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, 2005
 	 	 	 	 	
 	 	Exact Name of Registrant as Specified	 	 	
 	 	in Charter; State of Incorporation;	 	IRS Employer	
Commission File Number	 	Address and Telephone Number	 	Identification Number	
 	 	 	 	 	
1-8962	 	Pinnacle West Capital Corporation
(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. Neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

 

 

TABLE OF CONTENTS
 	 	 	
 	 	Page	
Item 2.02 Results of Operations and Financial Condition	 	2	
Item 7.01 Regulation FD Disclosure	 	3	
Item 9.01 Financial Statements and Exhibits	 	4	
Signatures	 	5	

 
Item 2.02. Results of Operations and Financial Condition
     Certain of the Information referenced in Item 7.01 below relates to Pinnacle West Capital Corporation’s (“Pinnacle West” or the “Company”) results of operations for its fiscal quarter ended June 30, 2005. This Information is attached hereto as Exhibits 99.2, 99.3, and 99.7.
     On June 27, 2005, the Company issued a press release regarding its financial results for its fiscal quarter year ended June 30, 2005. A copy of the press release is attached hereto as Exhibit 99.9.
     The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3, 99.7, 99.9 and 99.10 of this report relating to the Company’s financial results for its fiscal quarter ended June 30, 2005 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
     Exhibit 99.9 to this report contains certain “non-GAAP financial measures,” as defined in Item 10(e) of Regulation S-K of the Exchange Act. We describe these non-GAAP financial measures as “on-going earnings” and “on-going earnings per share.” Exhibit 99.9 contains a table that reconciles each of these non-GAAP financial measures to net income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe on-going earnings provide investors with a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items that may occur on an irregular basis. Investors should note that these non-GAAP financial measures involve judgments by management, including whether an item is classified as an unusual item. We use on-going earnings, or similar concepts, to measure our performance internally in reports for management.
2

 

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION — NET INCOME (GAAP MEASURE)
TO ON-GOING EARNINGS (NON-GAAP MEASURE)
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.
3

 
Item 9.01. Financial Statements and Exhibits
      (c) Exhibits.
 	 	 	 	 	
Exhibit No.	 	Registrant(s)	 	Description	
99.1	 	Pinnacle West
Arizona Public Service Company (“APS”)	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
99.2	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the periods ended June 30, 2005 and 2004.	
99.3	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
99.4	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
99.5	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
99.6	 	Pinnacle West	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
99.7	 	Pinnacle West
APS	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended June 30, 2005 and 2004 and condensed consolidated statements of income for the three and six months ended June 30, 2005 and 2004.	
99.8	 	Pinnacle West
APS	 	Glossary of Terms.	
99.9	 	Pinnacle West
APS	 	Earnings News Release issued on July 27, 2005.	
99.10	 	Pinnacle West
APS	 	Reconciliation of Operating Income to Gross Margin (Non-GAAP Measure).	
4

 
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 27, 2005 	By:  	/s/ Barbara M. Gomez  	 	
 	 	Barbara M. Gomez 	 	
 	 	Vice President and Treasurer 	 	

 	ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
 	 	
Dated: July 27, 2005 	By:  	/s/ Barbara M. Gomez  	 	
 	 	Barbara M. Gomez 	 	
 	 	Vice President and Treasurer 	 	
 	
5

 

Exhibit Index
 	 	 	
Exhibit	 	 	
No.	 	Description	
99.1	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).	
 	 	 	
99.2	 	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the periods ended June 30, 2005 and 2004.	
 	 	 	
99.3	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.	
 	 	 	
99.4	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	
99.5	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
 	 	 	
99.6	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
 	 	 	
99.7	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended June 30, 2005 and 2004 and condensed consolidated statements of income for the three and six months ended June 30, 2005 and 2004.	
 	 	 	
99.8	 	Glossary of Terms.	
 	 	 	
99.9	 	Earnings News Release issued on July 27, 2005.	
 	 	 	
99.10	 	Reconciliation of Operating Income to Gross Margin (Non-GAAP Measure).	
6
 
EXHIBIT 99.1
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004
LIST OF CONTENTS
2005 SECOND QUARTER SUMMARY
2005 YEAR-TO-DATE
2004 BY QUARTER
2003 BY QUARTER
2002 BY QUARTER
Quarters may not sum to totals due to rounding.
Certain current and prior year amounts have been reclassified to conform to current period presentation.
The definitions of terms used in this statistical summary are contained in the "Glossary of Terms" on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2005Q2QuarStatsGloss.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 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                 3 MO. ENDED JUNE                    6 MO. ENDED JUNE
                                        ----------------------------------  ----------------------------------
Line                                      2005        2004     INCR (DECR)    2005        2004     INCR (DECR)
                                        --------    --------   -----------  --------    --------   -----------
    EARNINGS CONTRIBUTION
    BY SUBSIDIARY ($ MILLIONS)

 1  Arizona Public Service              $     64    $     55    $      9    $     91    $     89    $      2
 2  Pinnacle West Energy                      12         (14)         26          (8)        (36)         28
 3  APS Energy Services                        1           1           -          (2)          3          (5)
 4  SunCor                                    11           4           7          19           6          13
 5  El Dorado                                  -          34         (34)         (1)         34         (35)
 6  Parent Company                            (3)         (6)          3          16           9           7
                                        --------    --------    --------    --------    --------    --------

 7  Income From Continuing Operations         85          74          11         115         105          10

 8  Loss From Discontinued
    Operations - Net of Tax                  (58)         (1)        (57)        (64)         (1)        (63)
 9  Cumulative Effect of Change in
    Accounting - Net of Tax                    -           -           -           -           -           -
                                        --------    --------    --------    --------    --------    --------
10  Net Income                          $     27    $     73    $    (46)   $     51    $    104    $    (53)
                                        ========    ========    ========    ========    ========    ========

    EARNINGS PER SHARE
    BY SUBSIDIARY - DILUTED

11  Arizona Public Service              $   0.66    $   0.60    $   0.06    $   0.97    $   0.98    $  (0.01)
12  Pinnacle West Energy                    0.13       (0.15)       0.28       (0.09)      (0.40)       0.31
13  APS Energy Services                     0.01        0.01           -       (0.03)       0.03       (0.06)
14  SunCor                                  0.11        0.04        0.07        0.21        0.06        0.15
15  El Dorado                                  -        0.37       (0.37)      (0.01)       0.38       (0.39)
16  Parent Company                         (0.03)      (0.06)       0.03        0.17        0.10        0.07
                                        --------    --------    --------    --------    --------    --------

17  Income From Continuing Operations       0.88        0.81        0.07        1.22        1.15        0.07

18  Loss From Discontinued
    Operations - Net of Tax                (0.60)      (0.02)      (0.58)      (0.68)      (0.01)      (0.67)
19  Cumulative Effect of Change in
    Accounting - Net of Tax                    -           -           -           -           -           -
                                        --------    --------    --------    --------    --------    --------
20  Net Income                          $   0.28    $   0.79    $  (0.51)   $   0.54    $   1.14    $  (0.60)
                                        ========    ========    ========    ========    ========    ========

21  BOOK VALUE PER SHARE                $  32.89    $  31.68    $   1.21    $  32.89    $  31.68    $   1.21

    COMMON SHARES OUTSTANDING -
    DILUTED (THOUSANDS)
22  Average                               96,299      91,400       4,899      94,189      91,391       2,798
23  End of Period                         98,442      91,309       7,133      98,442      91,309       7,133	

See Glossary of Terms. Page 2 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                 3 MO. ENDED JUNE                     6 MO. ENDED JUNE
                                         ---------------------------------    ---------------------------------
Line                                       2005        2004    INCR (DECR)      2005       2004     INCR (DECR)
                                         -------     -------   -----------    -------     -------   -----------
   ELECTRIC OPERATING
   REVENUES (DOLLARS IN MILLIONS)

   REGULATED ELECTRICITY
   SEGMENT
   RETAIL
24 Residential                           $   268     $   245     $    23      $   458     $   434     $    24
25 Business                                  281         257          24          490         468          22
                                         -------     -------     -------      -------     -------     -------
26 Total retail                              549         502          47          948         902          46
   WHOLESALE REVENUE ON DELIVERED
   ELECTRICITY
27 Traditional contracts                       5           4           1            8           7           1
28 Off-system sales                           12           -          12           12           -          12
29 Transmission for others                     7           8          (1)          14          16          (2)
30 Other miscellaneous services                7           6           1           14          10           4
                                         -------     -------     -------      -------     -------     -------
31 Total regulated electricity               580         520          60          996         935          61
   MARKETING  AND TRADING
   SEGMENT
32 Electricity and other
   commodity sales                            71         110         (39)         160         199         (39)
                                         -------     -------     -------      -------     -------     -------
33 Total operating electric revenues     $   651     $   630     $    21      $ 1,156     $ 1,134     $    22
                                         =======     =======     =======      =======     =======     =======

   ELECTRIC SALES (GWH)

   REGULATED ELECTRICITY
   SEGMENT
   RETAIL SALES
34 Residential                             2,889       2,722         167        5,256       5,132         124
35 Business                                3,684       3,602          82        6,726       6,653          73
                                         -------     -------     -------      -------     -------     -------
36 Total retail                            6,573       6,324         249       11,982      11,785         197
   WHOLESALE ELECTRICITY DELIVERED
37 Traditional contracts                     200         195           5          355         333          22
38 Off-system sales                          598           -         598          598           -         598
39 Retail load hedge management              702         731         (29)       1,452         900         552
                                         -------     -------     -------      -------     -------     -------
40 Total regulated electricity             8,073       7,250         823       14,387      13,018       1,369
   MARKETING  AND TRADING
   SEGMENT
41 Wholesale sales of electricity          4,901       7,143      (2,242)      10,678      12,839      (2,161)
                                         -------     -------     -------      -------     -------     -------
42 Total electric sales                   12,974      14,393      (1,419)      25,065      25,857        (792)
                                         =======     =======     =======      =======     =======     =======	

See Glossary of Terms. Page 3 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                 3 MO. ENDED JUNE                     6 MO. ENDED JUNE
                                         ---------------------------------    ---------------------------------
Line                                     2005        2004      INCR (DECR)    2005        2004      INCR (DECR)
                                         ----        ----      -----------    ----        ----      -----------
   MARKETING AND TRADING
   SEGMENT PRETAX GROSS
   MARGIN ANALYSIS
   (DOLLARS IN MILLIONS)

   REALIZED AND MARK-TO-MARKET
   COMPONENTS
43 Electricity and other commodity
   sales, realized (a)                   $ 18        $ 22        $ (4)        $ 30        $ 34         $ (4)
44 Mark-to-market reversals on
   realized sales (b)                      (8)         (4)         (4)          (8)          1           (9)
45 Change in mark-to-market value of
   forward sales                            3           4          (1)          10           8            2
                                         ----        ----        ----         ----        ----         ----
46 Total gross margin                    $ 13        $ 22        $ (9)        $ 32        $ 43         $(11)
                                         ====        ====        ====         ====        ====         ====

   BY PINNACLE WEST ENTITY

47 Parent company marketing and
   trading division                      $  6        $ 11        $ (5)        $ 27        $ 23         $  4
48 APS                                      3           -           3           (1)         (5)           4
49 Pinnacle West Energy                     -           7          (7)           5          17          (12)
50 APS Energy Services                      4           4           -            1           8           (7)
                                         ----        ----        ----         ----        ----         ----
51 Total gross margin                    $ 13        $ 22        $ (9)        $ 32        $ 43         $(11)
                                         ====        ====        ====         ====        ====         ====	

FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION
As of June 30, 2005, Pinnacle West had accumulated net mark-to-market gains of $43 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2005, $9 million; 2006, $7 million; 2007, $17 million; and thereafter, $10 million.

