EX-99.2 3 p72248exv99w2.htm EXHIBIT 99.2 exv99w2
 

Exhibit 99.2

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
                        
       
 
                        
  1    
Arizona Public Service
   $ (6 )   $ 27     $ (33 )
  2    
Pinnacle West Energy
     —       (21 )     21  
  3    
APS Energy Services
     1       (3 )     4  
  4    
SunCor
     21       9       12  
  5    
El Dorado
     (1 )     (1 )     —  
  6    
Parent Company
     (3 )     19       (22 )
     
 
                  
  7    
Income From Continuing Operations
     12       30       (18 )
  8  
Loss From Discontinued Operations — Net of Tax
     —       (6 )     6  
  9    
Cumulative Effect of Change in Accounting — Net of Tax
     —       —       —  
     
 
                  
  10    
Net Income
   $ 12     $ 24     $ (12 )
     
 
                  
       
 
                        
       
EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
                        
       
 
                        
  11    
Arizona Public Service
   $ (0.06 )   $ 0.30     $ (0.36 )
  12    
Pinnacle West Energy
     —       (0.23 )     0.23  
  13    
APS Energy Services
     0.01       (0.04 )     0.05  
  14    
SunCor
     0.21       0.09       0.12  
  15    
El Dorado
     (0.01 )     (0.01 )     —  
  16    
Parent Company
     (0.03 )     0.21       (0.24 )
     
 
                  
  17    
Income From Continuing Operations
     0.12       0.32       (0.20 )
  18    
Income (Loss) From Discontinued Operations — Net of Tax
     0.01       (0.05 )     0.06  
  19    
Cumulative Effect of Change in Accounting — Net of Tax
     —       —       —  
     
 
                  
  20    
Net Income
   $ 0.13     $ 0.27     $ (0.14 )
     
 
                  
       
 
                        
  21    
BOOK VALUE PER SHARE
   $ 32.37 *   $ 32.50     $ (0.13 )
       
 
                        
       
COMMON SHARES OUTSTANDING (Thousands)
                        
  22    
Average — Diluted
     99,449       92,045       7,404  
  23    
End of Period
     99,187       92,103       7,084  
       
 
                        
       
* Estimate
                        
See Glossary of Terms.   Page 2 of 31

 

 

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
ELECTRIC OPERATING REVENUES (Dollars in Millions)
                        
       
 
                        
       
REGULATED ELECTRICITY SEGMENT
                        
       
Retail
                        
  24    
Residential
   $ 202     $ 190     $ 12  
  25    
Business
     233       209       24  
     
 
                  
  26    
Total retail
     435       399       36  
       
Wholesale revenue on delivered electricity
                        
  27    
Traditional contracts
     6       3       3  
  28    
Off-system sales
     12       —       12  
  29    
Transmission for others
     6       7       (1 )
  30    
Other miscellaneous services
     7       7       —  
     
 
                  
  31    
Total regulated operating electricity revenues
     466       416       50  
       
 
                        
       
MARKETING AND TRADING SEGMENT
                        
  32    
Electricity and other commodity sales
     85       89       (4 )
     
 
                  
  33    
Total operating electric revenues
   $ 551     $ 505     $ 46  
     
 
                  
       
 
                        
       
ELECTRIC SALES (GWH)
                        
       
 
                        
       
REGULATED ELECTRICITY SEGMENT
                        
       
Retail sales
                        
  34    
Residential
     2,419       2,367       52  
  35    
Business
     3,199       3,042       157  
     
 
                  
  36    
Total retail
     5,618       5,409       209  
       
Wholesale electricity delivered
                        
  37    
Traditional contracts
     215       155       60  
  38    
Off-system sales
     936       —       936  
  39    
Retail load hedge management
     178       750       (572 )
     
 
                  
  40    
Total regulated electricity
     6,947       6,314       633  
       
 
                        
       
MARKETING AND TRADING SEGMENT
                        
  41    
Wholesale sales of electricity
     3,891       6,060       (2,169 )
     
 
                  
  42    
Total electric sales
     10,838       12,374       (1,536 )
     
 
                  
See Glossary of Terms.   Page 3 of 31

 

 

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
POWER SUPPLY ADJUSTOR (“PSA”) - REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
                        
       
 
                        
  43    
Deferred fuel and purchased power regulatory asset — beginning balance
   $ 173     $ —     $ 173  
  44    
Deferred fuel and purchased power costs — current period
     13       —       13  
  45    
Interest on deferred fuel
     1       —       1  
  46    
Amounts recovered through revenues
     (18 )     —       (18 )
     
 
                  
  47    
Deferred fuel and purchased power regulatory asset — ending balance
   $ 169     $ —     $ 169  
     
 
                  
       
 
                        
       
MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
                        
       
 
                        
       
Realized and Mark-To-Market Components
                        
       
 
                        
  48    
Electricity and other commodity sales, realized (a)
   $ 11     $ 12     $ (1 )
  49    
Mark-to-market reversals on realized sales (b)
     (1 )     (3 )     2  
  50    
Change in mark-to-market value of forward sales
     1       10       (9 )
     
 
                  
  51    
Total gross margin
   $ 11     $ 19     $ (8 )
     
 
                  
       
 
                        
       
By Pinnacle West Entity
                        
       
 
                        
  52    
Parent company marketing and trading division
   $ (2 )   $ 21     $ (23 )
  53    
APS
     10       (4 )     14  
  54    
Pinnacle West Energy
     —       5       (5 )
  55    
APS Energy Services
     3       (3 )     6  
     
 
                  
  56    
Total gross margin
   $ 11     $ 19     $ (8 )
     
 
                  
Future Marketing and Trading Mark-to-Market Realization
As of March 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2006, $11 million; 2007, $21 million; and 2008, $13 million.
 
