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): December 31, 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 (17 CFR 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		2
Item 9.01 Financial Statements and Exhibits		5
Signatures		6
EX-99.1
EX-99.2
EX-99.3
EX-99.4
EX-99.5
EX-99.6
EX-99.7
EX-99.8
EX-99.9
EX-99.10

Item 2.02. Results of Operations and Financial Condition

     On January 30, 2007, Pinnacle West Capital Corporation (the “Company” or “Pinnacle West”) issued a press release regarding its financial results for its fiscal quarter and fiscal year ended December 31, 2006. A copy of the press release is attached hereto as Exhibit 99.9.

     Certain of the Information referenced in Item 7.01 below relates to the Company’s results of operations for its fiscal quarter and fiscal year ended December 31, 2006. This Information is attached hereto as Exhibits 99.2, 99.3, 99.7, 99.9, and 99.10.

     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.

Item 7.01. Regulation FD Disclosure

Financial and Business Information

     The Company is providing quarterly consolidated statistical summaries, earnings variance explanations, 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.

2007 Earnings Outlook

     In this discussion, earnings per share amounts are after income taxes and are based on diluted common shares outstanding. The earnings guidance in this Form 8-K supersedes all previous earnings guidance provided by Pinnacle West.

     Our earnings forecasts are subject to numerous risks, including those described under “Forward-Looking Statements” below and under “Business Outlook” in Part I, Item 2 of our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2006 (the “September 2006 Form 10-Q”). Our estimates as to how several of these risks and other factors may affect future earnings follow:

• Arizona Public Service Company (“APS”) has a general retail rate case pending before the Arizona Corporation Commission (the “ACC”). The rate request includes, among other things, an overall increase of $434.6 million (20.4%) in annual retail electricity revenues, of which

2

	$314.4 million (14.8%) represents an increase in the base fuel rate. We are not able to predict the outcome of the rate case, when the ACC will make a decision in this case, or the specific date when a rate increase will become effective. (For detailed information regarding the rate case, see “APS General Rate Case” in Note 5 of Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of the September 2006 Form 10-Q.)
•	We assume that APS’ fuel and purchased power costs will be recovered through base rates or under APS’ power supply adjustor (“PSA”) or will be deferred for future recovery under the PSA, excluding such costs not recoverable pursuant to the 90/10 sharing provision under the PSA.
•	We assume that revenues will continue to be collected under the interim PSA adjustor ($0.007 per kilowatt-hour) until rates become effective as a result of APS’ pending general rate case. (See our Report on Form 8-K dated December 8, 2006 regarding ACC approval of continuation of the interim PSA adjustor.)
•	We currently estimate that net income for 2007 from our real estate subsidiary, SunCor Development Company (“SunCor”), will be between $30 million and $35 million. This estimate reflects a slowdown in the western United States residential real estate markets.

     We estimate that our base level of consolidated earnings for 2007, before considering any potential earnings benefit derived from a base rate increase effective at any time during 2007, will be within a reasonable range of $2.45 per share.

     Assuming APS’ retail rate request is granted effective May 1, 2007, we expect consolidated earnings for 2007 to be within a reasonable range of $3.00 per share. We estimate that APS’ earnings contribution included in such 2007 consolidated earnings will be within a reasonable range of $2.70 per share (equivalent to a return on APS’ average common equity of 8%). Under these assumptions, we estimate that 2007 earnings will include $55 million ($0.55 per share) related to the retail rate decision, consisting of $15 million ($0.15 per share) in the second quarter, $25 million ($0.25 per share) in the third quarter, and $15 million ($0.15 per share) in the fourth quarter.

Forward-Looking Statements

     This Form 8-K contains forward-looking statements regarding our 2007 earnings outlook. Neither the Company nor APS assumes any obligation to update these statements or make any further statements on any of these issues, except as required by applicable law. These forward-looking statements are often identified by words such as “estimate,” “predict,” “hope,” “may,” “believe,” “anticipate,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by Pinnacle West or APS. In addition to the Risk Factors described in Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2005, these factors include, but are not limited to, state and federal regulatory and legislative decisions and actions, including the outcome and timing of APS’ retail rate proceedings pending before the ACC; the timely recovery of PSA deferrals, including such deferrals in 2005 and 2006 associated with unplanned Palo Verde outages and reduced power operations that are the subject of ACC prudence reviews; the

3

ongoing restructuring of the electric industry, including the introduction of retail electric competition in Arizona and decisions impacting wholesale competition; the outcome of regulatory, legislative and judicial proceedings, both current and future, relating to the restructuring; market prices for electricity and natural gas; power plant performance and outages; transmission outages and constraints; weather variations affecting local and regional customer energy usage; customer growth and energy usage; regional economic and market conditions, including the results of litigation and other proceedings resulting from the California energy situation, volatile fuel and purchased power costs and the completion of generation and transmission construction in the region, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital and access to capital markets; current credit ratings remaining in effect for any given period of time; our ability to compete successfully outside traditional regulated markets (including the wholesale market); the performance of our marketing and trading activities due to volatile market liquidity and any deteriorating counterparty credit and the use of derivative contracts in our business (including the interpretation of the subjective and complex accounting rules related to these contracts); changes in accounting principles generally accepted in the United States of America and the interpretation of those principles; the performance of the stock market and the changing interest rate environment, which affect the value of the assets in the trusts holding our nuclear decommissioning, pension, and other postretirement benefit plans assets, the amount of required contributions to Pinnacle West’s pension plan and contributions to APS’ nuclear decommissioning trust funds, as well as the reported costs of providing pension and other postretirement benefits; technological developments in the electric industry; the strength of the real estate market in SunCor’s market areas, which include Arizona, Idaho, New Mexico and Utah; and other uncertainties, all of which are difficult to predict and many of which are beyond the control of Pinnacle West and APS.

4

Item 9.01. Financial Statements and Exhibits

(d) Exhibits.

Exhibit No.	Registrant(s)	Description
99.1	Pinnacle West 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 periods ended December 31, 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 twelve months ended December 31, 2006 and 2005 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2006 and 2005.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on January 30, 2007.
99.10	Pinnacle West APS	Non-GAAP Financial Measure Reconciliation - Operating Income (GAAP measure) to Gross Margin (non-GAAP financial measure).

5

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: January 30, 2007	By:	/s/ Donald E. Brandt
		Donald E. Brandt
		Executive Vice President and Chief Financial Officer
	ARIZONA PUBLIC SERVICE COMPANY (Registrant)
Dated: January 30, 2007	By:	/s/ Donald E. Brandt
		Donald E. Brandt
		President and Chief Financial Officer

6

Exhibit Index

Exhibit No.	Registrant(s)	Description
99.1	Pinnacle West 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 periods ended December 31, 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 twelve months ended December 31, 2006 and 2005 and unaudited condensed consolidated statements of income for the three and twelve months ended December 31, 2006 and 2005.
99.8	Pinnacle West APS	Glossary of Terms.
99.9	Pinnacle West APS	Earnings News Release issued on January 30, 2007.
99.10	Pinnacle West APS	Non-GAAP Financial Measure Reconciliation - Operating Income (GAAP measure) to Gross Margin (non-GAAP financial measure).

