8-K

UNITED STATES 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): June 30, 2006

	Exact Name of Registrant as Specified in
	Charter; State of Incorporation;	IRS Employer
Commission File Number	Address and Telephone Number	Identification Number
1-8962	Pinnacle West Capital Corporation	86-0512431
	(an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000
1-4473	Arizona Public Service Company	86-0011170
	(an Arizona corporation) 400 North Fifth Street, P.O. Box 53999 Phoenix, AZ 85072-3999 (602) 250-1000

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     o Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

     This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

TABLE OF CONTENTS

	Page
Item 2.02 Results of Operations and Financial Condition	2
Item 7.01 Regulation FD Disclosure	3
Item 9.01 Financial Statements and Exhibits	4
Signatures	5

TABLE OF CONTENTS

Exhibit 99.1

Exhibit 99.2

Exhibit 99.3

Exhibit 99.4

Exhibit 99.5

Exhibit 99.6

Exhibit 99.7

Exhibit 99.8

Exhibit 99.9

Exhibit 99.10

Item 2.02. Results of Operations and Financial Condition

     Certain of the Information referenced in Item 7.01 below relates to Pinnacle West Capital Corporation’s (“Pinnacle West” or the “Company”) results of operations for the three and six months ended June 30, 2006. This Information is attached hereto as Exhibits 99.2, 99.3 99.7, 99.9 and 99.10.

     On July 21, 2006, the Company issued a press release regarding its financial results for the three and six months ended June 30, 2006. A copy of the press release is attached hereto as Exhibit 99.9.

     The information being furnished pursuant to this Item 2.02 and in Exhibits 99.2, 99.3 99.7, 99.9 and 99.10 of this report relating to the Company’s financial results for the three and six months ended June 30, 2006 shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

     Exhibit 99.9 to this report contains certain “non-GAAP financial measures,” as defined in Item 10(e) of Regulation S-K of the Exchange Act. We describe these non-GAAP financial measures as “on-going earnings” and “on-going earnings per share.” Exhibit 99.9 contains a table that reconciles each of these non-GAAP financial measures to net income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”). We believe on-going earnings provide investors with a useful indicator of our results that is comparable among periods because it excludes the effects of unusual items that may occur on an irregular basis. Investors should note that these non-GAAP financial measures involve judgments by management, including whether an item is classified as an unusual item. We use on-going earnings, or similar concepts, to measure our performance internally in reports for management.

2

Item 7.01. Regulation FD Disclosure

Financial and Business Information

     The Company is providing quarterly consolidated statistical summaries and a glossary of relevant terms (collectively, “Information”) to help interested parties better understand its business (see Exhibits 99.1, 99.2, 99.3, 99.4, 99.5, 99.6, 99.7, 99.8 and 99.10). This Information is concurrently being posted to the Company’s website at www.pinnaclewest.com. The Information may not represent all of the factors that could affect the Company’s operating or financial results for various periods. Some of the Information is preliminary in nature and could be subject to significant adjustment. Some of the Information is based on information received from third parties and may contain inaccuracies. The Company is not responsible for any such inaccuracies. Although the Company may update or correct the Information if it is aware that such Information has been revised or is inaccurate, the Company assumes no obligation to update or correct the Information and reserves the right to discontinue the provision of all or any portion of the Information at any time or to change the type of Information provided.

3

Item 9.01. Financial Statements and Exhibits

             (c) Exhibits.

Exhibit
No.	Registrant(s)	Description
99.1	Pinnacle West Arizona Public Service Company (“APS”)	Pinnacle West Capital Corporation quarterly consolidated statistical summary (cover page and list of contents).
99.2	Pinnacle West APS	Pinnacle West Capital Corporation quarterly consolidated statistical summary for the six-month periods ended June 30, 2006 and 2005.
99.3	Pinnacle West APS	Pinnacle West Capital Corporation consolidated statistics by quarter for 2006.
99.4	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2005.
99.5	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2004.
99.6	Pinnacle West	Pinnacle West Capital Corporation consolidated statistics by quarter for 2003.
99.7	Pinnacle West APS	Pinnacle West Capital Corporation earnings variance explanations for the three and six months ended June 30, 2006 and 2005 and condensed consolidated statements of income for the three and six months ended June 30, 2006 and 2005.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on July 21, 2006.
99.10	Pinnacle West APS	Non-GAAP Financial Measure Reconciliation — Operating Income (GAAP Measure) to Gross Margin (Non-GAAP Financial Measure).

4

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PINNACLE WEST CAPITAL CORPORATION (Registrant)
Dated: July 21, 2006	By:	/s/ Barbara M. Gomez
		Barbara M. Gomez
		Vice President and Treasurer
	ARIZONA PUBLIC SERVICE COMPANY (Registrant)
Dated: July 21, 2006	By:	/s/ Barbara M. Gomez
		Barbara M. Gomez
		Vice President and Treasurer

5

EX-99.1

Last Updated 7/21/06

EXHIBIT 99.1

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2006 and 2005

List of Contents

2006 Second Quarter Summary

2006 Year-to-Date

2005 by Quarter

2004 by Quarter

2003 by Quarter

Quarters may not sum to totals due to rounding.

Certain current and prior-year amounts have been reclassified to conform to current-period presentation.

The definitions of terms used in this statistical summary are contained
in the “Glossary of Terms” on the Pinnacle West website at:
http://www.pinnaclewest.com/files/investors/2006Q2QuarStatsGloss.pdf

This statistical data may be graphed in various quarterly or annual comparisons
using the “Interactive Charts” tool on the Pinnacle West website at:
http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/landing.html

EX-99.2

Last Updated 7/21/06

EXHIBIT 99.2

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2006 and 2005

			3 Mo. Ended June									6 Mo. Ended June
Line			2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
		EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
	1	Arizona Public Service	$	94		$	64		$	30		$	88		$	91		$	(3	)
	2	Pinnacle West Energy		—			12			(12	)		—			(8	)		8
	3	APS Energy Services		—			1			(1	)		1			(2	)		3
	4	SunCor		8			11			(3	)		30			19			11
	5	El Dorado		—			—			—			(2	)		(1	)		(1	)
	6	Parent Company		9			(3	)		12			5			16			(11	)
	7	Income From Continuing Operations		111			85			26			122			115			7
	8	Loss From Discontinued Operations — Net of Tax		1			(58	)		59			3			(64	)		67
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
	10	Net Income	$	112		$	27		$	85		$	125		$	51		$	74
		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
	11	Arizona Public Service	$	0.95		$	0.66		$	0.29		$	0.89		$	0.97		$	(0.08	)
	12	Pinnacle West Energy		—			0.13			(0.13	)		—			(0.09	)		0.09
	13	APS Energy Services		—			0.01			(0.01	)		0.01			(0.03	)		0.04
	14	SunCor		0.08			0.11			(0.03	)		0.30			0.21			0.09
	15	El Dorado		—			—			—			(0.02	)		(0.01	)		(0.01	)
	16	Parent Company		0.08			(0.03	)		0.11			0.05			0.17			(0.12	)
	17	Income From Continuing Operations		1.11			0.88			0.23			1.23			1.22			0.01
	18	Income (Loss) From Discontinued Operations — Net of Tax		0.02			(0.60	)		0.62			0.02			(0.68	)		0.70
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
	20	Net Income	$	1.13		$	0.28		$	0.85		$	1.25		$	0.54		$	0.71
	21	BOOK VALUE PER SHARE	$	33.00	*	$	32.89		$	0.11		$	33.00	*	$	32.89			0.11
		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		99,640			96,299			3,341			99,562			94,189			5,373
	23	End of Period		99,284			98,442			842			99,284			98,442			842

* Estimate

See Glossary of Terms. Page 2 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2006 and 2005

		3 Mo. Ended June							6 Mo. Ended June
Line		2006		2005		Incr (Decr)			2006		2005		Incr (Decr)
	ELECTRIC OPERATING REVENUES       (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	337	$	268	$	69		$	539	$	458	$	81
25	Business		333		281		52			566		490		76
26	Total retail		670		549		121			1,105		948		157
	Wholesale revenue on delivered electricity
27	Traditional contracts		7		5		2			13		8		5
28	Off-system sales		22		12		10			34		12		22
29	Transmission for others		6		7		(1	)		12		14		(2	)
30	Other miscellaneous services		8		7		1			15		14		1
31	Total regulated operating electricity revenues		713		580		133			1,179		996		183
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		90		71		19			175		160		15
33	Total operating electric revenues	$	803	$	651	$	152		$	1,354	$	1,156	$	198
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		3,284		2,889		395			5,703		5,256		447
35	Business		3,971		3,684		287			7,170		6,726		444
36	Total retail		7,255		6,573		682			12,873		11,982		891
	Wholesale electricity delivered
37	Traditional contracts		181		200		(19	)		396		355		41
38	Off-system sales		586		598		(12	)		1,522		598		924
39	Retail load hedge management		621		702		(81	)		799		1,452		(653	)
40	Total regulated electricity		8,643		8,073		570			15,590		14,387		1,203
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		3,862		5,009		(1,147	)		7,753		11,069		(3,316	)
42	Total electric sales		12,505		13,082		(577	)		23,343		25,456		(2,113	)

See Glossary of Terms. Page 3 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2006 and 2005

		3 Mo. Ended June									6 Mo. Ended June
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	POWER SUPPLY ADJUSTOR       (“PSA”) — REGULATED       ELECTRICITY SEGMENT       (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	169		$	—		$	169		$	173		$	—		$	173
44	Deferred fuel and purchased power costs — current period		78			38			40			91			38			53
45	Interest on deferred fuel		3			—			3			4			—			4
46	Amounts recovered through revenues		(75	)		—			(75	)		(93	)		—			(93	)
47	Deferred fuel and purchased power regulatory asset — ending balance	$	175		$	38		$	137		$	175		$	38		$	137
	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)	$	17		$	18		$	(1	)	$	29		$	30		$	(1	)
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		(8	)		7			(3	)		(8	)		5
50	Change in mark-to-market value of forward sales		—			3			(3	)		2			10			(8	)
51	Total gross margin	$	16		$	13		$	3		$	28		$	32		$	(4	)
	By Pinnacle West Entit
52	Parent company marketing and trading division	$	11		$	6		$	5		$	10		$	27		$	(17	)
53	APS		2			3			(1	)		12			(1	)		13
54	Pinnacle West Energy		—			—			—			—			5			(5	)
55	APS Energy Services		3			4			(1	)		6			1			5
56	Total gross margin	$	16		$	13		$	3		$	28		$	32		$	(4	)

