Pinnacle West Capital Corporation
We were incorporated in 1985 under the laws of the State of Arizona and own all
of the outstanding equity securities of APS, our major subsidiary. APS is a vertically-integrated
electric utility that provides either retail or wholesale electric service to
substantially all of the state of Arizona, with the major exceptions of the Tucson
metropolitan area and about one-half of the Phoenix metropolitan area. Through
its marketing and trading division, APS also generates, sells and delivers electricity
to wholesale customers in the western United States.
Our other significant subsidiaries are Pinnacle West Energy, which owns and
operates generating plants; APS Energy Services, which provides competitive
energy services and products in the western United States; and SunCor, which
is engaged in real estate development activities.
We have three principal business segments (determined by products, services
and the regulatory environment):
our regulated electricity segment, which consists of traditional regulated
retail and wholesale electricity businesses and related activities, and includes
electricity generation, transmission and distribution;
our marketing and trading segment, which consists of our competitive energy
business activities, including wholesale marketing and trading and APS Energy
Services' commodity-related energy services; and
our real estate segment (13% of operating revenues in 2003), which consists
of SunCor's real estate development and investment activities.
The ACC regulates APS' retail electric rates and its issuance of securities.
The ACC must also approve any transfer of APS' property used to provide retail
electric service and approve or receive prior notification of certain transactions
between Pinnacle West, APS and their respective affiliates.