7

EX-99.1

Exhibit 99.1

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary
Periods Ended December 31, 2006 and 2005

List of Contents

2006 Fourth Quarter Summary

2006 by Quarter

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/2006Q4QuarStatsGloss.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

Exhibit 99.2

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December									12 Mo. Ended December
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	13		$	18		$	(5	)	$	270		$	170		$	100
2	Pinnacle West Energy		—			(6	)		6			—			(85	)		85
3	APS Energy Services		(2	)		(3	)		1			(3	)		(6	)		3
4	SunCor		3			13			(10	)		50			39			11
5	El Dorado		(1	)		—			(1	)		(3	)		(2	)		(1	)
6	Parent Company		(3	)		2			(5	)		3			107			(104	)
7	Income From Continuing Operations		10			24			(14	)		317			223			94
8	Income (Loss) From Discontinued Operations — Net of Tax		8			(3	)		11			10			(47	)		57
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
10	Net Income	$	18		$	21		$	(3	)	$	327		$	176		$	151
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	0.13		$	0.19		$	(0.06	)	$	2.70		$	1.77		$	0.93
12	Pinnacle West Energy		—			(0.06	)		0.06			—			(0.89	)		0.89
13	APS Energy Services		(0.02	)		(0.04	)		0.02			(0.03	)		(0.06	)		0.03
14	SunCor		0.03			0.13			(0.10	)		0.50			0.40			0.10
15	El Dorado		(0.01	)		(0.01	)		—			(0.03	)		(0.02	)		(0.01	)
16	Parent Company		(0.03	)		0.03			(0.06	)		0.03			1.11			(1.08	)
17	Income From Continuing Operations		0.10			0.24			(0.14	)		3.17			2.31			0.86
18	Income (Loss) From Discontinued Operations — Net of Tax		0.08			(0.02	)		0.10			0.10			(0.49	)		0.59
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
20	Net Income	$	0.18		$	0.22		$	(0.04	)	$	3.27		$	1.82		$	1.45
21	BOOK VALUE PER SHARE	$	33.66	*	$	34.58		$	(0.92	)	$	33.66	*		34.58			(0.92	)
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		100,474			99,050			1,424			100,010			96,590			3,420
23	End of Period		99,959			99,057			902			99,959			99,057			902
	* Estimate

See Glossary of Terms.

Page 2 of 31

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December								12 Mo. Ended December
Line		2006			2005		Incr (Decr)			2006		2005		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	242		$	207	$	35		$	1,271	$	1,079	$	192
25	Business		302			243		59			1,239		1,041		198
26	Total retail		544			450		94			2,510		2,120		390
	Wholesale revenue on delivered electricity
27	Traditional contracts		(3	)		6		(9	)		22		23		(1	)
28	Off-system sales		12			20		(8	)		46		40		6
29	Transmission for others		7			5		2			26		26		—
30	Other miscellaneous services		9			7		2			31		28		3
31	Total regulated operating electricity revenues		569			488		81			2,635		2,237		398
	MARKETING AND TRADING
32	Electricity and other commodity sales		71			84		(13	)		331		352		(21	)
33	Total operating electric revenues	$	640		$	572	$	68		$	2,966	$	2,589	$	377
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,571			2,518		53			12,994		12,223		771
35	Business		3,585			3,427		158			14,977		14,254		723
36	Total retail		6,156			5,945		211			27,971		26,477		1,494
	Wholesale electricity delivered
37	Traditional contracts		167			227		(60	)		884		850		34
38	Off-system sales		497			526		(29	)		1,994		1,336		658
39	Retail load hedge management		347			532		(185	)		1,574		3,010		(1,436	)
40	Total regulated electricity		7,167			7,230		(63	)		32,423		31,673		750
	MARKETING AND TRADING
41	Wholesale sales of electricity		3,688			5,240		(1,552	)		16,282		23,572		(7,290	)
42	Total electric sales		10,855			12,470		(1,615	)		48,705		55,245		(6,540	)

See Glossary of Terms.

Page 3 of 31

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December									12 Mo. Ended December
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	$	209		$	143		$	66		$	173		$	—		$	173
44	Deferred fuel and purchased power costs — current period		19			29			(10	)		244			171			73
45	Interest on deferred fuel		2			1			1			8			2			6
46	Amounts recovered through revenues		(70	)		—			(70	)		(265	)		—			(265	)
47	Deferred fuel and purchased power regulatory asset — ending balance	$	160		$	173		$	(13	)	$	160		$	173		$	(13	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	18		$	23		$	(5	)	$	55		$	55		$	—
49	Mark-to-market reversals on realized sales (a) (b)		(6	)		(17	)		11			(14	)		(16	)		2
50	Change in mark-to-market value of forward sales		(3	)		1			(4	)		—			20			(20	)
51	Total gross margin	$	9		$	7		$	2		$	41		$	59		$	(18	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	3		$	6		$	(3	)	$	18		$	59		$	(41	)
53	APS		5			3			2			14			(6	)		20
54	Pinnacle West Energy		—			—			—			—			5			(5	)
55	APS Energy Services		1			(2	)		3			9			1			8
56	Total gross margin	$	9		$	7		$	2		$	41		$	59		$	(18	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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: 2007, $16 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 $6 million was transferred to “realized” for the fourth quarter of 2006. A $6 million realized gain is included in the $18 million on line 48 for the fourth 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  1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December									12 Mo. Ended December
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		949,132			911,623			37,509			936,464			896,472			39,992
58	Business		117,342			112,569			4,773			115,431			111,168			4,263
59	Total		1,066,474			1,024,192			42,282			1,051,895			1,007,640			44,255
60	Wholesale customers		80			77			3			77			78			(1	)
61	Total customers		1,066,554			1,024,269			42,285			1,051,972			1,007,718			44,254
62	Customer growth (% over prior year)		4.1	%		4.5	%		(0.4	)%		4.4	%		4.3	%		0.1	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,619			2,515			104			13,014			12,280			734
64	Business		3,598			3,414			184			15,008			14,286			722
65	Total		6,217			5,929			288			28,022			26,566			1,456
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,709			2,763			(54	)		13,876			13,635			241
67	Business		30,552			30,444			108			129,749			128,514			1,235
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,759			2,758			1			13,897			13,698			199
69	Business		30,667			30,332			335			130,017			128,507			1,510
	ELECTRICITY DEMAND (MW)
70	System peak demand		5,316			5,169			147			7,652			7,000			652

See Glossary of Terms.

