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

Exhibit 99.2

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June								6 Mo. Ended June
Line		2007			2006		Incr (Decr)			2007			2006			Incr (Decr)
	EARNINGS CONTRIBUTION BY SUBSIDIARY ($ Millions)
1	Arizona Public Service	$	75		$	94	$	(19	)	$	79		$	88		$	(9	)
2	Pinnacle West Energy		—			—		—			—			—			—
3	APS Energy Services		(1	)		—		(1	)		—			1			(1	)
4	SunCor		—			8		(8	)		8			30			(22	)
5	El Dorado		—			—		—			(2	)		(2	)		—
6	Parent Company		5			9		(4	)		9			5			4
7	Income From Continuing Operations		79			111		(32	)		94			122			(28	)
	Income (Loss) From Discontinued Operations — Net of Tax
8	Silverhawk		—			—		—			—			1			(1	)
9	SunCor		—			1		(1	)		2			2			—
10	NAC		—			—		—			—			—			—
11	Total		—			1		(1	)		2			3			(1	)
12	Net Income	$	79		$	112	$	(33	)	$	96		$	125		$	(29	)
	EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
13	Arizona Public Service	$	0.75		$	0.95	$	(0.20	)	$	0.79		$	0.89		$	(0.10	)
14	Pinnacle West Energy		—			—		—			—			—			—
15	APS Energy Services		(0.01	)		—		(0.01	)		—			0.01			(0.01	)
16	SunCor		—			0.07		(0.07	)		0.08			0.30			(0.22	)
17	El Dorado		—			—		—			(0.02	)		(0.02	)		—
18	Parent Company		0.04			0.09		(0.05	)		0.09			0.05			0.04
19	Income From Continuing Operations		0.78			1.11		(0.33	)		0.94			1.23			(0.29	)
	Income (Loss) From Discontinued Operations — Net of Tax
20	Silverhawk		—			—		—			—			—			—
21	SunCor		—			0.02		(0.02	)		0.01			0.02			(0.01	)
22	NAC		—			—		—			—			—			—
23	Total		—			0.02		(0.02	)		0.01			0.02			(0.01	)
24	Net Income	$	0.78		$	1.13	$	(0.35	)	$	0.95		$	1.25		$	(0.30	)
25	BOOK VALUE PER SHARE	$	34.13	*	$	33.08	$	1.05		$	34.13	*	$	33.08		$	1.05
	COMMON SHARES OUTSTANDING (Thousands)
26	Average — Diluted		100,779			99,640		1,139			100,718			99,562			1,156
27	End of Period		100,290			99,284		1,006			100,290			99,284			1,006

* Estimate

See Glossary of Terms. Page 2 of 31

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June							6 Mo. Ended June
Line		2007		2006		Incr (Decr)			2007		2006		Incr (Decr)
	ELECTRIC OPERATING REVENUES (Dollars in Millions)
	REGULATED ELECTRICITY SEGMENT
	Retail
28	Residential	$	335	$	337	$	(2	)	$	581	$	539	$	42
29	Business		342		333		9			606		566		40
30	Total retail		677		670		7			1,187		1,105		82
	Wholesale revenue on delivered electricity
31	Traditional contracts		9		7		2			14		13		1
32	Off-system sales		10		22		(12	)		17		34		(17	)
33	Transmission for others		7		6		1			14		12		2
34	Other miscellaneous services		8		8		—			15		15		—
35	Total regulated operating electricity revenues		711		713		(2	)		1,247		1,179		68
	MARKETING AND TRADING
36	Electricity and other commodity sales		93		90		3			165		175		(10	)
37	Total operating electric revenues	$	804	$	803	$	1		$	1,412	$	1,354	$	58
	ELECTRIC SALES (GWH)
	REGULATED ELECTRICITY SEGMENT
	Retail sales
38	Residential		3,287		3,284		3			6,021		5,703		318
39	Business		4,004		3,971		33			7,289		7,170		119
40	Total retail		7,291		7,255		36			13,310		12,873		437
	Wholesale electricity delivered
41	Traditional contracts		262		181		81			437		396		41
42	Off-system sales		310		218		92			553		890		(337	)
43	Retail load hedge management		254		622		(368	)		371		800		(429	)
44	Total regulated electricity		8,117		8,276		(159	)		14,671		14,959		(288	)
	MARKETING AND TRADING
45	Wholesale sales of electricity		2,606		3,862		(1,256	)		4,663		7,824		(3,161	)
46	Total electric sales		10,723		12,138		(1,415	)		19,334		22,783		(3,449	)

