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

Exhibit 99.4

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


																	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	$	34		$	55		$	95	$	15		$	200		$	19
	2	Pinnacle West Energy		(22	)		(14	)		1		(23	)		(58	)		(50	)
	3	APS Energy Services		2			1			1		(1	)		3			(13	)
	4	SunCor		2			4			4		31			41			(5	)
	5	El Dorado		—			34			—		—			33			34
	6	Parent Company		15			(6	)		3		16			28			37


	7	Income From Continuing Operations		31			74			104		38			247			22

	8	Income (Loss) From Discontinued Operations — Net of Tax		—			(1	)		1		(4	)		(4	)		(20	)
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—

	10	Net Income	$	31		$	73		$	105	$	34		$	243		$	2


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	0.38		$	0.60		$	1.04	$	0.16		$	2.18		$	0.20
	12	Pinnacle West Energy		(0.24	)		(0.15	)		0.01		(0.25	)		(0.63	)		(0.55	)
	13	APS Energy Services		0.02			0.01			0.01		(0.01	)		0.03			(0.15	)
	14	SunCor		0.02			0.04			0.05		0.34			0.45			(0.05	)
	15	El Dorado		—			0.37			—		—			0.36			0.37
	16	Parent Company		0.15			(0.06	)		0.03		0.17			0.30			0.40


	17	Income From Continuing Operations		0.33			0.81			1.14		0.41			2.69			0.22

	18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			(0.02	)		0.01		(0.04	)		(0.03	)		(0.19	)
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—		—			—			—

	20	Net Income	$	0.34		$	0.79		$	1.15	$	0.37		$	2.66		$	0.03


	21	BOOK VALUE PER SHARE	$	31.19		$	31.68		$	32.55	$	32.14		$	32.14		$	1.17

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		91,376			91,400			91,491		91,779			91,532			127
	23	End of Period		91,310			91,309			91,443		91,793			91,793			505



See Glossary of Terms.		Page 14 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


													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
	24	Residential	$	189	$	245	$	360	$	190	$	984	$	27
	25	Business		211		257		289		222		979		26

	26	Total retail		400		502		649		412		1,963		53
		Wholesale revenue on delivered electricity
	27	Traditional contracts		3		4		6		3		16		1
	28	Off-system sales		—		—		—		—		—		—
	29	Transmission for others		8		8		8		8		32		5
	30	Other miscellaneous services		4		6		8		6		24		(2	)

	31	Total regulated electricity		415		520		671		429		2,035		57

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		89		110		91		111		401		9

	33	Total operating electric revenues	$	504	$	630	$	762	$	540	$	2,436	$	66


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,410		2,722		4,028		2,368		11,528		381
	35	Business		3,051		3,602		3,937		3,236		13,826		410

	36	Total retail		5,461		6,324		7,965		5,604		25,354		791
		Wholesale electricity delivered
	37	Traditional contracts		138		195		210		167		710		210
	38	Off-system sales		—		—		—		—		—		—
	39	Retail load hedge management		169		731		943		889		2,732		1,639

	40	Total regulated electricity		5,768		7,250		9,118		6,660		28,796		2,640

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		5,696		7,143		8,995		8,348		30,182		1,380

	42	Total electric sales		11,464		14,393		18,113		15,008		58,978		4,020



See Glossary of Terms.		Page 15 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


																		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)

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

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


		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)	$	12		$	22		$	13		$	16		$	63		$	(2	)
	49	Mark-to-market reversals on realized sales (b)		1			(4	)		(3	)		—			(6	)		—
	50	Change in mark-to-market value of forward sales		8			4			5			6			23			35

	51	Total gross margin	$	21		$	22		$	15		$	22		$	80		$	33


		By Pinnacle West Entity

	52	Parent company marketing and trading division	$	12		$	11		$	9		$	12		$	44		$	49
	53	APS		(5	)		—			2			(2	)		(5	)		(13	)
	54	Pinnacle West Energy		10			7			—			10			27			19
	55	APS Energy Services		4			4			4			2			14			(22	)

	56	Total gross margin	$	21		$	22		$	15		$	22		$	80		$	33


(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 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 $6 million was transferred to “realized” for the total year 2004. A $6 million realized gain is included in the $63 million on line 48 for the total year 2004.

