EX-99.2 4 ex99-2.txt QTRLY CONSOLIDATED STATISTICAL SUMMARY 2003/2002 Exhibit 99.2 Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 --------------------------------- ---------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) -------- -------- ----------- -------- -------- ----------- EARNINGS CONTRIBUTION BY SUBSIDIARY ($ MILLIONS) 1 Arizona Public Service $ 16 $ 32 $ (16) $ 183 $ 248 $ (65) 2 Pinnacle West Energy 5 1 4 (14) 19 (33) 3 APS Energy Services 8 2 6 34 -- 34 4 SunCor 1 1 -- 9 4 5 5 El Dorado 3 -- 3 (52) -- (52) 6 Parent Company (13) 17 (30) 13 46 (33) -------- -------- -------- -------- -------- -------- 7 Income From Continuing Operations 20 53 (33) 173 317 (144) Income From Discontinued Operations - 8a Net of Tax 5 1 4 14 1 13 Cumulative Effect of Change in Accounting - 8b Net of Tax -- -- -- (66) (12) (54) -------- -------- -------- -------- -------- -------- 9 Net Income $ 25 $ 54 $ (29) $ 121 $ 306 $ (185) ======== ======== ======== ======== ======== ======== EARNINGS PER SHARE BY SUBSIDIARY - DILUTED 10 Arizona Public Service $ 0.17 $ 0.37 $ (0.20) $ 2.12 $ 2.92 $ (0.80) 11 Pinnacle West Energy 0.06 0.01 0.05 (0.17) 0.22 (0.39) 12 APS Energy Services 0.08 0.03 0.05 0.39 -- 0.39 13 SunCor 0.01 0.02 (0.01) 0.11 0.05 0.06 14 El Dorado 0.03 -- 0.03 (0.60) -- (0.60) 15 Parent Company (0.13) 0.20 (0.33) 0.15 0.56 (0.41) -------- -------- -------- -------- -------- -------- 16 Income From Continuing Operations 0.22 0.63 (0.41) 2.00 3.75 (1.75) Income From Discontinued Operations - 17a Net of Tax 0.06 -- 0.06 0.16 -- 0.16 Cumulative Effect of Change in Accounting - 17b Net of Tax -- -- -- (0.76) (0.14) (0.62) -------- -------- -------- -------- -------- -------- 18 Net Income $ 0.28 $ 0.63 $ (0.35) $ 1.40 $ 3.61 $ (2.21) ======== ======== ======== ======== ======== ======== 19 BOOK VALUE PER SHARE $ 29.39 $ 30.06 $ (0.67) $ 29.39 $ 30.06 $ (0.67) COMMON SHARES OUTSTANDING - DILUTED (THOUSANDS) 20 Average 91,359 84,884 6,475 86,627 84,910 1,717 21 End of Period 91,257 84,789 6,468 91,257 84,789 6,468
See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 ---------------------------------- ---------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) -------- -------- ----------- -------- -------- ----------- ELECTRIC OPERATING REVENUES (DOLLARS IN MILLIONS) REGULATED ELECTRICITY SEGMENT Retail 22 Residential $ 168 $ 171 $ (3) $ 903 $ 913 $ (10) 23 Business 196 195 1 929 948 (19) -------- -------- -------- -------- -------- -------- 24 Total retail 364 366 (2) 1,832 1,861 (29) Wholesale revenue on delivered electricity 25 Traditional contracts 3 2 1 10 49 (39) 26 Retail load hedge management 5 2 3 126 575 (449) 27 Transmission for others 6 6 -- 30 28 2 28 Other miscellaneous services 7 4 3 19 16 3 -------- -------- -------- -------- -------- -------- 29 Total regulated electricity 385 380 5 2,017 2,529 (512) -------- -------- -------- -------- -------- -------- MARKETING AND TRADING SEGMENT Delivered marketing and trading 30 Generation sales other than native load 44 8 36 86 69 17 31 Realized margins on electricity trading 5 27 (22) 27 77 (50) 32 Other delivered electricity (a) 122 34 88 295 252 43 -------- -------- -------- -------- -------- -------- 33 Total delivered marketing and trading 171 69 102 408 398 10 -------- -------- -------- -------- -------- -------- OTHER MARKETING AND TRADING Realized margins on delivered commodities 34 other than electricity (a) (2) 4 (6) 2 (5) 7 Prior