EX-99.2 3 p70522exv99w2.htm EX-99.2 exv99w2
 

Exhibit 99.2
Last Updated 4/26/05

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
EARNINGS CONTRIBUTION
BY SUBSIDIARY ($ Millions)
                        
1  
Arizona Public Service
   $ 27     $ 34     $ (7 )
2  
Pinnacle West Energy
     (21 )     (18 )     (3 )
3  
APS Energy Services
     (3 )     2       (5 )
4  
SunCor
     9       2       7  
5  
El Dorado
     (1 )     —       (1 )
6  
Parent Company
     13       11       2  
   
 
                  
7  
Income From Continuing Operations
     24       31       (7 )
   
Income From Discontinued Operations -
                        
8a  
Net of Tax
     —       —       —  
   
Cumulative Effect of Change in Accounting -
                        
8b  
Net of Tax
     —       —       —  
   
 
                  
9  
Net Income
   $ 24     $ 31     $ (7 )
   
 
                  
   
EARNINGS PER SHARE
BY SUBSIDIARY — DILUTED
                        
10  
Arizona Public Service
   $ 0.30     $ 0.38     $ (0.08 )
11  
Pinnacle West Energy
     (0.22 )     (0.20 )     (0.02 )
12  
APS Energy Services
     (0.04 )     0.02       (0.06 )
13  
SunCor
     0.09       0.02       0.07  
14  
El Dorado
     (0.01 )     —       (0.01 )
15  
Parent Company
     0.15       0.12       0.03  
   
 
                  
16  
Income From Continuing Operations
     0.27       0.34       (0.07 )
   
Income From Discontinued Operations -
                        
17a  
Net of Tax
     —       —       —  
   
Cumulative Effect of Change in Accounting -
                        
17b  
Net of Tax
     —       —       —  
   
 
                  
18  
Net Income
   $ 0.27     $ 0.34     $ (0.07 )
   
 
                  
19  
BOOK VALUE PER SHARE
   $ 32.50     $ 31.19     $ 1.31  
   
COMMON SHARES OUTSTANDING -
DILUTED (Thousands)
                        
20  
Average
     92,045       91,376       669  
21  
End of Period
     92,103       91,310       793  
   
See Glossary of Terms. Page 1 of 8

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
ELECTRIC OPERATING REVENUES
(Dollars in Millions)
                        
   
REGULATED ELECTRICITY SEGMENT
                        
   
Retail
                        
22  
Residential
   $ 190     $ 189     $ 1  
23  
Business
     209       211       (2 )
   
 
                  
24  
Total retail
     399       400       (1 )
   
Wholesale revenue on delivered electricity
                        
25  
Traditional contracts
     3       3       —  
26  
Retail load hedge management
     —       —       —  
27  
Transmission for others
     7       8       (1 )
28  
Other miscellaneous services
     7       4       3  
   
 
                  
29  
Total regulated electricity
     416       415       1  
   
 
                  
   
MARKETING AND TRADING SEGMENT
                        
   
Delivered marketing and trading
                        
30  
Generation sales other than native load
     46       10       36  
31  
Realized margins on electricity trading (a)
     6       5       1  
32  
Other delivered electricity (a)
     58       66       (8 )
   
 
                  
33  
Total delivered marketing and trading
     110       81       29  
   
 
                  
   
Other marketing and trading
                        
34  
Realized margins on delivered commodities other than electricity (a)
     1       (2 )     3  
35  
Prior period mark-to-market (gains) losses on contracts delivered during current period (a)
     (2 )     1       (3 )
36  
Change in mark-to-market for future-period deliveries
     8       8       —  
   
 
                  
37  
Total other marketing and trading
     7       7       —  
   
 
                  
38  
Total marketing and trading
     117       88       29  
   
 
                  
39  
Total operating electric revenues
   $ 533     $ 503     $ 30  
   
 
                  

(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 $2 million was transferred to “realized” for the first quarter of 2005. Lines 31, 32 and 34 include amounts totaling $2 million of realized gain for the first quarter of 2005.

