EXHIBIT 99.2
ARIZONA PUBLIC SERVICE COMPANY
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 | ||||||||||||||||
| JUNE 30, | Increase (Decrease) | |||||||||||||||
| 2007 | 2006 | Pretax | After Tax | |||||||||||||
| Reconciliation of Gross Margin | ||||||||||||||||
| Operating income (closest GAAP measure) | $ | 109,643 | $ | 119,967 | $ | (10,324 | ) | $ | (6,273 | ) | ||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 170,631 | 164,373 | 6,258 | 3,802 | ||||||||||||
| Depreciation and amortization | 90,809 | 87,969 | 2,840 | 1,726 | ||||||||||||
| Income taxes | 42,682 | 46,650 | (3,968 | ) | (2,411 | ) | ||||||||||
| Other taxes | 34,588 | 32,666 | 1,922 | 1,168 | ||||||||||||
| Gross Margin | $ | 448,353 | $ | 451,625 | $ | (3,272 | ) | $ | (1,988 | ) | ||||||
| SIX MONTHS ENDED | ||||||||||||||||
| JUNE 30, | Increase (Decrease) | |||||||||||||||
| 2007 | 2006 | Pretax | After Tax | |||||||||||||
| Reconciliation of Gross Margin | ||||||||||||||||
| Operating income (closest GAAP measure) | $ | 150,232 | $ | 145,011 | $ | 5,221 | $ | 3,172 | ||||||||
| Plus: | ||||||||||||||||
| Operations and maintenance | 336,565 | 337,726 | (1,161 | ) | (705 | ) | ||||||||||
| Depreciation and amortization | 178,685 | 174,280 | 4,405 | 2,676 | ||||||||||||
| Income taxes | 45,825 | 43,621 | 2,204 | 1,339 | ||||||||||||
| Other taxes | 69,110 | 68,214 | 896 | 544 | ||||||||||||
| Gross Margin | $ | 780,417 | $ | 768,852 | $ | 11,565 | $ | 7,026 | ||||||||