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SECURITIES AND EXCHANGE COMMISSION
þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission | Registrants; State of Incorporation; | IRS Employer | ||
File Number | Addresses; and Telephone Number | Identification No. | ||
1-8962 | PINNACLE WEST CAPITAL CORPORATION | 86-0512431 | ||
(An Arizona corporation) | ||||
400 North Fifth Street, P.O. Box 53999 | ||||
Phoenix, Arizona 85072-3999 | ||||
(602) 250-1000 | ||||
1-4473 | ARIZONA PUBLIC SERVICE COMPANY | 86-0011170 | ||
(An Arizona corporation) | ||||
400 North Fifth Street, P.O. Box 53999 | ||||
Phoenix, Arizona 85072-3999 | ||||
(602) 250-1000 |
Title Of Each Class | Name Of Each Exchange On Which Registered | |||
PINNACLE WEST CAPITAL CORPORATION | Common Stock, No Par Value | New York Stock Exchange | ||
ARIZONA PUBLIC SERVICE COMPANY | None | None |
ARIZONA PUBLIC SERVICE COMPANY | Common Stock, Par Value $2.50 per share |
PINNACLE WEST CAPITAL CORPORATION | Yesþ | Noo | ||
ARIZONA PUBLIC SERVICE COMPANY | Yesþ | Noo |
PINNACLE WEST CAPITAL CORPORATION | Yeso | Noþ | ||
ARIZONA PUBLIC SERVICE COMPANY | Yeso | Noþ |
PINNACLE WEST CAPITAL CORPORATION | Yesþ | Noo | ||
ARIZONA PUBLIC SERVICE COMPANY | Yesþ | Noo |
PINNACLE WEST CAPITAL CORPORATION | Yesþ | Noo | ||
ARIZONA PUBLIC SERVICE COMPANY | Yeso | Noo |
Large accelerated filerþ | Accelerated filero | Non-accelerated filero | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
Large accelerated filero | Accelerated filero | Non-accelerated filerþ | Smaller reporting companyo | |||
(Do not check if a smaller reporting company) |
PINNACLE WEST CAPITAL CORPORATION | $3,935,855,234 as of June 30, 2010 | |
ARIZONA PUBLIC SERVICE COMPANY | $0 as of June 30, 2010 |
PINNACLE WEST CAPITAL CORPORATION | 108,780,623 shares | |
ARIZONA PUBLIC SERVICE COMPANY | Common Stock, $2.50 par value, 71,264,947 shares. Pinnacle West Capital Corporation is the sole holder of Arizona Public Service Company’s Common Stock. |
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Exhibit 10.6.5 | ||||||||
Exhibit 10.9.1C | ||||||||
Exhibit 10.11.4 | ||||||||
Exhibit 12.1 | ||||||||
Exhibit 12.2 | ||||||||
Exhibit 12.3 | ||||||||
Exhibit 21.1 | ||||||||
Exhibit 23.1 | ||||||||
Exhibit 23.2 | ||||||||
Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 31.3 | ||||||||
Exhibit 31.4 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 | ||||||||
EX-101 INSTANCE DOCUMENT | ||||||||
EX-101 SCHEMA DOCUMENT | ||||||||
EX-101 CALCULATION LINKBASE DOCUMENT | ||||||||
EX-101 LABELS LINKBASE DOCUMENT | ||||||||
EX-101 PRESENTATION LINKBASE DOCUMENT | ||||||||
EX-101 DEFINITION LINKBASE DOCUMENT |
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ACC | Arizona Corporation Commission | |
ADEQ | Arizona Department of Environmental Quality | |
AFUDC | Allowance for Funds Used During Construction | |
ANPP | Arizona Nuclear Power Project, also known as Palo Verde | |
APS | Arizona Public Service Company, a subsidiary of the Company | |
APSES | APS Energy Services Company, Inc., a subsidiary of the Company | |
Base Fuel Rate | The portion of APS’s retail base rates attributable to fuel and purchased power costs | |
Cholla | Cholla Power Plant | |
DOE | United States Department of Energy | |
El Dorado | El Dorado Investment Company, a subsidiary of the Company | |
EPA | United States Environmental Protection Agency | |
FASB | Financial Accounting Standards Board | |
FERC | United States Federal Energy Regulatory Commission | |
Four Corners | Four Corners Power Plant | |
GWh | Gigawatt-hour, one billion watts per hour | |
IFRS | International Financial Reporting Standards | |
kV | Kilovolt, one thousand volts | |
kWh | Kilowatt-hour, one thousand watts per hour | |
MMBtu | One million British Thermal Units | |
MW | Megawatt, one million watts | |
Native Load | Retail and wholesale sales supplied under traditional cost-based rate regulation | |
Navajo Plant | Navajo Generating Station | |
NRC | United States Nuclear Regulatory Commission | |
OCI | Other comprehensive income | |
Palo Verde | Palo Verde Nuclear Generating Station | |
Pinnacle West | Pinnacle West Capital Corporation (any use of the words “Company,” “we,” and “our” refer to Pinnacle West) | |
Pinnacle West Marketing & Trading | Pinnacle West Marketing & Trading Co., LLC, a subsidiary of the Company | |
PRP | Potentially responsible party under Superfund | |
PSA | Power supply adjustor approved by the ACC to provide for recovery or refund of variations in actual fuel and purchased power costs compared with the Base Fuel Rate | |
RES | Arizona Renewable Energy Standard and Tariff | |
Salt River Project or SRP | Salt River Project Agricultural Improvement and Power District | |
SunCor | SunCor Development Company, a subsidiary of the Company | |
TCA | Transmission cost adjustor | |
VIE | Variable-interest entity | |
West Phoenix | West Phoenix Power Plant |
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• | our ability to achieve timely and adequate rate recovery of our costs, including returns on debt and equity capital; |
• | our ability to manage capital expenditures and other costs while maintaining reliability and customer service levels; |
• | variations in demand for electricity, including those due to weather, the general economy, customer and sales growth (or decline), and the effects of energy conservation measures and distributed generation; |
• | power plant performance and outages; |
• | volatile fuel and purchased power costs; |
• | fuel and water supply availability; |
• | regulatory and judicial decisions, developments and proceedings; |
• | new legislation or regulation, including those relating to greenhouse gas emissions, renewable energy mandates and energy efficiency standards; |
• | our ability to meet renewable energy requirements and recover related costs; |
• | risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; |
• | competition in retail and wholesale power markets; |
• | the duration and severity of the economic decline in Arizona and current real estate market conditions; |
• | the cost of debt and equity capital and the ability to access capital markets when required; |
• | changes to our credit ratings; |
• | the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; |
• | the liquidity of wholesale power markets and the use of derivative contracts in our business; |
• | potential shortfalls in insurance coverage; |
• | new accounting requirements or new interpretations of existing requirements; |
• | generation, transmission and distribution facility and system conditions and operating costs; |
• | the ability to meet the anticipated future need for additional baseload generation and associated transmission facilities in our region; |
• | the willingness or ability of our counterparties, power plant participants and power plant land owners to meet contractual or other obligations or extend the rights for continued power plant operations; |
• | technological developments affecting the electric industry; and |