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 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 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the second quarter of 2005. A $8 million realized gain is included in the $18 million on line 43 for the second quarter of 2005.
(b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms. Page 4 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                    3 MO. ENDED JUNE                        6 MO. ENDED JUNE
                                           -----------------------------------     -----------------------------------
Line                                         2005         2004     INCR (DECR)       2005         2004     INCR (DECR)
                                           -------      -------    -----------     -------      -------    -----------
   AVERAGE ELECTRIC CUSTOMERS

   RETAIL CUSTOMERS
52 Residential                             888,509      852,594       35,915       889,238      854,174       35,064
53 Business                                110,658      106,517        4,141       110,227      106,009        4,218
                                           -------      -------      -------       -------      -------      -------
54 Total                                   999,167      959,111       40,056       999,465      960,183       39,282
55 Wholesale customers                          76           82           (6)           79           82           (3)
                                           -------      -------      -------       -------      -------      -------
56 Total customers                         999,243      959,193       40,050       999,544      960,265       39,279
                                           =======      =======      =======       =======      =======      =======

57 Customer Growth (% over prior year)         4.2%         3.8%         0.4%          4.1%         3.6%         0.5%

   RETAIL SALES (GWH) -
   WEATHER NORMALIZED

58 Residential                               2,903        2,762          141         5,333        5,133          200
59 Business                                  3,693        3,616           77         6,751        6,614          137
                                           -------      -------      -------       -------      -------      -------
60 Total                                     6,596        6,378          218        12,084       11,747          337
                                           =======      =======      =======       =======      =======      =======

   RETAIL USAGE
   (KWH/AVERAGE CUSTOMER)

61 Residential                               3,252        3,193           59         5,911        6,008          (97)
62 Business                                 33,292       33,816         (524)       61,020       62,759       (1,739)

   RETAIL USAGE -
   WEATHER NORMALIZED
   (KWH/AVERAGE CUSTOMER)

63 Residential                               3,268        3,240           28         5,997        6,009          (12)
64 Business                                 33,374       33,944         (570)       61,250       62,393       (1,143)

   ELECTRICITY DEMAND (MW)

65 System peak demand                        6,458        5,632          826         6,458        5,632          826	

See Glossary of Terms. Page 5 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                 3 MO. ENDED JUNE                      6 MO. ENDED JUNE
                                          --------------------------------     --------------------------------
Line                                       2005        2004     INCR (DECR)     2005        2004     INCR (DECR)
                                          ------      ------    ----------     ------      ------    -----------
   ENERGY SOURCES (GWH)

   GENERATION PRODUCTION
66 Nuclear                                 1,619       1,860        (241)       3,866       4,008        (142)
67 Coal                                    3,088       3,035          53        6,028       5,922         106
68 Gas, oil and other                      2,074       1,339         735        3,201       1,706       1,495
                                          ------      ------      ------       ------      ------      ------
69 Total                                   6,781       6,234         547       13,095      11,636       1,459
                                          ------      ------      ------       ------      ------      ------
   PURCHASED POWER
70 Firm load                                 880       1,532        (652)       1,466       2,233        (767)
71 Marketing and trading                   5,984       7,167      (1,183)      11,816      12,673        (857)
                                          ------      ------      ------       ------      ------      ------
72 Total                                   6,864       8,699      (1,835)      13,282      14,906      (1,624)
                                          ------      ------      ------       ------      ------      ------
73 Total energy sources                   13,645      14,933      (1,288)      26,377      26,542        (165)
                                          ======      ======      ======       ======      ======      ======

   POWER PLANT PERFORMANCE

   CAPACITY FACTORS
74 Nuclear                                    67%         77%        (10)%         80%         83%         (3)%
75 Coal                                       83%         81%          2%          81%         79%          2%
76 Gas, oil and other                         27%         20%          7%          22%         13%          9%
77 System average                             49%         50%         (1)%         48%         47%          1%

   GENERATION CAPACITY OUT OF SERVICE
   AND REPLACED FOR NATIVE LOAD
   (AVERAGE MW/DAY)
78 Nuclear                                   329         233          96          381         368          13
79 Coal                                      244         153          91          440         301         139
80 Gas                                       164          47         117          376          96         280
                                          ------      ------      ------       ------      ------      ------
81 Total                                     737         433         304        1,197         765         432

82 Generation Fuel Cost ($/MWh)           $22.86      $18.59      $ 4.27       $19.31      $15.16      $ 4.15	

See Glossary of Terms. Page 6 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
PERIODS ENDED JUNE 30, 2005 AND 2004

                                                             3 MO. ENDED JUNE                     6 MO. ENDED JUNE
                                                     ---------------------------------    ---------------------------------
Line                                                  2005        2004     INCR (DECR)     2005        2004     INCR (DECR)
                                                     ------      ------    -----------    ------      ------    -----------
   ENERGY MARKET
   INDICATORS (a)

   ELECTRICITY AVERAGE DAILY SPOT PRICES ($/MWH)
   ON-PEAK
83 Palo Verde                                        $53.33      $50.36      $ 2.97       $51.54      $47.05      $ 4.49
84 SP15                                              $55.19      $54.73      $ 0.46       $55.45      $51.55      $ 3.90
   OFF-PEAK
85 Palo Verde                                        $33.03      $33.74      $(0.71)      $35.04      $33.70      $ 1.34
86 SP15                                              $34.73      $37.32      $(2.59)      $37.85      $37.11      $ 0.74

   WEATHER INDICATORS

   ACTUAL
87 Cooling degree-days                                1,538       1,598         (60)       1,572       1,871        (299)
88 Heating degree-days                                    1          11         (10)         458         563        (105)
89 Average humidity                                      20%         19%          1%          38%         29%          9%
   10-YEAR AVERAGES
90 Cooling degree-days                                1,491       1,491           -        1,571       1,571           -
91 Heating degree-days                                   36          36           -          557         557           -
92 Average humidity                                      24%         24%          0%          33%         33%          0%

   ECONOMIC INDICATORS

   BUILDING PERMITS - METRO PHOENIX
   (b) (d)
93 Single-family                                      7,837       8,903      (1,066)      18,193      18,948        (755)
94 Multi-family                                         621         915        (294)       2,362       2,673        (311)
                                                     ------      ------      ------       ------      ------      ------
95 Total                                              8,458       9,818      (1,360)      20,555      21,621      (1,066)
                                                     ======      ======      ======       ======      ======      ======

   ARIZONA JOB GROWTH  (c) (d)
96 Payroll job growth (% over prior year)               3.9%        3.2%        0.7%         4.0%        2.9%        1.1%
97 Unemployment rate
   (%, seasonally adjusted)                             4.9%        5.2%       (0.3)%        4.7%        5.2%       (0.5)%	

Sources:
(a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c) Arizona Department of Economic Security
(d) The economic indicators reflect latest available data through periods ending May 2005.
See Glossary of Terms. Page 7 of 31
  
EXHIBIT 99.3
Last Updated 7/27/2005
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                      $       91   $         2
2     Pinnacle West Energy                      (21)        12                              (8)           28
3     APS Energy Services                        (3)         1                              (2)           (5)
4     SunCor                                      9         11                              19            13
5     El Dorado                                  (1)         -                              (1)          (35)
6     Parent Company                             19         (3)                             16             7
                                            -------    -------   -------  -------   ----------   -----------

7     Income From Continuing Operations          30         85         -        -          115            10

8     Loss From Discontinued
      Operations - Net of Tax                    (6)       (58)                            (64)          (63)
9     Cumulative Effect of Change in
      Accounting - Net of Tax                     -          -                               -             -
                                            -------    -------   -------  -------   ----------   -----------

10    Net Income                            $    24    $    27   $     -  $     -   $       51   $       (53)
                                            =======    =======   =======  =======   ==========   ===========

      EARNINGS PER SHARE
      BY SUBSIDIARY - DILUTED

11    Arizona Public Service                $  0.30    $  0.66                      $     0.97   $     (0.01)
12    Pinnacle West Energy                    (0.23)      0.13                           (0.09)         0.31
13    APS Energy Services                     (0.04)      0.01                           (0.03)        (0.06)
14    SunCor                                   0.09       0.11                            0.21          0.15
15    El Dorado                               (0.01)         -                           (0.01)        (0.39)
16    Parent Company                           0.21      (0.03)                           0.17          0.07
                                            -------    -------   -------  -------   ----------   -----------

17    Income From Continuing Operations        0.32       0.88         -        -         1.22          0.07

18    Loss From Discontinued
      Operations - Net of Tax                 (0.05)     (0.60)                          (0.68)        (0.67)
19    Cumulative Effect of Change in
      Accounting - Net of Tax                     -          -                               -             -
                                            -------    -------   -------  -------   ----------   -----------

20    Net Income                            $  0.27    $  0.28   $     -  $     -   $     0.54   $     (0.60)
                                            =======    =======   =======  =======   ==========   ===========

21    BOOK VALUE PER SHARE                  $ 32.50    $ 32.89                      $    32.89        $ 1.21

      COMMON SHARES OUTSTANDING -
      DILUTED (THOUSANDS)
22    Average                                92,045     96,299                          94,189         2,798
23    End of Period                          92,103     98,442                          98,442         7,133	

See Glossary of Terms. Page 8 of 31
 
Last Updated 7/27/2005
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
24  Residential                           $        190  $       268                          $        458   $         24
25  Business                                       209          281                                   490             22
                                          ------------  -----------  -----------  ---------  ------------   ------------
26  Total retail                                   399          549            -          -           948             46
    WHOLESALE REVENUE ON DELIVERED
    ELECTRICITY
27  Traditional contracts                            3            5                                     8              1
28  Off-system sales                                 -           12                                    12             12
29  Transmission for others                          7            7                                    14             (2)
30  Other miscellaneous services                     7            7                                    14              4
                                          ------------  -----------  -----------  ---------  ------------   ------------
31  Total regulated electricity                    416          580            -          -           996             61
    MARKETING  AND TRADING
    SEGMENT
32  Electricity and other
    commodity sales                                 89           71                                   160            (39)
                                          ------------  -----------  -----------  ---------  ------------   ------------
33  Total operating electric revenues     $        505  $       651  $         -  $       -  $      1,156   $         22
                                          ============  ===========  ===========  =========  ============   ============

    ELECTRIC SALES (GWH)

    REGULATED ELECTRICITY
    SEGMENT
    RETAIL SALES
34  Residential                                  2,367        2,889                                 5,256            124
35  Business                                     3,042        3,684                                 6,726             73
                                          ------------  -----------  -----------  ---------  ------------   ------------
36  Total retail                                 5,409        6,573            -          -        11,982            197
    WHOLESALE ELECTRICITY DELIVERED
37  Traditional contracts                          155          200                                   355             22
38  Off-system sales                                 -          598                                   598            598
39  Retail load hedge management                   750          702                                 1,452            552
                                          ------------  -----------  -----------  ---------  ------------   ------------
40  Total regulated electricity                  6,314        8,073            -          -        14,387          1,369
    MARKETING  AND TRADING
    SEGMENT
41  Wholesale sales of electricity               5,777        4,901                                10,678         (2,161)
                                          ------------  -----------  -----------  ---------  ------------   ------------
42  Total electric sales                        12,091       12,974            -          -        25,065           (792)
                                          ============  ===========  ===========  =========  ============   ============	

See Glossary of Terms. Page 9 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2005

                                                                                                         INCREASE
                                                                                                        (DECREASE)
Line                                         1ST QTR    2ND QTR     3RD QTR   4TH QTR   YEAR-TO-DATE   VS PRIOR YTD
                                          ------------  ---------   --------  --------  ------------   ------------
     MARKETING AND TRADING
     SEGMENT PRETAX GROSS
     MARGIN ANALYSIS
     (DOLLARS IN MILLIONS)

     REALIZED AND MARK-TO-MARKET
     COMPONENTS
43   Electricity and other commodity
     sales, realized (a)                  $         12  $      18                         $     30     $         (4)
44   Mark-to-market reversals on
     realized sales (b)                             (3)        (8)                              (8)              (9)
45   Change in mark-to-market value of
     forward sales                                  10          3                               10                2
                                          ------------  ---------   --------  --------    --------     ------------
46   Total gross margin                   $         19  $      13   $      -  $      -    $     32     $        (11)
                                          ============  =========   ========  ========    ========     ============

     BY PINNACLE WEST ENTITY

47   Parent company marketing and
     trading division                     $         21  $       6                         $     27     $          4
48   APS                                            (4)         3                               (1)               4
49   Pinnacle West Energy                            5          -                                5              (12)
50   APS Energy Services                            (3)         4                                1               (7)
                                          ------------  ---------   --------  --------    --------     ------------
51   Total gross margin                   $         19  $      13   $      -  $      -    $     32     $        (11)
                                          ============  =========   ========  ========    ========     ============	

FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION
As of June 30, 2005, Pinnacle West had accumulated net mark-to-market gains of $43 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2005, $9 million; 2006, $7 million; 2007, $17 million; and thereafter, $10 million.

