Pinnacle West Capital 8K Results of Operations and Financial Condition | PNW 30 Jan 07

Exhibit 99.3

Last Updated 1/30/2007

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	)	$	94	$	169		$	13		$	270		$	100
2	Pinnacle West Energy		—			—		—			—			—			85
3	APS Energy Services		1			—		(2	)		(2	)		(3	)		3
4	SunCor		21			8		17			3			50			11
5	El Dorado		(1	)		—		—			(1	)		(3	)		(1	)
6	Parent Company		(3	)		9		—			(3	)		3			(104	)


7	Income From Continuing Operations		12			111		184			10			317			94
8	Income (Loss) From Discontinued Operations — Net of Tax		—			1		—			8			10			57
9	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			—

10	Net Income	$	12		$	112	$	184		$	18		$	327		$	151


	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED

11	Arizona Public Service	$	(0.06	)	$	0.95	$	1.69		$	0.13		$	2.70		$	0.93
12	Pinnacle West Energy		—			—		—			—			—			0.89
13	APS Energy Services		0.01			—		(0.02	)		(0.02	)		(0.03	)		0.03
14	SunCor		0.21			0.08		0.17			0.03			0.50			0.10
15	El Dorado		(0.01	)		—		—			(0.01	)		(0.03	)		(0.01	)
16	Parent Company		(0.03	)		0.08		—			(0.03	)		0.03			(1.08	)

17	Income From Continuing Operations		0.12			1.11		1.84			0.10			3.17			0.86
18	Income (Loss) From Discontinued Operations — Net of Tax		0.01			0.02		—			0.08			0.10			0.59
19	Cumulative Effect of Change in Accounting — Net of Tax		—			—		—			—			—			—

20	Net Income	$	0.13		$	1.13	$	1.84		$	0.18		$	3.27		$	1.45


21	BOOK VALUE PER SHARE	$	32.37		$	33.08	$	34.07		$	33.66	*	$	33.66	*		(0.92	)

	COMMON SHARES OUTSTANDING (Thousands)
22	Average — Diluted		99,449			99,640		99,973			100,474			100,010			3,420
23	End of Period		99,187			99,284		99,648			99,959			99,959			902


*		Estimate

See Glossary of Terms.

Page 8 of 31

Last Updated 1/30/2007

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	$	337	$	490	$	242		$	1,271	$	192
25	Business		233		333		371		302			1,239		198

26	Total retail		435		670		861		544			2,510		390
	Wholesale revenue on delivered electricity
27	Traditional contracts		6		7		12		(3	)		22		(1	)
28	Off-system sales		12		22		—		12			46		6
29	Transmission for others		6		6		7		7			26		—
30	Other miscellaneous services		7		8		7		9			31		3

31	Total regulated operating electricity revenues		466		713		887		569			2,635		398

	MARKETING AND TRADING
32	Electricity and other commodity sales		85		90		85		71			331		(21	)

33	Total operating electric revenues	$	551	$	803	$	972	$	640		$	2,966	$	377


	ELECTRIC SALES (GWH)

	REGULATED ELECTRICITY SEGMENT
	Retail sales
34	Residential		2,419		3,284		4,720		2,571			12,994		771
35	Business		3,199		3,971		4,222		3,585			14,977		723

36	Total retail		5,618		7,255		8,942		6,156			27,971		1,494
	Wholesale electricity delivered
37	Traditional contracts		215		181		321		167			884		34
38	Off-system sales		927		270		300		497			1,994		658
39	Retail load hedge management		90		515		622		347			1,574		(1,436	)

40	Total regulated electricity		6,850		8,221		10,185		7,167			32,423		750

	MARKETING AND TRADING
41	Wholesale sales of electricity		3,891		3,862		4,841		3,688			16,282		(7,290	)

42	Total electric sales		10,741		12,083		15,026		10,855			48,705		(6,540	)

See Glossary of Terms.

Page 9 of 31

Last Updated 1/30/2007

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		$	169		$	175			209		$	173		$	173
44	Deferred fuel and purchased power costs — current period		13			78			134			19			244			73
45	Interest on deferred fuel		1			3			2			2			8			6
46	Amounts recovered through revenues		(18	)		(75	)		(102	)		(70	)		(265	)		(265	)

47	Deferred fuel and purchased power regulatory asset — ending balance	$	169		$	175		$	209		$	160		$	160		$	(13	)


	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)

	Realized and Mark-To-Market Components
48	Electricity and other commodity sales, realized (a)	$	11		$	17		$	8		$	18		$	55		$	—
49	Mark-to-market reversals on realized sales (a) (b)		(1	)		(1	)		(1	)		(6	)		(14	)		2
50	Change in mark-to-market value of forward sales		1			—			(3	)		(3	)		—			(20	)

51	Total gross margin	$	11		$	16		$	4		$	9		$	41		$	(18	)


	By Pinnacle West Entity

52	Parent company marketing and trading division	$	(2	)	$	11		$	5		$	3		$	18		$	(41	)
53	APS		10			2			(3	)		5			14			20
54	Pinnacle West Energy		—			—			—			—			—			(5	)
55	APS Energy Services		3			3			2			1			9			8

