	 	 	 	248	 	 	 	13,242	 	 	 	12,506	 	 	 	736	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
81	 	Firm load	 	 	1,676	 	 	 	1,740	 	 	 	(64	)	 	 	1,954	 	 	 	2,105	 	 	 	(151	)	
82	 	Marketing and trading	 	 	3,055	 	 	 	4,597	 	 	 	(1,542	)	 	 	5,317	 	 	 	9,189	 	 	 	(3,872	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total purchased power	 	 	4,731	 	 	 	6,337	 	 	 	(1,606	)	 	 	7,271	 	 	 	11,294	 	 	 	(4,023	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Total energy sources	 	 	11,359	 	 	 	12,717	 	 	 	(1,358	)	 	 	20,513	 	 	 	23,800	 	 	 	(3,287	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
85	 	Nuclear	 	 	75	%	 	 	49	%	 	 	26	%	 	 	85	%	 	 	60	%	 	 	25	%	
86	 	Coal	 	 	86	%	 	 	84	%	 	 	2	%	 	 	85	%	 	 	83	%	 	 	2	%	
87	 	Gas, oil and other	 	 	21	%	 	 	28	%	 	 	(7	)%	 	 	19	%	 	 	23	%	 	 	(4	)%	
88	 	System average	 	 	49	%	 	 	48	%	 	 	1	%	 	 	50	%	 	 	47	%	 	 	3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Nuclear	 	 	266	 	 	 	553	 	 	 	(287	)	 	 	164	 	 	 	430	 	 	 	(266	)	
90	 	Coal	 	 	189	 	 	 	184	 	 	 	5	 	 	 	196	 	 	 	220	 	 	 	(24	)	
91	 	Gas	 	 	405	 	 	 	117	 	 	 	288	 	 	 	336	 	 	 	159	 	 	 	177	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Total	 	 	860	 	 	 	854	 	 	 	6	 	 	 	696	 	 	 	809	 	 	 	(113	)	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 6 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2007 and 2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	3 Mo. Ended June	 	 	6 Mo. Ended June	 	
Line	 	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	 	2007	 	 	2006	 	 	Incr (Decr)	 	

 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
93	 	Palo Verde	 	$	64.64	 	 	$	54.63	 	 	$	10.01	 	 	$	59.63	 	 	$	54.21	 	 	$	5.42	 	
94	 	SP15	 	$	68.75	 	 	$	55.39	 	 	$	13.36	 	 	$	64.39	 	 	$	56.87	 	 	$	7.52	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Palo Verde	 	$	41.46	 	 	$	28.38	 	 	$	13.08	 	 	$	41.76	 	 	$	35.15	 	 	$	6.61	 	
96	 	SP15	 	$	46.14	 	 	$	27.43	 	 	$	18.71	 	 	$	46.00	 	 	$	36.11	 	 	$	9.89	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Cooling degree-days	 	 	1,708	 	 	 	1,740	 	 	 	(32	)	 	 	1,880	 	 	 	1,783	 	 	 	97	 	
98	 	Heating degree-days	 	 	8	 	 	 	4	 	 	 	4	 	 	 	597	 	 	 	468	 	 	 	129	 	
99	 	Average humidity	 	 	18	%	 	 	18	%	 	 	0	%	 	 	27	%	 	 	23	%	 	 	4	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Cooling degree-days	 	 	1,557	 	 	 	1,557	 	 	 	—	 	 	 	1,654	 	 	 	1,654	 	 	 	—	 	
101	 	Heating degree-days	 	 	31	 	 	 	31	 	 	 	—	 	 	 	544	 	 	 	544	 	 	 	—	 	
102	 	Average humidity	 	 	22	%	 	 	22	%	 	 	0	%	 	 	32	%	 	 	32	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)(d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
103	 	Single-family	 	 	5,044	 	 	 	5,756	 	 	 	(712	)	 	 	12,061	 	 	 	14,472	 	 	 	(2,411	)	
104	 	Multi-family	 	 	1,276	 	 	 	2,305	 	 	 	(1,029	)	 	 	5,407	 	 	 	5,192	 	 	 	215	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Total	 	 	6,320	 	 	 	8,061	 	 	 	(1,741	)	 	 	17,468	 	 	 	19,664	 	 	 	(2,196	)	

 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
106	 	Payroll job growth (% over prior year)	 	 	3.5	%	 	 	5.2	%	 	 	(1.7	)%	 	 	3.9	%	 	 	5.8	%	 	 	(1.9	)%	
107	 	Unemployment rate (%, seasonally adjusted)	 	 	3.8	%	 	 	4.1	%	 	 	(0.3	)%	 	 	3.9	%	 	 	4.2	%	 	 	(0.3	)%	

Sources:	
 		
(a)	 	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
 		
(d)	 	Economic indicators reflect periods ended May 31, 2007 (latest available data) and May 31, 2006.	

See Glossary of Terms.	 	Page 7 of 31	

 

Exhibit 99.3
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	4	 	 	$	75	 	 	 	 	 	 	 	 	 	 	$	79	 	 	$	(9	)	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
3	 	APS Energy Services	 	 	1	 	 	 	(1	)	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(1	)	
4	 	SunCor	 	 	8	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	(22	)	
5	 	El Dorado	 	 	(2	)	 	 	—	 	 	 	 	 	 	 	 	 	 	 	(2	)	 	 	—	 	
6	 	Parent Company	 	 	5	 	 	 	5	 	 	 	 	 	 	 	 	 	 	 	9	 	 	 	4	 	

7	 	Income From Continuing Operations	 	 	16	 	 	 	79	 	 	 	—	 	 	 	—	 	 	 	94	 	 	 	(28	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(1	)	
9	 	SunCor	 	 	1	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	2	 	 	 	—	 	
10	 	NAC	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	17	 	 	$	79	 	 	$	—	 	 	$	—	 	 	$	96	 	 	$	(29	)	

 	 	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
13	 	Arizona Public Service	 	$	0.04	 	 	$	0.75	 	 	 	 	 	 	 	 	 	 	$	0.79	 	 	$	(0.10	)	
14	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
15	 	APS Energy Services	 	 	0.01	 	 	 	(0.01	)	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(0.01	)	
16	 	SunCor	 	 	0.09	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	0.08	 	 	 	(0.22	)	
17	 	El Dorado	 	 	(0.02	)	 	 	—	 	 	 	 	 	 	 	 	 	 	 	(0.02	)	 	 	—	 	
18	 	Parent Company	 	 	0.04	 	 	 	0.04	 	 	 	 	 	 	 	 	 	 	 	0.09	 	 	 	0.04	 	

19	 	Income From Continuing Operations	 	 	0.16	 	 	 	0.78	 	 	 	—	 	 	 	—	 	 	 	0.94	 	 	 	(0.29	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
20	 	Silverhawk	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
21	 	SunCor	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	(0.01	)	
22	 	NAC	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
23	 	Total	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.01	 	 	 	(0.01	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
24	 	Net Income	 	$	0.16	 	 	$	0.78	 	 	$	—	 	 	$	—	 	 	$	0.95	 	 	$	(0.30	)	

25	 	BOOK VALUE PER SHARE	 	$	34.45	 	 	$	34.13	*	 	 	 	 	 	 	 	 	 	$	34.13	*	 	 	1.05	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	COMMON SHARES OUTSTANDING (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
26	 	Average — Diluted	 	 	100,622	 	 	 	100,779	 	 	 	 	 	 	 	 	 	 	 	100,718	 	 	 	1,156	 	
27	 	End of Period	 	 	100,115	 	 	 	100,290	 	 	 	 	 	 	 	 	 	 	 	100,290	 	 	 	1,006	 	

*	 	Estimate	

See Glossary of Terms.	 	Page 8 of 31	

 

Last Updated 7/26/2007
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	246	 	 	$	335	 	 	 	 	 	 	 	 	 	 	$	581	 	 	$	42	 	
29	 	Business	 	 	264	 	 	 	342	 	 	 	 	 	 	 	 	 	 	 	606	 	 	 	40	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	510	 	 	 	677	 	 	 	—	 	 	 	—	 	 	 	1,187	 	 	 	82	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	5	 	 	 	9	 	 	 	 	 	 	 	 	 	 	 	14	 	 	 	1	 	
32	 	Off-system sales	 	 	7	 	 	 	10	 	 	 	 	 	 	 	 	 	 	 	17	 	 	 	(17	)	
33	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	 	 	 	 	 	 	 	 	14	 	 	 	2	 	
34	 	Other miscellaneous services	 	 	7	 	 	 	8	 	 	 	 	 	 	 	 	 	 	 	15	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	536	 	 	 	711	 	 	 	—	 	 	 	—	 	 	 	1,247	 	 	 	68	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	72	 	 	 	93	 	 	 	 	 	 	 	 	 	 	 	165	 	 	 	(10	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	608	 	 	$	804	 	 	$	—	 	 	$	—	 	 	$	1,412	 	 	$	58	 	

 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
38	 	Residential	 	 	2,734	 	 	 	3,287	 	 	 	 	 	 	 	 	 	 	 	6,021	 	 	 	318	 	
39	 	Business	 	 	3,285	 	 	 	4,004	 	 	 	 	 	 	 	 	 	 	 	7,289	 	 	 	119	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
40	 	Total retail	 	 	6,019	 	 	 	7,291	 	 	 	—	 	 	 	—	 	 	 	13,310	 	 	 	437	 	
 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
41	 	Traditional contracts	 	 	175	 	 	 	262	 	 	 	 	 	 	 	 	 	 	 	437	 	 	 	41	 	
42	 	Off-system sales	 	 	243	 	 	 	310	 	 	 	 	 	 	 	 	 	 	 	553	 	 	 	(337	)	
43	 	Retail load hedge management	 	 	117	 	 	 	254	 	 	 	 	 	 	 	 	 	 	 	371	 	 	 	(429	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
44	 	Total regulated electricity	 	 	6,554	 	 	 	8,117	 	 	 	—	 	 	 	—	 	 	 	14,671	 	 	 	(288	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
45	 	Wholesale sales of electricity	 	 	2,057	 	 	 	2,606	 	 	 	 	 	 	 	 	 	 	 	4,663	 	 	 	(3,161	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
46	 	Total electric sales	 	 	8,611	 	 	 	10,723	 	 	 	—	 	 	 	—	 	 	 	19,334	 	 	 	(3,449	)	

