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									Page 1     2006 Statistical Report                                                                                                                               Pinnacle West Capital Corporation




PINNACLE WEST CAPITAL CORPORATION

2006 STATISTICAL REPORT FOR FINANCIAL ANALYSIS
TABLE OF CONTENTS


    Excel                                                                                           Excel
         Tab                                                                                         Tab
         Pages 2-3    ARIZONA ECONOMIC OVERVIEW                                                                   ARIZONA PUBLIC SERVICE COMPANY

                      PINNACLE WEST CAPITAL CORPORATION                                            Pages 28-29       Selected Financial Data
                                                                                                   Pages 28-29       Historical Growth Rates
      Pages 4-5          Consolidating Income Statement                                            Pages 30-31       Statements of Income
      Pages 6-7          Consolidating Balance Sheet - Assets                                      Pages 32-33       Balance Sheets - Assets
      Pages 8-9          Consolidating Balance Sheet - Liabilities and Equity                      Pages 34-35       Balance Sheets - Liabilities and Equity
    Pages 10-11          Consolidated Statements of Income                                         Pages 36-37       Statements of Cash Flows
    Pages 12-13          Consolidated Balance Sheets - Assets                                      Pages 38-39       Long-Term Debt Schedule
    Pages 14-15          Consolidated Balance Sheets - Liabilities and Equity                      Pages 40-41       Electric Operating Revenue Analysis
    Pages 16-17          Consolidated Statements of Cash Flows                                     Pages 42-43       Electric Sales Analysis
        Page 18          Book Value Per Share at Year-End                                              Page 44       Customer Data
        Page 18          Earnings Per Share - Diluted                                                  Page 44       Loads and Resources at Peak
        Page 18          Stock Price History                                                           Page 45       Rate Regulation
        Page 19          Non-Utility Long-Term Debt Schedule                                           Page 46       Source and Disposition of Electric Energy
    Pages 20-21          Consolidated Electric Operating Revenue Analysis                              Page 46       Fuel Mix
    Pages 22-23          Consolidated Electric Sales Analysis                                          Page 47       Generation Resources
    Pages 24-25          Consolidated Marketing and Trading Gross Margin Summary
        Page 26          Consolidated Source and Disposition of Electric Energy                    Pages 48-51    SUNCOR DEVELOPMENT COMPANY
        Page 26          Consolidated Fuel Mix
        Page 27          Consolidated Power Plant Operating Performance                                Page 52    EL DORADO INVESTMENT COMPANY




Note: Excel tab numbers in this electronic version correspond with page numbers in the printed version of the 2006 Statistical Report.
Pages 2-3   2006 Statistical Report                                                                                                                                          Pinnacle West Capital Corporation



ARIZONA ECONOMIC OVERVIEW


                                                 POPULATION GROWTH                                                           PERSONAL INCOME GROWTH
                                                   Percentage Change                                                             Percentage Change

                    5                                                                          10

                    4                                                                           8

                    3                                                                           6

                    2                                                                           4

                    1                                                                           2

                    0                                                                           0
                           96     97       98   99       00     01    02   03   04   05   06            96      97      98   99      00    01   02   03    04    05    06

                            Arizona             U.S.                                                     Arizona             U.S.



                         METROPOLITAN PHOENIX SINGLE-FAMILY BUILDING PERMITS                                          WAGE AND SALARY EMPLOYMENT GROWTH
                                             Thousands                                                                          Percentage Change


                   50                                                                          10
                   40                                                                          8
                                                                                               6
                   30
                                                                                               4
                   20
                                                                                               2
                   10
                                                                                               0
                     0                                                                         (2)
                           96     97       98    99       00     01   02   03   04   05   06            96      97      98    99      00   01   02   03    04    05    06
                                                                                                         Arizona              U.S.


                                                                                                                                    UNEMPLOYMENT RATE
                                       PHOENIX RESIDENTIAL VACANCY RATES
                                                                                                                                        Percentage
                                                Vacancy Percentage

                  10                                                                            10

                    8                                                                               8

                    6                                                                               6

                    4                                                                               4

                    2                                                                               2

                    0                                                                               0
                          96     97     98      99       00     01    02   03   04   05   06            96       97     98    99      00   01   02    03    04    05    06
                           Single Family              Multi-Family                                           Arizona          U.S.
Pages 4-5      2006 Statistical Report                                                                                                                                                                                                                                    Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
(DOLLARS IN THOUSANDS)




                                                                                                                                Pinnacle West                        Pinnacle West                                                    APS         Eliminations &          Consolidated
YEAR ENDED DECEMBER 31, 2006                                                                                                  Parent Company             APS                Energy (a)        SunCor        El Dorado       Energy Services        Adjustments                   Total

OPERATING REVENUES
      Regulated electricity segment                                                                                           $           -     $   2,640,989    $              -        $         -    $          -    $               -     $         (5,953) (b)   $     2,635,036
      Real estate segment                                                                                                                 -                 -                   -            399,798               -                    -                    -                399,798
      Marketing and trading                                                                                                         119,224            17,524                   -                  -               -              193,994                    -                330,742
      Other revenues                                                                                                                      -                 -                   -                  -               -               36,172                    -                 36,172
        Total                                                                                                                       119,224         2,658,513                   -            399,798               -              230,166               (5,953)             3,401,748

OPERATING EXPENSES
      Regulated electricity segment fuel and purchased power                                                                              -           965,712                   -                  -               -                    -               (5,063) (b)           960,649
      Real estate segment operations                                                                                                    253                 -                   -            324,608               -                    -                    -                324,861
      Marketing and trading fuel and purchased power                                                                                101,360             4,055                   -                  -               -              185,222                    -                290,637
      Operations and maintenance                                                                                                      8,884           665,631                 (98)                 -               4               17,746                 (890) (b)           691,277
      Depreciation and amortization                                                                                                     470           353,057                   -              3,497               -                1,620                    -                358,644
      Taxes other than income taxes                                                                                                       -           127,989                  11                  -               -                  395                    -                128,395
      Other expenses                                                                                                                      -                 -                   -                  -               -               28,415                    -                 28,415
        Total                                                                                                                       110,967         2,116,444                 (87)           328,105               4              233,398               (5,953)             2,782,878

OPERATING INCOME                                                                                                                      8,257          542,069                   87             71,693              (4)              (3,232)                    -              618,870

OTHER
      Allowance for equity funds used during construction                                                                                 -            14,312                   -                  -               -                    -                   -                  14,312
      Other income                                                                                                                  337,963            31,902                   -             10,881          (1,105)                 (11)           (335,614) (c)             44,016
      Other expenses                                                                                                                 (2,815)          (23,830)                  -                  -            (876)                (279)                  -                 (27,800)
         Total                                                                                                                      335,148            22,384                   -             10,881          (1,981)                (290)           (335,614)                 30,528

INTEREST EXPENSE
      Interest charges                                                                                                               20,525          163,132                    -             13,169            854                 1,820               (2,674) (c)          196,826
      Capitalized interest                                                                                                               (2)          (7,336)                   -            (12,864)             -                  (787)                   -               (20,989)
         Total                                                                                                                       20,523          155,796                    -                305            854                 1,033               (2,674)              175,837


INCOME FROM CONTINUING OPERATIONS
   BEFORE INCOME TAXES                                                                                                              322,882          408,657                   87             82,269          (2,839)              (4,555)           (332,940)               473,561

INCOME TAXES                                                                                                                        (12,900)         138,927                    -             32,176               -               (1,785)                    -              156,418

INCOME (LOSS) FROM CONTINUING OPERATIONS                                                                                            335,782          269,730                   87             50,093          (2,839)              (2,770)           (332,940)               317,143
Income (loss) from discontinued operations -
  net of income tax expense (benefit)                                                                                                    (90)               -               1,001             10,451          (1,250)                    -                    -                10,112

NET INCOME (LOSS)                                                                                                             $     335,692     $    269,730     $          1,088        $    60,544    $     (4,089)   $          (2,770)    $      (332,940)        $      327,255

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS
(a)   Pinnacle West Energy sold its ownership interest in Silverhawk on January 10, 2006. As a result, Pinnacle West Energy
      no longer owned any generating plants and was dissolved as of August 31, 2006.
(b)   Elimination of intercompany sales of electricity.
(c)   Elimination of intercompany interest expense and income.
Pages 6-7      2006 Statistical Report                                                                                                                                                                              Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
(DOLLARS IN THOUSANDS)




                                                                       Pinnacle West                                                                             APS         Eliminations &          Consolidated
DECEMBER 31, 2006                                                    Parent Company                  APS              SunCor           El Dorado       Energy Services        Adjustments                   Total

ASSETS

CURRENT ASSETS
      Cash and cash equivalents                                      $          11         $       81,870        $     5,177       $         1         $         151     $             -         $        87,210
      Investment in debt securities                                              -                 32,700                  -                 -                     -                   -                  32,700
      Customer and other receivables                                       174,583                410,436              5,068            13,735                24,889            (127,083) (a)            501,628
      Allowance for doubtful accounts                                       (1,200)                (4,223)                 -                 -                  (174)                  -                  (5,597)
      Materials and supplies (at average cost)                                   -                125,802                  -                 -                     -                   -                 125,802
      Fossil fuel (at average cost)                                              -                 21,973                  -                 -                     -                   -                  21,973
      Deferred income taxes                                                      -                 19,220                  -                 -                     -             (18,238) (b)                982
      Accrued income taxes                                                       -                      -              2,080                 -                     -              (2,080) (b)                  -
      Assets from risk management and trading activities                   101,604                539,308                  -                 -                   128                   -                 641,040
      Other current assets                                                  10,810                 13,367             43,133                 -                 1,614                   -                  68,924
         Total current assets                                              285,808              1,240,453             55,458            13,736                26,608            (147,401)              1,474,662

INVESTMENTS AND OTHER ASSETS
      Real estate investments - net                                          1,007                     -             525,001                 -                     -                   -                 526,008
      Assets from long-term risk management and trading activities          70,319                96,892                   -                 -                     -                   -                 167,211
      Decommissioning trust accounts                                             -               343,771                   -                 -                     -                   -                 343,771
      Other assets                                                       3,612,935                67,763               3,623            20,716                   315          (3,593,964) (c)            111,388
        Total investments and other assets                               3,684,261               508,426             528,624            20,716                   315          (3,593,964)              1,148,378

PROPERTY, PLANT AND EQUIPMENT
      Plant in service and held for future use                               3,140             11,094,868                  -                  -               56,911                     -            11,154,919
      Less accumulated depreciation and amortization                         2,120              3,789,534                  -                  -                5,821                     -             3,797,475
         Net                                                                 1,020              7,305,334                  -                  -               51,090                     -             7,357,444
      Construction work in progress                                            202                365,704                  -                  -                2,378                     -               368,284
      Intangible assets, net of accumulated amortization                        81                 95,601                  -                  -                  418                     -                96,100
      Nuclear fuel, net of accumulated amortization                              -                 60,100                  -                  -                    -                     -                60,100
         Total property, plant and equipment                                 1,303     -        7,826,739    -             -   -              -    #          53,886                     -             7,881,928

DEFERRED DEBITS
      Deferred fuel and purchased power regulatory asset                         -               160,268                   -                  -                     -                   -               160,268
      Other regulatory assets                                                    -               686,016                   -                  -                     -                   -               686,016
      Deferred income taxes                                                      -                     -              13,735                  -                     -             (13,735) (b)                -
      Other deferred debits                                                  3,384                91,790               9,494                 (4)                   (9)                 36 (b)           104,691
        Total deferred debits                                                3,384     -         938,074     -        23,229   -             (4) -                 (9)            (13,699)              950,975

TOTAL ASSETS                                                         $   3,974,756         $   10,513,692        $   607,311       $    34,448         $      80,800     $    (3,755,064)        $    11,455,943

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a)   Elimination of intercompany receivables and payables.
(b)   Miscellaneous reclassifications.
(c)   Elimination of Parent Company investments in subsidiaries.
Pages 8-9      2006 Statistical Report                                                                                                                                                                               Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
(DOLLARS IN THOUSANDS)




                                                                         Pinnacle West                                                                        APS          Eliminations &             Consolidated
DECEMBER 31, 2006                                                      Parent Company              APS             SunCor          El Dorado        Energy Services         Adjustments                      Total

LIABILITIES AND COMMON STOCK EQUITY

CURRENT LIABILITIES
      Accounts payable                                                 $      80,903     $      223,417       $    31,518      $     1,256      $           8,953      $             -            $       346,047
      Accrued taxes                                                         (118,073)           381,444             4,197            2,371                 (3,924)              (2,080)     (b)           263,935
      Accrued interest                                                         2,586             45,254               906                -                      -                    -                     48,746
      Short-term borrowings                                                   27,900                  -             7,850           21,497                    799              (22,296)     (a)            35,750
      Current maturities of long-term debt                                       115                968               513                -                      -                    -                      1,596
      Customer deposits                                                            -             61,900             8,268                -                      -                    -                     70,168
      Deferred income taxes                                                   18,238                  -                 -                -                      -              (18,238)     (b)                 -
      Liabilities from risk management and trading activities                 67,340            490,855                 -                -                      -                    -                    558,195
      Other current liabilities                                              128,399             74,728            24,584              203                 10,961             (104,752)     (a)           134,123
         Total current liabilities                                           207,408          1,278,566            77,836           25,327                 16,789             (147,366)                 1,458,560

LONG-TERM DEBT LESS CURRENT MATURITIES                                       175,000          2,877,502           180,131                 -                      -                     -                3,232,633

