Pinnacle West Capital (PNW) 10-Q 2008 Q1 Quarterly report

Exhibit 12.3
PINNACLE WEST CAPITAL CORPORATION
COMPUTATION OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
(dollars in thousands)

	Three Months
	Ended
	March 31,			Twelve Months Ended December 31,
	2008			2007		2006		2005		2004		2003
Earnings:
Income (loss) from continuing operations	$	(4,668	)	$	301,132	$	317,143	$	223,163	$	246,590	$	225,384
Income taxes		(557	)		152,447		156,418		126,892		136,142		102,202
Fixed charges		61,222			235,705		225,119		214,430		214,803		225,041
Total Earnings	$	55,997		$	689,284	$	698,680	$	564,485	$	597,535	$	552,627
Fixed Charges:
Interest charges	$	54,766		$	208,521	$	196,826	$	185,087	$	183,527	$	193,973
Estimated interest portion of annual rents		6,456			27,184		28,293		29,343		31,276		31,068
Total Fixed Charges	$	61,222		$	235,705	$	225,119	$	214,430	$	214,803	$	225,041
Preferred Stock Dividend Requirements:
Income (loss) before income taxes	$	(5,225	)	$	453,579	$	473,561	$	350,055	$	382,732	$	327,586
Net income (loss) from continuing operations		(4,668	)		301,132		317,143		223,163		246,590		225,384
Ratio of income (loss) before income taxes to net income		1.119			1.506		1.493		1.569		1.552		1.453
Preferred stock dividends		—			—		—		—		—		—
Preferred Stock Dividend Requirements — Ratio (above) Times Preferred Stock Dividends	$	—		$	—	$	—	$	—	$	—	$	—
Fixed Charges and Preferred Stock Dividend Requirements:
Fixed charges	$	61,222		$	235,705	$	225,119	$	214,430	$	214,803	$	225,041
Preferred stock dividend requirements		—			—		—		—		—		—
Total Fixed Charges and Preferred Stock Dividend Requirements	$	61,222		$	235,705	$	225,119	$	214,430	$	214,803	$	225,041
Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements (rounded down)		0.91			2.92		3.10		2.63		2.78		2.45