Adopted November 9, 1939	 	File No. 69-306	
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
Statement by Holding Company
Claiming Exemption under Rule U-3A-2
from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
Pinnacle West Capital Corporation

(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information:

 

1. Name, state of organization, location and nature of business of Claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which Claimant directly or indirectly holds an interest.
     Pinnacle West Capital Corporation (“Claimant”), having been incorporated on February 20, 1985 under the laws of the State of Arizona and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized principally to acquire and hold securities of other corporations for investment purposes. The following are the subsidiaries of the Claimant:
a. Arizona Public Service Company (“APS” or the “Company”) is engaged principally in serving electricity in the State of Arizona. Incorporated in 1920 under the laws of the State of Arizona and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, APS became a subsidiary of the Claimant pursuant to a corporate restructuring plan approved by the Company’s shareholders on April 18, 1985.
(1) APS Foundation, Inc. - an Arizona non-profit corporation, having been incorporated on December 22, 1981, and having its principal executive offices at 400 North 5th Street, Phoenix, Arizona 85004, was organized primarily to make distributions to charitable organizations.
(2) AXIOM Power Solutions, Inc. (“AXIOM”) – an Arizona corporation, having been incorporated on October 29, 1996 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell security and energy management products and services. AXIOM is a wholly-owned subsidiary of APS.
(3) Bixco, Inc. (“Bixco”) – an Arizona corporation, having been incorporated on June 4, 1971 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily to conduct exploration activities for energy resources and other valuable minerals. Subsequent to the sale of its oil and natural gas properties in 1981, Bixco has been inactive. Bixco is a wholly-owned subsidiary of APS.
(4) Powertree Carbon Co., LLC (“Powertree”) - PowerTree Carbon Company, LLC (“Powertree”) - a Delaware limited liability company, having been formed on June 9, 2003 and having its registered office in the State of Delaware at 222 Delaware Avenue, P.O. Box 2306, Wilmington, New Castle County, Delaware 19899, was organized primarily to invest in and develop forestation and reforestation projects designed to sequester carbon from the atmosphere, where such projects are not inconsistent with the development and enhancement of wildlife, and to secure the legal rights associated with such sequestration. APS holds about 3% interest in Powertree.
(5) PWENewco, Inc. (“PWENewco”) – an Arizona corporation, having been incorporated on January 30, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily to own real and personal property. PWENewco is a wholly-owned subsidiary of APS.
b. APSES Holdings, Inc. – a Delaware corporation, having been incorporated on March 24, 2003 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized as a holding company for APS Energy L.P.

 