Page 5 of 31

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December									12 Mo. Ended December
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		1,868			1,496			372			6,988			7,509			(521	)
72	Coal		3,337			3,458			(121	)		13,176			13,060			116
73	Gas, oil and other		1,628			2,114			(486	)		7,384			8,435			(1,051	)
74	Total generation production		6,833			7,068			(235	)		27,548			29,004			(1,456	)
	Purchased power
75	Firm load		223			402			(179	)		4,290			3,474			816
76	Marketing and trading		4,328			6,102			(1,774	)		19,240			25,713			(6,473	)
77	Total purchased power		4,551			6,504			(1,953	)		23,530			29,187			(5,657	)
78	Total energy sources		11,384			13,572			(2,188	)		51,078			58,191			(7,113	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		75	%		61	%		14	%		71	%		77	%		(6	)%
80	Coal		87	%		92	%		(5	)%		87	%		87	%		0	%
81	Gas, oil and other		22	%		27	%		(5	)%		25	%		28	%		(3	)%
82	System average		50	%		50	%		0	%		51	%		53	%		(2	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		267			419			(152	)		153			114			39
84	Coal		155			103			52			82			73			9
85	Gas		286			226			60			89			93			(4	)
86	Total		708			748			(40	)		324			280			44

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 6 of 31

Last Updated     1/30/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2006 and 2005

		3 Mo. Ended December									12 Mo. Ended December
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	52.72		$	83.58		$	(30.86	)	$	56.76		$	66.40		$	(9.64	)
88	SP15	$	62.16		$	97.65		$	(35.49	)	$	61.95		$	72.94		$	(10.99	)
	Off-Peak
89	Palo Verde	$	39.62		$	67.79		$	(28.17	)	$	37.09		$	47.55		$	(10.46	)
90	SP15	$	46.27		$	76.45		$	(30.18	)	$	40.61		$	52.06		$	(11.45	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		457			508			(51	)		4,695			4,663			32
92	Heating degree-days		383			308			75			851			766			85
93	Average humidity		33	%		30	%		3	%		28	%		34	%		(6	)%
	10-Year Averages
94	Cooling degree-days		437			437			—			4,624			4,624			—
95	Heating degree-days		386			386			—			931			931			—
96	Average humidity		39	%		39	%		0	%		34	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
97	Single-family		2,910			6,152			(3,242	)		26,478			40,098			(13,620	)
98	Multi-family		783			1,383			(600	)		9,861			7,129			2,732
99	Total		3,693			7,535			(3,842	)		36,339			47,227			(10,888	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		4.6	%		5.3	%		(0.7	)%		5.0	%		5.3	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.0	%		4.8	%		(0.8	)%		4.2	%		4.7	%		(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
(d)	Economic indicators reflect latest available data through periods ended November 30, 2006.

See Glossary of Terms.

Page 7 of 31

EX-99.3

Exhibit 99.3

Last Updated     1/30/2007

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	$	169		$	13		$	270		$	100
2	Pinnacle West Energy		—			—		—			—			—			85
3	APS Energy Services		1			—		(2	)		(2	)		(3	)		3
4	SunCor		21			8		17			3			50			11
5	El Dorado		(1	)		—		—			(1	)		(3	)		(1	)
6	Parent Company		(3	)		9		—			(3	)		3			(104	)
7	Income From Continuing Operations		12			111		184			10			317			94
8	Income (Loss) From Discontinued Operations — Net of Tax		—			1		—			8			10			57
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			—
10	Net Income	$	12		$	112	$	184		$	18		$	327		$	151
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69		$	0.13		$	2.70		$	0.93
12	Pinnacle West Energy		—			—		—			—			—			0.89
13	APS Energy Services		0.01			—		(0.02	)		(0.02	)		(0.03	)		0.03
14	SunCor		0.21			0.08		0.17			0.03			0.50			0.10
15	El Dorado		(0.01	)		—		—			(0.01	)		(0.03	)		(0.01	)
16	Parent Company		(0.03	)		0.08		—			(0.03	)		0.03			(1.08	)
17	Income From Continuing Operations		0.12			1.11		1.84			0.10			3.17			0.86
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			0.02		—			0.08			0.10			0.59
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			—
20	Net Income	$	0.13		$	1.13	$	1.84		$	0.18		$	3.27		$	1.45
21	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07		$	33.66	*	$	33.66	*		(0.92	)
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,449			99,640		99,973			100,474			100,010			3,420
23	End of Period		99,187			99,284		99,648			99,959			99,959			902

* Estimate

See Glossary of Terms.

Page 8 of 31

Last Updated     1/30/2007

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	$	490	$	242		$	1,271	$	192
25	Business		233		333		371		302			1,239		198
26	Total retail		435		670		861		544			2,510		390
	Wholesale revenue on delivered electricity
27	Traditional contracts		6		7		12		(3	)		22		(1	)
28	Off-system sales		12		22		—		12			46		6
29	Transmission for others		6		6		7		7			26		—
30	Other miscellaneous services		7		8		7		9			31		3
31	Total regulated operating electricity revenues		466		713		887		569			2,635		398
	MARKETING AND TRADING
32	Electricity and other commodity sales		85		90		85		71			331		(21	)
33	Total operating electric revenues	$	551	$	803	$	972	$	640		$	2,966	$	377
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,419		3,284		4,720		2,571			12,994		771
35	Business		3,199		3,971		4,222		3,585			14,977		723
36	Total retail		5,618		7,255		8,942		6,156			27,971		1,494
	Wholesale electricity delivered
37	Traditional contracts		215		181		321		167			884		34
38	Off-system sales		927		270		300		497			1,994		658
39	Retail load hedge management		90		515		622		347			1,574		(1,436	)
40	Total regulated electricity		6,850		8,221		10,185		7,167			32,423		750
	MARKETING AND TRADING
41	Wholesale sales of electricity		3,891		3,862		4,841		3,688			16,282		(7,290	)
42	Total electric sales		10,741		12,083		15,026		10,855			48,705		(6,540	)

See Glossary of Terms.

