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

Exhibit 99.5

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


																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	$	(6	)	$	94	$	169		$	13		$	270		$	100
2	Pinnacle West Energy		—			—		—			—			—			85
3	APS Energy Services		1			—		(2	)		(2	)		(3	)		3
4	SunCor		21			8		17			3			50			11
5	El Dorado		(1	)		—		—			(1	)		(3	)		(1	)
6	Parent Company		(3	)		9		—			(3	)		3			(104	)


7	Income From Continuing Operations		12			111		184			10			317			94

	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—		—			—			1			68
9	SunCor		1			1		—			8			10			(7	)
10	Other		—			—		—			—			(1	)		(4	)

11	Total		1			1		—			8			10			57

12	Net Income	$	13		$	112	$	184		$	18		$	327		$	151


	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

13	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69		$	0.13		$	2.70		$	0.93
14	Pinnacle West Energy		—			—		—			—			—			0.89
15	APS Energy Services		0.01			—		(0.02	)		(0.02	)		(0.03	)		0.03
16	SunCor		0.21			0.07		0.17			0.03			0.50			0.10
17	El Dorado		(0.01	)		—		—			(0.01	)		(0.03	)		(0.01	)
18	Parent Company		(0.03	)		0.09		—			(0.03	)		0.03			(1.08	)


19	Income From Continuing Operations		0.12			1.11		1.84			0.10			3.17			0.86

	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—		—			—			—			0.69
21	SunCor		0.01			0.02		—			0.08			0.10			(0.07	)
22	Other		—			—		—			—			—			(0.03	)

23	Total		0.01			0.02		—			0.08			0.10			0.59

24	Net Income	$	0.13		$	1.13	$	1.84		$	0.18		$	3.27		$	1.45


25	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07		$	34.48		$	34.48		$	(0.10	)

	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		99,449			99,640		99,973			100,474			100,010			3,420
27	End of Period		99,187			99,284		99,648			99,959			99,959			902

See Glossary of Terms.

Page 20 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


													Increase
													(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	$	202	$	337	$	490	$	242		$	1,271	$	192
29	Business		233		333		371		302			1,239		198

30	Total retail		435		670		861		544			2,510		390
	Wholesale revenue on delivered electricity
31	Traditional contracts		6		7		12		(3	)		22		(1	)
32	Off-system sales		12		22		—		12			46		6
33	Transmission for others		6		6		7		7			26		—
34	Other miscellaneous services		7		8		7		9			31		3

35	Total regulated operating electricity revenues		466		713		887		569			2,635		398

	MARKETING AND TRADING
36	Electricity and other commodity sales		85		90		85		71			331		(21	)

37	Total operating electric revenues	$	551	$	803	$	972	$	640		$	2,966	$	377


	ELECTRIC SALES (GWH)

	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,419		3,284		4,720		2,571			12,994		771
39	Business		3,199		3,971		4,222		3,584			14,976		722

40	Total retail		5,618		7,255		8,942		6,155			27,970		1,493
	Wholesale electricity delivered
41	Traditional contracts		215		181		321		166			883		33
42	Off-system sales		672		218		219		504			1,613		277
43	Retail load hedge management		178		622		450		340			1,590		(1,420	)

44	Total regulated electricity		6,683		8,276		9,932		7,165			32,056		383

	MARKETING AND TRADING
45	Wholesale sales of electricity		3,962		3,862		4,841		3,690			16,355		(7,217	)

46	Total electric sales		10,645		12,138		14,773		10,855			48,411		(6,834	)

See Glossary of Terms.

Page 21 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


																	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	$	173		$	169		$	175		$	209		$	173		$	173
48	Deferred fuel and purchased power costs — current period		13			78			134			19			244			73
49	Regulatory disallowance		—			—			—			—			—			—
50	Interest on deferred fuel		1			3			2			2			8			6
51	Amounts recovered through revenues		(18	)		(75	)		(102	)		(70	)		(265	)		(265	)

52	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	209		$	160		$	160		$	(13	)


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

	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	10		$	17		$	7		$	17		$	54		$	(1	)
54	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)		(6	)		(14	)		2
55	Change in mark-to-market value of forward sales		1			—			(3	)		(3	)		—			(20	)

56	Total gross margin	$	10		$	16		$	3		$	8		$	40		$	(19	)


	By Pinnacle West Entity

57	APS	$	8		$	2		$	(3	)	$	5		$	14		$	20
58	Pinnacle West		(1	)		11			4			2			17			(42	)
59	APS Energy Services		3			3			2			1			9			8
60	Pinnacle West Energy		—			—			—			—			—			(5	)

61	Total gross margin	$	10		$	16		$	3		$	8		$	40		$	(19	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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, $16 million; and 2008, $14 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 $14 million was transferred to “realized” for the total year 2006. A $14 million realized gain is included in the $54 million on line 53 for the total year 2006.