(1) APS Energy L.P. – an Arizona limited partnership, having been formed on January 29, 2003 and having its principal executive offices at 400 North 5 th Street, Phoenix, Arizona 85004 was organized to sell energy, products and services. APSES Holdings, Inc. holds a 99% interest in APS Energy L.P.
c. APS Energy Services Company, Inc. (“APSES”) – an Arizona corporation, having been incorporated on November 6, 1998 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell energy, products and services. APSES is a wholly-owned subsidiary of the Claimant. APSES holds a 1% interest in APS Energy L.P.
(1) Northwind Phoenix LLC – a Delaware limited liability company, having been formed on December 14, 1999 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to provide district cooling services to customers in downtown Phoenix, Arizona. Northwind Phoenix LLC is a wholly-owned subsidiary of APSES.
(a) Tucson District Energy LLC – an Arizona limited liability corporation having been acquired by Northwind Phoenix LLC on May 31, 2001. Tucson District Energy LLC is a wholly-owned subsidiary of Northwind Phoenix LLC.
d. SunCor Development Company (“SunCor”) – an Arizona corporation, having been incorporated on June 30, 1965 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, is a wholly-owned subsidiary of Claimant engaged primarily in the owning, holding and development of real property.
(1) SunCor Golf, Inc. (“SunCor Golf”) – an Arizona corporation, having been incorporated on December 31, 1986 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, operates family fun parks, resorts and golf properties. SunCor Golf is a wholly-owned subsidiary of SunCor.
(a) Westworld Golf Course LLC – an Arizona limited liability company, having been formed on September 8, 1998 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to engage in golf course operations. Westworld Golf Course LLC is a wholly owned subsidiary of SunCor Golf, Inc.
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(2) Golden Heritage Homes, Inc. (“Golden Heritage Homes”) – an Arizona corporation, having been incorporated on May 14, 1986 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, sells single family residential real property. Golden Heritage Homes is a wholly-owned subsidiary of SunCor.
(a) Golden Heritage Construction, Inc. (“GH Construction”) – an Arizona corporation, having been incorporated on December 30, 1993 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to serve as a general residential contractor. GH Construction became a wholly-owned subsidiary of Golden Heritage Homes, Inc. on January 1, 1996.
(i) Golden Heritage Construction Nevada, LLC – an Arizona limited liability company, having been formed on February 14, 2003 and having a registered office c/o CT Corporation, 3225 North Central Avenue, Phoenix, Arizona 85012, was organized to apply for and hold a Nevada contractors license. Golden Heritage Construction Nevada, LLC is a wholly-owned subsidiary of Golden Heritage Construction, Inc.
(b) Heritage Financial Services, LLC – an Arizona limited liability company, having been formed on August 19, 1998 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to provide mortgage services to residential home buyers. Heritage Financial Services, LLC is a wholly-owned subsidiary of Golden Heritage Homes, Inc.
(3) SCM, Inc. (“SCM”) – an Arizona corporation, having been incorporated on May 14, 1991 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to participate in real estate joint ventures and other real estate related activities. SCM is a wholly-owned subsidiary of SunCor and is currently inactive.
(4) SunCor Realty & Management Company (“SunCor Realty”) – an Arizona corporation, having been incorporated on April 1, 1994 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to
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participate in real estate management and other real estate related activities. SunCor Realty is a wholly-owned subsidiary of SunCor.
(5) Palm Valley Golf Club, Inc. (“Palm Valley Golf”) – an Arizona corporation, having been incorporated on January 23, 1996 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to hold title to the Palm Valley Golf Course located in Goodyear, Arizona. Palm Valley Golf is a wholly-owned subsidiary of SunCor.
(6) Rancho Viejo de Santa Fe, Inc. (“Rancho Viejo”) – a New Mexico corporation, having been incorporated on March 18, 1996 and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, was organized to engage in real estate development in New Mexico. Rancho Viejo is a wholly-owned subsidiary of SunCor.
(a) Ranchland Utility Company (“Ranchland”) – a New Mexico corporation, having been incorporated on September 5, 1997 and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, is a wastewater utility. Ranchland is a wholly-owned subsidiary of Rancho Viejo.
(b) Rancho Viejo Village Center, LLC – a New Mexico limited liability company, having been formed on March 4, 2003 and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, was organized to own and invest in real estate in New Mexico. Rancho Viejo Village Center, LLC is a wholly-owned subsidiary of Rancho Viejo.
(7) SunCor Idaho, LLC, formerly known as Spring Valley Development, LLC – an Idaho limited liability company, having been formed on July 22, 2003 and having its principal executive offices at 485 E. Riverside Drive, Suite 300, Eagle, Idaho 83616, was organized to engage in real estate development in Idaho. SunCor Idaho, LLC is a wholly-owned subsidiary of SunCor.
(8) Golf de Mexico, S.A. de C.V. (“Golf de Mexico”) – a Mexican variable capital corporation, having been incorporated on December 1, 1992 in Tijuana, Baja California, Mexico and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to operate and manage the Real del Mar Golf Course in Mexico. Golf de Mexico has been inactive since 1997.
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(9) Type Two, Inc. – an Arizona corporation, having been incorporated on March 29, 1990 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to hold and lease non-irrigation water rights. SunCor holds a 30% interest in Type Two Inc.
(10) Stone Ridge- Prescott Valley LLC – an Arizona limited liability company, having been formed on January 26, 2001 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop a master-planned community with golf course located in Prescott Valley, Arizona. SunCor holds a 60% interest in Stone Ridge – Prescott Valley LLC.
(a) Stone Ridge Golf Course LLC – an Arizona limited liability company, having been formed on April 16, 2002 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to own and operate a golf course located in Prescott Valley, Arizona. Stone Ridge Golf Course LLC is a wholly-owned subsidiary of Stone Ridge – Prescott Valley LLC.
(b) StoneRidge Commercial, L.L.C. – an Arizona limited liability company, having been formed on October 26, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to acquire, own, improve, develop, lease, manage, operate and eventually sell at a profit the real property and planned improvements known as StoneRidge Commercial located in Prescott Valley, Arizona. SunCor holds a 60% interest in StoneRidge Commercial, L.L.C.
(11) Hayden Ferry Lakeside LLC – an Arizona limited liability company, having been formed on April 10, 2000 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a mixed-use residential, office, hotel and retail commercial development in Tempe, Arizona. Hayden Ferry Lakeside LLC is a wholly-owned subsidiary of SunCor.
(a) Lakeside Residential Communities, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. Lakeside Residential Communities,
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L.L.C. is a wholly-owned subsidiary of Hayden Ferry Lakeside LLC.
(i) Edgewater at Hayden Ferry Lakeside, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. Edgewater at Hayden Ferry Lakeside, L.L.C. is a wholly-owned subsidiary of Lakeside Residential Communities, L.L.C.
(ii) BV at Hayden Ferry Lakeside, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. BV at Hayden Ferry Lakeside, L.L.C. is a wholly-owned subsidiary of Lakeside Residential Communities, L.L.C.
(12) Club West Golf Course LLC – an Arizona limited liability company, having been formed on August 28, 2000 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to own and operate Foothills Club West Golf Course in Phoenix, Arizona. Club West Golf Course LLC is a wholly-owned subsidiary of SunCor.
(13) Scottsdale Mountain LLP – an Arizona limited liability partnership, having been formed on April 27, 1992 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell 1,389 acres in McDowell Mountain, Scottsdale, Arizona as a master-planned community. SunCor holds a 65% interest in Scottsdale Mountain LLP.
(14) SunRidge Canyon LLC – an Arizona limited liability company, having been formed on June 24, 1994 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a 50 acre golf-oriented master planned community located in Scottsdale, Arizona. SunRidge Canyon LLC is a wholly-owned subsidiary of SunCor. The only asset remaining in this LLC is the golf course.
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(15) Sedona Golf Resort LLC – an Arizona limited liability company, having been formed on February 6, 1995 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a 300-acre golf oriented master-planned community in Sedona, Arizona. SunCor holds a 50% interest in Sedona Golf Resort LLC. The only asset remaining in this LLC is the golf course.
(16) Kabuto/SunCor Joint Venture – an Arizona general partnership, having been formed on October 15, 1990 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and sell the Village of Litchfield Greens, a residential community located in Litchfield Park, Arizona. SunCor holds a 70% interest in Kabuto/SunCor Joint Venture.
(17) Centrepoint Associates LLC – an Arizona limited liability company, having been formed on October 29, 1988 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and manage a 60 acre commercial property as a shopping center on Elliot Road in Tempe, Arizona. SunCor holds a 50% interest in Centrepoint Associates LLC.
(18) Hidden Hills of Scottsdale LLC – an Arizona limited liability company, having been formed on October 21, 1996 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop a single family residential area consisting of 320 acres located in Scottsdale, Arizona. Hidden Hills of Scottsdale LLC is a wholly-owned subsidiary of SunCor.
(19) Talavi Associates LLC – an Arizona limited liability company, having been formed on November 20, 1997 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop 33 acres located in Glendale, Arizona as an office and light industrial complex. SunCor holds a 50% interest in Talavi Associates LLC.
(20) Coral Canyon Town Center LLC – a Utah limited liability company, having been formed on April 19, 2002 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and improve office property of an anticipated two story building located in Washington, Utah. SunCor holds a 75% interest in Coral Canyon Town Center LLC.
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(21) Coral Canyon HD, L.L.C. – a Utah limited liability company, having been formed on February 4, 2004 and having its principal executive offices at c/o SunCor Development Company, 2303 North Coral Canyon Boulevard, Washington, Utah 84780, was organized to acquire, own, improve, develop, market, manage, operate, lease and sell commercial property in Washington, Utah. SunCor holds a 50% interest in Coral Canyon HD, L.L.C.
(22) Foothills Sewer Company, Inc. (“Foothills”) – an Idaho corporation, having been incorporated on August 18, 2004 and having its principal executive offices at 300 North 6 th Street, Boise, Idaho 83702, was organized to be the wastewater facility for the Avimor master-planned community in Boise, Idaho. Foothills is a wholly-owned subsidiary of SunCor.
(23) Highland Water Company, Inc. (“Highland”) – an Idaho corporation, having been incorporated on August 18, 2004 and having its principal executive offices at 300 North 6 th Street, Boise, Idaho 83702, was organized to be utilized as the water service company serving the Avimor master-planned community in Boise, Idaho. Highland is a wholly-owned subsidiary of SunCor.
(24) Palm Valley Professional Plaza, LLC – an Arizona limited liability company, having been formed on July 9, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to own, develop, and manage an office condominium project in Goodyear, Arizona. Palm Valley Professional Plaza, LLC is a wholly-owned subsidiary of SunCor.
(25) Riverside Distribution Center, LLC (“Riverside”) – an Arizona limited liability company, having been formed on January 23, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to acquire, own, finance, improve, and sell at a profit a 501,275 square foot warehouse and ancillary facilities known as the Riverside Distribution Center in Phoenix, Arizona. SunCor owns a 50% interest in Riverside.
(26) SDC Prescott Valley LLC – an Arizona limited liability company, having been formed on April 6, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to acquire, own, develop, market, and sell real property in Prescott Valley, Arizona. SDC Prescott Valley, LLC is a wholly-owned subsidiary of SunCor.
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(27) SDC Prescott LLC – an Arizona limited liability company, having been formed on April 6, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to acquire, own, develop, market, and sell real property at Prescott Lakes in Prescott, Arizona. SDC Prescott, LLC is a wholly-owned subsidiary of SunCor.
d. El Dorado Investment Company – an Arizona corporation, having been incorporated on July 27, 1983 and having its principal executive offices at 400 North 5 th Street, MS 9988, Phoenix, Arizona 85004, is a wholly-owned subsidiary of Claimant engaged primarily in the acquisition and holding of stocks and securities of other companies for investment purposes.
(1) Underground Imaging Technologies, LLC – an Arizona limited liability corporation, having been formed on April 11, 2001 and having its principal executive offices at 1210 Vermeer Road East, Pella, Iowa 50219 was organized to develop subsurface imaging applications. El Dorado holds a 50% interest in Underground Imaging Technologies, LLC.
(2) NAC Holding Inc. – a Delaware corporation, having been incorporated on August 26, 1968 and having its principal executive offices at 3930 East Jones Bridge Road, Norcross, Georgia 30092, was organized to provide a variety of services to the nuclear industry. El Dorado held a 99.8% interest in NAC Holding Inc. (All stock was sold in 2004.)
(a) NAC International Inc. – a Delaware corporation, having been incorporated on January 3, 1994 and having its principal executive offices at 3930 East Jones Bridge Road, Norcross, Georgia 30092, was organized to provide a variety of services to the nuclear industry. NAC International Inc. was a wholly-owned subsidiary of NAC Holding Inc. (All stock was sold in 2004.)
(3) Phoenix Suns Limited Partnership – an Arizona limited partnership, having been formed on July 1, 1993 and having its principal executive offices at 201 East Jefferson Street, Phoenix, Arizona 85004, was organized to own a percentage interest in the Phoenix Suns professional basketball team. El Dorado held a 21.7% interest in the Phoenix Suns Limited Partnership. (Interest was sold in 2004.)
(4) AZ PB Partnership – an Arizona partnership, having been formed on June 26, 1995 and having its principal executive offices at 401 East Jefferson Street, Phoenix, Arizona 85004, was
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organized to own a percentage interest in a professional baseball team. El Dorado holds a 1.7% interest in AZ PB Partnership.
(5) El Dorado Ventures III – a California general partnership, formed on May 9, 1991 and having its principal executive offices at 2884 Sand Hill Road, Suite 121, Menlo Park, California 94025, was organized to invest in emerging companies with exceptional growth potential. El Dorado holds a 24.4% interest in El Dorado Ventures III.
(6) Phoenix Downtown Theater LLC – an Arizona limited liability company, formed on February 4, 1999 and having its principal executive offices at 2400 East Arizona Biltmore Circle, Suite 1270, Phoenix, Arizona 85016, was organized to own and manage a theater. El Dorado owns a 6.9% interest in Phoenix Downtown Theater LLC.
(7) Nxt Phase Corporation – a Canadian company, formed on August 17, 2004 and having its principal executive offices at 3040 East Broadway, Vancouver, British Columbia V5M 1Z4, was organized to manufacture digital and fiber optic control and measurement devices for the power industry. El Dorado owns a 19% interest in Nxt Phase.
(8) Acoustic Locating Services, LLC — a Delaware limited liability company, formed on December 7, 2004 and having its principal executive offices at 400 N. Fifth Street, MS 9988, Phoenix, Arizona 85004, was organized to provide sewer locating services. El Dorado owns a 100% interest in Acoustic Locating Services.
(9) Arizona Business Accelerator (“AzBA”) — an Arizona corporation, formed on June 29, 2004 and having its principal executive offices at 201 E. Washington, Suite 1408, Phoenix, AZ 85004, was organized to encourage innovative technology development throughout Arizona. El Dorado owns a 17% interest in AzBA.
(10) PowerOneData, Inc. — a Delaware corporation, formed on March 24, 2000 and having its principal executive offices at 2600 N. Central Ave, Suite 1750, Phoenix, AZ 85004, was organized to design and manufacture automated meter reading systems. El Dorado owns a 8.96% interest in PowerOneData.
(11) Severon Corporation — a Delaware corporation, formed on March 14, 2001 and having its principal executive offices at 3305 NW Aloclek Drive, Hillsboro, OR 97124, was organized to design and manufacture monitoring devices for critical electrical generation assets. El Dorado owns a 13.1% interest in Serveron.
e. Pinnacle West Energy Corporation (“PWEC”) – an Arizona corporation, having been incorporated on September 27, 1999 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was
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organized primarily for the development, production and sale of wholesale energy. PWEC is a wholly-owned subsidiary of the Claimant.
(1) GenWest, LLC (“GenWest”) – a Delaware limited liability corporation, formed on March 6, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized to own, build and operate power plants and participate in other activities which are necessary or advisable to accomplish the foregoing process. GenWest, LLC is a wholly-owned subsidiary of Pinnacle West Energy.
(2) APACS Holdings LLC – an Arizona limited liability corporation, formed on August 29, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized for a gas storage facility. APACS Holdings LLC is a wholly-owned subsidiary of Pinnacle West Energy.
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2. A brief description of the properties of Claimant and each of its subsidiary public utility companies used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants and electric and gas distribution facilities, including all such properties which are outside the state in which Claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such state.
     Neither the Claimant nor any of its subsidiaries own property used for the production, transmission and distribution of natural or manufactured gas at retail. APS and PWEC, each a “public utility company” as that term is defined in the Public Utility Holding Company Act of 1935, are the only two of Claimant’s subsidiaries (other than the EWG) that own property used for the generation, transmission and distribution of electric energy for sale.
     Exhibit C attached hereto shows the location of (i) APS’ major generating plants (including those owned jointly with others), principal transmission lines (including those operated for others) and interconnections of transmission lines with out-of-state utilities at state lines; and (ii) PWEC’s major generating plants. All of such facilities, and all of APS’ distribution facilities, except (i) the Four Corners Generating Station (“Four Corners”) and associated transmission lines, (ii) the Silverhawk Power Plant (“Silverhawk”), and (iii) a portion of the Marketplace/Mead/Phoenix transmission line, are located within the State of Arizona. Four Corners is a mine-mouth power plant, located in the northwest corner of New Mexico, near the city of Farmington, approximately 40 miles east of the Arizona-New Mexico border. Silverhawk is a 570 MW combined cycle power plant located 20 miles north of Las Vegas, Nevada.
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Claimant’s present generating facilities have capacity as follows:
APS – Net Accredited Capacity
     APS’ present generating facilities have an accredited capacity as follows: 