 	 	 	
See Glossary of Terms.	 	Page 9 of 31	

 

  Last Updated 7/26/2007
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter

2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	160	 	 	$	118	 	 	 	 	 	 	 	 	 	 	$	160	 	 	$	(13	)	
48	 	Deferred fuel and purchased power costs — current period	 	 	25	 	 	 	104	 	 	 	 	 	 	 	 	 	 	 	129	 	 	 	38	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	(14	)	 	 	 	 	 	 	 	 	 	 	(14	)	 	 	(14	)	
50	 	Interest on deferred fuel	 	 	2	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	(1	)	
51	 	Amounts recovered through revenues	 	 	(69	)	 	 	(72	)	 	 	 	 	 	 	 	 	 	 	(141	)	 	 	(48	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	118	 	 	$	137	 	 	$	—	 	 	$	—	 	 	$	137	 	 	$	(38	)	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	12	 	 	$	22	 	 	 	 	 	 	 	 	 	 	$	39	 	 	$	10	 	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(8	)	 	 	1	 	 	 	 	 	 	 	 	 	 	 	(4	)	 	 	(1	)	
55	 	Change in mark-to-market value of forward sales	 	 	10	 	 	 	(6	)	 	 	 	 	 	 	 	 	 	 	(2	)	 	 	(4	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	14	 	 	$	17	 	 	$	—	 	 	$	—	 	 	$	33	 	 	$	5	 	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	(1	)	 	$	7	 	 	 	 	 	 	 	 	 	 	$	6	 	 	$	(4	)	
58	 	Pinnacle West Marketing & Trading (c)	 	 	1	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	2	 	 	 	2	 	
59	 	Parent Company (c)	 	 	9	 	 	 	9	 	 	 	 	 	 	 	 	 	 	 	19	 	 	 	7	 	
60	 	APS Energy Services	 	 	5	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	—	 	
61	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total gross margin	 	$	14	 	 	$	17	 	 	$	—	 	 	$	—	 	 	$	33	 	 	$	5	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of June 30, 2007, Pinnacle West had accumulated net mark-to-market gains of $24 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2007, $7 million; and 2008, $17 million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2007. A $1 million realized loss is included in the $22 million on line 53 for the second quarter of 2007.	
 		
(b)	 	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.	
 		
(c)	 	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.	

See Glossary of Terms.	 	Page 10 of 31	

 

  Last Updated 7/26/2007
Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	965,428	 	 	 	962,095	 	 	 	 	 	 	 	 	 	 	 	963,762	 	 	 	33,161	 	
64	 	Business	 	 	118,649	 	 	 	119,792	 	 	 	 	 	 	 	 	 	 	 	119,220	 	 	 	5,033	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	1,084,077	 	 	 	1,081,887	 	 	 	—	 	 	 	—	 	 	 	1,082,982	 	 	 	38,194	 	
66	 	Wholesale customers	 	 	63	 	 	 	62	 	 	 	 	 	 	 	 	 	 	 	63	 	 	 	(13	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
67	 	Total customers	 	 	1,084,140	 	 	 	1,081,949	 	 	 	—	 	 	 	—	 	 	 	1,083,045	 	 	 	38,181	 	

68	 	Customer growth (% over prior year)	 	 	3.8	%	 	 	3.5	%	 	 	 	 	 	 	 	 	 	 	3.7	%	 	 	(0.8	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
69	 	Residential	 	 	2,648	 	 	 	3,214	 	 	 	 	 	 	 	 	 	 	 	5,862	 	 	 	264	 	
70	 	Business	 	 	3,228	 	 	 	3,977	 	 	 	 	 	 	 	 	 	 	 	7,205	 	 	 	24	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
71	 	Total	 	 	5,876	 	 	 	7,191	 	 	 	—	 	 	 	—	 	 	 	13,067	 	 	 	288	 	

 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
72	 	Residential	 	 	2,832	 	 	 	3,417	 	 	 	 	 	 	 	 	 	 	 	6,247	 	 	 	119	 	
73	 	Business	 	 	27,687	 	 	 	33,425	 	 	 	 	 	 	 	 	 	 	 	61,139	 	 	 	(1,653	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
74	 	Residential	 	 	2,743	 	 	 	3,340	 	 	 	 	 	 	 	 	 	 	 	6,082	 	 	 	67	 	
75	 	Business	 	 	27,204	 	 	 	33,202	 	 	 	 	 	 	 	 	 	 	 	60,435	 	 	 	(2,454	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
76	 	System peak demand	 	 	4,781	 	 	 	6,982	 	 	 	 	 	 	 	 	 	 	 	6,982	 	 	 	358	 	

See Glossary of Terms.	 	Page 11 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Nuclear	 	 	2,299	 	 	 	1,846	 	 	 	 	 	 	 	 	 	 	 	4,145	 	 	 	1,227	 	
78	 	Coal	 	 	3,164	 	 	 	3,265	 	 	 	 	 	 	 	 	 	 	 	6,429	 	 	 	164	 	
79	 	Gas, oil and other	 	 	1,151	 	 	 	1,517	 	 	 	 	 	 	 	 	 	 	 	2,668	 	 	 	(655	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total generation production	 	 	6,614	 	 	 	6,628	 	 	 	—	 	 	 	—	 	 	 	13,242	 	 	 	736	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
81	 	Firm load	 	 	278	 	 	 	1,676	 	 	 	 	 	 	 	 	 	 	 	1,954	 	 	 	(151	)	
82	 	Marketing and trading	 	 	2,262	 	 	 	3,055	 	 	 	 	 	 	 	 	 	 	 	5,317	 	 	 	(3,872	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total purchased power	 	 	2,540	 	 	 	4,731	 	 	 	—	 	 	 	—	 	 	 	7,271	 	 	 	(4,023	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Total energy sources	 	 	9,154	 	 	 	11,359	 	 	 	—	 	 	 	—	 	 	 	20,513	 	 	 	(3,287	)	

 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
85	 	Nuclear	 	 	94	%	 	 	75	%	 	 	 	 	 	 	 	 	 	 	85	%	 	 	25	%	
86	 	Coal	 	 	84	%	 	 	86	%	 	 	 	 	 	 	 	 	 	 	85	%	 	 	2	%	
87	 	Gas, oil and other	 	 	16	%	 	 	21	%	 	 	 	 	 	 	 	 	 	 	19	%	 	 	(4	)%	
88	 	System average	 	 	50	%	 	 	49	%	 	 	 	 	 	 	 	 	 	 	50	%	 	 	3	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
89	 	Nuclear	 	 	57	 	 	 	266	 	 	 	 	 	 	 	 	 	 	 	164	 	 	 	(266	)	
90	 	Coal	 	 	203	 	 	 	189	 	 	 	 	 	 	 	 	 	 	 	196	 	 	 	(24	)	
91	 	Gas	 	 	267	 	 	 	405	 	 	 	 	 	 	 	 	 	 	 	336	 	 	 	177	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
92	 	Total	 	 	527	 	 	 	860	 	 	 	—	 	 	 	—	 	 	 	696	 	 	 	(113	)	

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 12 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2007
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
93	 	Palo Verde	 	$	54.62	 	 	$	64.64	 	 	 	 	 	 	 	 	 	 	$	59.63	 	 	$	5.42	 	
94	 	SP15	 	$	60.02	 	 	$	68.75	 	 	 	 	 	 	 	 	 	 	$	64.39	 	 	$	7.52	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Palo Verde	 	$	42.06	 	 	$	41.46	 	 	 	 	 	 	 	 	 	 	$	41.76	 	 	$	6.61	 	
96	 	SP15	 	$	45.86	 	 	$	46.14	 	 	 	 	 	 	 	 	 	 	$	46.00	 	 	$	9.89	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Cooling degree-days	 	 	172	 	 	 	1,708	 	 	 	 	 	 	 	 	 	 	 	1,880	 	 	 	97	 	
98	 	Heating degree-days	 	 	589	 	 	 	8	 	 	 	 	 	 	 	 	 	 	 	597	 	 	 	129	 	
99	 	Average humidity	 	 	36	%	 	 	18	%	 	 	 	 	 	 	 	 	 	 	27	%	 	 	4	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	 	 	 	 	 	 	 	 	1,654	 	 	 	—	 	
101	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	 	 	 	 	 	 	 	 	544	 	 	 	—	 	
102	 	Average humidity	 	 	42	%	 	 	22	%	 	 	 	 	 	 	 	 	 	 	32	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
103	 	Single-family	 	 	7,017	 	 	 	5,044	 	 	 	 	 	 	 	 	 	 	 	12,061	 	 	 	(2,411	)	
104	 	Multi-family	 	 	4,131	 	 	 	1,276	 	 	 	 	 	 	 	 	 	 	 	5,407	 	 	 	215	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Total	 	 	11,148	 	 	 	6,320	 	 	 	—	 	 	 	—	 	 	 	17,468	 	 	 	(2,196	)	

 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
106	 	Payroll job growth (% over prior year)	 	 	4.1	%	 	 	3.5	%	 	 	 	 	 	 	 	 	 	 	3.9	%	 	 	(1.9	)%	
107	 	Unemployment rate (%, seasonally adjusted)	 	 	4.0	%	 	 	3.8	%	 	 	 	 	 	 	 	 	 	 	3.9	%	 	 	(0.3	)%	
 
Sources:

(a)	 	Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.	
 		
(b)	 	Arizona Real Estate Center, Arizona State University W.P. Carey College of Business	
 		
(c)	 	Arizona Department of Economic Security	
 		
(d)	 	Economic indicators reflect periods ended May 31, 2007 (latest available data).	

