Table of Contents

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, 2004 
PINNACLE WEST CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)
 	 	 	 	 	
Arizona	 	1-8962	 	86-0512431	

(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification Number)	
 	 	 	
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona	 	85072-3999	

(Address of principal executive offices)	 	(Zip Code)	
 	 	 	
(602) 250-1000

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

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

TABLE OF CONTENTS

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

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

Exhibit	 	 	
No.
	 	Description
	
99.1	 	Pinnacle West Capital Corporation (the “Company”) 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, 2004 and 2003.	
 	 	 	
99.3	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.	
 	 	 	
99.4	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.	
 	 	 	
99.5	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2002.	
 	 	 	
99.6	 	Pinnacle West Capital Corporation consolidated statistics by quarter for 2001.	
 	 	 	
99.7	 	Pinnacle West Capital Corporation earnings variance explanations for periods ended June 30, 2004 and 2003 and condensed consolidated statements of income for the three months and six months ended June 30, 2004 and 2003.	
 	 	 	
99.8	 	Glossary of Terms.	
 	 	 	
99.9	 	Earnings News Release issued on July 29, 2004.	
Item 9. Regulation FD Disclosure
     The Company is providing quarterly consolidated statistical summaries, earnings variance explanations, and a glossary of relevant terms (collectively, “Information”) to help interested parties better understand its business. This Information is concurrently being posted to the Company’s website at www.pinnaclewest.com. The Information may not represent all of the factors that could affect the Company’s operating or financial results for various periods. Some of the Information is preliminary in nature and could be subject to significant adjustment. Some of the Information is based on information received from third parties and may contain inaccuracies. The Company is not responsible for any such inaccuracies. Although the Company may update or correct the Information if it is aware that such Information has been 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.

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Item 12. Results of Operations and Financial Condition
     Certain of the Information relates to the Company’s results of operations for its fiscal quarter ended June 30, 2004. This Information is attached hereto as Exhibits 99.2, 99.3, and 99.7.
     On July 29, 2004, the Company issued a press release regarding its financial results for its fiscal quarter ended June 30, 2004. A copy of the press release is attached hereto as Exhibit 99.9.
     The information in Exhibits 99.2, 99.3, 99.7 and 99.9 of this report relating to the Company’s financial results for its fiscal quarter ended June 30, 2004 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 liability 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. The non-GAAP financial measures, which we describe as “on-going earnings” and “on-going earnings per share,” exclude the after-tax gain on the sale of our interest in the Phoenix Suns from consolidated net income. Exhibit 99.9 reconciles each of these non-GAAP financial measures to 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

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

 	 	PINNACLE WEST CAPITAL CORPORATION
(Registrant)	
 	 	 	 	 	
Dated: July 29, 2004	 	By:	 	/s/ Barbara M. Gomez	

	 	 	 	Barbara M. Gomez
Vice President and Treasurer	
3

Exhibit 99.1
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003
List of Contents
2004 Second-Quarter Summary
2004 Year-to-Date
2003 by Quarter
2002 by Quarter
2001 by Quarter
Quarters may not sum to totals due to rounding.
The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2004Q2QuarStatsGloss.pdf
This statistical data may be graphed in various quarterly or annual comparisons
using the “Interactive Charts” tool on the Pinnacle West website at:
http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/landing.html

 

Exhibit 99.2
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	Arizona Public Service	 	$	54	 	 	$	43	 	 	$	11	 	 	$	87	 	 	$	59	 	 	$	28	 	
 	2	 	 	Pinnacle West Energy	 	 	(12	)	 	 	2	 	 	 	(14	)	 	 	(30	)	 	 	8	 	 	 	(38	)	
 	3	 	 	APS Energy Services	 	 	1	 	 	 	5	 	 	 	(4	)	 	 	3	 	 	 	13	 	 	 	(10	)	
 	4	 	 	SunCor	 	 	4	 	 	 	2	 	 	 	2	 	 	 	5	 	 	 	4	 	 	 	1	 	
 	5	 	 	El Dorado	 	 	36	 	 	 	2	 	 	 	34	 	 	 	36	 	 	 	5	 	 	 	31	 	
 	6	 	 	Parent Company	 	 	(12	)	 	 	1	 	 	 	(13	)	 	 	—	 	 	 	(14	)	 	 	14	 	

 	 	 	 	

 	 	 	 	
 	 	
 	7	 	 	Income From Continuing Operations	 	 	71	 	 	 	55	 	 	 	16	 	 	 	101	 	 	 	75	 	 	 	26	 	
 	8a	 	 	Income From Discontinued Operations - Net of Tax	 	 	—	 	 	 	1	 	 	 	(1	)	 	 	1	 	 	 	6	 	 	 	(5	)	
 	8b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	9	 	 	Net Income	 	$	71	 	 	$	56	 	 	$	15	 	 	$	102	 	 	$	81	 	 	$	21	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	EARNINGS PER SHARE BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	Arizona Public Service	 	$	0.59	 	 	$	0.47	 	 	$	0.12	 	 	$	0.96	 	 	$	0.65	 	 	$	0.31	 	
 	11	 	 	Pinnacle West Energy	 	 	(0.13	)	 	 	0.02	 	 	 	(0.15	)	 	 	(0.33	)	 	 	0.08	 	 	 	(0.41	)	
 	12	 	 	APS Energy Services	 	 	0.01	 	 	 	0.06	 	 	 	(0.05	)	 	 	0.03	 	 	 	0.14	 	 	 	(0.11	)	
 	13	 	 	SunCor	 	 	0.04	 	 	 	0.02	 	 	 	0.02	 	 	 	0.06	 	 	 	0.04	 	 	 	0.02	 	
 	14	 	 	El Dorado	 	 	0.39	 	 	 	0.02	 	 	 	0.37	 	 	 	0.39	 	 	 	0.05	 	 	 	0.34	 	
 	15	 	 	Parent Company	 	 	(0.12	)	 	 	0.01	 	 	 	(0.13	)	 	 	(0.01	)	 	 	(0.14	)	 	 	0.13	 	

 	 	 	 	

 	 	 	 	
 	 	
 	16	 	 	Income From Continuing Operations	 	 	0.78	 	 	 	0.60	 	 	 	0.18	 	 	 	1.10	 	 	 	0.82	 	 	 	0.28	 	
 	17a	 	 	Income From Discontinued Operations - Net of Tax	 	 	—	 	 	 	0.01	 	 	 	(0.01	)	 	 	0.01	 	 	 	0.07	 	 	 	(0.06	)	
 	17b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	18	 	 	Net Income	 	$	0.78	 	 	$	0.61	 	 	$	0.17	 	 	$	1.11	 	 	$	0.89	 	 	$	0.22	 	

 	 	 	 	

 	 	 	 	
 	 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	31.68	 	 	$	29.95	 	 	$	1.73	 	 	$	31.68	 	 	$	29.95	 	 	$	1.73	 	
 	 	 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	Average	 	 	91,400	 	 	 	91,450	 	 	 	(50	)	 	 	91,391	 	 	 	91,402	 	 	 	(11	)	
 	21	 	 	End of Period	 	 	91,309	 	 	 	91,262	 	 	 	47	 	 	 	91,309	 	 	 	91,262	 	 	 	47	 	

See Glossary of Terms.	 	Page 1 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	REGULATED ELECTRICITY SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	Residential	 	$	245	 	 	$	233	 	 	$	12	 	 	$	434	 	 	$	401	 	 	$	33	 	
 	23	 	 	Business	 	 	257	 	 	 	251	 	 	 	6	 	 	 	468	 	 	 	447	 	 	 	21	 	

 	 	 	 	

 	 	 	 	
 	 	
 	24	 	 	Total retail	 	 	502	 	 	 	484	 	 	 	18	 	 	 	902	 	 	 	848	 	 	 	54	 	
 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	Traditional contracts	 	 	4	 	 	 	4	 	 	 	—	 	 	 	7	 	 	 	7	 	 	 	—	 	
 	26	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	27	 	 	Transmission for others	 	 	8	 	 	 	5	 	 	 	3	 	 	 	16	 	 	 	11	 	 	 	5	 	
 	28	 	 	Other miscellaneous services	 	 	6	 	 	 	6	 	 	 	—	 	 	 	10	 	 	 	12	 	 	 	(2	)	

 	 	 	 	

 	 	 	 	
 	 	
 	29	 	 	Total regulated electricity	 	 	520	 	 	 	499	 	 	 	21	 	 	 	935	 	 	 	878	 	 	 	57	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	MARKETING AND TRADING SEGMENT	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	Generation sales other than native load	 	 	30	 	 	 	20	 	 	 	10	 	 	 	40	 	 	 	64	 	 	 	(24	)	
 	31	 	 	Realized margins on electricity trading (a)	 	 	12	 	 	 	5	 	 	 	7	 	 	 	17	 	 	 	14	 	 	 	3	 	
 	32	 	 	Other delivered electricity (a)	 	 	71	 	 	 	78	 	 	 	(7	)	 	 	138	 	 	 	150	 	 	 	(12	)	

 	 	 	 	

 	 	 	 	
 	 	
 	33	 	 	Total delivered marketing and trading	 	 	113	 	 	 	103	 	 	 	10	 	 	 	195	 	 	 	228	 	 	 	(33	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	OTHER MARKETING AND TRADING	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	2	 	 	 	(2	)	 	 	4	 	 	 	—	 	 	 	(4	)	 	 	4	 	
 	35	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(4	)	 	 	1	 	 	 	(5	)	 	 	1	 	 	 	(5	)	 	 	6	 	
 	36	 	 	Change in mark-to-market for future-period deliveries	 	 	4	 	 	 	(1	)	 	 	5	 	 	 	8	 	 	 	(1	)	 	 	9	 	

 	 	 	 	

 	 	 	 	
 	 	
 	37	 	 	Total other marketing and trading	 	 	2	 	 	 	(2	)	 	 	4	 	 	 	9	 	 	 	(10	)	 	 	19	 	

 	 	 	 	

 	 	 	 	
 	 	
 	38	 	 	Total marketing and trading	 	 	115	 	 	 	101	 	 	 	14	 	 	 	204	 	 	 	218	 	 	 	(14	)	

 	 	 	 	

 	 	 	 	
 	 	
 	39	 	 	Total operating electric revenues	 	$	635	 	 	$	600	 	 	$	35	 	 	$	1,139	 	 	$	1,096	 	 	$	43	 	

 	 	 	 	

 	 	 	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $4 million was transferred to “realized” for the second quarter of 2004. Lines 31, 32 and 34 include amounts totaling $4 million of realized gain for the second quarter of 2004.	

See Glossary of Terms.	 	Page 2 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	Residential	 	 	2,722	 	 	 	2,543	 	 	 	179	 	 	 	5,132	 	 	 	4,647	 	 	 	485	 	
 	41	 	 	Business	 	 	3,602	 	 	 	3,450	 	 	 	152	 	 	 	6,653	 	 	 	6,299	 	 	 	354	 	

 	 	 	 	

 	 	 	 	
 	 	
 	42	 	 	Total retail	 	 	6,324	 	 	 	5,993	 	 	 	331	 	 	 	11,785	 	 	 	10,946	 	 	 	839	 	
 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	Traditional contracts	 	 	195	 	 	 	131	 	 	 	64	 	 	 	333	 	 	 	261	 	 	 	72	 	
 	44	 	 	Retail load hedge management	 	 	731	 	 	 	205	 	 	 	526	 	 	 	900	 	 	 	314	 	 	 	586	 	

 	 	 	 	

 	 	 	 	
 	 	
 	45	 	 	Total regulated electricity	 	 	7,250	 	 	 	6,329	 	 	 	921	 	 	 	13,018	 	 	 	11,521	 	 	 	1,497	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	Generation sales other than native load	 	 	705	 	 	 	476	 	 	 	229	 	 	 	1,063	 	 	 	1,468	 	 	 	(405	)	
 	47	 	 	Electricity trading	 	 	5,243	 	 	 	4,936	 	 	 	307	 	 	 	9,441	 	 	 	10,010	 	 	 	(569	)	
 	48	 	 	Other delivered electricity	 	 	1,195	 	 	 	1,386	 	 	 	(191	)	 	 	2,335	 	 	 	2,692	 	 	 	(357	)	

 	 	 	 	

 	 	 	 	
 	 	
 	49	 	 	Total delivered marketing and trading	 	 	7,143	 	 	 	6,798	 	 	 	345	 	 	 	12,839	 	 	 	14,170	 	 	 	(1,331	)	

 	 	 	 	

 	 	 	 	
 	 	
 	50	 	 	Total electric sales	 	 	14,393	 	 	 	13,127	 	 	 	1,266	 	 	 	25,857	 	 	 	25,691	 	 	 	166	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 3 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	Generation sales other than native load	 	$	2	 	 	$	1	 	 	$	1	 	 	$	5	 	 	$	4	 	 	$	1	 	
 	52	 	 	Other electricity marketing and trading (a)	 	 	17	 	 	 	21	 	 	 	(4	)	 	 	28	 	 	 	45	 	 	 	(17	)	

 	 	 	 	

 	 	 	 	
 	 	
 	53	 	 	Total electricity	 	 	19	 	 	 	22	 	 	 	(3	)	 	 	33	 	 	 	49	 	 	 	(16	)	
 	54	 	 	Other commodities (a)	 	 	2	 	 	 	(2	)	 	 	4	 	 	 	—	 	 	 	(4	)	 	 	4	 	

 	 	 	 	

 	 	 	 	
 	 	
 	55	 	 	Total realized margin	 	 	21	 	 	 	20	 	 	 	1	 	 	 	33	 	 	 	45	 	 	 	(12	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	Electricity (a)	 	 	(2	)	 	 	(2	)	 	 	—	 	 	 	(1	)	 	 	(8	)	 	 	7	 	
 	57	 	 	Other commodities (a)	 	 	(2	)	 	 	3	 	 	 	(5	)	 	 	2	 	 	 	3	 	 	 	(1	)	
 	58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	59	 	 	Subtotal	 	 	(4	)	 	 	1	 	 	 	(5	)	 	 	1	 	 	 	(5	)	 	 	6	 	

 	 	 	 	

 	 	 	 	
 	 	
 	60	 	 	Total current period effects (b)	 	 	17	 	 	 	21	 	 	 	(4	)	 	 	34	 	 	 	40	 	 	 	(6	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	Electricity	 	 	3	 	 	 	1	 	 	 	2	 	 	 	7	 	 	 	(4	)	 	 	11	 	
 	62	 	 	Other commodities	 	 	1	 	 	 	(2	)	 	 	3	 	 	 	1	 	 	 	3	 	 	 	(2	)	

 	 	 	 	

 	 	 	 	
 	 	
 	63	 	 	Subtotal	 	 	4	 	 	 	(1	)	 	 	5	 	 	 	8	 	 	 	(1	)	 	 	9	 	

 	 	 	 	

 	 	 	 	
 	 	
 	64	 	 	Total gross margin	 	$	21	 	 	$	20	 	 	$	1	 	 	$	42	 	 	$	39	 	 	$	3	 	

 	 	 	 	

 	 	 	 	
 	 	
Future Marketing and Trading Mark-to-Market Realization
As of June 30, 2004, Pinnacle West had accumulated mark-to-market net gains of $33 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2004, $3 million; 2005, $11 million; 2006, $4 million and thereafter, $15 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the second quarter of 2004. A $2 million realized gain is included in the $17 million on line 52 for the second quarter of 2004.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	

See Glossary of Terms.	 	Page 4 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (continued) (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	20	 	 	$	21	 	 	$	(1	)	 	$	40	 	 	$	38	 	 	$	2	 	
 	66	 	 	Natural gas	 	 	—	 	 	 	3	 	 	 	(3	)	 	 	1	 	 	 	5	 	 	 	(4	)	
 	67	 	 	Coal	 	 	—	 	 	 	(1	)	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	2	 	
 	68	 	 	Emission allowances	 	 	1	 	 	 	(3	)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	4	 	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	(1	)	

 	 	 	 	

 	 	 	 	
 	 	
 	70	 	 	Total gross margin	 	$	21	 	 	$	20	 	 	$	1	 	 	$	42	 	 	$	39	 	 	$	3	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(2	)	 	$	2	 	
 	72	 	 	Other marketing and trading	 	 	7	 	 	 	4	 	 	 	3	 	 	 	19	 	 	 	8	 	 	 	11	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	Generation sales other than native load	 	 	3	 	 	 	1	 	 	 	2	 	 	 	6	 	 	 	7	 	 	 	(1	)	
 	74	 	 	Other marketing and trading	 	 	(3	)	 	 	3	 	 	 	(6	)	 	 	(11	)	 	 	3	 	 	 	(14	)	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	1	 	
 	76	 	 	Other marketing and trading	 	 	10	 	 	 	—	 	 	 	10	 	 	 	20	 	 	 	—	 	 	 	20	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	Other marketing and trading	 	 	4	 	 	 	12	 	 	 	(8	)	 	 	8	 	 	 	24	 	 	 	(16	)	

 	 	 	 	

 	 	 	 	
 	 	
 	78	 	 	Total gross margin before income taxes	 	$	21	 	 	$	20	 	 	$	1	 	 	$	42	 	 	$	39	 	 	$	3	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 5 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
	
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Residential	 	 	852,594	 	 	 	821,331	 	 	 	31,263	 	 	 	854,174	 	 	 	824,634	 	 	 	29,540	 	
 	80	 	 	Business	 	 	106,517	 	 	 	102,601	 	 	 	3,916	 	 	 	106,009	 	 	 	102,300	 	 	 	3,709	 	

 	 	 	 	

 	 	 	 	
 	 	
 	81	 	 	Total	 	 	959,111	 	 	 	923,932	 	 	 	35,179	 	 	 	960,183	 	 	 	926,934	 	 	 	33,249	 	
 	82	 	 	Wholesale customers	 	 	82	 	 	 	66	 	 	 	16	 	 	 	82	 	 	 	66	 	 	 	16	 	

 	 	 	 	

 	 	 	 	
 	 	
 	83	 	 	Total customers	 	 	959,193	 	 	 	923,998	 	 	 	35,195	 	 	 	960,265	 	 	 	927,000	 	 	 	33,265	 	

 	 	 	 	

 	 	 	 	
 	 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.8	%	 	 	3.1	%	 	 	0.7	%	 	 	3.6	%	 	 	3.2	%	 	 	0.4	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,745	 	 	 	2,522	 	 	 	223	 	 	 	5,128	 	 	 	4,765	 	 	 	363	 	
 	86	 	 	Business	 	 	3,621	 	 	 	3,495	 	 	 	126	 	 	 	6,628	 	 	 	6,370	 	 	 	258	 	

 	 	 	 	

 	 	 	 	
 	 	
