Exhibit 99.4
Pinnacle West Capital Corporation
Major Factors Affecting Consolidated Earnings Outlook
for Year Ending December 31, 2009
Compared with Year Ended December 31, 2008
(Earnings Per Diluted Share Outstanding)
| | | | | |
| 2008 net income | | $ | 2.40 | |
| | | | | |
| Adjustments: | | | | |
| Real estate segment | | | 0.26 | |
| Income tax credits related to prior years | | | (0.30 | ) |
| Severance costs related to workforce reductions | | | 0.08 | |
| Income from discontinued operations for resolution of a tax issue related to 2005 Silverhawk plant sale | | | (0.08 | ) |
| | | | |
| | | | | |
| 2008 on-going earnings | | | 2.36 | |
| | | | | |
| Projected increases (decreases) in 2009: | | | | |
| | | | | |
| Regulated electricity segment gross margin (revenues net of fuel and purchased power costs, excluding Renewable Energy Surcharge and similar rate adjustors) including: retail interim rate increase for full year; transmission revenue increases; higher fuel and purchased power costs (net of deferrals); lower usage due to first quarter 2009 mild weather and customer conservation; and minimal weather-normalized retail sales growth | | | 0.20 - 0.30 | |
| | | | | |
| Lower marketing and trading gross margin (revenues net of fuel and purchased power costs) | | | (0.14 | ) |
| | | | | |
| Increased operations and maintenance expense (excluding costs for Renewable Energy Standard, other regulatory programs and severance) related primarily to fossil plant maintenance and outages; pension and other post-retirement benefits; partially offset by cost efficiency efforts, including cost reductions reported to ACC | | | (0.10) - (0.20 | ) |
| | | | | |
| Costs related to utility capital expenditures (such as depreciation, property taxes and interest expense, net of capitalized financing costs) | | | (0.30) - (0.35 | ) |
| | | | | |
| Miscellaneous other items — net | | | 0.15 - 0.20 | |
| | | | | |
| Estimated 2009 earnings — a reasonable range around (excluding potential real estate results) | | $ | 2.30 | |