• | restrictions on dividends or other burdensome provisions in our credit agreements and ACC orders. |
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Year Ended December 31, | ||||||||||||
Operating Revenues (in thousands): | 2010 | 2009 | 2008 | |||||||||
APS | $ | 3,180,807 | $ | 3,149,500 | $ | 3,133,496 | ||||||
Percentage of Pinnacle West Consolidated | 97 | % | 99 | % | 97 | % |
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• | mining and milling of uranium ore to produce uranium concentrates; |
• | conversion of uranium concentrates to uranium hexafluoride; |
• | enrichment of uranium hexafluoride; |
• | fabrication of fuel assemblies; |
• | utilization of fuel assemblies in reactors; and |
• | storage and disposal of spent nuclear fuel. |
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Type | Dates Available | Capacity (MW) | ||||
Purchase Agreement (a) | Year-round through December 2014 | 104 | ||||
Purchase Agreement (b) | Year-round through June 14, 2020 | 60 | ||||
Exchange Agreement (c) | May 15 to September 15 annually through 2020 | 480 | ||||
Tolling Agreement | Year-round through May 2017 | 500 | ||||
Tolling Agreement | Summer seasons through October 2019 | 560 | ||||
Day-Ahead Call Option Agreement | Summer seasons through September 2015 | 500 | ||||
Day-Ahead Call Option Agreement | Summer seasons through summer 2016 | 150 | ||||
Demand Response Agreement (d) | Summer seasons through 2024 | 100 | ||||
Renewable Energy (e) | Various | 223 |
(a) | The capacity under this agreement varies by month, with a maximum capacity of 104 MW. | |
(b) | Up to 60 MW of capacity is available; however, the amount of electricity available to APS under this agreement is based in large part on customer demand and is adjusted annually. |
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(c) | This is a seasonal capacity exchange agreement under which APS receives electricity during the summer peak season (from May 15 to September 15) and APS returns a like amount of electricity during the winter season (from October 15 to February 15). | |
(d) | The capacity under this agreement increases in phases over the first three years to reach the 100 MW level by the summer of 2012. | |
(e) | Renewable energy purchased power agreements are described in detail below under “Current and Future Resources — Renewable Energy Standard — Renewable Energy Portfolio.” |
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2011 | 2015 | 2020 | 2025 | |||||||||||||
RES as a % of retail electric sales | 3 | % | 5 | % | 10 | % | 15 | % | ||||||||
Percent of RES to be supplied from distributed energy resources | 25 | % | 30 | % | 30 | % | 30 | % |
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Actual/ | Net | Net Capacity | ||||||||||||||||||
Target | Capacity | Planned/ | ||||||||||||||||||
Commercial | In | Under | ||||||||||||||||||
Operation | Term | Operation | Development | |||||||||||||||||
Location | Date | (Years) | (MW) | (MW) | ||||||||||||||||
APS Owned | ||||||||||||||||||||
Solar: | ||||||||||||||||||||
AZ Sun Program: | ||||||||||||||||||||
Paloma | Gila Bend, AZ | 2011 | 17 | |||||||||||||||||
Cotton Center | Gila Bend, AZ | 2011 | 17 | |||||||||||||||||
Hyder Phase 1 | Hyder, AZ | 2011 | 11 | |||||||||||||||||
Hyder Phase 2 | Hyder, AZ | 2012 | 5 | |||||||||||||||||
Chino Valley | Chino Valley, AZ | 2012 | 19 | |||||||||||||||||
Luke AFB | Glendale, AZ | 2012/2013 | (a) | 14 | ||||||||||||||||
Subtotal AZ Sun Program (b) | 83 | |||||||||||||||||||
Multiple Facilities | AZ | Various | 5 | |||||||||||||||||
Total APS Owned | 5 | 83 | ||||||||||||||||||
Purchased Power Agreements | ||||||||||||||||||||
Solar: | ||||||||||||||||||||
Solana (c) | Gila Bend, AZ | 2013 | 30 | 250 | ||||||||||||||||
RE Ajo | Ajo, AZ | 2011 | 25 | 5 | ||||||||||||||||
Sun E AZ 1 | Prescott, AZ | 2011 | 30 | 10 | ||||||||||||||||
Solar 1 (d) | Tonopah, AZ | 2012 | 30 | 15 | ||||||||||||||||
Wind: | ||||||||||||||||||||
Aragonne Mesa | Santa Rosa, NM | 2006 | 20 | 90 | ||||||||||||||||
High Lonesome | Mountainair, NM | 2009 | 30 | 100 | ||||||||||||||||
Perrin Ranch Wind | Williams, AZ | 2011 | 25 | 99 | ||||||||||||||||
Geothermal: | ||||||||||||||||||||
Salton Sea | Imperial County, CA | 2006 | 23 | 10 | ||||||||||||||||
Biomass: | ||||||||||||||||||||
Snowflake | Snowflake, AZ | 2008 | 15 | 10 | ||||||||||||||||
Snowflake | Snowflake, AZ | 2008 | 1 | 10 | ||||||||||||||||
Biogas: | ||||||||||||||||||||
Glendale Landfill | Glendale, AZ | 2010 | 20 | 3 | ||||||||||||||||
Landfill 1 (d) | Surprise, AZ | 2012 | 20 | 3 | ||||||||||||||||
Total Purchased Power Agreements | 223 | 382 | ||||||||||||||||||
Distributed Energy | ||||||||||||||||||||
Solar: | ||||||||||||||||||||
APS Owned (e) | AZ | various | 1 | |||||||||||||||||
Third-party Owned (f) | AZ | various | 60 | 66 | ||||||||||||||||
Agreement 1 | Bagdad, AZ | 2012 | 25 | 15 | ||||||||||||||||
Agreement 2 (g) | AZ | 2012-2014 | 20-25 | 40 | ||||||||||||||||
Total Distributed Energy | 60 | 122 | ||||||||||||||||||
Total Renewable Portfolio | 288 | 587 | ||||||||||||||||||
(a) | The timing is dependent on site preparation activities. | |
(b) | Under the AZ Sun Program, 17 MW remains to be fulfilled. | |
(c) | Represents contracted capacity. | |
(d) | Details of these agreements have not yet been publicly announced. | |
(e) | Reflects Community Power Project. See Note 3. | |
(f) | Achieved through incentive-based programs. Includes resources with production-based incentives that have terms of 10-20 years. | |
(g) | Agreement ramps up to 40 MW over 3 years. |
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2010 | 2009 | 2008 | ||||||||||
(dollars in millions) | ||||||||||||
Net income (loss) | $ | 30 | $ | (2 | ) | $ | (1 | ) | ||||
Total assets at December 31 | $ | 43 | $ | 74 | $ | 70 |
2010 | 2009 | 2008 | ||||||||||
(dollars in millions) | ||||||||||||
Revenues (a) | $ | 102 | $ | 158 | $ | 242 | ||||||
Net loss attributable to common shareholders (b) | $ | (9 | ) | $ | (279 | ) | $ | (26 | ) | |||
Total assets at December 31 (c) | $ | 16 | $ | 166 | $ | 547 |
(a) | All reported as discontinued operations on Pinnacle West’s Consolidated Statements of Income. (See Note 22). | |
(b) | These amounts include $266 million (pre-tax) and $53 million (pre-tax) real estate impairment charges for 2009 and 2008, respectively. | |
(c) | The reduction in assets in 2010 is primarily due to asset sales. The $16 million of assets at December 31, 2010 consists primarily of $8 million of intercompany receivables, $3 million of assets held for sale and $5 million of other assets. |
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2010 | 2009 | 2008 | ||||||||||
(dollars in millions) | ||||||||||||
Net income (loss) | $ | 2 | $ | (7 | ) | $ | (10 | ) | ||||
Total assets at December 31 | $ | 19 | $ | 19 | $ | 28 |
Approximate | ||||||||||||
Number of | ||||||||||||
Principal Executive Office | Year of | Employees at | ||||||||||
Address | Incorporation | December 31, 2010 | ||||||||||