See Glossary of Terms. Page 3 of 31

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June									6 Mo. Ended June
Line		2007			2006			Incr (Decr)			2007			2006			Incr (Decr)
	POWER SUPPLY ADJUSTOR (“PSA”) — REGULATED ELECTRICITY SEGMENT (Dollars in Millions)
47	Deferred fuel and purchased power regulatory asset — beginning balance	$	118		$	169		$	(51	)	$	160		$	173		$	(13	)
48	Deferred fuel and purchased power costs — current period		104			78			26			129			91			38
49	Regulatory disallowance		(14	)		—			(14	)		(14	)		—			(14	)
50	Interest on deferred fuel		1			3			(2	)		3			4			(1	)
51	Amounts recovered through revenues		(72	)		(75	)		3			(141	)		(93	)		(48	)
52	Deferred fuel and purchased power regulatory asset — ending balance	$	137		$	175		$	(38	)	$	137		$	175		$	(38	)
	MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
	Realized and Mark-To-Market Components
53	Electricity and other commodity sales, realized (a)	$	22		$	17		$	5		$	39		$	29		$	10
54	Mark-to-market reversals on realized sales (a) (b)		1			(1	)		2			(4	)		(3	)		(1	)
55	Change in mark-to-market value of forward sales		(6	)		—			(6	)		(2	)		2			(4	)
56	Total gross margin	$	17		$	16		$	1		$	33		$	28		$	5
	By Pinnacle West Entity
57	APS	$	7		$	2		$	5		$	6		$	10		$	(4	)
58	Pinnacle West Marketing & Trading (c)		—			—			—			2			—			2
59	Parent Company (c)		9			11			(2	)		19			12			7
60	APS Energy Services		1			3			(2	)		6			6			—
61	Pinnacle West Energy		—			—			—			—			—			—
62	Total gross margin	$	17		$	16		$	1		$	33		$	28		$	5

Future Marketing and Trading Mark-to-Market Realization

As of June 30, 2007, Pinnacle West had accumulated net mark-to-market gains of $24 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, $7 million; and 2008, $17 million.

(a)	Net effect on pretax gross margin from realization of prior-period mark-to-market included in line 53 and in line 54 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 53 are included in line 54. For example, line 54 shows that a prior-period mark-to-market loss of $1 million was transferred to “realized” for the second quarter of 2007. A $1 million realized loss is included in the $22 million on line 53 for the second 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 4 of 31

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June									6 Mo. Ended June
Line		2007			2006			Incr (Decr)			2007			2006			Incr (Decr)
	AVERAGE ELECTRIC CUSTOMERS
	Retail customers
63	Residential		962,095			930,402			31,693			963,762			930,601			33,161
64	Business		119,792			114,803			4,989			119,220			114,187			5,033
65	Total		1,081,887			1,045,205			36,682			1,082,982			1,044,788			38,194
66	Wholesale customers		62			76			(14	)		63			76			(13	)
67	Total customers		1,081,949			1,045,281			36,668			1,083,045			1,044,864			38,181
68	Customer growth (% over prior year)		3.5	%		4.6	%		(1.1	)%		3.7	%		4.5	%		(0.8	)%
	RETAIL SALES (GWH) — WEATHER NORMALIZED
69	Residential		3,214			3,123			91			5,862			5,598			264
70	Business		3,977			3,933			44			7,205			7,181			24
71	Total		7,191			7,056			135			13,067			12,779			288
	RETAIL USAGE (KWh/Average Customer)
72	Residential		3,417			3,530			(113	)		6,247			6,128			119
73	Business		33,425			34,590			(1,165	)		61,139			62,792			(1,653	)
	RETAIL USAGE — WEATHER NORMALIZED (KWh/Average Customer)
74	Residential		3,340			3,357			(17	)		6,082			6,015			67
75	Business		33,202			34,263			(1,061	)		60,435			62,889			(2,454	)
	ELECTRICITY DEMAND (MW)
76	System peak demand		6,982			6,624			358			6,982			6,624			358

