EX-99.3 4 p70961exv99w3.txt EXHIBIT 99.3 EXHIBIT 99.3 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------- ------- ------- ------- ------------ ------------ EARNINGS CONTRIBUTION BY SUBSIDIARY ($ MILLIONS) 1 Arizona Public Service $ 27 $ 64 $ 91 $ 2 2 Pinnacle West Energy (21) 12 (8) 28 3 APS Energy Services (3) 1 (2) (5) 4 SunCor 9 11 19 13 5 El Dorado (1) - (1) (35) 6 Parent Company 19 (3) 16 7 ------- ------- ------- ------- ---------- ----------- 7 Income From Continuing Operations 30 85 - - 115 10 8 Loss From Discontinued Operations - Net of Tax (6) (58) (64) (63) 9 Cumulative Effect of Change in Accounting - Net of Tax - - - - ------- ------- ------- ------- ---------- ----------- 10 Net Income $ 24 $ 27 $ - $ - $ 51 $ (53) ======= ======= ======= ======= ========== =========== EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 11 Arizona Public Service $ 0.30 $ 0.66 $ 0.97 $ (0.01) 12 Pinnacle West Energy (0.23) 0.13 (0.09) 0.31 13 APS Energy Services (0.04) 0.01 (0.03) (0.06) 14 SunCor 0.09 0.11 0.21 0.15 15 El Dorado (0.01) - (0.01) (0.39) 16 Parent Company 0.21 (0.03) 0.17 0.07 ------- ------- ------- ------- ---------- ----------- 17 Income From Continuing Operations 0.32 0.88 - - 1.22 0.07 18 Loss From Discontinued Operations - Net of Tax (0.05) (0.60) (0.68) (0.67) 19 Cumulative Effect of Change in Accounting - Net of Tax - - - - ------- ------- ------- ------- ---------- ----------- 20 Net Income $ 0.27 $ 0.28 $ - $ - $ 0.54 $ (0.60) ======= ======= ======= ======= ========== =========== 21 BOOK VALUE PER SHARE $ 32.50 $ 32.89 $ 32.89 $ 1.21 COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 22 Average 92,045 96,299 94,189 2,798 23 End of Period 92,103 98,442 98,442 7,133
See Glossary of Terms. Page 8 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------------ ----------- ----------- --------- ------------ ------------- ELECTRIC OPERATING REVENUES (DOLLARS IN MILLIONS) REGULATED ELECTRICITY SEGMENT RETAIL 24 Residential $ 190 $ 268 $ 458 $ 24 25 Business 209 281 490 22 ------------ ----------- ----------- --------- ------------ ------------ 26 Total retail 399 549 - - 948 46 WHOLESALE REVENUE ON DELIVERED ELECTRICITY 27 Traditional contracts 3 5 8 1 28 Off-system sales - 12 12 12 29 Transmission for others 7 7 14 (2) 30 Other miscellaneous services 7 7 14 4 ------------ ----------- ----------- --------- ------------ ------------ 31 Total regulated electricity 416 580 - - 996 61 MARKETING AND TRADING SEGMENT 32 Electricity and other commodity sales 89 71 160 (39) ------------ ----------- ----------- --------- ------------ ------------ 33 Total operating electric revenues $ 505 $ 651 $ - $ - $ 1,156 $ 22 ============ =========== =========== ========= ============ ============ ELECTRIC SALES (GWH) REGULATED ELECTRICITY SEGMENT RETAIL SALES 34 Residential 2,367 2,889 5,256 124 35 Business 3,042 3,684 6,726 73 ------------ ----------- ----------- --------- ------------ ------------ 36 Total retail 5,409 6,573 - - 11,982 197 WHOLESALE ELECTRICITY DELIVERED 37 Traditional contracts 155 200 355 22 38 Off-system sales - 598 598 598 39 Retail load hedge management 750 702 1,452 552 ------------ ----------- ----------- --------- ------------ ------------ 40 Total regulated electricity 6,314 8,073 - - 14,387 1,369 MARKETING AND TRADING SEGMENT 41 Wholesale sales of electricity 5,777 4,901 10,678 (2,161) ------------ ----------- ----------- --------- ------------ ------------ 42 Total electric sales 12,091 12,974 - - 25,065 (792) ============ =========== =========== ========= ============ ============
See Glossary of Terms. Page 9 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------------ --------- -------- -------- ------------ ------------ MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (DOLLARS IN MILLIONS) REALIZED AND MARK-TO-MARKET COMPONENTS 43 Electricity and other commodity sales, realized (a) $ 12 $ 18 $ 30 $ (4) 44 Mark-to-market reversals on realized sales (b) (3) (8) (8) (9) 45 Change in mark-to-market value of forward sales 10 3 10 2 ------------ --------- -------- -------- -------- ------------ 46 Total gross margin $ 19 $ 13 $ - $ - $ 32 $ (11) ============ ========= ======== ======== ======== ============ BY PINNACLE WEST ENTITY 47 Parent company marketing and trading division $ 21 $ 6 $ 27 $ 4 48 APS (4) 3 (1) 4 49 Pinnacle West Energy 5 - 5 (12) 50 APS Energy Services (3) 4 1 (7) ------------ --------- -------- -------- -------- ------------ 51 Total gross margin $ 19 $ 13 $ - $ - $ 32 $ (11) ============ ========= ======== ======== ======== ============
