Exhibit 12.3
PINNACLE WEST CAPITAL CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)

	Nine Months
	Ended
	September 30,		Twelve Months Ended December 31,
	2007		2006		2005		2004		2003		2002
Earnings:
Income from continuing operations	$	295,292	$	317,143	$	223,163	$	246,590	$	225,384	$	236,563
Income taxes		140,428		156,418		126,892		136,142		102,202		152,145
Fixed charges		178,785		225,119		214,430		214,803		225,041		219,178
Total Earnings	$	614,505	$	698,680	$	564,485	$	597,535	$	552,627	$	607,886
Fixed Charges:
Interest charges	$	158,352	$	196,826	$	185,087	$	183,527	$	193,973	$	187,039
Estimated interest portion of annual rents		20,433		28,293		29,343		31,276		31,068		32,139
Total Fixed Charges	$	178,785	$	225,119	$	214,430	$	214,803	$	225,041	$	219,178
Preferred Stock Dividend
Requirements:
Income before income taxes	$	435,720	$	473,561	$	350,055	$	382,732	$	327,586	$	388,708
Net income from continuing operations		295,292		317,143		223,163		246,590		225,384		236,563
Ratio of income before income taxes to net income		1.476		1.493		1.569		1.552		1.453		1.643
Preferred stock dividends		—		—		—		—		—		—
Preferred Stock Dividend
Requirements – Ratio (above) Times Preferred Stock Dividends	$	—	$	—	$	—	$	—	$	—	$	—
Fixed Charges and Preferred
Stock Dividend Requirements:
Fixed charges	$	178,785	$	225,119	$	214,430	$	214,803	$	225,041	$	219,178
Preferred stock dividend requirements		—		—		—		—		—		—
Total Fixed Charges and
Preferred Stock Dividend Requirements	$	178,785	$	225,119	$	214,430	$	214,803	$	225,041	$	219,178
Ratio of Earnings to Combined
Fixed Charges and Preferred Stock Dividend Requirements (rounded down)		3.43		3.10		2.63		2.78		2.45		2.77