DEFERRED CREDITS AND OTHER
      Deferred income taxes                                                   19,582          1,215,862                 -                 -                 4,089               (13,735) (b)            1,225,798
      Regulatory liabilities                                                       -            635,431                 -                 -                     -                     -                   635,431
      Liability for asset retirements                                              -            268,389                 -                 -                     -                     -                   268,389
      Liabilities for pension and other postretirement benefits               13,437            551,531            17,636                 -                 6,248                     -                   588,852
      Liabilities from risk management and trading activities                 36,114            135,056                 -                 -                     -                     -                   171,170
      Unamortized gain - sale of utility plant                                     -             41,182                 -                 -                     -                     -                    41,182
      Other                                                                   23,218            302,700            60,757                 -                 1,137                     -                   387,812
         Total deferred credits and other                                     92,351          3,150,151            78,393                 -                11,474               (13,735)                3,318,634

COMMON STOCK EQUITY
      Common stock, no par value                                           2,587,650          2,244,080            90,053           14,046                 50,283           (2,871,562) (c)             2,114,550
      Treasury stock at cost                                                    (449)                 -                 -                -                      -                    -                       (449)
         Total common stock                                                2,587,201          2,244,080            90,053           14,046                 50,283           (2,871,562)                 2,114,101
      Accumulated other comprehensive income (loss):
         Pension and other postretirement benefits                           (11,031)                 -            (4,411)                -                (3,821)                   -                    (19,263)
         Derivative instruments                                               28,543              2,988                 -                 -                     -                    -                     31,531
         Total accumulated other comprehensive income (loss)                  17,512 -            2,988   -        (4,411) -              - -              (3,821) -                 -                     12,268
      Retained earnings                                                      895,284            960,405           185,309            (4,925)                6,075             (722,401) (c)             1,319,747
         Total common stock equity                                         3,499,997 -        3,207,473   -       270,951 -           9,121 -              52,537 -         (3,593,963)                 3,446,116

TOTAL LIABILITIES AND COMMON STOCK EQUITY                              $   3,974,756     $   10,513,692       $   607,311      $    34,448      $          80,800      $    (3,755,064)           $    11,455,943

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a)   Elimination of intercompany receivables and payables.
(b)   Miscellaneous reclassifications.
(c)   Elimination of Parent Company equity interest in subsidiaries.
Pages 10-11       2006 Statistical Report                                                                                                                                                                                    Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(DOLLARS AND SHARES IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)




YEAR ENDED DECEMBER 31,                                                                                                        2006             2005             2004             2003             2002             2001

OPERATING REVENUES
      Regulated electricity segment                                                                                    $   2,635,036    $   2,237,145    $   2,035,247    $   1,978,075    $   1,890,391    $   1,984,305
      Real estate segment                                                                                                    399,798          338,031          350,315          361,604          201,081          168,908
      Marketing and trading                                                                                                  330,742          351,558          400,628          391,196          286,879          469,784
      Other revenues                                                                                                          36,172           61,221           42,816           27,929           26,899           11,771
        Total                                                                                                              3,401,748        2,987,955        2,829,006        2,758,804        2,405,250        2,634,768

OPERATING EXPENSES
      Regulated electricity segment fuel and purchased power                                                                 960,649          595,141          567,433          517,320          376,911          583,080
      Real estate segment operations                                                                                         324,861          278,366          284,194          305,974          185,925          153,462
      Marketing and trading fuel and purchased power                                                                         290,637          293,091          320,667          344,862          154,987          152,762
      Operations and maintenance                                                                                             691,277          635,827          592,320          548,732          584,538          530,095
      Depreciation and amortization                                                                                          358,644          347,652          391,597          435,140          422,299          427,903
      Taxes other than income taxes                                                                                          128,395          132,040          120,722          110,270          107,952          101,068
      Other expense                                                                                                           28,415           51,987           34,108           23,254           21,895           10,375
      Regulatory disallowance                                                                                                      -          138,562                -                -                -                -
        Total                                                                                                              2,782,878        2,472,666        2,311,041        2,285,552        1,854,507        1,958,745

OPERATING INCOME                                                                                                            618,870          515,289          517,965          473,252          550,743          676,023

OTHER
      Allowance for equity funds used during construction                                                                     14,312           11,191            4,885           14,240                -                -
      Other income                                                                                                            44,016           23,360           53,289           35,563           14,910           26,416
      Other expenses                                                                                                         (27,800)         (26,716)         (21,340)         (20,574)         (33,655)         (33,577)
         Total                                                                                                                30,528            7,835           36,834           29,229          (18,745)          (7,161)

INTEREST EXPENSE
      Interest charges                                                                                                      196,826          185,087          183,527          193,973          187,039          175,822
      Capitalized interest                                                                                                  (20,989)         (12,018)         (11,460)         (19,078)         (43,749)         (47,862)
         Total                                                                                                              175,837          173,069          172,067          174,895          143,290          127,960

INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES                                                                       473,561          350,055          382,732          327,586          388,708          540,902

INCOME TAXES                                                                                                                156,418          126,892          136,142          102,202          152,145          213,535

INCOME FROM CONTINUING OPERATIONS                                                                                           317,143          223,163          246,590          225,384          236,563          327,367
      Cumulative effect of change in accounting for derivatives -
         net of income tax benefit of $9,892                                                                                       -               -                 -                -                -          (15,201)
      Cumulative effect of a change in accounting for trading activities -
         net of income tax benefit of $43,123                                                                                     -                 -                -               -           (65,745)               -
      Income (loss) from discontinued operations - net of income tax expense (benefit) (a)                                   10,112           (46,896)          (3,395)         15,195           (21,410)               -

NET INCOME                                                                                                             $    327,255     $    176,267     $    243,195     $    240,579     $    149,408     $    312,166

WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - BASIC                                                                           99,417           96,484           91,397           91,265           84,903           84,718
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING - DILUTED                                                                        100,010           96,590           91,532           91,405           84,964           84,930

EARNINGS PER WEIGHTED-AVERAGE COMMON SHARE OUTSTANDING
      Income from continuing operations - basic                                                                        $        3.19    $        2.31    $        2.70    $        2.47    $        2.79    $        3.86
      Net income - basic                                                                                               $        3.29    $        1.83    $        2.66    $        2.64    $        1.76    $        3.68
      Income from continuing operations - diluted                                                                      $        3.17    $        2.31    $        2.69    $        2.47    $        2.78    $        3.85
      Income (loss) from discontinued operations - net of income taxes
         Silverhawk                                                                                                                -            (0.69)           (0.12)               -                -                -
         SunCor                                                                                                                 0.10             0.17             0.04             0.11             0.11                -
         NAC                                                                                                                       -             0.03             0.05             0.05            (0.36)               -
           Total                                                                                                                0.10            (0.49)           (0.03)            0.16            (0.25)               -
      Cumulative effect of change in accounting - net of income taxes                                                              -                -                -                -            (0.77)           (0.17)
      Net income - diluted                                                                                             $        3.27    $        1.82    $        2.66    $        2.63    $        1.76    $        3.68

DIVIDENDS DECLARED PER SHARE                                                                                           $      2.025     $      1.925     $      1.825     $      1.725     $      1.625     $      1.525

(a)   Income tax expense (benefit): 2006, $6,570; 2005, ($29,797); 2004, ($1,805); 2003,$9,887; and 2002, ($14,045).
Pages 12-13    2006 Statistical Report                                                                                                                                   Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                                                2006              2005              2004             2003            2002            2001

ASSETS

CURRENT ASSETS
    Cash and cash equivalents                                      $       87,210    $      154,003    $      163,366    $    131,062    $     77,566    $     28,619
    Investment in debt securities                                          32,700                 -           181,175          91,850               -               -
    Customer and other receivables                                        501,628           502,681           461,090         443,295         457,091         457,706
    Allowance for doubtful accounts                                        (5,597)           (4,979)           (4,896)         (9,223)         (9,607)        (14,334)
    Materials and supplies (at average cost)                              125,802           109,736           101,333          96,099          91,652          81,215
    Fossil fuel (at average cost)                                          21,973            23,658            20,512          28,367          28,185          27,023
    Deferred income taxes                                                     982                 -                 -               -           4,094               -
    Assets from risk management and trading activities                    641,040           827,779           166,896          97,630         102,664          66,973
    Assets held for sale                                                        -           202,645                 -               -               -               -
    Assets related to discontinued operations                                   -                 -                 -          23,065          42,339               -
    Other current assets                                                   68,924            75,869            47,654          72,649          66,388          48,366
       Total current assets                                             1,474,662         1,891,392         1,137,130         974,794         860,372         695,568

INVESTMENTS AND OTHER ASSETS
    Real estate investments - net                                         526,008           390,702          382,398          358,441         384,427         417,711
    Assets from long-term risk management and trading activities          167,211           597,831          224,341          138,946         191,754         200,351
    Decommissioning trust accounts                                        343,771           293,943          267,700          240,645         194,440         202,036
    Other assets                                                          111,388           111,931          107,212           88,473          76,843         135,216
      Total investments and other assets                                1,148,378         1,394,407          981,651          826,505         847,464         955,314

PROPERTY, PLANT AND EQUIPMENT
    Plant in service and held for future use                           11,154,919        10,727,695        10,486,648        9,904,874       9,058,900       8,030,847
    Less accumulated depreciation and amortization                      3,797,475         3,622,884         3,365,954        3,145,609       2,917,552       2,742,721
       Net                                                              7,357,444         7,104,811         7,120,694        6,759,265       6,141,348       5,288,126
    Construction work in progress                                         368,284           327,172           258,119          554,876         777,542       1,047,072
    Intangible assets, net of accumulated amortization                     96,100            90,916           105,486          108,534         109,815          86,782
    Nuclear fuel, net of accumulated amortization                          60,100            54,184            51,188           52,011          51,124          49,282
       Total property, plant and equipment                              7,881,928         7,577,083         7,535,487        7,474,686       7,079,829       6,471,262

DEFERRED DEBITS
    Deferred fuel and purchased power regulatory asset                   160,268           172,756                 -                -               -               -
    Other regulatory assets                                              686,016           151,123           135,051          132,349         241,045         342,383
    Other deferred debits                                                104,691           135,884           107,428          110,708         110,447          64,597
      Total deferred debits                                              950,975           459,763           242,479          243,057         351,492         406,980

TOTAL ASSETS                                                       $   11,455,943    $   11,322,645    $    9,896,747    $   9,519,042   $   9,139,157   $   8,529,124
Pages 14-15    2006 Statistical Report                                                                                                                                  Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                                             2006              2005             2004             2003             2002             2001

LIABILITIES AND COMMON STOCK EQUITY

CURRENT LIABILITIES
    Accounts payable                                            $      346,047    $      377,107    $     373,526    $     283,021    $     332,441    $     268,521
    Accrued taxes                                                      263,935           289,235          245,611           69,769           71,107           96,729
    Accrued interest                                                    48,746            31,774           38,795           51,825           53,018           48,806
    Short-term borrowings                                               35,750            15,673           71,030           86,081          227,683          405,762
    Current maturities of long-term debt                                 1,596           384,947          617,165          704,914          280,888          126,140
    Customer deposits                                                   70,168            60,509           55,558           49,783           42,190           30,232
    Deferred income taxes                                                    -            94,710            9,057              631                -            3,244
    Liabilities from risk management and trading activities            558,195           720,693          113,406           92,755          111,329           35,994
    Liabilities related to discontinued operations                           -                 -                -           16,427           28,855                -
    Other current liabilities                                          134,123           297,425          101,748           77,362           85,585           70,078
       Total current liabilities                                     1,458,560         2,272,073        1,625,896        1,432,568        1,233,096        1,085,506

LONG-TERM DEBT LESS CURRENT MATURITIES                               3,232,633         2,608,455        2,584,985        2,616,585        2,743,741        2,673,078

DEFERRED CREDITS AND OTHER
    Deferred income taxes                                            1,225,798         1,225,253        1,227,553        1,338,527        1,209,074        1,064,993
    Regulatory liabilities                                             635,431           592,494          506,646          468,694           26,264           27,355
    Liability for asset retirements                                    268,389           269,011          251,612          234,440          600,431          589,725
    Liabilities for pension and other postretirement benefits          588,852           264,476          234,445          188,041          183,880           49,032
    Liabilities from risk management and trading activities            171,170           256,413          156,262           82,730          147,900          207,576
    Unamortized gain - sale of utility plant                            41,182            45,757           50,333           54,909           59,484           64,060
    Other                                                              387,812           363,749          308,819          272,769          249,134          268,476
       Total deferred credits and other                              3,318,634         3,017,153        2,735,670        2,640,110        2,476,167        2,271,217

COMMON STOCK EQUITY
    Common stock, no par value                                       2,114,550         2,067,377        1,769,047        1,744,354        1,737,258        1,536,924
    Treasury stock at cost                                                (449)           (1,245)            (428)          (3,273)          (4,358)          (5,886)
       Total common stock                                            2,114,101         2,066,132        1,768,619        1,741,081        1,732,900        1,531,038
    Accumulated other comprehensive income (loss):
       Pension and other postretirement benefits                       (19,263)          (97,277)         (81,788)         (66,564)         (71,264)            (966)
       Derivative instruments                                           31,531           262,397           59,243           27,563          (20,020)         (63,599)
       Total accumulated other comprehensive income (loss)              12,268           165,120          (22,545)         (39,001)         (91,284)         (64,565)
    Retained earnings                                                1,319,747         1,193,712        1,204,122        1,127,699        1,044,537        1,032,850
       Total common stock equity                                     3,446,116         3,424,964        2,950,196        2,829,779        2,686,153        2,499,323

TOTAL LIABILITIES AND COMMON STOCK EQUITY                       $   11,455,943    $   11,322,645    $   9,896,747    $   9,519,042    $   9,139,157    $   8,529,124
Pages 16-17    2006 Statistical Report                                                                                                                                   Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                                   2006              2005              2004            2003            2002              2001

CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                       $     327,255     $     176,267     $     243,195     $   240,579     $   149,408     $     312,166
Adjustments to reconcile net income to
      net cash provided by operating activities:
     Silverhawk impairment loss                                              -            91,025                 -               -               -                 -
     Regulatory disallowance                                                 -           138,562                 -               -               -                 -
     Cumulative effect of accounting change, net of tax                      -                 -                 -               -          65,745            15,201
     Equity earnings in Phoenix Suns partnership                             -                 -           (34,594)              -               -                 -
     Depreciation and amortization including nuclear fuel              386,760           381,604           432,161         466,900         456,071           456,265
     Deferred fuel and purchased power                                (252,849)         (172,756)                -               -               -                 -
     Deferred fuel and purchased power amortization                    265,337                 -                 -               -               -                 -
     Allowance for equity funds used during construction               (14,312)          (11,191)           (4,885)        (14,240)              -                 -
     Deferred income taxes                                              27,738           (23,806)         (113,850)         85,462         196,324           (17,203)
     Change in mark-to-market valuations                                28,464           (11,670)          (18,915)         17,410         (18,146)         (133,573)
     Redhawk Units 3 and 4 cancellation charge                               -                 -                 -               -          49,192                 -
Changes in current assets and liabilities:
     Customer and other receivables                                      9,189           (38,763)          (11,056)          2,346          21,831           145,016
     Materials, supplies and fossil fuel                                (9,094)          (16,836)            2,621          (4,629)        (11,599)          (16,867)
     Other current assets                                               10,673           (28,215)           25,380          (6,646)         (7,247)               64
     Accounts payable                                                  (46,055)           (6,392)           85,344         (34,303)         53,659          (128,017)
     Accrued taxes                                                     (22,329)           43,624           175,842          (1,338)        (36,039)            7,483
     Other current liabilities                                          21,763             1,567            10,561           3,725          (3,676)           38,212
Proceeds from the sale of real estate assets                            34,990            16,218            80,035         130,597          57,121            35,783
Real estate investments                                               (126,229)          (88,055)          (62,812)        (51,837)        (56,355)          (80,603)
Change in risk management and trading - liabilities                   (133,197)          110,393            13,018         (11,613)        (22,783)           45,330
Collateral                                                            (165,828)          192,040            12,619         (10,453)         22,136                 -
Change in pension and other postretirement liabilities                   7,488             3,116            23,822          19,074          (1,571)          (28,347)
Change in other long-term assets                                        20,330           (97,893)          (39,215)         40,812         (45,632)          (54,664)
Change in other long-term liabilities                                   23,408            71,457            31,621          30,177           8,979           (25,203)
     Net cash flow provided by operating activities                    393,502           730,296           850,892         902,023         877,418           571,043

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures                                                   (737,779)         (633,532)         (538,842)       (713,256)       (911,579)       (1,055,574)
Capitalized interest                                                    (20,990)          (12,018)          (16,311)        (29,444)        (44,110)          (47,862)
Purchase of Sundance Plant                                                    -          (185,046)                -               -               -                 -
Proceeds from sale of Silverhawk                                        207,620                 -            90,967               -               -                 -
Proceeds from the sale of the Phoenix Suns partnership                        -                 -            23,101               -               -                 -
Purchases of investment securities                                   (1,439,404)       (2,962,278)       (1,040,955)       (877,660)              -                 -
Proceeds from sale of investment securities                           1,406,704         3,143,481           951,630         785,810               -                 -
Proceeds from nuclear decommissioning trust sales                       254,651           186,215           123,795         168,874         103,516            68,730
Investment in nuclear decommissioning trust                            (275,393)         (204,633)         (135,239)       (180,319)       (114,961)          (80,383)
Proceeds from sale of real estate investments                            39,621            82,719                 -          46,781           9,272                 -
Other                                                                    (3,763)                -            (3,072)         (9,595)         48,080            (4,828)
     Net cash flow used for investing activities                       (568,733)         (585,092)         (544,926)       (808,809)       (909,782)       (1,119,917)

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt                                             757,636          1,088,815          478,328          656,850         674,919          995,447
Repayment of long-term debt                                           (527,864)        (1,288,034)        (604,015)        (368,162)       (351,670)        (621,057)
Short-term borrowings and payments - net                                 9,911            (46,413)         (15,051)        (173,303)       (306,079)         322,987
Dividends paid on common stock                                        (201,220)          (186,677)        (166,772)        (157,417)       (137,721)        (129,199)
Common stock equity issuance                                            39,548            298,168           18,291                -         199,238                -
Other                                                                   30,427            (20,426)           9,690            8,181           2,624           (1,048)
     Net cash flow provided by (used for) financing activities         108,438           (154,567)        (279,529)         (33,851)         81,311          567,130

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                   (66,793)            (9,363)          26,437          59,363          48,947            18,256

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                         154,003           163,366           136,929          77,566          28,619            10,363

CASH AND CASH EQUIVALENTS AT END OF YEAR                         $      87,210     $     154,003     $     163,366     $   136,929     $    77,566     $      28,619
Page 18      2006 Statistical Report                                                                                                                                            Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
(DOLLARS PER SHARE)



                                                                             2006              2005              2004              2003              2002              2001

BOOK VALUE PER SHARE AT YEAR-END
APS                                                                $         32.09    $        30.14    $        24.32    $        24.12    $        23.63    $        25.35
SunCor                                                                        2.71              2.27              2.39              2.84              3.41              3.61
El Dorado                                                                     0.09              0.13              0.10             (0.34)            (0.42)             0.20
APS Energy Services                                                           0.53              0.53              0.48              0.66              0.65              0.51
Pinnacle West Energy                                                             -              2.16              8.38             10.65              6.62              0.99
Parent Company                                                               (0.94)            (0.65)            (3.53)            (6.96)            (4.49)            (1.20)
     Total                                                         $         34.48    $        34.58    $        32.14    $        30.97    $        29.40    $        29.46


COMMON SHARES OUTSTANDING AT YEAR-END                                   99,958,647        99,057,075        91,802,861        91,379,947        91,379,947        84,824,947




EARNINGS PER SHARE - DILUTED
APS                                                                $          2.70    $         1.77    $         2.18    $         1.98    $         2.35    $         3.30
SunCor                                                                        0.50              0.40              0.45              0.50              0.11              0.04
El Dorado                                                                    (0.03)            (0.02)             0.36             (0.01)            (0.06)                -
APS Energy Services                                                          (0.03)            (0.06)             0.03              0.18              0.33             (0.12)
Pinnacle West Energy                                                             -             (0.89)            (0.63)            (0.08)            (0.23)             0.21
Parent Company                                                                0.03              1.11              0.30             (0.10)             0.28              0.42
     Income from continuing operations                                        3.17              2.31              2.69              2.47              2.78              3.85


      Income (loss) from discontinued operations - net (a)
         Silverhawk                                                              -             (0.69)            (0.12)                -                 -                 -
         SunCor                                                               0.10              0.17              0.04              0.11              0.11                 -
         NAC                                                                     -              0.03              0.05              0.05             (0.36)                -
            Total                                                             0.10             (0.49)            (0.03)             0.16             (0.25)                -

      Cumulative effect of change in accounting - net (a)                        -                 -                 -                 -             (0.77)            (0.17)
          Total net income                                         $          3.27    $         1.82    $         2.66    $         2.63    $         1.76    $         3.68


WEIGHTED-AVERAGE COMMON SHARES
  OUTSTANDING - DILUTED                                                100,010,108        96,589,949        91,532,473        91,405,134        84,963,921        84,930,140

STOCK PRICE HISTORY

High                                                               $         51.00    $        46.68    $        45.84    $        40.48    $        46.68    $        50.70
Low                                                                          38.31             39.81             36.30             28.34             21.70             37.65
Close                                                                        50.69             41.35             44.41             40.02             34.09             41.85

(a)   Net of income tax expense (benefit) for respective period.
Page 19   2006 Statistical Report                                                                                                     Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
NON-UTILITY LONG-TERM DEBT SCHEDULE
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                        2006           2005           2004           2003           2002          2001

PARENT COMPANY

NOTES PAYABLE
    6.87% senior notes due 2003               $         -   $         -    $         -    $         -    $    25,000    $    25,000
    4.50% senior notes due 2004                         -             -              -        215,000        215,000              -
    6.40% senior notes due 2006                         -       298,518        302,589        300,000        300,000        300,000
    5.91% senior notes due 2011                   175,000             -              -              -              -              -
    Floating-rate notes due 2003                        -             -              -              -        250,000        250,000
    Floating-rate senior notes due 2005                 -             -        165,000        165,000              -              -
Unamortized discount and premium                        -           (29)          (143)          (270)          (530)             -
OTHER LONG-TERM DEBT
     Capitalized lease obligations                    115           284            389          1,243          1,999          1,066
Total Parent Company                              175,115       298,773        467,835        680,973        791,469        576,066

SUNCOR

REVOLVING CREDIT
     Variable-rate facility due 2003 - 2008       118,000       123,000              -              -              -        128,000
NOTES PAYABLE
     Variable-rate notes due 2001 - 2009           62,316         6,040         15,467         17,125          7,647          7,912
BONDS PAYABLE
     5.95% bonds due 2024                               -             -              -              -              -          5,215
     6.75% bonds due 2026                               -             -              -              -              -          7,500
OTHER LONG-TERM DEBT
     Capitalized lease obligations                    328           266            507            728          1,299              -
Total SunCor                                      180,644       129,306         15,974         17,853          8,946        148,627

TOTAL NON-UTILITY LONG-TERM
 DEBT INCLUDING CURRENT MATURITIES            $   355,759   $   428,079    $   483,809    $   698,826    $   800,415    $   724,693
Pages 20-21       2006 Statistical Report                                                                                                                                                                                                                                                                                  Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED ELECTRIC OPERATING REVENUE ANALYSIS




YEAR ENDED DECEMBER 31,                                                                                            2006                                                 2005                                       2004                          2003                          2002                           2001

ELECTRIC OPERATING REVENUES (dollars in thousands)

REGULATED ELECTRICITY SEGMENT
      Retail sales
         Residential                                                                               $         1,270,521                  42.8 %                $ 1,079,223                    41.7 %        $     983,525       40.4 %    $     956,553       40.4 %    $     906,069        41.6 %    $     914,711              37.3 %
         Commercial                                                                                          1,051,660                  35.5                      881,432                    34.0                830,419       34.1            808,901       34.1            791,728        36.4            805,326              32.8
         Industrial                                                                                            170,021                   5.7                      144,554                     5.6                133,682        5.5            130,603        5.5            122,234         5.6            133,663               5.4
         Irrigation                                                                                              2,172                   0.1                        1,745                     0.1                  1,900        0.1              1,898        0.1              2,257         0.1              1,975               0.1
         Other                                                                                                  15,806                   0.5                       13,203                     0.5                 12,438        0.5             11,818        0.5             11,554         0.5             11,663               0.5
             Total retail                                                                                    2,510,180                  84.6                    2,120,157                    81.9              1,961,964       80.6          1,909,773       80.6          1,833,842        84.2          1,867,338              76.1
      Wholesale revenue on delivered electricity
         Traditional contracts                                                                                  21,782                   0.7                         22,708                   0.9                 16,545        0.7             15,301        0.6              8,616         0.4             73,305               3.0
         Off-system sales (a)                                                                                   46,140                   1.5                         39,643                   1.5                      -          -                  -          -                  -           -                  -                 -
      Transmission for others                                                                                   25,690                   0.9                         26,109                   1.0                 31,847        1.3             28,098        1.2             29,803         1.4             25,971               1.1
      Other miscellaneous services                                                                              31,244                   1.1                         28,528                   1.1                 24,891        1.0             24,903        1.1             18,130         0.8             17,691               0.7
             Total regulated electricity                                                                     2,635,036                  88.8                      2,237,145                  86.4              2,035,247       83.6          1,978,075       83.5          1,890,391        86.8          1,984,305              80.9
MARKETING AND TRADING
     Electricity and other commodity sales                                                                     330,742                  11.2                      351,558                    13.6              400,628         16.4          391,196         16.5          286,879          13.2          469,784                19.1
Total electric operating revenues                                                                  $         2,965,778                  100.0 %               $ 2,588,703                   100.0 %        $ 2,435,875         100.0 %   $ 2,369,271         100.0 %   $ 2,177,270          100.0 %   $ 2,454,089                100.0 %

INCREASE (DECREASE) VS. PRIOR YEAR
      Retail revenues                                                                                               18.4    %                                             8.1    %                                   2.7   %                       4.1   %                      (1.8)   %                       2.8    %
      Regulated electricity revenues                                                                                17.8    %                                             9.9    %                                   2.9   %                       4.6   %                      (4.7)   %                     (21.8)   %
      Marketing and trading revenues                                                                                (5.9)   %                                           (12.2)   %                                   2.4   %                      36.4   %                     (38.9)   %                      12.2    %
      Total electric operating revenues                                                                             14.6    %                                             6.3    %                                   2.8   %                       8.8   %                     (11.3)   %                     (17.0)   %

AVERAGE RETAIL REVENUE PER kWh
      Residential                                                                                                   9.78    ¢                                            8.83    ¢                                  8.53   ¢                      8.58   ¢                      8.68    ¢                      8.85    ¢
      Commercial                                                                                                    8.52    ¢                                            7.52    ¢                                  7.36   ¢                      7.38   ¢                      7.48    ¢                      7.67    ¢
      Industrial                                                                                                    6.87    ¢                                            6.05    ¢                                  5.57   ¢                      5.62   ¢                      5.57    ¢                      5.49    ¢
      Irrigation                                                                                                    8.70    ¢                                            7.53    ¢                                  7.35   ¢                      7.13   ¢                      7.06    ¢                      7.35    ¢
      Total retail                                                                                                  8.97    ¢                                            8.01    ¢                                  7.74   ¢                      7.78   ¢                      7.85    ¢                      7.98    ¢

