Exhibit 99.8
| FOR IMMEDIATE RELEASE | May 9, 2006 | |||
| Media Contact: | Alan Bunnell, (602) 250-3376 | Page 1 of 2 | ||
| Analyst Contact: | Rebecca Hickman, (602) 250-5668 | |||
| Web site: | www.pinnaclewest.com | |||
PINNACLE WEST FIRST QUARTER EARNINGS
LOWER DUE TO HIGHER FUEL COSTS
LOWER DUE TO HIGHER FUEL COSTS
PHOENIX — Pinnacle West Capital Corporation (NYSE: PNW) today reported lower consolidated net income for the quarter ended March 31, 2006, of $12.5 million, or $0.13 per diluted share of common stock. This result compares with net income of $24.4 million, or $0.27 per share, for the comparable quarter a year ago.
Arizona Public Service (APS) reported a net loss of $5.5 million for the first quarter of 2006, compared with net income of $27.0 million for the same period a year ago. Whereas, SunCor Development Co., Pinnacle West’s real estate subsidiary, delivered solid performance, reporting net income of $22.0 million, compared with $9.4 million in the 2005 first quarter.
“APS’ first quarter sales growth was strong, increasing 4 percent in 2006. But the associated revenue growth was more than offset by high natural gas and purchased power prices,” said Chairman Bill Post. “The power supply adjustor approved by the Arizona Corporation Commission (ACC) last week allows us to begin collecting a significant portion of our fuel cost increases on a timely basis.
“And, the ACC’s order will improve APS’ cash flow, which is essential to maintaining its financial integrity and investment grade credit ratings so as to allow us to continue supporting Arizona’s growth in the most cost-effective manner for our customers.”
For more information on Pinnacle West’s operating statistics and earnings, please visitwww.pinnaclewest.com/financials.
Pinnacle West is a Phoenix-based company with consolidated assets of about $11 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. It also develops residential, commercial and industrial real estate projects.
| PINNACLE WEST FIRST QUARTER EARNINGS | May 9, 2006 | |
| Page 2 of 2 |
Conference Call
Pinnacle West invites interested parties to listen to the live web cast of management’s conference call to discuss the Company’s 2006 first quarter earnings and recent developments at 1:00 p.m. (ET), today, Tuesday, May 9, 2006. The web cast can be accessed atwww.pinnaclewest.com/presentations and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 8073391. A replay of the call also will be available until 11:55 p.m. (ET), Tuesday, May 16, 2006, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering the same reservation number as above.
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PINNACLE WEST CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited)
(in thousands, except per share amounts)
| THREE MONTHS ENDED | ||||||||
| MARCH 31, | ||||||||
| 2006 | 2005 | |||||||
Operating Revenues | ||||||||
| Regulated electricity segment | $ | 466,126 | $ | 416,030 | ||||
| Marketing and trading segment | 85,002 | 89,257 | ||||||
| Real estate segment | 107,854 | 69,936 | ||||||
| Other revenues | 11,224 | 10,135 | ||||||
| Total | 670,206 | 585,358 | ||||||
Operating Expenses | ||||||||
| Regulated electricity segment fuel and purchased power | 157,395 | 78,423 | ||||||
| Marketing and trading segment fuel and purchased power | 74,175 | 70,809 | ||||||
| Operations and maintenance | 178,427 | 155,084 | ||||||
| Real estate segment operations | 71,330 | 55,334 | ||||||
| Depreciation and amortization | 87,621 | 90,944 | ||||||
| Taxes other than income taxes | 35,573 | 34,565 | ||||||
| Other expenses | 8,522 | 8,374 | ||||||
| Total | 613,043 | 493,533 | ||||||
Operating Income | 57,163 | 91,825 | ||||||
Other | ||||||||
| Allowance for equity funds used during construction | 3,801 | 2,603 | ||||||
| Other income | 5,467 | 1,726 | ||||||
| Other expense | (4,541 | ) | (5,309 | ) | ||||
| Total | 4,727 | (980 | ) | |||||
Interest Expense | ||||||||
| Interest charges | 47,526 | 45,965 | ||||||
| Capitalized interest | (4,024 | ) | (3,289 | ) | ||||
| Total | 43,502 | 42,676 | ||||||
Income From Continuing Operations Before Income Taxes | 18,388 | 48,169 | ||||||
Income Taxes | 6,793 | 18,570 | ||||||
Income From Continuing Operations | 11,595 | 29,599 | ||||||
Income (Loss) From Discontinued Operations | ||||||||
Net of Income Taxes | 860 | (5,151 | ) | |||||
Net Income | $ | 12,455 | $ | 24,448 | ||||
Weighted-Average Common Shares Outstanding — Basic | 99,115 | 91,962 | ||||||
Weighted-Average Common Shares Outstanding — Diluted | 99,449 | 92,045 | ||||||
Earnings Per Weighted-Average Common Share Outstanding | ||||||||
| Income From Continuing Operations — Basic | $ | 0.12 | $ | 0.32 | ||||
| Net Income — Basic | $ | 0.13 | $ | 0.27 | ||||
| Income From Continuing Operations — Diluted | $ | 0.12 | $ | 0.32 | ||||
| Net Income — Diluted | $ | 0.13 | $ | 0.27 | ||||
Certain prior year amounts have been reclassified to conform to the 2006 presentation.