Pinnacle West | 400 North Fifth Street Phoenix, AZ 85004 | 1985 | 80 | |||||||||
APS | 400 North Fifth Street P.O. Box 53999 Phoenix, AZ 85072-3999 | 1920 | 6,600 | |||||||||
APSES | 60 E. Rio Salado Parkway Suite 1001 Tempe, AZ 85281 | 1998 | 50 | |||||||||
SunCor | 80 East Rio Salado Parkway Suite 410 Tempe, AZ 85281 | 1965 | 10 | |||||||||
El Dorado | 400 North Fifth Street Phoenix, AZ 85004 | 1983 | — | |||||||||
Total | 6,740 | |||||||||||
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• | continuation of the current economic downturn; |
• | terrorist attacks or threatened attacks; |
• | mergers among financial institutions and the overall health of the banking industry; or |
• | the overall health of the utility industry. |
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• | reducing our credit ratings; |
• | increasing the cost of future debt financing and refinancing; |
• | increasing our vulnerability to adverse economic and industry conditions; and |
• | requiring us to dedicate an increased portion of our cash flow from operations to payments on our debt, which would reduce funds available to us for operations, future business opportunities or other purposes. |
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• | variations in our quarterly operating results; |
• | operating results that vary from the expectations of management, securities analysts and investors; |
• | changes in expectations as to our future financial performance, including financial estimates by securities analysts and investors; |
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• | developments generally affecting industries in which we operate, particularly the energy distribution and energy generation industries; |
• | announcements by us or our competitors of significant contracts, acquisitions, joint marketing relationships, joint ventures or capital commitments; |
• | announcements by third parties of significant claims or proceedings against us; |
• | favorable or adverse regulatory or legislative developments; |
• | our dividend policy; |
• | future sales by the Company of equity or equity-linked securities; and |
• | general domestic and international economic conditions. |
• | restrictions on our ability to engage in a wide range of “business combination” transactions with an “interested shareholder” (generally, any person who owns 10% or more of our outstanding voting power or any of our affiliates or associates) or any affiliate or associate of an interested shareholder, unless specific conditions are met; |
• | anti-greenmail provisions of Arizona law and our bylaws that prohibit us from purchasing shares of our voting stock from beneficial owners of more than 5% of our outstanding shares unless specified conditions are satisfied; |
• | the ability of the Board of Directors to increase the size of the Board and fill vacancies on the Board, whether resulting from such increase, or from death, resignation, disqualification or otherwise; and |
• | the ability of our Board of Directors to issue additional shares of common stock and shares of preferred stock and to determine the price and, with respect to preferred stock, the other terms, including preferences and voting rights, of those shares without shareholder approval. |
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Principal | Primary | Owned | ||||||||||||||||||
No. of | % | Fuels | Dispatch | Capacity | ||||||||||||||||
Name | Units | Owned (a) | Used | Type | (MW) | |||||||||||||||
Nuclear: | ||||||||||||||||||||
Palo Verde (b) | 3 | 29.1 | % | Uranium | Base Load | 1,146 | ||||||||||||||
Total Nuclear | 1,146 | |||||||||||||||||||
Steam: | ||||||||||||||||||||
Four Corners 1, 2, 3 | 3 | Coal | Base Load | 560 | ||||||||||||||||
Four Corners 4, 5 (c) | 2 | 15 | % | Coal | Base Load | 231 | ||||||||||||||
Cholla | 3 | Coal | Base Load | 647 | ||||||||||||||||
Navajo (d) | 3 | 14 | % | Coal | Base Load | 315 | ||||||||||||||
Ocotillo | 2 | Gas | Peaking | 220 | ||||||||||||||||
Saguaro | 2 | Gas/Oil | Peaking | 210 | ||||||||||||||||
Total Steam | �� | 2,183 | ||||||||||||||||||
Combined Cycle: | ||||||||||||||||||||
Redhawk | 2 | Gas | Load Following | 984 | ||||||||||||||||
West Phoenix | 5 | Gas | Load Following | 887 | ||||||||||||||||
Total Combined Cycle | 1,871 | |||||||||||||||||||
Combustion Turbine: | ||||||||||||||||||||
Ocotillo | 2 | Gas | Peaking | 110 | ||||||||||||||||
Saguaro 1, 2 | 2 | Gas/Oil | Peaking | 110 | ||||||||||||||||
Saguaro 3 | 1 | Gas | Peaking | 79 | ||||||||||||||||
Douglas | 1 | Oil | Peaking | 16 | ||||||||||||||||
Sundance | 10 | Gas | Peaking | 420 | ||||||||||||||||
West Phoenix | 2 | Gas | Peaking | 110 | ||||||||||||||||
Yucca 1, 2, 3 | 3 | Gas/Oil | Peaking | 93 | ||||||||||||||||
Yucca 4 | 1 | Oil | Peaking | 54 | ||||||||||||||||
Yucca 5, 6 | 2 | Gas | Peaking | 96 | ||||||||||||||||
Total Combustion Turbine | 1,088 | |||||||||||||||||||
Solar: | ||||||||||||||||||||
Multiple facilities | Solar | As Available | 5 | |||||||||||||||||
Total Solar | 5 | |||||||||||||||||||
Total Capacity | 6,293 | |||||||||||||||||||
(a) | 100% unless otherwise noted. | |
(b) | See “Business of Arizona Public Service Company — Energy Sources and Resource Planning — Generation Facilities — Nuclear” in Item 1 for details regarding leased interests in Palo Verde. The other participants are Salt River Project (17.49%), SCE (15.8%), El Paso Electric Company (15.8%), Public Service Company of New Mexico (10.2%), Southern California Public Power Authority (5.91%), and Los Angeles Department of Water & Power (5.7%). The plant is operated by APS. |
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(c) | The other participants are Salt River Project (10%), Public Service Company of New Mexico (13%), SCE (48%), Tucson Electric Power Company (7%) and El Paso Electric Company (7%). The plant is operated by APS. As discussed under “Business of Arizona Public Service Company — Energy Sources and Resource Planning — Generation Facilities — Coal Fueled Generating Facilities — Four Corners” in Item 1, APS and SCE have entered into an agreement by which APS would acquire SCE’s interest in Units 4 and 5, after which APS would close Units 1, 2 and 3. | |
(d) | The other participants are Salt River Project (21.7%), Nevada Power Company (11.3%), the United States Government (24.3%), Tucson Electric Power Company (7.5%) and Los Angeles Department of Water & Power (21.2%). The plant is operated by Salt River Project. |
Percent Owned | ||||
(Weighted Average) | ||||
North Valley System | 71.2 | % | ||
Palo Verde — Estrella 500KV System | 50.0 | % | ||
Round Valley System | 50.0 | % | ||
ANPP 500KV System | 34.0 | % | ||
Navajo Southern System | 26.1 | % | ||
Four Corners Switchyards | 47.5 | % | ||
Palo Verde — Yuma 500KV System | 43.5 | % | ||
Phoenix — Mead System | 17.5 | % |
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Name | Age | Position | Period | |||
Donald E. Brandt | 56 | Chairman of the Board and Chief Executive Officer of Pinnacle West; Chairman of the Board of APS | 2009-Present | |||
