Exhibit 99.2
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions) | ||||||||||||||||||||||||||
1 | Arizona Public Service | $ | 169 | $ | 61 | $ | 108 | $ | 257 | $ | 152 | $ | 105 | |||||||||||||
2 | Pinnacle West Energy | — | (71 | ) | 71 | — | (80 | ) | 80 | |||||||||||||||||
3 | APS Energy Services | (2 | ) | — | (2 | ) | (1 | ) | (3 | ) | 2 | |||||||||||||||
4 | SunCor | 17 | 7 | 10 | 47 | 26 | 21 | |||||||||||||||||||
5 | El Dorado | — | — | — | (2 | ) | (1 | ) | (1 | ) | ||||||||||||||||
6 | Parent Company | — | 88 | (88 | ) | 6 | 105 | (99 | ) | |||||||||||||||||
7 | Income From Continuing Operations | 184 | 85 | 99 | 307 | 199 | 108 | |||||||||||||||||||
8 | Income (Loss) From Discontinued Operations — Net of Tax | — | 19 | (19 | ) | 2 | (44 | ) | 46 | |||||||||||||||||
9 | Cumulative Effect of Change in Accounting — Net of Tax | — | — | — | — | — | — | |||||||||||||||||||
10 | Net Income | $ | 184 | $ | 104 | $ | 80 | $ | 309 | $ | 155 | $ | 154 | |||||||||||||
EARNINGS PER SHARE BY SUBSIDIARY — DILUTED | ||||||||||||||||||||||||||
11 | Arizona Public Service | $ | 1.69 | $ | 0.62 | $ | 1.07 | $ | 2.57 | $ | 1.59 | $ | 0.98 | |||||||||||||
12 | Pinnacle West Energy | — | (0.72 | ) | 0.72 | — | (0.83 | ) | 0.83 | |||||||||||||||||
13 | APS Energy Services | (0.02 | ) | — | (0.02 | ) | (0.01 | ) | (0.03 | ) | 0.02 | |||||||||||||||
14 | SunCor | 0.17 | 0.07 | 0.10 | 0.47 | 0.27 | 0.20 | |||||||||||||||||||
15 | El Dorado | — | (0.01 | ) | 0.01 | (0.02 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||
16 | Parent Company | — | 0.90 | (0.90 | ) | 0.06 | 1.09 | (1.03 | ) | |||||||||||||||||
17 | Income From Continuing Operations | 1.84 | 0.86 | 0.98 | 3.07 | 2.08 | 0.99 | |||||||||||||||||||
18 | Income (Loss) From Discontinued Operations — Net of Tax | — | 0.19 | (0.19 | ) | 0.03 | (0.46 | ) | 0.49 | |||||||||||||||||
19 | Cumulative Effect of Change in Accounting — Net of Tax | — | — | — | — | — | — | |||||||||||||||||||
20 | Net Income | $ | 1.84 | $ | 1.05 | $ | 0.79 | $ | 3.10 | $ | 1.62 | $ | 1.48 | |||||||||||||
21 | BOOK VALUE PER SHARE | $ | 34.07 | * | $ | 35.81 | $ | (1.74 | ) | $ | 34.07 | * | $ | 35.81 | (1.74 | ) | ||||||||||
COMMON SHARES OUTSTANDING (Thousands) | ||||||||||||||||||||||||||
22 | Average — Diluted | 99,973 | 98,816 | 1,157 | 99,723 | 95,755 | 3,968 | |||||||||||||||||||
23 | End of Period | 99,648 | 98,881 | 767 | 99,648 | 98,881 | 767 |
* | Estimate |
See Glossary of Terms
Page 2 of 31
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
ELECTRIC OPERATING REVENUES (Dollars in Millions) | ||||||||||||||||||||||||||
REGULATED ELECTRICITY SEGMENT | ||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||
24 | Residential | $ | 490 | $ | 414 | $ | 76 | $ | 1,029 | $ | 872 | $ | 157 | |||||||||||||
25 | Business | 371 | 308 | 63 | 937 | 798 | 139 | |||||||||||||||||||
26 | Total retail | 861 | 722 | 139 | 1,966 | 1,670 | 296 | |||||||||||||||||||
Wholesale revenue on delivered electricity | ||||||||||||||||||||||||||
27 | Traditional contracts | 12 | 9 | 3 | 25 | 17 | 8 | |||||||||||||||||||
28 | Off-system sales | — | 8 | (8 | ) | 34 | 20 | 14 | ||||||||||||||||||
29 | Transmission for others | 7 | 7 | — | 19 | 21 | (2 | ) | ||||||||||||||||||
30 | Other miscellaneous services | 7 | 7 | — | 22 | 21 | 1 | |||||||||||||||||||
31 | Total regulated operating electricity revenues | 887 | 753 | 134 | 2,066 | 1,749 | 317 | |||||||||||||||||||
MARKETING AND TRADING SEGMENT | ||||||||||||||||||||||||||
