Exhibit 99.9
Pinnacle West Capital Corporation
Major Factors Affecting Consolidated Earnings Outlook
for Year Ending December 31, 2009
Compared with Year Ended December 31, 2008
(Earnings Per Diluted Share Outstanding)
| | | | | |
| 2008 net income | | $ | 2.40 | |
| | | | | |
| Adjustments: | | | | |
| SunCor real estate impairment charge | | | 0.32 | |
| Income tax credits related to prior years | | | (0.30 | ) |
| Severance costs related to workforce reductions | | | 0.08 | |
| Income from discontinued operations for resolution a tax issue related to 2005 Silverhawk plant sale | | | (0.08 | ) |
| | | | |
| | | | | |
| 2008 on-going earnings | | | 2.42 | |
| | | | | |
| Projected increases (decreases) in 2009: | | | | |
| | | | | |
| Regulated electricity segment gross margin | | | 0.35 - 0.45 | |
| (revenues net of fuel and purchased power costs, excluding Renewable Energy Surcharge), including: | | | | |
| retail interim rate increase for full year, transmission revenue increases, higher fuel and purchased power costs (net of deferrals) and minimal weather- normalized retail sales growth | | | | |
| | | | | |
| Lower marketing and trading gross margin (revenues net of fuel and purchased power costs) | | | (0.14 | ) |
| | | | | |
| Increased operations and maintenance expense | | | (0.20) - (0.30 | ) |
| (excluding Renewable Energy Standard and severance costs) related primarily to fossil plant maintenance and outages, pension and other post- retirement benefits, partially offset by cost efficiency efforts | | | | |
| | | | | |
| Costs related to utility capital expenditures | | | (0.30) - (0.35 | ) |
| (such as depreciation, property taxes and interest expense, net of capitalized financing costs) | | | | |
| | | | | |
| Miscellaneous other items — net | | | 0.10 - 0.15 | |
| | | | | |
| Estimated 2009 earnings — a reasonable range around | | $ | 2.30 | |
| (excluding potential real estate results) | | | | |