(a)   Consistent with a 2005 ACC regulatory decision, off-system sales began being recorded in the regulated electricity segment in April 2005. Previously, they were recorded in marketing and trading.
Pages 22-23       2006 Statistical Report                                                                                                                                                                                                                                                      Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED ELECTRIC SALES ANALYSIS




YEAR ENDED DECEMBER 31,                                                                                               2006                                                    2005                              2004                       2003                        2002                        2001

ELECTRIC SALES (MWh)

REGULATED ELECTRICITY SEGMENT
      Retail sales
         Residential                                                                                         12,993,961                   26.8 %                     12,223,576                   22.1 %   11,527,402       19.5 %    11,147,195        20.3 %    10,443,820        21.2 %    10,334,860        23.7 %
         Commercial                                                                                          12,348,200                   25.5                       11,726,801                   21.2     11,289,523       19.1      10,961,417        19.9      10,589,065        21.5      10,504,044        24.1
         Industrial                                                                                           2,475,311                    5.1                        2,388,095                    4.3      2,397,916        4.1       2,322,074         4.2       2,192,958         4.4       2,433,438         5.6
         Irrigation                                                                                              24,960                    0.1                           23,179                    0.1         25,865        0.1          26,626         0.1          31,964         0.1          26,860           -
         Other                                                                                                  127,965                    0.3                          115,900                    0.2        112,617        0.2         104,993         0.2         103,948         0.2          99,810         0.2
             Total retail                                                                                    27,970,397                   57.8                       26,477,551                   47.9     25,353,323       43.0      24,562,305        44.7      23,361,755        47.4      23,399,012        53.6
      Wholesale electricity delivered
         Traditional contracts                                                                                  882,796                    1.8                          850,069                    1.5        709,128        1.2         499,949         0.9         473,699         1.0       1,213,704         2.8
         Off-system sales (a)                                                                                 1,612,972                    3.3                        1,335,851                    2.4              -          -               -           -               -           -               -           -
         Retail load hedge management                                                                         1,590,191                    3.3                        3,009,879                    5.5      2,732,296        4.6       1,093,846         2.0       2,641,714         5.3       3,039,905         7.0
             Total regulated electricity                                                                     32,056,356                   66.2                       31,673,350                   57.3     28,794,747       48.8      26,156,100        47.6      26,477,168        53.7      27,652,621        63.4
MARKETING AND TRADING
     Wholesale sales of electricity                                                                          16,354,450                  33.8                        23,571,541                  42.7      30,177,639        51.2     28,802,754         52.4     22,853,883         46.3     16,000,857         36.6
Total electric sales                                                                                         48,410,806                 100.0 %                      55,244,891                 100.0 %    58,972,386       100.0 %   54,958,854        100.0 %   49,331,051        100.0 %   43,653,478        100.0 %

INCREASE (DECREASE) VS. PRIOR YEAR
      Retail sales                                                                                                     5.6    %                                                4.4    %                           3.2   %                    5.1    %                   (0.2)   %                    3.8    %
      Regulated electricity sales                                                                                      1.2    %                                               10.0    %                          10.1   %                   (1.2)   %                   (4.3)   %                  (10.3)   %
      Marketing and trading sales                                                                                    (30.6)   %                                              (21.9)   %                           4.8   %                   26.0    %                   42.8    %                   16.7    %
      Total electric sales                                                                                           (12.4)   %                                               (6.3)   %                           7.3   %                   11.4    %                   13.0    %                   (2.0)   %

(a)   Consistent with a 2005 ACC regulatory decision, off-system sales began being recorded in the regulated electricity segment in April 2005. Previously, they were recorded in marketing and trading.
Pages 24-25       2006 Statistical Report                                                                                                                                                                                             Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED MARKETING AND TRADING GROSS MARGIN SUMMARY
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                                                                                       2006                          2005                2004           2003            2002           2001



REALIZED AND MARK-TO-MARKET COMPONENTS
Current-period effects
     Electricity and other commodity sales, realized                                                         $             53,851             $          54,863           $    63,525    $    65,063    $   121,310    $   183,318
     Mark-to-market reversals on realized sales                                                                           (14,095)                      (16,303)               (5,203)       (10,739)       (41,422)         6,303
Change in mark-to-market value of forward sales                                                                               350                        19,907                21,401         (7,300)        52,004        127,401
Total gross margin before income taxes                                                                       $             40,106             $          58,467           $    79,723    $    47,024    $   131,892    $   317,022


BY COMMODITY SOLD OR TRADED
Electricity                                                                                                  $             42,255             $          52,596           $    74,999    $   51,167     $   146,366    $   327,586
Other commodities                                                                                                          (2,149)                        5,871                 4,724        (4,143)        (14,474)       (10,564)
Total gross margin before income taxes                                                                       $             40,106             $          58,467           $    79,723    $   47,024     $   131,892    $   317,022


BY PINNACLE WEST ENTITY

Parent Company marketing and trading division (a)                                                            $             17,865             $          58,830           $    25,115    $   (5,653)    $    90,451    $    77,754
APS (a)                                                                                                                    13,469                        (6,486)               (5,435)        8,361           1,392        235,249
Pinnacle West Energy                                                                                                            -                         4,945                46,049         8,300           4,189              -
APS Energy Services                                                                                                         8,772                         1,178                13,994        36,016          35,860          4,019
Total gross margin before income taxes                                                                       $             40,106             $          58,467           $    79,723    $   47,024     $   131,892    $   317,022


ACCUMULATED MARK-TO-MARKET GAINS AT YEAR-END (b)                                                             $             30,179             $          44,884           $    39,279    $   23,083     $    41,233    $   137,926

(a)   Due to regulatory policy changes, marketing and trading was moved to the Parent Company from APS during 2001, and it was moved back to APS in early 2003.
(b)   As of December 31, 2006, Pinnacle West had accumulated net mark-to-market gains of $30 million related to our power marketing and trading activities.
      We estimate that these gains will be reclassified to realized gains as the underlying commodities are delivered, as follows: 2007, $16 million; and 2008, $14 million.
Page 26     2006 Statistical Report                                                                                                                                                           Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED SOURCE AND DISPOSITION OF ELECTRIC ENERGY AND FUEL MIX




YEAR ENDED DECEMBER 31,                                                                                  2006           2005           2004           2003           2002           2001

CONSOLIDATED SOURCE OF ENERGY (MWh)

Steam generation
     Nuclear                                                                                         6,987,559      7,508,820      8,183,262      8,314,712      8,980,814      8,384,724
     Coal                                                                                           13,175,265     13,060,080     12,665,720     11,366,560     12,055,956     12,573,954
     Gas                                                                                               183,003        182,670        299,181        265,180        456,582      1,359,747
     Oil                                                                                                     -              -          3,415         12,475              -        127,670
Combustion turbines
     Gas                                                                                              152,804        119,707        102,937         99,032        224,678        803,031
     Oil                                                                                                   59            719          3,052          2,115          2,847        100,585
Combined cycle
     Gas                                                                                             7,038,421      7,377,789      4,882,938      5,677,345      3,653,015      1,567,869
     Oil                                                                                                     -              -              -              -            144             60
Hydro and solar                                                                                         10,137         20,601         36,549         34,920         31,536         33,660
     Total generation                                                                               27,547,248     28,270,386     26,177,054     25,772,339     25,405,572     24,951,300
Purchased power (a)
     Firm load                                                                                       4,290,839      3,473,733      4,325,147      3,111,269      1,618,531      2,961,204
     Marketing and trading                                                                          18,867,585     25,712,900     30,192,226     27,750,329     23,704,278     17,652,902
        Total                                                                                       23,158,424     29,186,633     34,517,373     30,861,598     25,322,809     20,614,106
Total source of energy                                                                              50,705,672     57,457,019     60,694,427     56,633,937     50,728,381     45,565,406

CONSOLIDATED DISPOSITION OF ENERGY (MWh)

Sales to ultimate customers                                                                         27,970,397     26,477,551     25,353,323     24,562,305     23,361,755     23,399,012
Sales for resale (a)                                                                                20,440,409     28,766,259     33,619,063     30,396,549     25,969,296     20,254,466
Losses and company use                                                                               2,294,866      2,213,209      1,722,041      1,675,083      1,397,330      1,911,928
     Total disposition of energy                                                                    50,705,672     57,457,019     60,694,427     56,633,937     50,728,381     45,565,406

CONSOLIDATED ENERGY FUEL MIX (%)
      Nuclear                                                                                             13.8 %         13.1 %         13.5 %         14.7 %         17.7 %         18.4 %
      Coal                                                                                                26.0           22.7           20.8           20.1           23.8           27.6
      Gas                                                                                                 14.5           13.4            8.7           10.7            8.5            8.2
      Other (b)                                                                                              -              -            0.1            0.1            0.1            0.6
      Purchased power and interchange - net                                                               45.7           50.8           56.9           54.4           49.9           45.2
         Total                                                                                           100.0 %        100.0 %        100.0 %        100.0 %        100.0 %        100.0 %

(a)   Purchased power and sales for resale include interchange purchases and sales, respectively.
(b)   "Other" includes oil, hydro and solar generation.
Page 27     2006 Statistical Report                                                                                                              Pinnacle West Capital Corporation



PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATED POWER PLANT OPERATING PERFORMANCE




YEAR ENDED DECEMBER 31,                                                       2006       2005       2004       2003       2002        2001

NUCLEAR (NET CAPACITY FACTORS)
      Palo Verde Unit 1                                                       42.3   %   66.2   %   84.6   %   97.2   %    89.1   %   87.8   %
      Palo Verde Unit 2                                                       85.2   %   81.9   %   90.9   %   77.6   %    92.0   %   92.6   %
      Palo Verde Unit 3                                                       85.5   %   83.9   %   75.1   %   87.5   %   102.0   %   83.9   %
      Palo Verde site average                                                 70.7   %   77.4   %   83.7   %   87.4   %    94.4   %   88.1   %

COAL (NET CAPACITY FACTORS)
      Four Corners                                                            87.2   %   89.5   %   86.5   %   84.5   %    82.7   %   85.6   %
      Cholla                                                                  86.5   %   85.4   %   82.2   %   65.1   %    77.5   %   81.2   %
      Navajo                                                                  87.1   %   84.2   %   82.7   %   74.8   %    80.4   %   84.7   %
      Total coal average                                                      86.9   %   87.1   %   84.2   %   75.8   %    80.4   %   83.8   %

GAS/OIL (NET CAPACITY FACTORS)
      Redhawk                                                                 57.0   %   46.4   %   28.9   %   45.9   %    58.3   %   N/A
      West Phoenix                                                            23.8   %   27.2   %   18.6   %   30.9   %    32.7   %   46.4 %
      Other (a)                                                                2.8   %   17.1   %    8.5   %    4.8   %     8.6   %   29.8 %
      Total gas/oil average                                                   25.4   %   28.1   %   18.5   %   27.1   %    26.5   %   35.5 %

GAS/OIL (EQUIVALENT AVAILABILITY FACTORS)
      Redhawk                                                                 94.4   %   94.7   %   92.0   %   85.0   %    75.6   %   N/A
      West Phoenix                                                            89.6   %   88.9   %   90.9   %   90.2   %    91.7   %   83.8 %
      Other (a)                                                               95.9   %   92.4   %   90.2   %   88.7   %    86.2   %   85.6 %
      Total gas/oil average                                                   93.6   %   92.1   %   91.1   %   87.8   %    85.3   %   85.0 %

(a)   Includes Octotillo, Saguaro, Sundance, Yucca, Douglas and Silverhawk.
Pages 28-29       2006 Statistical Report                                                                                                                                                                                                                              Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
SELECTED FINANCIAL DATA




                                                                                                               2006                      2005                2004               2003               2002                2001

OPERATING STATISTICS
      Electric operating revenues (thousands)                                                    $      2,658,513               $    2,270,793      $    2,197,121     $    2,104,931     $    1,936,166      $    2,352,098
      Sales (MWh)                                                                                      39,991,804                   46,824,014          57,214,618         44,799,324         29,057,497          33,230,065
      Employees (year-end) (a)                                                                              6,655                        6,484               6,203              6,155              6,110               6,322
      Average annual use per residential customer (kWh)                                                    13,876                       13,635              13,418             13,457             13,025              13,312

FINANCIAL STATISTICS
      Cash interest coverage (b)                                                                               4.81 x                     4.09 x              3.65 x             4.71 x             6.92 x              5.96 x
      Non-cash income as percent of earnings (c)                                                               25.7 %                     41.9 %              19.4 %             26.0 %             20.4 %              14.4 %
      Net cash flow as percent of capital expenditures (b)                                                     81.0 %                     36.9 %              45.2 %             91.7 %            130.6 %             105.6 %

CAPITALIZATION RATIOS (year-end)
      Long-term debt excluding current maturities                                                              47.3 %                     44.7 %              45.8 %             44.2 %             50.6 %              44.3 %
      Current maturities of long-term debt                                                                        -                        1.5                 9.1               10.1                0.1                 2.9
      Short-term debt                                                                                             -                          -                   -                  -                  -                 3.9
        Total debt                                                                                             47.3                       46.2                54.9               54.3               50.7                51.1
      Common stock equity                                                                                      52.7                       53.8                45.1               45.7               49.3                48.9
        Total capitalization                                                                                  100.0 %                    100.0 %             100.0 %            100.0 %            100.0 %             100.0 %

      Debt adjusted for Palo Verde Unit 2 sale and leaseback                                                   49.9 %                     49.3 %              58.0 %             57.7 %             54.9 %              55.4 %

(a)   Includes APS, Parent Company and marketing and trading employees who support the regulated electricity retail business.
(b)   Includes recovery of fuel costs through various PSA adjustors and surcharges, as well as base rates.
(c)   Non-cash income includes capitalized interest and other significant items resulting from regulatory orders.