32 | Electricity and other commodity sales | 85 | 107 | (22 | ) | 259 | 267 | (8 | ) | |||||||||||||||||
33 | Total operating electric revenues | $ | 972 | $ | 860 | $ | 112 | $ | 2,325 | $ | 2,016 | $ | 309 | |||||||||||||
ELECTRIC SALES (GWH) | ||||||||||||||||||||||||||
REGULATED ELECTRICITY SEGMENT | ||||||||||||||||||||||||||
Retail sales | ||||||||||||||||||||||||||
34 | Residential | 4,720 | 4,449 | 271 | 10,423 | 9,705 | 718 | |||||||||||||||||||
35 | Business | 4,222 | 4,100 | 122 | 11,392 | 10,826 | 566 | |||||||||||||||||||
36 | Total retail | 8,942 | 8,549 | 393 | 21,815 | 20,531 | 1,284 | |||||||||||||||||||
Wholesale electricity delivered | ||||||||||||||||||||||||||
37 | Traditional contracts | 321 | 269 | 52 | 717 | 624 | 93 | |||||||||||||||||||
38 | Off-system sales | 300 | 212 | 88 | 1,497 | 810 | 687 | |||||||||||||||||||
39 | Retail load hedge management | 622 | 1,026 | (404 | ) | 1,227 | 2,478 | (1,251 | ) | |||||||||||||||||
40 | Total regulated electricity | 10,185 | 10,056 | 129 | 25,256 | 24,443 | 813 | |||||||||||||||||||
MARKETING AND TRADING SEGMENT | ||||||||||||||||||||||||||
41 | Wholesale sales of electricity | 4,841 | 7,263 | (2,422 | ) | 12,594 | 18,332 | (5,738 | ) | |||||||||||||||||
42 | Total electric sales | 15,026 | 17,319 | (2,293 | ) | 37,850 | 42,775 | (4,925 | ) | |||||||||||||||||
See Glossary of Terms
Page 3 of 31
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions) | ||||||||||||||||||||||||||
43 | Deferred fuel and purchased power regulatory asset - - beginning balance | $ | 175 | $ | 38 | $ | 137 | $ | 173 | $ | — | $ | 173 | |||||||||||||
44 | Deferred fuel and purchased power costs — current period | 134 | 104 | 30 | 225 | 142 | 83 | |||||||||||||||||||
45 | Interest on deferred fuel | 2 | 1 | 1 | 6 | 1 | 5 | |||||||||||||||||||
46 | Amounts recovered through revenues | (102 | ) | — | (102 | ) | (195 | ) | — | (195 | ) | |||||||||||||||
47 | Deferred fuel and purchased power regulatory asset - - ending balance | $ | 209 | $ | 143 | $ | 66 | $ | 209 | $ | 143 | $ | 66 | |||||||||||||
MARKETING AND TRADING SEGMENT PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions) | ||||||||||||||||||||||||||
Realized and Mark-To-Market Components | ||||||||||||||||||||||||||
48 | Electricity and other commodity sales, realized (a) | $ | 8 | $ | 3 | $ | 5 | $ | 36 | $ | 33 | $ | 3 | |||||||||||||
49 | Mark-to-market reversals on realized sales (a) (b) | (1 | ) | 3 | (4 | ) | (3 | ) | (5 | ) | 2 | |||||||||||||||
50 | Change in mark-to-market value of forward sales | (3 | ) | 14 | (17 | ) | (2 | ) | 24 | (26 | ) | |||||||||||||||
51 | Total gross margin | $ | 4 | $ | 20 | $ | (16 | ) | $ | 31 | $ | 52 | $ | (21 | ) | |||||||||||
By Pinnacle West Entity | ||||||||||||||||||||||||||
52 | Parent company marketing and trading division | $ | 5 | $ | 26 | $ | (21 | ) | $ | 15 | $ | 53 | $ | (38 | ) | |||||||||||
53 | APS | (3 | ) | (8 | ) | 5 | 8 | (9 | ) | 17 | ||||||||||||||||
54 | Pinnacle West Energy | — | — | — | — | 5 | (5 | ) | ||||||||||||||||||
55 | APS Energy Services | 2 | 2 | — | 8 | 3 | 5 | |||||||||||||||||||
56 | Total gross margin | $ | 4 | $ | 20 | $ | (16 | ) | $ | 31 | $ | 52 | $ | (21 | ) | |||||||||||
Future Marketing and Trading Mark-to-Market Realization
As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 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: 2006, $8 million; 2007, $17 million; and 2008, $15 million.
