EX-99.3 5 ex99-3.txt CONSOLIDATED STATISTICS BY QUARTER FOR 2002 Exhibit 99.3 Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
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 $ 32 $ 64 $ 96 $ (38) 2 Pinnacle West Energy 1 1 2 1 3 APS Energy Services 2 11 13 20 4 SunCor 2 8 10 10 5 El Dorado -- (3) (3) (3) 6 Parent Company 17 (6) 11 10 -------- -------- -------- -------- -------- -------- 7 Income Before Accounting Change 54 75 129 -- Cumulative Effect of Change in Accounting - 8 Net of Tax -- -- -- 3 -------- -------- -------- -------- -------- -------- 9 Net Income $ 54 $ 75 $ 129 $ 3 -------- -------- -------- -------- -------- -------- EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 10 Arizona Public Service $ 0.37 $ 0.76 $ 1.13 $ (0.45) 11 Pinnacle West Energy 0.01 0.01 0.02 0.01 12 APS Energy Services 0.03 0.13 0.16 0.25 13 SunCor 0.02 0.10 0.12 0.11 14 El Dorado -- (0.04) (0.04) (0.04) 15 Parent Company 0.20 (0.07) 0.13 0.12 -------- -------- -------- -------- -------- -------- 16 Income Before Accounting Change 0.63 0.89 1.52 -- Cumulative Effect of Change in Accounting - 17 Net of Tax -- -- -- 0.03 -------- -------- -------- -------- -------- -------- 18 Net Income $ 0.63 $ 0.89 $ 1.52 $ 0.03 -------- -------- -------- -------- -------- -------- 19 BOOK VALUE PER SHARE $ 30.06 $ 30.54 $ 30.54 2.37 COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 20 Average 84,884 84,926 84,910 (95) 21 End of Period 84,789 84,768 84,768 55
See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD -------- -------- -------- -------- ------------ ------------ ELECTRIC OPERATING REVENUES (DOLLARS IN MILLIONS) Retail 22 Residential $ 171 $ 226 $ 397 $ (10) 23 Business 195 251 446 (11) -------- -------- -------- -------- -------- -------- 24 Total retail 366 477 843 (21) -------- -------- -------- -------- -------- -------- Wholesale revenue on delivered electricity 25 Traditional contracts 2 1 2 (79) 26 Retail load hedge management 2 11 13 (174) Marketing and trading -- delivered 27 Generation sales other than native load 8 2 10 (128) 28 Other delivered electricity (a) 185 153 339 (463) -------- -------- -------- -------- -------- -------- 29 Total delivered marketing and trading 193 155 349 (591) -------- -------- -------- -------- -------- -------- 30 Total delivered wholesale electricity 197 167 364 (844) -------- -------- -------- -------- -------- -------- Other marketing and trading Realized margins on delivered commodities 31 other than electricity (a) 4 1 5 22 Prior period mark-to-market (gains) losses on 32 contracts delivered during current period (a) (22) (8) (22) (37) 33 Change in mark-to-market for future-period deliveries 25 1 17 (61) -------- -------- -------- -------- -------- -------- 34 Total other marketing and trading 7 (6) -- (76) -------- -------- -------- -------- -------- -------- 35 Transmission for others 6 6 12 3 36 Other miscellaneous services 4 2 7 (4) -------- -------- -------- -------- -------- -------- 37 Total electric operating revenues $ 580 $ 646 $ 1,226 $ (942) -------- -------- -------- -------- -------- -------- ELECTRIC SALES (GWH) Retail sales 38 Residential 2,141 2,441 4,582 (7) 39 Business 2,771 3,429 6,200 (69) -------- -------- -------- -------- -------- -------- 40 Total retail 4,912 5,870 10,782 (76) -------- -------- -------- -------- -------- -------- Wholesale electricity delivered 41 Traditional contracts 71 121 192 (975) 42 Retail load hedge management 158 230 388 (423) Marketing and trading -- delivered 43 Generation sales other than native load 376 74 450 (609) 44 Other delivered electricity 3,836 4,369 8,205 1,986 -------- -------- -------- -------- -------- -------- 45 Total delivered marketing and trading 4,212 4,443 8,655 1,377 -------- -------- -------- -------- -------- -------- 46 Total delivered wholesale electricity 4,441 4,794 9,235 (21) -------- -------- -------- -------- -------- -------- 47 Total electric sales 9,353 10,664 20,017 (97) -------- -------- -------- -------- -------- --------