period mark-to-market (gains) losses on 35 contracts delivered during current period (a) (3) (22) 19 (15) (43) 28 36 Change in mark-to-market for future-period deliveries (3) 25 (28) 18 119 (101) -------- -------- -------- -------- -------- -------- 37 Total other marketing and trading (8) 7 (15) 5 71 (66) -------- -------- -------- -------- -------- -------- 38 Total marketing and trading 163 76 87 413 469 (56) -------- -------- -------- -------- -------- -------- 39 Total operating electric revenues $ 548 $ 456 $ 92 $ 2,430 $ 2,998 $ (568) ======== ======== ======== ======== ======== ======== ELECTRIC SALES (GWH) REGULATED ELECTRICITY SEGMENT Retail 40 Residential 2,104 2,141 (37) 10,407 10,354 53 41 Business 2,849 2,771 78 12,995 13,011 (16) -------- -------- -------- -------- -------- -------- 42 Total retail 4,953 4,912 41 23,402 23,365 37 Wholesale electricity delivered 43 Traditional contracts 130 71 59 533 715 (182) 44 Retail load hedge management 109 158 (49) 2,593 3,123 (530) -------- -------- -------- -------- -------- -------- 45 Total regulated electricity 5,192 5,141 51 26,528 27,203 (675) -------- -------- -------- -------- -------- -------- MARKETING AND TRADING SEGMENT Delivered marketing and trading 46 Generation sales other than native load 992 376 616 2,407 1,141 1,266 47 Electricity trading 3,910 3,109 801 17,726 12,849 4,877 48 Other delivered electricity 2,470 727 1,743 5,882 2,550 3,332 -------- -------- -------- -------- -------- -------- 49 Total delivered marketing and trading 7,372 4,212 3,160 26,015 16,540 9,475 -------- -------- -------- -------- -------- -------- 50 Total electric sales 12,564 9,353 3,211 52,543 43,743 8,800 ======== ======== ======== ======== ======== ========
---------- (a) The net effect on net electric operating revenues from realization of prior-period mark-to-market included in line 39 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 35 are included in lines 31 and 34. For example, line 35 shows that a prior-period mark-to-market gain of $3 million was transferred to "realized" for the first quarter of 2003. Lines 31 and 34 include amounts totaling $3 million of realized revenues for the first quarter of 2003. See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 ---------------------------- ---------------------------- Line 2003 2002 INCR (DECR) 2003 2002 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 51 Generation sales other than native load $ 3 2 $ 1 15 34 (19) 52 Other electricity marketing and trading (a) 24 33 (9) 90 146 (56) ----- ----- ----- ----- ----- ----- 53 Total electricity 27 35 (8) 105 180 (75) 54 Other commodities (a) (2) 4 (6) 2 (5) 7 ----- ----- ----- ----- ----- ----- 55 Total realized margin 25 39 (14) 107 175 (68) ----- ----- ----- ----- ----- ----- Prior-period mark-to-market (gains) losses on contracts delivered during current period 56 Electricity (a) (5) (16) 11 (11) (48) 37 57 Other commodities (a) 2 (6) 8 (3) 10 (13) 58 Charge related to trading activities with Enron and its affiliates -- -- -- -- (8) 8 ----- ----- ----- ----- ----- ----- 59 Subtotal (3) (22) 19 (14) (46) 32 ----- ----- ----- ----- ----- ----- 60 Total current period effects (b) 22 17 5 93 129 (36) ----- ----- ----- ----- ----- ----- Change in mark-to-market gains (losses) for future period deliveries (b) 61 Electricity (6) 25 (31) 24 145 (121) 62 Other commodities 3 (2) 5 (6) (24) 18 ----- ----- ----- ----- ----- ----- 63 Subtotal (3) 23 (26) 18 121 (103) ----- ----- ----- ----- ----- ----- 64 Total gross margin $ 19 40 $ (21) $ 111 $ 250 $(139) ===== ===== ===== ===== ===== =====