Future Marketing and Trading Mark-to-Market Realization

As of June 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $44 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, $9 million; 2007, $21 million; and 2008, $14 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 second quarter of 2006. A $1 million realized gain is included in the $17 million on line 48 for the second 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 7/21/06

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2006 and 2005

		3 Mo. Ended June									6 Mo. Ended June
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		930,402			888,509			41,893			930,601			889,238			41,363
58	Business		114,803			110,658			4,145			114,186			110,227			3,959
59	Total		1,045,205			999,167			46,038			1,044,787			999,465			45,322
60	Wholesale customers		76			76			—			76			79			(3	)
61	Total customers		1,045,281			999,243			46,038			1,044,863			999,544			45,319
62	Customer growth (% over prior year)		4.6	%		4.2	%		0.4	%		4.5	%		4.1	%		0.4	%
	RETAIL SALES (GWH) —       WEATHER NORMALIZED
63	Residential		3,105			2,905			200			5,619			5,344			275
64	Business		3,926			3,693			233			7,178			6,751			427
65	Total		7,031			6,598			433			12,797			12,095			702
	RETAIL USAGE       (KWh/Average Customer)
66	Residential		3,530			3,252			278			6,128			5,911			218
67	Business		34,590			33,292			1,298			62,792			61,020			1,773
	RETAIL USAGE — WEATHER       NORMALIZED (KWh/Average Customer)
68	Residential		3,337			3,269			68			6,038			6,010			29
69	Business		34,194			33,377			817			62,859			61,247			1,613
	ELECTRICITY DEMAND (MW)
70	System peak demand		6,624			6,458			166			6,624			6,458			166

See Glossary of Terms. Page 5 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended June 30, 2006 and 2005

		3 Mo. Ended June									6 Mo. Ended June
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		1,198			1,619			(421	)		2,918			3,866			(948	)
72	Coal		3,183			3,088			95			6,266			6,028			238
73	Gas, oil and other		2,000			2,074			(74	)		3,252			3,201			51
74	Total generation production		6,381			6,781			(400	)		12,436			13,095			(659	)
	Purchased power
75	Firm load		1,884			880			1,004			2,249			1,466			783
76	Marketing and trading		4,807			5,984			(1,177	)		9,654			11,816			(2,162	)
77	Total purchased power		6,691			6,864			(173	)		11,903			13,282			(1,379	)
78	Total energy sources		13,072			13,645			(573	)		24,339			26,377			(2,038	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		49	%		67	%		(18	)%		60	%		80	%		(20	)%
80	Coal		84	%		83	%		1	%		83	%		81	%		2	%
81	Gas, oil and other		28	%		28	%		0	%		23	%		22	%		1	%
82	System average		48	%		49	%		(1	)%		47	%		48	%		(1	)%
	Generation Capacity Out of       Service and Replaced for Native       Load (average MW/day) (a)
83	Nuclear		553			329			224			859			381			478
84	Coal		184			244			(60	)		441			439			2
85	Gas		117			164			(47	)		318			376			(58	)
86	Total		854			737			117			1,618			1,196			422

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 6 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2006 and 2005

		3 Mo. Ended June									6 Mo. Ended June
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY MARKET    INDICATORS (a)
	Electricity Average Daily    Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	51.30		$	53.33		$	(2.03	)	$	52.54		$	51.54		$	1.00
88	SP15	$	55.39		$	55.19		$	0.20		$	56.87		$	55.45		$	1.42
	Off-Peak
89	Palo Verde	$	28.38		$	33.03		$	(4.65	)	$	35.15		$	35.04		$	0.11
90	SP15	$	27.73		$	34.73		$	(7.00	)	$	36.26		$	37.85		$	(1.59	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		1,740			1,538			202			1,783			1,572			211
92	Heating degree-days		4			1			3			468			458			10
93	Average humidity		18	%		20	%		(2	)%		23	%		38	%		(15	)%
	10-Year Averages
94	Cooling degree-days		1,547			1,547			—			1,646			1,646			—
95	Heating degree-days		31			31			—			545			545			—
96	Average humidity		23	%		23	%		0	%		32	%		32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro    Phoenix (b) (d)
97	Single-family		5,756			7,837			(2,081	)		14,472			18,193			(3,721	)
98	Multi-family		2,305			621			1,684			5,192			2,362			2,830
99	Total		8,061			8,458			(397	)		19,664			20,555			(891	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		4.7	%		5.6	%		(0.9	)%		5.2	%		5.1	%		0.1	%
101	Unemployment rate (%, seasonally adjusted)		4.3	%		4.7	%		(0.4	)%		4.4	%		4.6	%		(0.2	)%

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 May 31, 2006.

See Glossary of Terms Page 7 of 31

EX-99.3

Last Updated 7/21/06

EXHIBIT 99.3

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

															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	$	(6	)	$	94						$	88		$	(3	)
2	Pinnacle West Energy		—			—							—			8
3	APS Energy Services		1			—							1			3
4	SunCor		21			8							30			11
5	El Dorado		(1	)		—							(2	)		(1	)
6	Parent Company		(3	)		9							5			(11	)
7	Income From Continuing Operations		12			111			—		—		122			7
8	Loss From Discontinued Operations — Net of Tax		—			1							3			67
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—		—			—
10	Net Income	$	12		$	112		$	—	$	—	$	125		$	74
	EARNINGS PER SHARE BY    SUBSIDIARY — DILUTED
11	Arizona Public Service	$	(0.06	)	$	0.95						$	0.89		$	(0.08	)
12	Pinnacle West Energy		—			—							—			0.09
13	APS Energy Services		0.01			—							0.01			0.04
14	SunCor		0.21			0.08							0.30			0.09
15	El Dorado		(0.01	)		—							(0.02	)		(0.01	)
16	Parent Company		(0.03	)		0.08							0.05			(0.12	)
17	Income From Continuing Operations		0.12			1.11			—		—		1.23			0.01
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			0.02							0.02			0.70
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—		—			—
20	Net Income	$	0.13		$	1.13		$	—	$	—	$	1.25		$	0.71
21	BOOK VALUE PER SHARE	$	32.37		$	33.00	*					$	33.00	*	$	0.11
	COMMON SHARES    OUTSTANDING (Thousands)
22	Average — Diluted		99,449			99,640							99,562			5,373
23	End of Period		99,187			99,284							99,284			842

* Estimate
See Glossary of Terms	Page 8 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

												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	$	202	$	337					$	539	$	81
25	Business		233		333						566		76
26	Total retail		435		670		—		—		1,105		157
	Wholesale revenue on delivered electricity
27	Traditional contracts		6		7						13		5
28	Off-system sales		12		22						34		22
29	Transmission for others		6		6						12		(2	)
30	Other miscellaneous services		7		8						15		1
31	Total regulated operating electricity revenues		466		713		—		—		1,179		183
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		85		90						175		15
33	Total operating electric revenues	$	551	$	803	$	—	$	—	$	1,354	$	198
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,419		3,284						5,703		447
35	Business		3,199		3,971						7,170		444
36	Total retail		5,618		7,255		—		—		12,873		891
	Wholesale electricity delivered
37	Traditional contracts		215		181						396		41
38	Off-system sales		936		586						1,522		924
39	Retail load hedge management		178		621						799		(653	)
40	Total regulated electricity		6,947		8,643		—		—		15,590		1,203
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		3,891		3,862						7,753		(3,316	)
42	Total electric sales		10,838		12,505		—		—		23,343		(2,113	)

See Glossary of Terms Page 9 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
	POWER SUPPLY    ADJUSTOR (“PSA”) —    REGULATED ELECTRICITY    SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	173		$	169							173			173
44	Deferred fuel and purchased power costs — current period		13			78							91			53
45	Interest on deferred fuel		1			3							4			4
46	Amounts recovered through revenues		(18	)		(75	)						(93	)		(93	)
47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	—	$	—	$	175		$	137
	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		$	17						$	29		$	(1	)
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)						(3	)		5
50	Change in mark-to-market value of forward sales		1			—							2			(8	)
51	Total gross margin	$	11		$	16		$	—	$	—	$	28		$	(4	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	(2	)	$	11						$	10		$	(17	)
53	APS		10			2							12			13
54	Pinnacle West Energy		—			—							—			(5	)
55	APS Energy Services		3			3							6			5
56	Total gross margin	$	11		$	16		$	—	$	—	$	28		$	(4	)

Future Marketing and Trading Mark-to-Market Realization

As of June 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $44 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, $9 million; 2007, $21 million; and 2008, $14 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 $11 million was transferred to “realized” for the second quarter of 2006. A $11 million realized gain is included in the $17 million on line 48 for the second 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 10 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC      CUSTOMERS
	Retail customers
57	Residential		930,799			930,402							930,601			41,363
58	Business		113,570			114,803							114,186			3,959
59	Total		1,044,369			1,045,205			—		—		1,044,787			45,322
60	Wholesale customers		75			76							76			(3	)
61	Total customers		1,044,444			1,045,281			—		—		1,044,863			45,319
62	Customer growth (% over prior      year)		4.5	%		4.6	%						4.5	%		0.4	%
	RETAIL SALES (GWH) —      WEATHER NORMALIZED
63	Residential		2,514			3,105							5,619			275
64	Business		3,252			3,926							7,178			427
65	Total		5,766			7,031			—		—		12,797			702
	RETAIL USAGE (KWh/Average      Customer)
66	Residential		2,763			3,530							6,128			218
67	Business		30,444			34,590							62,792			1,773
	RETAIL USAGE — WEATHER      NORMALIZED (KWh/Average      Customer)
68	Residential		2,700			3,337							6,038			29
69	Business		28,636			34,194							62,859			1,613
	ELECTRICITY DEMAND (MW)
70	System peak demand		4,205			6,624							6,624			166

