EX-99.2 4 ex99-2.txt QTRLY STAT. SUMMARY FOR 12/31/2002 AND 2001 Exhibit 99.2 Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ---------------------------------- ---------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- EARNINGS CONTRIBUTION BY SUBSIDIARY ($ MILLIONS) 1 Arizona Public Service $ 16 $ 39 $ (23) $ 199 $ 281 $ (82) 2 Pinnacle West Energy (31) 4 (35) (19) 18 (37) 3 APS Energy Services 8 -- 8 28 (10) 38 4 SunCor 10 -- 10 19 3 16 5 El Dorado (37) -- (37) (55) -- (55) 6 Parent Company 19 (7) 26 43 35 8 -------- -------- -------- -------- -------- -------- 7 Income Before Accounting Change (15) 36 (51) 215 327 (112) 8 Cumulative Effect of Change in Accounting - Net of Tax (66) -- (66) (66) (15) (51) -------- -------- -------- -------- -------- -------- 9 Net Income $ (81) $ 36 $ (117) $ 149 $ 312 $ (163) ======== ======== ======== ======== ======== ======== EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 10 Arizona Public Service $ 0.19 $ 0.46 $ (0.27) $ 2.35 $ 3.30 $ (0.95) 11 Pinnacle West Energy (0.37) 0.04 (0.41) (0.23) 0.21 (0.44) 12 APS Energy Services 0.09 -- 0.09 0.33 (0.12) 0.45 13 SunCor 0.11 0.01 0.10 0.22 0.04 0.18 14 El Dorado (0.43) -- (0.43) (0.65) -- (0.65) 15 Parent Company 0.24 (0.09) 0.33 0.51 0.42 0.09 -------- -------- -------- -------- -------- -------- 16 Income Before Accounting Change (0.17) 0.42 (0.59) 2.53 3.85 (1.32) 17 Cumulative Effect of Change in Accounting - Net of Tax (0.78) -- (0.78) (0.77) (0.17) (0.60) -------- -------- -------- -------- -------- -------- 18 Net Income $ (0.95) $ 0.42 $ (1.37) $ 1.76 $ 3.68 $ (1.92) ======== ======== ======== ======== ======== ======== 19 BOOK VALUE PER SHARE $ 29.40 $ 29.46 $ (0.06) $ 29.40 $ 29.46 $ (0.06) COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 20 Average 85,302 84,824 478 84,964 84,930 34 21 End of Period 91,255 84,724 6,531 91,255 84,724 6,531
See Glossary of Terms. Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ---------------------------------- ---------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- ELECTRIC OPERATING REVENUES (DOLLARS IN MILLIONS) Retail 22 Residential $ 172 $ 180 $ (8) $ 906 $ 915 $ (9) 23 Business 212 219 (7) 928 952 (24) -------- -------- -------- -------- -------- -------- 24 Total retail 384 399 (15) 1,834 1,867 (33) -------- -------- -------- -------- -------- -------- Wholesale revenue on delivered electricity 25 Traditional contracts 3 2 1 9 73 (64) 26 Retail load hedge management 11 27 (16) 123 578 (455) Marketing and trading -- delivered -- 27 Generation sales other than native load 32 6 26 50 148 (98) 28 Realized margins on electricity trading 3 38 (35) 49 62 (13) 29 Other delivered electricity (a) 81 29 52 207 329 (122) -------- -------- -------- -------- -------- -------- 30 Total delivered marketing and trading 116 73 43 306 539 (233) -------- -------- -------- -------- -------- -------- 31 Total delivered wholesale electricity 130 102 28 438 1,190 (752) -------- -------- -------- -------- -------- -------- Other marketing and trading 32 Realized margins on delivered commodities other than electricity (a) 6 4 2 8 (14) 22 33 Prior period mark-to-market (gains) losses on contracts delivered during current period (a) (8) (51) 43 (40) (1) (39) 34 Change in mark-to-market for future-period deliveries (1) (9) 8 52 127 (75) -------- -------- -------- -------- -------- -------- 35 Total other marketing and trading (3) (56) 53 20 112 (92) -------- -------- -------- -------- -------- -------- 36 Transmission for others 12 8 4 30 26 4 37 Other miscellaneous services 7 1 6 17 18 (1) -------- -------- -------- -------- -------- -------- 38 Total electric operating revenues $ 530 $ 454 $ 76 $ 2,339 $ 3,213 $ (874) ======== ======== ======== ======== ======== ======== ELECTRIC SALES (GWH) Retail sales 39 Residential 2,056 2,149 (93) 10,444 10,335 109 40 Business 3,036 3,071 (35) 12,917 13,064 (147) -------- -------- -------- -------- -------- -------- 41 Total retail 5,092 5,220 (128) 23,361 23,399 (38) -------- -------- -------- -------- -------- -------- Wholesale electricity delivered 42 Traditional contracts 140 83 57 474 1,213 (739) 43 Retail load hedge management 296 382 (86) 2,642 3,040 (398) Marketing and trading -- delivered 44 Generation sales other than native load 1,051 256 795 1,791 1,388 403 45 Electricity trading 4,312 3,828 484 16,925 12,031 4,894 46 Other delivered electricity 1,733 746 987 4,139 2,582 1,557 -------- -------- -------- -------- -------- -------- 47 Total delivered marketing and trading 7,096 4,830 2,266 22,855 16,001 6,854 -------- -------- -------- -------- -------- -------- 48 Total delivered wholesale electricity 7,532 5,295 2,237 25,971 20,254 5,717 -------- -------- -------- -------- -------- -------- 49 Total electric sales 12,624 10,515 2,109 49,332 43,653 5,679 ======== ======== ======== ======== ======== ========
