SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 8, 2002
ARIZONA PUBLIC SERVICE COMPANY
(Exact name of registrant as specified in its charter)
Arizona 1-4473 86-0011170
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona 85072-3999
(Address of principal executive offices) (Zip Code)
(602) 250-1000
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
ARIZONA ELECTRIC INDUSTRY RESTRUCTURING
As previously disclosed, in a filing with the Arizona Corporation
Commission (the "ACC") on October 18, 2001, Arizona Public Service Company (the
"Company" or "APS") requested the ACC to (a) grant APS a partial variance from
an ACC rule that would obligate APS to acquire all of its customers' "standard
offer" generation requirements from the competitive market (with at least 50% of
that coming from a "competitive bidding" process) starting in 2003 and (b)
approve as just and reasonable a long-term purchase power agreement ("PPA")
between APS and Pinnacle West Capital Corporation ("Pinnacle West"). See
"Arizona Electric Industry Restructuring" in Item 5 of the Company's Current
Report on Form 8-K dated December 14, 2001.By letter dated January 14, 2002, the
Chairman of the ACC recommended that the ACC establish a new "generic" docket to
"determine if changed circumstances require the [ACC] to take another look at
electric restructuring in Arizona." On January 22, 2002 the ACC's Chief
Administrative Law Judge ("ALJ") issued a procedural order by which a generic
docket was opened. On February 8, 2002, the ALJ issued a procedural order which
consolidated the generic docket, the Company's request, and other pending ACC
dockets. Although the order consolidates several dockets, it states that a
hearing on the APS matter will commence on April 29, 2002. The order went on to
state that the ALJ was construing the October 18, 2001 filing as a request by
the Company to amend the 1999 ACC order that approved a comprehensive Settlement
Agreement (the "Settlement Agreement") among the Company and various parties
relating to the implementation of retail electric competition.
The Company is required to transfer its generation assets and competitive
services to one or more corporate affiliates on or before December 31, 2002.
Consistent with that requirement, the Company has been addressing the legal and
regulatory requirements necessary to complete the transfer of its generation
assets to Pinnacle West Energy Corporation, a wholly-owned subsidiary of
Pinnacle West, on or before that date. In anticipation of the Company's transfer
of generation assets, Pinnacle West Energy has completed, and is in the process
of developing and planning, various generation expansion projects so that the
Company can reliably meet the energy requirements of its Arizona customers. A
modification to the competition rules or the Settlement Agreement as a result of
the consolidated docket could, among other things, adversely affect the
Company's ability to transfer its generation assets to Pinnacle West Energy by
December 31, 2002. The Company cannot predict the outcome of the consolidated
docket or its effect on the specific requests in the Company's October 18, 2001
filing, the existing Arizona electric competition rules, or the Settlement
Agreement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
Dated: February 20, 2002 By: Barbara M. Gomez
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Barbara M. Gomez
Treasurer