ARIZONA PUBLIC SERVICE COMPANY
HISTORICAL GROWTH RATES
                                                                                                                                                                                                                                  Compound Annual Growth Rates
                                                                                                                                                                                                                                       5 Years             10 Years
                                                                                                               2006                      2005                2004               2003               2002                2001          2001-2006            1996-2006

Electric operating revenues
     Total                                                                                                     17.1 %                      3.4 %               4.4 %              8.7 %            (17.7) %            (19.8) %            2.5 %               4.5 %
     Retail                                                                                                    18.3 %                      8.0 %               2.4 %              3.9 %             (1.2) %              2.8 %             6.1 %               4.7 %

Peak load
     Actual                                                                                                         9.3 %                  9.3 %               1.1 %              9.1 %              2.0 %               3.8 %             6.1 %               5.3 %
     Weather-normalized                                                                                             2.9 %                  7.2 %               6.3 %              5.2 %              6.3 %              (2.7) %            5.5 %               5.1 %

Electric sales
     Total                                                                                                    (14.6) %                   (18.2) %             27.7 %             54.2 %            (12.6) %            (24.6) %            3.8 %               6.0 %
     Retail                                                                                                     5.6 %                      4.4 %               3.2 %              5.1 %             (0.2) %              3.8 %             3.6 %               3.9 %

Customers (average)                                                                                                 4.4 %                  4.3 %               3.7 %              3.3 %              3.1 %               3.7 %             3.8 %               3.9 %

Employees (year-end)                                                                                                2.6 %                  4.5 %               0.8 %              0.7 %             (3.4) %              3.5 %             1.0 %               0.7 %
Pages 30-31   2006 Statistical Report                                                                                                                                                                Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                                                                 2006             2005            2004             2003             2002             2001

ELECTRIC OPERATING REVENUES
    Regulated electricity                                                                       $   2,640,989    $   2,244,951   $   2,051,602    $   1,999,390    $   1,902,112    $   1,984,305
    Marketing and trading                                                                              17,524           25,842         145,519          105,541           34,054          367,793
        Total                                                                                       2,658,513        2,270,793       2,197,121        2,104,931        1,936,166        2,352,098

FUEL AND PURCHASED POWER
    Regulated electricity                                                                            965,712          656,654         612,300          606,251          438,141          649,405
    Marketing and trading                                                                              4,055           32,328         150,954           97,180           32,662          132,544
        Total                                                                                        969,767          688,982         763,254          703,431          470,803          781,949

OPERATING REVENUES LESS FUEL AND PURCHASED POWER                                                    1,688,746        1,581,811       1,433,867        1,401,500        1,465,363        1,570,149

OTHER OPERATING EXPENSES
    Operations and maintenance                                                                        665,631          591,941         540,277          513,604          495,845          465,561
    Depreciation and amortization                                                                     353,057          325,174         336,648          389,240          399,640          420,893
    Income taxes                                                                                      144,127          157,273         113,696           91,646          132,953          183,640
    Other taxes                                                                                       127,989          125,810         114,265          108,852          107,925          101,077
         Total                                                                                      1,290,804        1,200,198       1,104,886        1,103,342        1,136,363        1,171,171

OPERATING INCOME                                                                                     397,942          381,613         328,981          298,158          329,000          398,978

OTHER INCOME (DEDUCTIONS)
    Regulatory disallowance                                                                                 -        (138,562)               -                -                -                -
    Income taxes                                                                                        5,200          59,263           (6,334)           4,792            6,148              504
    Allowance for equity funds used during construction                                                14,312          11,191            4,885           14,240                -                -
    Other income                                                                                       31,902          22,141           30,593           20,277            5,149           20,207
    Other expense                                                                                     (23,830)        (23,204)         (13,816)         (12,962)         (19,338)         (20,790)
         Total                                                                                         27,584         (69,171)          15,328           26,347           (8,041)             (79)

INCOME BEFORE INTEREST DEDUCTIONS                                                                    425,526          312,442         344,309          324,505          320,959          398,899

INTEREST DEDUCTIONS
    Interest on long-term debt                                                                       149,240          138,476         140,556          142,706          128,462          126,118
    Interest on short-term borrowings                                                                  9,529            7,026           6,427            4,904            5,416            4,407
    Debt discount, premium and expense                                                                 4,363            4,085           4,854            3,337            2,888            2,650
    Allowance for borrowed funds used during construction                                             (7,336)          (7,624)         (7,155)          (7,379)         (15,150)         (14,964)
          Total                                                                                      155,796          141,963         144,682          143,568          121,616          118,211

INCOME BEFORE CUMULATIVE EFFECT ADJUSTMENT                                                           269,730          170,479         199,627          180,937          199,343          280,688
    Cumulative effect of change in accounting for derivatives - net of income taxes of $9,892               -                -               -                -                -          (15,201)

NET INCOME                                                                                      $    269,730     $    170,479    $    199,627     $    180,937     $    199,343     $    265,487
Pages 32-33    2006 Statistical Report                                                                                                                       Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
BALANCE SHEETS
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                                      2006              2005             2004            2003            2002            2001

ASSETS

UTILITY PLANT
    Electric plant in service and held for future use    $   11,094,868    $   10,682,999    $   9,120,407   $   8,826,033   $   8,299,131   $   7,935,206
    Less accumulated depreciation and amortization            3,789,534         3,616,886        3,266,181       3,089,645       2,885,798       2,739,957
          Net                                                 7,305,334         7,066,113        5,854,226       5,736,388       5,413,333       5,195,249
    Construction work in progress                               365,704           314,584          249,243         187,478         329,089         321,305
    Intangible assets, net of accumulated amortization           95,601            90,327          103,701          94,181          93,259          83,135
    Nuclear fuel, net of accumulated amortization                60,100            54,184           51,188          52,011          51,124          49,282
          Total utility plant                                 7,826,739         7,525,208        6,258,358       6,070,058       5,886,805       5,648,971

INVESTMENTS AND OTHER ASSETS
    Notes receivable from Pinnacle West Energy                       -                 -          498,489         497,865               -               -
    Decommissioning trust accounts                             343,771           293,943          267,700         240,645         194,440         202,036
    Assets from risk management and trading activities          96,892           234,372           20,123          18,001          31,622           2,082
    Other assets                                                67,763            64,128           61,364          64,119          57,380         108,159
         Total investments and other assets                    508,426           592,443          847,676         820,630         283,442         312,277

CURRENT ASSETS
    Cash and cash equivalents                                    81,870            49,933          49,575          42,152          42,549          16,821
    Investment in debt securities                                32,700                 -         181,175          69,850               -               -
    Customer and other receivables                              410,436           421,621         353,772         329,925         412,457         313,896
    Allowance for doubtful accounts                              (4,223)           (3,568)         (3,444)         (3,743)         (1,341)         (3,349)
    Materials and supplies (at average cost)                    125,802           109,736          83,893          80,682          79,985          81,215
    Fossil fuel (at average cost)                                21,973            23,658          20,506          28,360          28,185          27,023
    Assets from risk management and trading activities          539,308           532,923          70,430          52,448          39,616          10,097
    Deferred income taxes                                        19,220                 -               -               -           4,094               -
    Other                                                        13,367            14,639          10,187           6,969           7,945          10,172
         Total current assets                                 1,240,453         1,148,942         766,094         606,643         613,490         455,875

DEFERRED DEBITS
    Deferred fuel and purchased power regulatory asset         160,268           172,756                -               -               -               -
    Other regulatory assets                                    686,016           151,123          135,051         132,349         241,045         342,383
    Unamortized debt issue costs                                26,393            25,279           21,832          19,797          16,696          13,163
    Other                                                       65,397            91,690           69,541          73,056          80,760          42,789
         Total deferred debits                                 938,074           440,848          226,424         225,202         338,501         398,335

TOTAL ASSETS                                             $   10,513,692    $    9,707,441    $   8,098,552   $   7,722,533   $   7,122,238   $   6,815,458
Pages 34-35    2006 Statistical Report                                                                                                                             Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
BALANCE SHEETS
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                                          2006            2005             2004             2003             2002             2001

LIABILITIES AND EQUITY

CAPITALIZATION
   Common stock                                              $      178,162   $     178,162    $     178,162    $     178,162    $     178,162    $     178,162
   Additional paid-in capital                                     2,065,918       1,853,098        1,246,804        1,246,804        1,246,804        1,246,804
   Retained earnings                                                960,405         860,675          860,196          830,569          819,632          790,289
   Accumulated other comprehensive income (loss):
     Minimum pension liability adjustment                                 -         (86,132)         (71,087)         (57,158)         (61,487)            (966)
     Derivative instruments                                           2,988         179,422           18,327            5,253          (23,799)         (63,599)
   Common stock equity                                            3,207,473       2,985,225        2,232,402        2,203,630        2,159,312        2,150,690
   Long-term debt less current maturities                         2,877,502       2,479,703        2,267,094        2,135,606        2,217,340        1,949,074
     Total capitalization                                         6,084,975       5,464,928        4,499,496        4,339,236        4,376,652        4,099,764

CURRENT LIABILITIES
   Commercial paper                                                       -               -                -               -                -          171,162
   Current maturities of long-term debt                                 968          85,620          451,247         487,067            3,503          125,451
   Accounts payable                                                 223,417         215,384          215,076         131,383          118,133           98,959
   Accrued taxes                                                    381,444         360,737          292,521          90,474           82,557          107,595
   Accrued interest                                                  45,254          25,003           33,332          42,702           42,608           41,043
   Customer deposits                                                 61,900          55,474           51,804          45,481           39,865           28,664
   Deferred income taxes                                                  -          64,210            9,057             631                -            3,244
   Liabilities from risk management and trading activities          490,855         480,138           34,292          58,138           59,773           21,840
   Other                                                             74,728         227,398           91,441          60,008           51,820           18,798
      Total current liabilities                                   1,278,566       1,513,964        1,178,770         915,884          398,259          616,756

DEFERRED CREDITS AND OTHER
   Deferred income taxes                                          1,215,862       1,215,403        1,108,571        1,257,671        1,225,552        1,023,079
   Regulatory liabilities                                           635,431         592,494          506,646          468,694           26,264           27,355
   Liability for asset retirements                                  268,389         269,011          251,612          234,440          600,431          589,725
   Pension and other postretirement liabilities                     551,531         233,342          203,668          160,639          156,442           30,247
   Customer advances for construction                                71,211          60,287           59,185           52,783           45,513           69,293
   Unamortized gain - sale of utility plant                          41,182          45,757           50,333           54,909           59,484           64,060
   Liabilities from risk management and trading activities          135,056          83,774           13,124            4,502           36,678           95,159
   Other                                                            231,489         228,481          227,147          233,775          196,963          200,020
      Total deferred credits and other                            3,150,151       2,728,549        2,420,286        2,467,413        2,347,327        2,098,938

TOTAL LIABILITIES AND EQUITY                                 $   10,513,692   $   9,707,441    $   8,098,552    $   7,722,533    $   7,122,238    $   6,815,458
Pages 36-37    2006 Statistical Report                                                                                                                                                    Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
STATEMENTS OF CASH FLOWS
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                                                      2006              2005            2004              2003            2002            2001

CASH FLOWS FROM OPERATING ACTIVITIES
Net income                                                                          $     269,730     $     170,479     $   199,627     $     180,937     $   199,343     $   265,487
Adjustments to reconcile net income to net cash provided by operating activities:
     Regulatory disallowance                                                                    -           138,562                -                -               -                -
     Depreciation and amortization including nuclear fuel                                 381,173           353,082          367,094          417,997         430,825          449,255
     Deferred fuel and purchased power                                                   (252,849)         (172,756)               -                -               -                -
     Deferred fuel and purchased power amortization                                       265,337                 -                -                -               -                -
     Allowance for equity funds used during construction                                  (14,312)          (11,191)          (4,885)         (14,240)              -                -
     Deferred income taxes                                                                   (305)            9,659         (140,855)          (1,087)        206,767          (26,516)
     Change in derivative mark-to-market valuations                                         6,893             3,492          (15,807)           2,339           2,957         (100,030)
     Cumulative effect of change in accounting, net of tax                                      -                 -                -                -               -           15,201
Changes in current assets and liabilities:
     Customer and other receivables                                                        20,970           (56,152)        (24,146)           85,106         (99,234)         302,283
     Materials, supplies and fossil fuel                                                  (14,381)          (12,268)          4,643              (872)             68          (16,867)
     Other current assets                                                                   3,666            (2,592)         (2,529)              976           2,227           (5,385)
     Accounts payable                                                                       5,825           (12,372)         88,937            17,961          15,372         (190,141)
     Accrued taxes                                                                         23,678            67,454         202,047             7,917         (25,038)           1,080
     Collateral                                                                          (175,799)          169,080           5,671            11,431           3,873                -
     Other current liabilities                                                             45,125           (37,781)         22,715             9,737          41,916          (56,806)
Change in risk management and trading - liabilities                                      (121,833)          115,495           8,879                 -               -                -
Change in risk management and trading - assets                                            (74,208)           15,449          (6,845)           12,551         (22,570)          10,730
Change in pension and other postretirement liabilities                                      7,406           (10,730)         22,361            17,395          (7,016)         (35,244)
Change in other long-term assets                                                            2,828           (24,752)        (37,541)          (14,623)        (35,531)         (31,483)
Change in other long-term liabilities                                                      14,769            19,732          28,772            43,599          (9,447)          23,511
     Net cash flow provided by operating activities                                       393,713           721,890         718,138           777,124         704,512          605,075

CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures                                                                      (648,743)         (609,857)       (513,677)         (426,260)       (490,156)       (465,360)
Transfer of PWEC Dedicated Assets to APS                                                         -          (500,000)              -                 -               -               -
Purchase of Sundance plant                                                                       -          (185,046)              -                 -               -               -
Allowance for borrowed funds used during construction                                       (7,336)           (7,624)         (7,155)           (7,379)        (15,150)        (14,964)
Purchases of investment securities                                                      (1,291,903)       (1,476,623)       (871,610)         (855,660)              -               -
Proceeds from sale of investment securities                                              1,259,203         1,657,798         760,285           785,810               -               -
Proceeds from nuclear decommissioning trust sales                                          254,651           186,215         123,795           168,874         103,516          68,730
Investment in nuclear decommissioning trust                                               (275,393)         (204,633)       (135,239)         (180,319)       (114,961)        (80,383)
Loan to Pinnacle West Energy                                                                     -                 -               -          (497,865)              -               -
Repayment of loan by Pinnacle West Energy                                                        -           500,000               -                 -               -               -
Other                                                                                       (4,470)           (5,372)         10,639             3,149          56,363         (30,273)
     Net cash flow used for investing activities                                          (713,991)         (645,142)       (632,962)       (1,009,650)       (460,388)       (522,250)

CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of long-term debt                                                                395,481           411,787          478,140          491,654          459,926         396,072
Short-term borrowings                                                                           -                 -                -                -         (171,162)         89,062
Equity infusion                                                                           212,820           250,000                -                -                -               -
Dividends paid on common stock                                                           (170,000)         (170,000)        (170,000)        (170,000)        (170,000)       (170,000)
Repayment and reacquisition of long-term debt                                             (86,086)         (568,177)        (385,893)         (89,525)        (337,160)       (383,747)
     Net cash flow provided by (used for) financing activities                            352,215           (76,390)         (77,753)         232,129         (218,396)        (68,613)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                                       31,937               358            7,423             (397)         25,728          14,212

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR                                             49,933            49,575          42,152            42,549          16,821            2,609

CASH AND CASH EQUIVALENTS AT END OF YEAR                                            $      81,870     $      49,933     $    49,575     $      42,152     $    42,549     $    16,821
Page 38   2006 Statistical Report                                                                                           Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
LONG-TERM DEBT SCHEDULE
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                  2006          2005          2004          2003          2002          2001

FIRST MORTGAGE BONDS
    8.125% series due March 15, 2002    $         -   $         -   $         -   $         -   $         -   $   125,000
    6.625% series due March 1, 2004               -             -             -        80,000        80,000        80,000
    7.25% series due Aug. 1, 2023                 -             -             -             -        54,150        54,150
    8.75% series due Jan. 15, 2024                -             -             -             -             -       121,668
    8% series due Feb. 1, 2025                    -             -             -             -        33,075        33,075
    5.5% series due Aug. 15, 2028                 -             -             -        25,000        25,000        25,000
    5.875% series due Aug. 15, 2028               -             -             -       154,000       154,000       154,000
    Total first mortgage bonds                    -             -             -       259,000       346,225       592,893

POLLUTION CONTROL BONDS
    Due May 1, 2029 with senior notes        90,000        90,000        90,000        90,000        90,000        90,000
    Due May 1, 2024                          49,400        49,400        49,400        49,400        49,400        49,400
    Due Sept. 1, 2024                        65,750        65,750        65,750        65,750        65,750        65,750
    Due Sept. 1, 2024                        31,500        31,500        31,500        31,500        31,500        31,500
    Due May 1, 2029                         163,975       163,975       106,980       106,980       106,980       106,980
    Due May 1, 2029                               -             -        57,000        57,000        57,000        57,000
    Due Oct. 1, 2029                         32,650        32,650        32,650        32,650        32,650        32,650
    Due Dec. 1, 2031                          6,710         6,710         6,710         6,710         6,710         6,710
    Due Nov. 1, 2033                         16,870        16,870        16,870        16,870        16,870        16,870
    Due April 1, 2034                        20,000        20,000        20,000        20,000        20,000        20,000
    Due June 1, 2034                        179,000       179,000       179,000             -             -             -
    Total pollution control bonds       $   655,855   $   655,855   $   655,860   $   476,860   $   476,860   $   476,860
Page 39   2006 Statistical Report                                                                                                                           Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
LONG-TERM DEBT SCHEDULE
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                            2006              2005              2004              2003              2002              2001

OTHER LONG-TERM DEBT
     5.875% unsecured notes due Feb. 15, 2004   $           -     $           -     $           -     $     125,000     $     125,000     $     125,000
     6.25% unsecured notes due Jan. 15, 2005                -                 -           100,000           100,000           100,000           100,000
     7.625% unsecured notes due Aug. 1, 2005                -                 -           300,000           300,000           300,000           300,000
     6.75% senior notes due Nov. 15, 2006                   -            83,695            83,695            83,695            83,695            83,695
     6.375% unsecured notes due Oct. 15, 2011         400,000           400,000           400,000           400,000           400,000           400,000
     6.50% unsecured notes due Mar. 1, 2012           375,000           375,000           375,000           375,000           375,000                 -
     5.80% unsecured notes due June 30, 2014          300,000           300,000           300,000                 -                 -                 -
     6.00% secured notes due Dec. 31, 2014              1,592             1,745             1,900                 -                 -                 -
     4.65% unsecured notes due May 15, 2015           300,000           300,000           300,000           300,000                 -                 -
     5.625% unsecured notes due May 15, 2033          200,000           200,000           200,000           200,000                 -                 -
     5.50% senior notes due Sept. 1, 2035             250,000           250,000                 -                 -                 -                 -
     6.25% senior notes due Aug. 1, 2016              250,000                 -                 -                 -                 -                 -
     6.875% senior notes due Aug. 1, 2036             150,000                 -                 -                 -                 -                 -
     Capitalized lease obligation                       5,880             8,179             9,854            11,749            20,400             1,343
     Total other long-term debt                     2,232,472         1,918,619         2,070,449         1,895,444         1,404,095         1,010,038
Unamortized discount and premium                       (9,857)           (9,151)           (7,968)           (8,631)           (6,337)           (5,266)
Total long-term debt                                2,878,470         2,565,323         2,718,341         2,622,673         2,220,843         2,074,525


LESS CURRENT MATURITIES
     First mortgage bonds                                   -                 -                -           (80,000)                 -         (125,000)
     Senior notes                                           -           (83,695)        (400,000)         (125,000)                 -                -
     Secured notes                                       (162)             (152)               -                 -                  -                -
     Pollution control bonds                                -                 -          (49,520)                -                  -                -
     Capitalized lease obligation                        (806)           (1,773)          (1,727)           (1,727)            (3,503)            (451)
Total current maturities                                 (968)          (85,620)        (451,247)         (206,727)            (3,503)        (125,451)

LONG-TERM DEBT LESS CURRENT MATURITIES          $   2,877,502     $   2,479,703     $   2,267,094     $   2,415,946     $   2,217,340     $   1,949,074

WEIGHTED-AVERAGE INTEREST RATE ON
  LONG-TERM DEBT AT YEAR-END                             5.49 %            4.83 %            5.13 %            5.48 %            5.72 %            6.54 %
Pages 40-41       2006 Statistical Report                                                                                                                                                                                                                                                                                  Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
ELECTRIC OPERATING REVENUE ANALYSIS




YEAR ENDED DECEMBER 31,                                                                                           2006                                               2005                                          2004                          2003                          2002                           2001

ELECTRIC OPERATING REVENUES (dollars in thousands)

REGULATED ELECTRICITY SEGMENT
      Retail sales
         Residential                                                                               $        1,270,521                47.8 %                $ 1,079,223                  47.5 %             $     983,525       44.8 %    $     960,303       45.6 %    $     912,245        47.1 %    $     914,711                38.9 %
         Commercial                                                                                         1,051,660                39.5                      881,432                  38.8                     830,419       37.8            811,642       38.5            795,999        41.1            805,326                34.2
         Industrial                                                                                           170,021                 6.4                      145,490                   6.4                     135,982        6.2            132,146        6.3            123,508         6.4            133,663                 5.7
         Irrigation                                                                                             2,172                 0.1                        1,745                   0.1                       1,900        0.1              1,898        0.1              2,257         0.1              1,975                 0.1
         Other                                                                                                 15,806                 0.6                       13,203                   0.6                      12,438        0.6             11,818        0.6             11,554         0.6             11,663                 0.5
             Total retail                                                                                   2,510,180                94.4                    2,121,093                  93.4                   1,964,264       89.5          1,917,807       91.1          1,845,563        95.3          1,867,338                79.4
      Wholesale revenue on delivered electricity
         Traditional contracts                                                                                 21,782                 0.8                         22,708                 1.0                      16,545        0.8             15,301        0.7              8,616         0.5             73,305                 3.1
         Off-system sales (a)                                                                                  46,140                 1.7                         39,643                 1.8                           -          -                  -          -                  -           -                  -                   -
      Transmission for others                                                                                  30,754                 1.2                         31,879                 1.4                      45,146        2.0             41,379        2.0             29,803         1.5             25,971                 1.1
      Other miscellaneous services                                                                             32,133                 1.2                         29,628                 1.3                      25,647        1.2             24,903        1.2             18,130         0.9             17,691                 0.8
             Total regulated electricity                                                                    2,640,989                99.3                      2,244,951                98.9                   2,051,602       93.5          1,999,390       95.0          1,902,112        98.2          1,984,305                84.4
MARKETING AND TRADING (b)
     Electricity and other commodity sales                                                                     17,524                0.7                        25,842                  1.1                    145,519           6.5         105,541           5.0          34,054            1.8         367,793                  15.6
Total electric operating revenues                                                                  $        2,658,513              100.0 %                 $ 2,270,793                100.0 %              $ 2,197,121         100.0 %   $ 2,104,931         100.0 %   $ 1,936,166          100.0 %   $ 2,352,098                 100.0 %

INCREASE (DECREASE) VS. PRIOR YEAR
      Retail revenues                                                                                              18.3    %                                           8.0    %                                      2.4   %                      3.9    %                      (1.2)   %                       2.8    %
      Regulated electricity revenues                                                                               17.6    %                                           9.4    %                                      2.6   %                      5.1    %                      (4.1)   %                     (21.8)   %
      Marketing and trading revenues                                                                              (32.2)   %                                         (82.2)   %                                     37.9   %                    209.9    %                     (90.7)   %                      (7.0)   %
      Total electric operating revenues                                                                            17.1    %                                           3.4    %                                      4.4   %                      8.7    %                     (17.7)   %                     (19.8)   %

AVERAGE RETAIL REVENUE PER kWh
      Residential                                                                                                  9.78    ¢                                          8.83    ¢                                     8.53   ¢                      8.61   ¢                      8.73    ¢                      8.85    ¢
      Commercial                                                                                                   8.52    ¢                                          7.52    ¢                                     7.36   ¢                      7.40   ¢                      7.52    ¢                      7.67    ¢
      Industrial                                                                                                   6.87    ¢                                          6.09    ¢                                     5.67   ¢                      5.69   ¢                      5.63    ¢                      5.49    ¢
      Irrigation                                                                                                   8.70    ¢                                          7.53    ¢                                     7.35   ¢                      7.13   ¢                      7.06    ¢                      7.35    ¢
      Total retail                                                                                                 8.97    ¢                                          8.01    ¢                                     7.75   ¢                      7.81   ¢                      7.90    ¢                      7.98    ¢

REVENUE PER AVERAGE CUSTOMER (dollars)
      Residential                                                                                  $             1,357                                     $        1,204                                  $      1,145                  $      1,159                  $      1,138                   $      1,178
      Commercial and industrial                                                                    $            10,710                                     $        9,350                                  $      9,136                  $      9,274                  $      9,297                   $      9,698

(a)   Consistent with a 2005 ACC regulatory decision, off-system sales began being recorded in the regulated electricity segment in April 2005. Previously, they were recorded in marketing and trading.
(b)   Due to regulatory policy changes, marketing and trading was moved to the Parent Company from APS during 2001, and it was moved back to APS in early 2003.
Pages 42-43       2006 Statistical Report                                                                                                                                                                                                                                                        Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
ELECTRIC SALES ANALYSIS




YEAR ENDED DECEMBER 31,                                                                                         2006                                               2005                                         2004                       2003                        2002                        2001

ELECTRIC SALES (MWh)

REGULATED ELECTRICITY SEGMENT
      Retail sales
         Residential                                                                                    12,993,961                 32.5 %                 12,223,576               26.1 %                  11,527,402       20.1 %    11,147,195        24.9 %    10,443,820        35.9 %    10,334,860         31.1 %
         Commercial                                                                                     12,348,200                 30.9                   11,726,801               25.0                    11,289,523       19.7      10,961,417        24.5      10,589,065        36.4      10,504,044         31.6
         Industrial                                                                                      2,475,311                  6.2                    2,388,095                5.1                     2,397,916        4.2       2,322,074         5.2       2,192,958         7.6       2,433,438          7.3
         Irrigation                                                                                         24,960                  0.1                       23,179                0.1                        25,865        0.1          26,626         0.1          31,964         0.1          26,860          0.1
         Other                                                                                             127,965                  0.3                      115,900                0.2                       112,617        0.2         104,993         0.2         103,948         0.4          99,810          0.3
             Total retail                                                                               27,970,397                 70.0                   26,477,551               56.5                    25,353,323       44.3      24,562,305        54.9      23,361,755        80.4      23,399,012         70.4
      Wholesale electricity delivered
         Traditional contracts                                                                             882,796                  2.2                      850,069                1.8                       709,128        1.2         499,949         1.1         473,699         1.6       1,213,704          3.7
         Off-system sales (a)                                                                            1,919,342                  4.8                    1,413,643                3.0                             -          -               -           -               -           -               -            -
         Retail load hedge management                                                                    1,590,141                  4.0                    2,979,879                6.4                     2,732,296        4.8       1,093,846         2.4       3,523,478        12.1       3,039,905          9.1
             Total regulated electricity                                                                32,362,676                 81.0                   31,721,142               67.7                    28,794,747       50.3      26,156,100        58.4      27,358,932        94.1      27,652,621         83.2
MARKETING AND TRADING (b)
     Wholesale sales of electricity                                                                      7,629,128                19.0                    15,102,872               32.3                    28,419,871        49.7     18,643,224         41.6      1,698,565          5.9      5,577,444         16.8
Total electric sales                                                                                    39,991,804               100.0 %                  46,824,014              100.0 %                  57,214,618       100.0 %   44,799,324        100.0 %   29,057,497        100.0 %   33,230,065        100.0 %