---------- (a) The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 38 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 33 are included in lines 28 and 32. For example, line 33 shows that a prior-period mark-to-market gain of $8 million was transferred to "realized" for the fourth quarter of 2002. Lines 28 and 32 include amounts totaling $9 million of realized revenues for the fourth quarter of 2002. See Glossary of Terms. Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ------------------------------- ------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) ------- ------- ----------- ------- ------- ----------- MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (DOLLARS IN MILLIONS) REALIZED AND MARK-TO-MARKET COMPONENTS Current Period Effects Realized margin on delivered commodities Electricity 50 Generation sales other than native load $ 9 $ 3 $ 6 $ 14 $ 80 $ (66) 51 Other electricity marketing and trading (a) 23 56 (33) 99 117 (18) ------- ------- ------- ------- ------- ------- 52 Total electricity 32 59 (27) 113 197 (84) 53 Other commodities (a) 6 4 2 8 (14) 22 ------- ------- ------- ------- ------- ------- 54 Total realized margin 38 63 (25) 121 183 (62) ------- ------- ------- ------- ------- ------- Prior-period mark-to-market (gains) losses on contracts delivered during current period 55 Electricity (a) (4) (38) 34 (30) (11) (19) 56 Other commodities (a) (4) (4) -- (11) 25 (36) Charge related to trading activities with Enron 57 and its affiliates -- (8) 8 -- (8) 8 ------- ------- ------- ------- ------- ------- 58 Subtotal (8) (50) 42 (41) 6 (47) ------- ------- ------- ------- ------- ------- 59 Total current period effects (b) 30 13 17 80 189 (109) ------- ------- ------- ------- ------- ------- Change in mark-to-market gains (losses) for future period deliveries (b) 61 Electricity 6 (2) 8 63 146 (83) 62 Other commodities (7) (7) -- (11) (18) 7 ------- ------- ------- ------- ------- ------- 63 Subtotal (1) (9) 8 52 128 (76) ------- ------- ------- ------- ------- ------- 64 Total gross margin $ 29 $ 4 $ 25 $ 132 $ 317 $ (185) ======= ======= ======= ======= ======= =======
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION As of December 31, 2002, Pinnacle West had accumulated mark-to-market net gains of $41 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: 2003, $4 million; 2004, $10 million; 2005 and thereafter, $27 million. ---------- (a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 59 and in line 64 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 55 are included in line 51. The opposites of amounts included in line 56 are included in line 53. For example, line 55 shows that a prior-period mark-to-market gain of $4 million was transferred to "realized" for the fourth quarter of 2002. A $4 million realized gain is included in the $23 million on line 51 for the fourth 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 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ---------------------------------- ---------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (CONTINUED) (DOLLARS IN MILLIONS) BY COMMODITY SOLD OR TRADED 65 Electricity $ 34 $ 15 $ 19 $ 147 $ 328 $ (181) 66 Natural gas (5) (3) (2) (6) (8) 2 67 Coal -- (6) 6 (2) 7 (9) 68 Emission allowances -- (2) 2 (7) (10) 3 69 Other -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- 70 Total Gross Margin $ 29 $ 4 $ 25 $ 132 $ 317 $ (185) ======== ======== ======== ======== ======== ======== BY PINNACLE WEST ENTITY Parent company marketing and trading division 71 Generation sales other than native load $ 5 $ -- $ 5 $ 8 $ -- $ 8 72 Other marketing and trading 9 (6) 15 82 78 4 APS 73 Generation sales other than native load -- 3 (3) 2 79 (77) 74 Other marketing and trading -- 3 (3) -- 156 (156) Pinnacle West Energy 75 Generation sales other than native load 4 -- 4 4 -- 4 76 Other marketing and trading -- -- -- -- -- -- APS ES 77 Other marketing and trading 11 4 7 36 4 32 -------- -------- -------- -------- -------- -------- 78 Total gross margin before income taxes $ 29 $ 4 $ 25 $ 132 $ 317 $ (185) -------- -------- -------- -------- -------- --------