Page 9 of 31

Last Updated     1/30/2007

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		$	175			209		$	173		$	173
44	Deferred fuel and purchased power costs — current period		13			78			134			19			244			73
45	Interest on deferred fuel		1			3			2			2			8			6
46	Amounts recovered through revenues		(18	)		(75	)		(102	)		(70	)		(265	)		(265	)
47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	209		$	160		$	160		$	(13	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	11		$	17		$	8		$	18		$	55		$	—
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)		(6	)		(14	)		2
50	Change in mark-to-market value of forward sales		1			—			(3	)		(3	)		—			(20	)
51	Total gross margin	$	11		$	16		$	4		$	9		$	41		$	(18	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	(2	)	$	11		$	5		$	3		$	18		$	(41	)
53	APS		10			2			(3	)		5			14			20
54	Pinnacle West Energy		—			—			—			—			—			(5	)
55	APS Energy Services		3			3			2			1			9			8
56	Total gross margin	$	11		$	16		$	4		$	9		$	41		$	(18	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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: 2007, $16 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 $6 million was transferred to “realized” for the fourth quarter of 2006. A $6 million realized gain is included in the $18 million on line 48 for the fourth 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     1/30/2007

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			935,523			949,132			936,464			39,992
58	Business		113,570			114,803			116,009			117,342			115,431			4,263
59	Total		1,044,369			1,045,205			1,051,532			1,066,474			1,051,895			44,255
60	Wholesale customers		75			76			76			80			77			(1	)
61	Total customers		1,044,444			1,045,281			1,051,608			1,066,554			1,051,972			44,254
62	Customer growth (% over prior year)		4.5	%		4.6	%		4.4	%		4.1	%		4.4	%		0.1	%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
63	Residential		2,514			3,105			4,776			2,619			13,014			734
64	Business		3,252			3,926			4,232			3,598			15,008			722
65	Total		5,766			7,031			9,008			6,217			28,022			1,456
	RETAIL USAGE (KWh/Average Customer)
66	Residential		2,763			3,530			5,045			2,709			13,876			241
67	Business		30,444			34,590			36,394			30,552			129,749			1,235
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		2,700			3,337			5,105			2,759			13,897			199
69	Business		28,636			34,194			36,477			30,667			130,017			1,510
	ELECTRICITY DEMAND (MW)
70	System peak demand		4,205			6,624			7,652			5,316			7,652			652

See Glossary of Terms.

Page 11 of 31

Last Updated     1/30/2007

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			2,202			1,868			6,988			(521	)
72	Coal		3,083			3,182			3,574			3,337			13,176			116
73	Gas, oil and other		1,323			2,000			2,433			1,628			7,384			(1,051	)
74	Total generation production		6,126			6,380			8,209			6,833			27,548			(1,456	)
	Purchased power
75	Firm load		365			1,740			1,962			223			4,290			816
76	Marketing and trading		4,759			4,546			5,607			4,328			19,240			(6,473	)
77	Total purchased power		5,124			6,286			7,569			4,551			23,530			(5,657	)
78	Total energy sources		11,250			12,666			15,778			11,384			51,078			(7,113	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		71	%		49	%		88	%		75	%		71	%		(6	)%
80	Coal		83	%		84	%		94	%		87	%		87	%		0	%
81	Gas, oil and other		18	%		28	%		34	%		22	%		25	%		(3	)%
82	System average		46	%		48	%		61	%		50	%		51	%		(2	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		306			553			97			267			153			39
84	Coal		257			184			62			155			82			9
85	Gas		201			117			109			286			89			(4	)
86	Total		764			854			268			708			324			44

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 12 of 31

Last Updated     1/30/2007

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		$	54.63		$	65.89		$	52.72		$	56.76		$	(9.64	)
88	SP15	$	58.34		$	55.39		$	71.89		$	62.16		$	61.95		$	(10.99	)
	Off-Peak
89	Palo Verde	$	41.92		$	28.38		$	38.45		$	39.62		$	37.09		$	(10.46	)
90	SP15	$	44.79		$	27.43		$	43.94		$	46.27		$	40.61		$	(11.45	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		43			1,740			2,455			457			4,695			32
92	Heating degree-days		464			4			—			383			851			85
93	Average humidity		28	%		18	%		33	%		33	%		28	%		(6	)%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,624			—
95	Heating degree-days		514			31			—			386			931			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
97	Single-family		8,716			8,883			5,969			2,910			26,478			(13,620	)
98	Multi-family		2,887			2,976			3,215			783			9,861			2,732
99	Total		11,603			11,859			9,184			3,693			36,339			(10,888	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		5.6	%		4.8	%		4.8	%		4.6	%		5.0	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.4	%		4.3	%		4.0	%		4.0	%		4.2	%		(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
(d)	Economic indicators reflect latest available data through periods ended November 30, 2006.

See Glossary of Terms.

Page 13 of 31

EX-99.4

Exhibit 99.4

Last Updated     1/30/2007

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			7			13			39			(2	)
5	El Dorado		(1	)		—			—			—			(2	)		(35	)
6	Parent Company		19			(3	)		88			2			107			79
7	Income From Continuing Operations		30			85			85			24			223			(24	)
8	Income (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     1/30/2007

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
32	Electricity and other commodity sales		89		71		107		84		352		(49	)
33	Total operating electric revenues	$	505	$	651	$	860	$	572	$	2,589	$	153
	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
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     1/30/2007

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 PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	12		$	18		$	3		$	23		$	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		$	7		$	59		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	21		$	6		$	26		$	6		$	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		$	7		$	59		$	(21	)

(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     1/30/2007

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     1/30/2007

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		1,128			2,129			3,064			2,114			8,435			3,107
74	Total generation production		6,315			6,836			8,785			7,068			29,004			2,827
	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		12,733			13,700			18,169			13,572			58,191			(2,503	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		94	%		67	%		88	%		61	%		77	%		(7	)%
80	Coal		80	%		83	%		95	%		92	%		87	%		3	%
81	Gas, oil and other		17	%		29	%		39	%		27	%		28	%		8	%
82	System average		49	%		51	%		62	%		50	%		53	%		2	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		52			329			107			419			114			(45	)
84	Coal		195			244			47			103			73			(55	)
85	Gas		212			164			140			226			93			45
86	Total		459			737			294			748			280			(54	)

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 18 of 31

Last Updated     1/30/2007

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			4,624			—
95	Heating degree-days		514			31			—			386			931			—
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

Exhibit 99.5

Last Updated     1/30/2007

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     1/30/2007

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
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
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     1/30/2007

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 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     1/30/2007

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     1/30/2007

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		132			231			13			261			159			28
84	Coal		237			153			63			61			128			(140	)
85	Gas		71			46			39			34			48			(160	)
86	Total		440			430			115			356			334			(272	)

(a) Includes planned and unplanned outages

See Glossary of Terms.

Page 24 of 31

Last Updated     1/30/2007

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			4,624			—
95	Heating degree-days		514			31			—			386			931			—
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

Exhibit 99.6

Last Updated     1/30/2007

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     1/30/2007

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
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
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     1/30/2007

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 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	)
																			~~~~a
	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     1/30/2007

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     1/30/2007

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		32			134			61			296			131			64
84	Coal		293			253			276			252			268			101
85	Gas		191			149			155			337			208			160
86	Total		516			536			492			885			606			325

(a) Includes planned and unplanned outages

See Glossay of Terms.