See Glossary of Terms. Page 2 of 8

 

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
ELECTRIC SALES (GWH)
                        
   
Regulated Electricity Segment
                        
   
Retail sales
                        
40  
Residential
     2,367       2,410       (43 )
41  
Business
     3,042       3,051       (9 )
   
 
                  
42  
Total retail
     5,409       5,461       (52 )
   
Wholesale electricity delivered
                        
43  
Traditional contracts
     155       138       17  
44  
Retail load hedge management
     750       169       581  
   
 
                  
45  
Total regulated electricity
     6,314       5,768       546  
   
 
                  
   
Marketing and Trading Segment
                        
   
Delivered marketing and trading
                        
46  
Generation sales other than native load
     979       358       621  
47  
Electricity trading
     4,015       4,198       (183 )
48  
Other delivered electricity
     1,067       1,139       (72 )
   
 
                  
49  
Total delivered marketing and trading
     6,061       5,695       366  
   
 
                  
50  
Total electric sales
     12,375       11,463       912  
   
 
                  

See Glossary of Terms. Page 3 of 8

 

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     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
   $ 6     $ 3     $ 3  
52  
Other electricity marketing and trading (a)
     4       11       (7 )
   
 
                  
53  
Total electricity
     10       14       (4 )
54  
Other commodities (a)
     1       (2 )     3  
   
 
                  
55  
Total realized margin
     11       12       (1 )
   
 
                  
   
Prior-period mark-to-market (gains) losses on contracts delivered during current period
                        
56  
Electricity (a)
     (1 )     (1 )     —  
57  
Other commodities (a)
     (1 )     2       (3 )
   
 
                  
58  
Subtotal
     (2 )     1       (3 )
   
 
                  
59  
Total current period effects (b)
     9       13       (4 )
   
 
                  
   
Change in mark-to-market gains (losses) for future period deliveries (b)
                        
60  
Electricity
     2       7       (5 )
61  
Other commodities
     6       1       5  
   
 
                  
62  
Subtotal
     8       8       —  
   
 
                  
63  
Total gross margin
   $ 17     $ 21     $ (4 )
   
 
                  

Future Marketing and Trading Mark-to-Market Realization

As of March 31, 2005, 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: 2005, $16 million; 2006, $6 million; 2007, $15 million; and thereafter, $8 million.

(a)   The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 63 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 $1 million was transferred to “realized” for the first quarter of 2005. A $1 million realized gain is included in the $4 million on line 52 for the first quarter of 2005.
 
(b)   Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms.   Page 4 of 8

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
MARKETING AND TRADING SEGMENT
PRETAX GROSS MARGIN ANALYSIS (continued)
(Dollars in Millions)
                        
 
   
By Commodity Sold or Traded
                        
 
64  
Electricity
   $ 11     $ 20     $ (9 )
65  
Natural gas
     6       1       5  
66  
Coal
     —       —       —  
67  
Emission allowances
     —       —       —  
68  
Other
     —       —       —  
   
 
                  
69  
Total gross margin
   $ 17     $ 21     $ (4 )
   
 
                  
 
   
By Pinnacle West Entity
                        
 
   
Parent company marketing and trading division
                        
70  
Generation sales other than native load
   $ 1     $ —     $ 1  
71  
Other marketing and trading
     13       12       1  
   
APS
                        
72  
Generation sales other than native load
     5       3       2  
73  
Other marketing and trading
     (9 )     (8 )     (1 )
   
Pinnacle West Energy
                        
74  
Generation sales other than native load
     —       —       —  
75  
Other marketing and trading
     10       10       —  
   
APS ES
                        
76  
Other marketing and trading
     (3 )     4       (7 )
   
 
                  
77  
Total gross margin before income taxes
   $ 17     $ 21     $ (4 )
   
 
                  

 

   
See Glossary of Terms. Page 5 of 8

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
AVERAGE ELECTRIC CUSTOMERS
                        
 
   
Retail customers
                        
78  
Residential
     889,967       855,754       34,213  
79  
Business
     109,772       105,502       4,270  
   
 
                  
80  
Total
     999,739       961,256       38,483  
81  
Wholesale customers
     81       81       —  
   
 
                  