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 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 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the second quarter of 2005. A $8 million realized gain is included in the $18 million on line 43 for the second quarter of 2005.
(b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms. Page 10 of 31
 
Last Updated 7/27/2005
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
52  Residential                          889,967  888,509                         889,238         35,064
53  Business                             109,772  110,658                         110,227          4,218
                                         -------  -------  -------  -------  ------------   ------------
54  Total                                999,739  999,167        -        -       999,465         39,282
55  Wholesale customers                       81       76                              79             (3)
                                         -------  -------  -------  -------  ------------   ------------
56  Total customers                      999,820  999,243        -        -       999,544         39,279
                                         =======  =======  =======  =======  ============   ============

57  Customer Growth (% over prior year)      4.0%     4.2%                            4.1%           0.5%

    RETAIL SALES (GWH) -
    WEATHER NORMALIZED

58  Residential                            2,430    2,903                           5,333            200
59  Business                               3,058    3,693                           6,751            137
                                         -------  -------  -------  -------  ------------   ------------
60  Total                                  5,488    6,596        -        -        12,084            337
                                         =======  =======  =======  =======  ============   ============

    RETAIL USAGE
    (KWH/AVERAGE CUSTOMER)

61  Residential                            2,660    3,252                           5,911            (97)
62  Business                              27,712   33,292                          61,020         (1,739)

    RETAIL USAGE -
    WEATHER NORMALIZED
    (KWH/AVERAGE CUSTOMER)

63  Residential                            2,730    3,268                           5,997            (12)
64  Business                              27,860   33,374                          61,250         (1,143)

    ELECTRICITY DEMAND (MW)

65  System peak demand                     3,997    6,458                           6,458            826	

See Glossary of Terms. Page 11 of 31
 
Last Updated 7/27/2005
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
66  Nuclear                                       2,247        1,619                                 3,866          (142)
67  Coal                                          2,940        3,088                                 6,028           106
68  Gas, oil and other                            1,127        2,074                                 3,201         1,495
                                           ------------  -----------  ----------  ----------  ------------  ------------
69  Total                                         6,314        6,781           -           -        13,095         1,459
                                           ------------  -----------  ----------  ----------  ------------  ------------
    PURCHASED POWER
70  Firm load                                       586          880                                 1,466          (767)
71  Marketing and trading                         5,832        5,984                                11,816          (857)
                                           ------------  -----------  ----------  ----------  ------------  ------------
72  Total                                         6,418        6,864           -           -        13,282        (1,624)
                                           ------------  -----------  ----------  ----------  ------------  ------------
73  Total energy sources                         12,732       13,645           -           -        26,377          (165)
                                           ============  ===========  ==========  ==========  ============  ============

    POWER PLANT PERFORMANCE

    CAPACITY FACTORS
74  Nuclear                                          94%          67%                                   80%           (3)%
75  Coal                                             80%          83%                                   81%            2%
76  Gas, oil and other                               17%          27%                                   22%            9%
77  System average                                   49%          49%                                   48%            1%

    GENERATION CAPACITY OUT OF SERVICE
    AND REPLACED FOR NATIVE LOAD
    (AVERAGE MW/DAY)
78  Nuclear                                          52          329                                   381            13
79  Coal                                            195          244                                   440           139
80  Gas                                             212          164                                   376           280
                                           ------------  -----------  ----------  ----------  ------------  ------------
81  Total                                           459          737           -           -         1,197           432

82  Generation Fuel Cost ($/MWh)           $      15.50  $     22.86                          $      19.31  $       4.15	

See Glossary of Terms. Page 12 of 31
 
Last Updated 7/27/2005
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
83  Palo Verde                                   $      49.74     $    53.33                          $      51.54   $       4.49
84  SP15                                         $      55.70     $    55.19                          $      55.45   $       3.90
    OFF-PEAK
85  Palo Verde                                   $      37.04     $    33.03                          $      35.04   $       1.34
86  SP15                                         $      40.96     $    34.73                          $      37.85   $       0.74

    WEATHER INDICATORS

    ACTUAL
87  Cooling degree-days                                    34          1,538                                 1,572           (299)
88  Heating degree-days                                   457              1                                   458           (105)
89  Average humidity                                       56%            20%                                   38%             9%
    10-YEAR AVERAGES
90  Cooling degree-days                                    80          1,491                                 1,571              -
91  Heating degree-days                                   521             36                                   557              -
92  Average humidity                                       43%            24%                                   33%             0%

    ECONOMIC INDICATORS

    BUILDING PERMITS -- METRO PHOENIX
    (b) (d)
93  Single-family                                      10,356          7,837                                18,193         (5,488)
94  Multi-family                                        1,741            621                                 2,362           (719)
                                                 ------------     ----------   -------  -------       ------------   ------------
95  Total                                              12,097          8,458         -        -             20,555         (6,207)
                                                 ============     ==========   =======  =======       ============   ============

    ARIZONA JOB GROWTH  (c) (d)
96  Payroll job growth (% over prior year)                4.1%           3.9%                                  4.0%           1.1%
97  Unemployment rate
    (%, seasonally adjusted)                              4.4%           4.9%                                  4.7%          (0.5)%	

Sources:
(a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c) Arizona Department of Economic Security
(d) The economic indicators reflect latest available data through periods ending May 2005.
See Glossary of Terms. Page 13 of 31
  
EXHIBIT 99.4
Last Updated 7/27/2005
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             36
                                        --------     --------     --------    --------     --------       --------

 7 Income From Continuing Operations          31           74          104          38          247             21

 8 Income (Loss) From Discontinued
   Operations - Net of Tax                     -           (1)           1          (4)          (4)           (18)
 9 Cumulative Effect of Change in
   Accounting - Net of Tax                     -            -            -           -            -              -
                                        --------     --------     --------    --------     --------       --------

10 Net Income                           $     31     $     73     $    105    $     34     $    243       $      3
                                        ========     ========     ========    ========     ========       ========

   EARNINGS PER SHARE
   BY SUBSIDIARY - DILUTED

11 Arizona Public Service               $   0.38     $   0.60     $   1.04    $   0.16     $   2.18       $   0.20
12 Pinnacle West Energy                    (0.24)       (0.15)        0.01       (0.25)       (0.63)         (0.55)
13 APS Energy Services                      0.02         0.01         0.01       (0.01)        0.03          (0.15)
14 SunCor                                   0.02         0.04         0.05        0.34         0.45          (0.05)
15 El Dorado                                   -         0.37            -           -         0.36           0.37
16 Parent Company                           0.16        (0.06)        0.03        0.17         0.30           0.40
                                        --------     --------     --------    --------     --------       --------

17 Income From Continuing Operations        0.34         0.81         1.14        0.41         2.69           0.22

18 Income (Loss) From Discontinued
   Operations - Net of Tax                     -        (0.02)        0.01       (0.04)       (0.03)         (0.19)
19 Cumulative Effect of Change in
   Accounting - Net of Tax                     -            -            -           -            -              -
                                        --------     --------     --------    --------     --------       --------

20 Net Income                           $   0.34     $   0.79     $   1.15    $   0.37     $   2.66       $   0.03
                                        ========     ========     ========    ========     ========       ========

21 BOOK VALUE PER SHARE                 $  31.19     $  31.68     $  32.55    $  32.24     $  32.24       $   1.27

   COMMON SHARES OUTSTANDING -
   DILUTED (THOUSANDS)
22 Average                                91,376       91,400       91,491      91,779       91,532            127
23 End of Period                          91,310       91,309       91,443      91,793       91,793            505	

See Glossary of Terms. Page 14 of 31
 
Last Updated 7/27/2005
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
24 Residential                            $   189      $   245      $   360      $   190      $   984      $    27
25 Business                                   211          257          289          222          979           26
                                          -------      -------      -------      -------      -------      -------
26 Total retail                               400          502          649          412        1,963           53
   WHOLESALE REVENUE ON DELIVERED
   ELECTRICITY
27 Traditional contracts                        3            4            6            3           16            1
28 Off-system sales                             -            -            -            -            -            -
29 Transmission for others                      8            8            8            8           32            5
30 Other miscellaneous services                 4            6            8            6           24           (2)
                                          -------      -------      -------      -------      -------      -------
31 Total regulated electricity                415          520          671          429        2,035           57
   MARKETING  AND TRADING
   SEGMENT
32 Electricity and other
   commodity sales                             89          110           91          111          401            9
                                          -------      -------      -------      -------      -------      -------
33 Total operating electric revenues      $   504      $   630      $   762      $   540      $ 2,436      $    66
                                          =======      =======      =======      =======      =======      =======

   ELECTRIC SALES (GWH)

   REGULATED ELECTRICITY
   SEGMENT
   RETAIL SALES
34 Residential                              2,410        2,722        4,028        2,368       11,528          381
35 Business                                 3,051        3,602        3,937        3,236       13,826          410
                                          -------      -------      -------      -------      -------      -------
36 Total retail                             5,461        6,324        7,965        5,604       25,354          791
   WHOLESALE ELECTRICITY DELIVERED
37 Traditional contracts                      138          195          210          167          710          210
38 Off-system sales                             -            -            -            -            -            -
39 Retail load hedge management               169          731          943          889        2,732        1,639
                                          -------      -------      -------      -------      -------      -------
40 Total regulated electricity              5,768        7,250        9,118        6,660       28,796        2,640
   MARKETING  AND TRADING
   SEGMENT
41 Wholesale sales of electricity           5,696        7,143        8,995        8,348       30,182        1,380
                                          -------      -------      -------      -------      -------      -------
42 Total electric sales                    11,464       14,393       18,113       15,008       58,978        4,020
                                          =======      =======      =======      =======      =======      =======	

See Glossary of Terms. Page 15 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2004

                                                                                                               INCREASE
                                                                                                              (DECREASE)
Line                                      1ST QTR      2ND QTR       3RD QTR       4TH QTR     YEAR-TO-DATE  VS PRIOR YTD
                                          -------      -------       -------       -------     ------------  ------------
    MARKETING AND TRADING
    SEGMENT PRETAX GROSS
    MARGIN ANALYSIS
    (DOLLARS IN MILLIONS)

    REALIZED AND MARK-TO-MARKET
    COMPONENTS
43  Electricity and other commodity
    sales, realized (a)                    $ 12          $ 22          $ 13          $ 16          $ 63          $ (2)
44  Mark-to-market reversals on
    realized sales (b)                        1            (4)           (3)            -            (6)            -
45  Change in mark-to-market value of
    forward sales                             8             4             5             6            23            35
                                           ----          ----          ----          ----          ----          ----
46  Total gross margin                     $ 21          $ 22          $ 15          $ 22          $ 80          $ 33
                                           ====          ====          ====          ====          ====          ====

    BY PINNACLE WEST ENTITY

47  Parent company marketing and
    trading division                       $ 12          $ 11          $  9          $ 12          $ 44          $ 49
48  APS                                      (5)            -             2            (2)           (5)          (13)
49  Pinnacle West Energy                     10             7             -            10            27            19
50  APS Energy Services                       4             4             4             2            14           (22)
                                           ----          ----          ----          ----          ----          ----
51  Total gross margin                     $ 21          $ 22          $ 15          $ 22          $ 80          $ 33
                                           ====          ====          ====          ====          ====          ====	

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $6 million was transferred to "realized" for the total year 2004. A $6 million realized gain is included in the $63 million on line 43 for the total year 2004.
(b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms. Page 16 of 31
 
Last Updated 7/27/2005
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
52  Residential                              855,754       852,594       856,353       871,575       859,069        30,703
53  Business                                 105,502       106,517       107,583       108,860       107,115         4,019
                                             -------       -------       -------       -------       -------       -------
54  Total                                    961,256       959,111       963,936       980,435       966,184        34,722
55  Wholesale customers                           81            82            85            77            81            15
                                             -------       -------       -------       -------       -------       -------
56  Total customers                          961,337       959,193       964,021       980,512       966,265        34,737
                                             =======       =======       =======       =======       =======       =======

57  Customer Growth (% over prior year)          3.4%          3.8%          3.9%          3.9%          3.7%          0.4%

    RETAIL SALES (GWH) -
    WEATHER NORMALIZED

58  Residential                                2,371         2,762         4,231         2,340        11,704           825
59  Business                                   2,998         3,616         4,005         3,252        13,870           467
                                             -------       -------       -------       -------       -------       -------
60  Total                                      5,369         6,378         8,236         5,592        25,574         1,292
                                             =======       =======       =======       =======       =======       =======

    RETAIL USAGE
    (KWH/AVERAGE CUSTOMER)

61  Residential                                2,816         3,193         4,704         2,717        13,418           (39)
62  Business                                  28,919        33,816        36,595        29,726       129,392        (1,137)

    RETAIL USAGE -
    WEATHER NORMALIZED
    (KWH/AVERAGE CUSTOMER)

63  Residential                                2,770         3,240         4,941         2,686        13,624           491
64  Business                                  28,422        33,944        37,227        29,871       129,495          (511)

    ELECTRICITY DEMAND (MW)

65  System peak demand                         3,979         5,632         6,402         4,432         6,402            70	

See Glossary of Terms. Page 17 of 31
 
Last Updated 7/27/2005
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
66 Nuclear                                2,148        1,860        2,364        1,812        8,184         (131)
67 Coal                                   2,887        3,035        3,417        3,327       12,666        1,300
68 Gas, oil and other                       367        1,339        2,547        1,074        5,327         (764)
                                         ------       ------       ------       ------       ------       ------
69 Total                                  5,402        6,234        8,328        6,213       26,177          405
                                         ------       ------       ------       ------       ------       ------
   PURCHASED POWER
70 Firm load                                701        1,532        1,068        1,024        4,325        1,214
71 Marketing and trading                  5,506        7,167        9,301        8,218       30,192        2,443
                                         ------       ------       ------       ------       ------       ------
72 Total                                  6,207        8,699       10,369        9,242       34,517        3,657
                                         ------       ------       ------       ------       ------       ------
73 Total energy sources                  11,609       14,933       18,697       15,455       60,694        4,062
                                         ======       ======       ======       ======       ======       ======

   POWER PLANT PERFORMANCE

   CAPACITY FACTORS
74 Nuclear                                   88%          77%          96%          74%          84%          (3)%
75 Coal                                      77%          81%          90%          88%          84%           8%
76 Gas, oil and other                         5%          20%          38%          12%          18%         (10)%
77 System average                            44%          50%          64%          48%          51%          (4)%

   GENERATION CAPACITY OUT OF SERVICE
   AND REPLACED FOR NATIVE LOAD
   (AVERAGE MW/DAY)
78 Nuclear                                  135          233           13          261          161           29
79 Coal                                     149          153           63           61          107         (163)
80 Gas                                       49           47           39           34           42         (163)
                                         ------       ------       ------       ------       ------       ------
81 Total                                    333          433          115          356          310         (296)

