Exhibit 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION — OPERATING INCOME (GAAP MEASURE) TO GROSS MARGIN (NON-GAAP MEASURE)
(in thousands)
| THREE MONTHS ENDED | ||||||||||||
| MARCH 31, | ||||||||||||
| 2005 | 2004 | Increase (Decrease) | ||||||||||
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN | ||||||||||||
| Operating Income (closest GAAP measure) | $ | 85,256 | $ | 84,198 | $ | 1,058 | ||||||
| Plus: | ||||||||||||
| Operations and maintenance | 156,496 | 137,386 | 19,110 | |||||||||
| Real estate segment operations | 56,476 | 47,690 | 8,786 | |||||||||
| Depreciation and amortization | 94,231 | 101,616 | (7,385 | ) | ||||||||
| Taxes other than income taxes | 35,190 | 30,330 | 4,860 | |||||||||
| Other expenses | 8,374 | 8,750 | (376 | ) | ||||||||
| Marketing and trading segment purchased power and fuel | 100,641 | 67,764 | 32,877 | |||||||||
| Less: | ||||||||||||
| Real estate segment revenues | 72,056 | 51,593 | 20,463 | |||||||||
| Other revenues | 10,135 | 10,905 | (770 | ) | ||||||||
| Marketing and trading segment revenues | 116,866 | 88,383 | 28,483 | |||||||||
Regulated electricity segment gross margin | $ | 337,607 | $ | 326,853 | $ | 10,754 | ||||||
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN | ||||||||||||
| Operating Income (closest GAAP measure) | $ | 85,256 | $ | 84,198 | $ | 1,058 | ||||||
| Plus: | ||||||||||||
| Operations and maintenance | 156,496 | 137,386 | 19,110 | |||||||||
| Real estate segment operations | 56,476 | 47,690 | 8,786 | |||||||||
| Depreciation and amortization | 94,231 | 101,616 | (7,385 | ) | ||||||||
| Taxes other than income taxes | 35,190 | 30,330 | 4,860 | |||||||||
| Other expenses | 8,374 | 8,750 | (376 | ) | ||||||||
| Regulated electricity segment purchased power and fuel | 78,423 | 88,611 | (10,188 | ) | ||||||||
| Less: | ||||||||||||
| Real estate segment revenues | 72,056 | 51,593 | 20,463 | |||||||||
| Other revenues | 10,135 | 10,905 | (770 | ) | ||||||||
| Regulated electricity segment revenues | 416,030 | 415,464 | 566 | |||||||||
Marketing and trading segment gross margin | $ | 16,225 | $ | 20,619 | $ | (4,394 | ) | |||||