 	87	 	 	Total	 	 	6,366	 	 	 	6,017	 	 	 	349	 	 	 	11,756	 	 	 	11,135	 	 	 	621	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	3,193	 	 	 	3,096	 	 	 	97	 	 	 	6,008	 	 	 	5,635	 	 	 	373	 	
 	89	 	 	Business	 	 	33,816	 	 	 	33,625	 	 	 	191	 	 	 	62,759	 	 	 	61,574	 	 	 	1,185	 	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	3,220	 	 	 	3,071	 	 	 	149	 	 	 	6,004	 	 	 	5,778	 	 	 	226	 	
 	91	 	 	Business	 	 	33,990	 	 	 	34,064	 	 	 	(74	)	 	 	62,519	 	 	 	62,268	 	 	 	251	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	5,608	 	 	 	5,571	 	 	 	37	 	 	 	5,608	 	 	 	5,571	 	 	 	37	 	

See Glossary of Terms.	 	Page 6 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
		
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	 	
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	Nuclear	 	 	1,860	 	 	 	2,047	 	 	 	(187	)	 	 	4,008	 	 	 	4,353	 	 	 	(345	)	 	
 	94	 	 	Coal	 	 	3,035	 	 	 	2,824	 	 	 	211	 	 	 	5,922	 	 	 	5,594	 	 	 	328	 	 	
 	95	 	 	Gas, oil and other	 	 	1,361	 	 	 	1,572	 	 	 	(211	)	 	 	1,724	 	 	 	2,860	 	 	 	(1,136	)	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	96	 	 	Total	 	 	6,256	 	 	 	6,443	 	 	 	(187	)	 	 	11,654	 	 	 	12,807	 	 	 	(1,153	)	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	Firm load	 	 	1,533	 	 	 	606	 	 	 	927	 	 	 	2,234	 	 	 	594	 	 	 	1,640	 	 	
 	98	 	 	Marketing and trading	 	 	7,169	 	 	 	6,527	 	 	 	642	 	 	 	12,676	 	 	 	13,016	 	 	 	(340	)	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	99	 	 	Total	 	 	8,702	 	 	 	7,133	 	 	 	1,569	 	 	 	14,910	 	 	 	13,610	 	 	 	1,300	 	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	100	 	 	Total energy sources	 	 	14,958	 	 	 	13,576	 	 	 	1,382	 	 	 	26,564	 	 	 	26,417	 	 	 	147	 	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	Nuclear	 	 	77	%	 	 	86	%	 	 	(9	)%	 	 	82	%	 	 	92	%	 	 	(10	)%	 	
 	102	 	 	Coal	 	 	81	%	 	 	75	%	 	 	6	%	 	 	79	%	 	 	75	%	 	 	4	%	 	
 	103	 	 	Gas, oil and other	 	 	20	%	 	 	31	%	 	 	(11	)%	 	 	13	%	 	 	29	%	 	 	(16	)%	 	
 	104	 	 	System average	 	 	50	%	 	 	59	%	 	 	(9	)%	 	 	47	%	 	 	59	%	 	 	(12	)%	 	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Nuclear	 	 	233	 	 	 	136	 	 	 	97	 	 	 	184	 	 	 	84	 	 	 	100	 	 	
 	106	 	 	Coal	 	 	153	 	 	 	254	 	 	 	(101	)	 	 	151	 	 	 	273	 	 	 	(122	)	 	
 	107	 	 	Gas	 	 	47	 	 	 	148	 	 	 	(101	)	 	 	48	 	 	 	169	 	 	 	(121	)	 	
 	108	 	 	Total	 	 	433	 	 	 	538	 	 	 	(105	)	 	 	383	 	 	 	526	 	 	 	(143	)	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	18.59	 	 	$	16.80	 	 	$	1.79	 	 	$	15.16	 	 	$	16.80	 	 	$	(1.64	)	 	

See Glossary of Terms.	 	Page 7 of  8	

 

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2004 and 2003

 	 	 	 	 	 	3 Mo. Ended June 30
	 	6 Mo. Ended June 30
		
Line
	 	 	 	2004
	 	2003
	 	Incr (Decr)
	 	2004
	 	2003
	 	Incr (Decr)
	 	
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	Palo Verde	 	$	50.36	 	 	$	48.88	 	 	$	1.48	 	 	$	47.05	 	 	$	49.27	 	 	$	(2.22	)	 	
 	111	 	 	SP15	 	$	54.73	 	 	$	50.73	 	 	$	4.00	 	 	$	51.55	 	 	$	52.54	 	 	$	(0.99	)	 	
 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	Palo Verde	 	$	33.74	 	 	$	25.48	 	 	$	8.26	 	 	$	33.70	 	 	$	30.79	 	 	$	2.91	 	 	
 	113	 	 	SP15	 	$	37.32	 	 	$	28.27	 	 	$	9.05	 	 	$	37.11	 	 	$	33.99	 	 	$	3.12	 	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	Cooling degree-days	 	 	1,598	 	 	 	1,550	 	 	 	48	 	 	 	1,871	 	 	 	1,626	 	 	 	245	 	 	
 	115	 	 	Heating degree-days	 	 	11	 	 	 	17	 	 	 	(6	)	 	 	563	 	 	 	366	 	 	 	197	 	 	
 	116	 	 	Average humidity	 	 	19	%	 	 	18	%	 	 	1	%	 	 	29	%	 	 	31	%	 	 	(2	)%	 	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	Cooling degree-days	 	 	1,491	 	 	 	1,491	 	 	 	—	 	 	 	1,571	 	 	 	1,571	 	 	 	—	 	 	
 	118	 	 	Heating degree-days	 	 	36	 	 	 	36	 	 	 	—	 	 	 	557	 	 	 	557	 	 	 	—	 	 	
 	119	 	 	Average humidity	 	 	24	%	 	 	24	%	 	 	0	%	 	 	33	%	 	 	33	%	 	 	0	%	 	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	Single-family	 	 	8,895	 	 	 	6,990	 	 	 	1,905	 	 	 	18,940	 	 	 	15,020	 	 	 	3,920	 	 	
 	121	 	 	Multi-family	 	 	981	 	 	 	801	 	 	 	180	 	 	 	2,738	 	 	 	1,664	 	 	 	1,074	 	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	122	 	 	Total	 	 	9,876	 	 	 	7,791	 	 	 	2,085	 	 	 	21,678	 	 	 	16,684	 	 	 	4,994	 	 	

 	 	 	 	

 	 	 	 	
 	 	 	
 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	Payroll job growth (% over prior year)	 	 	2.5	%	 	 	0.6	%	 	 	1.9	%	 	 	2.4	%	 	 	0.9	%	 	 	1.5	%	 	
 	124	 	 	Unemployment rate (%, seasonally adjusted)	 	 	5.3	%	 	 	5.9	%	 	 	(0.6	)%	 	 	5.2	%	 	 	5.9	%	 	 	(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	
 		
(d)	 	The economic indicators reflect latest available data through periods ending May 2004.	

See Glossary of Terms.	 	Page 8 of  8	

Exhibit 99.3
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	 	$	33	 	 	$	54	 	 	 	 	 	 	 	 	 	 	$	87	 	 	$	28	 	
 	2	 	 	Pinnacle West Energy	 	 	(18	)	 	 	(12	)	 	 	 	 	 	 	 	 	 	 	(30	)	 	 	(38	)	
 	3	 	 	APS Energy Services	 	 	2	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	(10	)	
 	4	 	 	SunCor	 	 	2	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	5	 	 	 	1	 	
 	5	 	 	El Dorado	 	 	—	 	 	 	36	 	 	 	 	 	 	 	 	 	 	 	36	 	 	 	31	 	
 	6	 	 	Parent Company	 	 	11	 	 	 	(12	)	 	 	 	 	 	 	 	 	 	 	—	 	 	 	14	 	

 	 	 	 	

 	 	 	 	
 	 	
 	7	 	 	Income From Continuing Operations	 	 	30	 	 	 	71	 	 	 	—	 	 	 	—	 	 	 	101	 	 	 	26	 	
 	8a	 	 	Income From Discontinued Operations - Net of Tax	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	(5	)	
 	8b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	9	 	 	Net Income	 	$	30	 	 	$	71	 	 	$	—	 	 	$	—	 	 	$	102	 	 	$	21	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	EARNINGS PER SHARE BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	Arizona Public Service	 	$	0.37	 	 	$	0.59	 	 	 	 	 	 	 	 	 	 	$	0.96	 	 	$	0.31	 	
 	11	 	 	Pinnacle West Energy	 	 	(0.20	)	 	 	(0.13	)	 	 	 	 	 	 	 	 	 	 	(0.33	)	 	 	(0.41	)	
 	12	 	 	APS Energy Services	 	 	0.02	 	 	 	0.01	 	 	 	 	 	 	 	 	 	 	 	0.03	 	 	 	(0.11	)	
 	13	 	 	SunCor	 	 	0.02	 	 	 	0.04	 	 	 	 	 	 	 	 	 	 	 	0.06	 	 	 	0.02	 	
 	14	 	 	El Dorado	 	 	—	 	 	 	0.39	 	 	 	 	 	 	 	 	 	 	 	0.39	 	 	 	0.34	 	
 	15	 	 	Parent Company	 	 	0.12	 	 	 	(0.12	)	 	 	 	 	 	 	 	 	 	 	(0.01	)	 	 	0.13	 	

 	 	 	 	

 	 	 	 	
 	 	
 	16	 	 	Income From Continuing Operations	 	 	0.33	 	 	 	0.78	 	 	 	—	 	 	 	—	 	 	 	1.10	 	 	 	0.28	 	
 	17a	 	 	Income From Discontinued Operations - Net of Tax	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	0.01	 	 	 	(0.06	)	
 	17b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	18	 	 	Net Income	 	$	0.33	 	 	$	0.78	 	 	$	—	 	 	$	—	 	 	$	1.11	 	 	$	0.22	 	

 	 	 	 	

 	 	 	 	
 	 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	31.19	 	 	$	31.68	 	 	 	 	 	 	 	 	 	 	$	31.68	 	 	$	1.73	 	
 	 	 	 	COMMON SHARES OUTSTANDING - DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	Average	 	 	91,376	 	 	 	91,400	 	 	 	 	 	 	 	 	 	 	 	91,391	 	 	 	(11	)	
 	21	 	 	End of Period	 	 	91,310	 	 	 	91,309	 	 	 	 	 	 	 	 	 	 	 	91,309	 	 	 	47	 	
 	 	 	
See Glossary of Terms.	 	Page 1 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC OPERATING REVENUES (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	Residential	 	$	189	 	 	$	245	 	 	 	 	 	 	 	 	 	 	$	434	 	 	$	33	 	
 	23	 	 	Business	 	 	211	 	 	 	257	 	 	 	 	 	 	 	 	 	 	 	468	 	 	 	21	 	

 	 	 	 	

 	 	 	 	
 	 	
 	24	 	 	Total retail	 	 	400	 	 	 	502	 	 	 	—	 	 	 	—	 	 	 	902	 	 	 	54	 	
 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	—	 	
 	26	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	
 	27	 	 	Transmission for others	 	 	8	 	 	 	8	 	 	 	 	 	 	 	 	 	 	 	16	 	 	 	5	 	
 	28	 	 	Other miscellaneous services	 	 	4	 	 	 	6	 	 	 	 	 	 	 	 	 	 	 	10	 	 	 	(2	)	

 	 	 	 	

 	 	 	 	
 	 	
 	29	 	 	Total regulated electricity	 	 	415	 	 	 	520	 	 	 	—	 	 	 	—	 	 	 	935	 	 	 	57	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	Generation sales other than native load	 	 	10	 	 	 	30	 	 	 	 	 	 	 	 	 	 	 	40	 	 	 	(24	)	
 	31	 	 	Realized margins on electricity trading (a)	 	 	5	 	 	 	12	 	 	 	 	 	 	 	 	 	 	 	17	 	 	 	3	 	
 	32	 	 	Other delivered electricity (a)	 	 	66	 	 	 	71	 	 	 	 	 	 	 	 	 	 	 	138	 	 	 	(12	)	

 	 	 	 	

 	 	 	 	
 	 	
 	33	 	 	Total delivered marketing and trading	 	 	81	 	 	 	113	 	 	 	—	 	 	 	—	 	 	 	195	 	 	 	(33	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(2	)	 	 	2	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	4	 	
 	35	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	1	 	 	 	(4	)	 	 	 	 	 	 	 	 	 	 	1	 	 	 	6	 	
 	36	 	 	Change in mark-to-market for future-period deliveries	 	 	8	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	9	 	

 	 	 	 	

 	 	 	 	
 	 	
 	37	 	 	Total other marketing and trading	 	 	7	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	9	 	 	 	19	 	

 	 	 	 	

 	 	 	 	
 	 	
 	38	 	 	Total marketing and trading	 	 	88	 	 	 	115	 	 	 	—	 	 	 	—	 	 	 	204	 	 	 	(14	)	

 	 	 	 	

 	 	 	 	
 	 	
 	39	 	 	Total electric operating revenues	 	$	503	 	 	$	635	 	 	$	—	 	 	$	—	 	 	$	1,339	 	 	$	43	 	

 	 	 	 	

 	 	 	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $4 million was transferred to “realized” for the second quarter of 2004. Lines 31, 32 and 34 include amounts totaling $4 million of realized gain for the second quarter of 2004.	
 	 	 	
See Glossary of Terms.	 	Page 2 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	Residential	 	 	2,410	 	 	 	2,722	 	 	 	 	 	 	 	 	 	 	 	5,132	 	 	 	485	 	
 	41	 	 	Business	 	 	3,051	 	 	 	3,602	 	 	 	 	 	 	 	 	 	 	 	6,653	 	 	 	354	 	

 	 	 	 	

 	 	 	 	
 	 	
 	42	 	 	Total retail	 	 	5,461	 	 	 	6,324	 	 	 	—	 	 	 	—	 	 	 	11,785	 	 	 	839	 	
 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	Traditional contracts	 	 	138	 	 	 	195	 	 	 	 	 	 	 	 	 	 	 	333	 	 	 	72	 	
 	44	 	 	Retail load hedge management	 	 	169	 	 	 	731	 	 	 	 	 	 	 	 	 	 	 	900	 	 	 	586	 	

 	 	 	 	

 	 	 	 	
 	 	
 	45	 	 	Total regulated electricity	 	 	5,768	 	 	 	7,250	 	 	 	—	 	 	 	—	 	 	 	13,018	 	 	 	1,497	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	Generation sales other than native load	 	 	358	 	 	 	705	 	 	 	 	 	 	 	 	 	 	 	1,063	 	 	 	(405	)	
 	47	 	 	Electricity trading	 	 	4,198	 	 	 	5,243	 	 	 	 	 	 	 	 	 	 	 	9,441	 	 	 	(569	)	
 	48	 	 	Other delivered electricity	 	 	1,140	 	 	 	1,195	 	 	 	 	 	 	 	 	 	 	 	2,335	 	 	 	(357	)	

 	 	 	 	

 	 	 	 	
 	 	
 	49	 	 	Total delivered marketing and trading	 	 	5,696	 	 	 	7,143	 	 	 	—	 	 	 	—	 	 	 	12,839	 	 	 	(1,331	)	

 	 	 	 	

 	 	 	 	
 	 	
 	50	 	 	Total electric sales	 	 	11,464	 	 	 	14,393	 	 	 	—	 	 	 	—	 	 	 	25,857	 	 	 	166	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 3 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	Generation sales other than native load	 	$	3	 	 	$	2	 	 	 	 	 	 	 	 	 	 	$	5	 	 	$	1	 	
 	52	 	 	Other electricity marketing and trading (a)	 	 	11	 	 	 	17	 	 	 	 	 	 	 	 	 	 	 	28	 	 	 	(17	)	

 	 	 	 	

 	 	 	 	
 	 	
 	53	 	 	Total electricity	 	 	14	 	 	 	19	 	 	 	—	 	 	 	—	 	 	 	33	 	 	 	(16	)	
 	54	 	 	Other commodities (a)	 	 	(2	)	 	 	2	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	4	 	

 	 	 	 	

 	 	 	 	
 	 	
 	55	 	 	Total realized margin	 	 	12	 	 	 	21	 	 	 	—	 	 	 	—	 	 	 	33	 	 	 	(12	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	Electricity (a)	 	 	(1	)	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	(1	)	 	 	7	 	
 	57	 	 	Other commodities (a)	 	 	2	 	 	 	(2	)	 	 	 	 	 	 	 	 	 	 	2	 	 	 	(1	)	
 	58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	59	 	 	Subtotal	 	 	1	 	 	 	(4	)	 	 	—	 	 	 	—	 	 	 	1	 	 	 	6	 	

 	 	 	 	

 	 	 	 	
 	 	
 	60	 	 	Total current period effects (b)	 	 	13	 	 	 	17	 	 	 	—	 	 	 	—	 	 	 	34	 	 	 	(6	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	Electricity	 	 	7	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	7	 	 	 	11	 	
 	62	 	 	Other commodities	 	 	1	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	(2	)	

 	 	 	 	

 	 	 	 	
 	 	
 	63	 	 	Total future period effects	 	 	8	 	 	 	4	 	 	 	—	 	 	 	—	 	 	 	8	 	 	 	9	 	

 	 	 	 	

 	 	 	 	
 	 	
 	64	 	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	—	 	 	$	—	 	 	$	42	 	 	$	3	 	

 	 	 	 	

 	 	 	 	
 	 	
Future Marketing and Trading Mark-to-Market Realization
As of June 30, 2004, Pinnacle West had accumulated mark-to-market net gains of $33 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2004, $3 million; 2005, $11 million; 2006, $4 million and thereafter, $15 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the second quarter of 2004. A $2 million realized gain is included in the $17 million on line 52 for the second quarter of 2004.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 	Page 4 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (continued) (Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	20	 	 	$	20	 	 	 	 	 	 	 	 	 	 	$	40	 	 	$	2	 	
 	66	 	 	Natural gas	 	 	1	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	(4	)	
 	67	 	 	Coal	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	2	 	
 	68	 	 	Emission allowances	 	 	—	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	4	 	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	(1	)	

 	 	 	 	

 	 	 	 	
 	 	