---------- (a) The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 37 is zero. Realization of prior-period mark-to-market relates to cash flow recognition, not revenue recognition. The arithmetic opposites of amounts included in line 32 are included in lines 28 and 31. For example, line 32 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the second quarter of 2002. Lines 28 and 31 include amounts totaling $8 million of realized revenues for the second quarter of 2002. See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD -------- -------- -------- -------- ------------ ------------ MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (DOLLARS IN MILLIONS) REALIZED AND MARK-TO-MARKET COMPONENTS Current Period Effects Realized margin on delivered commodities Electricity 48 Generation sales other than native load $ 2 $ -- $ 3 $ (71) 49 Other electricity marketing and trading (a) 33 24 56 9 -------- -------- -------- -------- -------- -------- 50 Total electricity 35 24 59 (62) 51 Other commodities (a) 4 1 5 22 -------- -------- -------- -------- -------- -------- 52 Total realized margin 39 25 64 (40) -------- -------- -------- -------- -------- -------- Prior-period mark-to-market (gains) losses on contracts delivered during current period 53 Electricity (a) (16) (9) (17) (23) 54 Other commodities (a) (6) -- (5) (22) Charge related to trading activities with Enron 55 and its affiliates -- -- -- -- -------- -------- -------- -------- -------- -------- 56 Subtotal (22) (9) (22) (45) -------- -------- -------- -------- -------- -------- 57 Total current period effects (b) 17 16 42 (85) -------- -------- -------- -------- -------- -------- Change in mark-to-market gains (losses) for future period deliveries (b) 58 Electricity 25 10 27 (55) 59 Other commodities (2) (7) (10) (6) -------- -------- -------- -------- -------- -------- 60 Total future period effects 23 3 17 (61) -------- -------- -------- -------- -------- -------- 61 Total gross margin $ 40 $ 19 $ 59 $ (146) -------- -------- -------- -------- -------- --------
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION As of June 30, 2002, Pinnacle West had accumulated mark-to-market net gains of $133 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: remainder of 2002, $12 million; 2003, $28 million; 2004, $29 million; 2005 and thereafter, $64 million. ---------- (a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 57 and in line 61 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 53 are included in line 49. The opposites of amounts included in line 54 are included in line 51. For example, line 53 shows that a prior-period mark-to-market gain of $9 million was transferred to "realized" for the second quarter of 2002. A $9 million realized gain is included in the $24 million on line 49 for the second quarter of 2002. (b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations. See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD -------- -------- -------- -------- ------------ ------------ MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (CONTINUED) (DOLLARS IN MILLIONS) BY COMMODITY SOLD OR TRADED 62 Electricity $ 45 $ 25 $ 70 $ (139) 63 Natural gas (5) 1 (4) 11 64 Coal (1) (2) (3) (19) 65 Emission allowances 1 (5) (4) 1 66 Other -- -- -- -- -------- -------- -------- -------- -------- -------- 67 Total gross margin $ 40 $ 19 $ 59 $ (146) -------- -------- -------- -------- -------- -------- BY PINNACLE WEST ENTITY Parent company marketing and trading division 68 Generation sales other than native load $ 1 $ -- $ 1 $ 1 69 Other marketing and trading 34 9 43 33 APS 70 Generation sales other than native load 1 -- 1 (73) 71 Other marketing and trading -- -- -- (121) Pinnacle West Energy 72 Generation sales other than native load -- -- -- -- 73 Other marketing and trading -- -- -- -- APS ES 74 Other marketing and trading 4 10 14 14 -------- -------- -------- -------- -------- -------- 75 Total gross margin before income taxes $ 40 $ 19 $ 59 $ (146) -------- -------- -------- -------- -------- --------
