EXHIBIT 99.10
PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION - OPERATING INCOME (GAAP MEASURE) TO GROSS
MARGIN (NON-GAAP MEASURE)
(in thousands)
THREE MONTHS ENDED Pretax After Tax
JUNE 30, Increase Increase
2005 2004 (Decrease) (Decrease)
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RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure) $ 178,627 $ 123,167 $ 55,460 $ 33,703
Plus:
Operations and maintenance 153,097 138,595 14,502 8,813
Real estate segment operations 68,593 62,217 6,376 3,875
Depreciation and amortization 85,142 102,012 (16,870) (10,252)
Taxes other than income taxes 34,638 32,308 2,330 1,416
Other expenses 17,556 7,575 9,981 6,065
Marketing and trading segment purchased power and fuel 57,593 88,067 (30,474) (18,519)
Less:
Real estate segment revenues 84,753 66,084 18,669 11,345
Other revenues 20,259 9,414 10,845 6,591
Marketing and trading segment revenues 71,172 110,156 (38,984) (23,691)
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REGULATED ELECTRICITY SEGMENT GROSS MARGIN $ 419,062 $ 368,287 $ 50,775 $ 30,856
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RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure) $ 178,627 $ 123,167 $ 55,460 $ 33,703
Plus:
Operations and maintenance 153,097 138,595 14,502 8,813
Real estate segment operations 68,593 62,217 6,376 3,875
Depreciation and amortization 85,142 102,012 (16,870) (10,252)
Taxes other than income taxes 34,638 32,308 2,330 1,416
Other expenses 17,556 7,575 9,981 6,065
Regulated electricity segment purchased power and fuel 160,590 151,642 8,948 5,438
Less:
Real estate segment revenues 84,753 66,084 18,669 11,345
Other revenues 20,259 9,414 10,845 6,591
Regulated electricity segment revenues 579,652 519,929 59,723 36,294
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MARKETING AND TRADING SEGMENT GROSS MARGIN $ 13,579 $ 22,089 $ (8,510) $ (5,172)
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PINNACLE WEST CAPITAL CORPORATION
NON-GAAP MEASURE RECONCILIATION - OPERATING INCOME (GAAP MEASURE) TO GROSS
MARGIN (NON-GAAP MEASURE)
(in thousands)
SIX MONTHS ENDED Pretax After Tax
JUNE 30, Increase Increase
2005 2004 (Decrease) (Decrease)
--------- --------- ---------- ----------
RECONCILIATION OF REGULATED ELECTRICITY SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure) $ 270,981 $ 207,445 $ 63,536 $ 38,611
Plus:
Operations and maintenance 308,181 275,981 32,200 19,568
Real estate segment operations 125,069 109,510 15,559 9,455
Depreciation and amortization 176,535 203,115 (26,580) (16,153)
Taxes other than income taxes 69,203 62,638 6,565 3,990
Other expenses 25,930 16,325 9,605 5,837
Marketing and trading segment purchased power and fuel 128,402 155,832 (27,430) (16,669)
Less:
Real estate segment revenues 156,809 116,547 40,262 24,467
Other revenues 30,394 20,319 10,075 6,123
Marketing and trading segment revenues 160,429 198,840 (38,411) (23,342)
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REGULATED ELECTRICITY SEGMENT GROSS MARGIN $ 756,669 $ 695,140 $ 61,529 $ 37,391
========= ========= ======== ========
RECONCILIATION OF MARKETING AND TRADING SEGMENT GROSS MARGIN
Operating Income (closest GAAP measure) $ 270,981 $ 207,445 $ 63,536 $ 38,611
Plus:
Operations and maintenance 308,181 275,981 32,200 19,568
Real estate segment operations 125,069 109,510 15,559 9,455
Depreciation and amortization 176,535 203,115 (26,580) (16,153)
Taxes other than income taxes 69,203 62,638 6,565 3,990
Other expenses 25,930 16,325 9,605 5,837
Regulated electricity segment purchased power and fuel 239,013 240,253 (1,240) (754)
Less:
Real estate segment revenues 156,809 116,547 40,262 24,467
Other revenues 30,394 20,319 10,075 6,123
Regulated electricity segment revenues 995,682 935,393 60,289 36,638
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MARKETING AND TRADING SEGMENT GROSS MARGIN $ 32,027 $ 43,008 $(10,981) $ (6,674)
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