Exhibit 99.9
| FOR IMMEDIATE RELEASE | October 25, 2007 | |||
| Media Contact: | Alan Bunnell, (602) 250-3376 | Page 1 of 2 | ||
| Analyst Contacts: | Rebecca Hickman, (602) 250-5668 | |||
| Lisa Malagon, (602) 250-5671 | ||||
| Web site: | www.pinnaclewest.com | |||
PINNACLE WEST THIRD QUARTER RESULTS BUOYED BY HOT WEATHER
PHOENIX — Benefiting from one of the hottest Arizona summers on record, Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income for the quarter ended September 30, 2007, of $208.7 million, or $2.07 per diluted share of common stock. This result compares with $184.2 million, or $1.84 per diluted share, for the same period in 2006.
“Our improved results were driven by higher retail sales at Arizona Public Service (APS) as a result of hotter than normal temperatures,” said Pinnacle West Chairman Bill Post. The extreme weather in the quarter – punctuated by a record 32 days with highs of 110 degrees or higher in the Phoenix metropolitan area and by the hottest August on record – improved the Company’s earnings by $16 million, or $0.16 per share.
In addition to the weather effects, the 2007 third quarter also was positively impacted by tax benefits of $10 million, or $0.10 per share, related to prior years. Solid customer growth was offset by increases in operating and maintenance costs for generation and customer service; and lower results from the Company’s real estate operations.
APS reported net income of $204.3 million for the third quarter of 2007, compared with net income of $168.6 million for the same period a year ago. The Company benefited from strong operational performance at the Palo Verde Nuclear Generating Station (which achieved a site average capacity factor of 89 percent); increased retail sales of 6.4 percent; and retail customer growth of 3.2 percent.
“Even with a slowing housing market, our growth continues at a fairly strong level of 3.2 percent compared with our ten-year average of 3.8 percent,” Post said. “Our state’s rapidly growing population requires continuing infrastructure investments. Over the next five years, we expect to spend about $1 billion annually on transmission, distribution and generation infrastructure to meet our customers’ needs and support Arizona’s economy.”
SunCor Development Co., Pinnacle West’s real estate subsidiary, reported net income of $6.0 million, compared with $17.5 million in the 2006 third quarter. The decrease was primarily due to lower sales of residential property and land parcels attributable to the effects of deteriorating credit markets.
| PINNACLE WEST 2007 THIRD QUARTER EARNINGS | October 25, 2007 Page 2 of 2 | |
For more information on Pinnacle West’s operating statistics and earnings, please visitwww.pinnaclewest.com/financials.
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2007 third quarter earnings and recent developments at 1:30 pm (ET) today, October 25. The web cast can be accessed atwww.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 19150269. A replay of the call also will be available until 11:55 p.m. (ET), Thursday, November 1, 2007, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and the same reservation number.
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2007 third quarter earnings and recent developments at 1:30 pm (ET) today, October 25. The web cast can be accessed atwww.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 19150269. A replay of the call also will be available until 11:55 p.m. (ET), Thursday, November 1, 2007, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and the same reservation number.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial, and industrial real estate projects.
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PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
( in thousands, except per share amounts)
| THREE MONTHS ENDED | NINE MONTHS ENDED | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||||||
Operating Revenues | ||||||||||||||||
| Regulated electricity segment | $ | 1,043,723 | $ | 886,979 | $ | 2,291,067 | $ | 2,065,823 | ||||||||
| Real estate segment | 47,411 | 97,871 | 173,013 | 318,328 | ||||||||||||
| Marketing and trading | 99,203 | 84,425 | 264,311 | 259,352 | ||||||||||||
| Other revenues | 15,597 | 7,167 | 36,113 | 28,173 | ||||||||||||
| Total | 1,205,934 | 1,076,442 | 2,764,504 | 2,671,676 | ||||||||||||
Operating Expenses | ||||||||||||||||
| Regulated electricity segment fuel and purchased power | 407,242 | 314,150 | 880,932 | 735,489 | ||||||||||||
| Real estate segment operations | 46,391 | 78,853 | 154,008 | 248,595 | ||||||||||||
| Marketing and trading fuel and purchased power | 93,860 | 80,906 | 226,337 | 227,797 | ||||||||||||
| Operations and maintenance | 178,419 | 164,396 | 527,307 | 511,155 | ||||||||||||
| Depreciation and amortization | 95,059 | 90,390 | 277,515 | 267,308 | ||||||||||||
| Taxes other than income taxes | 34,940 | 31,697 | 104,416 | 99,970 | ||||||||||||
| Other expenses | 11,246 | 5,610 | 28,537 | 22,562 | ||||||||||||
| Total | 867,157 | 766,002 | 2,199,052 | 2,112,876 | ||||||||||||
Operating Income | 338,777 | 310,440 | 565,452 | 558,800 | ||||||||||||
Other | ||||||||||||||||
| Allowance for equity funds used during construction | 5,235 | 3,178 | 14,874 | 10,612 | ||||||||||||
| Other income | 4,276 | 18,055 | 11,976 | 34,448 | ||||||||||||
| Other expense | (6,744 | ) | (3,693 | ) | (13,685 | ) | (12,953 | ) | ||||||||
| Total | 2,767 | 17,540 | 13,165 | 32,107 | ||||||||||||
Interest Expense | ||||||||||||||||
| Interest charges | 54,393 | 50,577 | 158,352 | 143,985 | ||||||||||||
| Capitalized interest | (5,435 | ) | (5,612 | ) | (15,455 | ) | (14,595 | ) | ||||||||
| Total | 48,958 | 44,965 | 142,897 | 129,390 | ||||||||||||
Income From Continuing Operations Before Income Taxes | 292,586 | 283,015 | 435,720 | 461,517 | ||||||||||||
Income Taxes | 91,588 | 98,836 | 140,428 | 154,900 | ||||||||||||
Income From Continuing Operations | 200,998 | 184,179 | 295,292 | 306,617 | ||||||||||||
Income (Loss) From Discontinued Operations | ||||||||||||||||
Net of Income Taxes | 7,710 | (12 | ) | 8,940 | 2,159 | |||||||||||
Net Income | $ | 208,708 | $ | 184,167 | $ | 304,232 | $ | 308,776 | ||||||||
Weighted-Average Common Shares Outstanding — Basic | 100,324 | 99,491 | 100,200 | 99,277 | ||||||||||||
Weighted-Average Common Shares Outstanding — Diluted | 100,829 | 99,973 | 100,767 | 99,723 | ||||||||||||
Earnings Per Weighted-Average Common Share Outstanding | ||||||||||||||||
| Income from continuing operations — basic | $ | 2.00 | $ | 1.85 | $ | 2.95 | $ | 3.09 | ||||||||
| Net income — basic | $ | 2.08 | $ | 1.85 | $ | 3.04 | $ | 3.11 | ||||||||
| Income from continuing operations — diluted | $ | 1.99 | $ | 1.84 | $ | 2.93 | $ | 3.07 | ||||||||
| Net income — diluted | $ | 2.07 | $ | 1.84 | $ | 3.02 | $ | 3.10 | ||||||||