 	70	 	 	Total gross margin	 	$	21	 	 	$	21	 	 	$	—	 	 	$	—	 	 	$	42	 	 	$	3	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	 	 	 	 	 	 	 	 	$	—	 	 	$	2	 	
 	72	 	 	Other marketing and trading	 	 	12	 	 	 	7	 	 	 	 	 	 	 	 	 	 	 	19	 	 	 	11	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	Generation sales other than native load	 	 	3	 	 	 	3	 	 	 	 	 	 	 	 	 	 	 	6	 	 	 	(1	)	
 	74	 	 	Other marketing and trading	 	 	(8	)	 	 	(3	)	 	 	 	 	 	 	 	 	 	 	(11	)	 	 	(14	)	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	 	 	 	 	 	 	 	 	—	 	 	 	1	 	
 	76	 	 	Other marketing and trading	 	 	10	 	 	 	10	 	 	 	 	 	 	 	 	 	 	 	20	 	 	 	20	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	Other marketing and trading	 	 	4	 	 	 	4	 	 	 	 	 	 	 	 	 	 	 	8	 	 	 	(16	)	

 	 	 	 	

 	 	 	 	
 	 	
 	78	 	 	Total gross margin before income taxes	 	$	21	 	 	$	21	 	 	$	—	 	 	$	—	 	 	$	42	 	 	$	3	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 5 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Residential	 	 	855,754	 	 	 	852,594	 	 	 	 	 	 	 	 	 	 	 	854,174	 	 	 	29,540	 	
 	80	 	 	Business	 	 	105,502	 	 	 	106,517	 	 	 	 	 	 	 	 	 	 	 	106,009	 	 	 	3,709	 	

 	 	 	 	

 	 	 	 	
 	 	
 	81	 	 	Total	 	 	961,256	 	 	 	959,111	 	 	 	—	 	 	 	—	 	 	 	960,183	 	 	 	33,249	 	
 	82	 	 	Wholesale customers	 	 	81	 	 	 	82	 	 	 	 	 	 	 	 	 	 	 	82	 	 	 	16	 	

 	 	 	 	

 	 	 	 	
 	 	
 	83	 	 	Total customers	 	 	961,337	 	 	 	959,193	 	 	 	—	 	 	 	—	 	 	 	960,265	 	 	 	33,265	 	

 	 	 	 	

 	 	 	 	
 	 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.4	%	 	 	3.8	%	 	 	 	 	 	 	 	 	 	 	3.6	%	 	 	0.4	%	
 	 	 	 	RETAIL SALES (GWH) - WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,383	 	 	 	2,745	 	 	 	 	 	 	 	 	 	 	 	5,128	 	 	 	363	 	
 	86	 	 	Business	 	 	3,007	 	 	 	3,621	 	 	 	 	 	 	 	 	 	 	 	6,628	 	 	 	258	 	

 	 	 	 	

 	 	 	 	
 	 	
 	87	 	 	Total	 	 	5,390	 	 	 	6,366	 	 	 	—	 	 	 	—	 	 	 	11,756	 	 	 	621	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	RETAIL USAGE (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,816	 	 	 	3,193	 	 	 	 	 	 	 	 	 	 	 	6,008	 	 	 	373	 	
 	89	 	 	Business	 	 	28,919	 	 	 	33,816	 	 	 	 	 	 	 	 	 	 	 	62,759	 	 	 	1,185	 	
 	 	 	 	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,784	 	 	 	3,220	 	 	 	 	 	 	 	 	 	 	 	6,004	 	 	 	226	 	
 	91	 	 	Business	 	 	28,502	 	 	 	33,990	 	 	 	 	 	 	 	 	 	 	 	62,519	 	 	 	251	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,979	 	 	 	5,608	 	 	 	 	 	 	 	 	 	 	 	5,608	 	 	 	37	 	
 	 	 	
See Glossary of Terms.	 	Page 6 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	Nuclear	 	 	2,148	 	 	 	1,860	 	 	 	 	 	 	 	 	 	 	 	4,008	 	 	 	(345	)	
 	94	 	 	Coal	 	 	2,887	 	 	 	3,035	 	 	 	 	 	 	 	 	 	 	 	5,922	 	 	 	328	 	
 	95	 	 	Gas, oil and other	 	 	363	 	 	 	1,361	 	 	 	 	 	 	 	 	 	 	 	1,724	 	 	 	(1,136	)	

 	 	 	 	

 	 	 	 	
 	 	
 	96	 	 	Total	 	 	5,398	 	 	 	6,256	 	 	 	—	 	 	 	—	 	 	 	11,654	 	 	 	(1,153	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	Firm load	 	 	701	 	 	 	1,533	 	 	 	 	 	 	 	 	 	 	 	2,234	 	 	 	1,640	 	
 	98	 	 	Marketing and trading	 	 	5,507	 	 	 	7,169	 	 	 	 	 	 	 	 	 	 	 	12,676	 	 	 	(340	)	

 	 	 	 	

 	 	 	 	
 	 	
 	99	 	 	Total	 	 	6,208	 	 	 	8,702	 	 	 	—	 	 	 	—	 	 	 	14,910	 	 	 	1,300	 	

 	 	 	 	

 	 	 	 	
 	 	
 	100	 	 	Total energy sources	 	 	11,606	 	 	 	14,958	 	 	 	—	 	 	 	—	 	 	 	26,564	 	 	 	147	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	Nuclear	 	 	88	%	 	 	77	%	 	 	 	 	 	 	 	 	 	 	82	%	 	 	(10	)%	
 	102	 	 	Coal	 	 	77	%	 	 	81	%	 	 	 	 	 	 	 	 	 	 	79	%	 	 	4	%	
 	103	 	 	Gas, oil and other	 	 	5	%	 	 	20	%	 	 	 	 	 	 	 	 	 	 	13	%	 	 	(16	)%	
 	104	 	 	System average	 	 	44	%	 	 	50	%	 	 	 	 	 	 	 	 	 	 	47	%	 	 	(12	)%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Nuclear	 	 	135	 	 	 	233	 	 	 	 	 	 	 	 	 	 	 	184	 	 	 	100	 	
 	106	 	 	Coal	 	 	149	 	 	 	153	 	 	 	 	 	 	 	 	 	 	 	151	 	 	 	(122	)	
 	107	 	 	Gas	 	 	49	 	 	 	47	 	 	 	 	 	 	 	 	 	 	 	48	 	 	 	(121	)	

 	 	 	 	

 	 	 	 	
 	 	
 	108	 	 	Total	 	 	333	 	 	 	433	 	 	 	—	 	 	 	—	 	 	 	383	 	 	 	(143	)	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	11.17	 	 	$	18.59	 	 	 	 	 	 	 	 	 	 	$	15.16	 	 	$	(1.64	)	
 	 	 	 	 	
See Glossary of Terms.	 	Page 7 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2004

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	Palo Verde	 	$	43.73	 	 	$	50.36	 	 	 	 	 	 	 	 	 	 	$	47.05	 	 	$	(2.22	)	
 	111	 	 	SP15	 	$	48.37	 	 	$	54.73	 	 	 	 	 	 	 	 	 	 	$	51.55	 	 	$	(0.99	)	
 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	Palo Verde	 	$	33.66	 	 	$	33.74	 	 	 	 	 	 	 	 	 	 	$	33.70	 	 	$	2.91	 	
 	113	 	 	SP15	 	$	36.90	 	 	$	37.32	 	 	 	 	 	 	 	 	 	 	$	37.11	 	 	$	3.12	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	Cooling degree-days	 	 	273	 	 	 	1,598	 	 	 	 	 	 	 	 	 	 	 	1,871	 	 	 	245	 	
 	115	 	 	Heating degree-days	 	 	552	 	 	 	11	 	 	 	 	 	 	 	 	 	 	 	563	 	 	 	197	 	
 	116	 	 	Average humidity	 	 	39	%	 	 	19	%	 	 	 	 	 	 	 	 	 	 	29	%	 	 	(2	)%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	 	 	 	 	 	 	 	 	1,571	 	 	 	—	 	
 	118	 	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	 	 	 	 	 	 	 	 	557	 	 	 	—	 	
 	119	 	 	Average humidity	 	 	43	%	 	 	24	%	 	 	 	 	 	 	 	 	 	 	33	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	Single-family	 	 	10,045	 	 	 	8,895	 	 	 	 	 	 	 	 	 	 	 	18,940	 	 	 	3,920	 	
 	121	 	 	Multi-family	 	 	1,757	 	 	 	981	 	 	 	 	 	 	 	 	 	 	 	2,738	 	 	 	1,074	 	

 	 	 	 	

 	 	 	 	
 	 	
 	122	 	 	Total	 	 	11,802	 	 	 	9,876	 	 	 	—	 	 	 	—	 	 	 	21,678	 	 	 	4,994	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Arizona Job Growth (c) (d)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	Payroll job growth (% over prior year)	 	 	2.2	%	 	 	2.5	%	 	 	 	 	 	 	 	 	 	 	2.4	%	 	 	1.5	%	
 	124	 	 	Unemployment rate (%, seasonally adjusted)	 	 	5.1	%	 	 	5.3	%	 	 	 	 	 	 	 	 	 	 	5.2	%	 	 	(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	
 		
(d)	 	The economic indicators reflect latest available data through periods ending May 2004.	
 	 	 	
See Glossary of Terms.	 	Page 8 of 8	

 

Exhibit 99.4
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	Arizona Public Service	 	$	16	 	 	$	43	 	 	$	100	 	 	$	21	 	 	$	181	 	 	$	(18	)	
 	2	 	 	Pinnacle West Energy	 	 	5	 	 	 	2	 	 	 	3	 	 	 	(12	)	 	 	(1	)	 	 	18	 	
 	3	 	 	APS Energy Services	 	 	8	 	 	 	5	 	 	 	1	 	 	 	3	 	 	 	16	 	 	 	(12	)	
 	4	 	 	SunCor	 	 	1	 	 	 	2	 	 	 	6	 	 	 	36	 	 	 	46	 	 	 	36	 	
 	5	 	 	El Dorado	 	 	3	 	 	 	2	 	 	 	1	 	 	 	1	 	 	 	7	 	 	 	62	 	
 	6	 	 	Parent Company	 	 	(13	)	 	 	1	 	 	 	(1	)	 	 	(3	)	 	 	(18	)	 	 	(61	)	

 	 	 	 	

 	 	 	 	
 	 	
 	7	 	 	Income From Continuing Operations	 	 	20	 	 	 	55	 	 	 	110	 	 	 	46	 	 	 	231	 	 	 	25	 	
 	8a	 	 	Income From Discontinued Operations - Net of Tax	 	 	5	 	 	 	1	 	 	 	—	 	 	 	3	 	 	 	10	 	 	 	1	 	
 	8b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	66	 	

 	 	 	 	

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

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	EARNINGS PER SHARE
BY SUBSIDIARY — DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	Arizona Public Service	 	$	0.17	 	 	$	0.47	 	 	$	1.10	 	 	$	0.23	 	 	$	1.98	 	 	$	(0.37	)	
 	11	 	 	Pinnacle West Energy	 	 	0.06	 	 	 	0.02	 	 	 	0.04	 	 	 	(0.14	)	 	 	(0.01	)	 	 	0.22	 	
 	12	 	 	APS Energy Services	 	 	0.08	 	 	 	0.06	 	 	 	0.01	 	 	 	0.03	 	 	 	0.18	 	 	 	(0.15	)	
 	13	 	 	SunCor	 	 	0.01	 	 	 	0.02	 	 	 	0.07	 	 	 	0.39	 	 	 	0.50	 	 	 	0.37	 	
 	14	 	 	El Dorado	 	 	0.03	 	 	 	0.02	 	 	 	0.01	 	 	 	0.02	 	 	 	0.08	 	 	 	0.73	 	
 	15	 	 	Parent Company	 	 	(0.13	)	 	 	0.01	 	 	 	(0.03	)	 	 	(0.03	)	 	 	(0.21	)	 	 	(0.71	)	

 	 	 	 	

 	 	 	 	
 	 	
 	16	 	 	Income From Continuing Operations	 	 	0.22	 	 	 	0.60	 	 	 	1.20	 	 	 	0.50	 	 	 	2.52	 	 	 	0.09	 	
 	17a	 	 	Income From Discontinued Operations - Net of Tax	 	 	0.06	 	 	 	0.01	 	 	 	—	 	 	 	0.04	 	 	 	0.11	 	 	 	0.01	 	
 	17b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	0.77	 	

 	 	 	 	

 	 	 	 	
 	 	
 	18	 	 	Net Income	 	$	0.28	 	 	$	0.61	 	 	$	1.20	 	 	$	0.54	 	 	$	2.63	 	 	$	0.87	 	

 	 	 	 	

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

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC OPERATING REVENUES
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	Residential	 	$	168	 	 	$	233	 	 	$	363	 	 	$	193	 	 	$	957	 	 	$	51	 	
 	23	 	 	Business	 	 	196	 	 	 	251	 	 	 	284	 	 	 	222	 	 	 	953	 	 	 	25	 	

 	 	 	 	

 	 	 	 	
 	 	
 	24	 	 	Total retail	 	 	364	 	 	 	484	 	 	 	647	 	 	 	415	 	 	 	1,910	 	 	 	76	 	
 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	Traditional contracts	 	 	3	 	 	 	4	 	 	 	5	 	 	 	3	 	 	 	15	 	 	 	6	 	
 	26	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	27	 	 	Transmission for others	 	 	6	 	 	 	5	 	 	 	9	 	 	 	7	 	 	 	27	 	 	 	(3	)	
 	28	 	 	Other miscellaneous services	 	 	7	 	 	 	6	 	 	 	6	 	 	 	7	 	 	 	26	 	 	 	9	 	

 	 	 	 	

 	 	 	 	
 	 	
 	29	 	 	Total regulated electricity	 	 	380	 	 	 	499	 	 	 	667	 	 	 	432	 	 	 	1,978	 	 	 	88	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	Generation sales other than native load	 	 	44	 	 	 	20	 	 	 	8	 	 	 	16	 	 	 	88	 	 	 	38	 	
 	31	 	 	Realized margins on electricity trading (a)	 	 	9	 	 	 	5	 	 	 	2	 	 	 	6	 	 	 	22	 	 	 	(28	)	
 	32	 	 	Other delivered electricity (a)	 	 	72	 	 	 	78	 	 	 	84	 	 	 	74	 	 	 	308	 	 	 	140	 	

 	 	 	 	

 	 	 	 	
 	 	
 	33	 	 	Total delivered marketing and trading	 	 	125	 	 	 	103	 	 	 	94	 	 	 	96	 	 	 	418	 	 	 	150	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(2	)	 	 	(2	)	 	 	(5	)	 	 	1	 	 	 	(8	)	 	 	(16	)	
 	35	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(3	)	 	 	1	 	 	 	(3	)	 	 	(1	)	 	 	(11	)	 	 	30	 	
 	36	 	 	Change in mark-to-market for future-period deliveries	 	 	(3	)	 	 	(1	)	 	 	(3	)	 	 	(5	)	 	 	(7	)	 	 	(59	)	

 	 	 	 	

 	 	 	 	
 	 	
 	37	 	 	Total other marketing and trading	 	 	(8	)	 	 	(2	)	 	 	(11	)	 	 	(5	)	 	 	(26	)	 	 	(45	)	

 	 	 	 	

 	 	 	 	
 	 	
 	38	 	 	Total marketing and trading	 	 	117	 	 	 	101	 	 	 	83	 	 	 	91	 	 	 	392	 	 	 	105	 	

 	 	 	 	

 	 	 	 	
 	 	
 	39	 	 	Total electric operating revenues	 	$	497	 	 	$	600	 	 	$	750	 	 	$	523	 	 	$	2,370	 	 	$	193	 	

 	 	 	 	

 	 	 	 	

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

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	Residential	 	 	2,104	 	 	 	2,543	 	 	 	4,126	 	 	 	2,374	 	 	 	11,147	 	 	 	703	 	
 	41	 	 	Business	 	 	2,849	 	 	 	3,450	 	 	 	3,891	 	 	 	3,226	 	 	 	13,416	 	 	 	499	 	

 	 	 	 	

 	 	 	 	
 	 	
 	42	 	 	Total retail	 	 	4,953	 	 	 	5,993	 	 	 	8,017	 	 	 	5,600	 	 	 	24,563	 	 	 	1,202	 	
 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	Traditional contracts	 	 	130	 	 	 	131	 	 	 	127	 	 	 	112	 	 	 	500	 	 	 	26	 	
 	44	 	 	Retail load hedge management	 	 	109	 	 	 	205	 	 	 	446	 	 	 	333	 	 	 	1,093	 	 	 	(1,549	)	

 	 	 	 	

 	 	 	 	
 	 	
 	45	 	 	Total regulated electricity	 	 	5,192	 	 	 	6,329	 	 	 	8,590	 	 	 	6,045	 	 	 	26,156	 	 	 	(321	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	Generation sales other than native load	 	 	992	 	 	 	476	 	 	 	203	 	 	 	475	 	 	 	2,146	 	 	 	355	 	
 	47	 	 	Electricity trading	 	 	5,074	 	 	 	4,936	 	 	 	5,640	 	 	 	5,655	 	 	 	21,305	 	 	 	3,268	 	
 	48	 	 	Other delivered electricity	 	 	1,306	 	 	 	1,386	 	 	 	1,412	 	 	 	1,247	 	 	 	5,351	 	 	 	2,324	 	

 	 	 	 	

 	 	 	 	
 	 	
 	49	 	 	Total delivered marketing and trading	 	 	7,372	 	 	 	6,798	 	 	 	7,255	 	 	 	7,377	 	 	 	28,802	 	 	 	5,947	 	

 	 	 	 	

 	 	 	 	
 	 	
 	50	 	 	Total electric sales	 	 	12,564	 	 	 	13,127	 	 	 	15,845	 	 	 	13,422	 	 	 	54,958	 	 	 	5,626	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 3 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	Generation sales other than native load	 	$	3	 	 	$	1	 	 	$	—	 	 	$	3	 	 	$	7	 	 	$	(7	)	
 	52	 	 	Other electricity marketing and trading (a)	 	 	24	 	 	 	21	 	 	 	9	 	 	 	12	 	 	 	66	 	 	 	(33	)	

 	 	 	 	

 	 	 	 	
 	 	
 	53	 	 	Total electricity	 	 	27	 	 	 	22	 	 	 	9	 	 	 	15	 	 	 	73	 	 	 	(40	)	
 	54	 	 	Other commodities (a)	 	 	(2	)	 	 	(2	)	 	 	(5	)	 	 	1	 	 	 	(8	)	 	 	(16	)	

 	 	 	 	

 	 	 	 	
 	 	
 	55	 	 	Total realized margin	 	 	25	 	 	 	20	 	 	 	4	 	 	 	16	 	 	 	65	 	 	 	(56	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	Electricity (a)	 	 	(5	)	 	 	(2	)	 	 	(3	)	 	 	(2	)	 	 	(14	)	 	 	16	 	
 	57	 	 	Other commodities (a)	 	 	2	 	 	 	3	 	 	 	—	 	 	 	1	 	 	 	3	 	 	 	14	 	
 	58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	59	 	 	Subtotal	 	 	(3	)	 	 	1	 	 	 	(3	)	 	 	(1	)	 	 	(11	)	 	 	30	 	

