EX-99.3 5 ex99-3.txt CONSOLIDATED STATS BY QTR FOR 2002 Exhibit 99.3 Last Updated 2/3/2003 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 $ 87 $ 16 $ 199 $ (82) 2 Pinnacle West Energy 1 1 10 (31) (19) (37) 3 APS Energy Services 2 11 7 8 28 38 4 SunCor 2 8 (1) 10 19 16 5 El Dorado -- (3) (15) (37) (55) (55) 6 Parent Company 17 (6) 13 19 43 8 -------- -------- -------- -------- -------- -------- 7 Income Before Accounting Change 54 75 101 (15) 215 (112) 8 Cumulative Effect of Change in Accounting - Net of Tax -- -- -- (66) (66) (51) -------- -------- -------- -------- -------- -------- 9 Net Income $ 54 $ 75 $ 101 $ (81) $ 149 $ (163) ======== ======== ======== ======== ======== ======== EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 10 Arizona Public Service $ 0.37 $ 0.76 $ 1.02 $ 0.19 $ 2.35 $ (0.95) 11 Pinnacle West Energy 0.01 0.01 0.12 (0.37) (0.23) (0.44) 12 APS Energy Services 0.03 0.13 0.08 0.09 0.33 0.45 13 SunCor 0.02 0.10 (0.01) 0.11 0.22 0.18 14 El Dorado -- (0.04) (0.18) (0.43) (0.65) (0.65) 15 Parent Company 0.20 (0.07) 0.16 0.24 0.51 0.09 -------- -------- -------- -------- -------- -------- 16 Income Before Accounting Change 0.63 0.89 1.19 (0.17) 2.53 (1.32) 17 Cumulative Effect of Change in Accounting - Net of Tax -- -- -- (0.78) (0.77) (0.60) -------- -------- -------- -------- -------- -------- 18 Net Income $ 0.63 $ 0.89 $ 1.19 $ (0.95) $ 1.76 $ (1.92) ======== ======== ======== ======== ======== ======== 19 BOOK VALUE PER SHARE $ 30.06 $ 30.54 $ 31.39 $ 29.40 $ 29.40 $ (0.06) COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 20 Average 84,884 84,926 84,797 85,302 84,964 34 21 End of Period 84,789 84,768 84,756 91,255 91,255 6,531
See Glossary of Terms. Last Updated 2/3/2003 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 $ 337 $ 172 $ 906 $ (9) 23 Business 195 251 270 212 928 (24) -------- -------- -------- -------- -------- -------- 24 Total retail 366 477 607 384 1,834 (33) -------- -------- -------- -------- -------- -------- Wholesale revenue on delivered electricity 25 Traditional contracts 2 1 3 3 9 (64) 26 Retail load hedge management 2 11 99 11 123 (455) Marketing and trading -- delivered 27 Generation sales other than native load 8 2 8 32 50 (98) 28 Realized margins on electricity trading 27 14 5 3 49 (13) 29 Other delivered electricity (a) 34 39 53 81 207 (122) -------- -------- -------- -------- -------- -------- 30 Total delivered marketing and trading 69 55 65 116 306 (233) -------- -------- -------- -------- -------- -------- 31 Total delivered wholesale electricity 73 67 167 130 438 (752) -------- -------- -------- -------- -------- -------- Other marketing and trading 32 Realized margins on delivered commodities other than electricity (a) 4 1 (3) 6 8 22 33 Prior period mark-to-market (gains) losses on contracts delivered during current period (a) (22) (8) 3 (8) (40) (39) 34 Change in mark-to-market for future-period deliveries 25 1 22 (1) 52 (75) -------- -------- -------- -------- -------- -------- 35 Total other marketing and trading 7 (6) 22 (3) 20 (92) -------- -------- -------- -------- -------- -------- 36 Transmission for others 6 6 6 12 30 4 37 Other miscellaneous services 4 2 4 7 17 (1) -------- -------- -------- -------- -------- -------- 38 Total electric operating revenues $ 456 $ 546 $ 806 $ 530 $ 2,339 $ (874) ======== ======== ======== ======== ======== ======== ELECTRIC SALES (GWH) Retail sales 39 Residential 2,141 2,441 3,806 2,056 10,444 109 40 Business 2,771 3,429 3,681 3,036 12,917 (147) -------- -------- -------- -------- -------- -------- 41 Total retail 4,912 5,870 