Arizona Public Service 8K Results of Operations and Financial Condition | SEC 30 Jul 08

Exhibit 99.4

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)

1	Arizona Public Service	$	4		$	75		$	204		$	—		$	284		$	14
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		1			(1	)		2			(2	)		—			3
4	SunCor		9			1			(1	)		6			14			(36	)
5	El Dorado		(2	)		—			(3	)		(1	)		(6	)		(3	)
6	Parent Company		5			4			—			1			9			6


7	Income From Continuing Operations		17			79			202			4			301			(16	)

	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—			—			—			—			(1	)
9	SunCor		—			—			7			2			9			(1	)
10	Other		—			—			—			(3	)		(3	)		(2	)

11	Total		—			—			7			(1	)		6			(4	)
12	Net Income	$	17		$	79		$	209		$	3		$	307		$	(20	)


	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

13	Arizona Public Service	$	0.04		$	0.75		$	2.03		$	—		$	2.82		$	0.12
14	Pinnacle West Energy		—			—			—			—			—			—
15	APS Energy Services		0.01			(0.01	)		0.01			(0.02	)		(0.01	)		0.02
16	SunCor		0.09			0.01			(0.01	)		0.06			0.15			(0.35	)
17	El Dorado		(0.02	)		—			(0.03	)		(0.01	)		(0.06	)		(0.03	)
18	Parent Company		0.04			0.04			—			0.01			0.09			0.06


19	Income From Continuing Operations		0.16			0.79			2.00			0.04			2.99			(0.18	)

	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—			—			—			—			—
21	SunCor		—			(0.01	)		0.07			0.02			0.08			(0.02	)
22	Other		—			—			—			(0.03	)		(0.02	)		(0.02	)

23	Total		—			(0.01	)		0.07			(0.01	)		0.06			(0.04	)

24	Net Income	$	0.16		$	0.78		$	2.07		$	0.03		$	3.05		$	(0.22	)


25	BOOK VALUE PER SHARE	$	34.45		$	34.13		$	35.55		$	35.15		$	35.15		$	0.67

	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,622			100,779			100,829			100,963			100,835			825
27	End of Period		100,115			100,290			100,367			100,486			100,486			838

See Glossary of Terms.

Page 14 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


												(Decrease)
Line		1st Qtr		2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date		vs Prior YTD
	ELECTRIC OPERATING REVENUES (Dollars in Millions)

	REGULATED ELECTRICITY SEGMENT
	Retail
28	Residential	$	246	$	335	$	574	$	263	$	1,418	$	147
29	Business		264		342		425		323		1,355		116

30	Total retail		510		677		999		586		2,773		263
	Wholesale revenue on delivered electricity
31	Traditional contracts		5		9		12		7		34		12
32	Off-system sales		7		10		16		17		49		3
33	Transmission for others		7		7		8		7		29		3
34	Other miscellaneous services		7		8		9		10		33		2

35	Total regulated operating electricity revenues		536		711		1,044		627		2,918		283

	MARKETING AND TRADING
36	Electricity and other commodity sales		72		93		99		78		342		11

37	Total operating electric revenues	$	608	$	804	$	1,143	$	705	$	3,260	$	294


	ELECTRIC SALES (GWH)

	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,734		3,287		5,084		2,667		13,771		777
39	Business		3,285		4,004		4,426		3,685		15,400		424

40	Total retail		6,019		7,291		9,510		6,352		29,171		1,201
	Wholesale electricity delivered
41	Traditional contracts		175		262		296		190		923		40
42	Off-system sales		243		310		478		448		1,481		(132	)
43	Retail load hedge management		117		254		529		125		1,026		(564	)

44	Total regulated electricity		6,554		8,117		10,813		7,115		32,601		545

	MARKETING AND TRADING
45	Wholesale sales of electricity		1,923		2,648		3,146		1,681		9,397		(6,958	)

46	Total electric sales		8,477		10,765		13,959		8,796		41,998		(6,413	)

See Glossary of Terms.

Page 15 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)

47	Deferred fuel and purchased power regulatory asset — beginning balance	$	160		$	118		$	137		$	150		$	160		$	(13	)
48	Deferred fuel and purchased power costs — current period		25			104			69			(9	)		189			(55	)
49	Regulatory disallowance		—			(14	)		—			—			(14	)		(14	)
50	Interest on deferred fuel		2			1			2			2			7			(1	)
51	Amounts recovered through revenues		(69	)		(72	)		(58	)		(32	)		(231	)		34

52	Deferred fuel and purchased power regulatory asset — ending balance	$	118		$	137		$	150		$	111		$	111		$	(49	)


	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	13		$	23		$	6		$	11		$	54		$	—
54	Mark-to-market reversals on realized sales (a) (b)		(8	)		1			(3	)		(3	)		(7	)		7
55	Change in mark-to-market value of forward sales		10			(6	)		2			2			1			1

56	Total gross margin	$	15		$	18		$	5		$	10		$	48		$	8


	By Pinnacle West Entity

57	APS	$	(1	)	$	7		$	—		$	—		$	7		$	(7	)
58	Pinnacle West		11			10			1			9			31			14
59	APS Energy Services		5			1			4			1			10			1
60	Pinnacle West Energy		—			—			—			—			—			—

61	Total gross margin	$	15		$	18		$	5		$	10		$	48		$	8

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $9 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: 2008, $2 million; and thereafter, $7 million.


