Arizona Public Service 8-K Results of Operations and Financial Condition

Exhibit 99.3

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	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	$	4		$	75		$	204		$	—		$	284		$	14
2	Pinnacle West Energy		—			—			—			—			—			—
3	APS Energy Services		1			(1	)		2			(2	)		—			3
4	SunCor		8			—			(2	)		5			12			(38	)
5	El Dorado		(2	)		—			(3	)		(1	)		(6	)		(3	)
6	Parent Company		5			5			—			1			9			6
7	Income From Continuing Operations		16			79			201			3			299			(18	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—			—			—			—			(1	)
9	SunCor		1			—			8			3			11			1
10	Other		—			—			—			(3	)		(3	)		(2	)
11	Total		1			—			8			—			8			(2	)
12	Net Income	$	17		$	79		$	209		$	3		$	307		$	(20	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	0.04		$	0.75		$	2.03		$	—		$	2.82		$	0.12
14	Pinnacle West Energy		—			—			—			—			—			—
15	APS Energy Services		0.01			(0.01	)		0.01			(0.02	)		(0.01	)		0.02
16	SunCor		0.09			—			(0.02	)		0.05			0.12			(0.38	)
17	El Dorado		(0.02	)	��	—			(0.03	)		(0.01	)		(0.06	)		(0.03	)
18	Parent Company		0.04			0.04			—			0.01			0.09			0.06
19	Income From Continuing Operations		0.16			0.78			1.99			0.03			2.96			(0.21	)
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—			—			—			—			—
21	SunCor		—			—			0.08			0.03			0.11			0.01
22	Other		—			—			—			(0.03	)		(0.02	)		(0.02	)
23	Total		—			—			0.08			—			0.09			(0.01	)
24	Net Income	$	0.16		$	0.78		$	2.07		$	0.03		$	3.05		$	(0.22	)
25	BOOK VALUE PER SHARE	$	34.45		$	34.13		$	35.55		$	35.09	*	$	35.09	*		0.61
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,622			100,779			100,829			100,963			100,835			825
27	End of Period		100,115			100,290			100,367			100,486			100,486			838

* Estimate

See Glossary of Terms. Page 8 of 31

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

												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	$	246	$	335	$	574	$	263	$	1,418	$	147
29	Business		264		342		425		323		1,354		115
30	Total retail		510		677		999		586		2,772		262
	Wholesale revenue on delivered electricity
31	Traditional contracts		5		9		12		7		33		11
32	Off-system sales		7		10		16		17		50		4
33	Transmission for others		7		7		8		7		29		3
34	Other miscellaneous services		7		8		9		10		34		3
35	Total regulated operating electricity revenues		536		711		1,044		627		2,918		283
	MARKETING AND TRADING
36	Electricity and other commodity sales		72		93		99		78		343		12
37	Total operating electric revenues	$	608	$	804	$	1,143	$	705	$	3,261	$	295
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,734		3,287		5,084		2,667		13,772		778
39	Business		3,285		4,004		4,426		3,685		15,400		424
40	Total retail		6,019		7,291		9,510		6,352		29,172		1,202
	Wholesale electricity delivered
41	Traditional contracts		175		262		296		190		923		40
42	Off-system sales		243		310		478		448		1,479		(134	)
43	Retail load hedge management		117		254		529		125		1,025		(565	)
44	Total regulated electricity		6,554		8,117		10,813		7,115		32,599		543
	MARKETING AND TRADING
45	Wholesale sales of electricity		2,057		2,606		3,623		2,334		10,620		(5,735	)
46	Total electric sales		8,611		10,723		14,436		9,449		43,219		(5,192	)

See Glossary of Terms. Page 9 of 31

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																	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	$	160		$	118		$	137		$	150		$	160			(13	)
48	Deferred fuel and purchased power costs — current period		25			104			69			(9	)		189			(55	)
49	Regulatory disallowance		—			(14	)		—			—			(14	)		(14	)
50	Interest on deferred fuel		2			1			2			2			7			(1	)
51	Amounts recovered through revenues		(69	)		(72	)		(58	)		(32	)		(231	)		34
52	Deferred fuel and purchased power regulatory asset — ending balance	$	118		$	137		$	150		$	111		$	111		$	(49	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	12		$	22		$	6		$	11		$	54		$	—
54	Mark-to-market reversals on realized sales (a) (b)		(8	)		1			(3	)		(3	)		(7	)		7
55	Change in mark-to-market value of forward sales		10			(6	)		2			2			1			1
56	Total gross margin	$	14		$	17		$	5		$	10		$	48		$	8
	By Pinnacle West Entity
57	APS	$	(1	)	$	7		$	—		$	—		$	7		$	(7	)
58	Pinnacle West		10			9			1			9			31			14
59	APS Energy Services		5			1			4			1			10			1
60	Pinnacle West Energy		—			—			—			—			—			—
61	Total gross margin	$	14		$	17		$	5		$	10		$	48		$	8

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $9 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: 2008, $2 million; and thereafter, $7million.