President of Pinnacle West | 2008-Present | |||||
Chief Executive Officer of APS | 2008-Present | |||||
Chief Operating Officer of Pinnacle West | 2008-2009 | |||||
President of APS | 2006-2009 | |||||
Executive Vice President of Pinnacle West; Chief Financial Officer of APS | 2003-2008 | |||||
Chief Financial Officer of Pinnacle West | 2002-2008 | |||||
Executive Vice President of APS | 2003-2006 | |||||
Donald G. Robinson | 57 | President and Chief Operating Officer of APS | 2009-Present | |||
Senior Vice President, Planning and Administration of APS | 2007-2009 | |||||
Vice President, Planning of APS | 2003-2007 | |||||
Denise R. Danner | 55 | Vice President, Controller and Chief Accounting Officer of Pinnacle West; Chief Accounting Officer of APS | 2010-Present | |||
Vice President and Controller of APS | 2009-Present | |||||
Senior Vice President, Controller and Chief Accounting Officer of Allied Waste Industries, Inc. | 2007-2008 | |||||
Vice President, Controller and Chief Accounting Officer of Phelps Dodge Corporation | 2004-2007 | |||||
Randall K. Edington | 57 | Executive Vice President and Chief Nuclear Officer of APS | 2007-Present | |||
Senior Vice President and Chief Nuclear Officer of APS | 2007 | |||||
Site Vice President and Chief Nuclear Officer of Cooper Generating Station with Entergy Corporation | 2003-2007 | |||||
David P. Falck | 57 | Executive Vice President, General Counsel and Secretary of Pinnacle West and APS | 2009-Present | |||
Senior Vice President — Law of Public Service Enterprise Group Inc. | 2007-2009 | |||||
Partner — Pillsbury Winthrop Shaw Pittman LLP | 1987-2007 |
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Name | Age | Position | Period | |||
James R. Hatfield | 53 | Senior Vice President and Chief Financial Officer of Pinnacle West and APS | 2008-Present | |||
Treasurer of Pinnacle West and APS | 2009-2010 | |||||
Senior Vice President and Chief Financial Officer of OGE Energy Corp. | 1999-2008 | |||||
John Hatfield | 45 | Vice President, Communications of APS | 2010-Present | |||
Director, Corporate Communications of Southern California Edison | 2004-2010 | |||||
Lee R. Nickloy | 44 | Vice President and Treasurer of Pinnacle West and APS | 2010-Present | |||
Assistant Treasurer and Director Corporate Finance of Ameren Corporation | 2000-2010 | |||||
Mark A. Schiavoni | 55 | Senior Vice President, Fossil Operations of APS | 2009-Present | |||
Senior Vice President of Exelon Generation and President of Exelon Power | 2004-2009 | |||||
Lori S. Sundberg | 47 | Senior Vice President, Human Resources and Ethics of APS | 2011-Present | |||
Vice President, Human Resources and Ethics of APS | 2010-2011 | |||||
Vice President, Human Resources of APS | 2007-2010 | |||||
Vice President, Employee Relations, Safety, Compliance & Embrace of American Express Company | 2007 | |||||
Vice President, HR Relationship Leader, Global Corporate Travel Division of American Express Company | 2003-2007 |
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STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Dividends | ||||||||||||||||
2010 | High | Low | Close | Per Share | ||||||||||||
1st Quarter | $ | 38.37 | $ | 34.62 | $ | 37.73 | $ | 0.525 | ||||||||
2nd Quarter | 39.10 | 32.31 | 36.36 | 0.525 | ||||||||||||
3rd Quarter | 41.75 | 35.71 | 41.27 | 0.525 | ||||||||||||
4th Quarter | 42.68 | 39.97 | 41.45 | 0.525 |
Dividends | ||||||||||||||||
2009 | High | Low | Close | Per Share | ||||||||||||
1st Quarter | $ | 35.13 | $ | 22.32 | $ | 26.56 | $ | 0.525 | ||||||||
2nd Quarter | 30.30 | 25.28 | 30.15 | 0.525 | ||||||||||||
3rd Quarter | 33.71 | 28.87 | 32.82 | 0.525 | ||||||||||||
4th Quarter | 37.96 | 31.08 | 36.58 | 0.525 |
(Dollars in Thousands)
Quarter | 2010 | 2009 | ||||||
1st Quarter | $ | 42,500 | $ | 42,500 | ||||
2nd Quarter | 56,900 | 42,500 | ||||||
3rd Quarter | 56,900 | 42,500 | ||||||
4th Quarter | 26,100 | 42,500 |
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Total Number of | ||||||||||||||||
Total | Shares Purchased | Maximum Number of | ||||||||||||||
Number of | Average | as Part of Publicly | Shares that May Yet Be | |||||||||||||
Shares | Price Paid | Announced Plans | Purchased Under the | |||||||||||||
Period | Purchased (1) | per Share | or Programs | Plans or Programs | ||||||||||||
October 1 – October 31, 2010 | — | — | — | — | ||||||||||||
November 1 – November 30, 2010 | — | — | — | — | ||||||||||||
December 1 – December 31, 2010 | 1,994 | $ | 41.39 | — | — | |||||||||||
Total | 1,994 | $ | 41.39 | — | — | |||||||||||
(1) | Represents shares of common stock repurchased for rescission of director stock grant. |
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PINNACLE WEST CAPITAL CORPORATION — CONSOLIDATED
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(dollars in thousands, except per share amounts) | ||||||||||||||||||||
OPERATING RESULTS | ||||||||||||||||||||
Operating revenues: | ||||||||||||||||||||
Regulated electricity segment | $ | 3,180,678 | $ | 3,149,187 | $ | 3,127,383 | $ | 2,918,163 | $ | 2,635,036 | ||||||||||
Marketing and trading | — | — | 66,897 | 138,247 | 136,748 | |||||||||||||||
Other revenues | 82,967 | 26,723 | 25,407 | 34,375 | 24,282 | |||||||||||||||
Total operating revenues | $ | 3,263,645 | $ | 3,175,910 | $ | 3,219,687 | $ | 3,090,785 | $ | 2,796,066 | ||||||||||
Income from continuing operations | $ | 350,598 | $ | 252,558 | $ | 278,335 | $ | 299,218 | $ | 279,586 | ||||||||||
Discontinued operations — net of income taxes (a) | 19,611 | (179,794 | ) | (18,715 | ) | 23,773 | 61,935 | |||||||||||||
Net income | 370,209 | 72,764 | 259,620 | 322,991 | 341,521 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 20,156 | 4,434 | 17,495 | 15,848 | 14,266 | |||||||||||||||
Net income attributable to common shareholders | $ | 350,053 | $ | 68,330 | $ | 242,125 | $ | 307,143 | $ | 327,255 | ||||||||||
COMMON STOCK DATA | ||||||||||||||||||||
Book value per share — year-end | $ | 33.93 | $ | 32.69 | $ | 34.16 | $ | 35.15 | $ | 34.48 | ||||||||||
Earnings per weighted-average common share outstanding: | ||||||||||||||||||||
Continuing operations attributable to common shareholders — basic | $ | 3.10 | $ | 2.31 | $ | 2.59 | $ | 2.83 | $ | 2.67 | ||||||||||
Net income attributable to common shareholders — basic | $ | 3.28 | $ | 0.68 | $ | 2.40 | $ | 3.06 | $ | 3.29 | ||||||||||
Continuing operations attributable to common shareholders — diluted | $ | 3.08 | $ | 2.30 | $ | 2.58 | $ | 2.81 | $ | 2.65 | ||||||||||
Net income attributable to common shareholders — diluted | $ | 3.27 | $ | 0.67 | $ | 2.40 | $ | 3.05 | $ | 3.27 | ||||||||||
Dividends declared per share | $ | 2.10 | $ | 2.10 | $ | 2.10 | $ | 2.10 | $ | 2.025 | ||||||||||
Weighted-average common shares outstanding — basic | 106,573,348 | 101,160,659 | 100,690,838 | 100,255,807 | 99,417,008 | |||||||||||||||