(a)   Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the first quarter of 2006. A $1 million realized gain is included in the $11 million on line 48 for the first quarter of 2006.
 
(b)   Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.
See Glossary of Terms.   Page 4 of 31

 

 

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
AVERAGE ELECTRIC CUSTOMERS
                        
       
 
                        
       
Retail customers
                        
  57    
Residential
     930,799       889,967       40,832  
  58    
Business
     113,570       109,795       3,775  
     
 
                  
  59    
Total
     1,044,369       999,762       44,607  
  60    
Wholesale customers
     75       81       (6 )
     
 
                  
  61    
Total customers
     1,044,444       999,843       44,601  
     
 
                  
       
 
                        
  62    
Customer growth (% over prior year)
     4.5 %     4.0 %     0.5 %
       
 
                        
       
RETAIL SALES (GWH) - WEATHER NORMALIZED
                        
       
 
                        
  63    
Residential
     2,514       2,439       75  
  64    
Business
     3,252       3,058       194  
     
 
                  
  65    
Total
     5,766       5,497       269  
     
 
                  
       
 
                        
       
RETAIL USAGE (KWh/Average Customer)
                        
       
 
                        
  66    
Residential
     2,763       2,660       103  
  67    
Business
     30,444       27,706       2,738  
       
 
                        
       
RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
                        
       
 
                        
  68    
Residential
     2,700       2,741       (41 )
  69    
Business
     28,636       27,860       776  
       
 
                        
       
ELECTRICITY DEMAND (MW)
                        
       
 
                        
  70    
System peak demand
     4,205       3,997       208  
See Glossary of Terms.   Page 5 of 31

 

 

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
ENERGY SOURCES (GWH)
                        
       
 
                        
       
Generation production
                        
  71    
Nuclear
     1,720       2,247       (527 )
  72    
Coal
     3,083       2,940       143  
  73    
Gas, oil and other
     1,252       1,127       125  
     
 
                  
  74    
Total generation production
     6,055       6,314       (259 )
     
 
                  
       
Purchased power
                        
  75    
Firm load
     365       586       (221 )
  76    
Marketing and trading
     4,669       5,832       (1,163 )
     
 
                  
  77    
Total purchased power
     5,034       6,418       (1,384 )
     
 
                  
  78    
Total energy sources
     11,089       12,732       (1,643 )
     
 
                  
       
 
                        
       
POWER PLANT PERFORMANCE
                        
       
 
                        
       
Capacity Factors
                        
  79    
Nuclear
     71 %     94 %     (23 )%
  80    
Coal
     83 %     79 %     4 %
  81    
Gas, oil and other
     20 %     18 %     2 %
  82    
System average
     49 %     50 %     (1 )%
       
 
                        
       
Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
                        
  83    
Nuclear
     306       52       254  
  84    
Coal
     257       195       62  
  85    
Gas
     201       212       (11 )
     
 
                  
  86    
Total
     764       459       305  
     
 
                  
 
(a)   Includes planned and unplanned outages
See Glossary of Terms.   Page 6 of 31

 

 

Last Updated     5/9/2006

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2006 and 2005
                                 
            3 Mo. Ended March  
Line         2006     2005     Incr (Decr)  
       
ENERGY MARKET INDICATORS (a)
                        
       
 
                        
       
Electricity Average Daily Spot Prices ($/MWh)
                        
       
On-Peak
                        
  87    
Palo Verde
   $ 53.78     $ 49.74     $ 4.04  
  88    
SP15
   $ 58.34     $ 55.70     $ 2.64  
       
Off-Peak
                        
  89    
Palo Verde
   $ 41.92     $ 37.04     $ 4.88  
  90    
SP15
   $ 44.79     $ 40.96     $ 3.83  
       
 
                        
       
WEATHER INDICATORS
                        
       
 
                        
       
Actual
                        
  91    
Cooling degree-days
     43       34       9  
  92    
Heating degree-days
     464       457       7  
  93    
Average humidity
     28 %     56 %     (28 )%
       
10-Year Averages
                        
  94    
Cooling degree-days
     99       99       —  
  95    
Heating degree-days
     514       514       —  
  96    
Average humidity
     41 %     41 %     0 %
       
 
                        
       
ECONOMIC INDICATORS
                        
       
 
                        
       
Building Permits — Metro Phoenix (b) (d)
                        
  97    
Single-family
     5,376       6,470       (1,094 )
  98    
Multi-family
     2,448       1,049       1,399  
     
 
                  
  99    
Total
     7,824       7,519       305  
     
 
                  
       
Arizona Job Growth (c) (d)
                        
  100    
Payroll job growth (% over prior year)
     5.6 %     4.8 %     0.8 %
       
Unemployment rate
                        
  101    
(%, seasonally adjusted)
     4.6 %     4.5 %     0.1 %
 
Sources:  
 
(a)   Average of daily prices obtained and used with permission from Dow Jones & Company, Inc.
 
(b)   Arizona Real Estate Center, Arizona State University W.P. Carey College of Business
 
(c)   Arizona Department of Economic Security
 
(d)   Economic indicators reflect latest available data through periods ended February 28, 2006.
See Glossary of Terms.   Page 7 of 31