See Glossary of Terms. Page 11 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

															Increase
															(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		1,720			1,198							2,918			(948	)
72	Coal		3,083			3,183							6,266			238
73	Gas, oil and other		1,252			2,000							3,252			51
74	Total generation production		6,055			6,381			—		—		12,436			(659	)
	Purchased power
75	Firm load		365			1,884							2,249			783
76	Marketing and trading		4,847			4,807							9,654			(2,162	)
77	Total purchased power		5,212			6,691			—		—		11,903			(1,379	)
78	Total energy sources		11,267			13,072			—		—		24,339			(2,038	)
	POWER PLANT      PERFORMANCE
	Capacity Factors
79	Nuclear		71	%		49	%						60	%		(20	)%
80	Coal		83	%		84	%						83	%		2	%
81	Gas, oil and other		18	%		28	%						23	%		1	%
82	System average		46	%		48	%						47	%		(1	)%
	Generation Capacity Out of      Service and Replaced for Native      Load (average MW/day) (a)
83	Nuclear		306			553							859			478
84	Coal		257			184							441			2
85	Gas		201			117							318			(58	)
86	Total		764			854			—		—		1,618			422

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 12 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006

															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
87	Palo Verde	$	53.78		$	51.30						$	52.54		$	1.00
88	SP15	$	58.34		$	55.39						$	56.87		$	1.42
	Off-Peak
89	Palo Verde	$	41.92		$	28.38						$	35.15		$	0.11
90	SP15	$	44.79		$	27.73						$	36.26		$	(1.59	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		43			1,740							1,783			211
92	Heating degree-days		464			4							468			10
93	Average humidity		28	%		18	%						23	%		(15	)%
	10-Year Averages
94	Cooling degree-days		99			1,547							1,646			—
95	Heating degree-days		514			31							545			—
96	Average humidity		41	%		23	%						32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro      Phoenix (b) (d)
97	Single-family		8,716			5,756							14,472			(3,721	)
98	Multi-family		2,887			2,305							5,192			2,830
99	Total		11,603			8,061			—		—		19,664			(891	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		5.6	%		4.7	%						5.2	%		0.1	%
101	Unemployment rate (%, seasonally adjusted)		4.4	%		4.3	%						4.4	%		(0.2	)%

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 May 31, 2006.

See Glossary of Terms. Page 13 of 31

EX-99.4

Last Updated 7/21/06

EXHIBIT 99.4

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		$	61		$	18		$	170		$	(30	)
2	Pinnacle West Energy		(21	)		12			(71	)		(6	)		(85	)		(27	)
3	APS Energy Services		(3	)		1			—			(3	)		(6	)		(9	)
4	SunCor		9			11			6			13			39			(2	)
5	El Dorado		(1	)		—			—			—			(2	)		(35	)
6	Parent Company		19			(3	)		89			2			107			79
7	Income From Continuing Operations		30			85			85			24			223			(24	)
8	Loss From Discontinued Operations — Net of Tax		(6	)		(58	)		19			(3	)		(47	)		(43	)
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
10	Net Income	$	24		$	27		$	104		$	21		$	176		$	(67	)
	EARNINGS PER SHARE BY      SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.30		$	0.66		$	0.62		$	0.19		$	1.77		$	(0.41	)
12	Pinnacle West Energy		(0.23	)		0.13			(0.72	)		(0.06	)		(0.89	)		(0.26	)
13	APS Energy Services		(0.04	)		0.01			—			(0.04	)		(0.06	)		(0.09	)
14	SunCor		0.09			0.11			0.07			0.13			0.40			(0.05	)
15	El Dorado		(0.01	)		—			(0.01	)		(0.01	)		(0.02	)		(0.38	)
16	Parent Company		0.21			(0.03	)		0.90			0.03			1.11			0.81
17	Income From Continuing Operations		0.32			0.88			0.86			0.24			2.31			(0.38	)
18	Income (Loss) From Discontinued Operations — Net of Tax		(0.05	)		(0.60	)		0.19			(0.02	)		(0.49	)		(0.46	)
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
20	Net Income	$	0.27		$	0.28		$	1.05		$	0.22		$	1.82		$	(0.84	)
21	BOOK VALUE PER SHARE	$	32.50		$	32.89		$	35.81		$	34.58		$	34.58		$	2.44
	COMMON SHARES      OUTSTANDING (Thousands)
22	Average — Diluted		92,045			96,299			98,816			99,050			96,590			5,058
23	End of Period		92,103			98,442			98,881			99,057			99,057			7,264

See Glossary of Terms. Page 14 of 31

Last Updated 7/21/06

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	$	414	$	207	$	1,079	$	95
25	Business		209		281		308		243		1,041		63
26	Total retail		399		549		722		450		2,120		158
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		5		9		6		23		7
28	Off-system sales		—		12		8		20		40		40
29	Transmission for others		7		7		7		5		26		(6	)
30	Other miscellaneous services		7		7		7		7		28		3
31	Total regulated operating electricity revenues		416		580		753		488		2,237		202
	MARKETING AND TRADING      SEGMENT
32	Electricity and other commodity sales		89		71		107		83		351		(50	)
33	Total operating electric revenues	$	505	$	651	$	860	$	571	$	2,588	$	152
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY      SEGMENT
	Retail sales
34	Residential		2,367		2,889		4,449		2,518		12,223		696
35	Business		3,042		3,684		4,100		3,427		14,254		428
36	Total retail		5,409		6,573		8,549		5,945		26,477		1,124
	Wholesale electricity delivered
37	Traditional contracts		155		200		269		227		850		141
38	Off-system sales		—		598		212		526		1,336		1,336
39	Retail load hedge management		750		702		1,026		532		3,010		278
40	Total regulated electricity		6,314		8,073		10,056		7,230		31,673		2,879
	MARKETING AND TRADING      SEGMENT
41	Wholesale sales of electricity		6,060		5,009		7,263		5,240		23,572		(6,606	)
42	Total electric sales		12,374		13,082		17,319		12,470		55,245		(3,727	)

See Glossary of Terms. Page 15 of 31

Last Updated 7/21/06

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
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	38			143		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			38			104			29			171			171
45	Interest on deferred fuel		—			—			1			1			2			2
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	38		$	143		$	173		$	173		$	173
	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)	$	12		$	18		$	3		$	22		$	55		$	(9	)
49	Mark-to-market reversals on realized sales (a) (b)		(3	)		(8	)		3			(17	)		(16	)		(11	)
50	Change in mark-to-market value of forward sales		10			3			14			1			20			(1	)
51	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	21		$	6		$	26		$	5		$	59		$	34
53	APS		(4	)		3			(8	)		3			(6	)		(1	)
54	Pinnacle West Energy		5			—			—			—			5			(41	)
55	APS Energy Services		(3	)		4			2			(2	)		1			(13	)
56	Total gross margin	$	19		$	13		$	20		$	6		$	59		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of December 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: 2006, $14 million; 2007, $20 million; and 2008, $11 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 $16 million was transferred to “realized” for the total year 2005. A $16 million realized gain is included in the $55 million on line 48 for the total year 2005.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms. Page 16 of 31

Last Updated 7/21/06

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
57	Residential		889,967			888,509			895,789			911,623			896,472			37,403
58	Business		109,795			110,658			111,648			112,569			111,168			4,053
59	Total		999,762			999,167			1,007,437			1,024,192			1,007,640			41,456
60	Wholesale customers		81			76			78			77			78			(3	)
61	Total customers		999,843			999,243			1,007,515			1,024,269			1,007,718			41,453
62	Customer growth (% over prior year)		4.0	%		4.2	%		4.5	%		4.5	%		4.3	%		0.6	%
	RETAIL SALES (GWH) — WEATHER NORMALIZED
63	Residential		2,439			2,905			4,421			2,515			12,280			572
64	Business		3,058			3,693			4,120			3,414			14,286			415
65	Total		5,497			6,598			8,541			5,929			26,566			987
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,660			3,252			4,967			2,763			13,635			217
67	Business		27,706			33,292			36,723			30,444			128,514			(878	)
	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,741			3,269			4,935			2,758			13,698			70
69	Business		27,860			33,377			36,899			30,332			128,507			(987	)
	ELECTRICITY DEMAND (MW)
70	System peak demand		3,997			6,458			7,000			5,169			7,000			598

See Glossary of Terms. Page 17 of 31

Last Updated 7/21/06

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
71	Nuclear		2,247			1,619			2,147			1,496			7,509			(674	)
72	Coal		2,940			3,088			3,574			3,458			13,060			394
73	Gas, oil and other		1,127			2,074			3,018			1,482			7,701			2,373
74	Total generation production		6,314			6,781			8,739			6,436			28,270			2,093
	Purchased power
75	Firm load		586			880			1,589			402			3,474			(851	)
76	Marketing and trading		5,832			5,984			7,795			6,102			25,713			(4,479	)
77	Total purchased power		6,418			6,864			9,384			6,504			29,187			(5,330	)
78	Total energy sources		12,732			13,645			18,123			12,940			57,457			(3,237	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		94	%		67	%		88	%		61	%		77	%		(7	)%
80	Coal		79	%		83	%		95	%		91	%		87	%		3	%
81	Gas, oil and other		18	%		28	%		40	%		29	%		29	%		9	%
82	System average		50	%		49	%		63	%		51	%		53	%		2	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		52			329			107			419			227			66
84	Coal		195			244			57			103			150			43
85	Gas		212			164			140			226			186			144
86	Total		459			737			304			748			563			253

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 18 of 31

Last Updated 7/21/06

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
87	Palo Verde	$	49.74		$	53.33		$	78.94		$	83.58		$	66.40		$	17.10
88	SP15	$	55.70		$	55.19		$	83.21		$	97.65		$	72.94		$	17.74
	Off-Peak
89	Palo Verde	$	37.04		$	33.03		$	52.35		$	67.79		$	47.55		$	12.81
90	SP15	$	40.96		$	34.73		$	56.08		$	76.45		$	52.06		$	13.44
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		34			1,538			2,583			508			4,663			(31	)
92	Heating degree-days		457			1			—			308			766			(219	)
93	Average humidity		56	%		20	%		29	%		30	%		34	%		2	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)
97	Single-family		10,356			12,013			11,577			9,312			43,258			(4,859	)
98	Multi-family		1,741			1,645			2,360			2,032			7,778			192
99	Total		12,097			13,658			13,937			11,344			51,036			(4,667	)
	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		4.8	%		5.5	%		6.1	%		6.0	%		5.6	%		2.2	%
101	Unemployment rate (%, seasonally adjusted)		4.5	%		4.7	%		4.8	%		4.7	%		4.7	%		(0.3	)%