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION As of June 30, 2005, Pinnacle West had accumulated net mark-to-market gains of $43 million related to our power marketing and trading activities. We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2005, $9 million; 2006, $7 million; 2007, $17 million; and thereafter, $10 million. ----------------- (a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 43 and in line 44 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not earnings recognition. The arithmetic opposites of amounts included in line 43 are included in line 44. For example, line 44 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the second quarter of 2005. A $8 million realized gain is included in the $18 million on line 43 for the second quarter of 2005. (b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations. See Glossary of Terms. Page 10 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------- ------- ------- ------- ------------ ------------ AVERAGE ELECTRIC CUSTOMERS RETAIL CUSTOMERS 52 Residential 889,967 888,509 889,238 35,064 53 Business 109,772 110,658 110,227 4,218 ------- ------- ------- ------- ------------ ------------ 54 Total 999,739 999,167 - - 999,465 39,282 55 Wholesale customers 81 76 79 (3) ------- ------- ------- ------- ------------ ------------ 56 Total customers 999,820 999,243 - - 999,544 39,279 ======= ======= ======= ======= ============ ============ 57 Customer Growth (% over prior year) 4.0% 4.2% 4.1% 0.5% RETAIL SALES (GWH) - WEATHER NORMALIZED 58 Residential 2,430 2,903 5,333 200 59 Business 3,058 3,693 6,751 137 ------- ------- ------- ------- ------------ ------------ 60 Total 5,488 6,596 - - 12,084 337 ======= ======= ======= ======= ============ ============ RETAIL USAGE (KWH/AVERAGE CUSTOMER) 61 Residential 2,660 3,252 5,911 (97) 62 Business 27,712 33,292 61,020 (1,739) RETAIL USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 63 Residential 2,730 3,268 5,997 (12) 64 Business 27,860 33,374 61,250 (1,143) ELECTRICITY DEMAND (MW) 65 System peak demand 3,997 6,458 6,458 826
See Glossary of Terms. Page 11 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------------ ----------- ---------- ---------- ------------ ------------- ENERGY SOURCES (GWH) GENERATION PRODUCTION 66 Nuclear 2,247 1,619 3,866 (142) 67 Coal 2,940 3,088 6,028 106 68 Gas, oil and other 1,127 2,074 3,201 1,495 ------------ ----------- ---------- ---------- ------------ ------------ 69 Total 6,314 6,781 - - 13,095 1,459 ------------ ----------- ---------- ---------- ------------ ------------ PURCHASED POWER 70 Firm load 586 880 1,466 (767) 71 Marketing and trading 5,832 5,984 11,816 (857) ------------ ----------- ---------- ---------- ------------ ------------ 72 Total 6,418 6,864 - - 13,282 (1,624) ------------ ----------- ---------- ---------- ------------ ------------ 73 Total energy sources 12,732 13,645 - - 26,377 (165) ============ =========== ========== ========== ============ ============ POWER PLANT PERFORMANCE CAPACITY FACTORS 74 Nuclear 94% 67% 80% (3)% 75 Coal 80% 83% 81% 2% 76 Gas, oil and other 17% 27% 22% 9% 77 System average 49% 49% 48% 1% GENERATION CAPACITY OUT OF SERVICE AND REPLACED FOR NATIVE LOAD (AVERAGE MW/DAY) 78 Nuclear 52 329 381 13 79 Coal 195 244 440 139 80 Gas 212 164 376 280 ------------ ----------- ---------- ---------- ------------ ------------ 81 Total 459 737 - - 1,197 432 82 Generation Fuel Cost ($/MWh) $ 15.50 $ 22.86 $ 19.31 $ 4.15
See Glossary of Terms. Page 12 of 31 Last Updated 7/27/2005 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2005
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD ------------ ---------- ------- ------- ------------ ------------ ENERGY MARKET INDICATORS (a) ELECTRICITY AVERAGE DAILY SPOT PRICES ($/MWH) ON-PEAK 83 Palo Verde $ 49.74 $ 53.33 $ 51.54 $ 4.49 84 SP15 $ 55.70 $ 55.19 $ 55.45 $ 3.90 OFF-PEAK 85 Palo Verde $ 37.04 $ 33.03 $ 35.04 $ 1.34 86 SP15 $ 40.96 $ 34.73 $ 37.85 $ 0.74 WEATHER INDICATORS ACTUAL 87 Cooling degree-days 34 1,538 1,572 (299) 88 Heating degree-days 457 1 458 (105) 89 Average humidity 56% 20% 38% 9% 10-YEAR AVERAGES 90 Cooling degree-days 80 1,491 1,571 - 91 Heating degree-days 521 36 557 - 92 Average humidity 43% 24% 33% 0% ECONOMIC INDICATORS BUILDING PERMITS -- METRO PHOENIX (b) (d) 93 Single-family 10,356 7,837 18,193 (5,488) 94 Multi-family 1,741 621 2,362 (719) ------------ ---------- ------- ------- ------------ ------------ 95 Total 12,097 8,458 - - 20,555 (6,207) ============ ========== ======= ======= ============ ============ ARIZONA JOB GROWTH (c) (d) 96 Payroll job growth (% over prior year) 4.1% 3.9% 4.0% 1.1% 97 Unemployment rate (%, seasonally adjusted) 4.4% 4.9% 4.7% (0.5)%
------------------- Sources: (a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc. (b) Arizona Real Estate Center, Arizona State University W.P. Carey College of Business (c) Arizona Department of Economic Security (d) The economic indicators reflect latest available data through periods ending May 2005. See Glossary of Terms. Page 13 of 31