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): April 26, 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 85004
(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 reported, on February 8, 2002, the Chief Administrative Law
Judge of the Arizona Corporation Commission (the "ACC") issued a procedural
order which consolidated several ACC dockets, including:
* the ACC docket relating to an October 2001 filing by Arizona Public
Service Company (the "Company") requesting approval of a long-term
purchase power agreement between the Company and Pinnacle West Capital
Corporation, the Company's parent ("Pinnacle West"), as well as a
variance from a competitive bidding process required by an ACC rule;
and
* a "generic" docket established by the ACC in February 2002 to
"determine if changed circumstances require the [ACC] to take another
look at restructuring in Arizona."
See Note 3 of Notes to Financial Statements in the Company's Report on Form 10-K
for the fiscal year ended December 31, 2001 (the "2001 Form 10-K") for
additional information about the consolidated docket, a comprehensive 1999
Settlement Agreement approved by the ACC among the Company and various parties
related to the implementation of retail electric competition in Arizona, and the
retail electric competition rules adopted by the ACC.
On April 19, 2002, the Company filed a motion in the consolidated docket
addressing various issues and suggesting, among other things, that the ACC
confirm whether or not Arizona would proceed with the transition to a
competitive electric market. The Company also advised the ACC that, (a) as
required and authorized by the 1999 Settlement Agreement, on or about August 1,
2002, the Company intends to formally provide the ACC with a 30-day notice of
its planned transfer of generation assets to its affiliate, Pinnacle West Energy
Corporation ("Pinnacle West Energy") and (b) the Company intends to issue a
request for proposal for competitive bidding no later than September 1, 2002.
See "Arizona Electric Industry Restructuring" in Item 5 of the Company's Report
on Form 8-K, dated April 19, 2002 for additional information regarding the
Company's motion.
On April 26, 2002, the ACC issued a procedural order in which the ACC
stayed the previously-scheduled April 29, 2002 hearing on the matters raised in
the Company's October 2001 ACC filing (see the first paragraph above). On May 2,
2002, the ACC issued a procedural order stating that hearings will begin on June
17, 2002 on various issues ("Track A Issues"), including the Company's planned
divestiture of generation assets to Pinnacle West Energy and associated market
and affiliate issues. The procedural order stated that the schedule is designed
to have a recommended order issued by the administrative law judge by
approximately July 22, 2002, with comments on the recommended order due from
affected parties on July 31, 2002. Under this schedule, August 1, 2002 is the
earliest date the ACC could consider a decision on the Track A Issues.
The procedural order also stated that consideration of the competitive
bidding process (the "Track B Issues") required by the retail electric
competition rules would proceed concurrently with the Track A Issues. The
objectives and process of the Track B Issues will be determined in one or more
meetings of affected parties beginning the week of May 20, 2002, with a "target
completion date" of October 21, 2002.
A modification to the retail electric competition rules or the 1999
Settlement Agreement 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 2001 filing, the
existing Arizona electric competition rules, or the 1999 Settlement Agreement.
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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: May 6, 2002 By: Barbara M. Gomez
--------------------------
Barbara M. Gomez
Treasurer
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