See Glossary of Terms. Page 5 of 31

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June									6 Mo. Ended June
Line		2007			2006			Incr (Decr)			2007			2006			Incr (Decr)
	ENERGY SOURCES (GWH)
	Generation production
77	Nuclear		1,846			1,198			648			4,145			2,918			1,227
78	Coal		3,265			3,182			83			6,429			6,265			164
79	Gas, oil and other		1,517			2,000			(483	)		2,668			3,323			(655	)
80	Total generation production		6,628			6,380			248			13,242			12,506			736
	Purchased power
81	Firm load		1,676			1,740			(64	)		1,954			2,105			(151	)
82	Marketing and trading		3,055			4,597			(1,542	)		5,317			9,189			(3,872	)
83	Total purchased power		4,731			6,337			(1,606	)		7,271			11,294			(4,023	)
84	Total energy sources		11,359			12,717			(1,358	)		20,513			23,800			(3,287	)
	POWER PLANT PERFORMANCE
	Capacity Factors
85	Nuclear		75	%		49	%		26	%		85	%		60	%		25	%
86	Coal		86	%		84	%		2	%		85	%		83	%		2	%
87	Gas, oil and other		21	%		28	%		(7	)%		19	%		23	%		(4	)%
88	System average		49	%		48	%		1	%		50	%		47	%		3	%
	Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
89	Nuclear		266			553			(287	)		164			430			(266	)
90	Coal		189			184			5			196			220			(24	)
91	Gas		405			117			288			336			159			177
92	Total		860			854			6			696			809			(113	)

(a) Includes planned and unplanned outages

See Glossary of Terms. Page 6 of 31

Last Updated 7/26/2007

Pinnacle West Capital Corporation

Quarterly Consolidated Statistical Summary

Periods Ended June 30, 2007 and 2006

		3 Mo. Ended June									6 Mo. Ended June
Line		2007			2006			Incr (Decr)			2007			2006			Incr (Decr)
	ENERGY MARKET INDICATORS (a)
	Electricity Average Daily Spot Prices ($/MWh)
	On-Peak
93	Palo Verde	$	64.64		$	54.63		$	10.01		$	59.63		$	54.21		$	5.42
94	SP15	$	68.75		$	55.39		$	13.36		$	64.39		$	56.87		$	7.52
	Off-Peak
95	Palo Verde	$	41.46		$	28.38		$	13.08		$	41.76		$	35.15		$	6.61
96	SP15	$	46.14		$	27.43		$	18.71		$	46.00		$	36.11		$	9.89
	WEATHER INDICATORS
	Actual
97	Cooling degree-days		1,708			1,740			(32	)		1,880			1,783			97
98	Heating degree-days		8			4			4			597			468			129
99	Average humidity		18	%		18	%		0	%		27	%		23	%		4	%
	10-Year Averages
100	Cooling degree-days		1,557			1,557			—			1,654			1,654			—
101	Heating degree-days		31			31			—			544			544			—
102	Average humidity		22	%		22	%		0	%		32	%		32	%		0	%
	ECONOMIC INDICATORS
	Building Permits — Metro Phoenix (b)(d)
103	Single-family		5,044			5,756			(712	)		12,061			14,472			(2,411	)
104	Multi-family		1,276			2,305			(1,029	)		5,407			5,192			215
105	Total		6,320			8,061			(1,741	)		17,468			19,664			(2,196	)
	Arizona Job Growth (c) (d)
106	Payroll job growth (% over prior year)		3.5	%		5.2	%		(1.7	)%		3.9	%		5.8	%		(1.9	)%
107	Unemployment rate (%, seasonally adjusted)		3.8	%		4.1	%		(0.3	)%		3.9	%		4.2	%		(0.3	)%

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 May 31, 2007 (latest available data) and May 31, 2006.

See Glossary of Terms. Page 7 of 31