Arizona Public Service 8K Results of Operations and Financial Condition | SEC 1 Feb 06

Exhibit 99.2

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December									12 Mo. Ended December
Line		2005			2004			Incr (Decr)			2005			2004			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)

1	Arizona Public Service	$	18		$	15		$	3		$	170		$	200		$	(30	)
2	Pinnacle West Energy		(6	)		(23	)		17			(85	)		(58	)		(27	)
3	APS Energy Services		(3	)		(1	)		(2	)		(6	)		3			(9	)
4	SunCor		13			31			(18	)		39			41			(2	)
5	El Dorado		—			—			—			(2	)		33			(35	)
6	Parent Company		2			16			(14	)		107			28			79


7	Income From Continuing Operations		24			38			(14	)		223			247			(24	)

8	Loss From Discontinued Operations — Net of Tax		(3	)		(4	)		1			(47	)		(4	)		(43	)
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—

10	Net Income	$	21		$	34		$	(13	)	$	176		$	243		$	(67	)


	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

11	Arizona Public Service	$	0.19		$	0.16		$	0.03		$	1.77		$	2.18		$	(0.41	)
12	Pinnacle West Energy		(0.06	)		(0.25	)		0.19			(0.89	)		(0.63	)		(0.26	)
13	APS Energy Services		(0.04	)		(0.01	)		(0.03	)		(0.06	)		0.03			(0.09	)
14	SunCor		0.13			0.34			(0.21	)		0.40			0.45			(0.05	)
15	El Dorado		(0.01	)		—			(0.01	)		(0.02	)		0.36			(0.38	)
16	Parent Company		0.03			0.17			(0.14	)		1.11			0.30			0.81


17	Income From Continuing Operations		0.24			0.41			(0.17	)		2.31			2.69			(0.38	)

18	Loss From Discontinued Operations — Net of Tax		(0.02	)		(0.04	)		0.02			(0.49	)		(0.03	)		(0.46	)
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—

20	Net Income	$	0.22		$	0.37		$	(0.15	)	$	1.82		$	2.66		$	(0.84	)


21	BOOK VALUE PER SHARE	$	34.80	*	$	32.14		$	2.66		$	34.80	*	$	32.14		$	2.66

	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,050			91,779			7,271			96,590			91,532			5,058
23	End of Period		99,057			91,793			7,264			99,057			91,793			7,264


*		Estimate


See Glossary of Terms.		Page 2 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December							12 Mo. Ended December
Line		2005		2004		Incr (Decr)			2005		2004		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)

	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	208	$	190	$	18		$	1,080	$	984	$	96
25	Business		242		222		20			1,040		979		61

26	Total retail		450		412		38			2,120		1,963		157
	Wholesale revenue on delivered electricity
27	Traditional contracts		6		3		3			23		16		7
28	Off-system sales		20		—		20			40		—		40
29	Transmission for others		5		8		(3	)		26		32		(6	)
30	Other miscellaneous services		7		6		1			28		24		4

31	Total regulated electricity		488		429		59			2,237		2,035		202

	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		84		111		(27	)		352		401		(49	)

33	Total operating electric revenues	$	572	$	540	$	32		$	2,589	$	2,436	$	153


	ELECTRIC SALES (GWH)

	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,519		2,368		151			12,224		11,528		696
35	Business		3,427		3,236		191			14,254		13,826		428

36	Total retail		5,946		5,604		342			26,478		25,354		1,124
	Wholesale electricity delivered
37	Traditional contracts		227		167		60			850		710		140
38	Off-system sales		526		—		526			1,336		—		1,336
39	Retail load hedge management		532		889		(357	)		3,010		2,732		278

40	Total regulated electricity		7,231		6,660		571			31,674		28,796		2,878

	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		5,239		8,348		(3,109	)		23,571		30,182		(6,611	)

42	Total electric sales		12,470		15,008		(2,538	)		55,245		58,978		(3,733	)


See Glossary of Terms.		Page 3 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December									12 Mo. Ended December
Line		2005			2004			Incr (Decr)			2005			2004			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)

43	Deferred fuel and purchased power regulatory asset — beginning balance	$	143		$	—		$	143		$	—		$	—		$	—
44	Deferred fuel and purchased power costs — current period		29			—			29			171			—			171
45	Interest on deferred fuel		1			—			1			2			—			2
46	Amounts recovered through revenues		—			—			—			—			—			—

47	Deferred fuel and purchased power regulatory asset — ending balance	$	173		$	—		$	173		$	173		$	—		$	173


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

	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	22		$	16		$	6		$	56		$	63		$	(7	)
49	Mark-to-market reversals on realized sales (b)		(17	)		—			(17	)		(16	)		(6	)		(10	)
50	Change in mark-to-market value of forward sales		1			6			(5	)		19			23			(4	)

51	Total gross margin	$	6		$	22		$	(16	)	$	59		$	80		$	(21	)


	By Pinnacle West Entity

52	Parent company marketing and trading division	$	5		$	12		$	(7	)	$	59		$	44		$	15
53	APS		3			(2	)		5			(6	)		(5	)		(1	)
54	Pinnacle West Energy		—			10			(10	)		5			27			(22	)
55	APS Energy Services		(2	)		2			(4	)		1			14			(13	)

56	Total gross margin	$	6		$	22		$	(16	)	$	59		$	80		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2005, Pinnacle West had accumulated net mark-to-market gains of $45 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: 2006, $14 million; 2007, $20 million; and thereafter, $11 million.