82 Generation Fuel Cost ($/MWh)          $11.17       $18.59       $20.73       $20.90       $18.31       $ 0.95	

See Glossary of Terms. Page 18 of 31
 
Last Updated 7/27/2005
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
83 Palo Verde                                  $43.73       $50.36       $51.86       $51.23       $49.30         $ 0.70
84 SP15                                        $48.37       $54.73       $57.09       $60.62       $55.20         $ 3.82
   OFF-PEAK
85 Palo Verde                                  $33.66       $33.74       $33.37       $38.21       $34.75         $ 2.72
86 SP15                                        $36.90       $37.32       $37.18       $43.07       $38.62         $ 3.96

   WEATHER INDICATORS

   ACTUAL
87 Cooling degree-days                            273        1,598        2,471          352        4,694           (205)
88 Heating degree-days                            552           11            -          422          985            249
89 Average humidity                                39%          19%          26%          45%          32%             1%
   10-YEAR AVERAGES
90 Cooling degree-days                             80        1,491        2,540          420        4,531            420
91 Heating degree-days                            521           36            -          415          972            415
92 Average humidity                                43%          24%          33%          40%          35%             0%

  ECONOMIC INDICATORS

   BUILDING PERMITS -- METRO PHOENIX (b)
93 Single-family                               10,045       13,636       14,111       10,325       48,117          8,466
94 Multi-family                                 1,757        1,324        2,149        2,356        7,586            859
                                               ------       ------       ------       ------       ------         ------
95 Total                                       11,802       14,960       16,260       12,681       55,703          9,325
                                               ======       ======       ======       ======       ======         ======

   ARIZONA JOB GROWTH (c)
96 Payroll job growth (% over prior year)         2.7%         3.3%         3.6%         3.9%         3.4%           2.0%
97 Unemployment rate
   (%, seasonally adjusted)                       5.2%         5.1%         4.9%         4.6%         5.0%          (0.7)%	

Sources:
(a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c) Arizona Department of Economic Security
See Glossary of Terms. Page 19 of 31
  
EXHIBIT 99.5
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                               INCREASE
                                                                                                              (DECREASE)
Line                                     1ST QTR      2ND QTR      3RD QTR        4TH QTR      YEAR-TO-DATE  VS PRIOR YTD
                                         --------     --------    ----------     ----------    ------------  ------------
    EARNINGS CONTRIBUTION BY
    SUBSIDIARY ($ MILLIONS)

 1  Arizona Public Service               $     16     $     43    $      100     $       21     $      181     $    (18)
 2  Pinnacle West Energy                        4            1             2            (15)            (8)          11
 3  APS Energy Services                         8            5             1              3             16          (12)
 4  SunCor                                      1            2             6             36             46           36
 5  El Dorado                                   -            -             -              -              -           (4)
 6  Parent Company                            (11)           3             -              -            (10)         (30)
                                         --------     --------    ----------     ----------     ----------     --------

 7  Income From Continuing Operations          18           54           109             45            225          (17)

 8  Income From Discontinued
    Operations - Net of Tax                     7            2             1              4             16           43
 9  Cumulative Effect of Change in
    Accounting - Net of Tax                     -            -             -              -              -           66
                                         --------     --------    ----------     ----------     ----------     --------

10  Net Income                           $     25     $     56    $      110     $       49     $      241     $     92
                                         ========     ========    ==========     ==========     ==========     ========

    EARNINGS PER SHARE
    BY SUBSIDIARY - DILUTED

11  Arizona Public Service               $   0.17     $   0.47    $     1.10     $     0.24     $     1.98     $  (0.37)
12  Pinnacle West Energy                     0.05         0.01          0.02          (0.16)         (0.08)        0.15
13  APS Energy Services                      0.08         0.06          0.01           0.03           0.18        (0.15)
14  SunCor                                   0.01         0.03          0.07           0.39           0.50         0.37
15  El Dorado                                   -            -             -              -          (0.01)       (0.05)
16  Parent Company                          (0.11)        0.02         (0.01)         (0.01)         (0.10)       (0.33)
                                         --------     --------    ----------     ----------     ----------     --------

17  Income From Continuing Operations        0.20         0.59          1.19           0.49           2.47        (0.38)

18  Income From Discontinued
    Operations - Net of Tax                  0.08         0.02          0.01           0.05           0.16         0.48
19  Cumulative Effect of Change in
    Accounting - Net of Tax                     -            -             -              -              -         0.77
                                         --------     --------    ----------     ----------     ----------     --------

20  Net Income                           $   0.28     $   0.61    $     1.20     $     0.54     $     2.63     $   0.87
                                         ========     ========    ==========     ==========     ==========     ========

21  BOOK VALUE PER SHARE                 $  29.39     $  29.95    $    30.68     $    30.97     $    30.97     $   1.57

    COMMON SHARES OUTSTANDING -
    DILUTED (THOUSANDS)
22  Average                                91,359       91,450        91,467         91,403         91,405        6,441
23  End of Period                          91,257       91,262        91,271         91,288         91,288           33	

See Glossary of Terms. Page 20 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                        INCREASE
                                                                                                       (DECREASE)
Line                                       1ST QTR    2ND QTR    3RD QTR    4TH QTR    YEAR-TO-DATE   VS PRIOR YTD
                                           -------    -------    -------    -------    ------------   ------------

      ELECTRIC OPERATING
      REVENUES (DOLLARS IN  MILLIONS)

      REGULATED ELECTRICITY
      SEGMENT
      RETAIL
24    Residential                          $   168    $   233    $   363    $   193       $   957       $    51
25    Business                                 196        251        284        222           953            25
                                           -------    -------    -------    -------       -------       -------
26    Total retail                             364        484        647        415         1,910            76
      WHOLESALE REVENUE ON DELIVERED
      ELECTRICITY
27    Traditional contracts                      3          4          5          3            15             6
28    Off-system sales                           -          -          -          -             -             -
29    Transmission for others                    6          5          9          7            27            (3)
30    Other miscellaneous services               7          6          6          7            26             9
                                           -------    -------    -------    -------       -------       -------
31    Total regulated electricity              380        499        667        432         1,978            88
      MARKETING AND TRADING
      SEGMENT
32    Electricity and other
      commodity sales                          117        101         83         91           392           105
                                           -------    -------    -------    -------       -------       -------
33    Total operating electric revenues    $   497    $   600    $   750    $   523       $ 2,370       $   193
                                           =======    =======    =======    =======       =======       =======

      ELECTRIC SALES (GWH)

      REGULATED ELECTRICITY
      SEGMENT
      RETAIL SALES
34    Residential                            2,104      2,543      4,126      2,374        11,147           703
35    Business                               2,849      3,450      3,891      3,226        13,416           499
                                           -------    -------    -------    -------       -------       -------
36    Total retail                           4,953      5,993      8,017      5,600        24,563         1,202
      WHOLESALE ELECTRICITY DELIVERED
37    Traditional contracts                    130        131        127        112           500            26
38    Off-system sales                           -          -          -          -             -             -
39    Retail load hedge management             109        205        446        333         1,093        (1,549)
                                           -------    -------    -------    -------       -------       -------
40    Total regulated electricity            5,192      6,329      8,590      6,045        26,156          (321)
      MARKETING  AND TRADING
      SEGMENT
41    Wholesale sales of electricity         7,372      6,798      7,255      7,377        28,802         5,947
                                           -------    -------    -------    -------       -------       -------
42    Total electric sales                  12,564     13,127     15,845     13,422        54,958         5,626
                                           =======    =======    =======    =======       =======       =======	

See Glossary of Terms. Page 21 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                      INCREASE
                                                                                                     (DECREASE)
Line                                    1ST QTR    2ND QTR     3RD QTR     4TH QTR   YEAR-TO-DATE   VS PRIOR YTD
                                        -------    -------     -------     -------   ------------   ------------
    MARKETING AND TRADING
    SEGMENT PRETAX GROSS
    MARGIN ANALYSIS
    (DOLLARS IN MILLIONS)

    REALIZED AND MARK-TO-MARKET
    COMPONENTS
43  Electricity and other commodity
    sales, realized (a)                  $ 25        $ 20        $  4        $ 16        $ 65           $(56)
44  Mark-to-market reversals on
    realized sales (b)                     (3)          1          (3)         (1)         (6)            35
45  Change in mark-to-market value of
    forward sales                          (3)         (1)         (3)         (5)        (12)           (64)
                                         ----        ----        ----        ----        ----           ----
46  Total gross margin                   $ 19        $ 20        $ (2)       $ 10        $ 47           $(85)
                                         ----        ----        ----        ----        ----           ----

    BY PINNACLE WEST ENTITY

47  Parent company marketing and
    trading division                     $  2        $  4        $ (2)       $ (9)       $ (5)          $(95)
48  APS                                     6           4          (6)          4           8           $  6
49  Pinnacle West Energy                   (1)          -           -           9           8           $  4
50  APS Energy Services                    12          12           6           6          36           $  -
                                         ----        ----        ----        ----        ----           ----
51  Total gross margin                   $ 19        $ 20        $ (2)       $ 10        $ 47           $(85)
                                         ----        ----        ----        ----        ----           ----	

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $6 million was transferred to "realized" for the total year 2003. A $6 million realized gain is included in the $65 million on line 43 for the total year 2003.
(b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms. Page 22 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                        INCREASE
                                                                                                       (DECREASE)
Line                                      1ST QTR     2ND QTR     3RD QTR     4TH QTR  YEAR-TO-DATE   VS PRIOR YTD
                                          -------     -------     -------     -------  ------------   ------------
   AVERAGE ELECTRIC CUSTOMERS

   RETAIL CUSTOMERS
52 Residential                            827,937     821,331     824,655     839,539     828,366         26,565
53 Business                               101,999     102,601     103,262     104,521     103,096          2,868
                                          -------     -------     -------     -------     -------        -------
54 Total                                  929,936     923,932     927,917     944,060     931,462         29,432
55 Wholesale customers                         65          66          66          66          66             (1)
                                          -------     -------     -------     -------     -------        -------
56 Total customers                        930,001     923,998     927,983     944,126     931,528         29,431
                                          =======     =======     =======     =======     =======        =======

57 Customer Growth (% over prior year)        3.3%        3.1%        3.2%        3.4%        3.3%           0.2%

   RETAIL SALES (GWH) -
   WEATHER NORMALIZED

58 Residential                              2,223       2,520       3,872       2,264      10,879            389
59 Business                                 2,886       3,485       3,858       3,174      13,403            498
                                          -------     -------     -------     -------     -------        -------
60 Total                                    5,109       6,005       7,730       5,438      24,282            887
                                          =======     =======     =======     =======     =======        =======

   RETAIL USAGE
   (KWH/AVERAGE CUSTOMER)

61 Residential                              2,541       3,096       5,004       2,828      13,457            432
62 Business                                27,927      33,625      37,677      30,865     130,529          1,288

   RETAIL USAGE -
   WEATHER NORMALIZED
   (KWH/AVERAGE CUSTOMER)

63 Residential                              2,685       3,067       4,695       2,697      13,133             50
64 Business                                28,290      33,969      37,360      30,371     130,006          1,251

   ELECTRICITY DEMAND (MW)

65 System peak demand                       3,569       5,571       6,332       5,124       6,332            529	

See Glossary of Terms. Page 23 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                       INCREASE
                                                                                                      (DECREASE)
Line                                     1ST QTR      2ND QTR     3RD QTR     4TH QTR  YEAR-TO-DATE  VS PRIOR YTD
                                         -------      -------     -------     -------  ------------  ------------
   ENERGY SOURCES (GWH)

   GENERATION PRODUCTION
66 Nuclear                                 2,306        2,047       2,230       1,732       8,315          (666)
67 Coal                                    2,770        2,824       2,972       2,800      11,366          (690)
68 Gas, oil and other                      1,288        1,572       2,696         535       6,091         1,722
                                         -------      -------     -------     -------     -------       -------
69 Total                                   6,364        6,443       7,898       5,067      25,772           366
                                         -------      -------     -------     -------     -------       -------
   PURCHASED POWER
70 Firm load                                 (12)         606       1,099       1,418       3,111         1,492
71 Marketing and trading                   6,489        6,527       7,498       7,235      27,749         4,045
                                         -------      -------     -------     -------     -------       -------
72 Total                                   6,477        7,133       8,597       8,653      30,860         5,537
                                         -------      -------     -------     -------     -------       -------
73 Total energy sources                   12,841       13,576      16,495      13,720      56,632         5,903
                                         =======      =======     =======     =======     =======       =======

   POWER PLANT PERFORMANCE

   CAPACITY FACTORS
74 Nuclear                                    98%          86%         93%         72%         87%           (7)%
75 Coal                                       75%          75%         79%         74%         76%           (4)%
76 Gas, oil and other                         26%          31%         44%          9%         28%            1%
77 System average                             58%          59%         64%         41%         55%           (8)%

   GENERATION CAPACITY OUT OF SERVICE
   AND REPLACED FOR NATIVE LOAD
   (AVERAGE MW/DAY)
78 Nuclear                                    31          136          61         297         131            64
79 Coal                                      292          254         277         253         269           102
80 Gas                                       189          148         154         338         205           157
                                         -------      -------     -------     -------     -------       -------
81 Total                                     512          538         492         888         605           323