INCREASE (DECREASE) VS. PRIOR YEAR
      Retail sales                                                                                                5.6    %                                          4.4    %                                      3.2   %                    5.1    %                   (0.2)   %                    3.8    %
      Regulated electricity sales                                                                                 2.0    %                                         10.2    %                                     10.1   %                   (4.4)   %                   (1.1)   %                  (10.3)   %
      Marketing and trading sales                                                                               (49.5)   %                                        (46.9)   %                                     52.4   %                  997.6    %                  (69.5)   %                  (57.9)   %
      Total electric sales                                                                                      (14.6)   %                                        (18.2)   %                                     27.7   %                   54.2    %                  (12.6)   %                  (24.6)   %

ANNUAL USE PER AVERAGE CUSTOMER (kWh)
      Residential                                                                                            13,876                                            13,635                                         13,418                     13,457                      13,025                      13,312
      Commercial and industrial                                                                             129,948                                           128,514                                        129,392                    130,529                     129,241                     133,625

(a)   Consistent with a 2005 ACC regulatory decision, off-system sales began being recorded in the regulated electricity segment in April 2005. Previously, they were recorded in marketing and trading.
(b)   Due to regulatory policy changes, marketing and trading was moved to the Parent Company from APS during 2001, and it was moved back to APS in early 2003.
Page 44     2006 Statistical Report                                                                                                                                                                 Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
CUSTOMER DATA




YEAR ENDED DECEMBER 31,                                                                                       2006               2005          2004          2003          2002          2001

CUSTOMERS - AVERAGE

     Residential                                                                                          936,464              896,472      859,069       828,366       801,801       776,339
     Commercial                                                                                           110,547              106,374      102,393        98,427        95,575        93,499
     Industrial                                                                                             3,526                3,458        3,390         3,340         3,325         3,320
     Irrigation                                                                                               345                  336          339           341           346           366
     Other                                                                                                  1,013                1,000          993           988           982         1,013
         Total retail                                                                                   1,051,895            1,007,640      966,184       931,462       902,029       874,537
     Sales for resale                                                                                          77                   78           81            66            67            66
Total average customers                                                                                 1,051,972            1,007,718      966,265       931,528       902,096       874,603

INCREASE OVER PRIOR YEAR                                                                                        4.4 %              4.3 %         3.7 %         3.3 %         3.1 %         3.7 %


CUSTOMERS - END OF YEAR

     Residential                                                                                          957,337              920,420      880,232       848,334       819,821       793,931
     Commercial                                                                                           112,918              108,216      104,503       100,285        96,805        94,250
     Industrial                                                                                             3,562                3,477        3,428         3,361         3,337         3,251
     Irrigation                                                                                               344                  337          343           334           339           364
     Other                                                                                                  1,030                  973          996           937           949         1,009
         Total retail                                                                                   1,075,191            1,033,423      989,502       953,251       921,251       892,805
     Sales for resale                                                                                          78                   77           78            66            67            66
Total end of year customers                                                                             1,075,269            1,033,500      989,580       953,317       921,318       892,871

INCREASE OVER PRIOR YEAR                                                                                        4.0 %              4.4 %         3.8 %         3.5 %         3.2 %         3.2 %



ARIZONA PUBLIC SERVICE COMPANY
LOADS AND RESOURCES AT PEAK




YEAR ENDED DECEMBER 31,                                                                                       2006               2005          2004          2003          2002          2001

PEAK LOAD (kW)
      Actual                                                                                            7,652,000            6,999,600     6,402,100     6,332,400     5,802,900     5,687,200
      Weather-normalized (a)                                                                            7,293,000            7,090,700     6,615,000     6,221,300     5,916,500     5,567,800

Increase (decrease) vs. prior year
     Actual                                                                                                     9.3 %              9.3 %         1.1 %         9.1 %         2.0 %         3.8 %
     Weather-normalized                                                                                         2.9 %              7.2 %         6.3 %         5.2 %         6.3 %        (2.7) %

FIRM POWER SALES (kW)                                                                                   1,205,000             855,000      1,125,000     1,200,000      429,000         1,000

RESOURCES AVAILABLE AT PEAK (kW)
      Generating capacity                                                                               5,706,000            3,820,000     3,570,600     3,736,500     3,877,600     3,234,500
      Purchase power contracts (b)                                                                      3,522,000            4,653,000     4,187,000     4,198,000     2,612,000     2,490,000
         Total resources                                                                                9,228,000            8,473,000     7,757,600     7,934,500     6,489,600     5,724,500

RESERVE MARGIN                                                                                                  7.0 %             19.3 %         6.9 %        12.1 %         7.1 %         1.1 %

ANNUAL LOAD FACTOR - NET                                                                                       48.0 %             50.0 %        52.2 %        50.9 %        52.6 %        53.2 %

(a)   Prior years have been revised to reflect average weather statistics for the ten-year period ended December 31, 2005.
(b)   Including firm seasonal purchases and unit contingent purchases.
Page 45     2006 Statistical Report                                                                                                                                                                                                Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
RATE REGULATION




DETAILED INFORMATION ON REGULATORY MATTERS                                                                            Pending General Rate Case
Regulatory developments are discussed in detail in a number of sections of the 2006 Annual Report on                  On December 15, 2006, hearings concluded in APS' general rate case (originally filed in November 2005
Form 10-K for Pinnacle West and APS. See "Regulation and Competition" in Item 1; "Factors Affecting Our               and updated in January 2006). The major provisions of the filing include a 20.4% retail rate increase
Financial Outlook" in Management's Discussion and Analysis of Financial Condition and Results of                      (approximately $435 million pretax annually); updated base fuel and purchased power costs;
Operations in Item 7; and Note 3 of Notes to Consolidated Financial Statements, "Regulatory Matters," in Item 8.      updated rate base including the acquisition of the Sundance power plant; and updated capital
                                                                                                                      structure with a proposed return on common equity of 11.5%.

STATE REGULATION                                                                                                      Interim Rate Increase
The Arizona Corporation Commission (ACC) regulates APS' retail electric rates and its issuance of securities          In early 2006, APS filed with the ACC an application requesting an emergency interim rate
The ACC also must approve any transfer of APS' property used to provide retail electric service and must              increase of $232 million, or approximately 11%, to be effective April 1, 2006. The purpose of
approve or receive prior notification of certain transactions between APS, Pinnacle West and their                    the emergency interim rate increase was solely to address APS' under-collection of higher annual
respective affiliates.                                                                                                fuel and purchased power costs. On May 2, 2006, the ACC approved an interim rate increase
                                                                                                                      (interim PSA adjustor) of 8.3%, designed to recover approximately $138 million of PSA deferrals.
ACC Organization                                                                                                      On December 8, 2006, the ACC approved APS' request to continue the interim PSA adjustor until
The ACC consists of five elected commissioners with staggered terms. The terms are four years each, with a            rates become effective as a result of the pending general rate case.
limit of two consecutive terms in office. Mid-term vacancies (due to resignation, etc.) are filled by
appointment of the Governor to serve until the next general election.                                                 As a result of the May 2006 interim PSA adjustor decision, the ACC ordered the ACC Staff to conduct
                                                                                                                      a “prudence audit” of 2006 unplanned Palo Verde outages. PSA deferrals related to these 2006 outages
                                                        Commissioner              Current                             are estimated to be about $79 million through December 31, 2006. Rates collected through the interim
Commissioner                                               Since               Term Expires                           PSA adjustor are subject to refund depending on the outcome of the prudence audit.
Michael Gleason (Rep.) (Chairman)                         January 2003         January 2009
Jeff Hatch-Miller (Rep.)                                  January 2003         January 2009
Kristin Mayes (Rep.)                                      October 2003         January 2011                           PSA Surcharges
William Mundell (Rep.)                                       June 1999         January 2009                           On April 12, 2006, the ACC approved APS’ request to recover $15 million of 2005 PSA deferrals over
Gary Pierce (Rep.)                                        January 2007         January 2011                           a twelve-month period beginning May 2, 2006, representing a temporary rate increase of 0.7%.

                                                                                                                      On February 2, 2006, APS filed with the ACC an application to recover approximately $45 million of
Test Period                                                                                                           PSA deferrals related to 2005 unplanned Palo Verde outages through a 1.9% surcharge over a
A historical test period has been used in rate cases; however, the ACC has discretion to consider matters             twelve-month period. The ACC Staff has recommended disallowance of approximately $17 million
subsequent to the end of the historical year.                                                                         of the requested amount. APS disagrees with and has contested the ACC Staff recommendation.
                                                                                                                      At the request of the ACC Staff, this matter is being addressed as part of APS’ pending general rate case.
Power Supply Adjustor
APS' power supply adjustor (PSA) was approved by the ACC in April 2005. The PSA provides adjustment
of retail rates to reflect variations in fuel and purchased power costs. APS defers for recovery or refund            FEDERAL REGULATION
90% of the difference between actual retail fuel and purchased power costs (as defined) and the base fuel             APS is subject to regulation by the U.S. Federal Energy Regulatory Commission (FERC) in certain
amount (currently $0.020743 per kWh). Net under/over recoveries are recognized as a deferred asset/liability          matters which include wholesale power sales and transmission services. The FERC is composed
with an offsetting amount recognized in fuel and purchased power expense.                                             of five commissioners who are appointed by the President, approved by Congress and serve
                                                                                                                      five-year terms.
Retail Rate Changes
The table below includes APS' retail rate changes since 2000:                                                         The FERC continues to address issues related to standard market design for wholesale markets,
                                                                              Annual Change                           regional transmission organizations to support non-discriminatory markets, and other issues
Type                                                 Effective Date             Millions                    Percent   related to restructuring wholesale power markets. APS is an active participant in these proceedings.
PSA Interim Adjustor                                 May 1, 2006              $        138                    8.3%
PSA Surcharge                                        May 2, 2006                         15                   0.7
PSA Annual Adjustor                                  February 1, 2007                  109                    5.0
PSA Annual Adjustor                                  February 1, 2006                  110                    5.0
Base Rate Increase                                   April 1, 2005                       76                   4.2
Base Rate Decrease                                   July 1, 2003                       (29)                 (1.5)
Base Rate Decrease                                   July 1, 2002                       (28)                 (1.5)
Base Rate Decrease                                   July 1, 2001                       (27)                 (1.5)
Base Rate Decrease                                   July 1, 2000                       (28)                 (1.5)
Page 46     2006 Statistical Report                                                                                                                                                           Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
SOURCE AND DISPOSITION OF ELECTRIC ENERGY AND FUEL MIX




YEAR ENDED DECEMBER 31,                                                                                  2006           2005           2004           2003           2002           2001

APS SOURCE OF ENERGY (MWh)
Steam generation
     Nuclear                                                                                         6,987,559      7,508,820      8,183,262      8,314,712      8,980,814      8,384,724
     Coal                                                                                           13,175,265     13,060,080     12,665,720     11,366,560     12,055,956     12,573,954
     Gas                                                                                               183,003        182,670        299,181        265,180        456,582      1,359,747
     Oil                                                                                                     -              -          3,415         12,475              -        127,670
Combustion turbines
     Gas                                                                                              152,804        114,598         90,706         72,533        169,925        734,743
     Oil                                                                                                   59            719          3,052          2,115          2,847        100,585
Combined cycle
     Gas                                                                                             6,967,368      3,051,405        620,437        687,677        862,940      1,131,172
     Oil                                                                                                     -              -              -              -            144             60
Hydro and solar                                                                                         10,137         20,601         36,549         34,920         31,536         33,660
     Total generation                                                                               27,476,195     23,938,893     21,902,322     20,756,172     22,560,744     24,446,315
Purchased power (a)
     Firm load                                                                                       4,290,839      6,181,170      6,513,677      6,717,242      3,944,335      3,466,189
     Marketing and trading                                                                          10,519,636     19,525,517     30,520,660     19,000,993      3,949,748      7,229,489
        Total purchased power                                                                       14,810,475     25,706,687     37,034,337     25,718,235      7,894,083     10,695,678
Total source of energy                                                                              42,286,670     49,645,580     58,936,659     46,474,407     30,454,827     35,141,993

APS DISPOSITION OF ENERGY (MWh)
Sales to ultimate customers                                                                         27,970,397     26,477,551     25,353,323     24,562,305     23,361,755     23,399,012
Sales for resale (a)                                                                                12,021,407     20,954,820     31,861,295     20,237,019      5,695,742      9,831,053
Losses and company use                                                                               2,294,866      2,213,209      1,722,041      1,675,083      1,397,330      1,911,928
Total disposition of energy                                                                         42,286,670     49,645,580     58,936,659     46,474,407     30,454,827     35,141,993