(a)		Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 48 and in line 49 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 48 are included in line 49. For example, line 49 shows that a prior-period mark-to-market gain of $17 million was transferred to “realized” for the fourth quarter of 2005. A $17 million realized gain is included in the $22 million on line 48 for the fourth quarter of 2005.

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


See Glossary of Terms.		Page 4 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December									12 Mo. Ended December
Line		2005			2004			Incr (Decr)			2005			2004			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS

	Retail customers
57	Residential		911,623			871,575			40,048			896,472			859,069			37,403
58	Business		112,569			108,860			3,709			111,168			107,115			4,053

59	Total		1,024,192			980,435			43,757			1,007,640			966,184			41,456
60	Wholesale customers		77			77			—			78			81			(3	)

61	Total customers		1,024,269			980,512			43,757			1,007,718			966,265			41,453


62	Customer growth (% over prior year)		4.5	%		3.9	%		0.6	%		4.3	%		3.7	%		0.6	%

	RETAIL SALES (GWH) — WEATHER NORMALIZED

63	Residential		2,525			2,340			185			12,304			11,704			600
64	Business		3,414			3,252			162			14,285			13,870			415

65	Total		5,939			5,592			347			26,589			25,574			1,015


	RETAIL USAGE (KWh/Average Customer)

66	Residential		2,763			2,717			46			13,636			13,418			218
67	Business		30,444			29,726			718			128,212			129,392			(1,180	)

	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

68	Residential		2,770			2,686			84			13,724			13,624			100
69	Business		30,328			29,871			457			128,498			129,495			(997	)

	ELECTRICITY DEMAND (MW)

70	System peak demand		5,169			4,432			737			7,000			6,402			598


See Glossary of Terms.		Page 5 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December									12 Mo. Ended December
Line		2005			2004			Incr (Decr)			2005			2004			Incr (Decr)
	ENERGY SOURCES (GWH)

	Generation production
71	Nuclear		1,496			1,812			(316	)		7,509			8,184			(675	)
72	Coal		3,459			3,327			132			13,061			12,666			395
73	Gas, oil and other		1,483			1,074			409			7,702			5,327			2,375

74	Total generation production		6,438			6,213			225			28,272			26,177			2,095

	Purchased power
75	Firm load		402			1,024			(622	)		3,474			4,325			(851	)
76	Marketing and trading		6,102			8,218			(2,116	)		25,713			30,192			(4,479	)

77	Total purchased power		6,504			9,242			(2,738	)		29,187			34,517			(5,330	)

78	Total energy sources		12,942			15,455			(2,513	)		57,459			60,694			(3,235	)


	POWER PLANT PERFORMANCE

	Capacity Factors
79	Nuclear		61	%		74	%		(13	)%		77	%		84	%		(7	)%
80	Coal		92	%		88	%		4	%		87	%		84	%		3	%
81	Gas, oil and other		19	%		12	%		7	%		26	%		18	%		8	%
82	System average		46	%		48	%		(2	)%		52	%		51	%		1	%

	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)
83	Nuclear		419			261			158			227			161			66
84	Coal		103			61			42			150			107			43
85	Gas		226			34			192			186			42			144

86	Total		748			356			392			563			310			253


See Glossary of Terms.		Page 6 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended December 31, 2005 and 2004


		3 Mo. Ended December									12 Mo. Ended December
Line		2005			2004			Incr (Decr)			2005			2004			Incr (Decr)
	ENERGY MARKET INDICATORS (a)

	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	83.58		$	51.23		$	32.35		$	66.40		$	49.30		$	17.10
88	SP15	$	97.65		$	60.62		$	37.03		$	72.94		$	55.20		$	17.74
	Off-Peak
89	Palo Verde	$	67.79		$	38.21		$	29.58		$	47.55		$	34.75		$	12.81
90	SP15	$	76.45		$	43.07		$	33.38		$	52.06		$	38.62		$	13.44

	WEATHER INDICATORS Actual

	Actual
91	Cooling degree-days		508			352			156			4,663			4,694			(31	)
92	Heating degree-days		308			422			(114	)		766			985			(219	)
93	Average humidity		30	%		45	%		(15	)%		34	%		32	%		2	%
	10-Year Averages
94	Cooling degree-days		420			420			—			4,531			4,531			—
95	Heating degree-days		415			415			—			972			972			—
96	Average humidity		40	%		40	%		0	%		35	%		35	%		0	%

	ECONOMIC INDICATORS

	Building Permits — Metro Phoenix (b) (d)
97	Single-family		6,131			6,830			(699	)		40,077			44,622			(4,545	)
98	Multi-family		1,398			995			403			7,144			6,225			919

99	Total		7,529			7,825			(296	)		47,221			50,847			(3,626	)


	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		4.1	%		4.0	%		0.1	%		4.1	%		3.3	%		0.8	%
101	Unemployment rate
	(%, seasonally adjusted)		4.9	%		4.7	%		0.2	%		4.7	%		5.0	%		(0.3	)%


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 latest available data through periods ended November 30, 2005.


See Glossary of Terms.		Page 7 of 31

Arizona Public Service 8-KResults of Operations and Financial Condition