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

See Glossary of Terms. Page 19 of 31

EX-99.5

Last Updated 7/21/06

EXHIBIT 99.5

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																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	$	34		$	55		$	95	$	15		$	200		$	19
2	Pinnacle West Energy		(22	)		(14	)		1		(23	)		(58	)		(50	)
3	APS Energy Services		2			1			1		(1	)		3			(13	)
4	SunCor		2			4			4		31			41			(5	)
5	El Dorado		—			34			—		—			33			34
6	Parent Company		15			(6	)		3		16			28			37
7	Income From Continuing Operations		31			74			104		38			247			22
8	Income (Loss) From Discontinued Operations — Net of Tax		—			(1	)		1		(4	)		(4	)		(20	)
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—
10	Net Income	$	31		$	73		$	105	$	34		$	243		$	2
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.38		$	0.60		$	1.04	$	0.16		$	2.18		$	0.20
12	Pinnacle West Energy		(0.24	)		(0.15	)		0.01		(0.25	)		(0.63	)		(0.55	)
13	APS Energy Services		0.02			0.01			0.01		(0.01	)		0.03			(0.15	)
14	SunCor		0.02			0.04			0.05		0.34			0.45			(0.05	)
15	El Dorado		—			0.37			—		—			0.36			0.37
16	Parent Company		0.15			(0.06	)		0.03		0.17			0.30			0.40
17	Income From Continuing Operations		0.33			0.81			1.14		0.41			2.69			0.22
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			(0.02	)		0.01		(0.04	)		(0.03	)		(0.19	)
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—
20	Net Income	$	0.34		$	0.79		$	1.15	$	0.37		$	2.66		$	0.03
21	BOOK VALUE PER SHARE	$	31.19		$	31.68		$	32.55	$	32.14		$	32.14		$	1.17
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		91,376			91,400			91,491		91,779			91,532			127
23	End of Period		91,310			91,309			91,443		91,793			91,793			505

See Glossary of Terms. Page 20 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

												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	$	189	$	245	$	360	$	190	$	984	$	27
25	Business		211		257		289		221		978		25
26	Total retail		400		502		649		411		1,962		52
	Wholesale revenue on delivered electricity
27	Traditional contracts		3		4		6		3		16		1
28	Off-system sales		—		—		—		—		—		—
29	Transmission for others		8		8		8		8		32		4
30	Other miscellaneous services		4		6		8		7		25		—
31	Total regulated operating electricity revenues		415		520		671		429		2,035		57
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		89		110		91		111		401		9
33	Total operating electric revenues	$	504	$	630	$	762	$	540	$	2,436	$	66
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,410		2,722		4,028		2,367		11,527		380
35	Business		3,051		3,602		3,937		3,236		13,826		411
36	Total retail		5,461		6,324		7,965		5,603		25,353		791
	Wholesale electricity delivered
37	Traditional contracts		138		195		210		166		709		209
38	Off-system sales		—		—		—		—		—		—
39	Retail load hedge management		169		731		943		889		2,732		1,638
40	Total regulated electricity		5,768		7,250		9,118		6,658		28,794		2,638
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		5,696		7,141		8,994		8,347		30,178		1,375
42	Total electric sales		11,464		14,391		18,112		15,005		58,972		4,013

See Glossary of Terms. Page 21 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			—			—			—			—			—
45	Interest on deferred fuel		—			—			—			—			—			—
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—
	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)	$	12		$	21		$	16		$	15		$	64		$	(1	)
49	Mark-to-market reversals on realized sales (a) (b)		1			(4	)		(3	)		(1	)		(5	)		6
50	Change in mark-to-market value of forward sales		8			4			8			3			21			28
51	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	12		$	6		$	5		$	1		$	25		$	30
53	APS		(5	)		—			2			(2	)		(5	)		(13	)
54	Pinnacle West Energy		10			11			10			16			46			38
55	APS Energy Services		4			4			4			2			14			(22	)
56	Total gross margin	$	21		$	21		$	21		$	17		$	80		$	33

(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 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 $5 million was transferred to “realized” for the total year 2004. A $5 million realized gain is included in the $64 million on line 48 for the total year 2004.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms. Page 22 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		855,754			852,594			856,353			871,575			859,069			30,703
58	Business		105,502			106,517			107,583			108,860			107,115			4,019
59	Total		961,256			959,111			963,936			980,435			966,184			34,722
60	Wholesale customers		81			82			85			77			81			15
61	Total customers		961,337			959,193			964,021			980,512			966,265			34,737
62	Customer growth (% over prior year)		3.4	%		3.8	%		3.9	%		3.9	%		3.7	%		0.4	%
	RETAIL SALES (GWH) -      WEATHER NORMALIZED
63	Residential		2,366			2,798			4,209			2,334			11,708			804
64	Business		2,998			3,616			4,005			3,252			13,871			469
65	Total		5,364			6,414			8,214			5,586			25,579			1,273
	RETAIL USAGE      (KWh/Average Customer)
66	Residential		2,816			3,193			4,704			2,717			13,418			(39	)
67	Business		28,919			33,816			36,595			29,726			129,392			(1,137	)
	RETAIL USAGE -      WEATHER NORMALIZED      (KWh/Average Customer)
68	Residential		2,765			3,282			4,915			2,678			13,628			465
69	Business		28,421			33,944			37,224			29,874			129,494			(503	)
	ELECTRICITY DEMAND (MW)
70	System peak demand		3,979			5,632			6,402			4,432			6,402			70

See Glossary of Terms. Page 23 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,148			1,860			2,364			1,811			8,183			(132	)
72	Coal		2,887			3,035			3,417			3,327			12,666			1,299
73	Gas, oil and other		367			1,339			2,547			1,075			5,328			(763	)
74	Total generation production		5,402			6,234			8,328			6,213			26,177			404
	Purchased power
75	Firm load		701			1,532			1,068			1,024			4,325			1,214
76	Marketing and trading		5,506			7,167			9,301			8,218			30,192			2,442
77	Total purchased power		6,207			8,699			10,369			9,242			34,517			3,656
78	Total energy sources		11,609			14,933			18,697			15,455			60,694			4,060
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		88	%		76	%		96	%		74	%		84	%		(3	)%
80	Coal		77	%		81	%		90	%		88	%		84	%		8	%
81	Gas, oil and other		5	%		20	%		38	%		17	%		20	%		(7	)%
82	System average		44	%		49	%		64	%		48	%		51	%		(3	)%
	Generation Capacity Out of    Service and Replaced for    Native Load    (average MW/day) (a)
83	Nuclear		135			233			13			261			161			29
84	Coal		149			153			63			61			107			(163	)
85	Gas		49			47			39			34			42			(163	)
86	Total		333			433			115			356			310			(296	)

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 24 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004

																	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
87	Palo Verde	$	43.73		$	50.36		$	51.86		$	51.23		$	49.30		$	0.70
88	SP15	$	48.37		$	54.73		$	57.09		$	60.62		$	55.20		$	3.82
	Off-Peak
89	Palo Verde	$	33.66		$	33.74		$	33.37		$	38.21		$	34.75		$	2.72
90	SP15	$	36.90		$	37.32		$	37.18		$	43.07		$	38.62		$	3.96
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		273			1,598			2,471			352			4,694			(205	)
92	Heating degree-days		552			11			—			422			985			249
93	Average humidity		39	%		19	%		26	%		45	%		32	%		1	%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,623			—
95	Heating degree-days		514			31			—			386			930			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro   Phoenix (b)
97	Single-family		10,045			13,636			14,111			10,325			48,117			8,466
98	Multi-family		1,757			1,324			2,149			2,356			7,586			859
99	Total		11,802			14,960			16,260			12,681			55,703			9,325
	Arizona Job Growth (c)
100	Payroll job growth (% over prior year)		2.7	%		3.3	%		3.6	%		3.9	%		3.4	%		2.0	%
101	Unemployment rate (%, seasonally adjusted)		5.2	%		5.1	%		4.9	%		4.6	%		5.0	%		(0.7	)%

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

See Glossary of Terms. Page 25 of 31

EX-99.6

Last Updated 7/21/06

EXHIBIT 99.6

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2003

																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	$	16		$	43	$	100		$	21		$	181		$	(18	)
2	Pinnacle West Energy		4			1		2			(15	)		(8	)		11
3	APS Energy Services		8			5		1			3			16			(12	)
4	SunCor		1			2		6			36			46			36
5	El Dorado		—			—		—			—			(1	)		4
6	Parent Company		(11	)		3		—			—			(9	)		(32	)
7	Income From Continuing Operations		18			54		109			45			225			(11	)
8	Income From Discontinued Operations — Net of Tax		7			2		1			4			16			37
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			66
10	Net Income	$	25		$	56	$	110		$	49		$	241		$	92
	EARNINGS PER SHARE   BY SUBSIDIARY —   DILUTED
11	Arizona Public Service	$	0.17		$	0.47	$	1.10		$	0.24		$	1.98		$	(0.37	)
12	Pinnacle West Energy		0.05			0.01		0.02			(0.16	)		(0.08	)		0.15
13	APS Energy Services		0.08			0.06		0.01			0.03			0.18			(0.15	)
14	SunCor		0.01			0.03		0.07			0.39			0.50			0.37
15	El Dorado		—			—		—			—			(0.01	)		0.05
16	Parent Company		(0.11	)		0.02		(0.01	)		(0.01	)		(0.10	)		(0.36	)
17	Income From Continuing Operations		0.20			0.59		1.19			0.49			2.47			(0.31	)
18	Income From Discontinued Operations — Net of Tax		0.08			0.02		0.01			0.05			0.16			0.41
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			0.77
20	Net Income	$	0.28		$	0.61	$	1.20		$	0.54		$	2.63		$	0.87
21	BOOK VALUE PER SHARE	$	29.39		$	29.95	$	30.68		$	30.97		$	30.97		$	1.57
	COMMON SHARES   OUTSTANDING   (Thousands)
22	Average — Diluted		91,359			91,450		91,467			91,403			91,405			6,441
23	End of Period		91,257			91,262		91,271			91,288			91,288			33