Weighted-average common shares outstanding — diluted | 107,137,785 | 101,263,795 | 100,964,920 | 100,834,871 | 100,010,108 | |||||||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 12,362,703 | $ | 11,986,324 | $ | 11,805,967 | $ | 11,355,788 | $ | 11,019,185 | ||||||||||
Liabilities and equity: | ||||||||||||||||||||
Current liabilities | $ | 1,310,736 | $ | 1,108,943 | $ | 1,527,683 | $ | 1,365,192 | $ | 943,497 | ||||||||||
Long-term debt less current maturities | 3,045,794 | 3,496,524 | 3,183,386 | 3,300,663 | 3,426,914 | |||||||||||||||
Deferred credits and other | 4,230,947 | 3,952,853 | 3,523,929 | 3,029,866 | 3,131,901 | |||||||||||||||
Total liabilities | 8,587,477 | 8,558,320 | 8,234,998 | 7,695,721 | 7,502,312 | |||||||||||||||
Total equity | 3,775,226 | 3,428,004 | 3,570,969 | 3,660,067 | 3,516,873 | |||||||||||||||
Total liabilities and equity | $ | 12,362,703 | $ | 11,986,324 | $ | 11,805,967 | $ | 11,355,788 | $ | 11,019,185 | ||||||||||
(a) | Amounts primarily related to SunCor’s real estate impairment charges (see Note 23) and APSES discontinued operations (see Note 22). |
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ARIZONA PUBLIC SERVICE COMPANY — CONSOLIDATED
2010 | 2009 | 2008 | 2007 | 2006 | ||||||||||||||||
(dollars in thousands) | ||||||||||||||||||||
OPERATING RESULTS | ||||||||||||||||||||
Electric operating revenues | $ | 3,180,807 | $ | 3,149,500 | $ | 3,133,496 | $ | 2,936,277 | $ | 2,658,513 | ||||||||||
Fuel and purchased power costs | 1,046,815 | 1,178,620 | 1,289,883 | 1,151,392 | 969,767 | |||||||||||||||
Other operating expenses | 1,584,955 | 1,501,081 | 1,376,257 | 1,326,934 | 1,258,848 | |||||||||||||||
Operating income | 549,037 | 469,799 | 467,356 | 457,951 | 429,898 | |||||||||||||||
Other income (deductions) | 20,138 | 13,893 | 836 | 20,870 | 27,584 | |||||||||||||||
Interest deductions — net of AFUDC | 213,349 | 213,258 | 188,353 | 179,033 | 173,486 | |||||||||||||||
Net income | 355,826 | 270,434 | 279,839 | 299,788 | 283,996 | |||||||||||||||
Less: Net income attributable to noncontrolling interests | 20,163 | 19,209 | 17,495 | 15,848 | 14,266 | |||||||||||||||
Net income attributable to common shareholder | $ | 335,663 | $ | 251,225 | $ | 262,344 | $ | 283,940 | $ | 269,730 | ||||||||||
BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 12,241,582 | $ | 11,681,571 | $ | 11,149,451 | $ | 10,514,981 | $ | 10,150,051 | ||||||||||
Liabilities and equity: | ||||||||||||||||||||
Total equity | $ | 3,916,037 | $ | 3,527,679 | $ | 3,416,751 | $ | 3,425,328 | $ | 3,278,230 | ||||||||||
Long-term debt less current maturities | 2,948,991 | 3,180,406 | 2,850,242 | 2,876,881 | 2,877,502 | |||||||||||||||
Palo Verde sale leaseback lessor notes less current maturities | 96,803 | 126,000 | 151,783 | 173,538 | 194,281 | |||||||||||||||
Total capitalization | 6,961,831 | 6,834,085 | 6,418,776 | 6,475,747 | 6,350,013 | |||||||||||||||
Current liabilities | 1,095,897 | 900,625 | 1,289,523 | 1,076,449 | 826,715 | |||||||||||||||
Deferred credits and other | 4,183,854 | 3,946,861 | 3,441,152 | 2,962,785 | 2,973,323 | |||||||||||||||
Total liabilities and equity | $ | 12,241,582 | $ | 11,681,571 | $ | 11,149,451 | $ | 10,514,981 | $ | 10,150,051 | ||||||||||
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OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2010 | 2009 | Net Change | ||||||||||
(dollars in millions) | ||||||||||||
Regulated Electricity Segment: | ||||||||||||
Operating revenues less fuel and purchased power expenses | $ | 2,134 | $ | 1,970 | $ | 164 | ||||||
Operations and maintenance | (870 | ) | (822 | ) | (48 | ) | ||||||
Depreciation and amortization | (415 | ) | (407 | ) | (8 | ) | ||||||
Taxes other than income taxes | (135 | ) | (123 | ) | (12 | ) | ||||||
Other income (expenses), net | (4 | ) | (2 | ) | (2 | ) | ||||||
Interest charges, net of allowance for funds used during construction | (204 | ) | (212 | ) | 8 | |||||||
Income taxes | (161 | ) | (142 | ) | (19 | ) | ||||||
Noncontrolling interests (Note 20) | (20 | ) | (19 | ) | (1 | ) | ||||||
Regulated electricity segment net income | 325 | 243 | 82 | |||||||||
All other (a) | 5 | (10 | ) | 15 | ||||||||
Income from Continuing Operations Attributable to Common Shareholders | 330 | 233 | 97 | |||||||||
Discontinued real estate activities, primarily impairment charges at SunCor (Note 23) | (6 | ) | (167 | ) | 161 | |||||||
All other discontinued operations (b) | 26 | 2 | 24 | |||||||||
Income (Loss) from Discontinued Operations Attributable to Common Shareholders | 20 | (165 | ) | 185 | ||||||||
Net Income Attributable to Common Shareholders | $ | 350 | $ | 68 | $ | 282 | ||||||
(a) | Includes activities related to APSES and El Dorado. None of the activities of either of these companies constitutes a reportable segment. | |
(b) | Income from discontinued operations for 2010 includes a gain of $25 million after income taxes related to the sale of APSES’ district cooling business. |
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Increase (Decrease) | ||||||||||||
Fuel and | ||||||||||||
purchased | ||||||||||||
Operating | power | |||||||||||
revenues | expenses | Net change | ||||||||||
(dollars in millions) | ||||||||||||
Retail regulatory settlement effective January 1, 2010: | ||||||||||||
Retail base rate increases, net of deferrals | $ | 269 | $ | 128 | $ | 141 | ||||||
Line extension revenues (Note 3) | 19 | 19 | ||||||||||
Transmission rate increases | 6 | 6 | ||||||||||
Higher demand-side management and renewable energy surcharges (substantially offset in operations and maintenance expense) | 33 | 2 | 31 | |||||||||
Higher fuel and purchased power costs offset by the effects of higher off-system sales, net of related PSA deferrals | 28 | 26 | 2 | |||||||||
Lower retail revenues related to recovery of PSA deferrals, substantially offset by lower amortization of fuel and purchased power expense | (270 | ) | (276 | ) | 6 | |||||||
Lower retail sales primarily due to lower usage per customer, including the effects of the Company’s energy efficiency programs, but excluding the effects of weather | (28 | ) | (9 | ) | (19 | ) | ||||||
Effects of weather on retail sales, primarily due to milder weather in the second quarter 2010 | (20 | ) | (6 | ) | (14 | ) | ||||||
Miscellaneous items, net | (5 | ) | 3 | (8 | ) | |||||||
Total | $ | 32 | $ | (132 | ) | $ | 164 | |||||
• | An increase of $25 million related to demand-side management and renewable energy programs, which are primarily offset in operating revenues; |
• | An increase of $18 million related to employee benefits costs; and |
• | An increase of $5 million related to other miscellaneous factors. |
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Year Ended | ||||||||||||
December 31, | ||||||||||||
2009 | 2008 | Net Change | ||||||||||
(dollars in millions) | ||||||||||||
Regulated Electricity Segment: | ||||||||||||
Operating revenues less fuel and purchased power expenses | $ | 1,970 | $ | 1,843 | $ | 127 | ||||||
Operations and maintenance | (822 | ) | (756 | ) | (66 | ) | ||||||
Depreciation and amortization | (407 | ) | (391 | ) | (16 | ) | ||||||
