Exhibit 12.3

PINNACLE WEST CAPITAL CORP

COMPUTATION OF EARNINGS TO COMBINED FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)

	Nine Months
	Ended
	September 30,		Twelve Months Ended December 31,
	2006		2005		2004		2003		2002		2001
Earnings:
Income from continuing operations	$	306,617	$	223,163	$	246,590	$	225,384	$	236,563	$	327,367
Income taxes		154,900		126,892		136,142		102,202		152,145		213,535
Fixed charges		165,335		214,430		214,803		225,041		219,178		211,958
Total	$	626,852	$	564,485	$	597,535	$	552,627	$	607,886	$	752,860
Fixed Charges:
Interest expense	$	143,985	$	185,087	$	183,527	$	193,973	$	187,039	$	175,822
Estimated interest portion of annual rents		21,350		29,343		31,276		31,068		32,139		36,136
Total	$	165,335	$	214,430	$	214,803	$	225,041	$	219,178	$	211,958
Preferred Stock Dividend Requirements:
Income before income taxes	$	461,517	$	350,055	$	382,732	$	327,586	$	388,708	$	540,902
Net income from continuing operations		306,617		223,163		246,590		225,384		236,563		327,367
Ratio of income before income taxes to net income		1.505		1.569		1.552		1.453		1.643		1.652
Preferred stock dividends		—		—		—		—		—		—
Preferred stock dividend requirements ratio (above) times preferred stock dividends	$	—	$	—	$	—	$	—	$	—	$	—
Fixed Charges and Preferred Stock Dividend Requirements:
Fixed charges	$	165,335	$	214,430	$	214,803	$	225,041	$	219,178	$	211,958
Preferred stock dividend requirements		—		—		—		—		—		—
Total	$	165,335	$	214,430	$	214,803	$	225,041	$	219,178	$	211,958
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements (rounded down)		3.79		2.63		2.78		2.45		2.77		3.55