See Glossary of Terms. Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ---------------------------------- ---------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- AVERAGE ELECTRIC CUSTOMERS Retail customers 79 Residential 811,930 786,382 25,548 801,801 776,339 25,462 80 Business 101,177 98,631 2,546 100,228 98,198 2,030 -------- -------- -------- -------- -------- -------- 81 Total 913,107 885,013 28,094 902,029 874,537 27,492 82 Wholesale customers 67 66 1 67 66 1 -------- -------- -------- -------- -------- -------- 83 Total customers 913,174 885,079 28,095 902,096 874,603 27,493 ======== ======== ======== ======== ======== ======== 84 Customer Growth (% over prior year) 3.2% 3.2% 0.0% 3.1% 3.7% (0.5)% RETAIL SALES (GWH) - WEATHER NORMALIZED 85 Residential 2,123 2,129 (6) 10,276 9,677 599 86 Business 3,015 3,013 2 12,856 12,777 79 -------- -------- -------- -------- -------- -------- 87 Total 5,138 5,142 (4) 23,132 22,454 678 ======== ======== ======== ======== ======== ======== RETAIL USAGE (KWH/AVERAGE CUSTOMER) 88 Residential 2,532 2,733 (201) 13,025 13,312 (287) 89 Business 30,011 31,136 (1,125) 128,885 133,037 (4,152) RETAIL USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 90 Residential 2,615 2,707 (92) 12,817 12,465 352 91 Business 29,797 30,548 (751) 128,269 130,115 (1,846) ELECTRICITY DEMAND (MW) 92 System peak demand 3,828 3,898 (70) 5,803 5,687 116
See Glossary of Terms. Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ----------------------------------- ---------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- ENERGY SOURCES (GWH) Generation production 93 Nuclear 2,094 1,818 276 8,980 8,384 596 94 Coal 3,183 3,203 (20) 12,056 12,572 (516) 95 Gas, oil and other 1,455 583 872 4,003 4,003 -- -------- -------- -------- -------- -------- -------- 96 Total 6,732 5,604 1,128 25,039 24,959 80 -------- -------- -------- -------- -------- -------- Purchased power 97 Firm load (157) 212 (369) 1,619 2,961 (1,342) 98 Marketing and trading 6,340 4,955 1,385 23,704 17,653 6,051 -------- -------- -------- -------- -------- -------- 99 Total 6,183 5,167 1,016 25,323 20,614 4,709 -------- -------- -------- -------- -------- -------- 100 Total energy sources 12,915 10,771 2,144 50,362 45,573 4,789 ======== ======== ======== ======== ======== ======== POWER PLANT PERFORMANCE Capacity Factors 101 Nuclear 87% 76% 11% 94% 88% 6% 102 Coal 84% 85% (1)% 80% 84% (4)% 103 Gas, oil and other 29% 20% 9% 27% 37% (10)% 104 System average 60% 62% (2)% 63% 70% (7)% Generation Capacity Out of Service and Replaced for Native Load (average MW/day) 105 Nuclear 129 246 (117) 67 127 (60) 106 Coal 116 90 26 167 167 -- 107 Gas 54 16 38 48 32 16 108 Total 299 352 (53) 282 326 (44) 109 Generation Fuel Cost ($/MWh) $ 13.05 $ 12.51 $ 0.54 $ 13.01 $ 16.22 $ (3.21)
See Glossary of Terms. Last Updated 2/3/2003 PINNACLE WEST CAPITAL CORPORATION QUARTERLY CONSOLIDATED STATISTICAL SUMMARY PERIODS ENDED DECEMBER 31, 2002 AND 2001
3 MO. ENDED DECEMBER 31 12 MO. ENDED DECEMBER 31 ------------------------------------ ----------------------------------- Line 2002 2001 INCR (DECR) 2002 2001 INCR (DECR) -------- -------- ----------- -------- -------- ----------- ENERGY MARKET INDICATORS (a) Electricity Average Daily Spot Prices ($/MWh) On-Peak 110 Palo Verde $ 36.18 $ 26.89 $ 9.29 $ 32.28 $ 118.41 $ (86.13) 111 SP15 $ 41.35 $ 28.38 $ 12.97 $ 34.22 $ 119.99 $ (85.77) Off-Peak 112 Palo Verde $ 25.09 $ 18.33 $ 6.76 $ 19.89 $ 61.57 $ (41.68) 113 SP15 $ 28.52 $ 20.41 $ 8.11 $ 21.69 $ 73.48 $ (51.79) WEATHER INDICATORS Actual 114 Cooling degree-days 398 620 (222) 4,875 5,122 (247) 115 Heating degree-days 328 460 (132) 800 1,160 (360) 116 Average humidity 38% 39% (1) % 27% 36% (9)% 10-Year Averages 117 Cooling degree-days 398 398 -- 4,381 4,381 -- 118 Heating degree-days 435 435 -- 1,026 1,026 -- 119 Average humidity 40% 40% 0% 36% 36% 0% ECONOMIC INDICATORS Building Permits -- Metro Phoenix (b) 120 Single-family 8,250 6,240 2,010 33,955 32,455 1,500 121 Multi-family 1,327 717 610 6,577 8,969 (2,392) -------- -------- -------- -------- -------- -------- 122 Total 9,577 6,957 2,620 40,532 41,424 (892) ======== ======== ======== ======== ======== ======== Arizona Job Growth (c) 123 Payroll job growth (% over prior year) 0.0% (0.9)% 0.9% (0.8)% 0.9% (1.7)% 124 Unemployment rate (%, seasonally adjusted) 5.7% 5.4% 0.3% 5.8% 4.5% 1.3%
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 See Glossary of Terms.