Long-Term Debt and Liquidity Matters (Tables)

12 Months Ended

Dec. 31, 2012

Long-Term Debt and Liquidity Matters

Components of long-term debt on the Consolidated Balance Sheets

All of Pinnacle West’s and APS’s debt is unsecured.  The following table presents the components of long-term debt on the Consolidated Balance Sheets outstanding at December 31, 2012 and 2011 (dollars in thousands):

	Maturity	Interest	December 31,
	Dates (a)	Rates	2012			2011
APS
Pollution Control Bonds:
Variable	2029-2038	(b)	$	75,580		$	43,580
Fixed	2024-2034	1.25%-6.00%	490,275			522,275
Pollution control bonds with senior notes		5.05%	—			90,000
Total Pollution Control Bonds			565,855			655,855
Senior unsecured notes	2014-2042	4.50%-8.75%	2,575,000			2,625,000
Palo Verde sale leaseback lessor notes	2015	8.00%	65,547			96,803
Capitalized lease obligations		(c)	—			1,029
Unamortized discount			(9,486		)	(7,198		)
Total APS long-term debt			3,196,916			3,371,489
Less current maturities			122,828			477,435
Total APS long-term debt less current maturities			3,074,088			2,894,054
Pinnacle West
Term loan	2015	(d)	125,000			125,000
TOTAL LONG-TERM DEBT LESS CURRENT MATURITIES			$	3,199,088		$	3,019,054

(a) This schedule does not reflect the timing of redemptions that may occur prior to maturities.

(b) The weighted-average rate for the variable rate pollution control bonds was 0.13%-0.15% at December 31, 2012 and 0.09% at December 31, 2011.

(c) The weighted-average interest rate was 5.27% at December 31, 2011.

(d) The weighted-average interest rate was 1.312% at December 31, 2012 and 1.794% at December 31, 2011.

Principal payments due on Pinnacle West's and APS's total long-term debt

The following table shows principal payments due on Pinnacle West’s and APS’s total long-term debt (dollars in millions):

Year	Consolidated Pinnacle West		Consolidated APS
2013	$	123	$	123
2014	540		540
2015	470		345
2016	358		358
2017	—		—
Thereafter	1,840		1,840
Total	$	3,331	$	3,206

Schedule of estimated fair value of long-term debt, including current maturities

The following table represents the estimated fair value of our long-term debt, including current maturities (dollars in millions):

	As of December 31, 2012				As of December 31, 2011
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Pinnacle West	$	125	$	125	$	125	$	123
APS	3,197		3,750		3,371		3,803
Total	$	3,322	$	3,875	$	3,496	$	3,926