See Glossary of Terms.	 	Page 13 of 31	

 

Exhibit 99.4
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	(6	)	 	$	94	 	 	$	169	 	 	$	13	 	 	$	270	 	 	$	100	 	
2	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	85	 	
3	 	APS Energy Services	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	(2	)	 	 	(3	)	 	 	3	 	
4	 	SunCor	 	 	21	 	 	 	8	 	 	 	17	 	 	 	3	 	 	 	50	 	 	 	11	 	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(3	)	 	 	(1	)	
6	 	Parent Company	 	 	(3	)	 	 	9	 	 	 	—	 	 	 	(3	)	 	 	3	 	 	 	(104	)	

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

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

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

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

See Glossary of Terms.	 	Page 14 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	202	 	 	$	337	 	 	$	490	 	 	$	242	 	 	$	1,271	 	 	$	192	 	
29	 	Business	 	 	233	 	 	 	333	 	 	 	371	 	 	 	302	 	 	 	1,239	 	 	 	198	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	435	 	 	 	670	 	 	 	861	 	 	 	544	 	 	 	2,510	 	 	 	390	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	6	 	 	 	7	 	 	 	12	 	 	 	(3	)	 	 	22	 	 	 	(1	)	
32	 	Off-system sales	 	 	12	 	 	 	22	 	 	 	—	 	 	 	12	 	 	 	46	 	 	 	6	 	
33	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	7	 	 	 	7	 	 	 	26	 	 	 	—	 	
34	 	Other miscellaneous services	 	 	7	 	 	 	8	 	 	 	7	 	 	 	9	 	 	 	31	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	466	 	 	 	713	 	 	 	887	 	 	 	569	 	 	 	2,635	 	 	 	398	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	85	 	 	 	90	 	 	 	85	 	 	 	71	 	 	 	331	 	 	 	(21	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	551	 	 	$	803	 	 	$	972	 	 	$	640	 	 	$	2,966	 	 	$	377	 	

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

 	 	 	
See Glossary of Terms.	 	Page 15 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	173	 	 	$	169	 	 	$	175	 	 	 	209	 	 	$	173	 	 	$	173	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	13	 	 	 	78	 	 	 	134	 	 	 	19	 	 	 	244	 	 	 	73	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	1	 	 	 	3	 	 	 	2	 	 	 	2	 	 	 	8	 	 	 	6	 	
51	 	Amounts recovered through revenues	 	 	(18	)	 	 	(75	)	 	 	(102	)	 	 	(70	)	 	 	(265	)	 	 	(265	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	169	 	 	$	175	 	 	$	209	 	 	$	160	 	 	$	160	 	 	$	(13	)	

 	 	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
53	 	Electricity and other commodity sales, realized (a)	 	$	10	 	 	$	17	 	 	$	8	 	 	$	18	 	 	$	54	 	 	$	(1	)	
54	 	Mark-to-market reversals on realized sales (a) (b)	 	 	(1	)	 	 	(1	)	 	 	(1	)	 	 	(6	)	 	 	(14	)	 	 	2	 	
55	 	Change in mark-to-market value of forward sales	 	 	1	 	 	 	—	 	 	 	(3	)	 	 	(3	)	 	 	—	 	 	 	(20	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
56	 	Total gross margin	 	$	10	 	 	$	16	 	 	$	4	 	 	$	9	 	 	$	40	 	 	$	(19	)	

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	8	 	 	$	2	 	 	$	(3	)	 	$	5	 	 	$	13	 	 	$	19	 	
58	 	Pinnacle West Marketing & Trading (c)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
59	 	Parent Company (c)	 	 	(1	)	 	 	11	 	 	 	5	 	 	 	3	 	 	 	18	 	 	 	(41	)	
60	 	APS Energy Services	 	 	3	 	 	 	3	 	 	 	2	 	 	 	1	 	 	 	9	 	 	 	8	 	
61	 	Pinnacle West Energy	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(5	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total gross margin	 	$	10	 	 	$	16	 	 	$	4	 	 	$	9	 	 	$	40	 	 	$	(19	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2007, $16 million; and 2008, $14 million.

(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $14 million was transferred to “realized” for the total year 2006. A $14 million realized gain is included in the $54 million on line 53 for the total year 2006.	
 		
(b)	 	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.	
 		
(c)	 	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.	

See Glossary of Terms.	 	Page 16 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	930,799	 	 	 	930,402	 	 	 	935,523	 	 	 	949,132	 	 	 	936,464	 	 	 	39,992	 	
64	 	Business	 	 	113,570	 	 	 	114,803	 	 	 	116,009	 	 	 	117,342	 	 	 	115,431	 	 	 	4,263	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	1,044,369	 	 	 	1,045,205	 	 	 	1,051,532	 	 	 	1,066,474	 	 	 	1,051,895	 	 	 	44,255	 	
66	 	Wholesale customers	 	 	75	 	 	 	76	 	 	 	76	 	 	 	80	 	 	 	77	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
67	 	Total customers	 	 	1,044,444	 	 	 	1,045,281	 	 	 	1,051,608	 	 	 	1,066,554	 	 	 	1,051,972	 	 	 	44,254	 	

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

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

See Glossary of Terms.	 	Page 17 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Nuclear	 	 	1,720	 	 	 	1,198	 	 	 	2,202	 	 	 	1,868	 	 	 	6,988	 	 	 	(521	)	
78	 	Coal	 	 	3,083	 	 	 	3,182	 	 	 	3,574	 	 	 	3,337	 	 	 	13,176	 	 	 	116	 	
79	 	Gas, oil and other	 	 	1,323	 	 	 	2,000	 	 	 	2,433	 	 	 	1,628	 	 	 	7,384	 	 	 	(1,051	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total generation production	 	 	6,126	 	 	 	6,380	 	 	 	8,209	 	 	 	6,833	 	 	 	27,548	 	 	 	(1,456	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
81	 	Firm load	 	 	365	 	 	 	1,740	 	 	 	1,962	 	 	 	223	 	 	 	4,290	 	 	 	816	 	
82	 	Marketing and trading	 	 	4,592	 	 	 	4,597	 	 	 	5,353	 	 	 	4,326	 	 	 	18,868	 	 	 	(6,845	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total purchased power	 	 	4,957	 	 	 	6,337	 	 	 	7,315	 	 	 	4,549	 	 	 	23,158	 	 	 	(6,029	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Total energy sources	 	 	11,083	 	 	 	12,717	 	 	 	15,524	 	 	 	11,382	 	 	 	50,706	 	 	 	(7,485	)	

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

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 18 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2006
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
93	 	Palo Verde	 	$	53.78	 	 	$	54.63	 	 	$	65.89	 	 	$	52.72	 	 	$	56.76	 	 	$	(9.64	)	
94	 	SP15	 	$	58.34	 	 	$	55.39	 	 	$	71.89	 	 	$	62.16	 	 	$	61.95	 	 	$	(10.99	)	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Palo Verde	 	$	41.92	 	 	$	28.38	 	 	$	38.45	 	 	$	39.62	 	 	$	37.09	 	 	$	(10.46	)	
96	 	SP15	 	$	44.79	 	 	$	27.43	 	 	$	43.94	 	 	$	46.27	 	 	$	40.61	 	 	$	(11.45	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Cooling degree-days	 	 	43	 	 	 	1,740	 	 	 	2,455	 	 	 	457	 	 	 	4,695	 	 	 	32	 	
98	 	Heating degree-days	 	 	464	 	 	 	4	 	 	 	—	 	 	 	383	 	 	 	851	 	 	 	85	 	
99	 	Average humidity	 	 	28	%	 	 	18	%	 	 	33	%	 	 	33	%	 	 	28	%	 	 	(6	)%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
101	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
102	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
103	 	Single-family	 	 	8,716	 	 	 	8,883	 	 	 	5,969	 	 	 	4,408	 	 	 	27,976	 	 	 	(15,282	)	
104	 	Multi-family	 	 	2,887	 	 	 	2,976	 	 	 	3,215	 	 	 	1,029	 	 	 	10,107	 	 	 	2,329	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Total	 	 	11,603	 	 	 	11,859	 	 	 	9,184	 	 	 	5,437	 	 	 	38,083	 	 	 	(12,953	)	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
106	 	Payroll job growth (% over prior year)	 	 	6.2	%	 	 	5.3	%	 	 	5.1	%	 	 	4.9	%	 	 	5.4	%	 	 	0.0	%	
107	 	Unemployment rate (%, seasonally adjusted)	 	 	4.2	%	 	 	4.1	%	 	 	4.0	%	 	 	4.1	%	 	 	4.1	%	 	 	(0.5	)%	

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

See Glossary of Terms.	 	Page 19 of 31	

 

Exhibit 99.5
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	27	 	 	$	64	 	 	$	61	 	 	$	18	 	 	$	170	 	 	$	(30	)	
2	 	Pinnacle West Energy	 	 	(21	)	 	 	12	 	 	 	(71	)	 	 	(6	)	 	 	(85	)	 	 	(27	)	
3	 	APS Energy Services	 	 	(3	)	 	 	1	 	 	 	—	 	 	 	(3	)	 	 	(6	)	 	 	(9	)	
4	 	SunCor	 	 	9	 	 	 	10	 	 	 	7	 	 	 	13	 	 	 	39	 	 	 	(2	)	
5	 	El Dorado	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	 	 	(35	)	
6	 	Parent Company	 	 	19	 	 	 	(2	)	 	 	88	 	 	 	2	 	 	 	107	 	 	 	79	 	

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

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

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

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

See Glossary of Terms.	 	Page 20 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	190	 	 	$	268	 	 	$	414	 	 	$	207	 	 	$	1,079	 	 	$	95	 	
29	 	Business	 	 	209	 	 	 	281	 	 	 	308	 	 	 	243	 	 	 	1,041	 	 	 	63	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	399	 	 	 	549	 	 	 	722	 	 	 	450	 	 	 	2,120	 	 	 	158	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	3	 	 	 	5	 	 	 	9	 	 	 	6	 	 	 	23	 	 	 	7	 	
32	 	Off-system sales	 	 	—	 	 	 	12	 	 	 	8	 	 	 	20	 	 	 	40	 	 	 	40	 	
33	 	Transmission for others	 	 	7	 	 	 	7	 	 	 	7	 	 	 	5	 	 	 	26	 	 	 	(6	)	
34	 	Other miscellaneous services	 	 	7	 	 	 	7	 	 	 	7	 	 	 	7	 	 	 	28	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	416	 	 	 	580	 	 	 	753	 	 	 	488	 	 	 	2,237	 	 	 	202	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	89	 	 	 	71	 	 	 	107	 	 	 	84	 	 	 	352	 	 	 	(49	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	505	 	 	$	651	 	 	$	860	 	 	$	572	 	 	$	2,589	 	 	$	153	 	

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

 	 	 	
See Glossary of Terms.	 	Page 21 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	—	 	 	$	—	 	 	$	38	 	 	$	143	 	 	$	—	 	 	$	—	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	—	 	 	 	38	 	 	 	104	 	 	 	29	 	 	 	171	 	 	 	171	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	 	 	2	 	 	 	2	 	
51	 	Amounts recovered through revenues	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	—	 	 	$	38	 	 	$	143	 	 	$	173	 	 	$	173	 	 	$	173	 	

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

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

			
(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $16 million was transferred to “realized” for the total year 2005. A $16 million realized gain is included in the $55 million on line 53 for the total year 2005.	
 		