(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 $7 million was transferred to “realized” for the total year of 2007. A $7 million realized gain is included in the $54 million on line 53 for the total year of 2007.

(b)

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

See Glossary of Terms. Page 10 of 31

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		AVERAGE ELECTRIC CUSTOMERS
		Retail customers
	62	Residential		965,428			962,095			963,874			972,654			966,013			29,549
	63	Business		118,649			119,792			120,918			121,898			120,314			4,883
	64	Total		1,084,077			1,081,887			1,084,792			1,094,552			1,086,327			34,432
	65	Wholesale customers		63			62			61			56			61			(16	)
	66	Total customers		1,084,140			1,081,949			1,084,853			1,094,608			1,086,388			34,416
	67	Customer growth (% over prior year)		3.8	%		3.5	%		3.2	%		2.6	%		3.3	%		(1.1	)%
		RETAIL SALES (GWH) - WEATHER NORMALIZED
	68	Residential		2,648			3,214			4,805			2,702			13,369			365
	69	Business		3,228			3,977			4,371			3,660			15,236			220
	70	Total		5,876			7,191			9,176			6,362			28,605			585
		RETAIL USAGE (KWh/Average Customer)
	71	Residential		2,832			3,417			5,275			2,742			14,257			381
	72	Business		27,687			33,425			36,601			30,230			127,998			(1,751	)
		RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
	73	Residential		2,743			3,340			4,985			2,778			13,839			(47	)
	74	Business		27,204			33,202			36,152			30,027			126,644			(3,438	)
		ELECTRICITY DEMAND (MW)
	75	System peak demand		4,781			6,982			7,545			5,376			7,545			(107	)

See Glossary of Terms. Page 11 of 31

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																		Increase
																		(Decrease)
Line			1st Qtr			2nd Qtr			3rd Qtr			4th Qtr			Year-To-Date			vs Prior YTD
		ENERGY SOURCES (GWH)
		Generation production
	76	Nuclear		2,299			1,846			2,218			1,430			7,793			805
	77	Coal		3,164			3,265			3,563			3,350			13,342			166
	78	Gas, oil and other		1,151			1,517			2,479			1,553			6,700			(684	)
	79	Total generation production		6,614			6,628			8,260			6,333			27,835			287
		Purchased power
	80	Firm load		278			1,676			2,521			913			5,388			1,098
	81	Marketing and trading		2,262			3,055			4,469			2,730			12,516			(6,352	)
	82	Total purchased power		2,540			4,731			6,990			3,643			17,904			(5,254	)
	83	Total energy sources		9,154			11,359			15,250			9,976			45,739			(4,967	)
		POWER PLANT PERFORMANCE
		Capacity Factors
	84	Nuclear		94	%		75	%		89	%		57	%		79	%		8	%
	85	Coal		84	%		86	%		93	%		87	%		87	%		0	%
	86	Gas, oil and other		16	%		21	%		34	%		21	%		23	%		(2	)%
	87	System average		50	%		49	%		61	%		47	%		52	%		1	%
		Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a)
	88	Nuclear		57			266			22			470			204			51
	89	Coal		203			189			79			164			158			76
	90	Gas		267			405			147			264			271			182
	91	Total		527			860			248			898			633			309

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 12 of 31

Last Updated 1/30/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2007

																		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	$	54.62		$	64.64		$	69.26		$	57.18		$	61.43		$	4.67
	93	SP15	$	60.02		$	68.75		$	68.84		$	68.13		$	66.44		$	4.49
		Off-Peak
	94	Palo Verde	$	42.06		$	41.46		$	37.03		$	44.39		$	41.24		$	4.15
	95	SP15	$	45.86		$	46.14		$	41.23		$	50.71		$	45.99		$	5.38
		WEATHER INDICATORS
		Actual
	96	Cooling degree-days		172			1,708			2,686			595			5,161			466
	97	Heating degree-days		589			8			—			398			995			144
	98	Average humidity		36	%		18	%		30	%		30	%		30	%		2	%
		10-Year Averages
	99	Cooling degree-days		97			1,557			2,544			441			4,640			—
	100	Heating degree-days		513			31			—			296			840			—
	101	Average humidity		42	%		22	%		32	%		38	%		33	%		0	%
		ECONOMIC INDICATORS
		Building Permits — Metro Phoenix (b) (d)
	102	Single-family		7,017			7,447			4,827			1,877			21,168			(5,339	)
	103	Multi-family		4,131			3,573			2,687			2,436			12,833			2,938
	104	Total		11,148			11,020			7,514			4,313			34,001			(2,401	)
		Arizona Job Growth (c) (d)
	105	Payroll job growth (% over prior year)		4.1	%		3.3	%		2.6	%		1.6	%		3.0	%		(2.4	)%
	106	Unemployment rate (%, seasonally adjusted)		4.0	%		3.7	%		3.6	%		3.8	%		3.8	%		(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 periods ended November 30, 2007 (latest available data).

See Glossary of Terms. Page 13 of 31