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

See Glossary of Terms.

Page 22 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


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

	Retail customers
62	Residential		930,799			930,402			935,523			949,132			936,464			39,992
63	Business		113,570			114,803			116,009			117,342			115,431			4,263

64	Total		1,044,369			1,045,205			1,051,532			1,066,474			1,051,895			44,255
65	Wholesale customers		75			76			76			80			77			(1	)

66	Total customers		1,044,444			1,045,281			1,051,608			1,066,554			1,051,972			44,254


67	Customer growth (% over prior year)		4.5	%		4.6	%		4.4	%		4.1	%		4.4	%		0.1	%

	RETAIL SALES (GWH) - WEATHER NORMALIZED

68	Residential		2,471			3,129			4,779			2,633			13,012			690
69	Business		3,247			3,932			4,230			3,604			15,013			730

70	Total		5,718			7,061			9,009			6,237			28,025			1,420


	RETAIL USAGE (KWh/Average Customer)

71	Residential		2,763			3,530			5,045			2,709			13,876			241
72	Business		30,444			34,590			36,394			30,552			129,749			1,235

	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)

73	Residential		2,655			3,363			5,108			2,774			13,894			149
74	Business		28,589			34,252			36,463			30,716			130,064			1,579

	ELECTRICITY DEMAND (MW)

75	Native load peak demand		3,954			6,306			7,220			5,022			7,220			647

See Glossary of Terms.

Page 23 of 31

]

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


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

	Generation production
76	Nuclear		1,720			1,198			2,202			1,868			6,988			(521	)
77	Coal		3,083			3,182			3,574			3,337			13,176			116
78	Gas, oil and other		1,323			2,000			2,433			1,628			7,384			(1,051	)

79	Total generation production		6,126			6,380			8,209			6,833			27,548			(1,456	)

	Purchased power
80	Firm load		365			1,740			1,962			223			4,290			816
81	Marketing and trading		4,592			4,597			5,353			4,326			18,868			(6,845	)

82	Total purchased power		4,957			6,337			7,315			4,549			23,158			(6,029	)

83	Total energy sources		11,083			12,717			15,524			11,382			50,706			(7,485	)


	POWER PLANT PERFORMANCE

	Capacity Factors
84	Nuclear		71	%		49	%		88	%		75	%		71	%		(6	)%
85	Coal		83	%		84	%		94	%		87	%		87	%		0	%
86	Gas, oil and other		18	%		28	%		34	%		22	%		25	%		(3	)%
87	System average		46	%		48	%		61	%		50	%		51	%		(2	)%

	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		306			553			97			267			153			39
89	Coal		257			184			62			155			82			9
90	Gas		201			117			109			286			89			(4	)

91	Total		764			854			268			708			324			44


(a)		Includes planned and unplanned outages

See Glossary of Terms.

Page 24 of 31

Last Updated 7/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


																	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	$	53.78		$	54.63		$	65.89		$	52.72		$	56.76		$	(9.64	)
93	SP15	$	58.34		$	55.39		$	71.89		$	62.16		$	61.95		$	(10.99	)
	Off-Peak
94	Palo Verde	$	41.92		$	28.38		$	38.45		$	39.62		$	37.09		$	(10.46	)
95	SP15	$	44.79		$	27.43		$	43.94		$	46.27		$	40.61		$	(11.45	)

	WEATHER INDICATORS

	Actual
96	Cooling degree-days		43			1,740			2,455			457			4,695			32
97	Heating degree-days		464			4			—			383			851			85
98	Average humidity		28	%		18	%		33	%		33	%		28	%		(6	)%
	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		8,716			8,883			5,969			4,408			27,976			(15,282	)
103	Multi-family		2,887			2,976			3,215			1,029			10,107			2,329

104	Total		11,603			11,859			9,184			5,437			38,083			(12,953	)


	Arizona Job Growth (c)
105	Payroll job growth (% over prior year)		6.2	%		5.3	%		5.1	%		4.9	%		5.4	%		0.0	%
106	Unemployment rate (%, seasonally adjusted)		4.2	%		4.1	%		4.0	%		4.1	%		4.1	%		(0.5	)%


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 25 of 31

Arizona Public Service 8-KResults of Operations and Financial Condition