(b)	 	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.	
 		
(c)	 	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.	

See Glossary of Terms.	 	Page 22 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	889,967	 	 	 	888,509	 	 	 	895,789	 	 	 	911,623	 	 	 	896,472	 	 	 	37,403	 	
64	 	Business	 	 	109,795	 	 	 	110,658	 	 	 	111,648	 	 	 	112,569	 	 	 	111,168	 	 	 	4,053	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	999,762	 	 	 	999,167	 	 	 	1,007,437	 	 	 	1,024,192	 	 	 	1,007,640	 	 	 	41,456	 	
66	 	Wholesale customers	 	 	81	 	 	 	76	 	 	 	78	 	 	 	77	 	 	 	78	 	 	 	(3	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
67	 	Total customers	 	 	999,843	 	 	 	999,243	 	 	 	1,007,515	 	 	 	1,024,269	 	 	 	1,007,718	 	 	 	41,453	 	

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

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

See Glossary of Terms.	 	Page 23 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Nuclear	 	 	2,247	 	 	 	1,619	 	 	 	2,147	 	 	 	1,496	 	 	 	7,509	 	 	 	(674	)	
78	 	Coal	 	 	2,940	 	 	 	3,088	 	 	 	3,574	 	 	 	3,458	 	 	 	13,060	 	 	 	394	 	
79	 	Gas, oil and other	 	 	1,128	 	 	 	2,129	 	 	 	3,064	 	 	 	2,114	 	 	 	8,435	 	 	 	3,107	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total generation production	 	 	6,315	 	 	 	6,836	 	 	 	8,785	 	 	 	7,068	 	 	 	29,004	 	 	 	2,827	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
81	 	Firm load	 	 	586	 	 	 	880	 	 	 	1,589	 	 	 	402	 	 	 	3,474	 	 	 	(851	)	
82	 	Marketing and trading	 	 	5,832	 	 	 	5,984	 	 	 	7,795	 	 	 	6,102	 	 	 	25,713	 	 	 	(4,479	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total purchased power	 	 	6,418	 	 	 	6,864	 	 	 	9,384	 	 	 	6,504	 	 	 	29,187	 	 	 	(5,330	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Total energy sources	 	 	12,733	 	 	 	13,700	 	 	 	18,169	 	 	 	13,572	 	 	 	58,191	 	 	 	(2,503	)	

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

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 24 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2005
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
93	 	Palo Verde	 	$	49.74	 	 	$	53.33	 	 	$	78.94	 	 	$	83.58	 	 	$	66.40	 	 	$	17.10	 	
94	 	SP15	 	$	55.70	 	 	$	55.19	 	 	$	83.21	 	 	$	97.65	 	 	$	72.94	 	 	$	17.74	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Palo Verde	 	$	37.04	 	 	$	33.03	 	 	$	52.35	 	 	$	67.79	 	 	$	47.55	 	 	$	12.81	 	
96	 	SP15	 	$	40.96	 	 	$	34.73	 	 	$	56.08	 	 	$	76.45	 	 	$	52.06	 	 	$	13.44	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Cooling degree-days	 	 	34	 	 	 	1,538	 	 	 	2,583	 	 	 	508	 	 	 	4,663	 	 	 	(31	)	
98	 	Heating degree-days	 	 	457	 	 	 	1	 	 	 	—	 	 	 	308	 	 	 	766	 	 	 	(219	)	
99	 	Average humidity	 	 	56	%	 	 	20	%	 	 	29	%	 	 	30	%	 	 	34	%	 	 	2	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
101	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
102	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
103	 	Single-family	 	 	10,356	 	 	 	12,013	 	 	 	11,577	 	 	 	9,312	 	 	 	43,258	 	 	 	(4,859	)	
104	 	Multi-family	 	 	1,741	 	 	 	1,645	 	 	 	2,360	 	 	 	2,032	 	 	 	7,778	 	 	 	192	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Total	 	 	12,097	 	 	 	13,658	 	 	 	13,937	 	 	 	11,344	 	 	 	51,036	 	 	 	(4,667	)	

 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
106	 	Payroll job growth (% over prior year)	 	 	4.8	%	 	 	5.5	%	 	 	6.0	%	 	 	5.2	%	 	 	5.4	%	 	 	1.7	%	
107	 	Unemployment rate (%, seasonally adjusted)	 	 	4.6	%	 	 	4.7	%	 	 	4.7	%	 	 	4.6	%	 	 	4.6	%	 	 	(0.3	)%	
 
Sources:

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

See Glossary of Terms.	 	Page 25 of 31	

 

Exhibit 99.6
 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1	 	Arizona Public Service	 	$	34	 	 	$	55	 	 	$	95	 	 	$	15	 	 	$	200	 	 	$	19	 	
2	 	Pinnacle West Energy	 	 	(22	)	 	 	(14	)	 	 	1	 	 	 	(23	)	 	 	(58	)	 	 	(50	)	
3	 	APS Energy Services	 	 	2	 	 	 	1	 	 	 	1	 	 	 	(1	)	 	 	3	 	 	 	(13	)	
4	 	SunCor	 	 	2	 	 	 	4	 	 	 	4	 	 	 	31	 	 	 	41	 	 	 	(5	)	
5	 	El Dorado	 	 	—	 	 	 	34	 	 	 	—	 	 	 	—	 	 	 	33	 	 	 	34	 	
6	 	Parent Company	 	 	15	 	 	 	(6	)	 	 	3	 	 	 	16	 	 	 	28	 	 	 	37	 	

7	 	Income From Continuing Operations	 	 	31	 	 	 	74	 	 	 	104	 	 	 	38	 	 	 	247	 	 	 	22	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Income (Loss) From Discontinued Operations — Net of Tax	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
8	 	Silverhawk	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(8	)	 	 	(12	)	 	 	(13	)	
9	 	SunCor	 	 	—	 	 	 	1	 	 	 	1	 	 	 	1	 	 	 	4	 	 	 	(6	)	
10	 	NAC	 	 	—	 	 	 	1	 	 	 	—	 	 	 	3	 	 	 	4	 	 	 	(1	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
11	 	Total	 	 	—	 	 	 	(1	)	 	 	1	 	 	 	(4	)	 	 	(4	)	 	 	(20	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
12	 	Net Income	 	$	31	 	 	$	73	 	 	$	105	 	 	$	34	 	 	$	243	 	 	$	2	 	

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

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

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

See Glossary of Terms.	 	Page 26 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
28	 	Residential	 	$	189	 	 	$	245	 	 	$	360	 	 	$	190	 	 	$	984	 	 	$	27	 	
29	 	Business	 	 	211	 	 	 	257	 	 	 	289	 	 	 	221	 	 	 	978	 	 	 	25	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
30	 	Total retail	 	 	400	 	 	 	502	 	 	 	649	 	 	 	411	 	 	 	1,962	 	 	 	52	 	
 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
31	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	6	 	 	 	3	 	 	 	16	 	 	 	1	 	
32	 	Off-system sales	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
33	 	Transmission for others	 	 	8	 	 	 	8	 	 	 	8	 	 	 	8	 	 	 	32	 	 	 	4	 	
34	 	Other miscellaneous services	 	 	4	 	 	 	6	 	 	 	8	 	 	 	7	 	 	 	25	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
35	 	Total regulated operating electricity revenues	 	 	415	 	 	 	520	 	 	 	671	 	 	 	429	 	 	 	2,035	 	 	 	57	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
36	 	Electricity and other commodity sales	 	 	89	 	 	 	110	 	 	 	91	 	 	 	111	 	 	 	401	 	 	 	9	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
37	 	Total operating electric revenues	 	$	504	 	 	$	630	 	 	$	762	 	 	$	540	 	 	$	2,436	 	 	$	66	 	

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

 	 	 	
See Glossary of Terms.	 	Page 27 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47	 	Deferred fuel and purchased power regulatory asset — beginning balance	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
48	 	Deferred fuel and purchased power costs — current period	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
49	 	Regulatory disallowance	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
50	 	Interest on deferred fuel	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
51	 	Amounts recovered through revenues	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
52	 	Deferred fuel and purchased power regulatory asset — ending balance	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	

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

 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
57	 	APS	 	$	(5	)	 	$	—	 	 	$	2	 	 	$	(2	)	 	$	(5	)	 	$	(13	)	
58	 	Pinnacle West Marketing & Trading (c)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
59	 	Parent Company (c)	 	 	12	 	 	 	6	 	 	 	5	 	 	 	1	 	 	 	25	 	 	 	30	 	
60	 	APS Energy Services	 	 	4	 	 	 	4	 	 	 	4	 	 	 	2	 	 	 	14	 	 	 	(22	)	
61	 	Pinnacle West Energy	 	 	10	 	 	 	11	 	 	 	10	 	 	 	16	 	 	 	46	 	 	 	38	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
62	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	21	 	 	$	17	 	 	$	80	 	 	$	33	 	

			
(a)	 	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $5 million was transferred to “realized” for the total year 2004. A $5 million realized gain is included in the $64 million on line 53 for the total year 2004.	
 		
(b)	 	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.	
 		
(c)	 	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.	