82 Generation Fuel Cost ($/MWh)          $ 15.89      $ 16.80     $ 19.52     $ 15.40     $ 17.36       $  4.35	

See Glossary of Terms. Page 24 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2003

                                                                                                           INCREASE
                                                                                                          (DECREASE)
Line                                          1ST QTR    2ND QTR    3RD QTR    4TH QTR    YEAR-TO-DATE   VS PRIOR YTD
                                              -------    -------    -------    -------    ------------   ------------
    ENERGY MARKET INDICATORS (a)

    ELECTRICITY AVERAGE DAILY SPOT PRICES
    ($/MWH)
    ON-PEAK
83  Palo Verde                                $49.66     $48.88     $52.88     $42.98        $48.60        $16.32
84  SP15                                      $54.35     $50.73     $53.54     $46.88        $51.38        $17.16
    OFF-PEAK
85  Palo Verde                                $36.09     $25.48     $36.08     $30.48        $32.03        $12.14
86  SP15                                      $39.70     $28.27     $37.81     $32.85        $34.66        $12.97

    WEATHER INDICATORS

    ACTUAL
87  Cooling degree-days                           76      1,550      2,701        572         4,899            24
88  Heating degree-days                          349         17          -        370           736           (64)
89  Average humidity                              44%        18%        30%        34%           31%            4%
    10-YEAR AVERAGES
90  Cooling degree-days                           80      1,491      2,540        420         4,531             -
91  Heating degree-days                          521         36          -        415           972             -
92  Average humidity                              43%        24%        33%        40%           35%            0%

    ECONOMIC INDICATORS

    BUILDING PERMITS -- METRO PHOENIX (b)
93  Single-family                              8,030     10,613     11,191      9,817        39,651         5,339
94  Multi-family                                 863      2,053      1,231      2,580         6,727          (347)
                                              ------     ------     ------     ------        ------        ------
95  Total                                      8,893     12,666     12,422     12,397        46,378         4,992
                                              ======     ======     ======     ======        ======        ======

    ARIZONA JOB GROWTH  (c)
96  Payroll job growth (% over prior year)       1.1%       0.9%       1.5%       2.0%          1.4%          1.4%
97  Unemployment rate
    (%, seasonally adjusted)                     5.8%       5.9%       5.7%       5.3%          5.7%         (0.5)%	

Sources:
(a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c) Arizona Department of Economic Security
See Glossary of Terms. Page 25 of 31
  
EXHIBIT 99.6
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                        INCREASE
                                                                                                       (DECREASE)
Line                                       1ST QTR   2ND QTR    3RD QTR    4TH QTR    YEAR-TO-DATE    VS PRIOR YTD
                                           -------   -------    -------    -------    ------------    ------------
       EARNINGS CONTRIBUTION BY
       SUBSIDIARY ($ MILLIONS)

 1     Arizona Public Service              $    32   $    64    $    87    $    16      $    199        $    (82)
 2     Pinnacle West Energy                      1         1         10        (31)          (19)            (37)
 3     APS Energy Services                       2        11          7          8            28              38
 4     SunCor                                    1         2         (1)         8            10               7
 5     El Dorado                                 -        (3)        (2)         9             4               4
 6     Parent Company                           17        (6)         8          1            20             (15)
                                           -------   -------    -------    -------      --------        --------

 7     Income From Continuing Operations        53        69        109         11           242             (85)

 8     Income (Loss) From Discontinued
       Operations - Net of Tax                   1         6         (8)       (26)          (27)            (27)
 9     Cumulative Effect of Change in
       Accounting - Net of Tax                   -         -          -        (66)          (66)            (51)
                                           -------   -------    -------    -------      --------        --------

10     Net Income                          $    54   $    75    $   101    $   (81)     $    149        $   (163)
                                           =======   =======    =======    =======      ========        ========

       EARNINGS PER SHARE
       BY SUBSIDIARY - DILUTED

11     Arizona Public Service              $  0.37   $  0.76    $  1.02    $  0.19      $   2.35        $  (0.95)
12     Pinnacle West Energy                   0.01      0.01       0.12      (0.37)        (0.23)          (0.44)
13     APS Energy Services                    0.03      0.13       0.08       0.09          0.33            0.45
14     SunCor                                 0.02      0.02      (0.01)      0.09          0.13            0.09
15     El Dorado                                 -     (0.04)     (0.02)      0.10          0.05            0.05
16     Parent Company                         0.20     (0.07)      0.10       0.02          0.23           (0.19)
                                           -------   -------    -------    -------      --------        --------

17     Income From Continuing Operations      0.63      0.81       1.29       0.12          2.86           (0.99)

18     Income (Loss) From Discontinued
       Operations - Net of Tax                   -      0.08      (0.10)     (0.30)        (0.32)          (0.32)
19     Cumulative Effect of Change in
       Accounting - Net of Tax                   -         -          -      (0.77)        (0.77)          (0.60)
                                           -------   -------    -------    -------      --------        --------

20     Net Income                          $  0.63   $  0.89    $  1.19    $ (0.95)     $   1.77        $  (1.91)
                                           =======   =======    =======    =======      ========        ========

21     BOOK VALUE PER SHARE                $ 30.06   $ 30.54    $ 31.39    $ 29.40      $  29.40        $  (0.06)

       COMMON SHARES OUTSTANDING -
       DILUTED (THOUSANDS)
22     Average                              84,884    84,926     84,797     85,302        84,964              34
23     End of Period                        84,789    84,768     84,756     91,255        91,255           6,531	

See Glossary of Terms. Page 26 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                              INCREASE
                                                                                                             (DECREASE)
Line                                       1ST QTR     2ND QTR     3RD QTR     4TH QTR     YEAR-TO-DATE     VS PRIOR YTD
                                           -------     -------     -------     -------     ------------     ------------
     ELECTRIC OPERATING
     REVENUES (DOLLARS IN  MILLIONS)

     REGULATED ELECTRICITY
     SEGMENT
     RETAIL
24   Residential                           $   171     $   226     $   337     $   172       $   906         $    (9)
25   Business                                  195         251         270         212           928             (24)
                                           -------     -------     -------     -------       -------         -------
26   Total retail                              366         477         607         384         1,834             (33)
     WHOLESALE REVENUE ON DELIVERED
     ELECTRICITY
27   Traditional contracts                       2           1           3           3             9             (64)
28   Off-system sales                            -           -           -           -             -               -
29   Transmission for others                     6           6           6          12            30               4
30   Other miscellaneous services                4           2           4           7            17              (1)
                                           -------     -------     -------     -------       -------         -------
31   Total regulated electricity               378         486         620         406         1,890             (94)
     MARKETING  AND TRADING
     SEGMENT
32   Electricity and other
     commodity sales                            62          41          83         101           287            (183)
                                           -------     -------     -------     -------       -------         -------
33   Total operating electric revenues     $   440     $   527     $   703     $   507       $ 2,177         $  (277)
                                           =======     =======     =======     =======       =======         =======

     ELECTRIC SALES (GWH)

     REGULATED ELECTRICITY
     SEGMENT
     RETAIL SALES
34   Residential                             2,141       2,441       3,806       2,056        10,444             109
35   Business                                2,771       3,429       3,681       3,036        12,917            (147)
                                           -------     -------     -------     -------       -------         -------
36   Total retail                            4,912       5,870       7,487       5,092        23,361             (38)
     WHOLESALE ELECTRICITY DELIVERED
37   Traditional contracts                      71         121         142         140           474            (739)
38   Off-system sales                            -           -           -           -             -               -
39   Retail load hedge management              158         230       1,958         296         2,642            (398)
                                           -------     -------     -------     -------       -------         -------
40   Total regulated electricity             5,141       6,221       9,587       5,528        26,477          (1,175)
     MARKETING  AND TRADING
     SEGMENT
41   Wholesale sales of electricity          4,212       4,443       7,104       7,096        22,855           6,854
                                           -------     -------     -------     -------       -------         -------
42   Total electric sales                    9,353      10,664      16,691      12,624        49,332           5,679
                                           =======     =======     =======     =======       =======         =======	

See Glossary of Terms. Page 27 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                              INCREASE
                                                                                                             (DECREASE)
Line                                       1ST QTR     2ND QTR     3RD QTR     4TH QTR     YEAR-TO-DATE     VS PRIOR YTD
                                           -------     -------     -------     -------     ------------     ------------
     MARKETING AND TRADING
     SEGMENT PRETAX GROSS
     MARGIN ANALYSIS
     (DOLLARS IN MILLIONS)

     REALIZED AND MARK-TO-MARKET
     COMPONENTS
43   Electricity and other commodity
     sales, realized (a)                   $    39     $    25     $    19     $    38      $   121           $ (62)
44   Mark-to-market reversals on
     realized sales (b)                        (22)         (9)          2          (8)         (41)            (47)
45   Change in mark-to-market value of
     forward sales                              23           3          23          (1)          52             (76)
                                           -------     -------     -------     -  ----      -------           -----
46   Total gross margin                    $    40     $    19     $    44     $    29      $   132           $(185)
                                           =======     =======     =======     =======      =======           =====

     BY PINNACLE WEST ENTITY

47   Parent company marketing and
     trading division                      $    35     $     9     $    32     $    14      $    90           $  12
48   APS                                         1           -           1           -            2            (233)
49   Pinnacle West Energy                        -           -           -           4            4               4
50   APS Energy Services                         4          10          11          11           36              32
                                           -------     -------     -------     -  ----      -------           -----
51   Total gross margin                    $    40     $    19     $    44     $    29      $   132           $(185)
                                           =======     =======     =======     =======      =======           =====	

(a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The opposites of amounts included in line 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $41 million was transferred to "realized" for the total year 2002. A $41 million realized gain is included in the $121 million on line 43 for total year 2002.
(b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms. Page 28 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                              INCREASE
                                                                                                             (DECREASE)
Line                                       1ST QTR     2ND QTR     3RD QTR     4TH QTR     YEAR-TO-DATE     VS PRIOR YTD
                                           -------     -------     -------     -------     ------------     ------------
    AVERAGE ELECTRIC CUSTOMERS

    RETAIL CUSTOMERS
52  Residential                            801,000     795,681     798,590     811,930       801,801          25,462
53  Business                                99,335     100,096     100,318     101,177       100,228           2,030
                                           -------     -------     -------     -------       -------          ------
54  Total                                  900,335     895,777     898,908     913,107       902,029          27,492
55  Wholesale customers                         67          67          67          67            67               1
                                           -------     -------     -------     -------       -------          ------
56  Total customers                        900,402     895,844     898,975     913,174       902,096          27,493
                                           =======     =======     =======     =======       =======          ======

57  Customer Growth (% over prior year)        3.2%        3.2%        3.1%        3.2%          3.1%           (0.5)%

    RETAIL SALES (GWH) -
    WEATHER NORMALIZED

58  Residential                              2,148       2,461       3,746       2,135        10,490             641
59  Business                                 2,776       3,410       3,696       3,024        12,905              86
                                           -------     -------     -------     -------       -------          ------
60  Total                                    4,924       5,871       7,441       5,159        23,395             727
                                           =======     =======     =======     =======       =======          ======

    RETAIL USAGE
    (KWH/AVERAGE CUSTOMER)

61  Residential                              2,673       3,068       4,766       2,532        13,025            (287)
62  Business                                27,896      34,258      36,691      30,011       129,241          (4,384)

    RETAIL USAGE -
    WEATHER NORMALIZED
    (KWH/AVERAGE CUSTOMER)

63  Residential                              2,681       3,093       4,690       2,630        13,083             396
64  Business                                27,943      34,065      36,839      29,885       128,754          (1,788)

    ELECTRICITY DEMAND (MW)

65  System peak demand                       3,921       5,425       5,803       3,828         5,803             116	

See Glossary of Terms. Page 29 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                              INCREASE
                                                                                                             (DECREASE)
Line                                       1ST QTR     2ND QTR     3RD QTR     4TH QTR     YEAR-TO-DATE     VS PRIOR YTD
                                           -------     -------     -------     -------     ------------     ------------
    ENERGY SOURCES (GWH)

    GENERATION PRODUCTION
66  Nuclear                                  2,257       2,242       2,387       2,095         8,981               596
67  Coal                                     2,890       2,703       3,280       3,183        12,056              (516)
68  Gas, oil and other                         337         659       1,918       1,455         4,369               375
                                           -------     -------     -------     -------       -------           -------
69  Total                                    5,484       5,604       7,585       6,733        25,406               455
                                           -------     -------     -------     -------       -------           -------
    PURCHASED POWER
70  Firm load                                   70         846         859        (157)        1,619            (1,342)
71  Marketing and trading                    3,993       4,599       8,771       6,340        23,704             6,051
                                           -------     -------     -------     -------       -------           -------
72  Total                                    4,063       5,445       9,630       6,183        25,323             4,709
                                           -------     -------     -------     -------       -------           -------
73  Total energy sources                     9,547      11,049      17,215      12,916        50,729             5,164
                                           =======     =======     =======     =======       =======           =======