Page 30 of 31

Last Updated     1/30/2007

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			4,624			—
95	Heating degree-days		514			31			—			386			931			—
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

Exhibit 99.7

LAST UPDATED 1/30/07

Pinnacle West Capital Corporation
Earnings Variance Explanations
for the Periods Ended December 31, 2006 and 2005

     This discussion explains the changes in our consolidated earnings for the three-month and twelve-month periods ended December 31, 2006 and 2005. Unaudited Condensed Consolidated Statements of Income for the three months and twelve months ended December 31, 2006 and 2005 follow this discussion. We will file our Annual Report on Form 10-K for the fiscal period ended December 31, 2006 on or before March 1, 2007. 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 Reports on Form 10-Q for the fiscal quarters ended March 31, 2006, June 30, 2006 and September 30, 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’s two principal business segments are:

• 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; and

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

     Our reportable business segments reflect a change from the previously reported information. As of December 31, 2006, our marketing and trading activities are no longer considered a segment requiring separate reporting or disclosure. The marketing and trading activities consist of our competitive energy business, including wholesale marketing and trading and retail commodity-related energy services. These activities have decreased as a result of fewer market opportunities and the Company’s intention to deemphasize that part of our business. These activities are now reported as part of the “Other” category in the table below. The corresponding information for earlier periods has been reclassified.

     The following table summarizes income from continuing operations by segment for the three and twelve months ended December 31, 2006 and 2005 and reconciles to net income in total (dollars in millions):

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2006		2005			2006			2005
Regulated electricity (a)	$	6	$	15		$	259		$	167
Real estate		4		10			50			35
Other (b)		—		(1	)		8			21
Income from continuing operations		10		24			317			223
Discontinued operations — net of tax:
Real estate (c)		8		—			10			17
Sale of Silverhawk (b)		—		(3	)		1			(67	)
Sale of NAC International Inc.		—		—			(1	)		3
Net income	$	18	$	21		$	327		$	176

(a)	The twelve months ended December 31, 2005 period includes an $84 million after-tax regulatory disallowance of plant costs in accordance with APS’ 2003 general retail rate case settlement.
(b)	Primarily marketing and trading activity.
(c)	Primarily relates to sales of commercial properties.

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 contributions, 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.

Deferred Fuel and Purchased Power Costs

     Our subsidiary, Arizona Public Service Company (“APS”), settled its 2003 general retail rate case 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 costs than those authorized for recovery through APS’ current base rates primarily due to the use of higher cost resources and has deferred those cost differences in accordance with the PSA. The

2

balance of APS’ PSA deferrals at December 31, 2006 was approximately $160 million. 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 recorded as fuel and purchased power.

     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 these and other unplanned Palo Verde outages and reduced power levels were approximately $88 million during 2006. The related impact on the PSA deferrals was an increase of approximately $79 million. These Palo Verde replacement power costs were partially offset by $42 million of lower than expected replacement power costs related to APS’ other generating units during 2006, which decreased PSA deferrals by $38 million.

     The PSA deferral balance at December 31, 2006 includes (a) $45 million related to replacement power costs associated with unplanned 2005 Palo Verde outages and (b) $79 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 ACC prudence reviews. The ACC staff has recommended disallowance of $17 million of the 2005 costs. The recommendation will be considered as part of APS’ general rate case currently before the ACC. The ACC staff recommendation does not change management’s belief that the expenses in question were prudently incurred and, therefore, are recoverable.

     Operating Results — Three-month period ended December 31, 2006 compared with three-month period ended December 31, 2005

     Our consolidated net income for the three months ended December 31, 2006 was $18 million compared with $21 million for the comparable prior-year period. The three months ended December 31, 2006 includes $8 million of income from discontinued operations that relates to the sales of real estate commercial properties at SunCor. Income from continuing operations decreased $14 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment — Income from continuing operations decreased approximately $9 million primarily due to higher operations and maintenance expense related to generation, including increased maintenance and overhauls; higher depreciation and amortization primarily due to increased plant asset balances; higher interest expense due to increased debt balances and rates, partially offset by increased capitalized financing costs driven by increased capital expenditures; and the effects of milder weather on retail sales. These negative factors were partially offset by higher retail sales volumes due to customer growth and income tax credits related to prior years recognized in 2006.

• Real Estate Segment — Income from continuing operations decreased approximately $6 million primarily due to the timing of parcel sales. Income from discontinued real estate operations increased $8 million due to the sale of commercial property during 2006.

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 retail sales volumes due to customer growth, excluding weather effects	$	16		$	10
Lower fuel and purchased power costs due to lower unplanned outages partially offset by higher cost resources		8			5
Decreased deferred fuel and purchased power costs		(10	)		(6	)
Effects of milder weather on retail sales		(4	)		(2	)
Miscellaneous items, net		(1	)		(1	)
Net increase in regulated electricity segment gross margin		9			6
Lower real estate segment contribution primarily related to the timing of parcel sales		(10	)		(6	)
Operations and maintenance increases primarily due to:
Generation costs, including increased maintenance and overhauls		(9	)		(6	)
Miscellaneous items, net		(2	)		(1	)
Higher depreciation and amortization primarily due to increased plant asset balances		(6	)		(4	)
Higher interest expense due to increased debt balances and rates, partially offset by increased capitalized financing costs driven by increased capital expenditures		(5	)		(3	)
Income tax credits related to prior years recognized in 2006		—			4
Miscellaneous items, net		(2	)		(4	)
Net decrease in income from continuing operations	$	(25	)		(14	)
Discontinued operations:
Higher commercial property real estate sales					8
Silverhawk loss in 2005					3
Net decrease in net income				$	(3	)

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $81 million higher for the three months ended December 31, 2006 compared with the prior-year period primarily as a result of:

• a $70 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 $22 million increase in retail revenues related to customer growth, excluding weather effects;

• an $8 million decrease in Off-System Sales due to lower prices;

• a $6 million decrease in retail revenues related to milder weather; and

4

• a $3 million increase due to miscellaneous factors.

Real Estate Segment Revenues

     Real estate segment revenues were $24 million lower for the three months ended December 31, 2006 compared with the prior-year period primarily as a result of:

• a $16 million decrease due to the timing of parcel sales;

• a $6 million decrease from residential sales due to lower volumes; and

• a $2 million decrease due to miscellaneous sales.

Other Revenues

     Marketing and trading revenues were $13 million lower for the three months ended December 31, 2006 compared with the prior-year period primarily as a result of lower power prices on realized electricity sales and a decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices.

     Other revenues were $6 million lower for the three months ended December 31, 2006 compared with the prior-year period primarily as a result of decreased sales-related products and services by APS Energy Services.

