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

Exhibit 99.2

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	169		$	61		$	108		$	257		$	152		$	105
2	Pinnacle West Energy		—			(71	)		71			—			(80	)		80
3	APS Energy Services		(2	)		—			(2	)		(1	)		(3	)		2
4	SunCor		17			7			10			47			26			21
5	El Dorado		—			—			—			(2	)		(1	)		(1	)
6	Parent Company		—			88			(88	)		6			105			(99	)
7	Income From Continuing Operations		184			85			99			307			199			108
8	Income (Loss) From Discontinued Operations — Net of Tax		—			19			(19	)		2			(44	)		46
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
10	Net Income	$	184		$	104		$	80		$	309		$	155		$	154
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
11	Arizona Public Service	$	1.69		$	0.62		$	1.07		$	2.57		$	1.59		$	0.98
12	Pinnacle West Energy		—			(0.72	)		0.72			—			(0.83	)		0.83
13	APS Energy Services		(0.02	)		—			(0.02	)		(0.01	)		(0.03	)		0.02
14	SunCor		0.17			0.07			0.10			0.47			0.27			0.20
15	El Dorado		—			(0.01	)		0.01			(0.02	)		(0.01	)		(0.01	)
16	Parent Company		—			0.90			(0.90	)		0.06			1.09			(1.03	)
17	Income From Continuing Operations		1.84			0.86			0.98			3.07			2.08			0.99
18	Income (Loss) From Discontinued Operations — Net of Tax		—			0.19			(0.19	)		0.03			(0.46	)		0.49
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—			—			—			—			—
20	Net Income	$	1.84		$	1.05		$	0.79		$	3.10		$	1.62		$	1.48
21	BOOK VALUE PER SHARE	$	34.07	*	$	35.81		$	(1.74	)	$	34.07	*	$	35.81			(1.74	)
	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,973			98,816			1,157			99,723			95,755			3,968
23	End of Period		99,648			98,881			767			99,648			98,881			767

* Estimate

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Page 2 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September							9 Mo. Ended September
Line		2006		2005		Incr (Decr)			2006		2005		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
24	Residential	$	490	$	414	$	76		$	1,029	$	872	$	157
25	Business		371		308		63			937		798		139
26	Total retail		861		722		139			1,966		1,670		296
	Wholesale revenue on delivered electricity
27	Traditional contracts		12		9		3			25		17		8
28	Off-system sales		—		8		(8	)		34		20		14
29	Transmission for others		7		7		—			19		21		(2	)
30	Other miscellaneous services		7		7		—			22		21		1
31	Total regulated operating electricity revenues		887		753		134			2,066		1,749		317
	MARKETING AND TRADING SEGMENT
32	Electricity and other commodity sales		85		107		(22	)		259		267		(8	)
33	Total operating electric revenues	$	972	$	860	$	112		$	2,325	$	2,016	$	309
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		4,720		4,449		271			10,423		9,705		718
35	Business		4,222		4,100		122			11,392		10,826		566
36	Total retail		8,942		8,549		393			21,815		20,531		1,284
	Wholesale electricity delivered
37	Traditional contracts		321		269		52			717		624		93
38	Off-system sales		300		212		88			1,497		810		687
39	Retail load hedge management		622		1,026		(404	)		1,227		2,478		(1,251	)
40	Total regulated electricity		10,185		10,056		129			25,256		24,443		813
	MARKETING AND TRADING SEGMENT
41	Wholesale sales of electricity		4,841		7,263		(2,422	)		12,594		18,332		(5,738	)
42	Total electric sales		15,026		17,319		(2,293	)		37,850		42,775		(4,925	)

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Page 3 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
43	Deferred fuel and purchased power regulatory asset - - beginning balance	$	175		$	38		$	137		$	173		$	—		$	173
44	Deferred fuel and purchased power costs — current period		134			104			30			225			142			83
45	Interest on deferred fuel		2			1			1			6			1			5
46	Amounts recovered through revenues		(102	)		—			(102	)		(195	)		—			(195	)
47	Deferred fuel and purchased power regulatory asset - - ending balance	$	209		$	143		$	66		$	209		$	143		$	66
	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)	$	8		$	3		$	5		$	36		$	33		$	3
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		3			(4	)		(3	)		(5	)		2
50	Change in mark-to-market value of forward sales		(3	)		14			(17	)		(2	)		24			(26	)
51	Total gross margin	$	4		$	20		$	(16	)	$	31		$	52		$	(21	)
	By Pinnacle West Entity
52	Parent company marketing and trading division	$	5		$	26		$	(21	)	$	15		$	53		$	(38	)
53	APS		(3	)		(8	)		5			8			(9	)		17
54	Pinnacle West Energy		—			—			—			—			5			(5	)
55	APS Energy Services		2			2			—			8			3			5
56	Total gross margin	$	4		$	20		$	(16	)	$	31		$	52		$	(21	)

Future Marketing and Trading Mark-to-Market Realization

As of September 30, 2006, Pinnacle West had accumulated net mark-to-market gains of $40 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, $8 million; 2007, $17 million; and 2008, $15 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 third quarter of 2006. A $1 million realized gain is included in the $8 million on line 48 for the third quarter of 2006.