See Glossary of Terms.	 	Page 28 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
63	 	Residential	 	 	855,754	 	 	 	852,594	 	 	 	856,353	 	 	 	871,575	 	 	 	859,069	 	 	 	30,703	 	
64	 	Business	 	 	105,502	 	 	 	106,517	 	 	 	107,583	 	 	 	108,860	 	 	 	107,115	 	 	 	4,019	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
65	 	Total	 	 	961,256	 	 	 	959,111	 	 	 	963,936	 	 	 	980,435	 	 	 	966,184	 	 	 	34,722	 	
66	 	Wholesale customers	 	 	81	 	 	 	82	 	 	 	85	 	 	 	77	 	 	 	81	 	 	 	15	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
67	 	Total customers	 	 	961,337	 	 	 	959,193	 	 	 	964,021	 	 	 	980,512	 	 	 	966,265	 	 	 	34,737	 	

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

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

See Glossary of Terms.	 	Page 29 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
77	 	Nuclear	 	 	2,148	 	 	 	1,860	 	 	 	2,364	 	 	 	1,811	 	 	 	8,183	 	 	 	(132	)	
78	 	Coal	 	 	2,887	 	 	 	3,035	 	 	 	3,417	 	 	 	3,327	 	 	 	12,666	 	 	 	1,299	 	
79	 	Gas, oil and other	 	 	367	 	 	 	1,339	 	 	 	2,547	 	 	 	1,075	 	 	 	5,328	 	 	 	(763	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
80	 	Total generation production	 	 	5,402	 	 	 	6,234	 	 	 	8,328	 	 	 	6,213	 	 	 	26,177	 	 	 	404	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
81	 	Firm load	 	 	701	 	 	 	1,532	 	 	 	1,068	 	 	 	1,024	 	 	 	4,325	 	 	 	1,214	 	
82	 	Marketing and trading	 	 	5,506	 	 	 	7,167	 	 	 	9,301	 	 	 	8,218	 	 	 	30,192	 	 	 	2,442	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
83	 	Total purchased power	 	 	6,207	 	 	 	8,699	 	 	 	10,369	 	 	 	9,242	 	 	 	34,517	 	 	 	3,656	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
84	 	Total energy sources	 	 	11,609	 	 	 	14,933	 	 	 	18,697	 	 	 	15,455	 	 	 	60,694	 	 	 	4,060	 	

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

			
(a)	 	Includes planned and unplanned outages	

See Glossary of Terms.	 	Page 30 of 31	

 

 	 	 	 	 	
 	 	Last Updated	 	7/26/2007	
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	 	
Line	 	 	 	1st Qtr	 	 	2nd Qtr	 	 	3rd Qtr	 	 	4th Qtr	 	 	Year-To-Date	 	 	vs Prior YTD	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
93	 	Palo Verde	 	$	43.73	 	 	$	50.36	 	 	$	51.86	 	 	$	51.23	 	 	$	49.30	 	 	$	0.70	 	
94	 	SP15	 	$	48.37	 	 	$	54.73	 	 	$	57.09	 	 	$	60.62	 	 	$	55.20	 	 	$	3.82	 	
 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
95	 	Palo Verde	 	$	33.66	 	 	$	33.74	 	 	$	33.37	 	 	$	38.21	 	 	$	34.75	 	 	$	2.72	 	
96	 	SP15	 	$	36.90	 	 	$	37.32	 	 	$	37.18	 	 	$	43.07	 	 	$	38.62	 	 	$	3.96	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
97	 	Cooling degree-days	 	 	273	 	 	 	1,598	 	 	 	2,471	 	 	 	352	 	 	 	4,694	 	 	 	(205	)	
98	 	Heating degree-days	 	 	552	 	 	 	11	 	 	 	—	 	 	 	422	 	 	 	985	 	 	 	249	 	
99	 	Average humidity	 	 	39	%	 	 	19	%	 	 	26	%	 	 	45	%	 	 	32	%	 	 	1	%	
 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
100	 	Cooling degree-days	 	 	97	 	 	 	1,557	 	 	 	2,544	 	 	 	441	 	 	 	4,640	 	 	 	—	 	
101	 	Heating degree-days	 	 	513	 	 	 	31	 	 	 	—	 	 	 	296	 	 	 	840	 	 	 	—	 	
102	 	Average humidity	 	 	42	%	 	 	22	%	 	 	32	%	 	 	38	%	 	 	33	%	 	 	0	%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
103	 	Single-family	 	 	10,045	 	 	 	13,636	 	 	 	14,111	 	 	 	10,325	 	 	 	48,117	 	 	 	8,466	 	
104	 	Multi-family	 	 	1,757	 	 	 	1,324	 	 	 	2,149	 	 	 	2,356	 	 	 	7,586	 	 	 	859	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
105	 	Total	 	 	11,802	 	 	 	14,960	 	 	 	16,260	 	 	 	12,681	 	 	 	55,703	 	 	 	9,325	 	

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

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

See Glossary of Terms.	 	Page 31 of 31	

 

Exhibit 99.7
LAST UPDATED
7/26/07
Pinnacle West Capital Corporation
Earnings Variance Explanations
For the Three-Month and Six-Month Periods Ended June 30, 2007 and 2006
     This discussion explains the changes in our consolidated net income for the three-month and six-month periods ended June 30, 2007 and 2006. Unaudited Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2007 and 2006 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2007 on or before August 9, 2007. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation (“Pinnacle West”) Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Additional operating and financial statistics and a glossary of terms are available on our website ( www.pinnaclewest.com ).
EARNINGS CONTRIBUTION BY BUSINESS SEGMENT
     Pinnacle West’s two principal business segments are:

 	•	 	our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution; and	
 		
 	•	 	our real estate segment, which consists of SunCor’s real estate development and investment activities.	
     The following table summarizes income from continuing operations by segment for the three months and six months ended June 30, 2007 and 2006 and reconciles net income in total (dollars in millions):
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	 	 	Six Months Ended	 	
 	 	June 30,	 	 	June 30,	 	
 	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
Regulated electricity	 	$	71	 	 	$	95	 	 	$	74	 	 	$	82	 	
Real estate	 	 	—	 	 	 	8	 	 	 	8	 	 	 	30	 	
Other (a)	 	 	8	 	 	 	8	 	 	 	12	 	 	 	10	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations	 	 	79	 	 	 	111	 	 	 	94	 	 	 	122	 	
Discontinued operations — net of tax (b)	 	 	—	 	 	 	1	 	 	 	2	 	 	 	3	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	 	$	79	 	 	$	112	 	 	$	96	 	 	$	125	 	

			
(a)	 	Primarily marketing and trading activity.	
 		
(b)	 	Primarily relates to sales of commercial properties.	

 

PINNACLE WEST CONSOLIDATED — RESULTS OF OPERATIONS
General
     Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment, gross margin refers to operating revenues less fuel and purchased power costs. “Gross margin” is a “non-GAAP financial measure,” as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). We view gross margin as an important performance measure of the core profitability of our operations. This measure is a key component of our internal financial reporting and is used by our management in analyzing our business. We believe that investors benefit from having access to the same financial measures that our management uses.
Deferred Fuel and Purchased Power Costs
     Our subsidiary, Arizona Public Service Company (“APS”), settled its 2003 general retail rate case effective April 1, 2005. As part of the settlement, the Arizona Corporation Commission (“ACC”) approved the Power Supply Adjustor (“PSA”), which permits APS to defer for recovery or refund fluctuations in retail fuel and purchased power costs, subject to specified parameters. In its June 28, 2007 general rate case order, the ACC modified the PSA in various respects, effective July 1, 2007. In accordance with the modified PSA, APS continues to defer for future rate recovery 90% of the difference between actual retail fuel and purchased power costs and the amount of such costs currently included in base rates, excluding certain costs. APS recovers PSA deferrals from its customers through the PSA, which is adjusted annually. See “APS General Rate Case and Power Supply Adjustor” in Item 8.01 of the Pinnacle West/APS Report on Form 8-K filed with the Securities and Exchange Commission on June 20, 2007 for additional information about the ACC order and the PSA modifications.
     The balance of APS’ PSA accumulated unrecovered deferrals at June 30, 2007 was approximately $137 million. APS expects to recover these deferrals through a combination of the PSA adjustor that took effect on February 1, 2007 and the temporary PSA surcharge discussed in the following paragraph. The recovery of PSA deferrals recorded as revenue is offset dollar-for-dollar by the amortization of those deferred expenses recorded as fuel and purchased power.
     APS recorded PSA deferrals of (a) $45 million related to replacement power costs in 2005 associated with Palo Verde outages (the “2005 Deferrals”) and (b) $79 million related to replacement power costs in 2006 associated with outages or reduced power operations at Palo Verde (the “2006 Deferrals”). In its June 28, 2007 order, the ACC (a) disallowed approximately $14 million, including accrued interest ($8 million after income taxes), of the 2005 Deferrals and (b) approved APS’ recovery of the balance of the 2005 Deferrals (approximately $34 million, including accrued interest) through a temporary PSA surcharge over a twelve-month period effective July 1, 2007. The ACC’s prudence review of 2006 Palo Verde outage costs has not yet been completed. APS believes the 2006 Deferrals were prudently incurred and, therefore, are recoverable.
 2 

 

Operating Results — Three-month period ended June 30, 2007 compared with three-month period ended June 30, 2006
     Our consolidated net income for the three months ended June 30, 2007 was $79 million compared with $112 million for the comparable prior-year period. Net income decreased $33 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

 	•	 	Regulated Electricity Segment — Net income decreased approximately $24 million primarily due to income tax credits related to prior years resolved in 2006; a regulatory disallowance (see “Deferred Fuel and Purchased Power Costs” above); higher operations and maintenance expense related to fossil generation costs; the effects of weather on retail sales; and higher interest expense, net of capitalized financing costs, due to higher debt balances and rates. These negative factors were partially offset by higher retail sales primarily due to customer growth. In addition, higher fuel and purchased power costs were partially offset by the deferral of such costs in accordance with the PSA. See “Deferred Fuel and Purchased Power Costs” above.	
 		
