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

Exhibit 99.3

Last Updated 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

															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	)							$	(6	)	$	(10	)
	2	Pinnacle West Energy		—									—			—
	3	APS Energy Services		—									—			(1	)
	4	SunCor		(1	)								(1	)		(10	)
	5	El Dorado		(1	)								(1	)		1
	6	Parent Company		4									4			(1	)
	7	Income From Continuing Operations		(4	)		—		—		—		(4	)		(21	)
		Income (Loss) From Discontinued Operations — Net of Tax
	8	Silverhawk		—									—			—
	9	SunCor		—									—			—
	10	Other		—									—			—
	11	Total		—			—		—		—		—			—
	12	Net Income	$	(4	)	$	—	$	—	$	—	$	(4	)	$	(21	)
		EARNINGS PER SHARE BY SUBSIDIARY — DILUTED
	13	Arizona Public Service	$	(0.06	)							$	(0.06	)	$	(0.10	)
	14	Pinnacle West Energy		—									—			—
	15	APS Energy Services		—									—			(0.01	)
	16	SunCor		(0.01	)								(0.01	)		(0.10	)
	17	El Dorado		(0.02	)								(0.02	)		—
	18	Parent Company		0.04									0.04			—
	19	Income From Continuing Operations		(0.05	)		—		—		—		(0.05	)		(0.21	)
		Income (Loss) From Discontinued Operations — Net of Tax
	20	Silverhawk		—									—			—
	21	SunCor		—									—			—
	22	Other		0.01									0.01			0.01
	23	Total		0.01			—		—		—		0.01			0.01
	24	Net Income	$	(0.04	)	$	—	$	—	$	—	$	(0.04	)	$	(0.20	)
	25	BOOK VALUE PER SHARE	$	35.22	*							$	35.22	*	$	0.77
		COMMON SHARES OUTSTANDING (Thousands)
	26	Average — Diluted		100,521									100,521		$	(101	)
	27	End of Period		100,486									100,486		$	371

* Estimate

See Glossary of Terms Page 8 of 31

Last Updated 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

													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	$	271							$	271	$	25
	29	Business		300								300		36
	30	Total retail		571		—		—		—		571		61
		Wholesale revenue on delivered electricity
	31	Traditional contracts		12								12		7
	32	Off-system sales		24								24		17
	33	Transmission for others		7								7		—
	34	Other miscellaneous services		9								9		2
	35	Total regulated operating electricity revenues		623		—		—		—		623		87
		MARKETING AND TRADING
	36	Electricity and other commodity sales		57								57		(15	)
	37	Total operating electric revenues	$	680	$	—	$	—	$	—	$	680	$	72
		ELECTRIC SALES (GWH)
		REGULATED ELECTRICITY SEGMENT
		Retail sales
	38	Residential		2,774								2,774		40
	39	Business		3,338								3,338		53
	40	Total retail		6,112		—		—		—		6,112		93
		Wholesale electricity delivered
	41	Traditional contracts		222								222		47
	42	Off-system sales		416								416		173
	43	Retail load hedge management		162								162		45
	44	Total regulated electricity		6,912		—		—		—		6,912		358
		MARKETING AND TRADING
	45	Wholesale sales of electricity		920								920		(1,003	)
	46	Total electric sales		7,832		—		—		—		7,832		(645	)

See Glossary of Terms Page 9 of 31

Last Updated 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

															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	$	111								$	111		$	(49	)
	48	Deferred fuel and purchased power costs - current period		(11	)								(11	)		(36	)
	49	Regulatory disallowance		—									—			—
	50	Interest on deferred fuel		1									1			(1	)
	51	Amounts recovered through revenues		(51	)								(51	)		18
	52	Deferred fuel and purchased power regulatory asset - ending balance	$	50		$	—	$	—	$	—	$	50		$	(68	)
		MARKETING AND TRADING PRETAX GROSS MARGIN ANALYSIS (Dollars in Millions)
		Realized and Mark-To-Market Components
	53	Electricity and other commodity sales, realized (a)	$	5								$	5		$	(8	)
	54	Mark-to-market reversals on realized sales (a) (b)		—									—			8
	55	Change in mark-to-market value of forward sales		1									1			(9	)
	56	Total gross margin	$	6		$	—	$	—	$	—	$	6		$	(9	)
		By Pinnacle West Entity
	57	APS	$	—								$	—		$	1
	58	Pinnacle West		7									7			(4	)
	59	APS Energy Services		(1	)								(1	)		(6	)
	60	Pinnacle West Energy		—									—			—
	61	Total gross margin	$	6		$	—	$	—	$	—	$	6		$	(9	)

Future Marketing and Trading Mark-to-Market Realization

As of March 31, 2008, Pinnacle West had accumulated net mark-to-market gains of $10 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: 2008, $2 million; and thereafter, $8 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 gain of $0 million was transferred to “realized” for the first quarter of 2008. A $0 million realized gain is included in the $5 million on line 53 for the first quarter of 2008.