APS ENERGY FUEL MIX (%)
     Nuclear                                                                                              16.5 %         15.1 %         13.9 %         17.9 %         29.5 %         23.9 %
     Coal                                                                                                 31.2           26.3           21.4           24.5           39.6           35.8
     Gas                                                                                                  17.3            6.8            1.7            2.2            4.9            9.2
     Other (b)                                                                                               -              -            0.1            0.1            0.1            0.7
     Purchased power and interchange - net                                                                35.0           51.8           62.9           55.3           25.9           30.4
Total                                                                                                    100.0 %        100.0 %        100.0 %        100.0 %        100.0 %        100.0 %

(a)   Purchased power and sales for resale include interchange purchases and sales, respectively.
(b)   "Other" includes oil, hydro and solar generation.
Page 47     2006 Statistical Report                                                                          Pinnacle West Capital Corporation



ARIZONA PUBLIC SERVICE COMPANY
GENERATION RESOURCES
NET ACCREDITED CAPACITY




                                                                    Ownership or     Number of   APS Share
IN SERVICE AS OF DECEMBER 31, 2006         Location                   Interest (a)       Units        (kW)



NUCLEAR-FUELED STEAM PLANT
      Palo Verde                           Wintersburg, Arizona            29.1%            3    1,126,752

COAL-FUELED STEAM PLANTS
      Four Corners                         Farmington, New Mexico           100%            3      560,000
      Four Corners                         Farmington, New Mexico            15%            2      225,000
      Cholla                               Joseph City, Arizona             100%            3      641,000
      Navajo                               Page, Arizona                     14%            3      315,000
                                                                                           11    1,741,000

GAS- OR OIL-FUELED STEAM PLANTS
      Ocotillo                             Tempe, Arizona                   100%            2     220,000
      Saguaro                              Red Rock, Arizona                100%            2     210,000
                                                                                            4     430,000

GAS- OR OIL-FUELED COMBUSTION TURBINES
      Sundance                             Casa Grande, Arizona             100%           10     420,000
      Yucca                                Yuma, Arizona                    100%            4     147,000
      West Phoenix                         Phoenix, Arizona                 100%            2     110,000
      Ocotillo                             Tempe, Arizona                   100%            2     110,000
      Saguaro                              Red Rock, Arizona                100%            3     189,000
      Douglas                              Douglas, Arizona                 100%            1      16,000
                                                                                           22     992,000

GAS- OR OIL-FUELED COMBINED CYCLE PLANT
      West Phoenix                         Phoenix, Arizona                 100%            5      878,000
      Redhawk                              Arlington, Arizona               100%            2      984,000
                                                                                            7    1,862,000

SOLAR GENERATION                                                            100%           13       5,816


TOTAL                                                                                      60    6,157,568


(a)   Includes leased generating plants.
Page 48    2006 Statistical Report                                                                                                                    Pinnacle West Capital Corporation



SUNCOR DEVELOPMENT COMPANY
STATEMENTS OF INCOME
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                           2006           2005           2004           2003           2002           2001

REVENUES
     Home sales                                             $   247,193    $   222,841    $   215,866    $   172,114    $   139,645    $   112,331
     Condo sales                                                 30,893              -              -              -              -              -
     Land sales                                                  91,030         92,151        113,841         78,106         41,833         21,360
     Sales of assets                                              8,115          2,147            574         89,205              -         14,601
     Commercial property and management                          22,567         20,892         20,034         22,179         19,603         14,141
     Total revenues                                             399,798        338,031        350,315        361,604        201,081        162,433

OPERATING EXPENSES
     Cost of homes sold                                         189,049        175,114        174,751        138,860        113,264         92,631
     Cost of condos sold                                         26,687              -              -              -              -              -
     Cost of land sold                                           33,537         38,227         47,960         42,753         21,222          9,720
     Cost of assets sold                                          6,813          1,980            527         64,261              -          8,581
     Commercial property and management                          18,766         17,795         16,375         18,301         15,890         10,205
     General and administrative expenses                         53,253         48,017         46,975         45,729         39,280         30,530
     Total operating expenses                                   328,105        281,133        286,588        309,904        189,656        151,667

OPERATING INCOME                                                 71,693         56,898         63,727         51,700         11,425         10,766
Equity in joint venture earnings                                  9,066          1,940          2,986          3,320          1,960          2,895
Other income (expense)                                            1,815          1,671          2,137         22,094          5,452         (5,887)
Interest expense, net of capitalized interest                      (305)        (1,402)          (550)        (2,541)        (2,125)        (3,405)

INCOME FROM CONTINUING OPERATIONS
   BEFORE INCOME TAXES                                           82,269         59,107         68,300         74,573         16,712          4,369

INCOME TAXES                                                     32,176         20,359         27,212         28,452          6,813          1,763

INCOME FROM CONTINUING OPERATIONS                                50,093         38,748         41,088         46,121          9,899          2,606

Income from discontinued operations - net of income taxes        10,451         16,809          3,640         10,003          8,955           731

NET INCOME                                                  $    60,544    $    55,557    $    44,728    $    56,124    $    18,854    $     3,337
Page 49     2006 Statistical Report                                                                                                                            Pinnacle West Capital Corporation



SUNCOR DEVELOPMENT COMPANY
FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS)




DECEMBER 31,                                                                     2006          2005          2004          2003          2002          2001

ASSETS
      Cash and cash equivalents                                            $     5,177   $    13,843   $    23,045   $    25,885   $    25,094   $     9,176
      Accounts and notes receivable                                              5,068         6,577         7,189        16,987        14,055        10,568
      Home inventory                                                            41,846        53,409        32,010        34,174        38,247        33,729
      Land and improvements                                                    440,789       317,550       270,529       246,855       302,625       317,878
      Property and equipment, net                                               86,180        74,080       110,678       107,595       131,165       116,178
      Other assets                                                              28,251        21,948        20,253         7,729        22,521        30,574
TOTAL ASSETS                                                               $   607,311   $   487,407   $   463,704   $   439,225   $   533,707   $   518,103

LIABILITIES AND EQUITY
      Accounts payable and other liabilities                               $    87,701   $    58,776   $    82,156   $    60,639   $    38,089   $    47,396
      Short-term borrowings                                                      7,850        15,673        71,030        86,081       160,338             -
      Long-term debt                                                           180,644       129,306        15,974        17,853         8,946       148,627
      Deferred profit                                                           10,483        14,931        31,661             -             -             -
          Total liabilities                                                    286,678       218,686       200,821       164,573       207,373       196,023
      Minority interest                                                         49,682        43,904        43,624        15,119        14,925        16,187
      Stockholder's equity                                                     270,951       224,817       219,259       259,533       311,409       305,893
TOTAL LIABILITIES AND EQUITY                                               $   607,311   $   487,407   $   463,704   $   439,225   $   533,707   $   518,103




DECEMBER 31,                                                                     2006          2005          2004          2003          2002          2001

PROPERTY SUMMARY (a)
      Legacy properties                                                    $   172,712   $   170,454   $   149,348   $   174,999   $   306,192   $   276,605
      Post-1990 properties                                                     390,368       269,243       255,504       205,900       157,116       187,666
TOTAL PROPERTIES                                                           $   563,080   $   439,697   $   404,852   $   380,899   $   463,308   $   464,271

(a)   Excludes certain assets reported in "Property and equipment, net."



YEAR ENDED DECEMBER 31,                                                          2006          2005          2004          2003          2002          2001

CASH DISTRIBUTIONS TO PARENT                                               $    10,000   $    50,000   $    85,000   $   108,000   $    13,300   $         -
Page 50      2006 Statistical Report                                                                                                                       Pinnacle West Capital Corporation




SUNCOR DEVELOPMENT COMPANY
BUSINESS SUMMARY




SunCor develops residential, commercial and industrial real estate projects in the western United States. From 1986 - 1990, SunCor's focus was the
acquisition and development of four major projects in the metropolitan Phoenix area. These projects involved significant investments in raw land and
are referred to herein as “legacy properties.” Since 1990, SunCor’s business strategy has evolved and now emphasizes long-term development
arrangements with landowners. As of December 31, 2006, SunCor had more than 46,000 acres under development in Arizona, Idaho, New Mexico
and Utah.


                                                             GROSS MARGIN CONTRIBUTION
                                                                   BY BUSINESS LINE
                                                       Years Ended December 31, 2001 Through 2006
                  $ Millions
                   Pretax
                 175

                 150

                 125

                 100

                   75

                   50

                   25

                    0
                                2001                2002               2003         2004                2005                2006

                                                                                           Commercial Property
                   Land Sales                 Home Sales              Condo Sales          & Management                        Sale of Assets (a)


             (a) Includes discontinued operations


                                                            GEOGRAPHIC PROJECT DIVERSITY
                                                           As of December 31, 2001 Through 2006

                                Legacy Properties                                                                   Post-1990 Properties
            $ Millions                                                                          $ Millions
          400                                                                                 400



          300                                                                                 300



          200                                                                                 200



          100                                                                                 100



            0                                                                                   0
                  2001       2002      2003     2004       2005    2006                               2001       2002   2003       2004      2005   2006


                         Metro Phoenix                     Northern Arizona           Utah                     New Mexico                  Idaho
Page 51     2006 Statistical Report                                                                                                                            Pinnacle West Capital Corporation




SUNCOR DEVELOPMENT COMPANY
MAJOR PROPERTY DESCRIPTIONS
(FOR PERIODS PRESENTED)



                                                                     Year         Year   Original   12/31/2006
                                        Location                  Acquired   Completed   Acreage      Acreage
MASTER-PLANNED COMMUNITIES

LEGACY PROPERTIES
Palm Valley                             Phoenix, Arizona             1987                11,300        2,700


POST-1990 PROPERTIES
Scottsdale Mountain                     Scottsdale, Arizona          1991        2004     1,400            -
SunRidge Canyon                         Scottsdale, Arizona          1994        2002       950            -
                                                                                                                 IDAHO
Sedona Golf Resort                      Sedona, Arizona              1995        2004       300            -
                                                                                                                 Boise
Rancho Viejo Phase 1 (a)                Santa Fe, New Mexico         1996                 2,500        1,500
Hidden Hills                            Scottsdale, Arizona          1997        2004       419            -
Coral Canyon (a)                        St. George, Utah             1998                 2,500          750
StoneRidge (a)                          Prescott, Arizona            2001                 1,840        1,100
Avimor (a)                              Boise, Idaho                 2003                12,500       12,500
Prescott Lakes (a)                      Prescott, Arizona            2004                   175          175
Campbell Ranch (a)                      Albuquerque, New Mexico      2006                 2,600        2,600               UTAH
Yavapai Ranch (a)                       Northern Arizona             2006                25,000       25,000
                                                                                                                         St. George


COMMERCIAL PROPERTIES
                                                                                                                                                Santa Fe
LEGACY PROPERTIES                                                                                                           Sedona
                                                                                                                                                 Albuquerque
Tempe MarketPlace/Autoplex              Phoenix, Arizona             1987        2002       420            -                    Prescott
Talavi                                  Phoenix, Arizona             1987                   140            7
                                                                                                                         ARIZONA            NEW MEXICO
Alameda Crossing (Palm Valley)          Phoenix, Arizona             1987                    21           17
                                                                                                                                  Phoenix
Palm Valley Office Park Phase 3         Phoenix, Arizona             1987                     4            4


POST-1990 PROPERTIES
Centrepoint                             Phoenix, Arizona             1989                    80            3
Black Canyon Commerce Park              Phoenix, Arizona             1998        2001        16            -
Hayden Ferry Lakeside Office & Condos   Phoenix, Arizona             2000                    17           15
Rio West Business Park                  Phoenix, Arizona             2004                    25           10
Riverside Distribution Center           Phoenix, Arizona             2004        2006        28            -



(a) Venture with landowner
Page 52   2006 Statistical Report                                                                                                                                                                                            Pinnacle West Capital Corporation



EL DORADO INVESTMENT COMPANY
FINANCIAL HIGHLIGHTS
(DOLLARS IN THOUSANDS)




YEAR ENDED DECEMBER 31,                                                                               2006                    2005                  2004                  2003                  2002                  2001



NET INCOME (LOSS)                                                                         $         (4,089)        $         4,394       $        40,126       $         7,289      $        (55,173)     $            206




DECEMBER 31,                                                                                          2006                    2005                  2004                  2003                  2002                  2001

ASSETS
     Customer and other receivables                                                       $              -         $         8,410       $            47       $         1,115      $         19,993      $         12,547
     Property, plant and equipment                                                                       -                       -                     -                     -                10,126                     -
     Investments                                                                                    34,451                  29,708                23,309                 2,695                 2,143                 9,241
     Investments in funds managed by others                                                              -                       -                     -                     -                   295                   782
     Cash and other assets                                                                              (3)                      -                   139                23,195                 3,535                   158
TOTAL ASSETS                                                                              $         34,448         $        38,118       $        23,495       $        27,005      $         36,092      $         22,728

LIABILITIES AND EQUITY
     Short-term borrowings                                                                $         21,497         $        22,426       $        19,457       $        39,418      $         23,456      $              -
     Deferred taxes                                                                                      -                       -                     -                     -                     -                 1,051
     Other liabilities                                                                               3,830                   2,482                (4,778)               18,969                51,235                 5,103
     Stockholder's equity                                                                            9,121                  13,210                 8,816               (31,382)              (38,599)               16,574
TOTAL LIABILITIES AND EQUITY                                                              $         34,448         $        38,118       $        23,495       $        27,005      $         36,092      $         22,728




INVESTMENT SUMMARY AS OF DECEMBER 31, 2006


El Dorado owns minority interests in several energy-related investments and Arizona community-based ventures. In 2003, El Dorado's largest holding was a majority interest in NAC, a company specializing in spent nuclear
fuel technology. NAC was consolidated for financial reporting purposes in mid-2002. El Dorado sold its investment in NAC in November 2004. El Dorado also sold its limited partnership interest in the Phoenix Suns in
2004.

								
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