 	•	 	Real Estate Segment — Net income decreased approximately $9 million primarily due to lower sales of residential property due to a slowdown in the western United States residential real estate markets.	
 3 

 

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs due to increased prices	 	$	(27	)	 	$	(16	)	
Increased deferred fuel and purchased power costs	 	 	26	 	 	 	16	 	
Regulatory disallowance (see “Deferred Fuel and Purchased Power Costs” above)	 	 	(14	)	 	 	(8	)	
Effects of weather on retail sales	 	 	(7	)	 	 	(4	)	
Higher retail sales primarily due to customer growth and usage patterns, excluding weather effects	 	 	10	 	 	 	6	 	
Miscellaneous items, net	 	 	4	 	 	 	1	 	
 	 	 	 	 	 	 	
Net decrease in regulated electricity segment gross margin	 	 	(8	)	 	 	(5	)	
Lower real estate segment contribution primarily due to decreased sales of residential property	 	 	(15	)	 	 	(9	)	
Operations and maintenance increases primarily due to:	 	 	 	 	 	 	 	 	
Generation costs, including greater fossil power plant maintenance outages	 	 	(8	)	 	 	(5	)	
Miscellaneous items, net	 	 	(1	)	 	 	(1	)	
Higher depreciation and amortization primarily due to increased plant balances	 	 	(4	)	 	 	(2	)	
Lower other income, net of expense, primarily due to miscellaneous asset sales in the prior-year period	 	 	(4	)	 	 	(2	)	
Higher interest expense, net of capitalized financing costs, primarily due to higher debt balances and rates	 	 	(5	)	 	 	(3	)	
Income tax credits related to prior years resolved in 2006	 	 	—	 	 	 	(10	)	
Other miscellaneous items, net	 	 	2	 	 	 	4	 	
 	 	 	 	 	 	 	
Net decrease in net income	 	$	(43	)	 	$	(33	)	
 	 	 	 	 	 	 	
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $1 million lower for the three months ended June 30, 2007 compared with the prior-year period primarily as a result of:

 	•	 	a $12 million decrease in Off-System Sales due to lower prices;	
 		
 	•	 	a $9 million decrease in retail revenues due to weather;	
 		
 	•	 	a $13 million increase in retail revenues primarily related to customer growth and usage patterns, excluding weather effects; and	
 		
 	•	 	a $7 million increase due to miscellaneous factors.	
Real Estate Segment Revenues
     Real estate segment revenues were $64 million lower for the three months ended June 30, 2007 compared with the prior-year period primarily as a result of:
 4 

 

 	•	 	a $56 million decrease in residential property sales due to a slowdown in the western United States residential real estate markets;	
 		
 	•	 	a $4 million decrease in revenue primarily due to the timing of land parcel sales; and	
 		
 	•	 	a $4 million decrease due to miscellaneous factors.	
Operating Results — Six-month period ended June 30, 2007 compared with six-month period ended June 30, 2006
     Our consolidated net income for the six months ended June 30, 2007 was $96 million compared with $125 million for the comparable prior-year period. Net income decreased $29 million in the period-to-period comparison, primarily reflecting the following changes in earnings by segment:

 	•	 	Regulated Electricity Segment — Net income decreased approximately $8 million primarily due to income tax credits related to prior years resolved in 2006; a regulatory disallowance (see “Deferred Fuel and Purchased Power Costs” above); higher interest expense, net of capitalized financing costs, due to higher debt balances; lower other income, net of expense, primarily due to miscellaneous asset sales in the prior-year period and decreased interest income; and higher depreciation and amortization expense primarily due to increased plant asset balances. The negative factors were partially offset by higher retail sales primarily due to customer growth and the effects of weather on retail sales. In addition, higher fuel and purchased power costs were partially offset by the deferral of such costs in accordance with the PSA. See “Deferred Fuel and Purchased Power Costs” above.	
 		
 	•	 	Real Estate Segment — Net income decreased approximately $22 million primarily due to lower sales of residential property due to a slowdown in the western United States residential real estate markets and the timing of land parcel sales.	
 5 

 

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):
 	 	 	 	 	 	 	 	 	
 	 	Increase (Decrease)	 	
 	 	Pretax	 	 	After Tax	 	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher fuel and purchased power costs due to increased prices	 	$	(42	)	 	$	(26	)	
Increased deferred fuel and purchased power costs	 	 	38	 	 	 	23	 	
Regulatory disallowance (see “Deferred Fuel and Purchased Power Costs” above)	 	 	(14	)	 	 	(8	)	
Effects of weather on retail sales	 	 	6	 	 	 	4	 	
Higher retail sales primarily due to customer growth and usage patterns, excluding weather effects	 	 	20	 	 	 	12	 	
Miscellaneous items, net	 	 	8	 	 	 	5	 	
 	 	 	 	 	 	 	
Net increase in regulated electricity segment gross margin	 	 	16	 	 	 	10	 	
Lower real estate segment contribution primarily due to decreased sales of residential property and land parcels	 	 	(36	)	 	 	(22	)	
Higher depreciation and amortization primarily due to increased plant asset balances	 	 	(6	)	 	 	(4	)	
Lower other income, net of expense, primarily due to miscellaneous asset sales in the prior-year period and decreased interest income	 	 	(6	)	 	 	(4	)	
Higher interest expense, net of capitalized financing costs, primarily due to higher debt balances and rates	 	 	(7	)	 	 	(4	)	
Income tax credits related to prior years resolved in 2006	 	 	—	 	 	 	(10	)	
Other miscellaneous items, net	 	 	2	 	 	 	5	 	
 	 	 	 	 	 	 	
Net decrease in net income	 	$	(37	)	 	$	(29	)	
 	 	 	 	 	 	 	
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $68 million higher for the six months ended June 30, 2007 compared with the prior-year period primarily as a result of:

 	•	 	a $48 million increase in retail revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);	
 		
 	•	 	a $26 million increase in retail revenues primarily related to customer growth and usage patterns, excluding weather effects;	
 		
 	•	 	a $9 million increase in retail revenues due to weather;	
 		
 	•	 	a $17 million decrease in Off-System Sales due to lower prices; and	
 		
 	•	 	a $2 million increase due to miscellaneous factors.	
 6 

 

Real Estate Segment Revenues
     Real estate segment revenues were $95 million lower for the six months ended June 30, 2007 compared with the prior-year period primarily as a result of:

 	•	 	a $76 million decrease in residential property sales due to a slowdown in the western United States residential real estate markets; and	
 		
 	•	 	a $19 million decrease in revenue primarily due to the timing of land parcel sales.	
Other Revenues
     Marketing and trading revenues were $10 million lower for the six months ended June 30, 2007 compared with the prior-year period primarily as a result of:

 	•	 	a $12 million decrease from lower competitive retail sales volumes in California; and	
 		
 	•	 	a $2 million increase due to miscellaneous factors.	
 7 

 
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	 	 	 	 	
 	 	JUNE 30,	 	 	Increase (Decrease)	 	 	 	
 	 	2007	 	 	2006	 	 	Amount	 	 	Percent	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	711,293	 	 	$	712,718	 	 	$	(1,425	)	 	 	0.2	%	 	W	
Real estate segment	 	 	48,352	 	 	 	112,603	 	 	 	(64,251	)	 	 	57.1	%	 	W	
Marketing and trading	 	 	92,637	 	 	 	89,925	 	 	 	2,712	 	 	 	3.0	%	 	B	
Other revenues	 	 	11,153	 	 	 	9,782	 	 	 	1,371	 	 	 	14.0	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	863,435	 	 	 	925,028	 	 	 	(61,593	)	 	 	6.7	%	 	W	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	270,337	 	 	 	263,944	 	 	 	6,393	 	 	 	2.4	%	 	W	
Real estate segment operations	 	 	46,174	 	 	 	98,412	 	 	 	(52,238	)	 	 	53.1	%	 	B	
Marketing and trading fuel and purchased power	 	 	74,533	 	 	 	72,716	 	 	 	1,817	 	 	 	2.5	%	 	W	
Operations and maintenance	 	 	177,310	 	 	 	168,332	 	 	 	8,978	 	 	 	5.3	%	 	W	
Depreciation and amortization	 	 	92,835	 	 	 	89,297	 	 	 	3,538	 	 	 	4.0	%	 	W	
Taxes other than income taxes	 	 	34,757	 	 	 	32,700	 	 	 	2,057	 	 	 	6.3	%	 	W	
Other expenses	 	 	8,803	 	 	 	8,430	 	 	 	373	 	 	 	4.4	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	704,749	 	 	 	733,831	 	 	 	(29,082	)	 	 	4.0	%	 	B	

Operating Income	 	 	158,686	 	 	 	191,197	 	 	 	(32,511	)	 	 	17.0	%	 	W	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	5,195	 	 	 	3,633	 	 	 	1,562	 	 	 	43.0	%	 	B	
Other income	 	 	5,869	 	 	 	12,022	 	 	 	(6,153	)	 	 	51.2	%	 	W	
Other expense	 	 	(3,269	)	 	 	(5,815	)	 	 	2,546	 	 	 	43.8	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	7,795	 	 	 	9,840	 	 	 	(2,045	)	 	 	20.8	%	 	W	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	52,967	 	 	 	45,882	 	 	 	7,085	 	 	 	15.4	%	 	W	
Capitalized interest	 	 	(5,213	)	 	 	(4,959	)	 	 	(254	)	 	 	5.1	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	47,754	 	 	 	40,923	 	 	 	6,831	 	 	 	16.7	%	 	W	

Income From Continuing Operations Before Income Taxes	 	 	118,727	 	 	 	160,114	 	 	 	(41,387	)	 	 	25.8	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	40,231	 	 	 	49,271	 	 	 	(9,040	)	 	 	18.3	%	 	B	

Income From Continuing Operations	 	 	78,496	 	 	 	110,843	 	 	 	(32,347	)	 	 	29.2	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations Net of Income Taxes	 	 	498	 	 	 	1,311	 	 	 	(813	)	 	 	62.0	%	 	W	