82  
Total customers
     999,820       961,337       38,483  
   
 
                  
   
 
                      
83  
Customer Growth (% over prior year)
     4.0 %     3.4 %     0.6 %
 
   
RETAIL SALES (GWH) -
WEATHER NORMALIZED
                        
 
84  
Residential
     2,430       2,371       59  
85  
Business
     3,058       2,998       60  
   
 
                  
86  
Total
     5,488       5,369       119  
   
 
                  
 
   
RETAIL USAGE
(KWh/Average Customer)
                        
 
87  
Residential
     2,660       2,816       (156 )
88  
Business
     27,712       28,919       (1,207 )
 
   
RETAIL USAGE -
WEATHER NORMALIZED
(KWh/Average Customer)
                        
 
89  
Residential
     2,730       2,770       (40 )
90  
Business
     27,860       28,422       (562 )
 
   
ELECTRICITY DEMAND (MW)
                        
 
91  
System peak demand
     3,997       3,979       18  

 

   
See Glossary of Terms. Page 6 of 8

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
ENERGY SOURCES (GWH)
                        
   
Generation production
                        
92  
Nuclear
     2,247       2,148       99  
93  
Coal
     2,940       2,887       53  
94  
Gas, oil and other
     1,127       367       760  
   
 
                  
95  
Total
     6,314       5,402       912  
   
 
                  
   
Purchased power
                        
96  
Firm load
     586       701       (115 )
97  
Marketing and trading
     5,832       5,506       326  
   
 
                  
98  
Total
     6,418       6,207       211  
   
 
                  
99  
Total energy sources
     12,732       11,609       1,123  
   
 
                  
   
POWER PLANT PERFORMANCE
                        
   
Capacity Factors
                        
100  
Nuclear
     94 %     88 %     6 %
101  
Coal
     80 %     77 %     3 %
102  
Gas, oil and other
     17 %     5 %     12 %
103  
System average
     49 %     44 %     5 %
   
Generation Capacity Out of Service and Replaced for Native Load (average MW/day)
                        
104  
Nuclear
     52       135       (83 )
105  
Coal
     138       149       (11 )
106  
Gas
     212       49       163  
   
 
                  
107  
Total
     402       333       69  
108  
Generation Fuel Cost ($/MWh)
   $ 15.50     $ 11.17     $ 4.33  

 

   
See Glossary of Terms. Page 7 of 8

 

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2005 and 2004

                             
        3 Mo. Ended March  
Line       2005     2004     Incr (Decr)  
   
ENERGY MARKET INDICATORS (a)
                        
   
Electricity Average Daily Spot Prices ($/MWh)
                        
   
On-Peak
                        
109  
Palo Verde
   $ 49.74     $ 43.73     $ 6.01  
110  
SP15
   $ 55.70     $ 48.37     $ 7.33  
   
Off-Peak
                        
111  
Palo Verde
   $ 37.04     $ 33.66     $ 3.38  
112  
SP15
   $ 40.96     $ 36.90     $ 4.06  
   
WEATHER INDICATORS
                        
   
Actual
                        
113  
Cooling degree-days
     34       273       (239 )
114  
Heating degree-days
     457       552       (95 )
115  
Average humidity
     56 %     39 %     17 %
   
10-Year Averages
                        
116  
Cooling degree-days
     80       80       —  
117  
Heating degree-days
     521       521       —  
118  
Average humidity
     43 %     43 %     0 %
   
ECONOMIC INDICATORS
                        
   
Building Permits — Metro Phoenix (b) (d)
                        
119  
Single-family
     6,447       5,571       876  
120  
Multi-family
     1,972       974       998  
   
 
                  
121  
Total
     8,419       6,545       1,874  
   
 
                  
   
Arizona Job Growth (c) (d)
                        
122  
Payroll job growth (% over prior year)
     4.2 %     2.5 %     1.7 %
123  
Unemployment rate (%, seasonally adjusted)
     4.3 %     5.3 %     (1.0 )%

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 February 2005.

 

   
See Glossary of Terms. Page 8 of 8