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

Exhibit 99.3

Last Updated     4/25/2007

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								$	4		$	10
2	Pinnacle West Energy		—									—			—
3	APS Energy Services		1									1			—
4	SunCor		8									8			(13	)
5	El Dorado		(2	)								(2	)		(1	)
6	Parent Company		5									5			8
												—
7	Income From Continuing Operations		16			—		—		—		16			4
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—									—			—
9	SunCor		1									1			—
10	NAC		—									—			—
11	Total		1			—		—		—		1			—
12	Net Income	$	17		$	—	$	—	$	—	$	17		$	4
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	0.04								$	0.04		$	0.10
14	Pinnacle West Energy		—									—			—
15	APS Energy Services		0.01									0.01			—
16	SunCor		0.09									0.09			(0.12	)
17	El Dorado		(0.02	)								(0.02	)		(0.01	)
18	Parent Company		0.04									0.04			0.07
19	Income From Continuing Operations		0.16			—		—		—		0.16			0.04
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—									—			—
21	SunCor		—									—			(0.01	)
22	NAC		—									—			—
23	Total		—			—		—		—		—			(0.01	)
24	Net Income	$	0.16		$	—	$	—	$	—	$	0.16		$	0.03
25	BOOK VALUE PER SHARE	$	34.45	*							$	34.45	*		2.08
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,622												1,173
27	End of Period		100,115												928
	* Estimate

See Glossary of Terms. Page 8 of 31

Last Updated     4/25/2007

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							$	246	$	44
29	Business		264								264		31
30	Total retail		510		—		—		—		510		75
	Wholesale revenue on delivered electricity
31	Traditional contracts		5								5		(1	)
32	Off-system sales		7								7		(5	)
33	Transmission for others		7								7		1
34	Other miscellaneous services		7								7		—
35	Total regulated operating electricity revenues		536		—		—		—		536		70
	MARKETING AND TRADING
36	Electricity and other commodity sales		72								72		(13	)
37	Total operating electric revenues	$	608	$	—	$	—	$	—	$	608	$	57
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		2,734								2,734		315
39	Business		3,285								3,285		86
40	Total retail		6,019		—		—		—		6,019		401
	Wholesale electricity delivered
41	Traditional contracts		175								175		(40	)
42	Off-system sales		243								243		(429	)
43	Retail load hedge management		117								117		(61	)
44	Total regulated electricity		6,554		—		—		—		6,554		(129	)
	MARKETING AND TRADING
45	Wholesale sales of electricity		2,057								2,057		(1,905	)
46	Total electric sales		8,611		—		—		—		8,611		(2,034	)

See Glossary of Terms. Page 9 of 31

Last Updated     4/25/2007

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

Future Marketing and Trading Mark-to-Market Realization

As of March 31, 2007, Pinnacle West had accumulated net mark-to-market gains of $28 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, $13 million; and 2008, $15 million.

(a)	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 52 and in line 53 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 52 are included in line 53. For example, line 53 shows that a prior-period mark-to-market gain of $8 million was transferred to “realized” for the first quarter of 2007. A $8 million realized gain is included in the $12 million on line 52 for the first quarter of 2007.
(b)	Quarterly amounts do not total to annual amounts because of intra-year mark-to-market eliminations.
(c)	On February 1, 2007, the Parent Company transferred its market based rate tariff and wholesale power sales agreements to a newly-created subsidiary, Pinnacle West Marketing & Trading, which resulted in Pinnacle West no longer being a public utility under the Federal Power Act. As a result, Pinnacle West is no longer subject to FERC jurisdiction in connection with its issuance of securities or its incurrence of long-term debt.

See Glossary of Terms. Page 10 of 31

Last Updated     4/25/2007

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									965,428			34,629
63	Business		118,649									118,649			5,079
64	Total		1,084,077			—		—		—		1,084,077			39,708
65	Wholesale customers		63									63			(12	)
66	Total customers		1,084,140			—		—		—		1,084,140			39,696
67	Customer growth (% over prior year)		3.8	%								3.8	%		(0.7	)%
	RETAIL SALES (GWH) - WEATHER NORMALIZED
68	Residential		2,648									2,648			173
69	Business		3,228									3,228			(20	)
70	Total		5,876			—		—		—		5,876			153
	RETAIL USAGE (KWh/Average Customer)
71	Residential		2,832									2,832			69
72	Business		27,687									27,687			(2,757	)
	RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
73	Residential		2,743									2,743			84
74	Business		27,204									27,204			(1,396	)
	ELECTRICITY DEMAND (MW)
75	System peak demand		4,781									4,781			576

See Glossary of Terms. Page 11 of 31

Last Updated     4/25/2007

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									2,299			579
77	Coal		3,164									3,164			81
78	Gas, oil and other		1,151									1,151			(172	)
79	Total generation production		6,614			—		—		—		6,614			488
	Purchased power
80	Firm load		278									278			(87	)
81	Marketing and trading		2,262									2,262			(2,330	)
82	Total purchased power		2,540			—		—		—		2,540			(2,417	)
83	Total energy sources		9,154			—		—		—		9,154			(1,929	)
	POWER PLANT PERFORMANCE
	Capacity Factors
84	Nuclear		94	%								94	%		23	%
85	Coal		84	%								84	%		1	%
86	Gas, oil and other		16	%								16	%		(2	)%
87	System average		50	%								50	%		4	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
88	Nuclear		57									57			(249	)
89	Coal		203									203			(54	)
90	Gas		267									267			66
91	Total		527			—		—		—		527			(237	)

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 12 of 31

Last Updated     4/25/2007

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								$	54.62		$	0.84
93	SP15	$	60.02								$	60.02		$	1.68
	Off-Peak
94	Palo Verde	$	42.06								$	42.06		$	0.14
95	SP15	$	45.86								$	45.86		$	1.07
	WEATHER INDICATORS
	Actual
96	Cooling degree-days		172									172			129
97	Heating degree-days		589									589			125
98	Average humidity		36	%								36	%		8	%
	10-Year Averages
99	Cooling degree-days		97									97			—
100	Heating degree-days		513									513			—
101	Average humidity		42	%								42	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b) (d)
102	Single-family		4,089									4,089			(1,297	)
103	Multi-family		2,457									2,457			9
104	Total		6,546			—		—		—		6,546			(1,288	)
	Arizona Job Growth (c) (d)
105	Payroll job growth (% over prior year)		4.4	%								4.4	%		(1.8	)%
106	Unemployment rate (%, seasonally adjusted)		4.1	%								4.1	%		0.0	%

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 February 28, 2007 (latest available data).

See Glossary of Terms. Page 13 of 31