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market gain of $7 million was transferred to “realized” for the total year of 2007. A $7 million realized gain is included in the $54 million on line 53 for the total year of 2007.

(b)		Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.

See Glossary of Terms.

Page 16 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	AVERAGE ELECTRIC CUSTOMERS

	Retail customers
62	Residential		965,428			962,095			963,874			972,654			966,013			29,549
63	Business		118,649			119,792			120,918			121,898			120,314			4,883

64	Total		1,084,077			1,081,887			1,084,792			1,094,552			1,086,327			34,432
65	Wholesale customers		63			62			61			56			61			(16	)

66	Total customers		1,084,140			1,081,949			1,084,853			1,094,608			1,086,388			34,416


67	Customer growth (% over prior year)		3.8	%		3.5	%		3.2	%		2.6	%		3.3	%		(1.1	)%

	RETAIL SALES (GWH) — WEATHER NORMALIZED

68	Residential		2,657			3,220			4,810			2,704			13,390			378
69	Business		3,228			3,977			4,368			3,663			15,236			223

70	Total		5,885			7,197			9,178			6,367			28,626			601


	RETAIL USAGE (KWh/Average Customer)

71	Residential		2,832			3,417			5,275			2,742			14,256			380
72	Business		27,687			33,425			36,601			30,230			127,998			(1,751	)

	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

73	Residential		2,752			3,346			4,990			2,780			13,861			(33	)
74	Business		27,205			33,199			36,126			30,047			126,633			(3,431	)

	ELECTRICITY DEMAND (MW)

75	Native load peak demand		4,496			6,705			7,128			5,089			7,128			(92	)

See Glossary of Terms.

Page 17 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY SOURCES (GWH)

	Generation production
76	Nuclear		2,299			1,846			2,218			1,430			7,794			806
77	Coal		3,164			3,265			3,563			3,350			13,342			166
78	Gas, oil and other		1,151			1,518			2,480			1,554			6,703			(681	)

79	Total generation production		6,614			6,629			8,261			6,334			27,839			291

	Purchased power
80	Firm load		278			1,676			2,521			913			5,388			1,098
81	Marketing and trading		2,128			3,097			3,993			2,078			11,296			(7,572	)

82	Total purchased power		2,406			4,773			6,514			2,991			16,684			(6,474	)

83	Total energy sources		9,020			11,402			14,775			9,325			44,523			(6,183	)


	POWER PLANT PERFORMANCE

	Capacity Factors
84	Nuclear		94	%		75	%		89	%		57	%		79	%		8	%
85	Coal		84	%		86	%		93	%		87	%		87	%		0	%
86	Gas, oil and other		16	%		21	%		34	%		21	%		23	%		(2	)%
87	System average		50	%		49	%		61	%		47	%		52	%		1	%

	Generation Capacity Out of Service
	and Replaced for Native Load
	(average MW/day) (a)
88	Nuclear		57			266			22			470			204			51
89	Coal		203			189			79			164			158			76
90	Gas		267			405			147			264			271			182

91	Total		527			860			248			898			633			309


(a)		Includes planned and unplanned outages

See Glossary of Terms.

Page 18 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007


																	Increase
																	(Decrease)
Line		1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
	ENERGY MARKET INDICATORS (a)

	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
92	Palo Verde	$	54.62		$	64.64		$	69.26		$	57.18		$	61.43		$	4.67
93	SP15	$	60.02		$	68.75		$	68.84		$	68.13		$	66.44		$	4.49
	Off-Peak
94	Palo Verde	$	42.06		$	41.46		$	37.03		$	44.39		$	41.24		$	4.15
95	SP15	$	45.86		$	46.14		$	41.23		$	50.71		$	45.99		$	5.38

	WEATHER INDICATORS

	Actual
96	Cooling degree-days		172			1,708			2,686			595			5,161			466
97	Heating degree-days		589			8			—			398			995			144
98	Average humidity		36	%		18	%		30	%		30	%		30	%		2	%
	10-Year Averages
99	Cooling degree-days		96			1,554			2,544			441			4,635			—
100	Heating degree-days		517			28			—			394			939			—
101	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%

	ECONOMIC INDICATORS

	Building Permits — Metro Phoenix (b)
102	Single-family		7,017			7,447			4,827			1,530			20,821			(7,155	)
103	Multi-family		4,131			3,573			2,687			2,193			12,833			2,726

104	Total		11,148			11,020			7,514			3,723			33,654			(4,429	)


	Arizona Job Growth (c)
105	Payroll job growth (% over prior year)		4.1	%		3.3	%		2.6	%		0.1	%		2.5	%		(2.9	)%
106	Unemployment rate
	(%, seasonally adjusted)		4.0	%		3.7	%		3.6	%		4.1	%		3.9	%		(0.2	)%


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

See Glossary of Terms.

Page 19 of 31

Arizona Public Service 8-KResults of Operations and Financial Condition