Exhibit 99.2
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions) | ||||||||||||||
1 | Arizona Public Service | $ | 4 | $ | (6 | ) | $ | 10 | ||||||
2 | Pinnacle West Energy | — | — | — | ||||||||||
3 | APS Energy Services | 1 | 1 | — | ||||||||||
4 | SunCor | 8 | 21 | (13 | ) | |||||||||
5 | El Dorado | (2 | ) | (1 | ) | (1 | ) | |||||||
6 | Parent Company | 5 | (3 | ) | 8 | |||||||||
7 | Income From Continuing Operations | 16 | 12 | 4 | ||||||||||
Income (Loss) From Discontinued Operations — Net of Tax | ||||||||||||||
8 | Silverhawk | — | — | — | ||||||||||
9 | SunCor | 1 | 1 | — | ||||||||||
10 | NAC | — | — | — | ||||||||||
11 | Total | 1 | 1 | — | ||||||||||
12 | Net Income | $ | 17 | $ | 13 | $ | 4 | |||||||
EARNINGS PER SHARE BY SUBSIDIARY — DILUTED | ||||||||||||||
13 | Arizona Public Service | $ | 0.04 | $ | (0.06 | ) | $ | 0.10 | ||||||
14 | Pinnacle West Energy | — | — | — | ||||||||||
15 | APS Energy Services | 0.01 | 0.01 | — | ||||||||||
16 | SunCor | 0.09 | 0.21 | (0.12 | ) | |||||||||
17 | El Dorado | (0.02 | ) | (0.01 | ) | (0.01 | ) | |||||||
18 | Parent Company | 0.04 | (0.03 | ) | 0.07 | |||||||||
19 | Income From Continuing Operations | 0.16 | 0.12 | 0.04 | ||||||||||
Income (Loss) From Discontinued Operations — Net of Tax | ||||||||||||||
20 | Silverhawk | — | — | — | ||||||||||
21 | SunCor | — | 0.01 | (0.01 | ) | |||||||||
22 | NAC | — | — | — | ||||||||||
23 | Total | — | 0.01 | (0.01 | ) | |||||||||
24 | Net Income | $ | 0.16 | $ | 0.13 | $ | 0.03 | |||||||
25 | BOOK VALUE PER SHARE | $ | 34.45 | * | $ | 32.37 | $ | 2.08 | ||||||
COMMON SHARES OUTSTANDING (Thousands) | ||||||||||||||
26 | Average — Diluted | 100,622 | 99,449 | 1,173 | ||||||||||
27 | End of Period | 100,115 | 99,187 | 928 |
* Estimate |
See Glossary of Terms.
Page 2 of 31
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
ELECTRIC OPERATING REVENUES (Dollars in Millions) | ||||||||||||||
REGULATED ELECTRICITY SEGMENT | ||||||||||||||
Retail | ||||||||||||||
28 | Residential | $ | 246 | $ | 202 | $ | 44 | |||||||
29 | Business | 264 | 233 | 31 | ||||||||||
30 | Total retail | 510 | 435 | 75 | ||||||||||
Wholesale revenue on delivered electricity | ||||||||||||||
31 | Traditional contracts | 5 | 6 | (1 | ) | |||||||||
32 | Off-system sales | 7 | 12 | (5 | ) | |||||||||
33 | Transmission for others | 7 | 6 | 1 | ||||||||||
34 | Other miscellaneous services | 7 | 7 | — | ||||||||||
35 | Total regulated operating electricity revenues | 536 | 466 | 70 | ||||||||||
MARKETING AND TRADING | ||||||||||||||
36 | Electricity and other commodity sales | 72 | 85 | (13 | ) | |||||||||
37 | Total operating electric revenues | $ | 608 | $ | 551 | $ | 57 | |||||||
ELECTRIC SALES (GWH) | ||||||||||||||
REGULATED ELECTRICITY SEGMENT | ||||||||||||||
Retail sales | ||||||||||||||
38 | Residential | 2,734 | 2,419 | 315 | ||||||||||
39 | Business | 3,285 | 3,199 | 86 | ||||||||||
40 | Total retail | 6,019 | 5,618 | 401 | ||||||||||
Wholesale electricity delivered | ||||||||||||||
41 | Traditional contracts | 175 | 215 | (40 | ) | |||||||||
42 | Off-system sales | 243 | 672 | (429 | ) | |||||||||
43 | Retail load hedge management | 117 | 178 | (61 | ) | |||||||||
44 | Total regulated electricity | 6,554 | 6,683 | (129 | ) | |||||||||
MARKETING AND TRADING | ||||||||||||||
45 | Wholesale sales of electricity | 2,057 | 3,962 | (1,905 | ) | |||||||||
46 | Total electric sales | 8,611 | 10,645 | (2,034 | ) | |||||||||
See Glossary of Terms.