Taxes other than income taxes | (123 | ) | (125 | ) | 2 | |||||||
Other income (expenses), net | (2 | ) | (21 | ) | 19 | |||||||
Interest charges, net of allowance for funds used during construction | (212 | ) | (185 | ) | (27 | ) | ||||||
Income taxes | (142 | ) | (92 | ) | (50 | ) | ||||||
Noncontrolling interests (Note 20) | (19 | ) | (17 | ) | (2 | ) | ||||||
Regulated electricity segment net income | 243 | 256 | (13 | ) | ||||||||
All other (a) | (10 | ) | 5 | (15 | ) | |||||||
Income from Continuing Operations Attributable to Common Shareholders | 233 | 261 | (28 | ) | ||||||||
Discontinued real estate activities, primarily impairment charges at SunCor (Note 23) | (167 | ) | (26 | ) | (141 | ) | ||||||
All other discontinued operations (a) | 2 | 7 | (5 | ) | ||||||||
Loss from Discontinued Operations Attributable to Common Shareholders | (165 | ) | (19 | ) | (146 | ) | ||||||
Net Income Attributable to Common Shareholders | $ | 68 | $ | 242 | $ | (174 | ) | |||||
(a) | Includes activities related to marketing and trading, APSES and El Dorado. Income for 2008 includes income from discontinued operations of $8 million related to the resolution of certain tax issues associated with the sale of Silverhawk Power Station (“Silverhawk”) in 2005. None of these segments is a reportable segment. |
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Increase (Decrease) | ||||||||||||
Fuel and | ||||||||||||
purchased | ||||||||||||
Operating | power | |||||||||||
revenues | expenses | Net change | ||||||||||
(dollars in millions) | ||||||||||||
Higher renewable energy and demand-side management surcharges (substantially offset in operations and maintenance expense) | $ | 63 | $ | $ | 63 | |||||||
Interim retail rate increases effective January 1, 2009 | 61 | 61 | ||||||||||
Transmission rate increases | 21 | 21 | ||||||||||
Increased mark-to-market valuations of fuel and purchased power contracts related to favorable changes in market prices, net of related PSA deferrals | (18 | ) | 18 | |||||||||
Effects of weather on retail sales, primarily due to hotter weather in the third quarter of 2009 | 12 | 3 | 9 | |||||||||
Lower retail sales primarily due to lower usage per customer, including the effects of the Company’s energy efficiency programs, but excluding the effects of weather | (58 | ) | (26 | ) | (32 | ) | ||||||
Higher fuel and purchased power costs including the effects of lower off-system sales, net of related PSA deferrals | (30 | ) | (19 | ) | (11 | ) | ||||||
Lower retail revenues related to recovery of PSA deferrals, offset by lower amortization of the same amount recorded as fuel and purchased power expense (see Note 3) | (36 | ) | (36 | ) | — | |||||||
Miscellaneous items, net | (11 | ) | (9 | ) | (2 | ) | ||||||
Total | $ | 22 | $ | (105 | ) | $ | 127 | |||||
• | An increase of $62 million related to renewable energy and demand-side management programs, which are offset in operating revenues; |
• | An increase of $29 million in generation costs, including more planned maintenance, partially offset by lower costs at Palo Verde due to cost efficiency measures; and |
• | A decrease of $25 million associated with cost saving measures and other factors, including the absence of employee severance costs in 2009. |
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2010 | 2009 | 2008 | ||||||||||
Net cash flow provided by operating activities | $ | 750 | $ | 1,067 | $ | 848 | ||||||
Net cash flow used for investing activities | (576 | ) | (705 | ) | (815 | ) | ||||||
Net cash flow provided by (used for) financing activities | (209 | ) | (322 | ) | 16 | |||||||
Net increase (decrease) in cash and cash equivalents | $ | (35 | ) | $ | 40 | $ | 49 | |||||
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2010 | 2009 | 2008 | ||||||||||
Net cash flow provided by operating activities | $ | 695 | $ | 995 | $ | 820 | ||||||
Net cash flow used for investing activities | (747 | ) | (738 | ) | (879 | ) | ||||||
Net cash flow provided by (used for) financing activities | 31 | (208 | ) | 79 | ||||||||
Net increase (decrease) in cash and cash equivalents | $ | (21 | ) | $ | 49 | $ | 20 | |||||
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(dollars in millions)
Actual | Estimated | |||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | |||||||||||||||||||
APS | ||||||||||||||||||||||||
Generation: | ||||||||||||||||||||||||
Nuclear Fuel | $ | 47 | $ | 64 | $ | 63 | $ | 65 | $ | 68 | $ | 69 | ||||||||||||
Renewables | — | — | 6 | 236 | 179 | 90 | ||||||||||||||||||
Environmental | 96 | 33 | 11 | 11 | 22 | 122 | ||||||||||||||||||
Four Corners Units 4 and 5 | — | — | — | — | 294 | — | ||||||||||||||||||
Other Generation | 167 | 144 | 172 | 144 | 152 | 107 | ||||||||||||||||||
Distribution | 340 | 246 | 232 | 284 | 350 | 285 | ||||||||||||||||||
Transmission | 163 | 193 | 120 | 143 | 220 | 248 | ||||||||||||||||||
Other (a) | 43 | 52 | 62 | 78 | 49 | 41 | ||||||||||||||||||
Total APS | 856 | 732 | 666 | 961 | 1,334 | 962 | ||||||||||||||||||
Other | 48 | 13 | 4 | — | — | — | ||||||||||||||||||
Total | $ | 904 | $ | 745 | $ | 670 | $ | 961 | $ | 1,334 | $ | 962 | ||||||||||||
(a) | Primarily information systems and facilities projects. |
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Moody’s | Standard & Poor’s | Fitch | ||||
Pinnacle West | ||||||
Senior unsecured (a) | Baa3 (P) | BB+ (prelim) | N/A | |||
Commercial paper | P-3 | A-3 | F3 | |||
Outlook | Stable | Positive | Stable | |||
APS | ||||||
Senior unsecured | Baa2 | BBB- | BBB | |||
Secured lease obligation bonds | Baa2 | BBB- | BBB | |||
Commercial paper | P-2 | A-3 | F3 | |||
Outlook | Stable | Positive | Stable |
(a) | Pinnacle West has a shelf registration under SEC Rule 415. Pinnacle West currently has no outstanding, rated senior unsecured securities. However, Moody’s assigned a provisional (P) rating and Standard & Poor’s assigned a preliminary (prelim) rating to the senior unsecured securities that can be issued under such shelf registration. |
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2012- | 2014- | |||||||||||||||||||
2011 | 2013 | 2015 | Thereafter | Total | ||||||||||||||||
Long-term debt payments, including interest: (a) | ||||||||||||||||||||
APS | $ | 673 | $ | 949 | $ | 1,071 | $ | 2,587 | $ | 5,280 | ||||||||||
Pinnacle West | 177 | — | — | — | 177 | |||||||||||||||
Total long-term debt payments, including interest and capital lease obligations | 850 | 949 | 1,071 | 2,587 | 5,457 | |||||||||||||||
Short-term debt payments, including interest (b) | 17 | — | — | — | 17 | |||||||||||||||
Fuel and purchased power commitments (c) | 381 | 824 | 1,070 | 7,084 | 9,359 | |||||||||||||||
Operating lease payments | 24 | 38 | 27 | 9 | 98 | |||||||||||||||
Nuclear decommissioning funding requirements | 24 | 49 | 49 | 137 | 259 | |||||||||||||||
Renewable energy credits (d) | 57 | 40 | 40 | 196 | 333 | |||||||||||||||
Purchase obligations (e) | 214 | 125 | — | 117 | 456 | |||||||||||||||
Noncontrolling interests | 10 | 28 | 55 | — | 93 | |||||||||||||||
