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): August 5, 1998

PINNACLE WEST CAPITAL CORPORATION
 (Exact name of registrant as specified in its charter)

            Arizona                             1-8962                               86-0512431
------------------------------------------------------------------------------------------------------
(State or other jurisdiction                  (Commission                           (IRS Employer
      of incorporation)                      File Number)                       Identification Number)	

400 East Van Buren St., P.O. Box 52132, Phoenix, Arizona     85072-2132
--------------------------------------------------------     ----------
        (Address of principal executive offices)             (Zip code)	

(602) 379-2500
 (Registrant's telephone number, including area code)

NONE
 (Former name or former address, if changed since last report)

Item 5. Other Events
ACC Rules. In December 1996, the Arizona Corporation Commission (the "ACC") adopted rules that provide for a framework for the introduction of retail electric competition. On August 4, 1998, the ACC adopted amendments to the rules.
The major components of the amended rules, which apply to all "Affected Utilities," including the Arizona Public Service Company ("APS"), are outlined below:

         +        Each  Affected  Utility is  expected  to  provide  competitive
                  generation  service to 20% of its 1995  retail  peak demand by
                  January  1,  1999.  Customers  eligible  for the 20%  phase-in
                  beginning January 1, 1999 include (a) customers with specified
                  loads of at least 1 MW and (b) customers  with load demands of
                  at least 40kW that are  aggregated  into a combined load of at
                  least 1 MW.  In  addition,  the rules  require  100% of retail
                  customers   (including   residential   customers)   access  to
                  competitive services beginning January 1, 2001.

         +        Prior to  January 1, 2001,  residential  customers  will  have
                  access to competitive services through a quarterly phase-in of
                  one-half   percent  of   residential   customers  per  quarter
                  beginning January 1, 1999.

         +        The  rules  establish   that  the  ACC  shall  allow  Affected
                  Utilities a "reasonable  opportunity"  to recover  unmitigated
                  stranded cost.  Affected  Utilities are still expected to take
                  reasonable, cost-effective steps to mitigate stranded costs.

         +        Absent  a waiver  from the ACC,  each  Affected  Utility  must
                  separate  itself  of all  competitive  generation  assets  and
                  services  prior to  January 1, 2001.  The  separation  must be
                  either to an  unaffiliated  party or to a  separate  corporate
                  affiliate or affiliates.

         +        The  rules contain  "affiliate  transaction  rules"  generally
                  prohibiting an Affected  Utility and its competitive  electric
                  affiliates from sharing  personnel,  office space,  equipment,
                  services,  and systems,  except to the extent  appropriate  to
                  perform   certain   permissible   shared   corporate   support
                  functions.

         +        The  rules  become effective  immediately upon filing with the
                  Arizona Secretary of State;  however,  the ACC must complete a
                  public  process to  formalize  the  amended  rules  within six
                  months.  APS  anticipates  the  completion  of this process by
                  year-end 1998 or early 1999.

         +        The  rules  contain a number of other  provisions  and details
                  related to operational issues,  such as solar power,  customer
                  data  standards and an  independent  system  administrator  or
                  operator.

          All Affected  Utilities are required to make the following  filings in
the next several months:

         +        August  21,  1998  -  proposed  plan  for  quantification  and
                  recovery of stranded costs;

         +        September 15, 1998 - report "detailing  possible mechanisms to
                  provide benefits,  such as rate reductions of 3% to 5%, to all
                  'standard offer' customers";

         +        September  15, 1998 - proposed plan for  residential  phase-in
                  implementation;

         +        December   31,   1998  -   affiliate   rule   compliance   and
                  restructuring plan.	

                                   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:   August 6, 1998              By:   Faye Widenmann
                                           -----------------------
                                           Faye Widenmann
                                           Vice President of Corporate Relations
                                           and Administration and Secretary