(a) | Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $1 million was transferred to “realized” for the third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third quarter of 2006. | |
(b) | Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations. |
See Glossary of Terms
Page 4 of 31
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||||||||||||||
Retail customers | ||||||||||||||||||||||||||
57 | Residential | 935,523 | 895,789 | 39,734 | 932,241 | 891,422 | 40,819 | |||||||||||||||||||
58 | Business | 116,009 | 111,648 | 4,361 | 114,794 | 110,700 | 4,094 | |||||||||||||||||||
59 | Total | 1,051,532 | 1,007,437 | 44,095 | 1,047,035 | 1,002,122 | 44,913 | |||||||||||||||||||
60 | Wholesale customers | 76 | 78 | (2 | ) | 76 | 78 | (2 | ) | |||||||||||||||||
61 | Total customers | 1,051,608 | 1,007,515 | 44,093 | 1,047,111 | 1,002,200 | 44,911 | |||||||||||||||||||
62 | Customer growth (% over prior year) | 4.4 | % | 4.5 | % | (0.1 | )% | 4.5 | % | 4.2 | % | 0.3 | % | |||||||||||||
RETAIL SALES (GWH) — WEATHER NORMALIZED | ||||||||||||||||||||||||||
63 | Residential | 4,776 | 4,421 | 355 | 10,395 | 9,765 | 630 | |||||||||||||||||||
64 | Business | 4,232 | 4,120 | 112 | 11,410 | 10,871 | 539 | |||||||||||||||||||
65 | Total | 9,008 | 8,541 | 467 | 21,805 | 20,636 | 1,169 | |||||||||||||||||||
RETAIL USAGE (KWh/Average Customer) | ||||||||||||||||||||||||||
66 | Residential | 5,045 | 4,967 | 78 | 11,181 | 10,887 | 294 | |||||||||||||||||||
67 | Business | 36,394 | 36,723 | (329 | ) | 99,238 | 97,795 | 1,443 | ||||||||||||||||||
RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer) | ||||||||||||||||||||||||||
68 | Residential | 5,105 | 4,935 | 170 | 11,151 | 10,954 | 197 | |||||||||||||||||||
69 | Business | 36,477 | 36,899 | (422 | ) | 99,395 | 98,202 | 1,193 | ||||||||||||||||||
ELECTRICITY DEMAND (MW) | ||||||||||||||||||||||||||
70 | System peak demand | 7,652 | 7,000 | 652 | 7,652 | 7,000 | 652 |
See Glossary of Terms
Page 5 of 31
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
ENERGY SOURCES (GWH) | ||||||||||||||||||||||||||
Generation production | ||||||||||||||||||||||||||
71 | Nuclear | 2,202 | 2,147 | 55 | 5,120 | 6,013 | (893 | ) | ||||||||||||||||||
72 | Coal | 3,574 | 3,574 | — | 9,839 | 9,602 | 237 | |||||||||||||||||||
73 | Gas, oil and other | 2,433 | 3,064 | (631 | ) | 5,756 | 6,321 | (565 | ) | |||||||||||||||||
74 | Total generation production | 8,209 | 8,785 | (576 | ) | 20,715 | 21,936 | (1,221 | ) | |||||||||||||||||
Purchased power | ||||||||||||||||||||||||||
75 | Firm load | 1,962 | 1,589 | 373 | 4,067 | 3,055 | 1,012 | |||||||||||||||||||
76 | Marketing and trading | 5,607 | 7,795 | (2,188 | ) | 14,912 | 19,611 | (4,699 | ) | |||||||||||||||||
77 | Total purchased power | 7,569 | 9,384 | (1,815 | ) | 18,979 | 22,666 | (3,687 | ) | |||||||||||||||||
78 | Total energy sources | 15,778 | 18,169 | (2,391 | ) | 39,694 | 44,602 | (4,908 | ) | |||||||||||||||||
POWER PLANT PERFORMANCE | ||||||||||||||||||||||||||
Capacity Factors | ||||||||||||||||||||||||||
79 | Nuclear | 88 | % | 88 | % | 0 | % | 69 | % | 83 | % | (14 | )% | |||||||||||||
80 | Coal | 94 | % | 95 | % | (1 | )% | 87 | % | 86 | % | 1 | % | |||||||||||||
