Filed Pursuant to Rule 433
Registration No. 333-134206
July 31, 2006
PRICING TERM SHEETS
6.250% Notes due 2016
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| Issuer: | | Arizona Public Service Company |
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| Security: | | 6.250% Notes due 2016 |
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| Size: | | $250,000,000 |
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| Maturity Date: | | August 1, 2016 |
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| Coupon: | | 6.250% |
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| Interest Payment Dates: | | February 1 and August 1, commencing February 1, 2007 |
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| Price to Public: | | 99.458% |
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| Spread to Benchmark Treasury: | | +133 bp |
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| Benchmark Treasury: | | 5.125% due May 15, 2016 |
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| Benchmark Treasury Yield: | | 4.994% |
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| Make-Whole Call: | | T+25 bp |
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| Expected Settlement Date: | | August 3, 2006 |
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| CUSIP: | | 040555 CJ 1 |
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| Anticipated Ratings: | | Baa2 (Outlook Negative) by Moody’s Investors Service, Inc. |
| | | BBB- (Outlook Stable) by Standard & Poor’s Ratings Services |
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| Joint Book-Running Managers: | | Citigroup Global Markets Inc. |
| | | J.P. Morgan Securities Inc. |
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| Co-Managers: | | Barclays Capital Inc. |
| | | Credit Suisse Securities (USA) LLC |
| | | KeyBanc Capital Markets, a division of McDonald Investments, Inc. |
| | | Lehman Brothers Inc. |
| | | Wells Fargo Securities, LLC |
6.875% Notes due 2036
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| Issuer: | | Arizona Public Service Company |
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| Security: | | 6.875% Notes due 2036 |
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| Size: | | $150,000,000 |
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| Maturity Date: | | August 1, 2036 |
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| Coupon: | | 6.875% |
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| Interest Payment Dates: | | February 1 and August 1, commencing February 1, 2007 |
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| Price to Public: | | 99.849% |
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| Spread to Benchmark Treasury: | | +175 bp |
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| Benchmark Treasury: | | 5.375% due February 15, 2031 |
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| Benchmark Treasury Yield: | | 5.137% |
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| Make-Whole Call: | | T+30 bp |
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| Expected Settlement Date: | | August 3, 2006 |
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| CUSIP: | | 040555 CK 8 |
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| Anticipated Ratings: | | Baa2 (Outlook Negative) by Moody’s Investors Service, Inc. |
| | | BBB- (Outlook Stable) by Standard & Poor’s Ratings Services |
| | | |
| Joint Book-Running Managers: | | Citigroup Global Markets Inc. |
| | | J.P. Morgan Securities Inc. |
| | | |
| Co-Managers: | | Barclays Capital Inc. |
| | | Credit Suisse Securities (USA) LLC |
| | | KeyBanc Capital Markets, a division of McDonald Investments, Inc. |
| | | Lehman Brothers Inc. |
| | | Wells Fargo Securities, LLC |
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time.
The issuer has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering.
You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling Citigroup Global Markets Inc. toll free at 1-877-858-5407 or J.P. Morgan Securities Inc. collect at (212) 834-4533.