(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 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


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

		Retail customers
	57	Residential		855,754			852,594			856,353			871,575			859,069			30,703
	58	Business		105,502			106,517			107,583			108,860			107,115			4,019

	59	Total		961,256			959,111			963,936			980,435			966,184			34,722
	60	Wholesale customers		81			82			85			77			81			15

	61	Total customers		961,337			959,193			964,021			980,512			966,265			34,737


	62	Customer growth (% over prior year)		3.4	%		3.8	%		3.9	%		3.9	%		3.7	%		0.4	%

		RETAIL SALES (GWH) — WEATHER NORMALIZED

	63	Residential		2,371			2,762			4,231			2,340			11,704			825
	64	Business		2,998			3,616			4,005			3,252			13,870			467

	65	Total		5,369			6,378			8,236			5,592			25,574			1,292


		RETAIL USAGE (KWh/Average Customer)

	66	Residential		2,816			3,193			4,704			2,717			13,418			(39	)
	67	Business		28,919			33,816			36,595			29,726			129,392			(1,137	)

		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,770			3,240			4,941			2,686			13,624			491
	69	Business		28,422			33,944			37,227			29,871			129,495			(511	)

		ELECTRICITY DEMAND (MW)

	70	System peak demand		3,979			5,632			6,402			4,432			6,402			70



See Glossary of Terms.		Page 17 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


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

		Generation production
	71	Nuclear		2,148			1,860			2,364			1,812			8,184			(131	)
	72	Coal		2,887			3,035			3,417			3,327			12,666			1,300
	73	Gas, oil and other		367			1,339			2,547			1,074			5,327			(764	)

	74	Total generation production		5,402			6,234			8,328			6,213			26,177			405

		Purchased power
	75	Firm load		701			1,532			1,068			1,024			4,325			1,214
	76	Marketing and trading		5,506			7,167			9,301			8,218			30,192			2,443

	77	Total purchased power		6,207			8,699			10,369			9,242			34,517			3,657

	78	Total energy sources		11,609			14,933			18,697			15,455			60,694			4,062


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		88	%		77	%		96	%		74	%		84	%		(3	)%
	80	Coal		77	%		81	%		90	%		88	%		84	%		8	%
	81	Gas, oil and other		5	%		20	%		38	%		12	%		18	%		(10	)%
	82	System average		44	%		50	%		64	%		48	%		51	%		(4	)%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day)
	83	Nuclear		135			233			13			261			161			29
	84	Coal		149			153			63			61			107			(163	)
	85	Gas		49			47			39			34			42			(163	)

	86	Total		333			433			115			356			310			(296	)



See Glossary of Terms.		Page 18 of 31

Last Updated 2/1/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2004


																		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
	87	Palo Verde	$	43.73		$	50.36		$	51.86		$	51.23		$	49.30		$	0.70
	88	SP15	$	48.37		$	54.73		$	57.09		$	60.62		$	55.20		$	3.82
		Off-Peak
	89	Palo Verde	$	33.66		$	33.74		$	33.37		$	38.21		$	34.75		$	2.72
	90	SP15	$	36.90		$	37.32		$	37.18		$	43.07		$	38.62		$	3.96

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		273			1,598			2,471			352			4,694			(205	)
	92	Heating degree-days		552			11			—			422			985			249
	93	Average humidity		39	%		19	%		26	%		45	%		32	%		1	%
		10-Year Averages
	94	Cooling degree-days		80			1,491			2,540			420			4,531			420
	95	Heating degree-days		521			36			—			415			972			415
	96	Average humidity		43	%		24	%		33	%		40	%		35	%		0	%

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b)
	97	Single-family		10,045			13,636			14,111			10,325			48,117			8,466
	98	Multi-family		1,757			1,324			2,149			2,356			7,586			859

	99	Total		11,802			14,960			16,260			12,681			55,703			9,325


		Arizona Job Growth (c)
	100	Payroll job growth (% over prior year)		2.7	%		3.3	%		3.6	%		3.9	%		3.4	%		2.0	%
	101	Unemployment rate (%, seasonally adjusted)		5.2	%		5.1	%		4.9	%		4.6	%		5.0	%		(0.7	)%

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