Page 3 of 31
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
POWER SUPPLY ADJUSTOR (“PSA”) - REGULATED ELECTRICITY SEGMENT (Dollars in Millions) | ||||||||||||||
47 | Deferred fuel and purchased power regulatory asset – beginning balance | $ | 160 | $ | 173 | $ | (13 | ) | ||||||
48 | Deferred fuel and purchased power costs – current period | 25 | 13 | 12 | ||||||||||
49 | Interest on deferred fuel | 2 | 1 | 1 | ||||||||||
50 | Amounts recovered through revenues | (69 | ) | (18 | ) | (51 | ) | |||||||
51 | Deferred fuel and purchased power regulatory asset – ending balance | $ | 118 | $ | 169 | $ | (51 | ) | ||||||
MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions) | ||||||||||||||
Realized and Mark-To-Market Components | ||||||||||||||
52 | Electricity and other commodity sales, realized (a) | $ | 12 | $ | 10 | $ | 2 | |||||||
53 | Mark-to-market reversals on realized sales (a) (b) | (8 | ) | (1 | ) | (7 | ) | |||||||
54 | Change in mark-to-market value of forward sales | 10 | 1 | 9 | ||||||||||
55 | Total gross margin | $ | 14 | $ | 10 | $ | 4 | |||||||
By Pinnacle West Entity | ||||||||||||||
56 | APS | $ | (1 | ) | $ | 8 | $ | (9 | ) | |||||
57 | Pinnacle West Marketing & Trading (c) | 1 | — | 1 | ||||||||||
58 | Parent Company (c) | 9 | (1 | ) | 10 | |||||||||
59 | APS Energy Services | 5 | 3 | 2 | ||||||||||
60 | Pinnacle West Energy | — | — | — | ||||||||||
61 | Total gross margin | $ | 14 | $ | 10 | $ | 4 | |||||||
Future Marketing and Trading Mark-to-Market Realization
As of March 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $28 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: 2007, $13 million; and 2008, $15 million.
(a) | Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 52 and in line 53 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 52 are included in line 53. For example, line 53 shows that a prior-period mark-to-market gain of $8 million was transferred to “realized” for the first quarter of 2007. A $8 million realized gain is included in the $12 million on line 52 for the first quarter of 2007. | |
(b) | Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations. | |
(c) | On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt. |
See Glossary of Terms.
Page 4 of 31
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
AVERAGE ELECTRIC CUSTOMERS | ||||||||||||||
Retail customers | ||||||||||||||
62 | Residential | 965,428 | 930,799 | 34,629 | ||||||||||
63 | Business | 118,649 | 113,570 | 5,079 | ||||||||||
64 | Total | 1,084,077 | 1,044,369 | 39,708 | ||||||||||
65 | Wholesale customers | 63 | 75 | (12 | ) | |||||||||
66 | Total customers | 1,084,140 | 1,044,444 | 39,696 | ||||||||||
67 | Customer growth (% over prior year) | 3.8 | % | 4.5 | % | (0.7 | )% | |||||||
RETAIL SALES (GWH) - WEATHER NORMALIZED | ||||||||||||||
68 | Residential | 2,648 | 2,475 | 173 | ||||||||||
69 | Business | 3,228 | 3,248 | (20 | ) | |||||||||
70 | Total | 5,876 | 5,723 | 153 | ||||||||||
RETAIL USAGE (KWh/Average Customer) | ||||||||||||||
71 | Residential | 2,832 | 2,763 | 69 | ||||||||||
72 | Business | 27,687 | 30,444 | (2,757 | ) | |||||||||
RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer) | ||||||||||||||
73 | Residential | 2,743 | 2,659 | 84 | ||||||||||
74 | Business | 27,204 | 28,600 | (1,396 | ) | |||||||||
ELECTRICITY DEMAND (MW) | ||||||||||||||
75 | System peak demand | 4,781 | 4,205 | 576 |
See Glossary of Terms.