See Glossary of Terms. Page 26 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2003

												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	$	168	$	233	$	363	$	193	$	957	$	51
25	Business		196		251		284		222		953		25
26	Total retail		364		484		647		415		1,910		76
	Wholesale revenue on   delivered electricity
27	Traditional contracts		3		4		5		3		15		7
28	Off-system sales		—		—		—		—		—		—
29	Transmission for others		6		5		9		8		28		(2	)
30	Other miscellaneous services		7		6		6		6		25		7
31	Total regulated operating electricity revenues		380		499		667		432		1,978		88
	MARKETING AND   TRADING SEGMENT
32	Electricity and other commodity sales		117		101		83		91		392		105
33	Total operating electric revenues	$	497	$	600	$	750	$	523	$	2,370	$	193
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY   SEGMENT
	Retail sales
34	Residential		2,104		2,543		4,126		2,374		11,147		703
35	Business		2,849		3,450		3,891		3,225		13,415		497
36	Total retail		4,953		5,993		8,017		5,599		24,562		1,200
	Wholesale electricity   delivered
37	Traditional contracts		130		131		127		112		500		27
38	Off-system sales		—		—		—		—		—		—
39	Retail load hedge management		109		205		446		334		1,094		(1,548	)
40	Total regulated electricity		5,192		6,329		8,590		6,045		26,156		(321	)
	MARKETING AND   TRADING SEGMENT
41	Wholesale sales of electricity		7,372		6,798		7,255		7,378		28,803		5,949
42	Total electric sales		12,564		13,127		15,845		13,423		54,959		5,628

See Glossary of Terms. Page 27 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2003

																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY   ADJUSTOR (“PSA”) - -   REGULATED ELECTRICITY   SEGMENT (Dollars in   Millions)
43	Deferred fuel and purchased power regulatory asset — beginning balance	$	—		$	—		$	—		$	—		$	—		$	—
44	Deferred fuel and purchased power costs — current period		—			—			—			—			—			—
45	Interest on deferred fuel		—			—			—			—			—			—
46	Amounts recovered through revenues		—			—			—			—			—			—
47	Deferred fuel and purchased power regulatory asset — ending balance	$	—		$	—		$	—		$	—		$	—		$	—
	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)	$	25		$	20		$	4		$	16		$	65		$	(56	)
49	Mark-to-market reversals on realized sales (a) (b)		(3	)		1			(3	)		(1	)		(11	)		35
50	Change in mark-to-market value of forward sales		(3	)		(1	)		(3	)		(5	)		(7	)		(64	)
51	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	2		$	4		$	(2	)	$	(9	)	$	(5	)	$	(95	)
53	APS		6			4			(6	)		4			8		$	6
54	Pinnacle West Energy		(1	)		—			—			9			8		$	4
55	APS Energy Services		12			12			6			6			36		$	—
56	Total gross margin	$	19		$	20		$	(2	)	$	10		$	47		$	(85	)

(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 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 $11 million was transferred to “realized” for the total year 2003. A $11 million realized gain is included in the $65 million on line 48 for the total year 2003.

(b)

Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms. Page 28 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		AVERAGE ELECTRIC CUSTOMERS
		Retail customers
	57	Residential		827,937			821,331			824,655			839,539			828,366			26,565
	58	Business		101,999			102,601			103,262			104,521			103,096			2,868
	59	Total		929,936			923,932			927,917			944,060			931,462			29,432
	60	Wholesale customers		65			66			66			66			66			(1	)
	61	Total customers		930,001			923,998			927,983			944,126			931,528			29,431
	62	Customer growth (% over prior year)		3.3	%		3.1	%		3.2	%		3.4	%		3.3	%		0.2	%
		RETAIL SALES (GWH) — WEATHER NORMALIZED
	63	Residential		2,218			2,477			3,939			2,269			10,904			443
	64	Business		2,885			3,485			3,857			3,174			13,402			496
	65	Total		5,103			5,962			7,796			5,443			24,306			939
		RETAIL USAGE (KWh/Average Customer)
	66	Residential		2,541			3,096			5,004			2,828			13,457			432
	67	Business		27,927			33,625			37,677			30,865			130,529			1,288
		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
	68	Residential		2,679			3,016			4,777			2,703			13,163			116
	69	Business		28,286			33,969			37,356			30,371			129,997			1,234
		ELECTRICITY DEMAND (MW)
	70	System peak demand		3,569			5,571			6,332			5,124			6,332			529

See Glossary of Terms. Page 29 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		ENERGY SOURCES (GWH)
		Generation production
	71	Nuclear		2,306			2,047			2,230			1,732			8,315			(666	)
	72	Coal		2,770			2,824			2,972			2,801			11,367			(690	)
	73	Gas, oil and other		1,288			1,572			2,696			535			6,091			1,722
	74	Total generation production		6,364			6,443			7,898			5,068			25,773			366
		Purchased power
	75	Firm load		(12	)		606			1,099			1,418			3,111			1,492
	76	Marketing and trading		6,489			6,527			7,498			7,236			27,750			4,045
	77	Total purchased power		6,477			7,133			8,597			8,654			30,861			5,537
	78	Total energy sources		12,841			13,576			16,495			13,722			56,634			5,903
		POWER PLANT PERFORMANCE
		Capacity Factors
	79	Nuclear		98	%		86	%		93	%		72	%		87	%		(7	)%
	80	Coal		75	%		75	%		79	%		74	%		76	%		(4	)%
	81	Gas, oil and other		26	%		30	%		45	%		9	%		27	%		0	%
	82	System average		58	%		57	%		65	%		41	%		54	%		(9	)%
		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		31			136			61			297			131			64
	84	Coal		292			254			277			253			269			102
	85	Gas		189			148			154			338			205			157
	86	Total		512			538			492			888			605			323

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 30 of 31

Last Updated 7/21/06

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2003

																		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
	87	Palo Verde	$	49.66		$	48.88		$	52.88		$	42.98		$	48.60		$	16.32
	88	SP15	$	54.35		$	50.73		$	53.54		$	46.88		$	51.38		$	17.16
		Off-Peak
	89	Palo Verde	$	36.09		$	25.48		$	36.08		$	30.48		$	32.03		$	12.14
	90	SP15	$	39.70		$	28.27		$	37.81		$	32.85		$	34.66		$	12.97
		WEATHER INDICATORS
		Actual
	91	Cooling degree-days		76			1,550			2,701			572			4,899			24
	92	Heating degree-days		349			17			—			370			736			(64	)
	93	Average humidity		44	%		18	%		30	%		34	%		31	%		4	%
		10-Year Averages
	94	Cooling degree-days		99			1,547			2,541			437			4,623			—
	95	Heating degree-days		514			31			—			386			930			—
	96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
		ECONOMIC INDICATORS
		Building Permits — Metro Phoenix (b)
	97	Single-family		8,030			10,613			11,191			9,817			39,651			5,339
	98	Multi-family		863			2,053			1,231			2,580			6,727			(347	)
	99	Total		8,893			12,666			12,422			12,397			46,378			4,992
		Arizona Job Growth (c)
	100	Payroll job growth (% over prior year)		1.1	%		0.9	%		1.5	%		2.0	%		1.4	%		1.4	%
	101	Unemployment rate (%, seasonally adjusted)		5.8	%		5.9	%		5.7	%		5.3	%		5.7	%		(0.5	)%

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

See Glossary of Terms. Page 31 of 31

EX-99.7

Last Updated 7/21/06

EXHIBIT 99.7

Pinnacle West Capital Corporation

Earnings Variance Explanations

for the Periods Ended June 30, 2006 and 2005

     This discussion explains the changes in our consolidated earnings for the three-month and six-month periods ended June 30, 2006 and 2005. Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2006 and 2005 follow this discussion. We will file our Quarterly Report on Form 10-Q for the fiscal period ended June 30, 2006 on or before August 9, 2006. We suggest that this discussion be read in connection with the Pinnacle West Capital Corporation Annual Report on Form 10-K for the fiscal year ended December 31, 2005 and the Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2006. Additional operating and financial statistics and a glossary of terms are available on our website (www.pinnaclewest.com).

EARNINGS CONTRIBUTION BY BUSINESS SEGMENT

     Pinnacle West has three principal business segments (determined by products, services and the regulatory environment):

• our regulated electricity segment, which consists of traditional regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities and includes electricity generation, transmission and distribution;

• our real estate segment, which consists of SunCor’s real estate development and investment activities; and

• our marketing and trading segment, which consists of our competitive energy business activities, including wholesale marketing and trading and APS Energy Services’ commodity-related energy services.

     The following table summarizes net income by segment for the three months and six months ended June 30, 2006 and 2005 (dollars in millions):

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2006		2005			2006		2005
Regulated electricity	$	95	$	69		$	82	$	83
Real estate		8		11			30		19
Marketing and trading		7		4			9		11
Other		1		1			1		2
Income from continuing operations		111		85			122		115
Discontinued operations – net of tax:
Real estate (a)		1		1			2		1
Marketing and trading (b)		—		(59	)		1		(65	)
Net income	$	112	$	27		$	125	$	51

(a) Primarily relates to sales of commercial properties.

(b) Relates to the loss on the sale of Silverhawk in June 2005 and the operations of Silverhawk.

PINNACLE WEST CONSOLIDATED – RESULTS OF OPERATIONS

General

     Throughout the following explanations of our results of operations, we refer to “gross margin.” With respect to our regulated electricity segment and our marketing and trading segment, gross margin refers to operating revenues less fuel and purchased power costs. “Gross margin” is a “non-GAAP financial measure,” as defined in accordance with SEC rules. Exhibit 99.10 reconciles this non-GAAP financial measure to operating income, which is the most directly comparable financial measure calculated and presented in accordance with accounting principles generally accepted in the United States (GAAP). We view gross margin as an important performance measure of the core profitability of our operations. This measure is a key component of our internal financial reporting and is used by our management in analyzing our business segments. We believe that investors benefit from having access to the same financial measures that our management uses. In addition, we have reclassified certain prior-period amounts to conform to our current-period presentation.