 	 	Capacity(kW)	 	
Coal:	 	 	 	 	
Units 1, 2, and 3 at Four Corners	 	 	560,000	 	
15% owned Units 4 and 5 at Four Corners	 	 	222,000	 	
Units 1, 2, and 3 at Cholla Plant	 	 	615,000	 	
14% owned Units 1, 2, and 3 at the Navajo Plant	 	 	315,000	 	
 	 	 	 	
 	 	 	1,712,000	 	
 	 	 	 	
Gas or Oil:	 	 	 	 	
Two steam units at Ocotillo and two steam units at Saguaro	 	 	430,000	 	
Eleven combustion turbine units	 	 	493,000	 	
Three combined cycle units	 	 	255,000	 	
 	 	 	 	
 	 	 	1,178,000	 	
 	 	 	 	
Nuclear:	 	 	 	 	
29.1% owned or leased Units 1, 2, and 3 at Palo Verde	 	 	1,107,000	 	

Hydro and Solar	 	 	9,510	 	

Total APS facilities	 	 	4,006,510	 	
 	 	 	 	
Pinnacle West Energy – Permitted Capacity
     PWEC’s present generating facilities have a permitted capacity as follows:

Gas or Oil:	 	 	 	 	
Two combined cycle units at Redhawk, two combined cycle units at West Phoenix and 75% ownership of one combined cycle unit at Silverhawk	 	 	2,138,000	 	
One combustion turbine unit at Saguaro	 	 	80,000	 	

Total Pinnacle West Energy facilities	 	 	2,218,000	 	
 	 	 	 	
     APS’ transmission facilities consist of approximately 5,419 pole miles of overhead lines and approximately 37 miles of underground lines, 5,250 miles of which are located within the State of Arizona and 169 miles of which are not located in the State of Arizona. APS’ distribution facilities consist of approximately 12,211 pole miles of overhead lines and approximately 13,727 miles of underground lines, all of which are located within the State of Arizona.
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3. The following information for the last calendar year with respect to Claimant and each of its subsidiary public utility companies:
(The following data excludes marketing and trading activities for non-public utility companies, interaffiliate transfers (except sales by APS to APS Energy Services Company, Inc., a competitive retail affiliate) and financial instruments.
      a. Number of kwh of electric energy sold (at retail or wholesale), and Mcf. of natural or manufactured gas distributed at retail.
49,801,676,000 kwh of electric energy sold at wholesale or retail (with total sales of $3,135,835,000)
0 Mcf. of natural or manufactured gas distributed at retail
      b. Number of kwh of electric energy and Mcf. of natural or manufactured gas distributed at retail outside the state in which each such company is organized.
66,271,000 kwh of electric energy was distributed at retail outside Arizona (with total sales of $3,614,000)
0 Mcf. of natural or manufactured gas distributed at retail outside Arizona
      c. Number of kwh of electric energy and Mcf. of natural or manufactured gas sold at wholesale outside the state in which each such company is organized, or at the state line.
12,921,994,000 kwh of electric energy was sold at wholesale outside Arizona or at state line (with total sales of $627,659,000)
23,073,925 Mcf. of natural or manufactured gas sold at wholesale outside Arizona or at state line (with total sales of $123,208,000)
      d. Number of kwh of electric energy and Mcf. of natural or manufactured gas purchased outside the state in which each such company is organized or at the state line.
13,735,096,000 kwh of electric energy was purchased outside Arizona or at state line (with total sales of $657,880,000)
65,765,000 Mcf. of natural or manufactured gas purchased outside Arizona or at state line (with total sales of $354,079,000)
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4. The following information for the reporting period with respect to Claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars:
      a. Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas.
     GenWest, LLC owns an undivided seventy-five percent (75%) interest in the Silverhawk Power Plant Project, including the Silverhawk switchyard, which is a 570 MW combined-cycle plant, located 20 miles north of Las Vegas, Nevada. The business address for the Silverhawk Power Plant is as follows:
GenWest, LLC
400 North Fifth Street, Mail Station 8983
Phoenix, Arizona 85004
Attention: Warren Kotzmann
      b. Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held.
     GenWest, LLC is an EWG. It is wholly owned by Pinnacle West Energy Corporation, which in turn is a wholly owned subsidiary of the Claimant.
      c. Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company.

 	(1)  	type and amount of capital invested, directly or indirectly, by the holding company:	
 	 	 	 	 	 	 	
 	 	$	(863,000	)	 	short-term debt (financed at Pinnacle West Energy Corporation)	
 	 	 	867,000	 	 	inter-company payables	
 	 	 	299,093,000	 	 	paid in capital and retained earnings (equity)	
 	 	 	 	 	 	
 	 	$	299,097,000	 	 	 	
 	 	 	 	 	 	
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 	(2)  	any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption:	
 	
 	   	none	
 	
 	(3)  	any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company:	

 	(a)  	PWE guarantee up to $45,658,036 of GenWest performance under The Engineering Procurement and Construction Agreement for building the Silverhawk Power Plant.	
 	
 	(b)  	Pinnacle West Capital Corporation guarantee of PWE payment of $5,376,400 for the purchase of Construction Turbines.	
NOTE: With respect to both of these guarantees, the amounts due to the third party vendors from GenWest have been paid in full.
      d. Capitalization and earnings of the EWG or foreign utility company during the reporting period. 

 		
(1)	 	capitalization:	 	 	
 	 	$	(863,000	)	 	short-term debt (financed at PWE)	
 	 	 	299,093,000	 	 	paid in capital and retained earnings (equity)	
 	 	 	 	 	 	
 	 	$	298,230,000	 	 	 	

(2)	 	earnings:	 	 	
 	 	$	7,575,000	 	 	pre-tax income	
 	 	 	(1,495,000	)	 	other taxes – primarily property taxes	
 	 	 	0	 	 	income taxes	
 	 	 	 	 	 	
 	 	$	6,080,000	 	 	 	
 	 	 	 	 	 	
16

 

      e. Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s).

 	(1)  	Limited Liability Company Agreement of GenWest, LLC by and among Pinnacle West Energy Corporation as sole Member and Pinnacle West Energy Corporation in its capacity as the initial Manager of GenWest, LLC, dated February 27, 2001. PWEC made an initial capital contribution of $1,000 prior to 2004. No other fees have been paid to date.	
 	
 	(2)  	Facility Operating and Maintenance Agreement dated as of April 18, 2002 between Pinnacle West Energy Corporation as Operating Agent and GenWest, LLC and Southern Nevada Water Authority, as Participants in the Silverhawk Power Plant, pursuant to which, Pinnacle West Energy Corporation serves as the Operating Agent of the Silverhawk Power Plant. GenWest, LLC paid PWEC $4,235,935.	
 	
 	(3)  	Contract No. 81825, between GenWest, LLC and Pinnacle West Capital Corporation, pursuant to which GenWest sold to Pinnacle West Capital Corporation all of its rights to the output of the Silverhawk Power Plant. Revenues for 2004 were $18,702,325.	
 	
 	(4)  	Agency Agreement between Southern Nevada Water Authority, GenWest, LLC and Pinnacle West Energy Corporation dated as of July 1, 2004, pursuant to which, Southern Nevada Water Authority and GenWest appointed Pinnacle West Energy Corporation to act as its agent in connection with certain specified contracts. No fees or revenues.	
 	
 	(5)  	Kern River Gas Transmission Company Agency Delegation Agreement between Kern River Gas Transmission Company, GenWest, LLC and Pinnacle West Capital Corporation, pursuant to which GenWest delegated its responsibility under the Operational Balancing Agreement to Pinnacle West Capital Corporation. No fees or revenues.	
17

 

EXHIBIT A
      A consolidating statement of income and surplus of the Claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of Claimant and its subsidiary companies as of the close of such calendar year.
     Exhibit A hereto includes consolidating statements of income and consolidating balance sheets for the Claimant and the following of its subsidiaries: Arizona Public Service Company, SunCor Development Company, El Dorado Investment Company, APS Energy Services Company, Inc. and Pinnacle West Energy Corporation. Subsidiaries have been consolidated for financial reporting purposes in accordance with Statement of Financial Accounting Standards No. 94, Consolidation of All Majority-Owned Subsidiaries . Also included are consolidating statements of income and consolidating balance sheets for: SunCor Development Company and its subsidiaries, Pinnacle West Energy Corporation and its subsidiaries, APS Energy Services Company, Inc. and its subsidiaries, and El Dorado Investment Company and its subsidiaries.
18

 

EXHIBIT B
      An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system.
     Exhibit B hereto includes an organizational chart of the holding-company system, including each EWG.
19

 

     The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 25th day of February, 2005.

 	 	Pinnacle West Capital Corporation	
 	 	 	
 	 	                  (Name of Claimant)	
 	 	 	 	 	
	 	By	 	/s/ Barbara M. Gomez	
	 	 	 	 	
	 	 	 	Barbara M. Gomez	
	 	 	 	Vice President & Treasurer	
[CORPORATE SEAL]	 	 	 	 	
 	
Attest:	

/s/ Betsy A. Pregulman	
	
Betsy A. Pregulman	
Associate Secretary	
Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed:

Barbara M. Gomez	 	Vice President and Treasurer	
 	 	 	
(Name)	 	(Title)	
400 North Fifth Street, Station 9996, Phoenix, Arizona 85004
(Address)
20

 

EXHIBIT A
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEST	 	 	 	 	 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PARENT	 	 	 	 	 	 	WEST	 	 	 	 	 	 	 	 	 	 	APS ENERGY	 	 	ELIMINATIONS and	 	 	 	 	
Year ended December 31, 2004	 	COMPANY	 	 	APS	 	 	ENERGY	 	 	SUNCOR	 	 	EL DORADO	 	 	SERVICES	 	 	ADJUSTMENTS	 	 	TOTAL	 	
 	
OPERATING REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	—	 	 	$	2,051,602	 	 	$	45,469	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(61,824	) (a)	 	$	2,035,247	 	
Marketing and trading segment	 	 	145,744	 	 	 	145,519	 	 	 	47,839	 	 	 	 	 	 	 	 	 	 	 	173,588	 	 	 	(50,820	) (a)	 	 	461,870	 	
Real estate segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	359,792	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	359,792	 	
Other revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	42,816	 	 	 	 	 	 	 	42,816	 	
 	