Total contractual commitments | $ | 1,577 | $ | 2,053 | $ | 2,312 | $ | 10,130 | $ | 16,072 | ||||||||||
(a) | The long-term debt matures at various dates through 2038 and bears interest principally at fixed rates. Interest on variable-rate long-term debt is determined by using average rates at December 31, 2010 (see Note 6). | |
(b) | The short-term debt represents commercial paper borrowings at Pinnacle West (see Note 5). | |
(c) | Our fuel and purchased power commitments include purchases of coal, electricity, natural gas, renewable energy and nuclear fuel (see Notes 3 and 11). | |
(d) | Contracts to purchase renewable energy credits in compliance with the Renewable Energy Standard. | |
(e) | These contractual obligations include commitments for capital expenditures and other obligations. These amounts do not include the purchase of SCE’s interest in Four Corners Units 4 and 5 due to additional approvals required. See discussion in “Overview.” |
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Increase (Decrease) | ||||||||
Impact on | Impact on | |||||||
Pension | Pension | |||||||
Actuarial Assumption (a) | Liability | Expense | ||||||
Discount rate: | ||||||||
Increase 1% | $ | (261 | ) | $ | (8 | ) | ||
Decrease 1% | 294 | 10 | ||||||
Expected long-term rate of return on plan assets: | ||||||||
Increase 1% | — | (7 | ) | |||||
Decrease 1% | — | 7 |
(a) | Each fluctuation assumes that the other assumptions of the calculation are held constant while the rates are changed by one percentage point. |
Increase (Decrease) | ||||||||
Impact on Other | Impact on Other | |||||||
Postretirement Benefit | Postretirement | |||||||
Actuarial Assumption (a) | Obligation | Benefit Expense | ||||||
Discount rate: | ||||||||
Increase 1% | $ | (118 | ) | $ | (5 | ) | ||
Decrease 1% | 138 | 6 | ||||||
Health care cost trend rate (b): | ||||||||
Increase 1% | 134 | 9 | ||||||
Decrease 1% | (107 | ) | (7 | ) | ||||
Expected long-term rate of return on plan assets — pretax: | ||||||||
Increase 1% | — | (2 | ) | |||||
Decrease 1% | — | 2 |
(a) | Each fluctuation assumes that the other assumptions of the calculation are held constant while the rates are changed by one percentage point. | |
(b) | This assumes a 1% change in the initial and ultimate health care cost trend rate. |
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Variable-Rate | Fixed-Rate | |||||||||||||||||||||||
Short-Term Debt | Long-Term Debt | Long-Term Debt | ||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||
2010 | Rates | Amount | Rates | Amount | Rates | Amount | ||||||||||||||||||
2011 | 0.84 | % | $ | 16,600 | 0.32 | % | $ | 26,710 | 6.32 | % | $ | 605,169 | ||||||||||||
2012 | — | — | — | — | 6.41 | % | 477,435 | |||||||||||||||||
2013 | — | — | 0.32 | % | 16,870 | 4.94 | % | 122,828 | ||||||||||||||||
2014 | — | — | — | — | 5.91 | % | 502,274 | |||||||||||||||||
2015 | — | — | — | — | 4.79 | % | 313,420 | |||||||||||||||||
Years thereafter | — | — | — | — | 6.69 | % | 1,619,150 | |||||||||||||||||
Total | $ | 16,600 | $ | 43,580 | $ | 3,640,276 | ||||||||||||||||||
Fair value | $ | 16,600 | $ | 43,580 | $ | 3,869,681 | ||||||||||||||||||
Variable-Rate | Fixed-Rate | |||||||||||||||||||||||
Short-Term Debt | Long-Term Debt | Long-Term Debt | ||||||||||||||||||||||
Interest | Interest | Interest | ||||||||||||||||||||||
2009 | Rates | Amount | Rates | Amount | Rates | Amount | ||||||||||||||||||
2010 | 1.09 | % | $ | 153,715 | 1.66 | % | $ | 276,636 | 7.90 | % | $ | 26,840 | ||||||||||||
2011 | — | — | 2.00 | % | 39,967 | 6.32 | % | 605,425 | ||||||||||||||||
2012 | — | — | 5.25 | % | 38 | 6.41 | % | 477,674 | ||||||||||||||||
2013 | — | — | 5.25 | % | 1,774 | 6.77 | % | 58,912 | ||||||||||||||||
2014 | — | — | — | — | 5.91 | % | 502,499 | |||||||||||||||||
Years thereafter | — | — | — | — | 6.46 | % | 1,817,420 | |||||||||||||||||
Total | $ | 153,715 | $ | 318,415 | $ | 3,488,770 | ||||||||||||||||||
Fair value | $ | 153,715 | $ | 318,415 | $ | 3,631,585 | ||||||||||||||||||
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Variable-Rate | Fixed-Rate | |||||||||||||||
Long-Term Debt | Long-Term Debt | |||||||||||||||
Interest | Interest | |||||||||||||||
2010 | Rates | Amount | Rates | Amount | ||||||||||||
2011 | 0.32 | % | $ | 26,710 | 6.48 | % | $ | 430,169 | ||||||||
2012 | — | — | 6.41 | % | 477,435 | |||||||||||
2013 | 0.32 | % | 16,870 | 4.94 | % | 122,828 | ||||||||||
2014 | — | — | 5.91 | % | 502,274 | |||||||||||
2015 | — | — | 4.79 | % | 313,420 | |||||||||||
Years thereafter | — | — | 6.69 | % | 1,619,150 | |||||||||||
Total | $ | 43,580 | $ | 3,465,276 | ||||||||||||
Fair value | $ | 43,580 | $ | 3,693,276 | ||||||||||||
Variable-Rate | Fixed-Rate | |||||||||||||||
Long-Term Debt | Long-Term Debt | |||||||||||||||
Interest | Interest | |||||||||||||||
2009 | Rates | Amount | Rates | Amount | ||||||||||||
2010 | 0.25 | % | $ | 196,170 | 7.91 | % | $ | 26,789 | ||||||||
2011 | 0.26 | % | 26,710 | 6.48 | % | 430,398 | ||||||||||
2012 | — | — | 6.41 | % | 477,654 | |||||||||||
2013 | — | — | 6.77 | % | 58,910 | |||||||||||
2014 | — | — | 5.91 | % | 502,499 | |||||||||||
Years thereafter | — | — | 6.46 | % | 1,817,420 | |||||||||||
Total | $ | 222,880 | $ | 3,313,670 | ||||||||||||
Fair value | $ | 222,880 | $ | 3,451,255 | ||||||||||||
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2010 | 2009 | |||||||
Mark-to-market of net positions at beginning of year | $ | (169 | ) | $ | (282 | ) | ||
Recognized in earnings: | ||||||||
Change in mark-to-market losses for future period deliveries | (7 | ) | (4 | ) | ||||
Mark-to-market losses realized including ineffectiveness during the period | 5 | 11 | ||||||
Decrease (increase) in regulatory asset | (36 | ) | 76 | |||||
Recognized in OCI: | ||||||||
Change in mark-to-market losses for future period deliveries (a) | (155 | ) | (155 | ) | ||||
Mark-to-market losses realized during the period | 123 | 185 | ||||||
Change in valuation techniques | — | — | ||||||
Mark-to-market of net positions at end of year | $ | (239 | ) | $ | (169 | ) | ||
(a) | The changes in mark-to-market recorded in OCI are due primarily to changes in forward natural gas prices. |
Total | ||||||||||||||||||||||||||||
Years | fair | |||||||||||||||||||||||||||
Source of Fair Value | 2011 | 2012 | 2013 | 2014 | 2015 | thereafter | value | |||||||||||||||||||||
Prices actively quoted | $ | (1 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | $ | (1 | ) | ||||||||||||
Prices provided by other external sources | (139 | ) | (47 | ) | (14 | ) | — | — | — | (200 | ) | |||||||||||||||||
Prices based on models and other valuation methods | (7 | ) | (4 | ) | (7 | ) | (6 | ) | (6 | ) | (8 | ) | (38 | ) | ||||||||||||||
Total by maturity | $ | (147 | ) | $ | (51 | ) | $ | (21 | ) | $ | (6 | ) | $ | (6 | ) | $ | (8 | ) | $ | (239 | ) | |||||||
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December 31, 2010 | December 31, 2009 | |||||||||||||||
Gain (Loss) | Gain (Loss) | |||||||||||||||
Price Up 10% | Price Down 10% | Price Up 10% | Price Down 10% | |||||||||||||