Net Income	 	$	78,994	 	 	$	112,154	 	 	$	(33,160	)	 	 	29.6	%	 	W	

Weighted-Average Common Shares Outstanding — Basic	 	 	100,229	 	 	 	99,221	 	 	 	1,008	 	 	 	1.0	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,779	 	 	 	99,640	 	 	 	1,139	 	 	 	1.1	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	0.78	 	 	$	1.12	 	 	$	(0.34	)	 	 	30.4	%	 	W	
Net income — basic	 	$	0.79	 	 	$	1.13	 	 	$	(0.34	)	 	 	30.1	%	 	W	
Income from continuing operations — diluted	 	$	0.78	 	 	$	1.11	 	 	$	(0.33	)	 	 	29.7	%	 	W	
Net income — diluted	 	$	0.78	 	 	$	1.13	 	 	$	(0.35	)	 	 	31.0	%	 	W	
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)	 	 	 	
 	 	2007	 	 	2006	 	 	Amount	 	 	Percent	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	1,247,344	 	 	$	1,178,844	 	 	$	68,500	 	 	 	5.8	%	 	B	
Real estate segment	 	 	125,602	 	 	 	220,457	 	 	 	(94,855	)	 	 	43.0	%	 	W	
Marketing and trading	 	 	165,108	 	 	 	174,927	 	 	 	(9,819	)	 	 	5.6	%	 	W	
Other revenues	 	 	20,516	 	 	 	21,006	 	 	 	(490	)	 	 	2.3	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,558,570	 	 	 	1,595,234	 	 	 	(36,664	)	 	 	2.3	%	 	W	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	473,690	 	 	 	421,339	 	 	 	52,351	 	 	 	12.4	%	 	W	
Real estate segment operations	 	 	107,617	 	 	 	169,742	 	 	 	(62,125	)	 	 	36.6	%	 	B	
Marketing and trading fuel and purchased power	 	 	132,477	 	 	 	146,891	 	 	 	(14,414	)	 	 	9.8	%	 	B	
Operations and maintenance	 	 	348,888	 	 	 	346,759	 	 	 	2,129	 	 	 	0.6	%	 	W	
Depreciation and amortization	 	 	182,456	 	 	 	176,918	 	 	 	5,538	 	 	 	3.1	%	 	W	
Taxes other than income taxes	 	 	69,476	 	 	 	68,273	 	 	 	1,203	 	 	 	1.8	%	 	W	
Other expenses	 	 	17,291	 	 	 	16,952	 	 	 	339	 	 	 	2.0	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,331,895	 	 	 	1,346,874	 	 	 	(14,979	)	 	 	1.1	%	 	B	

Operating Income	 	 	226,675	 	 	 	248,360	 	 	 	(21,685	)	 	 	8.7	%	 	W	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	9,639	 	 	 	7,434	 	 	 	2,205	 	 	 	29.7	%	 	B	
Other income	 	 	8,642	 	 	 	17,489	 	 	 	(8,847	)	 	 	50.6	%	 	W	
Other expense	 	 	(7,883	)	 	 	(10,356	)	 	 	2,473	 	 	 	23.9	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	10,398	 	 	 	14,567	 	 	 	(4,169	)	 	 	28.6	%	 	W	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	103,959	 	 	 	93,408	 	 	 	10,551	 	 	 	11.3	%	 	W	
Capitalized interest	 	 	(10,020	)	 	 	(8,983	)	 	 	(1,037	)	 	 	11.5	%	 	B	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	93,939	 	 	 	84,425	 	 	 	9,514	 	 	 	11.3	%	 	W	

Income From Continuing Operations Before Income Taxes	 	 	143,134	 	 	 	178,502	 	 	 	(35,368	)	 	 	19.8	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	48,840	 	 	 	56,064	 	 	 	(7,224	)	 	 	12.9	%	 	B	

Income From Continuing Operations	 	 	94,294	 	 	 	122,438	 	 	 	(28,144	)	 	 	23.0	%	 	W	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations Net of Income Taxes	 	 	1,230	 	 	 	2,171	 	 	 	(941	)	 	 	43.3	%	 	W	

Net Income	 	$	95,524	 	 	$	124,609	 	 	$	(29,085	)	 	 	23.3	%	 	W	

Weighted-Average Common Shares Outstanding — Basic	 	 	100,138	 	 	 	99,168	 	 	 	970	 	 	 	1.0	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,718	 	 	 	99,562	 	 	 	1,156	 	 	 	1.2	%	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	0.94	 	 	$	1.23	 	 	$	(0.29	)	 	 	23.6	%	 	W	
Net income — basic	 	$	0.95	 	 	$	1.26	 	 	$	(0.31	)	 	 	24.6	%	 	W	
Income from continuing operations — diluted	 	$	0.94	 	 	$	1.23	 	 	$	(0.29	)	 	 	23.6	%	 	W	
Net income — diluted	 	$	0.95	 	 	$	1.25	 	 	$	(0.30	)	 	 	24.0	%	 	W	
B — Better
W — Worse

 
Exhibit 99.8
Last Updated 7/26/07
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Glossary of Terms
 	 	 	
Amounts Recovered Through Revenues	 	Amounts recovered from retail customers through the power supply adjustor in the current period.	
 	 	 	
Arizona Job Growth	 	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.	
 	 	 	
Building Permits — Metro Phoenix	 	The number of residential dwellings permitted to be built by authorized agencies in Maricopa County, Arizona. Single-family refers to detached buildings intended to be occupied by one family each. Multi-family permits represent the number of units authorized to be built in condominium, townhouse and apartment complexes.	
 	 	 	
Capacity Factor	 	The ratio of the average operating load of an electric power generating unit for a period of time to the capacity rating of the unit during that period.	
 	 	 	
Change in Mark-To-Market Value of Forward Sales	 	The gross margin related to the change in mark-to-market value in the current period of transactions which have been entered into during the current period or prior periods for which the commodities are scheduled for delivery in a future period.	
 	 	 	
Deferred Fuel and Purchased Power Costs — Current Period	 	Deferrals recorded in the period for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).	
 	 	 	
Deferred Fuel and Purchased Power Regulatory Asset	 	Balance of accumulated deferrals, net of amounts recovered through revenues, recorded for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).	
 	 	 	
Degree-Days — Cooling	 	A measure of temperatures designed to indicate the amount of electricity demand for cooling purposes. Cooling degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures less than the base temperature are ignored.	

 

 -2- 

Degree-Days — Heating	 	A measure of temperatures designed to indicate the amount of electricity demand for heating purposes. Heating degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures greater than the base temperature are ignored.	
 	 	 	
Electricity and Other Commodity Sales, Realized	 	Marketing and trading gross margin related to electricity and other commodities that were delivered in the then-current period.	
 	 	 	
Electricity Spot Prices —Palo Verde — Off-Peak	 	Electricity average daily spot prices at Palo Verde substation during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — Palo Verde — On-Peak	 	Electricity average daily spot prices at Palo Verde substation during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 — Off-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 — On-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Generation Capacity Out of Service and Replaced for Native Load	 	Total capacity required and economic, yet unavailable for retail customers and traditional wholesale contracts due to scheduled or unscheduled outages. Measured in megawatts per day.	
 	 	 	
Generation Production — Coal	 	Amount of net energy produced by coal-fueled generators. Measured in gigawatt-hours.	

 

 -3- 

Generation Production — Gas/Oil/Other	 	Amount of net energy predominately produced by natural gas and oil-fueled generators. A small amount of energy from hydroelectric and solar power plants is also included. Measured in gigawatt-hours.	
 	 	 	
Generation Production — Nuclear	 	Amount of net energy produced by nuclear-fueled generators. Measured in gigawatt-hours.	
 	 	 	
Gigawatt-hour (GWH)	 	A unit of energy equivalent to 1,000 megawatt-hours or 1,000,000 kilowatt-hours.	
 	 	 	
Marketing and Trading Gross Margin — Pretax	 	Revenues from marketing and trading activities (other than retail sales, traditional wholesale sales and retail load hedge management) less the costs of the related commodities, with mark-to-market gains or losses, before income taxes.	
 	 	 	
Mark-To-Market	 	Adjustments to revenues or costs to recognize value of sales and purchase contracts, for which the commodities are scheduled for delivery in a future period, at current forward wholesale prices.	
 	 	 	
Mark-To-Market Reversals on Realized Sales	 	The reversal of the gross margin related to mark-to-market transactions entered into in prior periods for which the commodities were delivered in the current period. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition or earnings recognition, because in accordance with mark-to-market accounting, the margin was already recorded in the prior period. A negative amount shown in this category represents the arithmetic opposite of a gain recognized in the period in which the commodities were delivered; an equal positive amount is reflected in the realized revenue or margin for delivered commodities. A positive amount shown in this category represents the arithmetic opposite of a loss recognized in the period in which the commodities were delivered; an equal negative amount is reflected in the realized revenue or margin for delivered commodities.	
 	 	 	
Megawatt (MW)	 	One million watts.	
 	 	 	
Megawatt-hour (MWh)	 	A unit of energy equivalent to 1,000 kilowatt-hours.	
 	 	 	
Native Load	 	Retail and wholesale sales supplied under traditional cost-based rate regulation.	
 	 	 	
Off-System Sales	 	Sales of electricity from generation owned or contracted by the company that is over and above the amount required to serve retail customers and traditional wholesale contracts.	

 

 -4- 

Power Supply Adjustor (“PSA”)	 	Power supply adjustor provides for recovery or refund of variations in actual fuel and purchased power costs compared with the amount included in base retail rates (currently $0.020743 per kWh) subject to certain specified parameters.	
 	 	 	
Purchased Power — Firm Load	 	Power purchased from wholesale market sources used to serve regulated retail demand and traditional wholesale contracts. Measured in gigawatt-hours.	
 	 	 	
Purchased Power — Marketing and Trading	 	Power purchased from wholesale market sources used to serve marketing and trading sales not served by company-owned generation. Measured in gigawatt-hours.	
 	 	 	
Realized and Mark-to-Market Components	 	Marketing and trading gross margin, before income taxes, for off-system sales and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the period of delivery and whether the margin is realized or mark-to-market. Realized margins relate to commodities that have been delivered. Mark-to-market margins relate to commodities that have delivery dates in future periods.	
 	 	 	
Retail Customer Growth	 	Percentage growth over the prior year in the number of retail customers.	
 	 	 	
Retail Electricity Usage	 	Total retail sales for a period divided by the average retail customers for the same period. Measured in kilowatt-hours per average customer.	
 	 	 	