    POWER PLANT PERFORMANCE

    CAPACITY FACTORS
74  Nuclear                                     96%         95%        100%         87%           94%                6%
75  Coal                                        78%         72%         87%         84%           80%               (4)%
76  Gas, oil and other                          12%         20%         38%         29%           27%              (10)%
77  System average                              62%         62%         69%         60%           63%               (7)%

    GENERATION CAPACITY OUT OF SERVICE
    AND REPLACED FOR NATIVE LOAD
    (AVERAGE MW/DAY)
78  Nuclear                                     62          66          12         129            67               (60)
79  Coal                                       184         279          88         116           167                 -
80  Gas                                         12          18         106          54            48                16
81  Total                                      258         363         206         299           282               (44)

82  Generation Fuel Cost ($/MWh)           $ 11.57     $ 11.89     $ 14.84     $ 13.05       $ 13.01           $ (3.21)	

See Glossary of Terms. Page 30 of 31
 
Last Updated 7/27/2005
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATISTICS BY QUARTER
2002

                                                                                                              INCREASE
                                                                                                             (DECREASE)
Line                                       1ST QTR     2ND QTR     3RD QTR     4TH QTR     YEAR-TO-DATE     VS PRIOR YTD
                                           -------     -------     -------     -------     ------------     ------------
    ENERGY MARKET INDICATORS (a)

    ELECTRICITY AVERAGE DAILY SPOT PRICES
    ($/MWH)
    ON-PEAK
83  Palo Verde                             $ 26.86     $ 30.65     $ 35.45     $ 36.18       $ 32.28          $(86.13)
84  SP15                                   $ 28.46     $ 31.51     $ 35.55     $ 41.35       $ 34.22          $(85.77)
    OFF-PEAK
85  Palo Verde                             $ 22.17     $ 14.10     $ 18.21     $ 25.09       $ 19.89          $(41.68)
86  SP15                                   $ 22.76     $ 15.95     $ 19.54     $ 28.52       $ 21.69          $(51.79)

    WEATHER INDICATORS

    ACTUAL
87  Cooling degree-days                         89       1,741       2,647         398         4,875             (247)
88  Heating degree-days                        472           -           -         328           800             (360)
89  Average humidity                            28%         16%         27%         38%           27%              (9)%
    10-YEAR AVERAGES
90  Cooling degree-days                         80       1,491       2,540         420         4,531                -
91  Heating degree-days                        521          36           -         415           972                -
92  Average humidity                            43%         24%         33%         40%           35%               0%

    ECONOMIC INDICATORS

    BUILDING PERMITS -- METRO PHOENIX (b)

93  Single-family                            7,682       9,666       8,689       8,275        34,312            1,447
94  Multi-family                             1,249       2,005       2,662       1,158         7,074           (1,930)
                                           -------     -------     -------     -------       -------          -------
95  Total                                    8,931      11,671      11,351       9,433        41,386             (483)
                                           =======     =======     =======     =======       =======          =======

    ARIZONA JOB GROWTH  (C)
96  Payroll job growth (% over prior year)    (0.8)%      (0.2)%      (0.1)%       1.1%          0.0%            (1.0)%
97  Unemployment rate                          6.3%        6.2%        6.1%        6.0%          6.2%             1.5%
    (%, seasonally adjusted)	

Sources:
(a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
(b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
(c) Arizona Department of Economic Security
See Glossary of Terms. Page 31 of 31
 
Exhibit 99.7 Last updated July 27, 2005
PINNACLE WEST CAPITAL CORPORATION
EARNINGS VARIANCE EXPLANATIONS
FOR THE PERIODS ENDED JUNE 30, 2005 AND 2004
This discussion explains the changes in our consolidated earnings for the three-month and six-month periods ended June 30, 2005 and 2004. Condensed Consolidated Statements of Income for the three months and six months ended June 30, 2005 and 2004 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2005 on or before August 9, 2005. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2004 and the Quarterly Report on Form 10-Q for the quarter ended March 31, 2005. Additional operating and financial statistics and a glossary of terms are available on our website (www.pinnaclewest.com).
EARNINGS CONTRIBUTION BY BUSINESS SEGMENT
We have three principal business segments (determined by products, services and the regulatory environment):
- our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution.
- our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services' commodity-related energy services; and
- our real estate segment, which consists of SunCor's real estate development and investment activities.
The following table summarizes net income for the three months and six months ended June 30, 2005 and 2004 (dollars in millions):

                                          Three Months Ended   Six Months Ended
                                               June 30,            June 30,
                                          ------------------   ----------------
                                           2005       2004      2005      2004
                                          ------     ------    ------    ------
Regulated electricity                     $   69     $   40    $   83    $   55
Marketing and trading                          4          8        11        22
Real estate                                   11          4        19         5
Other (a)                                      1         22         2        23
                                          ------     ------    ------    ------
Income from continuing operations             85         74       115       105
Silverhawk discontinued operations -
  net of income taxes (see "Pending
  Sale of Silverhawk" below)                 (59)        (2)      (65)       (3)
Real estate discontinued operations -
  net of income taxes                          1          -         1         1
Other segment discontinued
  operations- net of income taxes              -          1         -         1
                                          ------     ------    ------    ------
Net income                                $   27     $   73    $   51    $  104
                                          ======     ======    ======    ======	

(a) The 2004 periods include $21 million (after-tax) related to the sale of El Dorado's limited partnership interest in the Phoenix Suns.
GENERAL
Throughout the following explanations of our results of operations, we refer to "gross margin." With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to electric operating revenues less purchased power and fuel costs. "Gross margin" is a "non-GAAP financial measure," as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with 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 segments. We believe that investors benefit from having access to the same financial measures that our management uses. In addition, we have reclassified certain prior-period amounts to conform to our current-period presentation.
PENDING SALE OF SILVERHAWK POWER STATION
In June 2005, we entered into an agreement to sell our 75% interest in the Silverhawk Power Station to Nevada Power Company. Closing of the sale is subject to regulatory approvals, including approval by the Nevada Public Utilities Commission and the Federal Energy Regulatory Commission, which are expected to occur by this fall. As a result of this pending sale, we recorded an after-tax loss from discontinued operations of approximately $55 million. We have also reclassified Silverhawk operations in the current and prior periods to discontinued operations.
DEFERRED PURCHASED POWER AND FUEL COSTS
APS' retail rate case settlement became effective April 1, 2005. As part of the settlement, the ACC approved a 4.2% annual retail rate increase and a power supply adjustor ("PSA") that provides mechanisms for adjusting rates to reflect variations in fuel
2
and purchased power costs. In accordance with the PSA, APS defers for future rate recovery 90% of the difference between actual purchased power and fuel costs and the amount for such costs currently included in base rates. As of June 30, 2005, APS had deferred $34 million of pretax purchased power and fuel costs.
OPERATING RESULTS - THREE-MONTH PERIOD ENDED JUNE 30, 2005 COMPARED WITH THREE-MONTH PERIOD ENDED JUNE 30, 2004
Our consolidated net income for the three months ended June 30, 2005 was $27 million compared with $73 million for the prior-year period. The current-quarter net income included a loss from discontinued operations of $58 million which is primarily related to the pending sale and operations of Silverhawk (see discussion above). Income from continuing operations increased $11 million in the period-to-period comparison reflecting the following changes in earnings by segment:
- Regulated Electricity Segment - Income from continuing operations increased approximately $29 million primarily due to a retail price increase effective April 1, 2005, higher retail sales volumes due to customer growth, the absence of regulatory asset amortization, deferred purchased power and fuel costs, net of higher costs, in accordance with the retail rate settlement, and lower depreciation due to lower depreciation rates. These positive factors were partially offset by higher operations and maintenance costs primarily related to generation, customer service, and benefit costs.
- Marketing and Trading Segment - Income from continuing operations decreased approximately $4 million primarily due to lower realized margins on wholesale sales.
- Real Estate Segment - Income from continuing operations increased approximately $7 million primarily due to increased parcel sales.
- Other Segment - Income from continuing operations decreased approximately $21 million primarily due to an after-tax gain related to the sale of El Dorado's limited partnership interest in the Phoenix Suns recorded in the prior-year period.
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:
     Retail price increase effective April 1, 2005                 $   28         $  17
     Higher retail sales volumes due to customer growth,
         excluding weather effects                                     13             8
     Deferred purchased power and fuel costs, net of higher
         costs, in accordance with the retail rate
         settlement                                                     8             5
     Miscellaneous items, net                                           2             1
                                                                   ------         -----
         Net increase in regulated electricity segment gross
              margin                                                   51            31
                                                                   ------         -----
Marketing and trading segment gross margin:
     Lower realized margins on wholesale sales primarily
         due to lower unit margins and lower sales volumes             (6)           (4)
     Miscellaneous items, net                                          (3)           (1)
                                                                   ------         -----
         Net decrease in marketing and trading segment
              gross margin                                             (9)           (5)
                                                                   ------         -----
     Net increase in gross margin for regulated electricity
         and marketing and trading segments                            42            26
Higher real estate segment contribution primarily related to
     increased parcel sales                                            12             7
Lower other income due to sale of limited partnership interest
     in Phoenix Suns recorded in prior-year period                    (35)          (21)
Higher operation and maintenance expense due to generation,
     customer service and benefit costs                               (15)           (9)
Depreciation and amortization decreases primarily due to:
     Absence of regulatory asset amortization                          10             6
     Lower depreciation rates partially offset by higher
         depreciable assets                                             7             4
Higher interest expense, net of capitalized financing
     costs, primarily due to higher debt balances
     and interest rates                                                (6)           (4)
Miscellaneous items, net                                                6             2
                                                                   ------         -----
     Net increase in income from continuing operations             $   21            11
                                                                   ======
     Discontinued operations primarily related to the pending
         sale of Silverhawk (see discussion above)                                  (57)
                                                                                  -----
     Net decrease in net income                                                   $ (46)
                                                                                  =====	

REGULATED ELECTRICITY SEGMENT REVENUES
Regulated electricity segment revenues were $60 million higher for the three months ended June 30, 2005 compared with the prior-year period primarily as a result of:
- a $28 million increase in retail revenues due to a price increase effective April 1, 2005;
4
- an $18 million increase in retail revenues related to customer growth, excluding weather effects;
- a $12 million increase in Off-System Sales primarily due to sales previously reported in the marketing and trading segment now classified as sales in the regulated electricity segment in accordance with the retail rate settlement; and
- a $2 million increase due to miscellaneous factors.
MARKETING AND TRADING SEGMENT REVENUES
Marketing and trading segment revenues were $39 million lower for the three months ended June 30, 2005 compared with the prior-year period primarily as a result of:
- a $25 million decrease in revenues from Off-System Sales primarily due to lower sales volumes and sales previously reported in the marketing and trading segment now classified as sales in the regulated electricity segment in accordance with the retail rate settlement;
- a $7 million decrease in energy trading revenues on realized sales of electricity primarily due to lower delivered electricity prices and lower sales volumes;
- a $5 million decrease from lower volumes and prices for competitive retail sales in California; and
- a $2 million decrease on future mark-to-market gains due to higher price volatility.
REAL ESTATE REVENUES
Real estate revenues were $19 million higher for the three months ended June 30, 2005 compared with the prior-year period primarily due to increased parcel sales.
OPERATING RESULTS - SIX-MONTH PERIOD ENDED JUNE 30, 2005 COMPARED WITH SIX-MONTH PERIOD ENDED JUNE 30, 2004
Our consolidated net income for the six months ended June 30, 2005 was $51 million compared with $104 million for the prior-year period. The current year period net income included a loss from discontinued operations of $64 million which is primarily related to the pending sale and operations of Silverhawk (see discussion above). Income from continuing operations increased $10 million in the period-to-period comparison reflecting the following changes in earnings by segment:
- Regulated Electricity Segment - Income from continuing operations increased approximately $28 million primarily due to a retail price increase effective April 1, 2005, higher retail sales volumes due to customer growth, the absence of regulatory asset amortization, deferred purchased power and fuel costs, net of higher costs, in accordance with the retail rate settlement, and lower
5
depreciation due to lower depreciation rates. These positive factors were partially offset by higher operations and maintenance costs primarily related to generation, customer service, and benefit costs, and higher property taxes due to increased plant in service.
- Marketing and Trading Segment - Income from continuing operations decreased approximately $11 million primarily due to lower realized margins on wholesale sales and competitive retail sales in California.
- Real Estate Segment - Income from continuing operations increased approximately $14 million primarily due to increased parcel sales.
- Other Segment - Income from continuing operations decreased approximately $21 million primarily due to an after-tax gain related to the sale of El Dorado's limited partnership interest in the Phoenix Suns recorded in the prior-year period.
6
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:
     Retail price increase effective April 1, 2005                              $   28       $    17
     Higher retail sales volumes due to customer growth,
         excluding weather effects                                                  20            12
     Deferred purchased power and fuel costs, net of higher costs,
         in accordance with the retail rate settlement                              15             9
     Miscellaneous items, net                                                       (1)           (1)
                                                                                ------       -------
         Net increase in regulated electricity segment gross margin                 62            37
                                                                                ------       -------
Marketing and trading segment gross margin:
     Lower unit margins on competitive retail sales in California                   (7)           (4)
     Lower realized margins on wholesale sales primarily
         due to lower unit margins and lower sales volumes                          (5)           (3)
     Miscellaneous items, net                                                        1             -
                                                                                ------       -------
         Net decrease in marketing and trading segment gross margin                (11)           (7)
                                                                                ------       -------
     Net increase in gross margin for regulated electricity
         and marketing and trading segments                                         51            30
Higher real estate segment contribution primarily related to
     increased parcel sales                                                         24            14
Lower other income due to sale of limited partnership interest in
     Phoenix Suns recorded in the prior-year period                                (35)          (21)
Operations and maintenance increases primarily due to:
     Generation costs, including planned maintenance                               (11)           (7)
     Customer service costs, including planned maintenance                         (10)           (6)
     Benefit costs                                                                  (8)           (5)
     Miscellaneous items, net                                                       (3)           (2)
Depreciation and amortization decreases primarily due to:
     Absence of regulatory asset amortization                                       19            11
     Lower depreciation rates partially offset by higher
         depreciable assets                                                          8             5
Higher property taxes due to increased plant in service                             (7)           (4)
Miscellaneous items, net                                                            (5)           (5)
                                                                                ------       -------
     Net increase in income from continuing operations                          $   23            10
                                                                                ======
     Discontinued operations primarily related to the pending
         sale of Silverhawk (see discussion above)                                               (63)
                                                                                             -------
     Net decrease in net income                                                              $   (53)
                                                                                             =======	