Total	 	 	145,744	 	 	 	2,197,121	 	 	 	93,308	 	 	 	359,792	 	 	 	—	 	 	 	216,404	 	 	 	(112,644	)	 	 	2,899,725	 	

OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	12,265	 	 	 	612,300	 	 	 	1,624	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(58,756	) (a)	 	 	567,433	 	
Marketing and trading segment purchased power and fuel	 	 	120,629	 	 	 	150,954	 	 	 	1,790	 	 	 	 	 	 	 	 	 	 	 	159,594	 	 	 	(50,820	)(a)	 	 	382,147	 	
Operations and maintenance	 	 	(6,243	)	 	 	540,277	 	 	 	49,435	 	 	 	 	 	 	 	 	 	 	 	17,435	 	 	 	(4,347	) (a)	 	 	596,557	 	
Real estate operations segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	288,646	 	 	 	 	 	 	 	 	 	 	 	1,254	(b)	 	 	289,900	 	
Depreciation and amortization	 	 	9,623	 	 	 	336,648	 	 	 	46,787	 	 	 	6,202	 	 	 	 	 	 	 	1,845	 	 	 	 	 	 	 	401,105	 	
Taxes other than income taxes	 	 	 	 	 	 	114,265	 	 	 	7,779	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	172	(b)	 	 	122,216	 	
Other expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	34,108	 	 	 	 	 	 	 	34,108	 	
 	
Total	 	 	136,274	 	 	 	1,754,444	 	 	 	107,415	 	 	 	294,848	 	 	 	—	 	 	 	212,982	 	 	 	(112,497	)	 	 	2,393,466	 	

OPERATING INCOME	 	 	9,470	 	 	 	442,677	 	 	 	(14,107	)	 	 	64,944	 	 	 	—	 	 	 	3,422	 	 	 	(147	)	 	 	506,259	 	

OTHER	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	 	 	 	 	4,885	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,885	 	
Other income	 	 	248,530	 	 	 	30,593	 	 	 	1,489	 	 	 	5,123	 	 	 	34,538	 	 	 	2,783	 	 	 	(269,067	)(c)	 	 	53,989	 	
Other expenses	 	 	(5,740	)	 	 	(13,816	)	 	 	(1,056	)	 	 	 	 	 	 	(959	)	 	 	(111	)	 	 	172	(b)	 	 	(21,510	)	
 	
Total	 	 	242,790	 	 	 	21,662	 	 	 	433	 	 	 	5,123	 	 	 	33,579	 	 	 	2,672	 	 	 	(268,895	)	 	 	37,364	 	

INTEREST EXPENSE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	25,042	 	 	 	151,837	 	 	 	38,158	 	 	 	5,942	 	 	 	324	 	 	 	1,612	 	 	 	(27,056	)(c)	 	 	195,859	 	
Capitalized interest	 	 	1,193	 	 	 	(7,155	)	 	 	(5,225	)	 	 	(3,805	)	 	 	 	 	 	 	(65	)	 	 	(1,254	)(b)	 	 	(16,311	)	
 	
Total	 	 	26,235	 	 	 	144,682	 	 	 	32,933	 	 	 	2,137	 	 	 	324	 	 	 	1,547	 	 	 	(28,310	)	 	 	179,548	 	

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	 	 	226,025	 	 	 	319,657	 	 	 	(46,607	)	 	 	67,930	 	 	 	33,255	 	 	 	4,547	 	 	 	(240,732	)	 	 	364,075	 	
INCOME TAXES	 	 	(19,929	)	 	 	120,030	 	 	 	—	 	 	 	27,067	 	 	 	—	 	 	 	1,689	 	 	 	—	 	 	 	128,857	 	

INCOME FROM CONTINUING OPERATIONS	 	 	245,954	 	 	 	199,627	 	 	 	(46,607	)	 	 	40,863	 	 	 	33,255	 	 	 	2,858	 	 	 	(240,732	)	 	 	235,218	 	
Income from discontinued operations-net of income taxes of $5,480	 	 	(2,759	)	 	 	 	 	 	 	 	 	 	 	3,865	 	 	 	6,871	 	 	 	 	 	 	 	 	 	 	 	7,977	 	
 	
NET INCOME (LOSS)	 	$	243,195	 	 	$	199,627	 	 	$	(46,607	)	 	$	44,728	 	 	$	40,126	 	 	$	2,858	 	 	$	(240,732	)	 	$	243,195	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of intercompany sales of electricity.
(b) Reclassification of certain expenses.
(c) Elimination of intercompany interest and income.
A-1

 

PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEST	 	 	 	 	 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PARENT	 	 	 	 	 	 	WEST	 	 	 	 	 	 	 	 	 	 	APS ENERGY	 	 	ELIMINATIONS and	 	 	 	 	
December 31, 2004	 	COMPANY	 	 	APS	 	 	ENERGY	 	 	SUNCOR	 	 	EL DORADO	 	 	SERVICES	 	 	ADJUSTMENTS	 	 	TOTAL	 	
 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	90,721	 	 	$	230,750	 	 	$	25	 	 	$	23,045	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	344,541	 	
Customer and other receivables	 	 	184,214	 	 	 	277,618	 	 	 	44,769	 	 	 	11,196	 	 	 	47	 	 	 	23,057	 	 	 	(169,031	) (a)	 	 	371,870	 	
Allowance for doubtful accounts	 	 	(1,200	)	 	 	(3,444	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(252	)	 	 	 	 	 	 	(4,896	)	
Accrued utility revenues	 	 	 	 	 	 	76,154	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	17,073	 	 	 	 	 	 	 	93,227	 	
Materials and supplies (at average cost)	 	 	 	 	 	 	83,893	 	 	 	17,440	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	101,333	 	
Fossil fuel (at average cost)	 	 	 	 	 	 	20,506	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	20,512	 	
Assets from risk management and trading activities	 	 	96,466	 	 	 	70,430	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	166,896	 	
Other current assets	 	 	1,869	 	 	 	9,262	 	 	 	3,838	 	 	 	31,413	 	 	 	139	 	 	 	(389	)	 	 	 	 	 	 	46,132	 	
 	
Total current assets	 	 	372,070	 	 	 	765,169	 	 	 	66,078	 	 	 	65,654	 	 	 	186	 	 	 	39,489	 	 	 	(169,031	)	 	 	1,139,615	 	

INVESTMENTS AND OTHER ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate investments - net	 	 	 	 	 	 	 	 	 	 	 	 	 	 	368,651	 	 	 	 	 	 	 	 	 	 	 	1,874	(b)	 	 	370,525	 	
Assets from risk management and trading activities - long term	 	 	204,218	 	 	 	20,123	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	224,341	 	
Decommissioning trust accounts	 	 	 	 	 	 	267,700	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	267,700	 	
Other assets	 	 	3,348,991	 	 	 	559,853	 	 	 	491	 	 	 	3,417	 	 	 	23,309	 	 	 	415	 	 	 	(3,829,266	)(a,b,c)	 	 	107,210	 	
 	
Total investments and other	 	 	3,553,209	 	 	 	847,676	 	 	 	491	 	 	 	372,068	 	 	 	23,309	 	 	 	415	 	 	 	(3,827,392	)	 	 	969,776	 	

PROPERTY, PLANT AND EQUIPMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Plant in service and held for future use	 	 	12,790	 	 	 	9,119,666	 	 	 	1,322,403	 	 	 	 	 	 	 	 	 	 	 	31,048	 	 	 	 	 	 	 	10,485,907	 	
Less accumulated depreciation and amortization	 	 	1,176	 	 	 	3,266,181	 	 	 	95,369	 	 	 	 	 	 	 	 	 	 	 	3,228	 	 	 	 	 	 	 	3,365,954	 	
 	
Total	 	 	11,614	 	 	 	5,853,485	 	 	 	1,227,034	 	 	 	—	 	 	 	—	 	 	 	27,820	 	 	 	—	 	 	 	7,119,953	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Construction work in progress	 	 	20	 	 	 	249,243	 	 	 	1,378	 	 	 	 	 	 	 	 	 	 	 	7,478	 	 	 	 	 	 	 	258,119	 	
Intangible assets, net of accumulated amortization	 	 	340	 	 	 	104,442	 	 	 	110	 	 	 	 	 	 	 	 	 	 	 	1,335	 	 	 	 	 	 	 	106,227	 	
Nuclear fuel, net of accumulated amortization	 	 	 	 	 	 	51,188	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	51,188	 	
 	
Net property, plant and equipment	 	 	11,974	 	 	 	6,258,358	 	 	 	1,228,522	 	 	 	—	 	 	 	—	 	 	 	36,633	 	 	 	—	 	 	 	7,535,487	 	

DEFERRED DEBITS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulatory assets	 	 	 	 	 	 	135,051	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	135,051	 	
Other deferred debits	 	 	 	 	 	 	92,298	 	 	 	8,292	 	 	 	13,512	 	 	 	 	 	 	 	 	 	 	 	(9,756	) (b)	 	 	104,346	 	
 	
Total deferred debits	 	 	—	 	 	 	227,349	 	 	 	8,292	 	 	 	13,512	 	 	 	—	 	 	 	—	 	 	 	(9,756	)	 	 	239,397	 	

TOTAL ASSETS	 	$	3,937,253	 	 	$	8,098,552	 	 	$	1,303,383	 	 	$	451,234	 	 	$	23,495	 	 	$	76,537	 	 	$	(4,006,179	)	 	$	9,884,275	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of intercompany receivables and payables.
(b) Miscellaneous reclassifications.
(c) Elimination of parent company investments in subsidiaries.
A-2

 

PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	WEST	 	 	 	 	 	 	PINNACLE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	PARENT	 	 	 	 	 	 	WEST	 	 	 	 	 	 	 	 	 	 	APS ENERGY	 	 	ELIMINATIONS and	 	 	 	 	
December 31, 2004	 	COMPANY	 	 	APS	 	 	ENERGY	 	 	SUNCOR	 	 	EL DORADO	 	 	SERVICES	 	 	ADJUSTMENTS	 	 	TOTAL	 	
 	
LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable	 	$	95,698	 	 	$	215,076	 	 	$	19,381	 	 	$	30,340	 	 	$	27	 	 	$	13,002	 	 	$	—	 	 	$	373,524	 	
Accrued taxes	 	 	16,212	 	 	 	292,521	 	 	 	(89,900	)	 	 	34,102	 	 	 	(5,974	)	 	 	(1,350	)	 	 	 	 	 	 	245,611	 	
Accrued interest	 	 	5,283	 	 	 	33,332	 	 	 	5,325	 	 	 	180	 	 	 	 	 	 	 	 	 	 	 	(5,325	) (a)	 	 	38,795	 	
Short-term borrowings	 	 	 	 	 	 	 	 	 	 	 	 	 	 	71,031	 	 	 	19,457	 	 	 	2,771	 	 	 	(22,228	) (a)	 	 	71,031	 	
Current maturities of long-term debt	 	 	165,133	 	 	 	451,247	 	 	 	 	 	 	 	785	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	617,165	 	
Customer deposits	 	 	 	 	 	 	51,804	 	 	 	 	 	 	 	3,754	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	55,558	 	
Deferred income taxes	 	 	 	 	 	 	9,057	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9,057	 	
Liabilities from risk management and trading activities	 	 	79,114	 	 	 	34,292	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	113,406	 	
Other current liabilities	 	 	67,441	 	 	 	91,441	 	 	 	7,398	 	 	 	36,123	 	 	 	1,169	 	 	 	15,496	 	 	 	(117,320	)(a,b)	 	 	101,748	 	
 	
Total current liabilities	 	 	428,881	 	 	 	1,178,770	 	 	 	(57,796	)	 	 	176,315	 	 	 	14,679	 	 	 	29,919	 	 	 	(144,873	)	 	 	1,625,895	 	

LONG-TERM DEBT LESS CURRENT MATURITIES	 	 	302,702	 	 	 	2,267,094	 	 	 	500,000	 	 	 	15,189	 	 	 	 	 	 	 	 	 	 	 	(500,000	) (a)	 	 	2,584,985	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
DEFERRED CREDITS AND OTHER	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities from risk management and trading activities - long-term	 	 	143,138	 	 	 	13,124	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	156,262	 	
Deferred income taxes	 	 	35,436	 	 	 	1,108,571	 	 	 	91,315	 	 	 	 	 	 	 	 	 	 	 	2,250	 	 	 	(10,019	) (b)	 	 	1,227,553	 	
Regulatory liabilities	 	 	 	 	 	 	506,646	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	506,646	 	
Unamortized gain-sale of utility plant	 	 	 	 	 	 	50,333	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	50,333	 	
Pension liability	 	 	23,228	 	 	 	203,668	 	 	 	590	 	 	 	6,696	 	 	 	 	 	 	 	263	 	 	 	 	 	 	 	234,445	 	
Liability for asset retirements	 	 	 	 	 	 	251,612	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	251,612	 	
Other	 	 	912	 	 	 	286,332	 	 	 	(302	)	 	 	33,773	 	 	 	 	 	 	 	(209	)	 	 	(24,158	) (b)	 	 	296,348	 	
 	
Total deferred credits and other	 	 	202,714	 	 	 	2,420,286	 	 	 	91,603	 	 	 	40,469	 	 	 	—	 	 	 	2,304	 	 	 	(34,177	)	 	 	2,723,199	 	

COMMON STOCK EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	
Common stock	 	 	2,242,148	 	 	 	1,424,966	 	 	 	821,294	 	 	 	150,054	 	 	 	14,046	 	 	 	29,467	 	 	 	(2,912,928	)(c)	 	 	1,769,047	 	
 	
Treasury Stock	 	 	(428	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(428	)	
 	
Accumulated other comprehensive income (loss):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Minimum pension liability adjustment	 	 	(10,701	)	 	 	(71,087	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(81,788	)	
Derivative instruments	 	 	40,916	 	 	 	18,327	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	59,243	 	
 	
Total accumulated other comprehensive income (loss)	 	 	30,215	 	 	 	(52,760	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(22,545	)	
 	
Retained earnings	 	 	731,021	 	 	 	860,196	 	 	 	(51,718	)	 	 	69,207	 	 	 	(5,230	)	 	 	14,847	 	 	 	(414,201	)(c)	 	 	1,204,122	 	

Total common stock equity	 	 	3,002,956	 	 	 	2,232,402	 	 	 	769,576	 	 	 	219,261	 	 	 	8,816	 	 	 	44,314	 	 	 	(3,327,129	)	 	 	2,950,196	 	

TOTAL LIABILITIES AND EQUITY	 	$	3,937,253	 	 	$	8,098,552	 	 	$	1,303,383	 	 	$	451,234	 	 	$	23,495	 	 	$	76,537	 	 	$	(4,006,179	)	 	$	9,884,275	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of intercompany receivables and payables.
(b) Miscellaneous reclassifications.
(c) Elimination of parent company investments in subsidiaries.
A-3

 

PINNACLE WEST ENERGY CORPORATION
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
Year ended December 31, 2004	 	PWEC	 	 	GEN WEST	 	 	ADJUSTMENTS	 	 	CONSOLIDATED	 	
 	
REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Electric revenue-native load	 	$	45,469	 	 	$	—	 	 	$	—	 	 	$	45,469	 	
Electric revenue-marketing & trading	 	 	29,137	 	 	 	18,702	 	 	 	 	 	 	 	47,839	 	
 	
Total	 	 	74,606	 	 	 	18,702	 	 	 	—	 	 	 	93,308	 	

COST OF REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fuel for electric generation-native load	 	 	1,597	 	 	 	 	 	 	 	 	 	 	 	1,597	 	
Fuel for electric generation-marketing & trading	 	 	1,790	 	 	 	 	 	 	 	 	 	 	 	1,790	 	
Purchased power	 	 	27	 	 	 	 	 	 	 	 	 	 	 	27	 	
 	
Total	 	 	3,414	 	 	 	—	 	 	 	—	 	 	 	3,414	 	

GROSS MARGIN	 	 	71,192	 	 	 	18,702	 	 	 	—	 	 	 	89,894	 	

OTHER OPERATING EXPENSES (REVENUE)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operations and maintenance	 	 	45,199	 	 	 	4,236	 	 	 	 	 	 	 	49,435	 	
Depreciation and amortization	 	 	39,833	 	 	 	6,954	 	 	 	 	 	 	 	46,787	 	
Other taxes	 	 	6,284	 	 	 	1,495	 	 	 	 	 	 	 	7,779	 	
 	
Total	 	 	91,316	 	 	 	12,685	 	 	 	—	 	 	 	104,001	 	

OPERATING MARGIN	 	 	(20,124	)	 	 	6,017	 	 	 	—	 	 	 	(14,107	)	

INTEREST AND OTHER EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	38,158	 	 	 	5,320	 	 	 	(5,320	) (a)	 	 	38,158	 	
Capitalized interest	 	 	(374	)	 	 	(4,851	)	 	 	 	 	 	 	(5,225	)	
Other interest & dividend income	 	 	(5,971	)	 	 	(701	)	 	 	5,320	(a)	 	 	(1,352	)	
Other expenses	 	 	887	 	 	 	169	 	 	 	 	 	 	 	1,056	 	
Investment (gain)/loss	 	 	(137	)	 	 	 	 	 	 	 	 	 	 	(137	)	
 	
Total	 	 	32,563	 	 	 	(63	)	 	 	—	 	 	 	32,500	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME BEFORE INCOME TAXES	 	 	(52,687	)	 	 	6,080	 	 	 	—	 	 	 	(46,607	)	

INCOME TAXES	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	

NET INCOME	 	$	(52,687	)	 	$	6,080	 	 	$	—	 	 	$	(46,607	)	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of intercompany interest.
A-4

 

PINNACLE WEST ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
December 31, 2004	 	PWEC	 	 	GEN WEST	 	 	ADJUSTMENTS	 	 	CONSOLIDATED	 	
 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	(95	)	 	$	120	 	 	$	—	 	 	$	25	 	
Accounts receivable	 	 	1,479	 	 	 	2,649	 	 	 	 	 	 	 	4,128	 	
Intercompany receivable	 	 	3,945	 	 	 	2,430	 	 	 	565	(a)	 	 	6,940	 	
Other special deposits	 	 	33,701	 	 	 	 	 	 	 	 	 	 	 	33,701	 	
Materials and supplies (at average cost)	 	 	16,708	 	 	 	732	 	 	 	 	 	 	 	17,440	 	
Fossil fuel (at average cost)	 	 	6	 	 	 	 	 	 	 	 	 	 	 	6	 	
Other	 	 	3,646	 	 	 	192	 	 	 	 	 	 	 	3,838	 	
 	
Total current assets	 	 	59,390	 	 	 	6,123	 	 	 	565	 	 	 	66,078	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Plant in service	 	 	1,021,115	 	 	 	301,288	 	 	 	 	 	 	 	1,322,403	 	
Intangible asset, net of accumulated amortization	 	 	110	 	 	 	 	 	 	 	 	 	 	 	110	 	
Less accumulated depreciation and amortization	 	 	(88,415	)	 	 	(6,954	)	 	 	 	 	 	 	(95,369	)	
 	
Total	 	 	932,810	 	 	 	294,334	 	 	 	—	 	 	 	1,227,144	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Construction work in progress	 	 	1,334	 	 	 	44	 	 	 	—	 	 	 	1,378	 	
 	
Utility plant-net	 	 	934,144	 	 	 	294,378	 	 	 	—	 	 	 	1,228,522	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investments and other assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—	 	
Investment in sub-Gen West	 	 	292,925	 	 	 	 	 	 	 	(292,925	)(b)	 	 	—	 	
Other assets	 	 	491	 	 	 	 	 	 	 	 	 	 	 	491	 	
Deferred debits	 	 	2,046	 	 	 	6,246	 	 	 	 	 	 	 	8,292	 	
 	
Total non-current assets	 	 	295,462	 	 	 	6,246	 	 	 	(292,925	)	 	 	8,783	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL ASSETS	 	$	1,288,996	 	 	$	306,747	 	 	$	(292,360	)	 	$	1,303,383	 	

LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable	 	$	12,997	 	 	$	6,384	 	 	$	—	 	 	$	19,381	 	
Intercompany payable	 	 	6,405	 	 	 	867	 	 	 	(297	)(a)	 	 	6,975	 	
Short term debt	 	 	—	 	 	 	(863	)	 	 	863	(a)	 	 	—	 	
Accrued taxes	 	 	(91,166	)	 	 	1,266	 	 	 	 	 	 	 	(89,900	)	
Accrued interest	 	 	5,325	 	 	 	 	 	 	 	 	 	 	 	5,325	 	
Other	 	 	423	 	 	 	 	 	 	 	 	 	 	 	423	 	
 	
Total current liabilities	 	 	(66,016	)	 	 	7,654	 	 	 	566	 	 	 	(57,796	)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred credits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Deferred income tax credit	 	 	91,315	 	 	 	 	 	 	 	 	 	 	 	91,315	 	
Other deferred credits	 	 	(302	)	 	 	 	 	 	 	 	 	 	 	(302	)	
 	
Total deferred credits	 	 	91,013	 	 	 	—	 	 	 	—	 	 	 	91,013	 	
Pension liability	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accumulated provision for SEBRP	 	 	490	 	 	 	 	 	 	 	 	 	 	 	490	 	
Deferred credits pension	 	 	100	 	 	 	 	 	 	 	 	 	 	 	100	 	
 	
Total pension liability	 	 	590	 	 	 	—	 	 	 	—	 	 	 	590	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capitalization	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Additional paid in capital	 	 	821,295	 	 	 	292,925	 	 	 	(292,926	)(b)	 	 	821,294	 	
Retained earnings	 	 	(57,886	)	 	 	6,168	 	 	 	 	 	 	 	(51,718	)	
Long term debt to associated companies	 	 	500,000	 	 	 	 	 	 	 	 	 	 	 	500,000	 	
 	
Total capitalization	 	 	1,263,409	 	 	 	299,093	 	 	 	(292,926	)	 	 	1,269,576	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL LIABILITIES AND EQUITY	 	$	1,288,996	 	 	$	306,747	 	 	$	(292,360	)	 	$	1,303,383	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a)  	Elimination of intercompany receivables and payables.	
 	
(b)  	Elimination of investment in subsidiary.	
A-5

 

 	
SUNCOR DEVELOPMENT COMPANY	
CONSOLIDATING INCOME STATEMENT (dollars in thousands)	
(UNAUDITED)	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	HAYDEN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	FERRY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	CLUB	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	HIDDEN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	RANCHO	 	 	CORAL	 	 	 	 	
Year ended December 31, 2004	 	SUNCOR	 	 	CONDOS	 	 	SASI	 	 	SMLP	 	 	PVGC	 	 	WEST	 	 	SANCTUARY	 	 	SUNRIDGE	 	 	NE HB	 	 	PV - DEV	 	 	KABUTO JV	 	 	COMMERCIAL	 	 	HILLS	 	 	HFS	 	 	STONERIDGE	 	 	BOISE	 	 	VIEJO	 	 	CANYON	 	 	TOTAL	 	
 	
REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Home sales	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	107,236	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	44,924	 	 	$	—	 	 	$	29,567	 	 	$	34,139	 	 	$	215,866	 	
Land sales	 	 	106	 	 	 	 	 	 	 	 	 	 	 	445	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	67,483	 	 	 	18,428	 	 	 	20,665	 	 	 	2,497	 	 	 	 	 	 	 	2,684	 	 	 	 	 	 	 	85	 	 	 	1,448	 	 	 	113,841	 	
Sale of assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	449	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	125	 	 	 	574	 	
Commercial properties	 	 	 	 	 	 	 	 	 	 	721	 	 	 	 	 	 	 	2,428	 	 	 	2,233	 	 	 	2,550	 	 	 	3,748	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9,884	 	 	 	 	 	 	 	2,074	 	 	 	1,373	 	 	 	 	 	 	 	 	 	 	 	3,287	 	 	 	28,298	 	
Utility sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	251	 	 	 	 	 	 	 	251	 	
Management fees	 	 	580	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	382	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	962	 	
 	
Total	 	 	686	 	 	 	—	 	 	 	721	 	 	 	445	 	 	 	2,428	 	 	 	2,233	 	 	 	2,550	 	 	 	3,748	 	 	 	107,685	 	 	 	67,483	 	 	 	18,428	 	 	 	30,931	 	 	 	2,497	 	 	 	2,074	 	 	 	48,981	 	 	 	—	 	 	 	29,903	 	 	 	38,999	 	 	 	359,792	 	

OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cost of homes sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	82,511	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	35,790	 	 	 	 	 	 	 	24,570	 	 	 	26,742	 	 	 	169,613	 	
Cost of land sold	 	 	(2,419	)	 	 	 	 	 	 	 	 	 	 	266	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	28,041	 	 	 	7,215	 	 	 	9,534	 	 	 	2,092	 	 	 	 	 	 	 	2,083	 	 	 	 	 	 	 	52	 	 	 	1,096	 	 	 	47,960	 	
Sale of assets	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	432	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	95	 	 	 	527	 	
Commercial properties	 	 	 	 	 	 	 	 	 	 	701	 	 	 	 	 	 	 	2,628	 	 	 	2,248	 	 	 	2,179	 	 	 	2,970	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5,826	 	 	 	 	 	 	 	1,465	 	 	 	1,652	 	 	 	 	 	 	 	 	 	 	 	2,184	 	 	 	21,853	 	
Utility expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	229	 	 	 	 	 	 	 	229	 	
Land project costs	 	 	96	 	 	 	102	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,161	 	 	 	1,838	 	 	 	923	 	 	 	1,378	 	 	 	 	 	 	 	 	 	 	 	1,277	 	 	 	30	 	 	 	265	 	 	 	534	 	 	 	7,605	 	
General and administrative	 	 	19,023	 	 	 	381	 	 	 	 	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	17	 	 	 	4,694	 	 	 	1,479	 	 	 	754	 	 	 	2,091	 	 	 	 	 	 	 	 	 	 	 	2,239	 	 	 	501	 	 	 	2,506	 	 	 	2,030	 	 	 	35,721	 	
Depreciation and amortization	 	 	1,422	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	186	 	 	 	431	 	 	 	298	 	 	 	7	 	 	 	41	 	 	 	 	 	 	 	2,872	 	 	 	 	 	 	 	 	 	 	 	319	 	 	 	6	 	 	 	36	 	 	 	584	 	 	 	6,202	 	
Minority interest	 	 	46	 	 	 	 	 	 	 	 	 	 	 	45	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,864	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,193	 	 	 	 	 	 	 	 	 	 	 	(10	)	 	 	5,138	 	
 	
Total	 	 	18,168	 	 	 	483	 	 	 	701	 	 	 	318	 	 	 	2,628	 	 	 	2,434	 	 	 	2,610	 	 	 	3,285	 	 	 	88,805	 	 	 	31,399	 	 	 	11,756	 	 	 	21,701	 	 	 	2,092	 	 	 	1,465	 	 	 	45,553	 	 	 	537	 	 	 	27,658	 	 	 	33,255	 	 	 	294,848	 	

 	
OPERATING INCOME	 	 	(17,482	)	 	 	(483	)	 	 	20	 	 	 	127	 	 	 	(200	)	 	 	(201	)	 	 	(60	)	 	 	463	 	 	 	18,880	 	 	 	36,084	 	 	 	6,672	 	 	 	9,230	 	 	 	405	 	 	 	609	 	 	 	3,428	 	 	 	(537	)	 	 	2,245	 	 	 	5,744	 	 	 	64,944	 	

OTHER	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity in joint ventures	 	 	502	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,484	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,986	 	
Interest income	 	 	422	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	10	 	 	 	186	 	 	 	 	 	 	 	 	 	 	 	20	 	 	 	 	 	 	 	13	 	 	 	12	 	 	 	666	 	
Other	 	 	225	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	324	 	 	 	729	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	29	 	 	 	12	 	 	 	33	 	 	 	119	 	 	 	1,471	 	
 	
Total	 	 	1,149	 	 	 	—	 	 	 	—	 	 	 	3	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	324	 	 	 	729	 	 	 	10	 	 	 	2,670	 	 	 	—	 	 	 	—	 	 	 	49	 	 	 	12	 	 	 	46	 	 	 	131	 	 	 	5,123	 	

INTEREST EXPENSE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	 	 	741	 	 	 	 	 	 	 	 	 	 	 	46	 	 	 	 	 	 	 	190	 	 	 	160	 	 	 	202	 	 	 	1,267	 	 	 	815	 	 	 	 	 	 	 	1,540	 	 	 	 	 	 	 	 	 	 	 	434	 	 	 	 	 	 	 	159	 	 	 	388	 	 	 	5,942	 	
Capitalized interest	 	 	(942	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(1,267	)	 	 	(815	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(247	)	 	 	 	 	 	 	(159	)	 	 	(375	)	 	 	(3,805	)	
 	
Total	 	 	(201	)	 	 	—	 	 	 	—	 	 	 	46	 	 	 	—	 	 	 	190	 	 	 	160	 	 	 	202	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1,540	 	 	 	—	 	 	 	—	 	 	 	187	 	 	 	—	 	 	 	—	 	 	 	13	 	 	 	2,137	 	

 	
INCOME BEFORE TAXES AND DISCONTINUED OPERATIONS	 	 	(16,132	)	 	 	(483	)	 	 	20	 	 	 	84	 	 	 	(200	)	 	 	(391	)	 	 	(220	)	 	 	261	 	 	 	19,204	 	 	 	36,813	 	 	 	6,682	 	 	 	10,360	 	 	 	405	 	 	 	609	 	 	 	3,290	 	 	 	(525	)	 	 	2,291	 	 	 	5,862	 	 	 	67,930	 	