Operating Results — Twelve-month period ended December 31, 2006 compared with twelve-month period ended December 31, 2005

     Our consolidated net income for the twelve months ended December 31, 2006 was $327 million compared with $176 million for the comparable prior-year period. The twelve months ended December 31, 2005 included a net loss from discontinued operations of $47 million, which was related to the sale and operations of Silverhawk, partially offset by income from sales of real estate commercial properties at SunCor. Income from continuing operations increased $94 million in the period-to-period comparison, reflecting the following changes in earnings by segment:

• Regulated Electricity Segment — Income from continuing operations increased approximately $92 million primarily due to an $84 million after-tax regulatory disallowance of plant costs recorded in 2005. Income also increased due to higher retail sales volumes due to customer growth; income tax credits related to prior years resolved in 2006; and increased other income due to higher interest income on higher investment balances. These positive factors were partially offset by higher operations and maintenance expense related to generation and customer service; and higher depreciation and amortization primarily due to increased plant asset balances, partially offset by lower depreciation rates. In addition, higher fuel and purchased power costs of $74 million after-tax were partially offset by the deferral of $45

5

million after-tax of costs in accordance with the PSA. See discussion — “Deferred Fuel and Purchased Power Costs” above.

• Real Estate Segment — Income from continuing operations increased approximately $15 million primarily due to increased margins on residential sales and the sale of certain joint venture assets, partially offset by general and administrative expenses. Income from discontinued operations decreased $7 million due to lower commercial property sales.

• Other — Income from continuing operations decreased approximately $13 million primarily due to lower mark-to-market gains, partially offset by higher unit margins on wholesale sales and competitive retail sales in California.

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 (see “Deferred Fuel and Purchased Power Costs” above)	$	(121	)	$	(74	)
Increased deferred fuel and purchased power costs (deferrals began April 1, 2005)		73			45
Higher retail sales volumes due to customer growth, excluding weather effects		87			53
Miscellaneous items, net		(7	)		(4	)
Net increase in regulated electricity segment gross margin		32			20
Lower marketing and trading gross margin primarily related to lower mark-to-market gains, partially offset by higher unit margins on wholesale sales and competitive retail sales in California		(18	)		(11	)
Higher real estate segment contribution primarily related to increased margins on residential sales and the sale of certain joint venture assets		25			15
Regulatory disallowance of plant costs in 2005, in accordance with APS’ 2003 general retail rate case settlement		139			84
Operations and maintenance increases primarily due to:
Generation costs, including increased maintenance and overhauls		(41	)		(25	)
Customer service costs, including regulatory demand-side management programs and planned maintenance		(16	)		(10	)
Miscellaneous items, net		2			1
Higher depreciation and amortization primarily due to increased plant asset balances partially offset by lower depreciation rates		(11	)		(7	)
Higher other income, net of expense, primarily due to miscellaneous asset sales and increased interest income on higher investment balances		12			7
Income tax credits related to prior years resolved in 2006		—			14
Miscellaneous items, net		—			6
Net increase in income from continuing operations	$	124			94
Discontinued operations:
Silverhawk loss in 2005					68
Lower commercial property real estate sales					(7	)
Sale of NAC International Inc.					(4	)
Net increase in net income				$	151

Regulated Electricity Segment Revenues

     Regulated electricity segment revenues were $398 million higher for the twelve months ended December 31, 2006 compared with the prior-year period primarily as a result of:

• a $265 million increase in revenues related to recovery of PSA deferrals, which had no earnings effect because of amortization of the same amount

7

recorded as fuel and purchased power expense (see “Deferred Fuel and Purchased Power Costs” above);

• a $124 million increase in retail revenues related to customer growth, excluding weather effects;

• a $6 million increase in Off-System Sales primarily resulting from $12 million of sales previously reported in marketing and trading that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with APS’ 2003 general retail rate case settlement, partially offset by $6 million of lower Off-System Sales in 2006; and

• a $3 million increase due to miscellaneous factors.

Real Estate Segment Revenues

     Real estate segment revenues were $62 million higher for the twelve months ended December 31, 2006 compared with the prior-year period primarily as a result of:

• a $55 million increase in residential sales due to higher prices and volumes; and

• a $7 million increase in commercial real estate sales.

Other Revenues

     Other revenues were $25 million lower for the twelve months ended December 31, 2006 compared with the prior-year period primarily as a result of decreased sales-related products and services by APS Energy Services.

     Marketing and trading revenues were $21 million lower for the twelve months ended December 31, 2006 compared with the prior-year period primarily as a result of:

• a $20 million decrease in mark-to-market gains on contracts for future delivery due to changes in forward prices;

• a $12 million decrease in Off-System Sales due to the absence of sales previously reported in marketing and trading that were classified beginning in April 2005 as sales in the regulated electricity segment in accordance with APS’ 2003 general retail rate case settlement;

• a $23 million increase from higher prices on competitive retail sales in California; and

• a $12 million decrease due to miscellaneous factors.

8

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

	THREE MONTHS ENDED
	DECEMBER 31,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	569,213		$	488,035		$	81,178			16.6	%	B
Real estate segment		81,470			105,081			(23,611	)		22.5	%	W
Marketing and trading		71,390			84,098			(12,708	)		15.1	%	W
Other revenues		7,999			14,458			(6,459	)		44.7	%	W
Total		730,072			691,672			38,400			5.6	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		225,160			152,609			72,551			47.5	%	W
Real estate segment operations		76,266			87,811			(11,545	)		13.1	%	B
Marketing and trading fuel and purchased power		62,840			77,744			(14,904	)		19.2	%	B
Operations and maintenance		180,122			168,706			11,416			6.8	%	W
Depreciation and amortization		91,336			85,622			5,714			6.7	%	W
Taxes other than income taxes		28,425			28,512			(87	)		0.3	%	B
Other expenses		5,853			12,536			(6,683	)		53.3	%	B
Regulatory disallowance		—			(4,655	)		4,655			100.0	%	W
Total		670,002			608,885			61,117			10.0	%	W
Operating Income		60,070			82,787			(22,717	)		27.4	%	W
Other
Allowance for equity funds used during construction		3,700			2,784			916			32.9	%	B
Other income		9,568			5,505			4,063			73.8	%	B
Other expense		(14,847	)		(13,895	)		(952	)		6.9	%	W
Total		(1,579	)		(5,606	)		4,027			71.8	%	B
Interest Expense
Interest charges		52,841			42,267			10,574			25.0	%	W
Capitalized interest		(6,394	)		(1,884	)		(4,510	)		239.4	%	B
Total		46,447			40,383			6,064			15.0	%	W
Income From Continuing Operations Before Income Taxes		12,044			36,798			(24,754	)		67.3	%	W
Income Taxes		1,518			13,029			(11,511	)		88.3	%	B
Income From Continuing Operations		10,526			23,769			(13,243	)		55.7	%	W
Income (Loss) From Discontinued Operations Net of Income Taxes		7,953			(2,422	)		10,375			428.4	%	B
Net Income	$	18,479		$	21,347		$	(2,868	)		13.4	%	W
Weighted-Average Common Shares Outstanding — Basic		99,832			98,982			850			0.9	%
Weighted-Average Common Shares Outstanding — Diluted		100,474			99,050			1,424			1.4	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	0.11		$	0.24		$	(0.13	)		54.2	%	W
Net income — basic	$	0.19		$	0.22		$	(0.03	)		13.6	%	W
Income from continuing operations — diluted	$	0.10		$	0.24		$	(0.14	)		58.3	%	W
Net income — diluted	$	0.18		$	0.22		$	(0.04	)		18.2	%	W