 	 	 	 	

 	 	 	 	
 	 	
 	60	 	 	Total current period effects (b)	 	 	22	 	 	 	21	 	 	 	1	 	 	 	15	 	 	 	54	 	 	 	(26	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	Electricity	 	 	(6	)	 	 	1	 	 	 	—	 	 	 	(5	)	 	 	(8	)	 	 	(71	)	
 	62	 	 	Other commodities	 	 	3	 	 	 	(2	)	 	 	(3	)	 	 	—	 	 	 	1	 	 	 	12	 	

 	 	 	 	

 	 	 	 	
 	 	
 	63	 	 	Total future period effects	 	 	(3	)	 	 	(1	)	 	 	(3	)	 	 	(5	)	 	 	(7	)	 	 	(59	)	

 	 	 	 	

 	 	 	 	
 	 	
 	64	 	 	Total gross margin	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	

 	 	 	 	

 	 	 	 	
 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2003, Pinnacle West had accumulated mark-to-market net gains of $23 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2004, $5 million; 2005, $5 million; 2006, $3 million and thereafter, $10 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $2 million was transferred to “realized” for the fourth quarter of 2003. A $2 million realized gain is included in the $12 million on line 52 for the fourth quarter of 2003.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 	Page 4 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

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

 	 	 	 	

 	 	 	 	
 	 	
 	70	 	 	Total gross margin	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	Generation sales other than native load	 	$	(2	)	 	$	—	 	 	$	—	 	 	$	—	 	 	$	(2	)	 	$	(10	)	
 	72	 	 	Other marketing and trading	 	 	4	 	 	 	4	 	 	 	(2	)	 	 	(9	)	 	 	(3	)	 	 	(85	)	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	Generation sales other than native load	 	 	6	 	 	 	1	 	 	 	—	 	 	 	4	 	 	 	11	 	 	 	9	 	
 	74	 	 	Other marketing and trading	 	 	—	 	 	 	3	 	 	 	(6	)	 	 	—	 	 	 	(3	)	 	 	(3	)	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	Generation sales other than native load	 	 	(1	)	 	 	—	 	 	 	—	 	 	 	(1	)	 	 	(2	)	 	 	(6	)	
 	76	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	10	 	 	 	10	 	 	 	10	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	Other marketing and trading	 	 	12	 	 	 	12	 	 	 	6	 	 	 	6	 	 	 	36	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	78	 	 	Total gross margin before income taxes	 	$	19	 	 	$	20	 	 	$	(2	)	 	$	10	 	 	$	47	 	 	$	(85	)	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 5 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Residential	 	 	827,937	 	 	 	821,331	 	 	 	824,655	 	 	 	839,539	 	 	 	828,366	 	 	 	26,565	 	
 	80	 	 	Business	 	 	101,999	 	 	 	102,601	 	 	 	103,262	 	 	 	104,521	 	 	 	103,096	 	 	 	2,868	 	

 	 	 	 	

 	 	 	 	
 	 	
 	81	 	 	Total	 	 	929,936	 	 	 	923,932	 	 	 	927,917	 	 	 	944,060	 	 	 	931,462	 	 	 	29,432	 	
 	82	 	 	Wholesale customers	 	 	65	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	(1	)	

 	 	 	 	

 	 	 	 	
 	 	
 	83	 	 	Total customers	 	 	930,001	 	 	 	923,998	 	 	 	927,983	 	 	 	944,126	 	 	 	931,528	 	 	 	29,431	 	

 	 	 	 	

 	 	 	 	
 	 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.3	%	 	 	3.1	%	 	 	3.2	%	 	 	3.4	%	 	 	3.3	%	 	 	0.2	%	
 	 	 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,243	 	 	 	2,522	 	 	 	3,866	 	 	 	2,268	 	 	 	10,899	 	 	 	468	 	
 	86	 	 	Business	 	 	2,875	 	 	 	3,495	 	 	 	3,828	 	 	 	3,168	 	 	 	13,366	 	 	 	461	 	

 	 	 	 	

 	87	 	 	Total	 	 	5,118	 	 	 	6,017	 	 	 	7,694	 	 	 	5,436	 	 	 	24,265	 	 	 	929	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,541	 	 	 	3,096	 	 	 	5,004	 	 	 	2,828	 	 	 	13,457	 	 	 	432	 	
 	89	 	 	Business	 	 	27,927	 	 	 	33,625	 	 	 	37,677	 	 	 	30,865	 	 	 	130,131	 	 	 	1,246	 	
 	 	 	 	RETAIL USAGE -
WEATHER NORMALIZED
  (KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,709	 	 	 	3,071	 	 	 	4,688	 	 	 	2,701	 	 	 	13,157	 	 	 	148	 	
 	91	 	 	Business	 	 	28,187	 	 	 	34,064	 	 	 	37,071	 	 	 	30,310	 	 	 	129,646	 	 	 	890	 	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,569	 	 	 	5,571	 	 	 	6,332	 	 	 	5,124	 	 	 	6,332	 	 	 	529	 	
 	 	 	
See Glossary of Terms.	 	Page 6 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	Nuclear	 	 	2,306	 	 	 	2,047	 	 	 	2,230	 	 	 	1,732	 	 	 	8,315	 	 	 	(666	)	
 	94	 	 	Coal	 	 	2,770	 	 	 	2,824	 	 	 	2,972	 	 	 	2,800	 	 	 	11,366	 	 	 	(690	)	
 	95	 	 	Gas, oil and other	 	 	1,288	 	 	 	1,572	 	 	 	2,696	 	 	 	535	 	 	 	6,091	 	 	 	1,722	 	

 	 	 	 	

 	 	 	 	
 	 	
 	96	 	 	Total	 	 	6,364	 	 	 	6,443	 	 	 	7,898	 	 	 	5,067	 	 	 	25,772	 	 	 	366	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	Firm load	 	 	(12	)	 	 	606	 	 	 	1,099	 	 	 	1,418	 	 	 	3,111	 	 	 	1,492	 	
 	98	 	 	Marketing and trading	 	 	6,489	 	 	 	6,527	 	 	 	7,498	 	 	 	7,235	 	 	 	27,749	 	 	 	4,045	 	

 	 	 	 	

 	 	 	 	
 	 	
 	99	 	 	Total	 	 	6,477	 	 	 	7,133	 	 	 	8,597	 	 	 	8,653	 	 	 	30,860	 	 	 	5,537	 	

 	 	 	 	

 	 	 	 	
 	 	
 	100	 	 	Total energy sources	 	 	12,841	 	 	 	13,576	 	 	 	16,495	 	 	 	13,720	 	 	 	56,632	 	 	 	5,903	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	Nuclear	 	 	98	%	 	 	86	%	 	 	93	%	 	 	72	%	 	 	87	%	 	 	(7	)%	
 	102	 	 	Coal	 	 	75	%	 	 	75	%	 	 	79	%	 	 	74	%	 	 	76	%	 	 	(4	)%	
 	103	 	 	Gas, oil and other	 	 	26	%	 	 	31	%	 	 	44	%	 	 	9	%	 	 	28	%	 	 	1	%	
 	104	 	 	System average	 	 	58	%	 	 	59	%	 	 	64	%	 	 	41	%	 	 	55	%	 	 	(8	)%	
 	 	 	 	Generation Capacity Out of Service and Replaced for
Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Nuclear	 	 	31	 	 	 	136	 	 	 	61	 	 	 	297	 	 	 	131	 	 	 	64	 	
 	106	 	 	Coal	 	 	292	 	 	 	254	 	 	 	277	 	 	 	253	 	 	 	269	 	 	 	102	 	
 	107	 	 	Gas	 	 	189	 	 	 	148	 	 	 	154	 	 	 	338	 	 	 	205	 	 	 	157	 	

 	 	 	 	

 	 	 	 	
 	 	
 	108	 	 	Total	 	 	512	 	 	 	538	 	 	 	492	 	 	 	888	 	 	 	606	 	 	 	323	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	15.89	 	 	$	16.80	 	 	$	19.52	 	 	$	15.40	 	 	$	17.36	 	 	$	4.35	 	
 	 	 	
See Glossary of Terms.	 	Page 7 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2003

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

 	 	 	 	

 	 	 	 	
 	 	
 	122	 	 	Total	 	 	8,893	 	 	 	12,666	 	 	 	12,422	 	 	 	12,397	 	 	 	46,378	 	 	 	4,992	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	Payroll job growth (% over prior year)	 	 	1.1	%	 	 	0.6	%	 	 	1.1	%	 	 	1.5	%	 	 	1.1	%	 	 	1.1	%	
 	124	 	 	Unemployment rate (%, seasonally adjusted)	 	 	5.9	%	 	 	5.9	%	 	 	5.7	%	 	 	5.1	%	 	 	5.6	%	 	 	(0.6	)%	

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

 

Exhibit 99.5
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	)	 	 	(15	)	 	 	(37	)	 	 	(55	)	 	 	(55	)	
 	6	 	 	Parent Company	 	 	17	 	 	 	(6	)	 	 	13	 	 	 	19	 	 	 	43	 	 	 	8	 	

 	 	 	 	

 	 	 	 	
 	 	
 	7	 	 	Income From Continuing Operations	 	 	53	 	 	 	69	 	 	 	101	 	 	 	(17	)	 	 	206	 	 	 	(121	)	
 	8a	 	 	Income From Discontinued Operations - Net of Tax	 	 	1	 	 	 	6	 	 	 	—	 	 	 	2	 	 	 	9	 	 	 	9	 	
 	8b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(66	)	 	 	(66	)	 	 	(51	)	

 	 	 	 	

 	 	 	 	
 	 	
 	9	 	 	Net Income	 	$	54	 	 	$	75	 	 	$	101	 	 	$	(81	)	 	$	149	 	 	$	(163	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	EARNINGS PER SHARE
BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	Arizona Public Service	 	$	0.37	 	 	$	0.76	 	 	$	1.02	 	 	$	0.19	 	 	$	2.35	 	 	$	(0.95	)	
 	11	 	 	Pinnacle West Energy	 	 	0.01	 	 	 	0.01	 	 	 	0.12	 	 	 	(0.37	)	 	 	(0.23	)	 	 	(0.44	)	
 	12	 	 	APS Energy Services	 	 	0.03	 	 	 	0.13	 	 	 	0.08	 	 	 	0.09	 	 	 	0.33	 	 	 	0.45	 	
 	13	 	 	SunCor	 	 	0.02	 	 	 	0.02	 	 	 	(0.01	)	 	 	0.09	 	 	 	0.13	 	 	 	0.09	 	
 	14	 	 	El Dorado	 	 	—	 	 	 	(0.04	)	 	 	(0.18	)	 	 	(0.43	)	 	 	(0.65	)	 	 	(0.65	)	
 	15	 	 	Parent Company	 	 	0.20	 	 	 	(0.07	)	 	 	0.16	 	 	 	0.24	 	 	 	0.50	 	 	 	0.08	 	

 	 	 	 	

 	 	 	 	
 	 	
 	16	 	 	Income From Continuing Operations	 	 	0.63	 	 	 	0.81	 	 	 	1.19	 	 	 	(0.19	)	 	 	2.43	 	 	 	(1.42	)	
 	17a	 	 	Income From Discontinued Operations - Net of Tax	 	 	—	 	 	 	0.08	 	 	 	—	 	 	 	0.01	 	 	 	0.10	 	 	 	0.11	 	
 	17b	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.77	)	 	 	(0.77	)	 	 	(0.60	)	

 	 	 	 	

 	 	 	 	
 	 	
 	18	 	 	Net Income	 	$	0.63	 	 	$	0.89	 	 	$	1.19	 	 	$	(0.95	)	 	$	1.76	 	 	$	(1.91	)	

 	 	 	 	

 	 	 	 	
 	 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	30.06	 	 	$	30.54	 	 	$	31.39	 	 	$	29.40	 	 	$	29.40	 	 	$	(0.06	)	
 	 	 	 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	Average	 	 	84,884	 	 	 	84,926	 	 	 	84,797	 	 	 	85,302	 	 	 	84,964	 	 	 	34	 	
 	21	 	 	End of Period	 	 	84,789	 	 	 	84,768	 	 	 	84,756	 	 	 	91,255	 	 	 	91,255	 	 	 	6,531	 	

See Glossary of Terms.	 	Page 1 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC OPERATING REVENUES
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	Residential	 	$	171	 	 	$	226	 	 	$	337	 	 	$	172	 	 	$	906	 	 	$	(9	)	
 	23	 	 	Business	 	 	195	 	 	 	251	 	 	 	270	 	 	 	212	 	 	 	928	 	 	 	(24	)	

 	 	 	 	

 	 	 	 	
 	 	
 	24	 	 	Total retail	 	 	366	 	 	 	477	 	 	 	607	 	 	 	384	 	 	 	1,834	 	 	 	(33	)	
 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	Traditional contracts	 	 	2	 	 	 	1	 	 	 	3	 	 	 	3	 	 	 	9	 	 	 	(64	)	
 	26	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	27	 	 	Transmission for others	 	 	6	 	 	 	6	 	 	 	6	 	 	 	12	 	 	 	30	 	 	 	4	 	
 	28	 	 	Other miscellaneous services	 	 	4	 	 	 	2	 	 	 	4	 	 	 	7	 	 	 	17	 	 	 	(1	)	

 	 	 	 	

 	 	 	 	
 	 	
 	29	 	 	Total regulated electricity	 	 	378	 	 	 	486	 	 	 	620	 	 	 	406	 	 	 	1,890	 	 	 	(94	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	Generation sales other than native load	 	 	8	 	 	 	2	 	 	 	8	 	 	 	32	 	 	 	50	 	 	 	(98	)	
 	31	 	 	Realized margins on electricity trading (a)	 	 	28	 	 	 	13	 	 	 	8	 	 	 	1	 	 	 	50	 	 	 	(20	)	
 	32	 	 	Other delivered electricity (a)	 	 	21	 	 	 	31	 	 	 	45	 	 	 	71	 	 	 	168	 	 	 	36	 	

 	 	 	 	

 	 	 	 	
 	 	
 	33	 	 	Total delivered marketing and trading	 	 	57	 	 	 	46	 	 	 	61	 	 	 	104	 	 	 	268	 	 	 	(82	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	6	 	 	 	8	 	 	 	22	 	
 	35	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	(22	)	 	 	(9	)	 	 	2	 	 	 	(8	)	 	 	(41	)	 	 	(47	)	
 	36	 	 	Change in mark-to-market for future-period deliveries	 	 	23	 	 	 	3	 	 	 	23	 	 	 	(1	)	 	 	52	 	 	 	(76	)	

 	 	 	 	

 	 	 	 	
 	 	
 	37	 	 	Total other marketing and trading	 	 	5	 	 	 	(5	)	 	 	22	 	 	 	(3	)	 	 	19	 	 	 	(101	)	

 	 	 	 	

 	 	 	 	
 	 	
 	38	 	 	Total marketing and trading	 	 	62	 	 	 	41	 	 	 	83	 	 	 	101	 	 	 	287	 	 	 	(183	)	

 	 	 	 	

 	 	 	 	
 	 	
 	39	 	 	Total electric operating revenues	 	$	440	 	 	$	527	 	 	$	703	 	 	$	507	 	 	$	2,177	 	 	$	(277	)	

 	 	 	 	

 	 	 	 	

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

See Glossary of Terms.	 	Page 2 of 8	

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	Residential	 	 	2,141	 	 	 	2,441	 	 	 	3,806	 	 	 	2,056	 	 	 	10,444	 	 	 	109	 	
 	41	 	 	Business	 	 	2,771	 	 	 	3,429	 	 	 	3,681	 	 	 	3,036	 	 	 	12,917	 	 	 	(147	)	

 	 	 	 	

 	 	 	 	
 	 	
 	42	 	 	Total retail	 	 	4,912	 	 	 	5,870	 	 	 	7,487	 	 	 	5,092	 	 	 	23,361	 	 	 	(38	)	
 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	Traditional contracts	 	 	71	 	 	 	121	 	 	 	142	 	 	 	140	 	 	 	474	 	 	 	(739	)	
 	44	 	 	Retail load hedge management	 	 	158	 	 	 	230	 	 	 	1,958	 	 	 	296	 	 	 	2,642	 	 	 	(398	)	

 	 	 	 	

 	 	 	 	
 	 	
 	45	 	 	Total regulated electricity	 	 	5,141	 	 	 	6,221	 	 	 	9,587	 	 	 	5,528	 	 	 	26,477	 	 	 	(1,175	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	Generation sales other than native load	 	 	376	 	 	 	73	 	 	 	291	 	 	 	1,051	 	 	 	1,791	 	 	 	403	 	
 	47	 	 	Electricity trading	 	 	3,410	 	 	 	3,852	 	 	 	6,120	 	 	 	4,655	 	 	 	18,037	 	 	 	4,450	 	
 	48	 	 	Other delivered electricity	 	 	426	 	 	 	518	 	 	 	693	 	 	 	1,390	 	 	 	3,027	 	 	 	2,001	 	

 	 	 	 	

 	 	 	 	
 	 	
 	49	 	 	Total delivered marketing and trading	 	 	4,212	 	 	 	4,443	 	 	 	7,104	 	 	 	7,096	 	 	 	22,855	 	 	 	6,854	 	

 	 	 	 	

 	 	 	 	
 	 	
 	50	 	 	Total electric sales	 	 	9,353	 	 	 	10,664	 	 	 	16,691	 	 	 	12,624	 	 	 	49,332	 	 	 	5,679	 	

 	 	 	 	

 	 	 	 	

 	 	 	
See Glossary of Terms.	 	Page 3 of 8	

 

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	Generation sales other than native load	 	$	2	 	 	$	—	 	 	$	3	 	 	$	9	 	 	$	14	 	 	$	(66	)	
 	52	 	 	Other electricity marketing and trading (a)	 	 	33	 	 	 	24	 	 	 	19	 	 	 	23	 	 	 	99	 	 	 	(18	)	

 	 	 	 	

 	 	 	 	
 	 	
 	53	 	 	Total electricity	 	 	35	 	 	 	24	 	 	 	22	 	 	 	32	 	 	 	113	 	 	 	(84	)	
 	54	 	 	Other commodities (a)	 	 	4	 	 	 	1	 	 	 	(3	)	 	 	6	 	 	 	8	 	 	 	22	 	

 	 	 	 	

 	 	 	 	
 	 	
 	55	 	 	Total realized margin	 	 	39	 	 	 	25	 	 	 	19	 	 	 	38	 	 	 	121	 	 	 	(62	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	Electricity (a)	 	 	(16	)	 	 	(9	)	 	 	(4	)	 	 	(4	)	 	 	(30	)	 	 	(19	)	
 	57	 	 	Other commodities (a)	 	 	(6	)	 	 	—	 	 	 	6	 	 	 	(4	)	 	 	(11	)	 	 	(36	)	
 	58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	8	 	

 	 	 	 	

 	 	 	 	
 	 	
 	59	 	 	Subtotal	 	 	(22	)	 	 	(9	)	 	 	2	 	 	 	(8	)	 	 	(41	)	 	 	(47	)	

 	 	 	 	

 	 	 	 	
 	 	
 	60	 	 	Total current period effects (b)	 	 	17	 	 	 	16	 	 	 	21	 	 	 	30	 	 	 	80	 	 	 	(109	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	Electricity	 	 	25	 	 	 	10	 	 	 	25	 	 	 	6	 	 	 	63	 	 	 	(83	)	
 	62	 	 	Other commodities	 	 	(2	)	 	 	(7	)	 	 	(2	)	 	 	(7	)	 	 	(11	)	 	 	7	 	

 	 	 	 	

 	 	 	 	
 	 	
 	63	 	 	Total future period effects	 	 	23	 	 	 	3	 	 	 	23	 	 	 	(1	)	 	 	52	 	 	 	(76	)	

 	 	 	 	

 	 	 	 	
 	 	
 	64	 	 	Total gross margin	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	

 	 	 	 	

 	 	 	 	
 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2002, Pinnacle West had accumulated mark-to-market net gains of $41 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2003, $4 million; 2004, $10 million; 2005 and thereafter, $27 million.