56	Total gross margin	$	11		$	16		$	4		$	9		$	41		$	(18	)

Future Marketing and Trading Mark-to-Market Realization

As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 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: 2007, $16 million; and 2008, $14 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 $6 million was transferred to “realized” for the fourth quarter of 2006. A $6 million realized gain is included in the $18 million on line 48 for the fourth 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 1/30/2007

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			930,402			935,523			949,132			936,464			39,992
58	Business		113,570			114,803			116,009			117,342			115,431			4,263

59	Total		1,044,369			1,045,205			1,051,532			1,066,474			1,051,895			44,255
60	Wholesale customers		75			76			76			80			77			(1	)

61	Total customers		1,044,444			1,045,281			1,051,608			1,066,554			1,051,972			44,254


62	Customer growth (% over prior year)		4.5	%		4.6	%		4.4	%		4.1	%		4.4	%		0.1	%

	RETAIL SALES (GWH) - WEATHER NORMALIZED

63	Residential		2,514			3,105			4,776			2,619			13,014			734
64	Business		3,252			3,926			4,232			3,598			15,008			722

65	Total		5,766			7,031			9,008			6,217			28,022			1,456


	RETAIL USAGE (KWh/Average Customer)

66	Residential		2,763			3,530			5,045			2,709			13,876			241
67	Business		30,444			34,590			36,394			30,552			129,749			1,235

	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)

68	Residential		2,700			3,337			5,105			2,759			13,897			199
69	Business		28,636			34,194			36,477			30,667			130,017			1,510

	ELECTRICITY DEMAND (MW)

70	System peak demand		4,205			6,624			7,652			5,316			7,652			652

See Glossary of Terms.

Page 11 of 31

Last Updated 1/30/2007

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			1,198			2,202			1,868			6,988			(521	)
72	Coal		3,083			3,182			3,574			3,337			13,176			116
73	Gas, oil and other		1,323			2,000			2,433			1,628			7,384			(1,051	)

74	Total generation production		6,126			6,380			8,209			6,833			27,548			(1,456	)

	Purchased power
75	Firm load		365			1,740			1,962			223			4,290			816
76	Marketing and trading		4,759			4,546			5,607			4,328			19,240			(6,473	)

77	Total purchased power		5,124			6,286			7,569			4,551			23,530			(5,657	)

78	Total energy sources		11,250			12,666			15,778			11,384			51,078			(7,113	)


	POWER PLANT PERFORMANCE

	Capacity Factors
79	Nuclear		71	%		49	%		88	%		75	%		71	%		(6	)%
80	Coal		83	%		84	%		94	%		87	%		87	%		0	%
81	Gas, oil and other		18	%		28	%		34	%		22	%		25	%		(3	)%
82	System average		46	%		48	%		61	%		50	%		51	%		(2	)%

	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
83	Nuclear		306			553			97			267			153			39
84	Coal		257			184			62			155			82			9
85	Gas		201			117			109			286			89			(4	)

86	Total		764			854			268			708			324			44


(a)		Includes planned and unplanned outages

See Glossary of Terms.

Page 12 of 31

Last Updated 1/30/2007

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		$	54.63		$	65.89		$	52.72		$	56.76		$	(9.64	)
88	SP15	$	58.34		$	55.39		$	71.89		$	62.16		$	61.95		$	(10.99	)
	Off-Peak
89	Palo Verde	$	41.92		$	28.38		$	38.45		$	39.62		$	37.09		$	(10.46	)
90	SP15	$	44.79		$	27.43		$	43.94		$	46.27		$	40.61		$	(11.45	)

	WEATHER INDICATORS

	Actual
91	Cooling degree-days		43			1,740			2,455			457			4,695			32
92	Heating degree-days		464			4			—			383			851			85
93	Average humidity		28	%		18	%		33	%		33	%		28	%		(6	)%
	10-Year Averages
94	Cooling degree-days		99			1,547			2,541			437			4,624			—
95	Heating degree-days		514			31			—			386			931			—
96	Average humidity		41	%		23	%		33	%		39	%		34	%		0	%

	ECONOMIC INDICATORS

	Building Permits — Metro Phoenix (b) (d)
97	Single-family		8,716			8,883			5,969			2,910			26,478			(13,620	)
98	Multi-family		2,887			2,976			3,215			783			9,861			2,732

99	Total		11,603			11,859			9,184			3,693			36,339			(10,888	)


	Arizona Job Growth (c) (d)
100	Payroll job growth (% over prior year)		5.6	%		4.8	%		4.8	%		4.6	%		5.0	%		(0.3	)%
101	Unemployment rate (%, seasonally adjusted)		4.4	%		4.3	%		4.0	%		4.0	%		4.2	%		(0.5	)%


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 November 30, 2006.

See Glossary of Terms.

Page 13 of 31

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