     B — Better

     W — Worse

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

	TWELVE MONTHS ENDED
	DECEMBER 31,						Increase (Decrease)
	2006			2005			Amount			Percent
Operating Revenues
Regulated electricity segment	$	2,635,036		$	2,237,145		$	397,891			17.8	%	B
Real estate segment		399,798			338,031			61,767			18.3	%	B
Marketing and trading		330,742			351,558			(20,816	)		5.9	%	W
Other revenues		36,172			61,221			(25,049	)		40.9	%	W
Total		3,401,748			2,987,955			413,793			13.8	%	B
Operating Expenses
Regulated electricity segment fuel and purchased power		960,649			595,141			365,508			61.4	%	W
Real estate segment operations		324,861			278,366			46,495			16.7	%	W
Marketing and trading fuel and purchased power		290,637			293,091			(2,454	)		0.8	%	B
Operations and maintenance		691,277			635,827			55,450			8.7	%	W
Depreciation and amortization		358,644			347,652			10,992			3.2	%	W
Taxes other than income taxes		128,395			132,040			(3,645	)		2.8	%	B
Other expenses		28,415			51,987			(23,572	)		45.3	%	B
Regulatory disallowance		—			138,562			(138,562	)		100.0	%	B
Total		2,782,878			2,472,666			310,212			12.5	%	W
Operating Income		618,870			515,289			103,581			20.1	%	B
Other
Allowance for equity funds used during construction		14,312			11,191			3,121			27.9	%	B
Other income		44,016			23,360			20,656			88.4	%	B
Other expense		(27,800	)		(26,716	)		(1,084	)		4.1	%	W
Total		30,528			7,835			22,693			289.6	%	B
Interest Expense
Interest charges		196,826			185,087			11,739			6.3	%	W
Capitalized interest		(20,989	)		(12,018	)		(8,971	)		74.6	%	B
Total		175,837			173,069			2,768			1.6	%	W
Income From Continuing Operations Before Income Taxes		473,561			350,055			123,506			35.3	%	B
Income Taxes		156,418			126,892			29,526			23.3	%	W
Income From Continuing Operations		317,143			223,163			93,980			42.1	%	B
Income (Loss) From Discontinued Operations Net of Income Taxes		10,112			(46,896	)		57,008			121.6	%	B
Net Income	$	327,255		$	176,267		$	150,988			85.7	%	B
Weighted-Average Common Shares Outstanding — Basic		99,417			96,484			2,933			3.0	%
Weighted-Average Common Shares Outstanding — Diluted		100,010			96,590			3,420			3.5	%
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	3.19		$	2.31		$	0.88			38.1	%	B
Net income — basic	$	3.29		$	1.83		$	1.46			79.8	%	B
Income from continuing operations — diluted	$	3.17		$	2.31		$	0.86			37.2	%	B
Net income — diluted	$	3.27		$	1.82		$	1.45			79.7	%	B

     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

CONFIDENTIAL FINAL – 1/16/2007 5:01 PM

FOR IMMEDIATE RELEASE		January 30, 2007
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 LOWER 2006 FOURTH QUARTER EARNINGS
APS Quarterly Results Down 30 Percent

PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported lower net income for the quarter ended December 31, 2006, of $18.5 million, or $0.18 per diluted share of common stock. This result compares with net income of $21.3 million, or $0.22 per diluted share, for the same quarter a year ago.

In addition, the Company’s principal subsidiary, Arizona Public Service (APS), reported lower earnings of $12.9 million for the 2006 fourth quarter, compared with earnings of $18.3 million for the same period a year ago. Pinnacle West’s quarterly results also were impacted by lower results from its real estate subsidiary, SunCor Development Co, which reported income of $11.4 million, compared with $13.5 million in the 2005 fourth quarter.

Fourth-quarter earnings declined despite increased retail sales at APS due to customer growth of 4 percent, three times the national average, and income tax credits related to prior years. These positive factors were more than offset by higher operation and maintenance costs; increased depreciation and interest expense; lower results from the Company’s real estate operations, primarily due to timing of transactions during the year; and milder weather.

“Arizona is now the fastest-growing state in the nation, and our business reflects that fact,” said Chairman Bill Post, citing a record 44,000 new APS customers in 2006, the equivalent of a small city. “Looking ahead, growth will continue to dominate our operating environment, thus requiring innovation and investments in infrastructure to ensure we continue providing reliable, affordable energy.”

Post added that the effects of Arizona’s growth were evident throughout the company’s business in 2006, and employees met the challenge. Recognized by J.D. Power and Associates in its 2006 survey results for superior customer satisfaction, APS was rated the top investor-owned electric utility in the West by business customers and number two by residential customers.

In 2006, APS established a new system peak demand of 7,652 megawatts (MW) — 9.3 percent higher than the previous peak of 7,000 MW. APS met this peak, in large part, through the performance of its fossil-fueled power plants. Coal-fired plants set a company fleet record capacity factor of 87 percent, compared with the industry average of 72 percent. And, APS’ gas units produced their highest output ever of 7.3 million megawatt-hours.

Additionally, in a period of volatile energy costs, the Company continued its emphasis on cost containment and price stability. APS’ energy risk management efforts helped mitigate dramatic price swings of natural gas and their impact on customers. The Arizona Corporation Commission (ACC) also responded to this challenge. They approved changes to APS’ annual fuel adjustment, as well as APS’ request for interim rate relief, thus improving both current and future recovery of fuel-related costs.

PINNACLE WEST FOURTH QUARTER EARNINGS January 30, 2007
Page 2 of 2

For the year 2006 as a whole, Pinnacle West’s consolidated on-going earnings decreased 3.5 percent to $313.3 million, or $3.13 per diluted share. This result compares with 2005 on-going earnings of $324.5 million, or $3.35 per share. Pinnacle West reported 2006 consolidated net income of $327.3 million, or $3.27 per share, compared with 2005 net income of $176.3 million, or $1.82 per diluted share.