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

See Glossary of Terms.	 	Page 4 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	45	 	 	$	25	 	 	$	43	 	 	$	34	 	 	$	147	 	 	$	(181	)	
 	66	 	 	Natural gas	 	 	(5	)	 	 	1	 	 	 	3	 	 	 	(5	)	 	 	(6	)	 	 	2	 	
 	67	 	 	Coal	 	 	(1	)	 	 	(2	)	 	 	1	 	 	 	—	 	 	 	(2	)	 	 	(9	)	
 	68	 	 	Emission allowances	 	 	1	 	 	 	(5	)	 	 	(3	)	 	 	—	 	 	 	(7	)	 	 	3	 	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	70	 	 	Total gross margin	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	Generation sales other than native load	 	$	1	 	 	$	—	 	 	$	2	 	 	$	5	 	 	$	8	 	 	$	8	 	
 	72	 	 	Other marketing and trading	 	 	34	 	 	 	9	 	 	 	30	 	 	 	9	 	 	 	82	 	 	 	4	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	Generation sales other than native load	 	 	1	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	2	 	 	 	(77	)	
 	74	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(156	)	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	4	 	 	 	4	 	
 	76	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	Other marketing and trading	 	 	4	 	 	 	10	 	 	 	11	 	 	 	11	 	 	 	36	 	 	 	32	 	

 	 	 	 	

 	 	 	 	
 	 	
 	78	 	 	Total gross margin before income taxes	 	$	40	 	 	$	19	 	 	$	44	 	 	$	29	 	 	$	132	 	 	$	(185	)	

 	 	 	 	

 	 	 	 	

 	 	 	
See Glossary of Terms.	 	Page 5 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Residential	 	 	801,000	 	 	 	795,681	 	 	 	798,590	 	 	 	811,930	 	 	 	801,801	 	 	 	25,462	 	
 	80	 	 	Business	 	 	99,335	 	 	 	100,096	 	 	 	100,318	 	 	 	101,177	 	 	 	100,228	 	 	 	2,030	 	

 	 	 	 	

 	 	 	 	
 	 	
 	81	 	 	Total	 	 	900,335	 	 	 	895,777	 	 	 	898,908	 	 	 	913,107	 	 	 	902,029	 	 	 	27,492	 	
 	82	 	 	Wholesale customers	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	67	 	 	 	1	 	

 	 	 	 	

 	 	 	 	
 	 	
 	83	 	 	Total customers	 	 	900,402	 	 	 	895,844	 	 	 	898,975	 	 	 	913,174	 	 	 	902,096	 	 	 	27,493	 	

 	 	 	 	

 	 	 	 	
 	 	
 	84	 	 	Customer Growth (% over prior year)	 	 	3.2	%	 	 	3.2	%	 	 	3.1	%	 	 	3.2	%	 	 	3.1	%	 	 	(0.5	)%	
 	 	 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,163	 	 	 	2,446	 	 	 	3,683	 	 	 	2,139	 	 	 	10,431	 	 	 	632	 	
 	86	 	 	Business	 	 	2,778	 	 	 	3,410	 	 	 	3,689	 	 	 	3,028	 	 	 	12,905	 	 	 	86	 	

 	 	 	 	

 	 	 	 	
 	 	
 	87	 	 	Total	 	 	4,941	 	 	 	5,856	 	 	 	7,372	 	 	 	5,167	 	 	 	23,336	 	 	 	718	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,673	 	 	 	3,068	 	 	 	4,766	 	 	 	2,532	 	 	 	13,025	 	 	 	(287	)	
 	89	 	 	Business	 	 	27,896	 	 	 	34,258	 	 	 	36,691	 	 	 	30,011	 	 	 	128,885	 	 	 	(4,152	)	
 	 	 	 	RETAIL USAGE -
WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,700	 	 	 	3,074	 	 	 	4,614	 	 	 	2,634	 	 	 	13,009	 	 	 	387	 	
 	91	 	 	Business	 	 	27,966	 	 	 	34,067	 	 	 	36,773	 	 	 	29,928	 	 	 	128,756	 	 	 	(1,786	)	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,921	 	 	 	5,425	 	 	 	5,803	 	 	 	3,828	 	 	 	5,803	 	 	 	116	 	

See Glossary of Terms.	 	Page 6 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	Nuclear	 	 	2,257	 	 	 	2,242	 	 	 	2,387	 	 	 	2,095	 	 	 	8,981	 	 	 	596	 	
 	94	 	 	Coal	 	 	2,890	 	 	 	2,703	 	 	 	3,280	 	 	 	3,183	 	 	 	12,056	 	 	 	(516	)	
 	95	 	 	Gas, oil and other	 	 	337	 	 	 	659	 	 	 	1,918	 	 	 	1,455	 	 	 	4,369	 	 	 	375	 	

 	 	 	 	

 	 	 	 	
 	 	
 	96	 	 	Total	 	 	5,484	 	 	 	5,604	 	 	 	7,585	 	 	 	6,733	 	 	 	25,406	 	 	 	455	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	Firm load	 	 	70	 	 	 	846	 	 	 	859	 	 	 	(157	)	 	 	1,619	 	 	 	(1,342	)	
 	98	 	 	Marketing and trading	 	 	3,993	 	 	 	4,599	 	 	 	8,771	 	 	 	6,340	 	 	 	23,704	 	 	 	6,051	 	

 	 	 	 	

 	 	 	 	
 	 	
 	99	 	 	Total	 	 	4,063	 	 	 	5,445	 	 	 	9,630	 	 	 	6,183	 	 	 	25,323	 	 	 	4,709	 	

 	 	 	 	

 	 	 	 	
 	 	
 	100	 	 	Total energy sources	 	 	9,547	 	 	 	11,049	 	 	 	17,215	 	 	 	12,916	 	 	 	50,729	 	 	 	5,164	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	Nuclear	 	 	96	%	 	 	95	%	 	 	100	%	 	 	87	%	 	 	94	%	 	 	6	%	
 	102	 	 	Coal	 	 	78	%	 	 	72	%	 	 	87	%	 	 	84	%	 	 	80	%	 	 	(4	)%	
 	103	 	 	Gas, oil and other	 	 	12	%	 	 	20	%	 	 	38	%	 	 	29	%	 	 	27	%	 	 	(10	)%	
 	104	 	 	System average	 	 	62	%	 	 	62	%	 	 	69	%	 	 	60	%	 	 	63	%	 	 	(7	)%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Nuclear	 	 	62	 	 	 	66	 	 	 	12	 	 	 	129	 	 	 	67	 	 	 	(60	)	
 	106	 	 	Coal	 	 	184	 	 	 	279	 	 	 	88	 	 	 	116	 	 	 	167	 	 	 	—	 	
 	107	 	 	Gas	 	 	12	 	 	 	18	 	 	 	106	 	 	 	54	 	 	 	48	 	 	 	16	 	
 	108	 	 	Total	 	 	258	 	 	 	363	 	 	 	206	 	 	 	299	 	 	 	282	 	 	 	(44	)	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	11.57	 	 	$	11.89	 	 	$	14.84	 	 	$	13.05	 	 	$	13.01	 	 	$	(3.21	)	

See Glossary of Terms.	 	Page 7 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2002

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Year-To-Date
	 	vs Prior YTD
	
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	Palo Verde	 	$	26.86	 	 	$	30.65	 	 	$	35.45	 	 	$	36.18	 	 	$	32.28	 	 	$	(86.13	)	
 	111	 	 	SP15	 	$	28.46	 	 	$	31.51	 	 	$	35.55	 	 	$	41.35	 	 	$	34.22	 	 	$	(85.77	)	
 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	Palo Verde	 	$	22.17	 	 	$	14.10	 	 	$	18.21	 	 	$	25.09	 	 	$	19.89	 	 	$	(41.68	)	
 	113	 	 	SP15	 	$	22.76	 	 	$	15.95	 	 	$	19.54	 	 	$	28.52	 	 	$	21.69	 	 	$	(51.79	)	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	Cooling degree-days	 	 	89	 	 	 	1,741	 	 	 	2,647	 	 	 	398	 	 	 	4,875	 	 	 	(247	)	
 	115	 	 	Heating degree-days	 	 	472	 	 	 	—	 	 	 	—	 	 	 	328	 	 	 	800	 	 	 	(360	)	
 	116	 	 	Average humidity	 	 	28	%	 	 	16	%	 	 	27	%	 	 	38	%	 	 	27	%	 	 	(9	)%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	2,540	 	 	 	420	 	 	 	4,531	 	 	 	—	 	
 	118	 	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	—	 	 	 	415	 	 	 	972	 	 	 	—	 	
 	119	 	 	Average humidity	 	 	43	%	 	 	24	%	 	 	33	%	 	 	40	%	 	 	35	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	Single-family	 	 	7,682	 	 	 	9,666	 	 	 	8,689	 	 	 	8,275	 	 	 	34,312	 	 	 	1,447	 	
 	121	 	 	Multi-family	 	 	1,249	 	 	 	2,005	 	 	 	2,662	 	 	 	1,158	 	 	 	7,074	 	 	 	(1,930	)	

 	 	 	 	

 	 	 	 	
 	 	
 	122	 	 	Total	 	 	8,931	 	 	 	11,671	 	 	 	11,351	 	 	 	9,433	 	 	 	41,386	 	 	 	(483	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	Payroll job growth (% over prior year)	 	 	(0.8	)%	 	 	(0.2	)%	 	 	0.1	%	 	 	0.9	%	 	 	0.0	%	 	 	(1.0	)%	
 	124	 	 	Unemployment rate (%, seasonally adjusted)	 	 	6.2	%	 	 	6.2	%	 	 	6.2	%	 	 	6.0	%	 	 	6.2	%	 	 	1.5	%	
Sources:

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

See Glossary of Terms.	 	Page 8 of 8	

 

Exhibit 99.6
Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	1	 	 	Arizona Public Service	 	$	65	 	 	$	70	 	 	$	108	 	 	$	39	 	 	$	281	 	 	$	(26	)	
 	2	 	 	Pinnacle West Energy	 	 	—	 	 	 	1	 	 	 	13	 	 	 	4	 	 	 	18	 	 	 	20	 	
 	3	 	 	APS Energy Services	 	 	(8	)	 	 	—	 	 	 	(3	)	 	 	—	 	 	 	(10	)	 	 	3	 	
 	4	 	 	SunCor	 	 	—	 	 	 	—	 	 	 	2	 	 	 	—	 	 	 	3	 	 	 	(8	)	
 	5	 	 	El Dorado	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(2	)	
 	6	 	 	Parent Company	 	 	4	 	 	 	(4	)	 	 	42	 	 	 	(7	)	 	 	35	 	 	 	38	 	

 	 	 	 	

 	 	 	 	
 	 	
 	7	 	 	Income Before Accounting Change	 	 	62	 	 	 	67	 	 	 	162	 	 	 	36	 	 	 	327	 	 	 	25	 	
 	8	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	(3	)	 	 	—	 	 	 	(12	)	 	 	—	 	 	 	(15	)	 	 	(15	)	

 	 	 	 	

 	 	 	 	
 	 	
 	9	 	 	Net Income	 	$	59	 	 	$	67	 	 	$	150	 	 	$	36	 	 	$	312	 	 	$	10	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	EARNINGS PER SHARE
BY SUBSIDIARY - DILUTED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	10	 	 	Arizona Public Service	 	$	0.76	 	 	$	0.82	 	 	$	1.27	 	 	$	0.46	 	 	$	3.30	 	 	$	(0.31	)	
 	11	 	 	Pinnacle West Energy	 	 	—	 	 	 	0.02	 	 	 	0.16	 	 	 	0.04	 	 	 	0.21	 	 	 	0.24	 	
 	12	 	 	APS Energy Services	 	 	(0.10	)	 	 	—	 	 	 	(0.03	)	 	 	—	 	 	 	(0.12	)	 	 	0.04	 	
 	13	 	 	SunCor	 	 	0.01	 	 	 	—	 	 	 	0.03	 	 	 	0.01	 	 	 	0.04	 	 	 	(0.10	)	
 	14	 	 	El Dorado	 	 	0.01	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(0.02	)	
 	15	 	 	Parent Company	 	 	0.05	 	 	 	(0.05	)	 	 	0.49	 	 	 	(0.09	)	 	 	0.42	 	 	 	0.44	 	

 	 	 	 	

 	 	 	 	
 	 	
 	16	 	 	Income Before Accounting Change	 	 	0.73	 	 	 	0.79	 	 	 	1.92	 	 	 	0.42	 	 	 	3.85	 	 	 	0.29	 	
 	17	 	 	Cumulative Effect of Change in Accounting - Net of Tax	 	 	(0.03	)	 	 	—	 	 	 	(0.15	)	 	 	—	 	 	 	(0.17	)	 	 	(0.17	)	

 	 	 	 	

 	 	 	 	
 	 	
 	18	 	 	Net Income	 	$	0.70	 	 	$	0.79	 	 	$	1.77	 	 	$	0.42	 	 	$	3.68	 	 	$	0.12	 	

 	 	 	 	

 	 	 	 	
 	 	
 	19	 	 	BOOK VALUE PER SHARE	 	$	28.83	 	 	$	28.17	 	 	$	29.37	 	 	$	29.46	 	 	$	29.46	 	 	$	1.37	 	
 	 	 	 	COMMON SHARES OUTSTANDING -
DILUTED (Thousands)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20	 	 	Average	 	 	84,966	 	 	 	85,042	 	 	 	84,909	 	 	 	84,824	 	 	 	84,930	 	 	 	(5	)	
 	21	 	 	End of Period	 	 	84,718	 	 	 	84,713	 	 	 	84,663	 	 	 	84,724	 	 	 	84,724	 	 	 	9	 	
 	 	 	
See Glossary of Terms.	 	Page 1 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	ELECTRIC OPERATING REVENUES
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	22	 	 	Residential	 	$	173	 	 	$	234	 	 	$	328	 	 	$	180	 	 	$	915	 	 	$	34	 	
 	23	 	 	Business	 	 	199	 	 	 	258	 	 	 	276	 	 	 	219	 	 	 	952	 	 	 	17	 	

 	 	 	 	

 	 	 	 	
 	 	
 	24	 	 	Total retail	 	 	372	 	 	 	492	 	 	 	604	 	 	 	399	 	 	 	1,867	 	 	 	51	 	
 	 	 	 	Wholesale revenue on delivered electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	25	 	 	Traditional contracts	 	 	26	 	 	 	55	 	 	 	(10	)	 	 	2	 	 	 	73	 	 	 	(48	)	
 	26	 	 	Retail load hedge management	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(561	)	
 	27	 	 	Transmission for others	 	 	4	 	 	 	5	 	 	 	9	 	 	 	8	 	 	 	26	 	 	 	11	 	
 	28	 	 	Other miscellaneous services	 	 	6	 	 	 	5	 	 	 	6	 	 	 	1	 	 	 	18	 	 	 	(9	)	

 	 	 	 	

 	 	 	 	
 	 	
 	29	 	 	Total regulated electricity	 	 	408	 	 	 	557	 	 	 	609	 	 	 	410	 	 	 	1,984	 	 	 	(556	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	30	 	 	Generation sales other than native load	 	 	87	 	 	 	51	 	 	 	4	 	 	 	6	 	 	 	148	 	 	 	32	 	
 	31	 	 	Realized margin on electricity trading (a)	 	 	(15	)	 	 	20	 	 	 	12	 	 	 	53	 	 	 	70	 	 	 	14	 	
 	32	 	 	Other delivered electricity (a)	 	 	45	 	 	 	16	 	 	 	54	 	 	 	17	 	 	 	132	 	 	 	(110	)	

 	 	 	 	

 	 	 	 	
 	 	
 	33	 	 	Total delivered marketing and trading	 	 	117	 	 	 	87	 	 	 	70	 	 	 	76	 	 	 	350	 	 	 	(64	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Other Marketing and Trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	34	 	 	Realized margins on delivered commodities other than electricity (a)	 	 	(5	)	 	 	(12	)	 	 	(1	)	 	 	4	 	 	 	(14	)	 	 	(5	)	
 	35	 	 	Prior period mark-to-market (gains) losses on contracts delivered during current period (a)	 	 	13	 	 	 	5	 	 	 	(37	)	 	 	(50	)	 	 	6	 	 	 	8	 	
 	36	 	 	Change in mark-to-market for future-period deliveries	 	 	47	 	 	 	36	 	 	 	129	 	 	 	(9	)	 	 	128	 	 	 	114	 	

 	 	 	 	

 	 	 	 	
 	 	
 	37	 	 	Total other marketing and trading	 	 	55	 	 	 	29	 	 	 	91	 	 	 	(55	)	 	 	120	 	 	 	117	 	

 	 	 	 	

 	 	 	 	
 	 	
 	38	 	 	Total marketing and trading	 	 	172	 	 	 	116	 	 	 	161	 	 	 	21	 	 	 	470	 	 	 	53	 	

 	 	 	 	

 	 	 	 	
 	 	
 	39	 	 	Total electric operating revenues	 	$	580	 	 	$	673	 	 	$	770	 	 	$	431	 	 	$	2,454	 	 	$	(503	)	

 	 	 	 	

 	 	 	 	

(a)	 	The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 35 are included in lines 31, 32 and 34. For example, line 35 shows that a prior-period mark-to-market loss of $6 million was transferred to “realized” for the total year 2001. Lines 31, 32 and 34 include amounts totaling $6 million of realized loss for the total year 2001.	
 	 	 	