Retail Load Hedge Management	 	Wholesale sales to liquidate electricity purchases originally intended to meet firm load during peak times, which purchases were not needed ultimately for firm load. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.	
 	 	 	
Retail Sales	 	Sales of electricity made directly to retail customers or ultimate customers. Residential retail sales are sales to households. Business retail sales include commercial, industrial, irrigation, and streetlighting sales. Measured in gigawatt-hours.	
 	 	 	
System Peak Demand	 	The demand for electricity during the one hour of highest use each month. Measured in megawatts.	
 	 	 	
Traditional Contracts	 	Wholesale sales resulting from unique cost-based, long-term contracts held by the company with various entities for the supply of electricity at agreed-upon prices.	

 

 -5- 

Weather Normalized	 	Adjusted to exclude the effects of abnormal weather patterns.	
 	 	 	
Wholesale Sales of Electricity	 	All wholesale sales of electricity not accounted for in sales under traditional contracts or retail load hedge management. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.	

 

Exhibit 99.9

FOR IMMEDIATE RELEASE	 	July 26, 2007	
Media Contact:	 	Alan Bunnell, (602) 250-3376	 	Page 1 of 2	
Analyst Contacts:	 	Rebecca Hickman, (602) 250-5668	 	 	
 	 	Lisa Malagon, (602) 250-5671	 	 	
Web site:	 	www.pinnaclewest.com	 	 	
PINNACLE WEST REPORTS LOWER SECOND QUARTER RESULTS
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported lower consolidated net income for the quarter ended June 30, 2007, of $79.0 million, or $0.78 per diluted share of common stock. This result compares with net income of $112.2 million, or $1.13 per diluted share, for the same quarter a year ago.
The lower quarterly results were principally driven by lower earnings at Arizona Public Service (APS) as a result of an $8 million after-tax regulatory disallowance, milder weather, and the absence of $7 million of income tax credits recorded in 2006.
“The exceptional population growth in our service territory drives an ever-increasing demand for electricity,” said Pinnacle West Chairman Bill Post. “Going forward, we need to continue making substantial investments in infrastructure and long-term resources, while working with regulators to achieve timely and constructive regulatory treatment.”
For the second quarter of 2007, APS reported lower net income of $75.1 million, compared with net income of $93.8 million for the same period a year ago. Operationally, the 2007 quarter reflected significantly improved performance at the Palo Verde Nuclear Generating Station, which increased its output by 54 percent compared with the same quarter a year ago.
SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $0.3 million, compared with $9.6 million in the 2006 second quarter, primarily due to decreased sales of residential property.
For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials .
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2007 second quarter earnings and recent developments at 12 noon (ET), today, Thursday, July 26, 2007. The web cast can be accessed at www.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter Conference ID Number 7372981. A replay of the call also will be available

 

 	 	 	
PINNACLE WEST SECOND QUARTER EARNINGS	 	July 26, 2007	
 	 	Page 2 of 2	
until 11:55 p.m. (ET), Thursday, August 2, 2007, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same ID number as above.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
 -30- 

 
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	SIX MONTHS ENDED	 	
 	 	JUNE 30,	 	 	JUNE 30,	 	
 	 	2007	 	 	2006	 	 	2007	 	 	2006	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	711,293	 	 	$	712,718	 	 	$	1,247,344	 	 	$	1,178,844	 	
Real estate segment	 	 	48,352	 	 	 	112,603	 	 	 	125,602	 	 	 	220,457	 	
Marketing and trading	 	 	92,637	 	 	 	89,925	 	 	 	165,108	 	 	 	174,927	 	
Other revenues	 	 	11,153	 	 	 	9,782	 	 	 	20,516	 	 	 	21,006	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	863,435	 	 	 	925,028	 	 	 	1,558,570	 	 	 	1,595,234	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment fuel and purchased power	 	 	270,337	 	 	 	263,944	 	 	 	473,690	 	 	 	421,339	 	
Real estate segment operations	 	 	46,174	 	 	 	98,412	 	 	 	107,617	 	 	 	169,742	 	
Marketing and trading fuel and purchased power	 	 	74,533	 	 	 	72,716	 	 	 	132,477	 	 	 	146,891	 	
Operations and maintenance	 	 	177,310	 	 	 	168,332	 	 	 	348,888	 	 	 	346,759	 	
Depreciation and amortization	 	 	92,835	 	 	 	89,297	 	 	 	182,456	 	 	 	176,918	 	
Taxes other than income taxes	 	 	34,757	 	 	 	32,700	 	 	 	69,476	 	 	 	68,273	 	
Other expenses	 	 	8,803	 	 	 	8,430	 	 	 	17,291	 	 	 	16,952	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	704,749	 	 	 	733,831	 	 	 	1,331,895	 	 	 	1,346,874	 	

Operating Income	 	 	158,686	 	 	 	191,197	 	 	 	226,675	 	 	 	248,360	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	5,195	 	 	 	3,633	 	 	 	9,639	 	 	 	7,434	 	
Other income	 	 	5,869	 	 	 	12,022	 	 	 	8,642	 	 	 	17,489	 	
Other expense	 	 	(3,269	)	 	 	(5,815	)	 	 	(7,883	)	 	 	(10,356	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	7,795	 	 	 	9,840	 	 	 	10,398	 	 	 	14,567	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	52,967	 	 	 	45,882	 	 	 	103,959	 	 	 	93,408	 	
Capitalized interest	 	 	(5,213	)	 	 	(4,959	)	 	 	(10,020	)	 	 	(8,983	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	 	 	47,754	 	 	 	40,923	 	 	 	93,939	 	 	 	84,425	 	

Income From Continuing Operations Before Income Taxes	 	 	118,727	 	 	 	160,114	 	 	 	143,134	 	 	 	178,502	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income Taxes	 	 	40,231	 	 	 	49,271	 	 	 	48,840	 	 	 	56,064	 	

Income From Continuing Operations	 	 	78,496	 	 	 	110,843	 	 	 	94,294	 	 	 	122,438	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Taxes	 	 	498	 	 	 	1,311	 	 	 	1,230	 	 	 	2,171	 	

Net Income	 	$	78,994	 	 	$	112,154	 	 	$	95,524	 	 	$	124,609	 	

Weighted-Average Common Shares Outstanding — Basic	 	 	100,229	 	 	 	99,221	 	 	 	100,138	 	 	 	99,168	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	.	 	
Weighted-Average Common Shares Outstanding — Diluted	 	 	100,779	 	 	 	99,640	 	 	 	100,718	 	 	 	99,562	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from continuing operations — basic	 	$	0.78	 	 	$	1.12	 	 	$	0.94	 	 	$	1.23	 	
Net income — basic	 	$	0.79	 	 	$	1.13	 	 	$	0.95	 	 	$	1.26	 	
Income from continuing operations — diluted	 	$	0.78	 	 	$	1.11	 	 	$	0.94	 	 	$	1.23	 	
Net income — diluted	 	$	0.78	 	 	$	1.13	 	 	$	0.95	 	 	$	1.25	 	

Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	THREE MONTHS ENDED	 	 	 	 	
 	 	JUNE 30,	 	 	Increase (Decrease)	 	
 	 	2007	 	 	2006	 	 	Pretax	 	 	After Tax	 	
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (closest GAAP measure)	 	$	158,686	 	 	$	191,197	 	 	$	(32,511	)	 	$	(19,815	)	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	177,310	 	 	 	168,332	 	 	 	8,978	 	 	 	5,472	 	
Real estate segment operations	 	 	46,174	 	 	 	98,412	 	 	 	(52,238	)	 	 	(31,839	)	
Depreciation and amortization	 	 	92,835	 	 	 	89,297	 	 	 	3,538	 	 	 	2,156	 	
Taxes other than income taxes	 	 	34,757	 	 	 	32,700	 	 	 	2,057	 	 	 	1,254	 	
Other expenses	 	 	8,803	 	 	 	8,430	 	 	 	373	 	 	 	227	 	
Marketing and trading fuel and purchased power	 	 	74,533	 	 	 	72,716	 	 	 	1,817	 	 	 	1,107	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	48,352	 	 	 	112,603	 	 	 	(64,251	)	 	 	(39,161	)	
Other revenues	 	 	11,153	 	 	 	9,782	 	 	 	1,371	 	 	 	836	 	
Marketing and trading revenues	 	 	92,637	 	 	 	89,925	 	 	 	2,712	 	 	 	1,653	 	

Regulated electricity segment gross margin	 	$	440,956	 	 	$	448,774	 	 	$	(7,818	)	 	$	(4,766	)	

 	 	SIX MONTHS ENDED	 	 	 	 	
 	 	JUNE 30,	 	 	Increase (Decrease)	 	
 	 	2007	 	 	2006	 	 	Pretax	 	 	After Tax	 	
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income (closest GAAP measure)	 	$	226,675	 	 	$	248,360	 	 	$	(21,685	)	 	$	(13,217	)	
Plus:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	348,888	 	 	 	346,759	 	 	 	2,129	 	 	 	1,298	 	
Real estate segment operations	 	 	107,617	 	 	 	169,742	 	 	 	(62,125	)	 	 	(37,865	)	
Depreciation and amortization	 	 	182,456	 	 	 	176,918	 	 	 	5,538	 	 	 	3,375	 	
Taxes other than income taxes	 	 	69,476	 	 	 	68,273	 	 	 	1,203	 	 	 	733	 	
Other expenses	 	 	17,291	 	 	 	16,952	 	 	 	339	 	 	 	207	 	
Marketing and trading fuel and purchased power	 	 	132,477	 	 	 	146,891	 	 	 	(14,414	)	 	 	(8,785	)	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate segment revenues	 	 	125,602	 	 	 	220,457	 	 	 	(94,855	)	 	 	(57,814	)	
Other revenues	 	 	20,516	 	 	 	21,006	 	 	 	(490	)	 	 	(299	)	
Marketing and trading revenues	 	 	165,108	 	 	 	174,927	 	 	 	(9,819	)	 	 	(5,985	)	

Regulated electricity segment gross margin	 	$	773,654	 	 	$	757,505	 	 	$	16,149	 	 	$	9,844