The annual on-going earnings exclude several non-recurring items: a regulatory disallowance of $84 million recorded in 2005; a net loss in 2005 from discontinued operations related to sales of the Company’s interests in the Silverhawk Power Station and NAC International totaling $64 million; and income tax credits of $14 million recorded in 2006, but related to prior years.

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 fourth quarter earnings and year-end results, as well as recent developments at 11 a.m. (ET) today, January 30. 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 reservation number 6297330. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, February 6, 2007, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number.

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)

	Twelve Months Ended						Twelve Months Ended
	December 31, 2006						December 31, 2005
	$ in			Diluted			$ in			Diluted
	Millions			EPS			Millions			EPS
Net Income	$	327.3		$	3.27		$	176.3		$	1.82
Adjustments:
Income tax credits related to prior years		(14.0	)		(0.14	)		—			—
Regulatory disallowance		—			—			84.5			0.87
Loss from discontinued operations — Silverhawk Power Station write-down and operations		—			—			67.4			0.69
Income from discontinued operations — NAC International		—			—			(3.7	)		(0.03	)
On-going Earnings	$	313.3		$	3.13		$	324.5		$	3.35

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

	THREE MONTHS ENDED						TWELVE MONTHS ENDED
	DECEMBER 31,						DECEMBER 31,
	2006			2005			2006			2005
Operating Revenues
Regulated electricity segment	$	569,213		$	488,035		$	2,635,036		$	2,237,145
Real estate segment		81,470			105,081			399,798			338,031
Marketing and trading		71,390			84,098			330,742			351,558
Other revenues		7,999			14,458			36,172			61,221
Total		730,072			691,672			3,401,748			2,987,955
Operating Expenses
Regulated electricity segment fuel and purchased power		225,160			152,609			960,649			595,141
Real estate segment operations		76,266			87,811			324,861			278,366
Marketing and trading fuel and purchased power		62,840			77,744			290,637			293,091
Operations and maintenance		180,122			168,706			691,277			635,827
Depreciation and amortization		91,336			85,622			358,644			347,652
Taxes other than income taxes		28,425			28,512			128,395			132,040
Other expenses		5,853			12,536			28,415			51,987
Regulatory disallowance		—			(4,655	)		—			138,562
Total		670,002			608,885			2,782,878			2,472,666
Operating Income		60,070			82,787			618,870			515,289
Other
Allowance for equity funds used during construction		3,700			2,784			14,312			11,191
Other income		9,568			5,505			44,016			23,360
Other expense		(14,847	)		(13,895	)		(27,800	)		(26,716	)
Total		(1,579	)		(5,606	)		30,528			7,835
Interest Expense
Interest charges		52,841			42,267			196,826			185,087
Capitalized interest		(6,394	)		(1,884	)		(20,989	)		(12,018	)
Total		46,447			40,383			175,837			173,069
Income From Continuing Operations Before Income Taxes		12,044			36,798			473,561			350,055
Income Taxes		1,518			13,029			156,418			126,892
Income From Continuing Operations		10,526			23,769			317,143			223,163
Income (Loss) From Discontinued Operations Net of Income Taxes		7,953			(2,422	)		10,112			(46,896	)
Net Income	$	18,479		$	21,347		$	327,255		$	176,267
Weighted-Average Common Shares Outstanding — Basic		99,832			98,982			99,417			96,484
Weighted-Average Common Shares Outstanding — Diluted		100,474			99,050			100,010			96,590
Earnings Per Weighted-Average Common Share Outstanding
Income from continuing operations — basic	$	0.11		$	0.24		$	3.19		$	2.31
Net income — basic	$	0.19		$	0.22		$	3.29		$	1.83
Income from continuing operations — diluted	$	0.10		$	0.24		$	3.17		$	2.31
Net income — diluted	$	0.18		$	0.22		$	3.27		$	1.82

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
	DECEMBER 31,					Increase (Decrease)
	2006		2005			Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	60,070	$	82,787		$	(22,717	)	$	(13,846	)
Plus:
Operations and maintenance		180,122		168,706			11,416			6,958
Real estate segment operations		76,266		87,811			(11,545	)		(7,037	)
Depreciation and amortization		91,336		85,622			5,714			3,483
Taxes other than income taxes		28,425		28,512			(87	)		(53	)
Other expenses		5,853		12,536			(6,683	)		(4,073	)
Regulatory disallowance		—		(4,655	)		4,655			2,837
Marketing and trading fuel and purchased power		62,840		77,744			(14,904	)		(9,084	)
Less:
Real estate segment revenues		81,470		105,081			(23,611	)		(14,391	)
Other revenues		7,999		14,458			(6,459	)		(3,937	)
Marketing and trading revenues		71,390		84,098			(12,708	)		(7,746	)
Regulated electricity segment gross margin	$	344,053	$	335,426		$	8,627		$	5,259

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

	TWELVE MONTHS ENDED
	DECEMBER 31,				Increase (Decrease)
	2006		2005		Pretax			After Tax
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure)	$	618,870	$	515,289	$	103,581		$	63,133
Plus:
Operations and maintenance		691,277		635,827		55,450			33,797
Real estate segment operations		324,861		278,366		46,495			28,339
Depreciation and amortization		358,644		347,652		10,992			6,700
Taxes other than income taxes		128,395		132,040		(3,645	)		(2,222	)
Other expenses		28,415		51,987		(23,572	)		(14,367	)
Regulatory disallowance		—		138,562		(138,562	)		(84,454	)
Marketing and trading fuel and purchased power		290,637		293,091		(2,454	)		(1,496	)
Less:
Real estate segment revenues		399,798		338,031		61,767			37,647
Other revenues		36,172		61,221		(25,049	)		(15,267	)
Marketing and trading revenues		330,742		351,558		(20,816	)		(12,687	)
Regulated electricity segment gross margin	$	1,674,387	$	1,642,004	$	32,383		$	19,737
RECONCILIATION OF MARKETING AND TRADING GROSS MARGIN
Operating Income (closest GAAP measure)	$	618,870	$	515,289	$	103,581		$	63,133
Plus:
Operations and maintenance		691,277		635,827		55,450			33,797
Real estate segment operations		324,861		278,366		46,495			28,339
Depreciation and amortization		358,644		347,652		10,992			6,700
Taxes other than income taxes		128,395		132,040		(3,645	)		(2,222	)
Other expenses		28,415		51,987		(23,572	)		(14,367	)
Regulatory disallowance		—		138,562		(138,562	)		(84,454	)
Regulated electricity segment fuel and purchased power		960,649		595,141		365,508			222,777
Less:
Real estate segment revenues		399,798		338,031		61,767			37,647
Other revenues		36,172		61,221		(25,049	)		(15,267	)
Regulated electricity segment revenues		2,635,036		2,237,145		397,891			242,515
Marketing and trading gross margin	$	40,105	$	58,467	$	(18,362	)	$	(11,192	)