(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 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

															Increase
															(Decrease)
Line			1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
		AVERAGE ELECTRIC CUSTOMERS
		Retail customers
	62	Residential		982,459									982,459			17,031
	63	Business		122,833									122,833			4,184
	64	Total		1,105,292			—		—		—		1,105,292			21,215
	65	Wholesale customers		50									50			(13	)
	66	Total customers		1,105,342			—		—		—		1,105,342			21,202
	67	Customer growth (% over prior year)		2.0	%								2.0	%		(1.8	)%
		RETAIL SALES (GWH) - WEATHER NORMALIZED
	68	Residential		2,694									2,694			37
	69	Business		3,300									3,300			72
	70	Total		5,994			—		—		—		5,994			109
		RETAIL USAGE (KWh/Average Customer)
	71	Residential		2,824									2,824			(8	)
	72	Business		27,175									27,175			(512	)
		RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)
	73	Residential		2,742									2,742			(10	)
	74	Business		26,865									26,865			(340	)
		ELECTRICITY DEMAND (MW)
	75	System peak demand		4,685									4,685			(96	)

See Glossary of Terms Page 11 of 31

Last Updated 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

															Increase
															(Decrease)
Line			1st Qtr			2nd Qtr		3rd Qtr		4th Qtr		Year-To-Date			vs Prior YTD
		ENERGY SOURCES (GWH)
		Generation production
	76	Nuclear		2,318									2,318			19
	77	Coal		2,924									2,924			(240	)
	78	Gas, oil and other		1,148									1,148			(3	)
	79	Total generation production		6,390			—		—		—		6,390			(224	)
		Purchased power
	80	Firm load		740									740			462
	81	Marketing and trading		1,205									1,205			(923	)
	82	Total purchased power		1,945			—		—		—		1,945			(461	)
	83	Total energy sources		8,335			—		—		—		8,335			(685	)
		POWER PLANT PERFORMANCE
		Capacity Factors
	84	Nuclear		93	%								93	%		(1	)%
	85	Coal		76	%								76	%		(8	)%
	86	Gas, oil and other		16	%								16	%		0	%
	87	System average		47	%								47	%		(3	)%
		Generation Capacity Out of Service and Replaced for Native Load (average MW/day) (a)
	88	Nuclear		8									8			(49	)
	89	Coal		327									327			124
	90	Gas		356									356			89
	91	Total		691			—		—		—		691			164

(a) Includes planned and unplanned outages

See Glossary of Terms Page 12 of 31

Last Updated 4/29/2008

Pinnacle West Capital Corporation

Consolidated Statistics By Quarter
2008

															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	$	69.40								$	69.40		$	14.78
	93	SP15	$	79.09								$	79.09		$	19.07
		Off-Peak
	94	Palo Verde	$	56.39								$	56.39		$	14.33
	95	SP15	$	62.35								$	62.35		$	16.49
		WEATHER INDICATORS
		Actual
	96	Cooling degree-days		105									105			(67	)
	97	Heating degree-days		583									583			(6	)
	98	Average humidity		40	%								40	%		4	%
		10-Year Averages
	99	Cooling degree-days		96									96			—
	100	Heating degree-days		517									517			—
	101	Average humidity		42	%								42	%		0	%
		ECONOMIC INDICATORS
		Building Permits — Metro Phoenix (b) (d)
	102	Single-family		1,418									1,418			(845	)
	103	Multi-family		1,070									1,070			(418	)
	104	Total		2,488			—		—		—		2,488			(1,263	)
		Arizona Job Growth (c) (d)
	105	Payroll job growth (% over prior year)		0.4	%								0.4	%		(2.1	)%
	106	Unemployment rate (%, seasonally adjusted)		4.2	%								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 February 29, 2008 (latest available data).

See Glossary of Terms Page 13 of 31