7,487 5,092 23,361 (38) -------- -------- -------- -------- -------- -------- Wholesale electricity delivered 42 Traditional contracts 71 121 142 140 474 (739) 43 Retail load hedge management 158 230 1,958 296 2,642 (398) Marketing and trading -- delivered 44 Generation sales other than native load 376 73 291 1,051 1,791 403 45 Electricity trading 3,109 3,596 5,908 4,312 16,925 4,894 46 Other delivered electricity 727 774 905 1,733 4,139 1,557 -------- -------- -------- -------- -------- -------- 47 Total delivered marketing and trading 4,212 4,443 7,104 7,096 22,855 6,854 -------- -------- -------- -------- -------- -------- 48 Total delivered wholesale electricity 4,441 4,794 9,204 7,532 25,971 5,717 -------- -------- -------- -------- -------- -------- 49 Total electric sales 9,353 10,664 16,691 12,624 49,332 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 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 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 $ 2 $ -- $ 3 $ 9 $ 14 $ (66) 51 Other electricity marketing and trading (a) 33 24 19 23 99 (18) ------- ------- ------- ------- ------- ------- 52 Total electricity 35 24 22 32 113 (84) 53 Other commodities (a) 4 1 (3) 6 8 22 ------- ------- ------- ------- ------- ------- 54 Total realized margin 39 25 19 38 121 (62) ------- ------- ------- ------- ------- ------- Prior-period mark-to-market (gains) losses on contracts delivered during current period 55 Electricity (a) (26) (9) (4) (4) (30) (19) 56 Other commodities (a) (6) -- 6 (4) (11) (36) 57 Charge related to trading activities with Enron and its affiliates -- -- -- -- -- 8 ------- ------- ------- ------- ------- ------- 58 Subtotal (32) (9) 2 (8) (41) (47) ------- ------- ------- ------- ------- ------- 59 Total current period effects (b) 7 16 21 30 80 (109) ------- ------- ------- ------- ------- ------- Change in mark-to-market gains (losses) for future period deliveries (b) 61 Electricity 34 10 25 6 63 (83) 62 Other commodities (2) (7) (2) (7) (11) 7 ------- ------- ------- ------- ------- ------- 63 Total future period effects 32 3 23 (1) 52 (76) ------- ------- ------- ------- ------- ------- 64 Total gross margin $ 40 $ 19 $ 44 $ 29 $ 132 $ (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 Glosssary of Terms. Last Updated 2/3/2003 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 SEGMENT PRETAX GROSS MARGIN ANALYSIS (CONTINUED) (DOLLARS IN MILLIONS) BY COMMODITY SOLD OR TRADED 65 Electricity $ 45 $ 25 $ 43 $ 34 $ 147 $ (181) 66 Natural gas (5) 1 3 (5) (6) 2 67 Coal (1) (2) 1 -- (2) (9) 68 Emission allowances 1 (5) (3) -- (7) 3 69 Other -- -- -- -- -- -- ------- ------- ------- ------- ------- ------- 70 Total gross margin $ 40 $ 19 $ 44 $ 29 $ 132 $ (185) ======= ======= ======= ======= ======= ======= BY PINNACLE WEST ENTITY Parent company marketing and trading division 71 Generation sales other than native load $ 1 $ -- $ 2 $ 5 $ 8 $ 8 72 Other marketing and trading 34 9 30 9 82 4 APS 73 Generation sales other than native load 1 -- 1 -- 2 (77) 74 Other marketing and trading -- -- -- -- -- (156) Pinnacle West Energy 75 Generation sales other than native load -- -- -- 4 4 4 76 Other marketing and trading -- -- -- -- -- -- APS ES 77 Other marketing and trading 4 10 11 11 36 32 ------- ------- ------- ------- ------- ------- 78 Total gross margin before income taxes $ 40 $ 19 $ 44 $ 29 $ 132 $ (185) ======= ======= ======= ======= ======= =======