REGULATED ELECTRICITY SEGMENT REVENUES
Regulated electricity segment revenues were $60 million higher for the six months ended June 30, 2005 compared with the prior-year period primarily as a result of:
- a $28 million increase in retail revenues related to customer growth, excluding weather effects;
- a $28 million increase in retail revenues due to a price increase effective April 1, 2005;
7
- a $12 million increase in Off-System Sales primarily due to sales previously reported in the marketing and trading segment now classified as sales in the regulated electricity segment in accordance with the retail rate settlement;
- a $9 million decrease in retail revenues related to milder weather; and
- a $1 million increase due to miscellaneous factors.
MARKETING AND TRADING SEGMENT REVENUES
Marketing and trading segment revenues were $38 million lower for the six months ended June 30, 2005 compared with the prior-year period primarily as a result of:
- a $19 million decrease in revenues from Off-System Sales primarily due to lower sales volumes, prices and sales previously reported in the marketing and trading segment now classified as sales in the regulated electricity segment in accordance with the retail rate settlement;
- a $14 million decrease from lower volumes and prices on competitive retail sales in California; and
- a $5 million decrease in energy trading revenues on realized sales of electricity primarily due to lower delivered electricity prices and lower volumes.
REAL ESTATE REVENUES
Real estate revenues were $40 million higher for the six months ended June 30, 2005 compared with the prior-year period primarily due to increased parcel sales.
8
 
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (unaudited)

(in thousands, except per share amounts)

                                                                    THREE MONTHS ENDED
                                                                          JUNE 30,              Increase (Decrease)
                                                                     2005        2004          Amount       Percent
                                                                  ---------    ---------     ---------     ---------
OPERATING REVENUES
        Regulated electricity segment                             $ 579,652    $ 519,929     $  59,723        11.5%  B
        Marketing and trading segment                                71,172      110,156       (38,984)       35.4%  W
        Real estate segment                                          84,753       66,084        18,669        28.3%  B
        Other revenues                                               20,259        9,414        10,845       115.2%  B
                                                                  ---------    ---------     ---------
           Total                                                    755,836      705,583        50,253         7.1%  B
                                                                  ---------    ---------     ---------

OPERATING EXPENSES
        Regulated electricity segment purchased power and fuel      160,590      151,642         8,948         5.9%  W
        Marketing and trading segment purchased power and fuel       57,593       88,067       (30,474)       34.6%  B
        Operations and maintenance                                  153,097      138,595        14,502        10.5%  W
        Real estate segment operations                               68,593       62,217         6,376        10.2%  W
        Depreciation and amortization                                85,142      102,012       (16,870)       16.5%  B
        Taxes other than income taxes                                34,638       32,308         2,330         7.2%  W
        Other expenses                                               17,556        7,575         9,981       131.8%  W
                                                                  ---------    ---------     ---------
            Total                                                   577,209      582,416        (5,207)        0.9%  B
                                                                  ---------    ---------     ---------

OPERATING INCOME                                                    178,627      123,167        55,460        45.0%  B
                                                                  ---------    ---------     ---------

OTHER
        Allowance for equity funds used during construction           2,952        2,184           768        35.2%  B
        Other income                                                  8,684       36,496       (27,812)       76.2%  W
        Other expense                                                (3,846)      (3,371)         (475)       14.1%  W
                                                                  ---------    ---------     ---------
            Total                                                     7,790       35,309       (27,519)       77.9%  W
                                                                  ---------    ---------     ---------

INTEREST EXPENSE
        Interest charges                                             49,781       42,061         7,720        18.4%  W
        Capitalized interest                                         (3,544)      (2,681)         (863)       32.2%  B
                                                                  ---------    ---------     ---------
            Total                                                    46,237       39,380         6,857        17.4%  W
                                                                  ---------    ---------     ---------

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES               140,180      119,096        21,084        17.7%  B

INCOME TAXES                                                         55,024       45,028         9,996        22.2%  W
                                                                  ---------    ---------     ---------

INCOME FROM CONTINUING OPERATIONS                                    85,156       74,068        11,088        15.0%  B

LOSS FROM DISCONTINUED OPERATIONS
        NET OF INCOME TAX BENEFIT                                   (58,421)      (1,428)      (56,993)     3991.1%  W
                                                                  ---------    ---------     ---------

NET INCOME                                                        $  26,735    $  72,640     $ (45,905)       63.2%  W
                                                                  =========    =========     =========

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC                   96,192       91,315         4,877         5.3%

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - DILUTED                 96,299       91,400         4,899         5.4%

EARNINGS PER WEIGHTED-AVERAGE COMMON SHARE OUTSTANDING
        Income From Continuing Operations - Basic                 $    0.89    $    0.81     $    0.08         9.9%  B
        Net Income - Basic                                        $    0.28    $    0.80     $   (0.52)       65.0%  W
        Income From Continuing Operations - Diluted               $    0.88    $    0.81     $    0.07         8.6%  B
        Net Income - Diluted                                      $    0.28    $    0.79     $   (0.51)       64.6%  W	

Certain prior-year amounts have been reclassified to conform to the 2005 presentation.
B -- Better
W -- Worse
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (unaudited)

(in thousands, except per share amounts)

                                                                     SIX MONTHS ENDED
                                                                         JUNE 30,              Increase (Decrease)
                                                                     2005         2004        Amount       Percent
                                                                  ---------    ---------     ---------     -------
OPERATING REVENUES
        Regulated electricity segment                             $ 995,682    $ 935,393     $  60,289         6.4%  B
        Marketing and trading segment                               160,429      198,840       (38,411)       19.3%  W
        Real estate segment                                         156,809      116,547        40,262        34.5%  B
        Other revenues                                               30,394       20,319        10,075        49.6%  B
                                                                  ---------    ---------     ---------
           Total                                                  1,343,314    1,271,099        72,215         5.7%  B
                                                                  ---------    ---------     ---------

OPERATING EXPENSES
        Regulated electricity segment purchased power and fuel      239,013      240,253        (1,240)        0.5%  B
        Marketing and trading segment purchased power and fuel      128,402      155,832       (27,430)       17.6%  B
        Operations and maintenance                                  308,181      275,981        32,200        11.7%  W
        Real estate segment operations                              125,069      109,510        15,559        14.2%  W
        Depreciation and amortization                               176,535      203,115       (26,580)       13.1%  B
        Taxes other than income taxes                                69,203       62,638         6,565        10.5%  W
        Other expenses                                               25,930       16,325         9,605        58.8%  W
                                                                  ---------    ---------     ---------
            Total                                                 1,072,333    1,063,654         8,679         0.8%  W
                                                                  ---------    ---------     ---------

OPERATING INCOME                                                    270,981      207,445        63,536        30.6%  B
                                                                  ---------    ---------     ---------

OTHER
        Allowance for equity funds used during construction           5,555        4,186         1,369        32.7%  B
        Other income                                                  9,487       47,330       (37,843)       80.0%  W
        Other expense                                                (8,232)      (9,316)        1,084        11.6%  B
                                                                  ---------    ---------     ---------
            Total                                                     6,810       42,200       (35,390)       83.9%  W
                                                                  ---------    ---------     ---------

INTEREST EXPENSE
        Interest charges                                             96,042       88,617         7,425         8.4%  W
        Capitalized interest                                         (6,833)      (4,180)       (2,653)       63.5%  B
                                                                  ---------    ---------     ---------
            Total                                                    89,209       84,437         4,772         5.7%  W
                                                                  ---------    ---------     ---------

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES               188,582      165,208        23,374        14.1%  B

INCOME TAXES                                                         73,685       60,439        13,246        21.9%  W
                                                                  ---------    ---------     ---------

INCOME FROM CONTINUING OPERATIONS                                   114,897      104,769        10,128         9.7%  B

LOSS FROM DISCONTINUED OPERATIONS
        NET OF INCOME TAX BENEFIT                                   (63,714)        (703)      (63,011)     8963.2%  W
                                                                  ---------    ---------     ---------

NET INCOME                                                        $  51,183    $ 104,066     $ (52,883)       50.8%  W
                                                                  =========    =========     =========

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC                   94,089       91,304         2,785         3.1%

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - DILUTED                 94,189       91,391         2,798         3.1%

EARNINGS PER WEIGHTED-AVERAGE COMMON SHARE OUTSTANDING
        Income From Continuing Operations - Basic                 $    1.22    $    1.15     $    0.07         6.1%  B
        Net Income - Basic                                        $    0.54    $    1.14     $   (0.60)       52.6%  W
        Income From Continuing Operations - Diluted               $    1.22    $    1.15     $    0.07         6.1%  B
        Net Income - Diluted                                      $    0.54    $    1.14     $   (0.60)       52.6%  W	

Certain prior-year amounts have been reclassified to conform to the 2005 presentation.
B -- Better
W -- Worse
  
Exhibit 99.8
PINNACLE WEST CAPITAL CORPORATION
QUARTERLY CONSOLIDATED STATISTICAL SUMMARY
GLOSSARY OF TERMS

Arizona Job Growth                                   Percentage growth over the prior
                                                     year in total non-farm payroll employment
                                                     for the state of Arizona, non-seasonally
                                                     adjusted.

Building Permits - Metro Phoenix                     The number of residential dwellings permitted to be
                                                     built by authorized agencies in Maricopa County,
                                                     Arizona. Single-family refers to detached buildings
                                                     intended to be occupied by one family each.
                                                     Multi-family permits represent the number of units
                                                     authorized to be built in condominium, townhouse and
                                                     apartment complexes.

Capacity Factor                                      The ratio of the average operating load of an electric
                                                     power generating unit for a period of time to the capacity
                                                     rating of the unit during that period.

Change in Mark-To-Market 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.

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(degrees)F for the
                                                     month. Average temperatures less than the base
                                                     temperature are ignored.

Degree-Days -- Heating                               A measure of temperatures designed to indicate the
                                                     amount of electricity demand for heating purposes.
                                                     Heating degree-days are calculated by summing the
                                                     difference between each day's actual average
                                                     temperature and a base temperature of 65(degrees)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.	

-2-

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               Total capacity required and economic, yet unavailable
Replaced for Native Load                             for retail customers and traditional wholesale
                                                     contracts due to scheduled or unscheduled outages. Measured
                                                     in megawatts per day.

Generation Production -- Coal                        Amount of net energy produced by coal-fueled generators.
                                                     Measured in gigawatt-hours.

Generation Production -- Gas/Oil/Other               Amount of net energy predominately produced by natural
                                                     gas and oil-fueled generators. A small amount of
                                                     energy from hydroelectric and solar power plants is
                                                     also included. Measured in gigawatt-hours.

Generation Production -- Nuclear                     Amount of net energy produced by nuclear-fueled generators.
                                                     Measured in gigawatt-hours.

Gigawatt-hour (GWH)                                  A unit of energy equivalent to 1,000 megawatt-hours or
                                                     1,000,000 kilowatt-hours.

Marketing and Trading Gross Margin - Pretax          Revenues from marketing and trading activities (other
                                                     than retail sales, traditional wholesale sales and
                                                     retail load hedge management) less the costs of the
                                                     related commodities, with mark-to-market gains or
                                                     losses, before income taxes.

Mark-To-Market                                       Adjustments to revenues or costs to recognize value
                                                     of sales and purchase contracts, for which the
                                                     commodities are scheduled for delivery in a
                                                     future period, at current forward wholesale prices.	

-3-

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.

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.	

-4-

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.