See Glossary of Terms.	 	Page 2 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	ELECTRIC SALES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Regulated Electricity Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	40	 	 	Residential	 	 	2,121	 	 	 	2,467	 	 	 	3,597	 	 	 	2,149	 	 	 	10,335	 	 	 	554	 	
 	41	 	 	Business	 	 	2,824	 	 	 	3,445	 	 	 	3,724	 	 	 	3,071	 	 	 	13,064	 	 	 	310	 	

 	 	 	 	

 	 	 	 	
 	 	
 	42	 	 	Total retail	 	 	4,945	 	 	 	5,912	 	 	 	7,321	 	 	 	5,220	 	 	 	23,399	 	 	 	864	 	
 	 	 	 	Wholesale electricity delivered	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	43	 	 	Traditional contracts	 	 	569	 	 	 	598	 	 	 	(37	)	 	 	83	 	 	 	1,213	 	 	 	(397	)	
 	44	 	 	Retail load hedge management	 	 	75	 	 	 	736	 	 	 	1,847	 	 	 	382	 	 	 	3,040	 	 	 	(3,634	)	

 	 	 	 	

 	 	 	 	
 	 	
 	45	 	 	Total regulated electricity	 	 	5,589	 	 	 	7,246	 	 	 	9,131	 	 	 	5,685	 	 	 	27,652	 	 	 	(3,167	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Marketing and Trading Segment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Delivered marketing and trading	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	46	 	 	Generation sales other than native load	 	 	623	 	 	 	436	 	 	 	73	 	 	 	256	 	 	 	1,388	 	 	 	(106	)	
 	47	 	 	Electricity trading	 	 	2,751	 	 	 	2,975	 	 	 	3,725	 	 	 	4,136	 	 	 	13,587	 	 	 	4,328	 	
 	48	 	 	Other delivered electricity	 	 	299	 	 	 	194	 	 	 	95	 	 	 	438	 	 	 	1,026	 	 	 	(1,934	)	

 	 	 	 	

 	 	 	 	
 	 	
 	49	 	 	Total delivered marketing and trading	 	 	3,673	 	 	 	3,605	 	 	 	3,893	 	 	 	4,830	 	 	 	16,001	 	 	 	2,288	 	

 	 	 	 	

 	 	 	 	
 	 	
 	50	 	 	Total electric sales	 	 	9,263	 	 	 	10,851	 	 	 	13,024	 	 	 	10,515	 	 	 	43,653	 	 	 	(879	)	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 3 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized and Mark-To-Market Components	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Current Period Effects	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Realized margin on delivered commodities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	51	 	 	Generation sales other than native load	 	$	48	 	 	$	26	 	 	$	3	 	 	$	3	 	 	$	80	 	 	$	26	 	
 	52	 	 	Other electricity marketing and trading (a)	 	 	4	 	 	 	43	 	 	 	14	 	 	 	56	 	 	 	117	 	 	 	48	 	

 	 	 	 	

 	 	 	 	
 	 	
 	53	 	 	Total electricity	 	 	52	 	 	 	69	 	 	 	17	 	 	 	59	 	 	 	197	 	 	 	74	 	
 	54	 	 	Other commodities (a)	 	 	(5	)	 	 	(12	)	 	 	(1	)	 	 	4	 	 	 	(14	)	 	 	(5	)	

 	 	 	 	

 	 	 	 	
 	 	
 	55	 	 	Total realized margin	 	 	47	 	 	 	57	 	 	 	16	 	 	 	63	 	 	 	183	 	 	 	69	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Prior-period mark-to-market (gains) losses on contracts delivered during current period	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	56	 	 	Electricity (a)	 	 	1	 	 	 	—	 	 	 	(38	)	 	 	(38	)	 	 	(11	)	 	 	(9	)	
 	57	 	 	Other commodities (a)	 	 	12	 	 	 	5	 	 	 	1	 	 	 	(4	)	 	 	25	 	 	 	25	 	
 	58	 	 	Charge related to trading activities with Enron and its affiliates	 	 	—	 	 	 	—	 	 	 	—	 	 	 	(8	)	 	 	(8	)	 	 	(8	)	

 	 	 	 	

 	 	 	 	
 	 	
 	59	 	 	Subtotal	 	 	13	 	 	 	5	 	 	 	(37	)	 	 	(50	)	 	 	6	 	 	 	8	 	

 	 	 	 	

 	 	 	 	
 	 	
 	60	 	 	Total current period effects (b)	 	 	60	 	 	 	62	 	 	 	(21	)	 	 	13	 	 	 	189	 	 	 	77	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Change in mark-to-market gains (losses) for future period deliveries (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	61	 	 	Electricity	 	 	45	 	 	 	42	 	 	 	126	 	 	 	(2	)	 	 	146	 	 	 	139	 	
 	62	 	 	Other commodities	 	 	2	 	 	 	(6	)	 	 	3	 	 	 	(7	)	 	 	(18	)	 	 	(25	)	

 	 	 	 	

 	 	 	 	
 	 	
 	63	 	 	Total future period effects	 	 	47	 	 	 	36	 	 	 	129	 	 	 	(9	)	 	 	128	 	 	 	114	 	

 	 	 	 	

 	 	 	 	
 	 	
 	64	 	 	Total gross margin	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	

 	 	 	 	

 	 	 	 	
 	 	
Future Marketing and Trading Mark-to-Market Realization
As of December 31, 2001, Pinnacle West had accumulated mark-to-market net gains of $138.0 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2002, $43.0 million; 2003, $22.6 million; 2004, $23.6 million; 2005 and thereafter, $48.8 million.

(a)	 	The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 and in line 64 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $11 million was transferred to “realized” for the total year 2001. A $11 million realized gain is included in the $117 million on line 52 for the total year 2001.	
 		
(b)	 	Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.	
 	 	 	
See Glossary of Terms.	 	Page 4 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	By Commodity Sold or Traded	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	65	 	 	Electricity	 	$	98	 	 	$	111	 	 	$	105	 	 	$	15	 	 	$	328	 	 	$	201	 	
 	66	 	 	Natural gas	 	 	(3	)	 	 	(12	)	 	 	9	 	 	 	(3	)	 	 	(8	)	 	 	(15	)	
 	67	 	 	Coal	 	 	14	 	 	 	2	 	 	 	(2	)	 	 	(6	)	 	 	7	 	 	 	10	 	
 	68	 	 	Emission allowances	 	 	(2	)	 	 	(3	)	 	 	(4	)	 	 	(2	)	 	 	(10	)	 	 	(5	)	
 	69	 	 	Other	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	
 	 	
 	70	 	 	Total gross margin	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	By Pinnacle West Entity	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Parent company marketing and trading division	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	71	 	 	Generation sales other than native load	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
 	72	 	 	Other marketing and trading	 	 	7	 	 	 	3	 	 	 	74	 	 	 	(6	)	 	 	78	 	 	 	80	 	
 	 	 	 	APS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	73	 	 	Generation sales other than native load	 	 	48	 	 	 	26	 	 	 	2	 	 	 	3	 	 	 	79	 	 	 	25	 	
 	74	 	 	Other marketing and trading	 	 	53	 	 	 	68	 	 	 	32	 	 	 	3	 	 	 	156	 	 	 	82	 	
 	 	 	 	Pinnacle West Energy	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	75	 	 	Generation sales other than native load	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	76	 	 	Other marketing and trading	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
 	 	 	 	APS ES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	77	 	 	Other marketing and trading	 	 	(1	)	 	 	1	 	 	 	—	 	 	 	4	 	 	 	4	 	 	 	4	 	

 	 	 	 	

 	 	 	 	
 	 	
 	78	 	 	Total gross margin before income taxes	 	$	107	 	 	$	98	 	 	$	108	 	 	$	4	 	 	$	317	 	 	$	191	 	

 	 	 	 	

 	 	 	 	

See Glossary of Terms.	 	Page 5 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	AVERAGE ELECTRIC CUSTOMERS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Retail customers	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	79	 	 	Residential	 	 	775,317	 	 	 	770,335	 	 	 	773,321	 	 	 	786,382	 	 	 	776,339	 	 	 	27,054	 	
 	80	 	 	Business	 	 	97,222	 	 	 	98,065	 	 	 	98,874	 	 	 	98,631	 	 	 	98,198	 	 	 	4,070	 	

 	 	 	 	

 	 	 	 	
 	 	
 	81	 	 	Total	 	 	872,539	 	 	 	868,400	 	 	 	872,195	 	 	 	885,013	 	 	 	874,537	 	 	 	31,124	 	
 	82	 	 	Wholesale customers	 	 	68	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	66	 	 	 	(1	)	

 	 	 	 	

 	 	 	 	
 	 	
 	83	 	 	Total customers	 	 	872,607	 	 	 	868,466	 	 	 	872,261	 	 	 	885,079	 	 	 	874,603	 	 	 	31,123	 	

 	 	 	 	

 	 	 	 	
 	 	
 	84	 	 	Customer Growth (% over prior year)	 	 	4.0	%	 	 	3.9	%	 	 	3.7	%	 	 	3.2	%	 	 	3.7	%	 	 	(0.4	)%	
 	 	 	 	RETAIL SALES (GWH) -
WEATHER NORMALIZED	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	85	 	 	Residential	 	 	2,033	 	 	 	2,233	 	 	 	3,410	 	 	 	2,123	 	 	 	9,799	 	 	 	122	 	
 	86	 	 	Business	 	 	2,823	 	 	 	3,328	 	 	 	3,658	 	 	 	3,010	 	 	 	12,819	 	 	 	79	 	

 	 	 	 	

 	 	 	 	
 	 	
 	87	 	 	Total	 	 	4,856	 	 	 	5,561	 	 	 	7,068	 	 	 	5,133	 	 	 	22,618	 	 	 	201	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	RETAIL USAGE
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	88	 	 	Residential	 	 	2,737	 	 	 	3,203	 	 	 	4,651	 	 	 	2,733	 	 	 	13,312	 	 	 	259	 	
 	89	 	 	Business	 	 	29,047	 	 	 	35,130	 	 	 	37,666	 	 	 	31,136	 	 	 	133,037	 	 	 	133,037	 	
 	 	 	 	RETAIL USAGE -
WEATHER NORMALIZED
(KWh/Average Customer)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	90	 	 	Residential	 	 	2,622	 	 	 	2,899	 	 	 	4,410	 	 	 	2,700	 	 	 	12,622	 	 	 	(293	)	
 	91	 	 	Business	 	 	29,037	 	 	 	33,937	 	 	 	36,997	 	 	 	30,518	 	 	 	130,542	 	 	 	(4,806	)	
 	 	 	 	ELECTRICITY DEMAND (MW)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	92	 	 	System peak demand	 	 	3,661	 	 	 	5,358	 	 	 	5,687	 	 	 	3,898	 	 	 	5,687	 	 	 	209	 	
 	 	 	
See Glossary of Terms.	 	Page 6 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	ENERGY SOURCES (GWH)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Generation production	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	93	 	 	Nuclear	 	 	2,261	 	 	 	1,985	 	 	 	2,320	 	 	 	1,819	 	 	 	8,385	 	 	 	(456	)	
 	94	 	 	Coal	 	 	2,901	 	 	 	3,245	 	 	 	3,223	 	 	 	3,203	 	 	 	12,572	 	 	 	63	 	
 	95	 	 	Gas, oil and other	 	 	1,007	 	 	 	1,256	 	 	 	1,157	 	 	 	574	 	 	 	3,994	 	 	 	1,210	 	

 	 	 	 	

 	 	 	 	
 	 	
 	96	 	 	Total	 	 	6,169	 	 	 	6,486	 	 	 	6,700	 	 	 	5,596	 	 	 	24,951	 	 	 	817	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Purchased power	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	97	 	 	Firm load	 	 	170	 	 	 	845	 	 	 	1,734	 	 	 	212	 	 	 	2,961	 	 	 	446	 	
 	98	 	 	Marketing and trading	 	 	3,126	 	 	 	3,905	 	 	 	5,667	 	 	 	4,955	 	 	 	17,653	 	 	 	(1,240	)	

 	 	 	 	

 	 	 	 	
 	 	
 	99	 	 	Total	 	 	3,296	 	 	 	4,750	 	 	 	7,401	 	 	 	5,167	 	 	 	20,614	 	 	 	(794	)	

 	 	 	 	

 	 	 	 	
 	 	
 	100	 	 	Total energy sources	 	 	9,465	 	 	 	11,236	 	 	 	14,101	 	 	 	10,763	 	 	 	45,565	 	 	 	23	 	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	POWER PLANT PERFORMANCE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Capacity Factors	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101	 	 	Nuclear	 	 	96	%	 	 	84	%	 	 	97	%	 	 	76	%	 	 	88	%	 	 	(5	)%	
 	102	 	 	Coal	 	 	78	%	 	 	87	%	 	 	85	%	 	 	85	%	 	 	84	%	 	 	1	%	
 	103	 	 	Gas, oil and other	 	 	39	%	 	 	46	%	 	 	38	%	 	 	20	%	 	 	37	%	 	 	10	%	
 	104	 	 	System average	 	 	71	%	 	 	73	%	 	 	73	%	 	 	62	%	 	 	70	%	 	 	1	%	
 	 	 	 	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	105	 	 	Nuclear	 	 	57	 	 	 	180	 	 	 	26	 	 	 	246	 	 	 	127	 	 	 	47	 	
 	106	 	 	Coal	 	 	284	 	 	 	166	 	 	 	129	 	 	 	90	 	 	 	167	 	 	 	13	 	
 	107	 	 	Gas	 	 	36	 	 	 	52	 	 	 	24	 	 	 	16	 	 	 	32	 	 	 	10	 	
 	108	 	 	Total	 	 	376	 	 	 	398	 	 	 	179	 	 	 	352	 	 	 	326	 	 	 	70	 	
 	109	 	 	Generation Fuel Cost ($/MWh)	 	$	19.64	 	 	$	19.28	 	 	$	13.21	 	 	$	12.51	 	 	$	16.22	 	 	$	2.50	 	
 	 	 	
See Glossary of Terms.	 	Page 7 of 8	

 

Pinnacle West Capital Corporation
Consolidated Statistics By Quarter
2001

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Increase	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	(Decrease)	
Line
	 	 	 	1st Qtr
	 	2nd Qtr
	 	3rd Qtr
	 	4th Qtr
	 	Total Year
	 	vs Prior Year
	
 	 	 	 	ENERGY MARKET INDICATORS (a)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Electricity Average Daily Spot Prices ($/MWh)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	On-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	110	 	 	Palo Verde	 	$	214.21	 	 	$	182.71	 	 	$	49.80	 	 	$	26.89	 	 	$	118.41	 	 	$	6.98	 	
 	111	 	 	SP15	 	$	219.66	 	 	$	186.30	 	 	$	45.61	 	 	$	28.38	 	 	$	119.99	 	 	$	12.64	 	
 	 	 	 	Off-Peak	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	112	 	 	Palo Verde	 	$	130.40	 	 	$	70.32	 	 	$	27.22	 	 	$	18.33	 	 	$	61.57	 	 	$	8.55	 	
 	113	 	 	SP15	 	$	159.80	 	 	$	84.78	 	 	$	28.92	 	 	$	20.41	 	 	$	73.48	 	 	$	12.74	 	
 	 	 	 	WEATHER INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Actual	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	114	 	 	Cooling degree-days	 	 	106	 	 	 	1,733	 	 	 	2,663	 	 	 	620	 	 	 	5,122	 	 	 	539	 	
 	115	 	 	Heating degree-days	 	 	657	 	 	 	43	 	 	 	—	 	 	 	460	 	 	 	1,160	 	 	 	192	 	
 	116	 	 	Average humidity	 	 	50	%	 	 	25	%	 	 	31	%	 	 	39	%	 	 	36	%	 	 	2	%	
 	 	 	 	10-Year Averages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	117	 	 	Cooling degree-days	 	 	80	 	 	 	1,491	 	 	 	2,540	 	 	 	420	 	 	 	4,531	 	 	 	—	 	
 	118	 	 	Heating degree-days	 	 	521	 	 	 	36	 	 	 	—	 	 	 	415	 	 	 	972	 	 	 	—	 	
 	119	 	 	Average humidity	 	 	43	%	 	 	24	%	 	 	33	%	 	 	40	%	 	 	35	%	 	 	0	%	
 	 	 	 	ECONOMIC INDICATORS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Building Permits — Metro Phoenix (b)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	120	 	 	Single-family	 	 	8,783	 	 	 	9,394	 	 	 	8,384	 	 	 	6,304	 	 	 	32,865	 	 	 	356	 	
 	121	 	 	Multi-family	 	 	3,925	 	 	 	1,833	 	 	 	2,514	 	 	 	732	 	 	 	9,004	 	 	 	(1,224	)	

 	 	 	 	

 	 	 	 	
 	 	
 	122	 	 	Total	 	 	12,708	 	 	 	11,227	 	 	 	10,898	 	 	 	7,036	 	 	 	41,869	 	 	 	(868	)	

 	 	 	 	

 	 	 	 	
 	 	
 	 	 	 	Arizona Job Growth (c)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	123	 	 	Payroll job growth (% over prior year)	 	 	2.4	%	 	 	1.5	%	 	 	0.8	%	 	 	(0.7	)%	 	 	1.0	%	 	 	(2.7	)%	
 	124	 	 	Unemployment rate (%, seasonally adjusted)	 	 	3.9	%	 	 	4.4	%	 	 	4.9	%	 	 	5.7	%	 	 	4.7	%	 	 	0.8	%	

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

 

Exhibit 99.7
Pinnacle West Capital Corporation
Earnings Variance Explanations
For Periods Ended June 30, 2004 and 2003
     This discussion explains the changes in our consolidated earnings for the three and six month periods ended June 30, 2004 and 2003. Condensed Consolidated Statements of Income for the three and six months ended June 30, 2004 and 2003 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2004 on or before August 9, 2004. We have reclassified certain prior period amounts to conform to our current period presentation. Additional operating and financial statistics and a glossary of terms are available on our website (www.pinnaclewest.com).
EARNINGS CONTRIBUTIONS BY SUBSIDIARY AND BUSINESS SEGMENT
     We have three principal business segments (determined by services and the regulatory environment):

•	 	our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses and related activities, and includes electricity generation, transmission and distribution;	

•	 	our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services’ commodity-related energy services; and	

•	 	our real estate segment, which consists of SunCor’s real estate development and investment activities.	
     The following tables summarize net income and segment details for the three and six months ended June 30, 2004 and the comparable prior year period for Pinnacle West and each of our subsidiaries (dollars in millions):