FUTURE MARKETING AND TRADING MARK-TO-MARKET REALIZATION As of March 31, 2003, Pinnacle West had accumulated mark-to-market net gains of $35 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 2003, $2 million; 2004, $10 million; 2005, $10 million; 2006 and thereafter, $13 million. ---------- (a) The net effect on pretax gross margin from realization of prior-period mark-to-market included in line 60 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 56 are included in line 52. The opposites of amounts included in line 57 are included in line 54. For example, line 56 shows that a prior-period mark-to-market gain of $5 million was transferred to "realized" for the first quarter of 2003. A $5 million realized gain is included in the $24 million on line 52 for the first quarter of 2003. (b) Quarterly amounts do not total to the annual amounts because of intra-year mark-to-market eliminations. See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 ---------------------------------- ---------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) -------- -------- ----------- -------- -------- ----------- MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (CONTINUED) (DOLLARS IN MILLIONS) BY COMMODITY SOLD OR TRADED 65 Electricity $ 17 $ 45 $ (28) $ 119 $ 276 $ (157) 66 Natural gas 2 (5) 7 1 (11) 12 67 Coal (1) (1) -- (2) (7) 5 68 Emission allowances -- 1 (1) (8) (8) -- 69 Other 1 -- 1 1 -- 1 -------- -------- -------- -------- -------- -------- 70 Total Gross Margin $ 19 $ 40 $ (21) $ 111 $ 250 $ (139) ======== ======== ======== ======== ======== ======== BY PINNACLE WEST ENTITY Parent company marketing and trading division 71 Generation sales other than native load $ (2) $ 1 $ (3) $ 5 $ 1 $ 4 72 Other marketing and trading 4 34 (30) 52 105 (53) APS 73 Generation sales other than native load 6 1 5 7 32 (25) 74 Other marketing and trading -- -- -- -- 103 (103) Pinnacle West Energy 75 Generation sales other than native load (1) -- (1) 3 -- 3 76 Other marketing and trading -- -- -- -- -- -- APS ES 77 Other marketing and trading 12 4 8 44 9 35 -------- -------- -------- -------- -------- -------- 78 Total gross margin before income taxes $ 19 $ 40 $ (21) $ 111 $ 250 $ (139) ======== ======== ======== ======== ======== ========
See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 ---------------------------------- ---------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) -------- -------- ----------- -------- -------- ----------- AVERAGE ELECTRIC CUSTOMERS Retail customers 79 Residential 827,937 801,000 26,937 808,535 782,760 25,775 80 Business 101,999 99,335 2,664 100,897 98,723 2,174 -------- -------- -------- -------- -------- -------- 81 Total 929,936 900,335 29,601 909,432 881,483 27,949 82 Wholesale customers 65 67 (2) 67 66 1 -------- -------- -------- -------- -------- -------- 83 Total customers 930,001 900,402 29,599 909,499 881,549 27,950 ======== ======== ======== ======== ======== ======== 84 Customer Growth (% over prior year) 3.3% 3.2% 0.1% 3.2% 3.5% (0.3)% RETAIL SALES (GWH) - WEATHER NORMALIZED 85 Residential 2,235 2,162 73 10,455 9,892 563 86 Business 2,880 2,774 106 13,005 12,767 238 -------- -------- -------- -------- -------- -------- 87 Total 5,115 4,936 179 23,460 22,659 801 ======== ======== ======== ======== ======== ======== RETAIL USAGE (KWH/AVERAGE CUSTOMER) 88 Residential 2,541 2,673 (132) 12,871 13,228 (357) 89 Business 27,927 27,896 31 128,793 131,805 (3,012) RETAIL USAGE - WEATHER NORMALIZED (KWH/AVERAGE CUSTOMER) 90 Residential 2,700 2,699 1 12,931 12,637 294 91 Business 28,236 27,928 308 128,893 129,322 (429) ELECTRICITY DEMAND (MW) 92 System peak demand 3,569 3,921 (352) 5,803 5,687 116