Deferred Fuel and Purchased Power Costs

     Arizona Public Service Company’s (“APS”) retail rate settlement became effective April 1, 2005. As part of the settlement, the Arizona Corporation Commission (“ACC”) approved the power supply adjustor (“PSA”) which permits APS to defer for recovery or refund fluctuations in retail fuel and purchased power costs, subject to specified parameters. In accordance with the PSA, APS defers for future rate recovery 90% of the difference between actual retail fuel and purchased power costs and the amount of such costs currently included in base rates. APS’ recovery of PSA deferrals from its customers is subject to the ACC’s approval of annual PSA adjustments and periodic surcharge applications.

     Since the inception of the PSA, APS has incurred substantially higher fuel and purchased power prices than those authorized in the Company’s current base rates and has deferred those cost differences in accordance with the PSA. The balance of APS’ PSA deferrals at June 30, 2006 was $175 million. APS estimates that its PSA deferral balance at December 31, 2006 will be approximately $155 million to $175 million, based on APS’ hedged positions for fuel and purchased power at June 30, 2006 and recent forward market prices for natural gas and purchased power (which are subject to change). The recovery of PSA deferrals through ACC approved adjustors and surcharges recorded as revenue is offset dollar-for-dollar by the amortization of those deferred expenses.

     APS operated Palo Verde Unit 1 at reduced power levels from December 25, 2005 until March 18, 2006 due to vibration levels in one of the Unit’s shutdown cooling lines. During an outage at Unit 1 from March 18, 2006 to July 7, 2006, APS performed the necessary work and modifications to remedy the situation. APS estimates that incremental replacement power costs resulting from Palo Verde’s outages and reduced power levels were approximately $78 million during the six months ended June 30, 2006. The related PSA deferrals were approximately $70 million in that

2

period. The Palo Verde replacement power costs were partially offset by $30 million of lower than expected replacement power costs related to APS’ fossil-fueled generating units during the six months ended June 30, 2006. As a result, the corresponding deferrals were reduced in that six-month period by $27 million.

     The PSA deferral balance at June 30, 2006 and estimated balance as of December 31, 2006 each includes (a) $45 million related to replacement power costs associated with unplanned 2005 Palo Verde outages and (b) $70 million related to replacement power costs associated with unplanned 2006 outages or reduced power operations at Palo Verde. The PSA deferrals associated with these unplanned Palo Verde outages and reduced power operations are the subject of an ACC prudence review.

Operating Results – Three-month period ended June 30, 2006 compared with three-month period ended June 30, 2005

     Our consolidated net income for the three months ended June 30, 2006 was $112 million compared with $27 million for the comparable prior-year period. The three months ended June 30, 2005 included a net loss from discontinued operations of $58 million, substantially all of which was related to the sale and operations of Silverhawk. Income from continuing operations increased $26 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment – Income from continuing operations increased approximately $26 million primarily due to higher retail sales volumes related to customer growth; effects of warmer weather on retail sales; income tax credits related to prior years resolved in 2006; and lower interest expense. These positive factors were partially offset by higher operations and maintenance expense related to generation and customer service. Higher fuel and purchased power costs (as discussed above) were substantially offset by the deferral of those costs in accordance with the PSA.

• Real Estate Segment – Income from continuing operations decreased approximately $3 million primarily due to decreased margins on parcel sales, partially offset by increased margins on residential sales.

• Marketing and Trading Segment – Income from continuing operations increased approximately $3 million primarily due to higher unit margins on wholesale sales.

3

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment gross margin:
Higher fuel and purchased power costs	$	(43	)	$	(26	)
Increased deferred fuel and purchased power costs		40			24
Higher retail sales volumes due to customer growth, excluding weather effects		26			16
Effects of warmer weather on retail sales		16			10
Miscellaneous items, net		(9	)		(6	)
Net increase in regulated electricity segment gross margin		30			18
Higher marketing and trading segment gross margin primarily due to higher unit margins on wholesale sales		3			2
Lower real estate segment contribution primarily related to decreased margins on parcel sales, partially offset by increased margins on residential sales		(5	)		(3	)
Operations and maintenance increases primarily due to:
Generation costs, including maintenance and overhauls		(6	)		(4	)
Customer service costs, including regulatory demand-side management programs and planned maintenance		(4	)		(2	)
Miscellaneous items, net		(5	)		(3	)
Lower interest expense, net of capitalized financing costs, primarily due to lower debt balances, partially offset by higher rates		6			4
Income tax credits related to prior years resolved in 2006		—			10
Miscellaneous items, net		1			4
Net increase in income from continuing operations	$	20			26
Discontinued operations related to the sale of Silverhawk					59
Net increase in net income				$	85

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $133 million higher for the three months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $75 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);

• a $36 million increase in retail revenues related to customer growth, excluding weather effects;

• a $22 million increase in retail revenues related to warmer weather;

• a $10 million increase in off-system sales due to higher prices; and

• a $10 million decrease due to miscellaneous factors.

4

Real Estate Revenues

     Real estate revenues were $28 million higher for the three months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $32 million increase from residential sales due to higher prices and volumes;

• an $11 million decrease from parcel sales due to timing; and

• a $7 million increase due to miscellaneous sales.

Marketing and Trading Segment Revenues

     Marketing and trading segment revenues were $19 million higher for the three months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $12 million increase due to higher power prices on delivered wholesale electricity sales;

• a $10 million increase from higher prices on competitive retail sales in California; and

• a $3 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices.

5

Operating Results – Six-month period ended June 30, 2006 compared with six-month period ended June 30, 2005

     Our consolidated net income for the six months ended June 30, 2006 was $125 million compared with $51 million for the comparable prior-year period. The six months ended June 30, 2005 included a net loss from discontinued operations of $64 million, substantially all of which was related to the sale and operations of Silverhawk. Income from continuing operations increased $7 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment – Income from continuing operations decreased approximately $1 million primarily due to higher fuel and purchased power costs (as discussed above); and higher operations and maintenance expense related to generation and customer service. These negative factors were partially offset by deferred fuel and purchased power costs; higher retail sales volumes due to customer growth; income tax credits related to prior years resolved in 2006; effects of weather on retail sales; a retail price increase effective April 1, 2005; lower interest expense; and higher interest income.

• Real Estate Segment – Income from continuing operations increased approximately $11 million primarily due to increased margins on residential and parcel sales.

• Marketing and Trading Segment – Income from continuing operations decreased approximately $2 million primarily due to lower mark-to-market gains on contracts for future delivery, partially offset by higher unit margins on wholesale sales.

6

Additional details on the major factors that increased (decreased) net income are contained in the following table (dollars in millions):

	Increase (Decrease)
	Pretax			After Tax
Regulated electricity segment gross margin:
Higher fuel and purchased power costs	$	(98	)	$	(60	)
Increased deferred fuel and purchased power costs (deferrals began April 1, 2005)		53			32
Higher retail sales volumes due to customer growth, excluding weather effects		39			24
Effects of weather on retail sales		13			8
Retail price increase effective April 1, 2005		7			4
Miscellaneous items, net		(13	)		(7	)
Net increase in regulated electricity segment gross margin		1			1
Lower marketing and trading segment gross margin primarily related to lower mark-to-market gains, partially offset by higher unit margins on wholesale sales		(4	)		(2	)
Higher real estate segment contribution primarily related to increased margins on residential and parcel sales		18			11
Operations and maintenance increases primarily due to:
Generation costs, including maintenance and overhauls		(28	)		(17	)
Customer service costs, including regulatory demand-side management programs and planned maintenance		(11	)		(7	)
Lower interest expense, net of capitalized financing costs, primarily due to lower debt balances, partially offset by higher rates		7			4
Higher other income, net of expense, primarily due to miscellaneous asset sales and increased interest income		6			4
Income tax credits related to prior years resolved in 2006		—			10
Miscellaneous items, net		1			3
Net increase (decrease) in income from continuing operations	$	(10	)		7
Discontinued operations related to the sale of Silverhawk and sales of real estate assets					67
Net increase in net income				$	74

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $183 million higher for the six months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $93 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);

• a $54 million increase in retail revenues related to customer growth, excluding weather effects;

7

• an $18 million increase in retail revenues related to weather;

• a $12 million increase in off-system sales primarily resulting from sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;

• a $10 million increase in off-system sales due to higher prices;

• a $7 million increase in retail revenues due to a price increase effective April 1, 2005; and

• an $11 million decrease due to miscellaneous factors.

Real Estate Revenues

     Real estate revenues were $66 million higher for the six months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $48 million increase from residential sales due to higher prices and volumes;

• a $9 million increase from parcel sales due to timing; and

• a $9 million increase due to miscellaneous sales.

     Marketing and Trading Segment Revenues

     Marketing and trading segment revenues were $15 million higher for the six months ended June 30, 2006 compared with the prior-year period primarily as a result of:

• a $32 million increase from higher prices on competitive retail sales in California;

• a $12 million decrease in off-system sales due to the absence of sales previously reported in the marketing and trading segment that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with the APS retail rate case settlement;

• a $7 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices; and

• a $2 million increase due to miscellaneous factors.

