Discontinued Operations

6 Months Ended

Jun. 30, 2012

Discontinued Operations

Discontinued Operations

13.Discontinued Operations

SunCor — In February 2012, SunCor filed for protection under the United States Bankruptcy Code to complete an orderly liquidation of its business.  We do not expect SunCor’s bankruptcy to have a material impact on Pinnacle West’s financial position, results of operations, or cash flows.  All activity for the income statement for the three and six months ended June 30, 2012 and prior comparative period income statement amounts are included in discontinued operations.

APSES — In 2011, Pinnacle West sold its investment in APSES.  Prior-period income statement amounts related to the sale of APSES and the associated revenues and costs are reflected in discontinued operations.

The following table provides revenue, income (loss) before income taxes and income (loss) after taxes classified as discontinued operations in Pinnacle West’s Condensed Consolidated Statements of Income for the three and six months ended June 30, 2012 and 2011 (dollars in millions):

	Three Months Ended June 30,					Six Months Ended June 30,
	2012			2011		2012			2011
Revenue:
SunCor	$	—		$	2	$	—		$	3
APSES	—			15		—			26
Total revenue	$	—		$	17	$	—		$	29
Income (loss) before taxes	$	(1	)	$	1	$	(3	)	$	2
Income (loss) after taxes	$	(1	)	$	1	$	(1	)	$	1