Exhibit 99.1
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
| THREE MONTHS ENDED | ||||||||||||||||
| SEPTEMBER 30, | Increase (Decrease) | |||||||||||||||
| 2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN | ||||||||||||||||
| Operating Income (closest GAAP measure) | $ | 310,440 | $ | 161,845 | $ | 148,595 | $ | 90,569 | ||||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 164,396 | 158,940 | 5,456 | 3,325 | ||||||||||||
| Real estate segment operations | 78,853 | 67,508 | 11,345 | 6,915 | ||||||||||||
| Depreciation and amortization | 90,390 | 85,763 | 4,627 | 2,820 | ||||||||||||
| Taxes other than income taxes | 31,697 | 34,325 | (2,628 | ) | (1,602 | ) | ||||||||||
| Other expenses | 5,610 | 13,521 | (7,911 | ) | (4,822 | ) | ||||||||||
| Regulatory disallowance | — | 143,217 | (143,217 | ) | (87,291 | ) | ||||||||||
| Marketing and trading segment fuel and purchased power | 80,906 | 86,945 | (6,039 | ) | (3,681 | ) | ||||||||||
| Less: | ||||||||||||||||
| Real estate segment revenues | 97,871 | 78,755 | 19,116 | 11,651 | ||||||||||||
| Other revenues | 7,167 | 16,369 | (9,202 | ) | (5,609 | ) | ||||||||||
| Marketing and trading segment revenues | 84,425 | 107,031 | (22,606 | ) | (13,778 | ) | ||||||||||
Regulated electricity segment gross margin | $ | 572,829 | $ | 549,909 | $ | 22,920 | $ | 13,969 | ||||||||
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN | ||||||||||||||||
| Operating Income (closest GAAP measure) | $ | 310,440 | $ | 161,845 | $ | 148,595 | $ | 90,569 | ||||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 164,396 | 158,940 | 5,456 | 3,325 | ||||||||||||
| Real estate segment operations | 78,853 | 67,508 | 11,345 | 6,915 | ||||||||||||
| Depreciation and amortization | 90,390 | 85,763 | 4,627 | 2,820 | ||||||||||||
| Taxes other than income taxes | 31,697 | 34,325 | (2,628 | ) | (1,602 | ) | ||||||||||
| Other expenses | 5,610 | 13,521 | (7,911 | ) | (4,822 | ) | ||||||||||
| Regulatory disallowance | — | 143,217 | (143,217 | ) | (87,291 | ) | ||||||||||
| Regulated electricity segment fuel and purchased power | 314,150 | 203,519 | 110,631 | 67,430 | ||||||||||||
| Less: | ||||||||||||||||
| Real estate segment revenues | 97,871 | 78,755 | 19,116 | 11,651 | ||||||||||||
| Other revenues | 7,167 | 16,369 | (9,202 | ) | (5,609 | ) | ||||||||||
| Regulated electricity segment revenues | 886,979 | 753,428 | 133,551 | 81,399 | ||||||||||||
Marketing and trading segment gross margin | $ | 3,519 | $ | 20,086 | $ | (16,567 | ) | $ | (10,097 | ) | ||||||
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
NON-GAAP FINANCIAL MEASURE RECONCILIATION — OPERATING INCOME
(GAAP MEASURE) TO GROSS MARGIN (NON-GAAP FINANCIAL MEASURE)
(in thousands)
| NINE MONTHS ENDED | ||||||||||||||||
| SEPTEMBER 30, | Increase (Decrease) | |||||||||||||||
| 2006 | 2005 | Pretax | After Tax | |||||||||||||
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN | ||||||||||||||||
| Operating Income (closest GAAP measure) | $ | 558,800 | $ | 432,502 | $ | 126,298 | $ | 76,979 | ||||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 511,155 | 467,121 | 44,034 | 26,839 | ||||||||||||
| Real estate segment operations | 248,595 | 190,555 | 58,040 | 35,375 | ||||||||||||
| Depreciation and amortization | 267,308 | 262,030 | 5,278 | 3,217 | ||||||||||||
| Taxes other than income taxes | 99,970 | 103,528 | (3,558 | ) | (2,169 | ) | ||||||||||
| Other expenses | 22,562 | 39,451 | (16,889 | ) | (10,294 | ) | ||||||||||
| Regulatory disallowance | — | 143,217 | (143,217 | ) | (87,291 | ) | ||||||||||
| Marketing and trading segment fuel and purchased power | 227,797 | 215,347 | 12,450 | 7,588 | ||||||||||||
| Less: | ||||||||||||||||
| Real estate segment revenues | 318,328 | 232,950 | 85,378 | 52,038 | ||||||||||||
| Other revenues | 28,173 | 46,763 | (18,590 | ) | (11,331 | ) | ||||||||||
| Marketing and trading segment revenues | 259,352 | 267,460 | (8,108 | ) | (4,942 | ) | ||||||||||
Regulated electricity segment gross margin | $ | 1,330,334 | $ | 1,306,578 | $ | 23,756 | $ | 14,479 | ||||||||
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN | ||||||||||||||||
| Operating Income (closest GAAP measure) | $ | 558,800 | $ | 432,502 | $ | 126,298 | $ | 76,979 | ||||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 511,155 | 467,121 | 44,034 | 26,839 | ||||||||||||
| Real estate segment operations | 248,595 | 190,555 | 58,040 | 35,375 | ||||||||||||
| Depreciation and amortization | 267,308 | 262,030 | 5,278 | 3,217 | ||||||||||||
| Taxes other than income taxes | 99,970 | 103,528 | (3,558 | ) | (2,169 | ) | ||||||||||
| Other expenses | 22,562 | 39,451 | (16,889 | ) | (10,294 | ) | ||||||||||
| Regulatory disallowance | — | 143,217 | (143,217 | ) | (87,291 | ) | ||||||||||
| Regulated electricity segment fuel and purchased power | 735,489 | 442,532 | 292,957 | 178,557 | ||||||||||||
| Less: | ||||||||||||||||
| Real estate segment revenues | 318,328 | 232,950 | 85,378 | 52,038 | ||||||||||||
| Other revenues | 28,173 | 46,763 | (18,590 | ) | (11,331 | ) | ||||||||||
| Regulated electricity segment revenues | 2,065,823 | 1,749,110 | 316,713 | 193,037 | ||||||||||||
Marketing and trading segment gross margin | $ | 31,555 | $ | 52,113 | $ | (20,558 | ) | $ | (12,531 | ) | ||||||