See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD -------- -------- -------- -------- ------------ ------------ AVERAGE ELECTRIC CUSTOMERS Retail customers 76 Residential 801,000 795,681 798,341 25,515 77 Business 99,335 100,096 99,710 2,066 -------- -------- -------- -------- -------- -------- 78 Total 900,335 895,777 898,051 27,581 89 Wholesale customers 67 67 67 -- -------- -------- -------- -------- -------- -------- 80 Total customers 900,402 895,844 898,118 27,581 -------- -------- -------- -------- -------- -------- 81 Customer Growth (% over prior year) 3.2% 3.2% 3.2% (0.7)% RETAIL ELECTRIC SALES (GWH) - WEATHER NORMALIZED 82 Residential 2,164 2,387 4,551 310 83 Business 2,774 3,392 6,166 20 -------- -------- -------- -------- -------- -------- 84 Total 4,938 5,779 10,717 330 -------- -------- -------- -------- -------- -------- RETAIL ELECTRICITY USAGE (KWH/AVERAGE CUSTOMER) 85 Residential 2,673 3,068 5,739 (199) 86 Business 27,896 34,258 62,188 (2,014) RETAIL ELECTRICITY USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 87 Residential 2,702 3,000 5,701 214 88 Business 27,926 33,886 61,839 (1,103) ELECTRICITY DEMAND (MW) 89 System peak demand 3,921 5,425 5,425 67
See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
INCREASE (DECREASE) Line 1ST QTR 2ND QTR 3RD QTR 4TH QTR YEAR-TO-DATE VS PRIOR YTD -------- -------- -------- -------- ------------ ------------ ENERGY SOURCES (GWH) Generation production 90 Nuclear 2,257 2,243 4,500 254 91 Coal 2,890 2,702 5,592 (554) 92 Gas, oil and other 337 565 902 (1,361) -------- -------- -------- -------- -------- -------- 93 Total 5,484 5,510 10,994 (1,661) -------- -------- -------- -------- -------- -------- Purchased power 94 Firm load 429 846 917 (98) 95 Marketing and trading 3,993 4,599 8,593 1,563 -------- -------- -------- -------- -------- -------- 96 Total 4,422 5,445 9,510 1,465 -------- -------- -------- -------- -------- -------- 97 Total energy sources 9,906 10,955 20,504 (196) -------- -------- -------- -------- -------- -------- POWER PLANT PERFORMANCE Capacity Factors 98 Nuclear 96% 95% 95% 5% 99 Coal 78% 72% 75% (7)% 100 Gas, oil and other 12% 20% 16% (30)% 101 System average 62% 60% 57% (16)% Generation Capacity Out of Service and Replaced for Native Load (average MW/day) 102 Nuclear 62 66 64 55 103 Coal 184 202 193 (32) 104 Gas 12 18 15 (29) 105 Total 258 286 272 (116) 106 Generation Fuel Cost ($/MWh) $ 11.57 $ 11.89 $ 11.73 $ (7.73)
See Glossary of Terms. Last Updated 7/23/2002 PINNACLE WEST CAPITAL CORPORATION CONSOLIDATED STATISTICS BY QUARTER 2002
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 107 Palo Verde $ 26.86 $ 30.65 $ 28.75 (169.71) 108 SP15 $ 28.46 $ 31.51 $ 29.98 $(173.00) Off-Peak 109 Palo Verde $ 22.17 $ 14.10 $ 18.13 $ (82.23) 110 SP15 $ 22.76 $ 15.95 $ 19.35 $(102.93) WEATHER INDICATORS Actual 111 Cooling degree-days 89 1,741 1,830 9 112 Heating degree-days 472 -- 472 (228) 113 Average humidity 28% 16% 22% (15)% 10-Year Averages 114 Cooling degree-days 71 1,458 1,529 -- 115 Heating degree-days 556 35 591 -- 116 Average humidity 45% 25% 35% 0% ECONOMIC INDICATORS Building Permits -- Metro Phoenix (b) (d) 117 Single-family 7,514 6,456 13,970 (599) 118 Multi-family 985 662 1,647 (3,199) -------- -------- -------- -------- -------- -------- 119 Total 8,499 7,118 15,617 (3,798) -------- -------- -------- -------- -------- -------- Arizona Job Growth (c) (d) 120 Payroll job growth (% over prior year) (1.7)% (1.1)% (1.1)% (3.5)% 121 Unemployment rate (%, seasonally adjusted) 5.9% 5.7% 5.8% 1.6%
Sources: (a) This price is an average of daily prices obtained and used with permission from Dow Jones & Company, Inc. (b) Arizona Real Estate Center, Arizona State University College of Business (c) Arizona Department of Economic Security (d) The economic indicators reflect latest available data through periods ending May 2002 and May 2001. See Glossary of Terms.