  	 	Total
	 	Regulated Electricity
	 	Marketing and Trading
	 	Real Estate
	 	Other
	
Three months ended
June 30,	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	
APS (a)	 	$	54	 	 	$	43	 	 	$	55	 	 	$	42	 	 	$	(1	)	 	$	1	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Pinnacle West Energy (a) (b)	 	 	(12	)	 	 	2	 	 	 	(22	)	 	 	2	 	 	 	10	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
APS Energy Services	 	 	1	 	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	1	 	
SunCor	 	 	4	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	4	 	 	 	2	 	 	 	—	 	 	 	—	 	
El Dorado (b) (c)	 	 	36	 	 	 	2	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	36	 	 	 	2	 	
Parent company (b) (c)	 	 	(12	)	 	 	1	 	 	 	4	 	 	 	—	 	 	 	(2	)	 	 	2	 	 	 	—	 	 	 	—	 	 	 	(14	)	 	 	(1	)	

 	 	 	 	

 	 	 	 	

 	 	 	 	

Income from continuing operations	 	 	71	 	 	 	55	 	 	 	37	 	 	 	44	 	 	 	7	 	 	 	7	 	 	 	4	 	 	 	2	 	 	 	23	 	 	 	2	 	
Discontinued operations – net of income tax expense	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	

 	 	 	 	

Net income	 	$	71	 	 	$	56	 	 	$	37	 	 	$	44	 	 	$	7	 	 	$	7	 	 	$	4	 	 	$	3	 	 	$	23	 	 	$	2	 	

 	 	 	 	

 	 	 	 	

 	 	 	 	

 

 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
  	 	Total
	 	Regulated Electricity
	 	Marketing and Trading
	 	Real Estate
	 	Other
	
Six months ended
June 30,	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	 	2004
	 	2003
	
APS (a)	 	$	87	 	 	$	59	 	 	$	93	 	 	$	56	 	 	$	(6	)	 	$	3	 	 	$	—	 	 	$	—	 	 	$	—	 	 	$	—	 	
Pinnacle West Energy (a) (b)	 	 	(30	)	 	 	8	 	 	 	(50	)	 	 	8	 	 	 	20	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	
APS Energy Services	 	 	3	 	 	 	13	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	10	 	 	 	—	 	 	 	—	 	 	 	2	 	 	 	3	 	
SunCor	 	 	5	 	 	 	4	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	5	 	 	 	4	 	 	 	—	 	 	 	—	 	
El Dorado (b) (c)	 	 	36	 	 	 	5	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	36	 	 	 	5	 	
Parent company (b) (c)	 	 	—	 	 	 	(14	)	 	 	11	 	 	 	(12	)	 	 	2	 	 	 	1	 	 	 	—	 	 	 	—	 	 	 	(13	)	 	 	(3	)	

 	 	 	 	

 	 	 	 	

 	 	 	 	

Income from continuing operations	 	 	101	 	 	 	75	 	 	 	54	 	 	 	52	 	 	 	17	 	 	 	14	 	 	 	5	 	 	 	4	 	 	 	25	 	 	 	5	 	
Discontinued operations – net of income tax expense	 	 	1	 	 	 	6	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	—	 	 	 	1	 	 	 	6	 	 	 	—	 	 	 	—	 	

 	 	 	 	

 	 	 	 	

 	 	 	 	

Net income	 	$	102	 	 	$	81	 	 	$	54	 	 	$	52	 	 	$	17	 	 	$	14	 	 	$	6	 	 	$	10	 	 	$	25	 	 	$	5	 	

 	 	 	 	

 	 	 	 	

 	 	 	 	

(a)	 	Consistent with APS’ October 2001 ACC filing, APS entered into contracts with its affiliates to buy power through June 2003. The contracts reflected prices based on the fully-dispatchable dedication of the Pinnacle West Energy generating assets to APS’ Native Load customers (customers receiving power under traditional cost-based rate regulation). Beginning July 1, 2003, under the ACC Track B Order, APS was required to solicit bids for certain estimated capacity and energy requirements. Pinnacle West Energy bid on and entered into a contract to supply most of these purchase power requirements in summer months through September 2006.	

(b)	 	Pinnacle West Energy’s net loss in 2004 and El Dorado’s net income in 2003 and 2004 are reported before income taxes. The income tax expense or benefit for these subsidiaries is recorded at the parent company.	

(c)	 	The three and six months ended June 30, 2004 include a $35 million gain ($21 million after-tax) related to the sale of El Dorado’s limited partnership interest in the Phoenix Suns.	
Results of Operations
      General
     Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to electric operating revenues less purchased power and fuel costs. Our real estate segment gross margin refers to real estate revenues less real estate operations costs of SunCor. Other gross margin refers to other operating revenues less other operating expenses, which primarily includes El Dorado’s investment in NAC and APS Energy Services’ non-commodity services.
2

 

Operating Results – Three-month period ended June 30, 2004 compared with the three-month period ended June 30, 2003
     Our consolidated net income for the three months ended June 30, 2004 was $71 million compared with $56 million for the prior year period. The $15 million increase in the period-to-period comparison reflects the following changes in earnings by segment:

•	 	Regulated Electricity Segment – Net income decreased approximately $7 million primarily due to higher costs related to new power plants placed in service in mid 2003 and mid 2004; higher replacement power costs from unplanned plant outages due to higher market prices; and a retail electricity price reduction. These negative factors were partially offset by lower regulatory asset amortization and customer growth.	

•	 	Marketing and Trading Segment – Net income was flat in the period-to-period comparison. Higher prices for wholesale sales of electricity were offset by lower margins in California for APS Energy Services.	

•	 	Other Segment – Net income increased approximately $21 million primarily due to a gain at El Dorado related to the sale of El Dorado’s limited partnership interest in the Phoenix Suns, which resulted in an after-tax gain of $21 million.	
3

 

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

  	 	Increase (Decrease)
	
 	 	Pretax
	 	After Tax
	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher replacement power costs from unplanned plant outages due to higher market prices	 	$	(8	)	 	$	(5	)	
Retail electricity price reduction effective July 1, 2003	 	 	(7	)	 	 	(4	)	
Increased purchased power and fuel costs due to higher hedged fuel and power prices	 	 	(4	)	 	 	(2	)	
Higher retail sales volumes due to customer growth, excluding weather effects	 	 	11	 	 	 	7	 	
Miscellaneous factors, net	 	 	(6	)	 	 	(4	)	

 	 	
Net decrease in regulated electricity segment gross margin	 	 	(14	)	 	 	(8	)	

 	 	
Marketing and trading segment gross margin:	 	 	 	 	 	 	 	 	
Higher mark-to-market gains for future delivery due to higher forward prices for wholesale electricity	 	 	5	 	 	 	3	 	
Higher realized margins on wholesale sales primarily due to higher prices	 	 	4	 	 	 	2	 	
Lower competitive retail unit margins in California by APS Energy Services	 	 	(8	)	 	 	(5	)	

 	 	
Net increase in marketing and trading segment gross margin	 	 	1	 	 	 	—	 	

 	 	
Net decrease in regulated electricity and marketing and trading segments’ gross margins	 	 	(13	)	 	 	(8	)	
Higher other income net of other expense primarily due to the sale of El Dorado’s limited partnership interest in the Phoenix Suns	 	 	35	 	 	 	21	 	
Depreciation and amortization decreases (increases):	 	 	 	 	 	 	 	 	
Decreased regulatory asset amortization	 	 	13	 	 	 	8	 	
New power plants in service	 	 	(5	)	 	 	(3	)	
Increased delivery and other assets	 	 	(5	)	 	 	(3	)	
Interest expense net decreases (increases):	 	 	 	 	 	 	 	 	
New power plants in service	 	 	(8	)	 	 	(5	)	
Primarily lower debt balances	 	 	9	 	 	 	5	 	
Higher property taxes due to increased property values	 	 	(4	)	 	 	(2	)	
Miscellaneous items, net	 	 	3	 	 	 	3	 	

 	 	
Net increase in income from continuing operations	 	$	25	 	 	 	16	 	

Discontinued operations	 	 	 	 	 	 	(1	)	

Net increase in net income	 	 	 	 	 	$	15	 	

4

 

     The increase in net costs (primarily interest expense, depreciation, and operations and maintenance expense) related to new power plants placed in service in mid 2003 and mid 2004 by Pinnacle West Energy totaled approximately $9 million after income taxes in the three months ended June 30, 2004, compared with the prior-year period.
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $21 million higher for the three months ended June 30, 2004 compared with the prior year period, primarily as a result of:

•	 	a $28 million increase in retail revenues related to customer growth and higher average usage, excluding weather effects;	

•	 	a $7 million decrease in retail revenues related to a reduction in retail electricity prices;	

•	 	a $2 million decrease in retail revenues related to weather; and	

•	 	a $2 million increase due to miscellaneous factors.	
Marketing and Trading Segment Revenues
     Marketing and trading segment revenues were $14 million higher for the three months ended June 30, 2004 compared with the prior year period, primarily as a result of:

•	 	a $10 million increase from generation sales other than Native Load primarily due to higher prices and sales volumes;	

•	 	$5 million in higher mark-to-market gains for future-period deliveries primarily as a result of higher forward prices for wholesale electricity;	

•	 	$2 million of higher other realized wholesale revenues primarily due to higher prices; and	

•	 	a $3 million decrease from lower competitive retail sales in California by APS Energy Services.	
5

 

Real Estate Segment Revenues
     Real estate segment revenues were $10 million higher for the three months ended June 30, 2004 compared with the prior-year period primarily as a result of increased home sales.
Other Revenues
     Other revenues were $6 million lower for the three months ended June 30, 2004 compared with the prior year period primarily due to lower revenues related to an NAC contract settlement in 2003.
Operating Results – Six-month period ended June 30, 2004 compared with the six-month period ended June 30, 2003
     Our consolidated net income for the six months ended June 30, 2004 was $102 million compared with $81 million for the prior year period. The $21 million increase in the period-to-period comparison reflects the following changes in earnings by segment:

•	 	Regulated Electricity Segment – Net income increased approximately $2 million primarily due to customer growth, lower regulatory asset amortization, and favorable weather. These positive factors were partially offset by higher costs related to new power plants placed in service in mid 2003 and mid 2004; higher replacement power costs from plant outages due to higher market prices and more unplanned outages; a retail electricity price reduction; and higher depreciation expense related to increased delivery and other assets.	

•	 	Marketing and Trading Segment – net income increased approximately $3 million primarily due to higher prices for wholesale electricity, largely offset by lower margins in California of APS Energy Services.	

•	 	Real Estate Segment – Net income decreased approximately $4 million primarily due to the 2003 gain on the sale of SunCor’s water utility company, which was reported as discontinued operations.	

•	 	Other Segment – Net income increased approximately $20 million primarily due to a gain at El Dorado related to the sale of El Dorado’s limited partnership interest in the Phoenix Suns, which resulted in an after-tax gain of $21 million.	
6

 

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

  	 	Increase (Decrease)
	
 	 	Pretax
	 	After Tax
	
Regulated electricity segment gross margin:	 	 	 	 	 	 	 	 	
Higher retail sales volumes due to customer growth, excluding weather effects	 	$	24	 	 	$	14	 	
Effects of weather on retail sales	 	 	10	 	 	 	6	 	
Decreased purchased power and fuel costs due to lower hedged gas and power prices	 	 	4	 	 	 	2	 	
Higher replacement power costs from plant outages due to higher market prices and more unplanned outages	 	 	(17	)	 	 	(10	)	
Retail electricity price reduction effective July 1, 2003	 	 	(13	)	 	 	(8	)	
Miscellaneous factors, net	 	 	(6	)	 	 	(3	)	

 	 	
Net increase in regulated electricity segment gross margin	 	 	2	 	 	 	1	 	

 	 	
Marketing and trading segment gross margin:	 	 	 	 	 	 	 	 	
Higher mark-to-market gains for future delivery due to higher forward prices for wholesale electricity	 	 	9	 	 	 	5	 	
Higher realized margins on wholesale sales primarily due to higher prices	 	 	10	 	 	 	6	 	
Lower competitive retail unit margins in California by APS Energy Services	 	 	(16	)	 	 	(9	)	

 	 	
Net increase in marketing and trading segment gross margin	 	 	3	 	 	 	2	 	

 	 	
Net increase in regulated electricity and marketing and trading segments’ gross margins	 	 	5	 	 	 	3	 	
Higher other income net of other expense primarily due to the sale of El Dorado’s limited partnership interest in the Phoenix Suns	 	 	39	 	 	 	23	 	
Higher operations and maintenance expense primarily due to higher customer service costs and new power plants in service	 	 	(4	)	 	 	(2	)	
Interest expense net decreases (increases):	 	 	 	 	 	 	 	 	
New power plants in service	 	 	(12	)	 	 	(7	)	
Primarily lower debt balances	 	 	8	 	 	 	5	 	
Depreciation and amortization decreases (increases):	 	 	 	 	 	 	 	 	
Decreased regulatory asset amortization	 	 	25	 	 	 	15	 	
New power plants in service	 	 	(9	)	 	 	(5	)	
Increased delivery and other assets	 	 	(9	)	 	 	(5	)	
Higher property taxes due to increased property values	 	 	(6	)	 	 	(4	)	
Miscellaneous items, net	 	 	—	 	 	 	3	 	

 	 	
Net increase in income from continuing operations	 	$	37	 	 	 	26	 	

Discontinued operations related to the first quarter of 2003	 	 	 	 	 	 	(5	)	

Net increase in net income	 	 	 	 	 	$	21	 	

7

 

     The increase in net costs (primarily interest expense, depreciation, and operations and maintenance expense) related to new power plants placed in service in mid 2003 and mid 2004 by Pinnacle West Energy totaled approximately $15 million after income taxes in the six months ended June 30, 2004, compared with the prior-year period.
Regulated Electricity Segment Revenues
     Regulated electricity segment revenues were $57 million higher for the six months ended June 30, 2004 compared with the prior year period, primarily as a result of:

•	 	a $48 million increase in retail revenues related to customer growth and higher average usage, excluding weather effects;	

•	 	a $16 million increase in retail revenues related to weather;	

•	 	a $13 million decrease in retail revenues related to a reduction in retail electricity prices; and	

•	 	a $6 million increase due to miscellaneous factors.	
Marketing and Trading Segment Revenues
     Marketing and trading segment revenues were $14 million lower for the six months ended June 30, 2004 compared with the prior year period, primarily as a result of:

•	 	a $24 million decrease from generation sales other than Native Load primarily due to lower sales volumes and lower prices;	

•	 	a $5 million decrease from lower competitive retail sales in California by APS Energy Services;	

•	 	$6 million of higher other realized wholesale revenues primarily due to higher prices partially offset by lower volumes; and	

•	 	$9 million in higher mark-to-market gains for future-period deliveries primarily as a result of higher forward prices for wholesale electricity.	
Real Estate Segment Revenues
     Real estate segment revenues were $21 million higher for the six months ended June 30, 2004 compared with the prior-year period primarily as a result of increased home sales.
8

 

Other Revenues
     Other revenues were $3 million lower for the six months ended June 30, 2004 compared with the prior year period primarily due to lower revenues related to an NAC contract settlement in 2003.
Forward-Looking Statements
     This document contains forward-looking statements based on current expectations, and we assume no obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. These forward-looking statements are often identified by words such as “predict”, “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by us. These factors include, but are not limited to:

•	 	state and federal regulatory and legislative decisions and actions, including the outcome of the rate case we filed with the ACC on June 27, 2003 and the wholesale electric price mitigation plan adopted by the FERC;	

•	 	the outcome of regulatory, legislative and judicial proceedings relating to the restructuring;	

•	 	the ongoing restructuring of the electric industry, including the introduction of retail electric competition in Arizona and decisions impacting wholesale competition;	

•	 	market prices for electricity and natural gas;	

•	 	power plant performance and outages, including transmission outages;	

•	 	weather variations affecting local and regional customer energy usage;	

•	 	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;	
9

 

•	 	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 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;	

•	 	the performance of the stock market and the changing interest rate environment, which affect the amount of our required contributions to our pension plan and nuclear decommissioning trust funds, as well as our reported costs of providing pension and other postretirement benefits;	

•	 	technological developments in the electric industry;	

•	 	strength of the real estate market;	

•	 	conservation programs; and	

•	 	other uncertainties, all of which are difficult to predict and many of which are beyond our control.	
10

 