(b)

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

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Page 4 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
57	Residential		935,523			895,789			39,734			932,241			891,422			40,819
58	Business		116,009			111,648			4,361			114,794			110,700			4,094
59	Total		1,051,532			1,007,437			44,095			1,047,035			1,002,122			44,913
60	Wholesale customers		76			78			(2	)		76			78			(2	)
61	Total customers		1,051,608			1,007,515			44,093			1,047,111			1,002,200			44,911
62	Customer growth (% over prior year)		4.4	%		4.5	%		(0.1	)%		4.5	%		4.2	%		0.3	%
	RETAIL SALES (GWH) — WEATHER NORMALIZED
63	Residential		4,776			4,421			355			10,395			9,765			630
64	Business		4,232			4,120			112			11,410			10,871			539
65	Total		9,008			8,541			467			21,805			20,636			1,169
	RETAIL USAGE (KWh/Average Customer)
66	Residential		5,045			4,967			78			11,181			10,887			294
67	Business		36,394			36,723			(329	)		99,238			97,795			1,443
	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
68	Residential		5,105			4,935			170			11,151			10,954			197
69	Business		36,477			36,899			(422	)		99,395			98,202			1,193
	ELECTRICITY DEMAND (MW)
70	System peak demand		7,652			7,000			652			7,652			7,000			652

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Page 5 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
71	Nuclear		2,202			2,147			55			5,120			6,013			(893	)
72	Coal		3,574			3,574			—			9,839			9,602			237
73	Gas, oil and other		2,433			3,064			(631	)		5,756			6,321			(565	)
74	Total generation production		8,209			8,785			(576	)		20,715			21,936			(1,221	)
	Purchased power
75	Firm load		1,962			1,589			373			4,067			3,055			1,012
76	Marketing and trading		5,607			7,795			(2,188	)		14,912			19,611			(4,699	)
77	Total purchased power		7,569			9,384			(1,815	)		18,979			22,666			(3,687	)
78	Total energy sources		15,778			18,169			(2,391	)		39,694			44,602			(4,908	)
	POWER PLANT PERFORMANCE
	Capacity Factors
79	Nuclear		88	%		88	%		0	%		69	%		83	%		(14	)%
80	Coal		94	%		95	%		(1	)%		87	%		86	%		1	%
81	Gas, oil and other		34	%		39	%		(5	)%		26	%		29	%		(3	)%
82	System average		61	%		62	%		(1	)%		51	%		54	%		(3	)%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day)(a)
83	Nuclear		97			107			(10	)		119			163			(44	)
84	Coal		62			47			15			62			162			(100	)
85	Gas		109			140			(31	)		53			172			(119	)
86	Total		268			294			(26	)		234			497			(263	)

(a) Includes planned and unplanned outages

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Page 6 of 31

Last Updated 10/27/2006

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended September 30, 2006 and 2005

		3 Mo. Ended September									9 Mo. Ended September
Line		2006			2005			Incr (Decr)			2006			2005			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
87	Palo Verde	$	65.89		$	78.94		$	(13.05	)	$	58.10		$	60.67		$	(2.57	)
88	SP15	$	71.89		$	83.21		$	(11.32	)	$	61.87		$	64.70		$	(2.83	)
	Off-Peak
89	Palo Verde	$	38.45		$	52.35		$	(13.90	)	$	36.25		$	40.81		$	(4.56	)
90	SP15	$	43.94		$	56.08		$	(12.14	)	$	38.82		$	43.92		$	(5.10	)
	WEATHER INDICATORS
	Actual
91	Cooling degree-days		2,455			2,583			(128	)		4,238			4,155			83
92	Heating degree-days		—			—			—			468			458			10
93	Average humidity		33	%		29	%		4	%		26	%		35	%		(9	)%
	10-Year Averages
94	Cooling degree-days		2,541			2,541			—			4,187			4,187			—
95	Heating degree-days		—			—			—			545			545			—
96	Average humidity		33	%		33	%		0	%		32	%		32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
97	Single-family		4,397			8,000			(3,603	)		21,996			30,369			(8,373	)
98	Multi-family		2,031			2,038			(7	)		7,894			5,424			2,470
99	Total		6,428			10,038			(3,610	)		29,890			35,793			(5,903	)
	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		4.7	%		6.1	%		(1.4	)%		5.1	%		5.4	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.2	%		4.8	%		(0.6	)%		4.3	%		4.7	%		(0.4	)%

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 August 31, 2006.

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Page 7 of 31