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
NEWS [PINNACLE WEST CAPITAL CORPORATION LOGO]
FOR IMMEDIATE RELEASE JULY 27, 2005
Media Contact: Alan Bunnell, (602) 250-3376 PAGE 1 OF 2 Analyst Contacts: Rebecca Hickman, (602) 250-5668 Lisa Malagon, (602) 250-5671 Web site: www.pinnaclewest.com
PINNACLE WEST REPORTS 2005 SECOND QUARTER RESULTS
On-Going Earnings Reflect Strong Growth
PHOENIX - Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended June 30, 2005, of $27 million, or $0.28 per diluted share of common stock. This result compares with net income of $73 million, or $0.79 per diluted share, for the same quarter a year ago.
On-going consolidated earnings in the second quarter of 2005 were $86 million, or $0.89 per share, compared with $54 million, or $0.59 per share in the comparable 2004 quarter.
On-going earnings for the second quarter of 2005 exclude an after-tax loss of $59 million, or $0.61 per share, related to the pending sale of the Silverhawk Power Station. On-going earnings for the 2004 second quarter exclude income after income taxes of $19 million, or $0.20 per share, related to the sale of the Company's interests in the Phoenix Suns, NAC International and Silverhawk.
"Customer growth continues to be one of the underlying fundamentals of our company's success," said Pinnacle West Chairman Bill Post, citing a service territory that is growing about 4 percent a year and three times the national average. "That growth, however, will require significant planning and investment on our part and continuing cooperation from our regulators." Post added that, looking forward, "the Company's earnings outlook for the year remains unchanged and on target" excluding the effects of the Silverhawk sale.
The quarter-to-quarter results were favorably affected by higher retail electricity revenues resulting from the company's first price increase in 14 years and higher retail sales volumes due to customer growth; lower depreciation expense; the absence of regulatory asset amortization; deferred fuel and purchased power costs; and improved results from the Company's real estate operations. These favorable factors were partially offset by an increase in operating costs primarily related to generation, customer service and benefits costs.
For more information on Pinnacle West's operating statistics and earnings, please visit www.pinnaclewest.com/financials.
PINNACLE WEST SECOND QUARTER EARNINGS JULY 27, 2005
PAGE 2 OF 2
CONFERENCE CALL
Pinnacle West invites interested parties to listen to the live webcast of management's conference call to discuss the Company's 2005 second quarter earnings and recent developments at 12 noon (ET) today, July 27, 2005. The webcast 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 reservation number 7452307. A replay of the call also will be available until 12 midnight (ET), Wednesday, August 3, 2005, by calling (800) 642-1687 in the U.S. and Canada or
(706) 645-9291 internationally and the same reservation number.
Pinnacle West is a Phoenix-based company with consolidated assets of about $10.7 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
-30-
This press release contains a forward-looking statement about Pinnacle West's 2005 earnings outlook. Neither Pinnacle West nor APS assumes any obligation to update this statement or to make any further statements on this issue, except as required by applicable law. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on this statement. 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 Exhibits 99.1 and 99.2 to Pinnacle West's and APS' Report on Form 10-Q for the fiscal quarter ended March 31, 2005, these factors include, but are not limited to:
state and federal regulatory and legislative decisions and actions, including by the Arizona Corporation Commission and the Federal Electric Regulatory Commission; the ongoing restructuring of the electric industry, including the introduction of retail electric competition in Arizona and decisions impacting wholesale competition; the outcome of regulatory, legislative and judicial proceedings relating to the restructuring; market prices for electricity and natural gas; power plant performance and outages; transmission outages and constraints; weather variations affecting local and regional customer energy usage; customer growth and energy usage; regional economic and market conditions, including the results of litigation and other proceedings resulting from the California energy situation, volatile purchased power and fuel costs and the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital and access to capital markets; the uncertainty that current credit ratings will remain in effect for any given period of time; our ability to compete successfully outside traditional regulated markets (including the wholesale market); the performance of our marketing and trading activities due to volatile market liquidity and any deteriorating counterparty credit and the use of derivative contracts in our business (including the interpretation of the subjective and complex accounting rules related to these contracts); changes in accounting principles generally accepted in the United States of America and the interpretation of those principles; the performance of the stock market and the changing interest rate environment, which affect the amount of required contributions to Pinnacle West's pension plan and APS' nuclear decommissioning trust funds, as well as the reported costs of providing pension and other postretirement benefits; technological developments in the electric industry; the strength of the real estate market in SunCor's market areas, which include Arizona, Idaho, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of Pinnacle West and APS.
 
PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 (unaudited)

(in thousands, except per share amounts)

                                                                    THREE MONTHS ENDED            SIX MONTHS ENDED
                                                                         JUNE 30,                     JUNE 30,
                                                                     2005         2004          2005           2004
                                                                  ---------     ---------     ---------      ---------
OPERATING REVENUES
        Regulated electricity segment                             $ 579,652     $ 519,929     $ 995,682      $ 935,393
        Marketing and trading segment                                71,172       110,156       160,429        198,840
        Real estate segment                                          84,753        66,084       156,809        116,547
        Other revenues                                               20,259         9,414        30,394         20,319
                                                                  ---------     ---------     ---------      ---------
           Total                                                    755,836       705,583     1,343,314      1,271,099
                                                                  ---------     ---------     ---------      ---------

OPERATING EXPENSES
        Regulated electricity segment purchased power and fuel      160,590       151,642       239,013        240,253
        Marketing and trading segment purchased power and fuel       57,593        88,067       128,402        155,832
        Operations and maintenance                                  153,097       138,595       308,181        275,981
        Real estate segment operations                               68,593        62,217       125,069        109,510
        Depreciation and amortization                                85,142       102,012       176,535        203,115
        Taxes other than income taxes                                34,638        32,308        69,203         62,638
        Other expenses                                               17,556         7,575        25,930         16,325
                                                                  ---------     ---------     ---------      ---------
            Total                                                   577,209       582,416     1,072,333      1,063,654
                                                                  ---------     ---------     ---------      ---------

OPERATING INCOME                                                    178,627       123,167       270,981        207,445
                                                                  ---------     ---------     ---------      ---------

OTHER
        Allowance for equity funds used during construction           2,952         2,184         5,555          4,186
        Other income                                                  8,684        36,496         9,487         47,330
        Other expense                                                (3,846)       (3,371)       (8,232)        (9,316)
                                                                  ---------     ---------     ---------      ---------
           Total                                                      7,790        35,309         6,810         42,200
                                                                  ---------     ---------     ---------      ---------

INTEREST EXPENSE
        Interest charges                                             49,781        42,061        96,042         88,617
        Capitalized interest                                         (3,544)       (2,681)       (6,833)        (4,180)
                                                                  ---------     ---------     ---------      ---------
           Total                                                     46,237        39,380        89,209         84,437
                                                                  ---------     ---------     ---------      ---------

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES               140,180       119,096       188,582        165,208

INCOME TAXES                                                         55,024        45,028        73,685         60,439
                                                                  ---------     ---------     ---------      ---------

INCOME FROM CONTINUING OPERATIONS                                    85,156        74,068       114,897        104,769

LOSS FROM DISCONTINUED OPERATIONS
        NET OF INCOME TAX BENEFIT                                   (58,421)       (1,428)      (63,714)          (703)
                                                                  ---------     ---------     ---------      ---------

NET INCOME                                                        $  26,735     $  72,640     $  51,183      $ 104,066
                                                                  =========     =========     =========      =========

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC                   96,192        91,315        94,089         91,304

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - DILUTED                 96,299        91,400        94,189         91,391

EARNINGS PER WEIGHTED-AVERAGE COMMON SHARE OUTSTANDING
        Income From Continuing Operations - Basic                 $    0.89     $    0.81     $    1.22      $    1.15
        Net Income - Basic                                        $    0.28     $    0.80     $    0.54      $    1.14
        Income From Continuing Operations - Diluted               $    0.88     $    0.81     $    1.22      $    1.15
        Net Income - Diluted                                      $    0.28     $    0.79     $    0.54      $    1.14	

Certain prior-year amounts have been reclassified to conform to the 2005 presentation.
 
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION - NET INCOME (GAAP MEASURE)
TO ON-GOING EARNINGS (NON-GAAP MEASURE)

                             THREE MONTHS ENDED           THREE MONTHS ENDED
                                June 30, 2005                June 30, 2004
                          -------------------------    ------------------------
                            Dollars                      Dollars
                          in Millions   Diluted EPS    in Millions  Diluted EPS
                          -----------   -----------    -----------  -----------
Net Income                  $  27         $ 0.28          $  73        $ 0.79
Adjustments:
    Gain on sale of
    limited partnership
    interest in
    Phoenix Suns               --             --            (21)        (0.23)
    Income from
    discontinued
    operations - NAC
    International              --             --             (1)        (0.01)
    Loss from
    discontinued
    operations -
    Silverhawk
    Power Station
    write-down                 55           0.57             --            --
    Loss from
    discontinued
    operations -
    Silverhawk
    Power Station
    operations                  4           0.04              3          0.04
                            -----         ------          -----        ------
On-going Earnings           $  86         $ 0.89          $  54        $ 0.59
                            =====         ======          =====        ======	

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

                                                                      THREE MONTHS ENDED            Pretax        After Tax
                                                                            JUNE 30,               Increase       Increase
                                                                      2005           2004         (Decrease)     (Decrease)
                                                                    ---------      ---------      ----------     ----------
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)                             $ 178,627      $ 123,167       $ 55,460       $ 33,703
Plus:
        Operations and maintenance                                    153,097        138,595         14,502          8,813
        Real estate segment operations                                 68,593         62,217          6,376          3,875
        Depreciation and amortization                                  85,142        102,012        (16,870)       (10,252)
        Taxes other than income taxes                                  34,638         32,308          2,330          1,416
        Other expenses                                                 17,556          7,575          9,981          6,065
        Marketing and trading segment purchased power and fuel         57,593         88,067        (30,474)       (18,519)
Less:
        Real estate segment revenues                                   84,753         66,084         18,669         11,345
        Other revenues                                                 20,259          9,414         10,845          6,591
        Marketing and trading segment revenues                         71,172        110,156        (38,984)       (23,691)
                                                                    ---------      ---------       --------       --------

REGULATED ELECTRICITY SEGMENT GROSS MARGIN                          $ 419,062      $ 368,287       $ 50,775       $ 30,856
                                                                    =========      =========       ========       ========

RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)                             $ 178,627      $ 123,167       $ 55,460       $ 33,703
Plus:
        Operations and maintenance                                    153,097        138,595         14,502          8,813
        Real estate segment operations                                 68,593         62,217          6,376          3,875
        Depreciation and amortization                                  85,142        102,012        (16,870)       (10,252)
        Taxes other than income taxes                                  34,638         32,308          2,330          1,416
        Other expenses                                                 17,556          7,575          9,981          6,065
        Regulated electricity segment purchased power and fuel        160,590        151,642          8,948          5,438
Less:
        Real estate segment revenues                                   84,753         66,084         18,669         11,345
        Other revenues                                                 20,259          9,414         10,845          6,591
        Regulated electricity segment revenues                        579,652        519,929         59,723         36,294
                                                                    ---------      ---------       --------       --------

MARKETING AND TRADING SEGMENT GROSS MARGIN                          $  13,579      $  22,089       $ (8,510)      $ (5,172)
                                                                    =========      =========       ========       ========	

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

                                                                        SIX MONTHS ENDED            Pretax       After Tax
                                                                            JUNE 30,               Increase       Increase
                                                                       2005          2004         (Decrease)     (Decrease)
                                                                    ---------      ---------      ----------     ----------
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)                             $ 270,981      $ 207,445       $ 63,536       $ 38,611
Plus:
        Operations and maintenance                                    308,181        275,981         32,200         19,568
        Real estate segment operations                                125,069        109,510         15,559          9,455
        Depreciation and amortization                                 176,535        203,115        (26,580)       (16,153)
        Taxes other than income taxes                                  69,203         62,638          6,565          3,990
        Other expenses                                                 25,930         16,325          9,605          5,837
        Marketing and trading segment purchased power and fuel        128,402        155,832        (27,430)       (16,669)
Less:
        Real estate segment revenues                                  156,809        116,547         40,262         24,467
        Other revenues                                                 30,394         20,319         10,075          6,123
        Marketing and trading segment revenues                        160,429        198,840        (38,411)       (23,342)
                                                                    ---------      ---------       --------       --------

REGULATED ELECTRICITY SEGMENT GROSS MARGIN                          $ 756,669      $ 695,140       $ 61,529       $ 37,391
                                                                    =========      =========       ========       ========

RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)                             $ 270,981      $ 207,445       $ 63,536       $ 38,611
Plus:
        Operations and maintenance                                    308,181        275,981         32,200         19,568
        Real estate segment operations                                125,069        109,510         15,559          9,455
        Depreciation and amortization                                 176,535        203,115        (26,580)       (16,153)
        Taxes other than income taxes                                  69,203         62,638          6,565          3,990
        Other expenses                                                 25,930         16,325          9,605          5,837
        Regulated electricity segment purchased power and fuel        239,013        240,253         (1,240)          (754)
Less:
        Real estate segment revenues                                  156,809        116,547         40,262         24,467
        Other revenues                                                 30,394         20,319         10,075          6,123
        Regulated electricity segment revenues                        995,682        935,393         60,289         36,638
                                                                    ---------      ---------       --------       --------

MARKETING AND TRADING SEGMENT GROSS MARGIN                          $  32,027      $  43,008       $(10,981)      $ (6,674)
                                                                    =========      =========       ========       ========