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

 	 	THREE MONTHS ENDED	 	 	 	 	 	 	
 	 	June 30,	 	Increase (Decrease)	 	 	 	 	
 	 	2004
	 	2003
	 	Amount
	 	Percent
	 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	519,929	 	 	$	498,751	 	 	$	21,178	 	 	 	4.2	%	 	 	B	 	
Marketing and trading segment	 	 	115,240	 	 	 	101,175	 	 	 	14,065	 	 	 	13.9	%	 	 	B	 	
Real estate segment	 	 	67,300	 	 	 	57,189	 	 	 	10,111	 	 	 	17.7	%	 	 	B	 	
Other revenues	 	 	20,217	 	 	 	26,187	 	 	 	(5,970	)	 	 	22.8	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	722,686	 	 	 	683,302	 	 	 	39,384	 	 	 	5.8	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	151,642	 	 	 	116,227	 	 	 	35,415	 	 	 	30.5	%	 	 	W	 	
Marketing and trading segment purchased power and fuel	 	 	94,120	 	 	 	81,398	 	 	 	12,722	 	 	 	15.6	%	 	 	W	 	
Operations and maintenance	 	 	140,245	 	 	 	141,519	 	 	 	(1,274	)	 	 	0.9	%	 	 	B	 	
Real estate segment operations	 	 	62,605	 	 	 	53,942	 	 	 	8,663	 	 	 	16.1	%	 	 	W	 	
Depreciation and amortization	 	 	104,241	 	 	 	107,076	 	 	 	(2,835	)	 	 	2.6	%	 	 	B	 	
Taxes other than income taxes	 	 	32,532	 	 	 	28,149	 	 	 	4,383	 	 	 	15.6	%	 	 	W	 	
Other expenses	 	 	16,141	 	 	 	22,509	 	 	 	(6,368	)	 	 	28.3	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	601,526	 	 	 	550,820	 	 	 	50,706	 	 	 	9.2	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Operating Income	 	 	121,160	 	 	 	132,482	 	 	 	(11,322	)	 	 	8.5	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	2,184	 	 	 	—	 	 	 	2,184	 	 	 	N/A	 	 	 	B	 	
Other income	 	 	36,541	 	 	 	2,698	 	 	 	33,843	 	 	 	1254.4	%	 	 	B	 	
Other expense	 	 	(4,067	)	 	 	(5,157	)	 	 	1,090	 	 	 	21.1	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	34,658	 	 	 	(2,459	)	 	 	37,117	 	 	 	1509.4	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	44,854	 	 	 	51,117	 	 	 	(6,263	)	 	 	12.3	%	 	 	B	 	
Capitalized interest	 	 	(4,120	)	 	 	(11,231	)	 	 	7,111	 	 	 	63.3	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	40,734	 	 	 	39,886	 	 	 	848	 	 	 	2.1	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations Before Income Taxes	 	 	115,084	 	 	 	90,137	 	 	 	24,947	 	 	 	27.7	%	 	 	B	 	
Income Taxes	 	 	44,027	 	 	 	35,248	 	 	 	8,779	 	 	 	24.9	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations	 	 	71,057	 	 	 	54,889	 	 	 	16,168	 	 	 	29.5	%	 	 	B	 	
Income from Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Tax Expense	 	 	313	 	 	 	1,253	 	 	 	(940	)	 	 	75.0	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Net Income	 	$	71,370	 	 	$	56,142	 	 	$	15,228	 	 	 	27.1	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding - Basic	 	 	91,315	 	 	 	91,258	 	 	 	57	 	 	 	0.1	%	 	 	 	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	91,400	 	 	 	91,450	 	 	 	(50	)	 	 	0.1	%	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations - Basic	 	$	0.78	 	 	$	0.60	 	 	$	0.18	 	 	 	30.0	%	 	 	B	 	
Net Income - Basic	 	$	0.78	 	 	$	0.62	 	 	$	0.16	 	 	 	25.8	%	 	 	B	 	
Income From Continuing Operations - Diluted	 	$	0.78	 	 	$	0.60	 	 	$	0.18	 	 	 	30.0	%	 	 	B	 	
Net Income - Diluted	 	$	0.78	 	 	$	0.61	 	 	$	0.17	 	 	 	27.9	%	 	 	B	 	
Certain prior year amounts have been restated to conform to the 2004 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)	 	 	 	 	
 	 	2004
	 	2003
	 	Amount
	 	Percent
	 	 	 	 	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	935,393	 	 	$	878,429	 	 	$	56,964	 	 	 	6.5	%	 	 	B	 	
Marketing and trading segment	 	 	203,623	 	 	 	217,881	 	 	 	(14,258	)	 	 	6.5	%	 	 	W	 	
Real estate segment	 	 	118,893	 	 	 	97,877	 	 	 	21,016	 	 	 	21.5	%	 	 	B	 	
Other revenues	 	 	39,146	 	 	 	41,758	 	 	 	(2,612	)	 	 	6.3	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,297,055	 	 	 	1,235,945	 	 	 	61,110	 	 	 	4.9	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	240,253	 	 	 	185,616	 	 	 	54,637	 	 	 	29.4	%	 	 	W	 	
Marketing and trading segment purchased power and fuel	 	 	161,884	 	 	 	179,006	 	 	 	(17,122	)	 	 	9.6	%	 	 	B	 	
Operations and maintenance	 	 	278,901	 	 	 	274,636	 	 	 	4,265	 	 	 	1.6	%	 	 	W	 	
Real estate segment operations	 	 	110,295	 	 	 	94,101	 	 	 	16,194	 	 	 	17.2	%	 	 	W	 	
Depreciation and amortization	 	 	205,745	 	 	 	212,474	 	 	 	(6,729	)	 	 	3.2	%	 	 	B	 	
Taxes other than income taxes	 	 	62,862	 	 	 	56,645	 	 	 	6,217	 	 	 	11.0	%	 	 	W	 	
Other expenses	 	 	32,584	 	 	 	31,730	 	 	 	854	 	 	 	2.7	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	1,092,524	 	 	 	1,034,208	 	 	 	58,316	 	 	 	5.6	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Operating Income	 	 	204,531	 	 	 	201,737	 	 	 	2,794	 	 	 	1.4	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	4,186	 	 	 	—	 	 	 	4,186	 	 	 	N/A	 	 	 	B	 	
Other income	 	 	47,953	 	 	 	8,353	 	 	 	39,600	 	 	 	474.1	%	 	 	B	 	
Other expense	 	 	(10,012	)	 	 	(9,288	)	 	 	(724	)	 	 	7.8	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	42,127	 	 	 	(935	)	 	 	43,062	 	 	 	4605.6	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	95,210	 	 	 	98,968	 	 	 	(3,758	)	 	 	3.8	%	 	 	B	 	
Capitalized interest	 	 	(9,031	)	 	 	(21,210	)	 	 	12,179	 	 	 	57.4	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Total	 	 	86,179	 	 	 	77,758	 	 	 	8,421	 	 	 	10.8	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations Before Income Taxes	 	 	160,479	 	 	 	123,044	 	 	 	37,435	 	 	 	30.4	%	 	 	B	 	
Income Taxes	 	 	59,654	 	 	 	48,002	 	 	 	11,652	 	 	 	24.3	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations	 	 	100,825	 	 	 	75,042	 	 	 	25,783	 	 	 	34.4	%	 	 	B	 	
Income from Discontinued Operations	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net of Income Tax Expense	 	 	701	 	 	 	6,398	 	 	 	(5,697	)	 	 	89.0	%	 	 	W	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Net Income	 	$	101,526	 	 	$	81,440	 	 	$	20,086	 	 	 	24.7	%	 	 	B	 	

 	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Weighted-Average Common Shares Outstanding - Basic	 	 	91,304	 	 	 	91,257	 	 	 	47	 	 	 	0.1	%	 	 	 	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	91,391	 	 	 	91,402	 	 	 	(11	)	 	 	0.0	%	 	 	 	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations - Basic	 	$	1.10	 	 	$	0.82	 	 	$	0.28	 	 	 	34.1	%	 	 	B	 	
Net Income - Basic	 	$	1.11	 	 	$	0.89	 	 	$	0.22	 	 	 	24.7	%	 	 	B	 	
Income From Continuing Operations - Diluted	 	$	1.10	 	 	$	0.82	 	 	$	0.28	 	 	 	34.1	%	 	 	B	 	
Net Income - Diluted	 	$	1.11	 	 	$	0.89	 	 	$	0.22	 	 	 	24.7	%	 	 	B	 	
Certain prior year amounts have been restated to conform to the 2004 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 Gains (Losses)
For Future-Period Deliveries	 	The gross margin related to the change in mark-to-market value in the current period of transactions which have been entered into during the current period or prior periods for which the commodities are scheduled for delivery in a future period.	
 	 	 	
Current Period Effects	 	The net effect of the total revenue or gross margins realized on delivery of commodities in the period being measured, and the amount of prior-period mark-to-market (gains) losses on contracts delivered during period. The net effect of transferring prior-period mark-to-market to realized does not affect total revenues, gross margin or earnings.	
 	 	 	
Degree-Days — Cooling	 	A measure of temperatures designed to indicate the amount of electricity demand for cooling purposes. Cooling degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures less than the base temperature are ignored.	
 	 	 	
Degree-Days — Heating	 	A measure of temperatures designed to indicate the amount of electricity demand for heating purposes. Heating degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures greater than the base temperature are ignored.	

 

- 2 - 

Electricity Marketing and Trading – Delivered	 	All wholesale sales of electricity not accounted for in sales under traditional contracts or retail load hedge management. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.	
 	 	 	
Electricity Spot Prices — Palo Verde – Off-Peak	 	Electricity average daily spot prices at Palo Verde substation during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — Palo Verde – On-Peak	 	Electricity average daily spot prices at Palo Verde substation during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 – Off-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Electricity Spot Prices — SP15 – On-Peak	 	Electricity average daily spot prices at SP15, a region of California substations, during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.	
 	 	 	
Generation Capacity Out of Service and Replaced for Native Load	 	Total capacity required and economic, yet unavailable for retail customers and traditional wholesale contracts due to scheduled or unscheduled outages. Measured in megawatts per day.	
 		
Generation Sales Other Than Native Load	 	Sales of electricity from generation owned by the company that is over and above the amount required to serve retail customers and traditional wholesale contracts.	
 	 	 	
Generation Production — Coal	 	Amount of net energy produced by coal-fueled generators. Measured in gigawatt-hours.	

 

- 3 - 

Generation Production — Gas/Oil/Other	 	Amount of net energy predominately produced by natural gas and oil-fueled generators. A small amount of energy from hydroelectric and solar power plants is also included. Measured in gigawatt-hours.	
 	 	 	
Generation Production — Nuclear	 	Amount of net energy produced by nuclear-fueled generators. Measured in gigawatt-hours.	
 	 	 	
Gigawatt-hour (GWH)	 	A unit of energy equivalent to 1,000 megawatt-hours or 1,000,000 kilowatt-hours.	
 	 	 	
Marketing and Trading Gross Margin – Pretax	 	Revenues from marketing and trading activities (other than retail sales, traditional wholesale sales and retail load hedge management) less the costs of the related commodities, with mark-to-market gains or losses, before income taxes.	
 	 	 	
Marketing and Trading Gross Margin by Commodity — Pretax	 	Marketing and trading gross margin, before income taxes, for generation sales other than native load and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the underlying commodities.	
 	 	 	
Realized and Mark-to-Market Components	 	Marketing and trading gross margin, before income taxes, for generation sales other than native load and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the period of delivery and whether the margin is realized or mark-to-market. Realized margins relate to commodities that have been delivered. Mark-to-market margins relate to commodities that have delivery dates in future periods.	
 	 	 	
Mark-To-Market	 	Adjustments to revenues or costs to recognize value of sales and purchase contracts, for which the commodities are scheduled for delivery in a future period, at current forward wholesale prices.	
 	 	 	
Megawatt (MW)	 	One million watts.	
 	 	 	
Megawatt-hour (MWh)	 	A unit of energy equivalent to 1,000 kilowatt-hours.	

 

- 4 - 

Prior Period Mark-To-Market (Gains) Losses on
Contracts Delivered During Current Period	 	The reversal of the gross margin related to mark-to-market transactions entered into in prior periods for which the commodities were delivered in the current period. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition or earnings recognition, because in accordance with mark-to-market accounting, the margin was already recorded in the prior period. A negative amount shown in this category represents the arithmetic opposite of a gain recognized in the period in which the commodities were delivered; an equal positive amount is reflected in the realized revenue or margin for delivered commodities. A positive amount shown in this category represents the arithmetic opposite of a loss recognized in the period in which the commodities were delivered; an equal negative amount is reflected in the realized revenue or margin for delivered commodities.	
 	 	 	
Purchased Power – Firm Load	 	Power purchased from wholesale market sources used to serve regulated retail demand and traditional wholesale contracts. Measured in gigawatt-hours.	
 	 	 	
Purchased Power – Marketing and Trading	 	Power purchased from wholesale market sources used to serve marketing and trading sales not served by company-owned generation. Measured in gigawatt-hours.	
 	 	 	
Realized Margin on Delivered Commodities	 	Marketing and trading gross margin related to electricity and other commodities that were delivered in the then-current period.	
 	 	 	
Retail Customer Growth	 	Percentage growth over the prior year in the number of retail customers.	
 	 	 	
Retail Electricity Usage	 	Total retail sales for a period divided by the average retail customers for the same period. Measured in kilowatt-hours per average customer.	
 	 	 	
Retail Load Hedge Management	 	Wholesale sales to liquidate electricity purchases originally intended to meet firm load during peak times, which purchases were not needed ultimately for firm load. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.	
 	 	 	
Retail Sales	 	Sales of electricity made directly to retail customers or ultimate customers. Residential retail sales are sales to households. Business retail sales include commercial, industrial, irrigation, and streetlighting sales. Measured in gigawatt-hours.	

 

- 5- 

System Peak Demand	 	The demand for electricity during the one hour of highest use each month. Measured in megawatts.	
 	 	 	
Traditional Contracts	 	Wholesale sales resulting from unique cost-based, long-term contracts held by the company with various entities for the supply of electricity at agreed-upon prices.	
 	 	 	
Weather Normalized	 	Adjusted to exclude the effects of abnormal weather patterns.	

 

Exhibit 99.9

 	 	 	 	 	
FOR IMMEDIATE RELEASE	 	July 29, 2004	
Media Contact:	 	Paul Reynolds, (602) 250- 5656	 	Page 1 of 1	
Analyst Contacts:	 	Rebecca Hickman, (602) 250-5668	 	 	
	 	Lisa Malagon, (602) 250-5671	 	 	
Web site:	 	www.pinnaclewest.com	 	 	
PINNACLE WEST REPORTS 2004 SECOND QUARTER EARNINGS
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended June 30, 2004, of $71 million, or $0.78 per diluted share of common stock. This result compares with net income of $56 million, or $0.61 per diluted share, for the same quarter a year ago.
On-going consolidated earnings in the second quarter of 2004 were $50 million, or $0.55 per share, compared with $56 million, or $0.61 per share in the comparable 2003 quarter. On-going earnings exclude a gain of $21 million after income taxes, or $0.23 per share, from the second quarter 2004 sale of the Company’s interest in the Phoenix Suns professional basketball team partnership.
On-going earnings were adversely impacted by new generating plants placed in service in 2003 and 2004 which have not been given rate treatment and higher replacement power costs due to unplanned plant outages.
“Operationally, we have dealt with several events this summer which have tested the strength of our system and our people” said Pinnacle West Chairman Bill Post. “Our people have performed admirably and decisions over the last few years to expand both our generation and transmission systems have allowed us to meet the state’s growing demand.”
For more information on Pinnacle West’s operating statistics and earnings, please visit http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/default.html.
Conference Call
Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s 2004 second quarter earnings and recent developments at 12 noon (ET) today, July 29, 2004. The webcast can be accessed at www.pinnaclewest.com/main/pnw/investors/presentations/default.html 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 8376241. A replay of the call also will be available until 12 midnight (ET), Thursday, August 5, 2004, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering reservation number 8376241.

 

			
PINNACLE WEST SECOND QUARTER EARNINGS	 	July 29, 2004	
	 	Page 2 of 2	
 	 	 	
Pinnacle West is a Phoenix-based company with consolidated assets of approximately $9.8 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
-30-

 

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

 	 	THREE MONTHS ENDED	 	SIX MONTHS ENDED	
 	 	June 30,	 	June 30,	
 	 	2004
	 	2003
	 	2004
	 	2003
	
Operating Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment	 	$	519,929	 	 	$	498,751	 	 	$	935,393	 	 	$	878,429	 	
Marketing and trading segment	 	 	115,240	 	 	 	101,175	 	 	 	203,623	 	 	 	217,881	 	
Real estate segment	 	 	67,300	 	 	 	57,189	 	 	 	118,893	 	 	 	97,877	 	
Other revenues	 	 	20,217	 	 	 	26,187	 	 	 	39,146	 	 	 	41,758	 	

 	 	 	 	

Total	 	 	722,686	 	 	 	683,302	 	 	 	1,297,055	 	 	 	1,235,945	 	

 	 	 	 	

Operating Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Regulated electricity segment purchased power and fuel	 	 	151,642	 	 	 	116,227	 	 	 	240,253	 	 	 	185,616	 	
Marketing and trading segment purchased power and fuel	 	 	94,120	 	 	 	81,398	 	 	 	161,884	 	 	 	179,006	 	
Operations and maintenance	 	 	140,245	 	 	 	141,519	 	 	 	278,901	 	 	 	274,636	 	
Real estate segment operations	 	 	62,605	 	 	 	53,942	 	 	 	110,295	 	 	 	94,101	 	
Depreciation and amortization	 	 	104,241	 	 	 	107,076	 	 	 	205,745	 	 	 	212,474	 	
Taxes other than income taxes	 	 	32,532	 	 	 	28,149	 	 	 	62,862	 	 	 	56,645	 	
Other expenses	 	 	16,141	 	 	 	22,509	 	 	 	32,584	 	 	 	31,730	 	

 	 	 	 	

Total	 	 	601,526	 	 	 	550,820	 	 	 	1,092,524	 	 	 	1,034,208	 	

 	 	 	 	

Operating Income	 	 	121,160	 	 	 	132,482	 	 	 	204,531	 	 	 	201,737	 	

 	 	 	 	

Other	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Allowance for equity funds used during construction	 	 	2,184	 	 	 	—	 	 	 	4,186	 	 	 	—	 	
Other income	 	 	36,541	 	 	 	2,698	 	 	 	47,953	 	 	 	8,353	 	
Other expense	 	 	(4,067	)	 	 	(5,157	)	 	 	(10,012	)	 	 	(9,288	)	

 	 	 	 	

Total	 	 	34,658	 	 	 	(2,459	)	 	 	42,127	 	 	 	(935	)	

 	 	 	 	

Interest Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest charges	 	 	44,854	 	 	 	51,117	 	 	 	95,210	 	 	 	98,968	 	
Capitalized interest	 	 	(4,120	)	 	 	(11,231	)	 	 	(9,031	)	 	 	(21,210	)	

 	 	 	 	

Total	 	 	40,734	 	 	 	39,886	 	 	 	86,179	 	 	 	77,758	 	

 	 	 	 	

Income From Continuing Operations Before Income Taxes	 	 	115,084	 	 	 	90,137	 	 	 	160,479	 	 	 	123,044	 	
Income Taxes	 	 	44,027	 	 	 	35,248	 	 	 	59,654	 	 	 	48,002	 	

 	 	 	 	

Income From Continuing Operations	 	 	71,057	 	 	 	54,889	 	 	 	100,825	 	 	 	75,042	 	
Income From Discontinued Operations - Net of Income Tax Expense	 	 	313	 	 	 	1,253	 	 	 	701	 	 	 	6,398	 	

 	 	 	 	

Net Income	 	$	71,370	 	 	$	56,142	 	 	$	101,526	 	 	$	81,440	 	

 	 	 	 	

Weighted-Average Common Shares Outstanding - Basic	 	 	91,315	 	 	 	91,258	 	 	 	91,304	 	 	 	91,257	 	
Weighted-Average Common Shares Outstanding - Diluted	 	 	91,400	 	 	 	91,450	 	 	 	91,391	 	 	 	91,402	 	
Earnings Per Weighted-Average Common Share Outstanding	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income From Continuing Operations - Basic	 	$	0.78	 	 	$	0.60	 	 	$	1.10	 	 	$	0.82	 	
Net Income - Basic	 	$	0.78	 	 	$	0.62	 	 	$	1.11	 	 	$	0.89	 	
Income From Continuing Operations - Diluted	 	$	0.78	 	 	$	0.60	 	 	$	1.10	 	 	$	0.82	 	
Net Income - Diluted	 	$	0.78	 	 	$	0.61	 	 	$	1.11	 	 	$	0.89	 	
Certain prior year amounts have been restated to conform to the 2004 presentation.