8

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)

	THREE MONTHS ENDED
	JUNE 30,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	712,718		$	579,652		$	133,066			23.0	%	B
Marketing and trading segment		89,925			71,172			18,753			26.3	%	B
Real estate segment		112,603			84,259			28,344			33.6	%	B
Other revenues		9,782			20,259			(10,477	)		51.7	%	W
Total		925,028			755,342			169,686			22.5	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		263,944			160,590			103,354			64.4	%	W
Marketing and trading segment fuel and purchased power		72,716			57,593			15,123			26.3	%	W
Operations and maintenance		168,332			153,097			15,235			10.0	%	W
Real estate segment operations		98,412			67,713			30,699			45.3	%	W
Depreciation and amortization		89,297			85,323			3,974			4.7	%	W
Taxes other than income taxes		32,700			34,638			(1,938	)		5.6	%	B
Other expenses		8,430			17,556			(9,126	)		52.0	%	B
Total		733,831			576,510			157,321			27.3	%	W
Operating Income		191,197			178,832			12,365			6.9	%	B
Other
Allowance for equity funds used during construction		3,633			2,952			681			23.1	%	B
Other income		12,022			8,684			3,338			38.4	%	B
Other expense		(5,815	)		(3,846	)		(1,969	)		51.2	%	W
Total		9,840			7,790			2,050			26.3	%	B
Interest Expense
Interest charges		45,882			50,077			(4,195	)		8.4	%	B
Capitalized interest		(4,959	)		(3,544	)		(1,415	)		39.9	%	B
Total		40,923			46,533			(5,610	)		12.1	%	B
Income From Continuing Operations Before Income Taxes		160,114			140,089			20,025			14.3	%	B
Income Taxes		49,271			54,988			(5,717	)		10.4	%	B
Income From Continuing Operations		110,843			85,101			25,742			30.2	%	B
Income (Loss) From Discontinued Operations
Net of Income Taxes		1,311			(58,366	)		59,677			102.2	%	B
Net Income	$	112,154		$	26,735		$	85,419			319.5	%	B
Weighted-Average Common Shares Outstanding — Basic		99,221			96,192			3,029			3.1	%
Weighted-Average Common Shares Outstanding — Diluted		99,640			96,299			3,341			3.5	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.12		$	0.88		$	0.24			27.3	%	B
Net income — basic	$	1.13		$	0.28		$	0.85			303.6	%	B
Income from continuing operations — diluted	$	1.11		$	0.88		$	0.23			26.1	%	B
Net income — diluted	$	1.13		$	0.28		$	0.85			303.6	%	B

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.

     B — Better
     W — Worse

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)

	SIX MONTHS ENDED
	JUNE 30,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	1,178,844		$	995,682		$	183,162			18.4	%	B
Marketing and trading segment		174,927			160,429			14,498			9.0	%	B
Real estate segment		220,457			154,195			66,262			43.0	%	B
Other revenues		21,006			30,394			(9,388	)		30.9	%	W
Total		1,595,234			1,340,700			254,534			19.0	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		421,339			239,013			182,326			76.3	%	W
Marketing and trading segment fuel and purchased power		146,891			128,402			18,489			14.4	%	W
Operations and maintenance		346,759			308,181			38,578			12.5	%	W
Real estate segment operations		169,742			123,047			46,695			37.9	%	W
Depreciation and amortization		176,918			176,267			651			0.4	%	W
Taxes other than income taxes		68,273			69,203			(930	)		1.3	%	B
Other expenses		16,952			25,930			(8,978	)		34.6	%	B
Total		1,346,874			1,070,043			276,831			25.9	%	W
Operating Income		248,360			270,657			(22,297	)		8.2	%	W
Other
Allowance for equity funds used during construction		7,434			5,555			1,879			33.8	%	B
Other income		17,489			9,487			8,002			84.3	%	B
Other expense		(10,356	)		(8,232	)		(2,124	)		25.8	%	W
Total		14,567			6,810			7,757			113.9	%	B
Interest Expense
Interest charges		93,408			96,042			(2,634	)		2.7	%	B
Capitalized interest		(8,983	)		(6,833	)		(2,150	)		31.5	%	B
Total		84,425			89,209			(4,784	)		5.4	%	B
Income From Continuing Operations Before Income Taxes		178,502			188,258			(9,756	)		5.2	%	W
Income Taxes		56,064			73,558			(17,494	)		23.8	%	B
Income From Continuing Operations		122,438			114,700			7,738			6.7	%	B
Income (Loss) From Discontinued Operations
Net of Income Taxes		2,171			(63,517	)		65,688			103.4	%	B
Net Income	$	124,609		$	51,183		$	73,426			143.5	%	B
Weighted-Average Common Shares Outstanding — Basic		99,168			94,089			5,079			5.4	%
Weighted-Average Common Shares Outstanding — Diluted		99,562			94,189			5,373			5.7	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.23		$	1.22		$	0.01			0.8	%	B
Net income — basic	$	1.26		$	0.54		$	0.72			133.3	%	B
Income from continuing operations — diluted	$	1.23		$	1.22		$	0.01			0.8	%	B
Net income — diluted	$	1.25		$	0.54		$	0.71			131.5	%	B

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.

     B — Better
     W — Worse

EX-99.8

Exhibit 99.8
Last updated 10/27/05

Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Glossary of Terms

Amounts Recovered Through Revenues	Amounts recovered from retail customers through the power supply adjustor in the current period.
Arizona Job Growth	Percentage growth over the prior year in total non-farm payroll employment for the state of Arizona, non-seasonally adjusted.
Building Permits — Metro Phoenix	The number of residential dwellings permitted to be built by authorized agencies in Maricopa County, Arizona. Single-family refers to detached buildings intended to be occupied by one family each. Multi-family permits represent the number of units authorized to be built in condominium, townhouse and apartment complexes.
Capacity Factor	The ratio of the average operating load of an electric power generating unit for a period of time to the capacity rating of the unit during that period.
Change in Mark-To-Market Value of Forward Sales	The gross margin related to the change in mark-to-market value in the current period of transactions which have been entered into during the current period or prior periods for which the commodities are scheduled for delivery in a future period.
Deferred Fuel and Purchased Power Costs — Current Period	Deferrals recorded in the period for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).
Deferred Fuel and Purchased Power Regulatory Asset	Balance of accumulated deferrals, net of amounts recovered through revenues, recorded for recovery or refund to the extent actual retail fuel and purchased power costs vary from the amount included in base retail rates (currently $0.020743 per kWh).
Degree-Days — Cooling	A measure of temperatures designed to indicate the amount of electricity demand for cooling purposes. Cooling degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures less than the base temperature are ignored.

- 2 -

Degree-Days — Heating	A measure of temperatures designed to indicate the amount of electricity demand for heating purposes. Heating degree-days are calculated by summing the difference between each day’s actual average temperature and a base temperature of 65°F for the month. Average temperatures greater than the base temperature are ignored.
Electricity and Other Commodity Sales, Realized	Marketing and trading gross margin related to electricity and other commodities that were delivered in the then-current period.
Electricity Spot Prices —Palo Verde — Off-Peak	Electricity average daily spot prices at Palo Verde substation during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — Palo Verde — On-Peak	Electricity average daily spot prices at Palo Verde substation during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — SP15 — Off-Peak	Electricity average daily spot prices at SP15, a region of California substations, during off-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Electricity Spot Prices — SP15 — On-Peak	Electricity average daily spot prices at SP15, a region of California substations, during on-peak hours. It measures electric prices at the producer level and is the result of real time prices used for benchmarking, price comparisons, and establishing price contracts. Measured in dollars per megawatt-hour.
Generation Capacity Out of Service and Replaced for Native Load	Total capacity required and economic, yet unavailable for retail customers and traditional wholesale contracts due to scheduled or unscheduled outages. Measured in megawatts per day.
Generation Production — Coal	Amount of net energy produced by coal-fueled generators. Measured in gigawatt-hours.

- 3 -

Generation Production — Gas/Oil/Other	Amount of net energy predominately produced by natural gas and oil-fueled generators. A small amount of energy from hydroelectric and solar power plants is also included. Measured in gigawatt-hours.
Generation Production — Nuclear	Amount of net energy produced by nuclear-fueled generators. Measured in gigawatt-hours.
Gigawatt-hour (GWH)	A unit of energy equivalent to 1,000 megawatt-hours or 1,000,000 kilowatt-hours.
Marketing and Trading Gross Margin — Pretax	Revenues from marketing and trading activities (other than retail sales, traditional wholesale sales and retail load hedge management) less the costs of the related commodities, with mark-to-market gains or losses, before income taxes.
Mark-To-Market	Adjustments to revenues or costs to recognize value of sales and purchase contracts, for which the commodities are scheduled for delivery in a future period, at current forward wholesale prices.
Mark-To-Market Reversals on Realized Sales	The reversal of the gross margin related to mark-to-market transactions entered into in prior periods for which the commodities were delivered in the current period. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition or earnings recognition, because in accordance with mark-to-market accounting, the margin was already recorded in the prior period. A negative amount shown in this category represents the arithmetic opposite of a gain recognized in the period in which the commodities were delivered; an equal positive amount is reflected in the realized revenue or margin for delivered commodities. A positive amount shown in this category represents the arithmetic opposite of a loss recognized in the period in which the commodities were delivered; an equal negative amount is reflected in the realized revenue or margin for delivered commodities.
Megawatt (MW)	One million watts.
Megawatt-hour (MWh)	A unit of energy equivalent to 1,000 kilowatt-hours.
Native Load	Retail and wholesale sales supplied under traditional cost-based rate regulation.
Off-System Sales	Sales of electricity from generation owned or contracted by the company that is over and above the amount required to serve retail customers and traditional wholesale contracts.

- 4 -

Power Supply Adjustor (“PSA”)	Power supply adjustor provides for recovery or refund of variations in actual fuel and purchased power costs compared with the amount included in base retail rates (currently $0.020743 per kWh) subject to certain specified parameters.
Purchased Power — Firm Load	Power purchased from wholesale market sources used to serve regulated retail demand and traditional wholesale contracts. Measured in gigawatt-hours.
Purchased Power — Marketing and Trading	Power purchased from wholesale market sources used to serve marketing and trading sales not served by company-owned generation. Measured in gigawatt-hours.
Realized and Mark-to-Market Components	Marketing and trading gross margin, before income taxes, for off-system sales and for sales and purchases of electricity and other commodities by the company in the wholesale market, summarized by the period of delivery and whether the margin is realized or mark-to-market. Realized margins relate to commodities that have been delivered. Mark-to-market margins relate to commodities that have delivery dates in future periods.
Retail Customer Growth	Percentage growth over the prior year in the number of retail customers.
Retail Electricity Usage	Total retail sales for a period divided by the average retail customers for the same period. Measured in kilowatt-hours per average customer.
Retail Load Hedge Management	Wholesale sales to liquidate electricity purchases originally intended to meet firm load during peak times, which purchases were not needed ultimately for firm load. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.
Retail Sales	Sales of electricity made directly to retail customers or ultimate customers. Residential retail sales are sales to households. Business retail sales include commercial, industrial, irrigation, and streetlighting sales. Measured in gigawatt-hours.
System Peak Demand	The demand for electricity during the one hour of highest use each month. Measured in megawatts.
Traditional Contracts	Wholesale sales resulting from unique cost-based, long-term contracts held by the company with various entities for the supply of electricity at agreed-upon prices.