Page 5 of 31
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
ENERGY SOURCES (GWH) | ||||||||||||||
Generation production | ||||||||||||||
76 | Nuclear | 2,299 | 1,720 | 579 | ||||||||||
77 | Coal | 3,164 | 3,083 | 81 | ||||||||||
78 | Gas, oil and other | 1,151 | 1,323 | (172 | ) | |||||||||
79 | Total generation production | 6,614 | 6,126 | 488 | ||||||||||
Purchased power | ||||||||||||||
80 | Firm load | 278 | 365 | (87 | ) | |||||||||
81 | Marketing and trading | 2,262 | 4,592 | (2,330 | ) | |||||||||
82 | Total purchased power | 2,540 | 4,957 | (2,417 | ) | |||||||||
83 | Total energy sources | 9,154 | 11,083 | (1,929 | ) | |||||||||
POWER PLANT PERFORMANCE | ||||||||||||||
Capacity Factors | ||||||||||||||
84 | Nuclear | 94 | % | 71 | % | 23 | % | |||||||
85 | Coal | 84 | % | 83 | % | 1 | % | |||||||
86 | Gas, oil and other | 16 | % | 18 | % | (2 | )% | |||||||
87 | System average | 50 | % | 46 | % | 4 | % | |||||||
Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a) | ||||||||||||||
88 | Nuclear | 57 | 306 | (249 | ) | |||||||||
89 | Coal | 203 | 257 | (54 | ) | |||||||||
90 | Gas | 267 | 201 | 66 | ||||||||||
91 | Total | 527 | 764 | (237 | ) | |||||||||
(a) | Includes planned and unplanned outages |
See Glossary of Terms.
Page 6 of 31
Last Updated 4/25/2007
Pinnacle West Capital Corporation
Quarterly Consolidated Statistical Summary
Periods Ended March 31, 2007 and 2006
3 Mo. Ended March | ||||||||||||||
Line | 2007 | 2006 | Incr (Decr) | |||||||||||
ENERGY MARKET INDICATORS (a) | ||||||||||||||
Electricity Average Daily Spot Prices ($/MWh) | ||||||||||||||
On-Peak | ||||||||||||||
92 | Palo Verde | $ | 54.62 | $ | 53.78 | $ | 0.84 | |||||||
93 | SP15 | $ | 60.02 | $ | 58.34 | $ | 1.68 | |||||||
Off-Peak | ||||||||||||||
94 | Palo Verde | $ | 42.06 | $ | 41.92 | $ | 0.14 | |||||||
95 | SP15 | $ | 45.86 | $ | 44.79 | $ | 1.07 | |||||||
WEATHER INDICATORS | ||||||||||||||
Actual | ||||||||||||||
96 | Cooling degree-days | 172 | 43 | 129 | ||||||||||
97 | Heating degree-days | 589 | 464 | 125 | ||||||||||
98 | Average humidity | 36 | % | 28 | % | 8 | % | |||||||
10-Year Averages | ||||||||||||||
99 | Cooling degree-days | 97 | 97 | — | ||||||||||
100 | Heating degree-days | 513 | 513 | — | ||||||||||
101 | Average humidity | 42 | % | 42 | % | 0 | % | |||||||
ECONOMIC INDICATORS | ||||||||||||||
Building Permits — Metro Phoenix (b) (d) | ||||||||||||||
102 | Single-family | 4,089 | 5,386 | (1,297 | ) | |||||||||
103 | Multi-family | 2,457 | 2,448 | 9 | ||||||||||
104 | Total | 6,546 | 7,834 | (1,288 | ) | |||||||||
Arizona Job Growth (c) (d) | ||||||||||||||
105 | Payroll job growth (% over prior year) | 4.4 | % | 6.2 | % | (1.8 | )% | |||||||
106 | Unemployment rate (%, seasonally adjusted) | 4.1 | % | 4.2 | % | (0.1 | )% |
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 periods ended February 28, 2007 (latest available data) and February 28, 2006. |
See Glossary of Terms.
Page 7 of 31