81 | Gas, oil and other | 34 | % | 39 | % | (5 | )% | 26 | % | 29 | % | (3 | )% | |||||||||||||
82 | System average | 61 | % | 62 | % | (1 | )% | 51 | % | 54 | % | (3 | )% | |||||||||||||
Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a) | ||||||||||||||||||||||||||
83 | Nuclear | 97 | 107 | (10 | ) | 119 | 163 | (44 | ) | |||||||||||||||||
84 | Coal | 62 | 47 | 15 | 62 | 162 | (100 | ) | ||||||||||||||||||
85 | Gas | 109 | 140 | (31 | ) | 53 | 172 | (119 | ) | |||||||||||||||||
86 | Total | 268 | 294 | (26 | ) | 234 | 497 | (263 | ) | |||||||||||||||||
(a) | Includes planned and unplanned outages |
See Glossary of Terms
Page 6 of 31
Last Updated 10/27/2006
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended September 30, 2006 and 2005
3 Mo. Ended September | 9 Mo. Ended September | |||||||||||||||||||||||||
Line | 2006 | 2005 | Incr (Decr) | 2006 | 2005 | Incr (Decr) | ||||||||||||||||||||
ENERGY MARKET INDICATORS (a) | ||||||||||||||||||||||||||
Electricity Average Daily Spot Prices ($/MWh) | ||||||||||||||||||||||||||
On-Peak | ||||||||||||||||||||||||||
87 | Palo Verde | $ | 65.89 | $ | 78.94 | $ | (13.05 | ) | $ | 58.10 | $ | 60.67 | $ | (2.57 | ) | |||||||||||
88 | SP15 | $ | 71.89 | $ | 83.21 | $ | (11.32 | ) | $ | 61.87 | $ | 64.70 | $ | (2.83 | ) | |||||||||||
Off-Peak | ||||||||||||||||||||||||||
89 | Palo Verde | $ | 38.45 | $ | 52.35 | $ | (13.90 | ) | $ | 36.25 | $ | 40.81 | $ | (4.56 | ) | |||||||||||
90 | SP15 | $ | 43.94 | $ | 56.08 | $ | (12.14 | ) | $ | 38.82 | $ | 43.92 | $ | (5.10 | ) | |||||||||||
WEATHER INDICATORS | ||||||||||||||||||||||||||
Actual | ||||||||||||||||||||||||||
91 | Cooling degree-days | 2,455 | 2,583 | (128 | ) | 4,238 | 4,155 | 83 | ||||||||||||||||||
92 | Heating degree-days | — | — | — | 468 | 458 | 10 | |||||||||||||||||||
93 | Average humidity | 33 | % | 29 | % | 4 | % | 26 | % | 35 | % | (9 | )% | |||||||||||||
10-Year Averages | ||||||||||||||||||||||||||
94 | Cooling degree-days | 2,541 | 2,541 | — | 4,187 | 4,187 | — | |||||||||||||||||||
95 | Heating degree-days | — | — | — | 545 | 545 | — | |||||||||||||||||||
96 | Average humidity | 33 | % | 33 | % | 0 | % | 32 | % | 32 | % | 0 | % | |||||||||||||
ECONOMIC INDICATORS | ||||||||||||||||||||||||||
Building Permits — Metro Phoenix (b) (d) | ||||||||||||||||||||||||||
97 | Single-family | 4,397 | 8,000 | (3,603 | ) | 21,996 | 30,369 | (8,373 | ) | |||||||||||||||||
98 | Multi-family | 2,031 | 2,038 | (7 | ) | 7,894 | 5,424 | 2,470 | ||||||||||||||||||
99 | Total | 6,428 | 10,038 | (3,610 | ) | 29,890 | 35,793 | (5,903 | ) | |||||||||||||||||
Arizona Job Growth (c) (d) | ||||||||||||||||||||||||||
100 | Payroll job growth (% over prior year) | 4.7 | % | 6.1 | % | (1.4 | )% | 5.1 | % | 5.4 | % | (0.3 | )% | |||||||||||||
101 | Unemployment rate (%, seasonally adjusted) | 4.2 | % | 4.8 | % | (0.6 | )% | 4.3 | % | 4.7 | % | (0.4 | )% |
Sources: | ||
(a) | Average of daily prices obtained and used with permission from Dow Jones & Company, Inc. | |
(b) | Arizona Real Estate Center, Arizona State University W.P. Carey College of Business | |
(c) | Arizona Department of Economic Security | |
(d) | Economic indicators reflect latest available data through periods ended August 31, 2006. |
See Glossary of Terms
Page 7 of 31