Pinnacle West Capital 8K Results of Operations and Financial Condition | PNW 9 May 06

Exhibit 99.3

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2006


															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	$	(6	)							$	(6	)	$	(33	)
	2	Pinnacle West Energy		—									—			21
	3	APS Energy Services		1									1			4
	4	SunCor		21									21			12
	5	El Dorado		(1	)								(1	)		—
	6	Parent Company		(3	)								(3	)		(22	)

	7	Income From Continuing Operations		12			—		—		—		12			(18	)
	8	Loss From Discontinued Operations — Net of Tax		—									—			6
	9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—		—		—			—

	10	Net Income	$	12		$	—	$	—	$	—	$	12		$	(12	)


		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

	11	Arizona Public Service	$	(0.06	)							$	(0.06	)	$	(0.36	)
	12	Pinnacle West Energy		—									—			0.23
	13	APS Energy Services		0.01									0.01			0.05
	14	SunCor		0.21									0.21			0.12
	15	El Dorado		(0.01	)								(0.01	)		—
	16	Parent Company		(0.03	)								(0.03	)		(0.24	)

	17	Income From Continuing Operations		0.12			—		—		—		0.12			(0.20	)
	18	Income (Loss) From Discontinued Operations — Net of Tax		0.01									0.01			0.06
	19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—		—		—			—

	20	Net Income	$	0.13		$	—	$	—	$	—	$	0.13		$	(0.14	)


	21	BOOK VALUE PER SHARE	$	32.37	*							$	32.37		$	(0.13	)

		COMMON SHARES OUTSTANDING (Thousands)
	22	Average — Diluted		99,449									99,449			7,404
	23	End of Period		99,187									99,187			7,084


*		Estimate


See Glossary of Terms.		Page 8 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


													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	$	202							$	202	$	12
	25	Business		233								233		24

	26	Total retail		435		—		—		—		435		36
		Wholesale revenue on delivered electricity
	27	Traditional contracts		6								6		3
	28	Off-system sales		12								12		12
	29	Transmission for others		6								6		(1	)
	30	Other miscellaneous services		7								7		—

	31	Total regulated operating electricity revenues		466		—		—		—		466		50

		MARKETING AND TRADING SEGMENT
	32	Electricity and other commodity sales		85								85		(4	)

	33	Total operating electric revenues	$	551	$	—	$	—	$	—	$	551	$	46


		ELECTRIC SALES (GWH)

		REGULATED ELECTRICITY SEGMENT
		Retail sales
	34	Residential		2,419								2,419		52
	35	Business		3,199								3,199		157

	36	Total retail		5,618		—		—		—		5,618		209
		Wholesale electricity delivered
	37	Traditional contracts		215								215		60
	38	Off-system sales		936								936		936
	39	Retail load hedge management		178								178		(572	)

	40	Total regulated electricity		6,947		—		—		—		6,947		633

		MARKETING AND TRADING SEGMENT
	41	Wholesale sales of electricity		3,891								3,891		(2,169	)

	42	Total electric sales		10,838		—		—		—		10,838		(1,536	)


See Glossary of Terms.		Page 9 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


															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	$	173									173		$	173
	44	Deferred fuel and purchased power costs — current period		13									13			13
	45	Interest on deferred fuel		1									1			1
	46	Amounts recovered through revenues		(18	)								(18	)		(18	)

	47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	—	$	—	$	—	$	169		$	169


		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)	$	11								$	11		$	(1	)
	49	Mark-to-market reversals on realized sales (b)		(1	)								(1	)		2
	50	Change in mark-to-market value of forward sales		1									1			(9	)

	51	Total gross margin	$	11		$	—	$	—	$	—	$	11		$	(8	)


		By Pinnacle West Entity

	52	Parent company marketing and trading division	$	(2	)							$	(2	)	$	(23	)
	53	APS		10									10			14
	54	Pinnacle West Energy		—									—			(5	)
	55	APS Energy Services		3									3			6

	56	Total gross margin	$	11		$	—	$	—	$	—	$	11		$	(8	)

Future Marketing and Trading Mark-to-Market Realization

As of March 31, 2006, 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, $11 million; 2007, $21 million; and 2008, $13 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 $1 million was transferred to “realized” for the first quarter of 2006. A $1 million realized gain is included in the $11 million on line 48 for the first quarter of 2006.

(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 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


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

		Retail customers
	57	Residential		930,799									930,799			40,832
	58	Business		113,570									113,570			3,775

	59	Total		1,044,369			—		—		—		1,044,369			44,607
	60	Wholesale customers		75									75			(6	)

	61	Total customers		1,044,444			—		—		—		1,044,444			44,601


	62	Customer growth (% over prior year)		4.5	%								4.5	%		0.5	%

		RETAIL SALES (GWH) — WEATHER NORMALIZED

	63	Residential		2,514									2,514			75
	64	Business		3,252									3,252			194

	65	Total		5,766			—		—		—		5,766			269


		RETAIL USAGE (KWh/Average Customer)

	66	Residential		2,763									2,763			103
	67	Business		30,444									30,444			2,738

		RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)

	68	Residential		2,700									2,700			(41	)
	69	Business		28,636									28,636			776

		ELECTRICITY DEMAND (MW)

	70	System peak demand		4,205									4,205			208


See Glossary of Terms.		Page 11 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


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

		Generation production
	71	Nuclear		1,720									1,720			(527	)
	72	Coal		3,083									3,083			143
	73	Gas, oil and other		1,252									1,252			125

	74	Total generation production		6,055			—		—		—		6,055			(259	)

		Purchased power
	75	Firm load		365									365			(221	)
	76	Marketing and trading		4,669									4,669			(1,163	)

	77	Total purchased power		5,034			—		—		—		5,034			(1,384	)

	78	Total energy sources		11,089			—		—		—		11,089			(1,643	)


		POWER PLANT PERFORMANCE

		Capacity Factors
	79	Nuclear		71	%								71	%		(23	)%
	80	Coal		83	%								83	%		4	%
	81	Gas, oil and other		20	%								20	%		2	%
	82	System average		49	%								49	%		(1	)%

		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	83	Nuclear		306									306			254
	84	Coal		257									257			62
	85	Gas		201									201			(11	)

	86	Total		764			—		—		—		764			305


(a)		Includes planned and unplanned outages


See Glossary of Terms.		Page 12 of 31

Last Updated 5/9/2006

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter

2006


															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	$	53.78								$	53.78		$	4.04
	88	SP15	$	58.34								$	58.34		$	2.64
		Off-Peak
	89	Palo Verde	$	41.92								$	41.92		$	4.88
	90	SP15	$	44.79								$	44.79		$	3.83

		WEATHER INDICATORS

		Actual
	91	Cooling degree-days		43									43			9
	92	Heating degree-days		464									464			7
	93	Average humidity		28	%								28	%		(28	)%
		10-Year Averages
	94	Cooling degree-days		99									99			—
	95	Heating degree-days		514									514			—
	96	Average humidity		41	%								41	%		—

		ECONOMIC INDICATORS

		Building Permits — Metro Phoenix (b) (d)
	97	Single-family		5,376									5,376			(1,094	)
	98	Multi-family		2,448									2,448			1,399

	99	Total		7,824			—		—		—		7,824			305

		Arizona Job Growth (c) (d)
	100	Payroll job growth (% over prior year)		5.6	%								5.6	%		0.8	%
	101	Unemployment rate
		(%, seasonally adjusted)		4.6	%								4.6	%		0.1	%


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 February 28, 2006.


See Glossary of Terms.		Page 13 of 31

Pinnacle West Capital (PNW) 8-KResults of Operations and Financial Condition