See Glossary of Terms. Last Updated 2/3/2003 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 79 Residential 801,000 795,681 798,590 811,930 801,801 25,462 80 Business 99,335 100,096 100,318 101,177 100,228 2,030 -------- -------- -------- -------- -------- -------- 81 Total 900,335 895,777 898,908 913,107 902,029 27,492 82 Wholesale customers 67 67 67 67 67 1 -------- -------- -------- -------- -------- -------- 83 Total customers 900,402 895,844 898,975 913,174 902,096 27,493 ======== ======== ======== ======== ======== ======== 84 Customer Growth (% over prior year) 3.2% 3.2% 3.1% 3.2% 3.1% (0.5)% RETAIL SALES (GWH) - WEATHER NORMALIZED 85 Residential 2,164 2,387 3,602 2,123 10,276 599 86 Business 2,774 3,392 3,675 3,015 12,856 79 -------- -------- -------- -------- -------- -------- 87 Total 4,938 5,779 7,277 5,138 23,132 678 ======== ======== ======== ======== ======== ======== RETAIL USAGE (KWH/AVERAGE CUSTOMER) 88 Residential 2,673 3,068 4,766 2,532 13,025 (287) 89 Business 27,896 34,258 36,691 30,011 128,885 (4,152) RETAIL USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 90 Residential 2,702 3,000 4,510 2,615 12,817 352 91 Business 27,926 33,886 36,638 29,797 128,269 (1,846) ELECTRICITY DEMAND (MW) 92 System peak demand 3,921 5,425 5,803 3,828 5,803 116
See Glossary of Terms. Last Updated 2/3/2003 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 93 Nuclear 2,257 2,242 2,387 2,094 8,980 596 94 Coal 2,890 2,703 3,280 3,183 12,056 (516) 95 Gas, oil and other 337 564 1,647 1,455 4,003 -- ------- ------- ------- ------- ------- ------- 96 Total 5,484 5,509 7,314 6,732 25,039 80 ------- ------- ------- ------- ------- ------- Purchased power 97 Firm load 429 846 859 (157) 1,619 (1,342) 98 Marketing and trading 3,993 4,599 8,771 6,340 23,704 6,051 ------- ------- ------- ------- ------- ------- 99 Total 4,422 5,445 9,630 6,183 25,323 4,709 ------- ------- ------- ------- ------- ------- 100 Total energy sources 9,906 10,954 16,944 12,915 50,362 4,789 ======= ======= ======= ======= ======= ======= POWER PLANT PERFORMANCE Capacity Factors 101 Nuclear 96% 95% 100% 87% 94% 6% 102 Coal 78% 72% 87% 84% 80% (4)% 103 Gas, oil and other 12% 20% 38% 29% 27% (10)% 104 System average 62% 62% 69% 60% 63% (7)% Generation Capacity Out of Service and Replaced for Native Load (average MW/day) 105 Nuclear 62 66 12 129 67 (60) 106 Coal 184 279 88 116 167 -- 107 Gas 12 18 106 54 48 16 108 Total 258 363 206 299 282 (44) 109 Generation Fuel Cost ($/MWh) $ 11.57 $ 11.89 $ 14.84 $ 13.05 $ 13.01 $ (3.21)
See Glossary of Terms. Last Updated 2/3/2003 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 110 Palo Verde $ 26.86 $ 30.65 $ 35.45 $ 36.18 $ 32.28 $ (86.13) 111 SP15 $ 28.46 $ 31.51 $ 35.55 $ 41.35 $ 34.22 $ (85.77) Off-Peak 112 Palo Verde $ 22.17 $ 14.10 $ 18.21 $ 25.09 $ 19.89 $ (41.68) 113 SP15 $ 22.76 $ 15.95 $ 19.54 $ 28.52 $ 21.69 $ (51.79) WEATHER INDICATORS Actual 114 Cooling degree-days 89 1,741 2,647 398 4,875 (247) 115 Heating degree-days 472 -- -- 328 800 (360) 116 Average humidity 28% 16% 27% 38% 27% (9)% 10-Year Averages 117 Cooling degree-days 71 1,458 2,454 398 4,381 -- 118 Heating degree-days 556 35 -- 435 1,026 -- 119 Average humidity 45% 25% 34% 40% 36% 0% ECONOMIC INDICATORS Building Permits -- Metro Phoenix (b) 120 Single-family 7,514 6,456 6,062 8,250 33,955 1,500 121 Multi-family 985 662 1,045 1,327 6,577 (2,392) -------- -------- -------- -------- -------- -------- 122 Total 8,499 7,118 7,107 9,577 40,532 (892) ======== ======== ======== ======== ======== ======== Arizona Job Growth (c) 123 Payroll job growth (% over prior year) (1.7)% (1.1)% (1.0)% 0.0% (0.8)% (1.7)% 124 Unemployment rate (%, seasonally adjusted) 5.9% 5.7% 5.9% 5.7% 5.8% 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.