- 5 -

Weather Normalized	Adjusted to exclude the effects of abnormal weather patterns.
Wholesale Sales of Electricity	All wholesale sales of electricity not accounted for in sales under traditional contracts or retail load hedge management. These sales are made to other electric companies, power marketers, or public entities for the purpose of resale. Measured in gigawatt-hours.

EX-99.9

EXHIBIT 99.9

FOR IMMEDIATE RELEASE		July 21, 2006
Media Contact:	Alan Bunnell, (602) 250-3376	Page 1 of 2
Analyst Contacts:	Rebecca Hickman, (602) 250-5668
	Lisa Malagon, (602) 250-5671
Web site:	www.pinnaclewest.com

PINNACLE WEST REPORTS 2006 SECOND QUARTER RESULTS
Strong APS Customer Growth Continues

PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended June 30, 2006, of $112.2 million, or $1.13 per diluted share of common stock. This result compares with net income of $26.7 million, or $0.28 per diluted share, for the same quarter a year ago.

On-going consolidated earnings in the 2006 second quarter were $102 million, or $1.03 per share, compared with $86 million, or $0.89 per share in the comparable 2005 quarter. The 2006 results exclude income tax credits related to prior years of $10 million, or $0.10 per share. On-going earnings for the second quarter of 2005 exclude an after-tax loss of $59 million, or $0.61 per share, related to the sale of the Silverhawk Power Station.

“Growth in our service territory remains robust,” said Pinnacle West Chairman Bill Post, citing Arizona’s population growth, which is three times the national average. “Successfully serving this growth will require continuing cooperation from state regulators as our company invests in new, long-term resources to meet the ever-increasing demand for electricity.”

Results for the quarter were positively impacted by higher retail sales at Arizona Public Service (APS) due to customer growth of 4.6 percent; fuel and purchased power cost deferrals; and warmer weather, punctuated by the hottest June on record. The average temperature during June was almost 5 degrees above normal. The warmer weather added $0.10 per share compared with last year’s second quarter.

These positive items were partially offset by higher fuel and purchased power costs; and an increase in operating costs primarily related to higher generation maintenance and customer service costs.

APS reported net income of $93.8 million for the second quarter of 2006, compared with net income of $64.0 million for the same period a year ago. In addition, SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $9.6 million, compared with $11.3 million in the 2005 second quarter.

PINNACLE WEST SECOND QUARTER EARNINGS	July 21, 2006
	Page 2 of 2

For more information on Pinnacle West’s operating statistics and earnings, please visit www.pinnaclewest.com/financials.

Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2006 second quarter earnings and recent developments at 1:00 p.m. (ET), today, Friday, July 21, 2006. The web cast can be accessed at www.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter Conference ID Number 2026344. A replay of the call also will be available until 11:55 p.m. (ET), Friday, July 28, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same ID number as above.

Pinnacle West is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.

-30-

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — NET INCOME
(GAAP MEASURE) TO ON-GOING EARNINGS (NON-GAAP FINANCIAL MEASURE)

	Three Months Ended						Three Months Ended
	June 30, 2006						June 30, 2005
	Dollars in			Diluted			Dollars in		Diluted
	Millions			EPS			Millions		EPS
Pinnacle West Capital Corporation
Net Income	$	112		$	1.13		$	27	$	0.28
Adjustments:
Income tax credits related to prior periods		(10	)		(0.10	)		—		—
Loss from discontinued operations — Silverhawk Power Station write-down		—			—			56		0.57
Loss from discontinued operations — Silverhawk Power Station operations		—			—			3		0.04
On-going Earnings	$	102		$	1.03		$	86	$	0.89

PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)

	THREE MONTHS ENDED						SIX MONTHS ENDED
	JUNE 30,						JUNE 30,
	2006			2005			2006			2005
Operating Revenues
Regulated electricity segment	$	712,718		$	579,652		$	1,178,844		$	995,682
Marketing and trading segment		89,925			71,172			174,927			160,429
Real estate segment		112,603			84,259			220,457			154,195
Other revenues		9,782			20,259			21,006			30,394
Total		925,028			755,342			1,595,234			1,340,700
Operating Expenses
Regulated electricity segment fuel and purchased power		263,944			160,590			421,339			239,013
Marketing and trading segment fuel and purchased power		72,716			57,593			146,891			128,402
Operations and maintenance		168,332			153,097			346,759			308,181
Real estate segment operations		98,412			67,713			169,742			123,047
Depreciation and amortization		89,297			85,323			176,918			176,267
Taxes other than income taxes		32,700			34,638			68,273			69,203
Other expenses		8,430			17,556			16,952			25,930
Total		733,831			576,510			1,346,874			1,070,043
Operating Income		191,197			178,832			248,360			270,657
Other
Allowance for equity funds used during construction		3,633			2,952			7,434			5,555
Other income		12,022			8,684			17,489			9,487
Other expense		(5,815	)		(3,846	)		(10,356	)		(8,232	)
Total		9,840			7,790			14,567			6,810
Interest Expense
Interest charges		45,882			50,077			93,408			96,042
Capitalized interest		(4,959	)		(3,544	)		(8,983	)		(6,833	)
Total		40,923			46,533			84,425			89,209
Income From Continuing Operations Before Income Taxes		160,114			140,089			178,502			188,258
Income Taxes		49,271			54,988			56,064			73,558
Income From Continuing Operations		110,843			85,101			122,438			114,700
Income (Loss) From Discontinued Operations
Net of Income Taxes		1,311			(58,366	)		2,171			(63,517	)
Net Income	$	112,154		$	26,735		$	124,609		$	51,183
Weighted-Average Common Shares Outstanding — Basic		99,221			96,192			99,168			94,089
Weighted-Average Common Shares Outstanding — Diluted		99,640			96,299			99,562			94,189
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	1.12		$	0.88		$	1.23		$	1.22
Net income — basic	$	1.13		$	0.28		$	1.26		$	0.54
Income from continuing operations — diluted	$	1.11		$	0.88		$	1.23		$	1.22
Net income — diluted	$	1.13		$	0.28		$	1.25		$	0.54

Certain prior-year amounts have been reclassified to conform to the 2006 presentation.

EX-99.10

Exhibit 99.10

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)

	THREE MONTHS ENDED
	JUNE 30,				Increase (Decrease)
	2006		2005		Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	191,197	$	178,832	$	12,365		$	7,536
Plus:
Operations and maintenance		168,332		153,097		15,235			9,286
Real estate segment operations		98,412		67,713		30,699			18,711
Depreciation and amortization		89,297		85,323		3,974			2,422
Taxes other than income taxes		32,700		34,638		(1,938	)		(1,181	)
Other expenses		8,430		17,556		(9,126	)		(5,562	)
Marketing and trading segment fuel and purchased power		72,716		57,593		15,123			9,217
Less:
Real estate segment revenues		112,603		84,259		28,344			17,276
Other revenues		9,782		20,259		(10,477	)		(6,386	)
Marketing and trading segment revenues		89,925		71,172		18,753			11,430
Regulated electricity segment gross margin	$	448,774	$	419,062	$	29,712		$	18,109
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	191,197	$	178,832	$	12,365		$	7,536
Plus:
Operations and maintenance		168,332		153,097		15,235			9,286
Real estate segment operations		98,412		67,713		30,699			18,711
Depreciation and amortization		89,297		85,323		3,974			2,422
Taxes other than income taxes		32,700		34,638		(1,938	)		(1,181	)
Other expenses		8,430		17,556		(9,126	)		(5,562	)
Regulated electricity segment fuel and purchased power		263,944		160,590		103,354			62,994
Less:
Real estate segment revenues		112,603		84,259		28,344			17,276
Other revenues		9,782		20,259		(10,477	)		(6,386	)
Regulated electricity segment revenues		712,718		579,652		133,066			81,104
Marketing and trading segment gross margin	$	17,209	$	13,579	$	3,630		$	2,212

PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)

(in thousands)

	SIX MONTHS ENDED
	JUNE 30,				Increase (Decrease)
	2006		2005		Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	248,360	$	270,657	$	(22,297	)	$	(13,590	)
Plus:
Operations and maintenance		346,759		308,181		38,578			23,513
Real estate segment operations		169,742		123,047		46,695			28,461
Depreciation and amortization		176,918		176,267		651			397
Taxes other than income taxes		68,273		69,203		(930	)		(567	)
Other expenses		16,952		25,930		(8,978	)		(5,472	)
Marketing and trading segment fuel and purchased power		146,891		128,402		18,489			11,269
Less:
Real estate segment revenues		220,457		154,195		66,262			40,387
Other revenues		21,006		30,394		(9,388	)		(5,722	)
Marketing and trading segment revenues		174,927		160,429		14,498			8,837
Regulated electricity segment gross margin	$	757,505	$	756,669	$	836		$	509
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	248,360	$	270,657	$	(22,297	)	$	(13,590	)
Plus:
Operations and maintenance		346,759		308,181		38,578			23,513
Real estate segment operations		169,742		123,047		46,695			28,461
Depreciation and amortization		176,918		176,267		651			397
Taxes other than income taxes		68,273		69,203		(930	)		(567	)
Other expenses		16,952		25,930		(8,978	)		(5,472	)
Regulated electricity segment fuel and purchased power		421,339		239,013		182,326			111,128
Less:
Real estate segment revenues		220,457		154,195		66,262			40,387
Other revenues		21,006		30,394		(9,388	)		(5,722	)
Regulated electricity segment revenues		1,178,844		995,682		183,162			111,637
Marketing and trading segment gross margin	$	28,036	$	32,027	$	(3,991	)	$	(2,432	)