See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 -------------------------------- ------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) ------- ------- ----------- ------- ------- ----------- ENERGY SOURCES (GWH) Generation production 93 Nuclear 2,306 2,257 49 9,030 8,381 649 94 Coal 2,770 2,890 (120) 11,936 12,561 (625) 95 Gas, oil and other 1,288 337 951 5,320 3,324 1,996 ------- ------- ------- ------- ------- ------- 96 Total 6,364 5,484 880 26,286 24,266 2,020 ------- ------- ------- ------- ------- ------- Purchased power 97 Firm load (15) 70 (85) 1,533 2,861 (1,328) 98 Marketing and trading 6,489 3,993 2,496 26,199 18,520 7,679 ------- ------- ------- ------- ------- ------- 99 Total 6,474 4,063 2,411 27,732 21,381 6,351 ------- ------- ------- ------- ------- ------- 100 Total energy sources 12,838 9,547 3,291 54,018 45,647 8,371 ======= ======= ======= ======= ======= ======= POWER PLANT PERFORMANCE Capacity Factors 101 Nuclear 98% 96% 2% 95% 88% 7% 102 Coal 75% 78% (3)% 80% 84% (4)% 103 Gas, oil and other 26% 12% 14% 29% 29% 0% 104 System average 58% 62% (4)% 62% 68% (6)% Generation Capacity Out of Service and Replaced for Native Load (average MW/day) 105 Nuclear 31 62 (31) 60 129 (69) 106 Coal 247 184 63 182 143 39 107 Gas 189 12 177 92 25 67 108 Total 467 258 209 334 297 37 109 Generation Fuel Cost ($/MWh) $ 15.89 $ 11.57 $ 4.32 $ 14.01 $ 14.30 $ (0.29)
See Glossary of Terms. Last Updated 5/2/03 Pinnacle West Capital Corporation Quarterly Consolidated Statistical Summary Periods Ended March 31, 2003 and 2002
3 MO. ENDED MARCH 31 12 MO. ENDED MARCH 31 ----------------------------------- ---------------------------------- Line 2003 2002 INCR (DECR) 2003 2002 INCR (DECR) -------- -------- ----------- -------- -------- ----------- ENERGY MARKET INDICATORS (a) 110 Electricity Average Daily Spot Prices ($/MWh) 111 On-Peak Palo Verde $ 49.66 $ 26.86 $ 22.80 $ 37.98 $ 71.57 $ (33.59) 112 SP15 $ 54.35 $ 28.46 $ 25.89 $ 40.69 $ 72.19 $ (31.50) 113 Off-Peak Palo Verde $ 36.09 $ 22.17 $ 13.92 $ 23.37 $ 34.51 $ (11.14) SP15 $ 39.70 $ 22.76 $ 16.94 $ 25.93 $ 39.22 $ (13.29) WEATHER INDICATORS 114 115 Actual 116 Cooling degree-days 76 89 (13) 4,862 5,104 (242) Heating degree-days 349 472 (123) 677 975 (298) 117 Average humidity 44% 28% 16% 31% 31% 0% 118 10-Year Averages 119 Cooling degree-days 77 77 -- 4,439 4,439 -- Heating degree-days 546 546 -- 1,013 1,013 -- Average humidity 45% 45% 0% 36% 36% 0% ECONOMIC INDICATORS 120 121 Building Permits -- Metro Phoenix (b) (d) Single-family 4,928 4,761 167 31,558 28,843 2,715 Multi-family 226 681 (455) 6,051 5,760 291 122 -------- -------- -------- -------- -------- -------- Total 5,154 5,442 (288) 37,609 34,603 3,006 ======== ======== ======== ======== ======== ======== Arizona Job Growth (c) (d) 123 Payroll job growth (% over prior year) 1.1% (0.8)% 1.9% 0.4% 0.3% 0.1% 124 Unemployment rate (%, seasonally adjusted) 5.6% 6.2% (0.6)% 6.1% 5.2% 0.9%
---------- 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 three month and twelve month ended February 2002 and February 2003. See Glossary of Terms.