INCOME TAXES	 	 	27,067	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	27,067	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL NET DISCONTINUED OPERATIONS	 	 	(413	)	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4,278	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	3,865	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/(LOSS)	 	$	(43,612	)	 	$	(483	)	 	$	20	 	 	$	84	 	 	$	(200	)	 	$	(391	)	 	$	(220	)	 	$	261	 	 	$	19,204	 	 	$	36,813	 	 	$	6,682	 	 	$	14,638	 	 	$	405	 	 	$	609	 	 	$	3,290	 	 	$	(525	)	 	$	2,291	 	 	$	5,862	 	 	$	44,728	 	

 

SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	HAYDEN	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	FERRY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	CLUB	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
December 31, 2004	 	SUNCOR	 	 	CONDOS	 	 	SASI	 	 	SMLP	 	 	PVGC	 	 	WEST	 	 	SANCTUARY	 	 	SUNRIDGE	 	 	NE HB	 	 	PV - DEV	 	 	KABUTO JV	 	 	COMMERCIAL	 	 	HIDDEN HILLS	 	 	HFS	 	 	STONERIDGE	 	 	BOISE	 	 	RANCHO VIEJO	 	 	CORAL CANYON	 	 	ADJUSTMENTS	 	 	TOTAL	 	
 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash and cash equivalents	 	$	22,745	 	 	$	86	 	 	$	172	 	 	$	537	 	 	$	37	 	 	$	10	 	 	$	(16	)	 	$	2	 	 	$	(208	)	 	$	(1,705	)	 	$	2,451	 	 	$	(2,283	)	 	$	(3	)	 	$	359	 	 	$	1,852	 	 	$	(76	)	 	$	472	 	 	$	(1,387	)	 	$	—	 	 	$	23,045	 	
Customer and other receivables	 	 	(49,925	)	 	 	 	 	 	 	62	 	 	 	 	 	 	 	27	 	 	 	(7	)	 	 	3	 	 	 	84	 	 	 	(104	)	 	 	4,227	 	 	 	1,047	 	 	 	145	 	 	 	200	 	 	 	73	 	 	 	2,873	 	 	 	 	 	 	 	56	 	 	 	1,701	 	 	 	50,734	(a)	 	 	11,196	 	
Other current assets	 	 	507	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	16,493	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,750	 	 	 	 	 	 	 	5,000	 	 	 	5,069	 	 	 	(406	)(b)	 	 	31,413	 	
 	
Total current assets	 	 	(26,673	)	 	 	86	 	 	 	234	 	 	 	537	 	 	 	64	 	 	 	3	 	 	 	(13	)	 	 	86	 	 	 	16,181	 	 	 	2,522	 	 	 	3,498	 	 	 	(2,138	)	 	 	197	 	 	 	432	 	 	 	9,475	 	 	 	(76	)	 	 	5,528	 	 	 	5,383	 	 	 	50,328	 	 	 	65,654	 	

INVESTMENTS AND OTHER ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate investments — net	 	 	83,614	 	 	 	10,981	 	 	 	45	 	 	 	 	 	 	 	10,249	 	 	 	7,656	 	 	 	10,048	 	 	 	9,057	 	 	 	354	 	 	 	93,605	 	 	 	(89	)	 	 	103,218	 	 	 	4,158	 	 	 	18	 	 	 	31,401	 	 	 	3,345	 	 	 	24,158	 	 	 	31,938	 	 	 	(55,105	)(c)	 	 	368,651	 	
Other assets	 	 	1,453	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1,964	 	 	 	 	 	 	 	 	 	 	 	3,417	 	
 	
Total investments and other	 	 	85,067	 	 	 	10,981	 	 	 	45	 	 	 	—	 	 	 	10,249	 	 	 	7,656	 	 	 	10,048	 	 	 	9,057	 	 	 	354	 	 	 	93,605	 	 	 	(89	)	 	 	103,218	 	 	 	4,158	 	 	 	18	 	 	 	31,401	 	 	 	3,345	 	 	 	26,122	 	 	 	31,938	 	 	 	(55,105	)	 	 	372,068	 	

DEFERRED DEBITS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Other deferred debits	 	 	10,311	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	232	 	 	 	120	 	 	 	126	 	 	 	233	 	 	 	9	 	 	 	49	 	 	 	—	 	 	 	1,905	 	 	 	—	 	 	 	5	 	 	 	262	 	 	 	—	 	 	 	62	 	 	 	198	 	 	 	—	 	 	 	13,512	 	

 	
TOTAL ASSETS	 	$	68,705	 	 	$	11,067	 	 	$	279	 	 	$	537	 	 	$	10,545	 	 	$	7,779	 	 	$	10,161	 	 	$	9,376	 	 	$	16,544	 	 	$	96,176	 	 	$	3,409	 	 	$	102,985	 	 	$	4,355	 	 	$	455	 	 	$	41,138	 	 	$	3,269	 	 	$	31,712	 	 	$	37,519	 	 	$	(4,777	)	 	$	451,234	 	

LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable	 	$	8,621	 	 	$	1,046	 	 	$	75	 	 	$	(9	)	 	$	7,255	 	 	$	6,502	 	 	$	2,414	 	 	$	1,772	 	 	$	(40,844	)	 	$	(14,906	)	 	$	474	 	 	$	3,209	 	 	$	(9,330	)	 	$	162	 	 	$	11,540	 	 	$	41	 	 	$	1,853	 	 	$	1,659	 	 	 	48,806	(a)	 	 	30,340	 	
Accrued taxes	 	 	34,102	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	34,102	 	
Accrued interest	 	 	34	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	146	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	180	 	
Short-term borrowings	 	 	35,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,084	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	33,947	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	71,031	 	
Current maturities of long-term debt	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	203	 	 	 	257	 	 	 	 	 	 	 	210	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	92	 	 	 	 	 	 	 	 	 	 	 	23	 	 	 	 	 	 	 	785	 	
Customer deposits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,374	 	 	 	190	 	 	 	 	 	 	 	266	 	 	 	 	 	 	 	 	 	 	 	603	 	 	 	 	 	 	 	321	 	 	 	 	 	 	 	 	 	 	 	3,754	 	
Other current liabilities	 	 	3,914	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	79	 	 	 	 	 	 	 	 	 	 	 	31,907	 	 	 	 	 	 	 	223	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	36,123	 	
 	
Total current liabilities	 	 	81,671	 	 	 	1,046	 	 	 	75	 	 	 	(9	)	 	 	7,458	 	 	 	6,759	 	 	 	4,577	 	 	 	1,982	 	 	 	(38,470	)	 	 	17,191	 	 	 	474	 	 	 	37,791	 	 	 	(9,330	)	 	 	162	 	 	 	12,235	 	 	 	41	 	 	 	2,174	 	 	 	1,682	 	 	 	48,806	 	 	 	176,315	 	

NON-CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Long-term debt less current maturities	 	 	323	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,719	 	 	 	3,936	 	 	 	(1	)	 	 	6,124	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,046	 	 	 	 	 	 	 	 	 	 	 	42	 	 	 	 	 	 	 	15,189	 	
Other Liabilities	 	 	21,610	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	357	 	 	 	9,186	 	 	 	31,153	 	
 	
Total non-current Liabilities	 	 	21,933	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2,719	 	 	 	3,936	 	 	 	(1	)	 	 	6,124	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	2,046	 	 	 	—	 	 	 	—	 	 	 	399	 	 	 	9,186	 	 	 	46,342	 	

DEFERRED CREDITS AND OTHER	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Pension liability	 	 	6,696	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	6,696	 	
Other	 	 	2,620	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2,620	 	
 	
Total deferred credits	 	 	9,316	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	9,316	 	

COMMON STOCK EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	150,054	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	150,054	 	
Retained earnings	 	 	(194,269	)	 	 	10,021	 	 	 	204	 	 	 	546	 	 	 	368	 	 	 	(2,916	)	 	 	5,585	 	 	 	1,270	 	 	 	55,014	 	 	 	78,985	 	 	 	2,935	 	 	 	65,194	 	 	 	13,685	 	 	 	293	 	 	 	26,857	 	 	 	3,228	 	 	 	29,538	 	 	 	35,438	 	 	 	(62,769	)(c)	 	 	69,207	 	
 	
Total common stock equity	 	 	(44,215	)	 	 	10,021	 	 	 	204	 	 	 	546	 	 	 	368	 	 	 	(2,916	)	 	 	5,585	 	 	 	1,270	 	 	 	55,014	 	 	 	78,985	 	 	 	2,935	 	 	 	65,194	 	 	 	13,685	 	 	 	293	 	 	 	26,857	 	 	 	3,228	 	 	 	29,538	 	 	 	35,438	 	 	 	(62,769	)	 	 	219,261	 	

 	
TOTAL LIABILITIES AND EQUITY	 	$	68,705	 	 	$	11,067	 	 	$	279	 	 	$	537	 	 	$	10,545	 	 	$	7,779	 	 	$	10,161	 	 	$	9,376	 	 	$	16,544	 	 	$	96,176	 	 	$	3,409	 	 	$	102,985	 	 	$	4,355	 	 	$	455	 	 	$	41,138	 	 	$	3,269	 	 	$	31,712	 	 	$	37,519	 	 	$	(4,777	)	 	$	451,234	 	

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS	
 		
(a)	 	Elimination of intercompany receivables and payables.	
 		
(b)	 	Miscellaneous reclassifications.	
 		
(c)	 	Elimination of investment in subsidiaries.	

