Pinnacle West Capital (PNW) 8-K Financial Statements and Exhibits

Exhibit 12.1

Arizona Public Service Company

Computation of Pro Forma Ratio of Earnings to Fixed Charges

($000’s)

						Adjusted
	12/31/2008		Adjustments			12/31/2008 (1)
Earnings:
Income From Continuing Operations	$	262,344	$	(19,034	)	$	243,310
Income Taxes	107,261		(12,448		)	94,813
Fixed Charges	213,583		31,482			245,066
Total Earnings	$	583,188				$	583,188
Fixed Charges:
Interest Charges	$	183,503	$	31,000		$	214,503
Amortization of Debt Discount	4,702		482			5,184
Estimated Interest Portion of Annual Rents	25,378		—			25,378
Total Fixed Charges	$	213,583	$	31,482		$	245,066
Ratio of Earnings to Fixed Charges (rounded down)	2.73					2.37

(1) Adjusted to reflect the issuance of $500,000,000 of Arizona Public Service Company’s 8.750% Notes due 2019 and the application of the proceeds of such notes.