 

EL DORADO INVESTMENT COMPANY
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
Year ended December 31, 2004	 	EL DORADO	 	 	NAC	 	 	ADJUSTMENTS	 	 	TOTAL	 	

REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NAC revenue	 	$	—	 	 	$	31,254	 	 	$	(31,254	)(c)	 	$	—	 	
Equity in earnings of investees	 	 	273	 	 	 	 	 	 	 	(753	)(a)	 	 	(480	)	
Partnership income	 	 	266	 	 	 	 	 	 	 	 	 	 	 	266	 	
Interest income	 	 	2,088	 	 	 	 	 	 	 	(2,088	)(b)	 	 	—	 	
Gain (loss) on investment	 	 	38,624	 	 	 	 	 	 	 	(4,030	)(c)	 	 	34,594	 	
CMA revenue	 	 	111	 	 	 	 	 	 	 	 	 	 	 	111	 	
Miscellaneous income	 	 	47	 	 	 	 	 	 	 	 	 	 	 	47	 	
 	
Total	 	 	41,409	 	 	 	31,254	 	 	 	(38,125	)	 	 	34,538	 	

OTHER EXPENSES AND DEDUCTIONS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NAC operating expenses	 	 	 	 	 	 	21,463	 	 	 	(21,463	)(c)	 	 	—	 	
Depreciation and amortization	 	 	 	 	 	 	1,097	 	 	 	(1,097	)(c)	 	 	—	 	
Interest expense and other	 	 	324	 	 	 	2,221	 	 	 	(2,221	)(c)	 	 	324	 	
General and administrative — net	 	 	959	 	 	 	5,133	 	 	 	(5,133	)(c)	 	 	959	 	
 	
Total	 	 	1,283	 	 	 	29,914	 	 	 	(29,914	)	 	 	1,283	 	

INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS	 	 	40,126	 	 	 	1,340	 	 	 	(8,211	)(c)	 	 	33,255	 	

INCOME TAXES	 	 	—	 	 	 	148	 	 	 	(148	)(c)	 	 	—	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
TOTAL DISCONTINUED OPERATIONS	 	 	—	 	 	 	—	 	 	 	6,871	(c)	 	 	6,871	 	

NET INCOME	 	$	40,126	 	 	$	1,192	 	 	$	(1,192	)	 	$	40,126	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a)  	Elimination of equity in earnings of subsidiary.	
 	
(b)  	Elimination of intercompany interest income and expense.	
 	
(c)  	NAC was sold in the fourth quarter of 2004 and was reclassified as discontinued operations.	
A-8

 

EL DORADO INVESTMENT COMPANY
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

December 31, 2004	 	EL DORADO	 	
 	
ASSETS	 	 	 	 	
 	 	 	 	 	
CURRENT ASSETS	 	 	 	 	
Accounts receivable	 	$	47	 	
Other assets	 	 	139	 	
 	
Total current assets	 	 	186	 	

INVESTMENTS AND OTHER ASSETS	 	 	 	 	
 	 	 	 	 	
Investments	 	 	23,309	 	
 	
Total investments and other	 	 	23,309	 	

 	
TOTAL ASSETS	 	$	23,495	 	

LIABILITIES AND EQUITY	 	 	 	 	
 	 	 	 	 	
CURRENT LIABILITIES	 	 	 	 	
Accounts payable and accrued liabilities	 	$	27	 	
Accounts payable — PWCC	 	 	1,169	 	
Intercompany loan payable -PWCC	 	 	19,457	 	
Taxes payable	 	 	(5,974	)	
 	
Total current liabilities	 	 	14,679	 	

EQUITY	 	 	 	 	
Common stock	 	 	10	 	
Additional paid in capital	 	 	14,036	 	
Retained earnings	 	 	(5,230	)	
 	
Total equity	 	 	8,816	 	

TOTAL LIABILITIES AND EQUITY	 	$	23,495	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
Note: NAC was sold in the fourth quarter of 2004 and was reclassified as discontinued operations.
A-9

 

APS ENERGY SERVICES
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
Year ended December 31, 2004	 	APSES	 	 	NORTHWIND	 	 	ADJUSTMENTS	 	 	Total	 	
 	
OPERATING REVENUES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Electric sales	 	$	173,588	 	 	$	—	 	 	$	—	 	 	$	173,588	 	
Products and services	 	 	36,618	 	 	 	 	 	 	 	 	 	 	 	36,618	 	
Northwind	 	 	 	 	 	 	5,806	 	 	 	 	 	 	 	5,806	 	
Other	 	 	392	 	 	 	 	 	 	 	 	 	 	 	392	 	
 	
Total	 	 	210,598	 	 	 	5,806	 	 	 	—	 	 	 	216,404	 	

OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Electric sales	 	 	159,594	 	 	 	 	 	 	 	 	 	 	 	159,594	 	
Products and services	 	 	31,080	 	 	 	 	 	 	 	 	 	 	 	31,080	 	
Northwind	 	 	 	 	 	 	2,995	 	 	 	 	 	 	 	2,995	 	
Other	 	 	33	 	 	 	 	 	 	 	 	 	 	 	33	 	
 	
Total	 	 	190,707	 	 	 	2,995	 	 	 	—	 	 	 	193,702	 	

GROSS MARGIN	 	 	19,891	 	 	 	2,811	 	 	 	—	 	 	 	22,702	 	

OTHER OPERATING EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Labor	 	 	7,484	 	 	 	1,023	 	 	 	 	 	 	 	8,507	 	
Other O&M	 	 	7,684	 	 	 	1,244	 	 	 	 	 	 	 	8,928	 	
Depreciation and amortization	 	 	930	 	 	 	915	 	 	 	 	 	 	 	1,845	 	
 	
Total	 	 	16,098	 	 	 	3,182	 	 	 	—	 	 	 	19,280	 	

OPERATING INCOME	 	 	3,793	 	 	 	(371	)	 	 	—	 	 	 	3,422	 	

INTEREST AND OTHER EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest on long-term debt	 	 	—	 	 	 	12	 	 	 	 	 	 	 	12	 	
Interest on short-term borrowings	 	 	1,599	 	 	 	1	 	 	 	 	 	 	 	1,600	 	
Capitalized interest	 	 	(65	)	 	 	 	 	 	 	 	 	 	 	(65	)	
Other income	 	 	(2,656	)	 	 	 	 	 	 	(1	)	 	 	(2,657	)	
Other expense	 	 	111	 	 	 	 	 	 	 	 	 	 	 	111	 	
Investment (gain)/loss	 	 	257	 	 	 	 	 	 	 	(383	) (a)	 	 	(126	)	
 	
Total	 	 	(754	)	 	 	13	 	 	 	(384	)	 	 	(1,125	)	

INCOME BEFORE INCOME TAXES	 	 	4,547	 	 	 	(384	)	 	 	384	 	 	 	4,547	 	
INCOME TAXES	 	 	1,689	 	 	 	 	 	 	 	 	 	 	 	1,689	 	

NET INCOME	 	$	2,858	 	 	$	(384	)	 	$	384	 	 	$	2,858	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of equity in earnings of subsidiary.
A-10

 

APS ENERGY SERVICES
CONSOLIDATING BALANCE SHEET (dollars in thousands)
(UNAUDITED)

 	 	 	 	 	 	 	 	 	 	ELIMINATIONS and	 	 	 	 	
December 31, 2004	 	APSES	 	 	NORTHWIND	 	 	ADJUSTMENTS	 	 	Total	 	
 	
ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cash	 	$	(551	)	 	$	551	 	 	$	—	 	 	$	—	 	
Customer & other receivables	 	 	24,873	 	 	 	1,082	 	 	 	(2,898)	(a)	 	 	23,057	 	
Allowance for doubtful accounts	 	 	(252	)	 	 	—	 	 	 	 	 	 	 	(252	)	
Accrued revenue	 	 	17,073	 	 	 	—	 	 	 	 	 	 	 	17,073	 	
Other current assets	 	 	(389	)	 	 	—	 	 	 	 	 	 	 	(389	)	
 	
Total current assets	 	 	40,754	 	 	 	1,633	 	 	 	(2,898	)	 	 	39,489	 	
 	
INVESTMENTS	 	 	27,884	 	 	 	—	 	 	 	(27,469)	(b)	 	 	415	 	
 	
Property, plant & equipment	 	 	915	 	 	 	30,133	 	 	 	 	 	 	 	31,048	 	
Less accumulated depreciation and amortization	 	 	(838	)	 	 	(2,390	)	 	 	 	 	 	 	(3,228	)	
 	
Total	 	 	77	 	 	 	27,743	 	 	 	—	 	 	 	27,820	 	
Construction work in progress	 	 	5,143	 	 	 	2,335	 	 	 	 	 	 	 	7,478	 	
Intangible assets, net of accumulated amortization	 	 	1,335	 	 	 	—	 	 	 	 	 	 	 	1,335	 	
 	
Total property — net	 	 	6,555	 	 	 	30,078	 	 	 	—	 	 	 	36,633	 	
 	
TOTAL ASSETS	 	$	75,193	 	 	$	31,711	 	 	$	(30,367	)	 	$	76,537	 	
 	
LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
CURRENT LIABILITIES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Accounts payable	 	$	11,685	 	 	$	1,317	 	 	$	—	 	 	$	13,002	 	
Accrued taxes	 	 	(1,377	)	 	 	27	 	 	 	 	 	 	 	(1,350	)	
Short-term borrowings	 	 	2,771	 	 	 	—	 	 	 	 	 	 	 	2,771	 	
Other current liabilities	 	 	15,496	 	 	 	2,898	 	 	 	(2,898)	(a)	 	 	15,496	 	
 	
Total current liabilities	 	 	28,575	 	 	 	4,242	 	 	 	(2,898	)	 	 	29,919	 	
 	
Deferred income taxes	 	 	2,250	 	 	 	 	 	 	 	 	 	 	 	2,250	 	
Other deferred credits	 	 	(209	)	 	 	 	 	 	 	 	 	 	 	(209	)	
Pension liability	 	 	263	 	 	 	 	 	 	 	 	 	 	 	263	 	
 	
Total non-current liabilities	 	 	2,304	 	 	 	—	 	 	 	—	 	 	 	2,304	 	
EQUITY	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common stock	 	 	1	 	 	 	—	 	 	 	 	 	 	 	1	 	
Equity	 	 	29,466	 	 	 	27,809	 	 	 	(27,809)	(b)	 	 	29,466	 	
Retained earnings	 	 	14,847	 	 	 	(340	)	 	 	340	(b)	 	 	14,847	 	
 	
Total equity	 	 	44,314	 	 	 	27,469	 	 	 	(27,469	)	 	 	44,314	 	
 	
TOTAL LIABILITIES & EQUITY	 	$	75,193	 	 	$	31,711	 	 	$	(30,367	)	 	$	76,537	 	
 	
EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a) Elimination of intercompany receivables and payables.

(b) Elimination of investment in subsidiary.
A-11

 

EXHIBIT B

B-1

 

SUNCOR ORGANIZATIONAL CHART

B-2

 

EXHIBIT C

C-1