Mark-to-market changes reported in: | ||||||||||||||||
Earnings | ||||||||||||||||
Electricity | $ | — | $ | — | $ | 1 | $ | (1 | ) | |||||||
Natural gas | 1 | (1 | ) | 1 | (1 | ) | ||||||||||
Regulatory asset (liability) or OCI (a) | ||||||||||||||||
Electricity | 13 | (13 | ) | 21 | (21 | ) | ||||||||||
Natural gas | 42 | (42 | ) | 59 | (59 | ) | ||||||||||
Total | $ | 56 | $ | (56 | ) | $ | 82 | $ | (82 | ) | ||||||
(a) | These contracts are hedges of our forecasted purchases of natural gas and electricity. The impact of these hypothetical price movements would substantially offset the impact that these same price movements would have on the physical exposures being hedged. To the extent the amounts are eligible for inclusion in the PSA, the amounts are recorded as either a regulatory asset or liability. |
DISCLOSURES ABOUT MARKET RISK
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FINANCIAL STATEMENT SCHEDULES
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81 | ||||
83 | ||||
84 | ||||
86 | ||||
87 | ||||
88 | ||||
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154 | ||||
156 | ||||
157 | ||||
159 | ||||
160 | ||||
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Financial Statement Schedules for 2010, 2009 and 2008 | ||||
168 | ||||
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80
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Pinnacle West Capital Corporation
Phoenix, Arizona
81
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February 18, 2011
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
OPERATING REVENUES | ||||||||||||
Regulated electricity segment | $ | 3,180,678 | $ | 3,149,187 | $ | 3,127,383 | ||||||
Marketing and trading | — | — | 66,897 | |||||||||
Other revenues | 82,967 | 26,723 | 25,407 | |||||||||
Total | 3,263,645 | 3,175,910 | 3,219,687 | |||||||||
OPERATING EXPENSES | ||||||||||||
Regulated electricity segment fuel and purchased power | 1,046,815 | 1,178,620 | 1,284,116 | |||||||||
Marketing and trading fuel and purchased power | — | — | 45,572 | |||||||||
Operations and maintenance | 877,406 | 831,863 | 765,277 | |||||||||
Depreciation and amortization | 414,555 | 407,463 | 391,190 | |||||||||
Taxes other than income taxes | 135,334 | 123,277 | 124,853 | |||||||||
Other expenses | 65,651 | 24,534 | 26,032 | |||||||||
Total | 2,539,761 | 2,565,757 | 2,637,040 | |||||||||
OPERATING INCOME | 723,884 | 610,153 | 582,647 | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||
Allowance for equity funds used during construction (Note 1) | 22,066 | 14,999 | 18,636 | |||||||||
Other income (Note 19) | 6,368 | 5,278 | 9,541 | |||||||||
Other expense (Note 19) | (9,764 | ) | (14,269 | ) | (31,576 | ) | ||||||
Total | 18,670 | 6,008 | (3,399 | ) | ||||||||
INTEREST EXPENSE | ||||||||||||
Interest charges | 244,174 | 237,527 | 219,916 | |||||||||
Allowance for borrowed funds used during construction (Note 1) | (16,539 | ) | (10,430 | ) | (14,547 | ) | ||||||
Total | 227,635 | 227,097 | 205,369 | |||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 514,919 | 389,064 | 373,879 | |||||||||
INCOME TAXES (Note 4) | 164,321 | 136,506 | 95,544 | |||||||||
INCOME FROM CONTINUING OPERATIONS | 350,598 | 252,558 | 278,335 | |||||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS | ||||||||||||
Net of income tax expense (benefit) of $12,808, $(107,596) and $(11,648) (Note 22) | 19,611 | (179,794 | ) | (18,715 | ) | |||||||
NET INCOME | 370,209 | 72,764 | 259,620 | |||||||||
Less: Net income attributable to noncontrolling interests (Note 20) | 20,156 | 4,434 | 17,495 | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | $ | 350,053 | $ | 68,330 | $ | 242,125 | ||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING — BASIC | 106,573 | 101,161 | 100,691 | |||||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING — DILUTED | 107,138 | 101,264 | 100,965 | |||||||||
EARNINGS PER WEIGHTED — AVERAGE COMMON SHARE OUTSTANDING | ||||||||||||
Income from continuing operations attributable to common shareholders — basic | $ | 3.10 | $ | 2.31 | $ | 2.59 | ||||||
Net income attributable to common shareholders — basic | 3.28 | 0.68 | 2.40 | |||||||||
Income from continuing operations attributable to common shareholders — diluted | 3.08 | 2.30 | 2.58 | |||||||||
Net income attributable to common shareholders — diluted | 3.27 | 0.67 | 2.40 | |||||||||
DIVIDENDS DECLARED PER SHARE | $ | 2.10 | $ | 2.10 | $ | 2.10 | ||||||
AMOUNTS ATTRIBUTABLE TO COMMON SHAREHOLDERS: | ||||||||||||
Income from continuing operations, net of tax | $ | 330,435 | $ | 233,349 | $ | 260,840 | ||||||
Discontinued operations, net of tax | 19,618 | (165,019 | ) | (18,715 | ) | |||||||
Net income attributable to common shareholders | $ | 350,053 | $ | 68,330 | $ | 242,125 | ||||||
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December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 110,188 | $ | 145,378 | ||||
Customer and other receivables | 324,207 | 301,915 | ||||||
Accrued unbilled revenues | 103,292 | 110,971 | ||||||
Allowance for doubtful accounts | (7,981 | ) | (6,153 | ) | ||||
Materials and supplies (at average cost) | 181,414 | 176,020 | ||||||
Fossil fuel (at average cost) | 21,575 | 39,245 | ||||||
Deferred income taxes (Note 4) | 94,602 | 53,990 | ||||||
Income tax receivable (Note 4) | 2,483 | 26,005 | ||||||
Assets from risk management activities (Note 18) | 73,788 | 50,619 | ||||||
Other current assets | 28,362 | 30,747 | ||||||
Total current assets | 931,930 | 928,737 | ||||||
INVESTMENTS AND OTHER ASSETS | ||||||||
Real estate investments — net (Notes 1, 6 and 23) | — | 119,989 | ||||||
Assets from risk management activities (Note 18) | 39,032 | 28,855 | ||||||
Nuclear decommissioning trust (Note 14) | 469,886 | 414,576 | ||||||
Other assets | 116,216 | 110,091 | ||||||
Total investments and other assets | 625,134 | 673,511 | ||||||
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6, 9 and 10) | ||||||||
Plant in service and held for future use | 13,201,960 | 12,848,138 | ||||||
Accumulated depreciation and amortization | (4,514,204 | ) | (4,340,645 | ) | ||||
Net | 8,687,756 | 8,507,493 | ||||||
Construction work in progress | 459,361 | 467,700 | ||||||
Palo Verde sale leaseback, net of accumulated depreciation of $213,094 and $204,328 (Note 20) | 137,956 | 146,722 | ||||||
Intangible assets, net of accumulated amortization of $330,584 and $294,724 | 184,952 | 164,380 | ||||||
Nuclear fuel, net of accumulated amortization of $85,270 and $64,544 | 108,794 | 118,243 | ||||||
Total property, plant and equipment | 9,578,819 | 9,404,538 | ||||||
DEFERRED DEBITS | ||||||||
Regulatory assets (Notes 1, 3 and 4) | 1,048,656 | 813,161 | ||||||
Income tax receivable (Note 4) | 65,103 | 65,103 | ||||||
Other | 113,061 | 101,274 | ||||||
Total deferred debits | 1,226,820 | 979,538 | ||||||
TOTAL ASSETS | $ | 12,362,703 | $ | 11,986,324 | ||||
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CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | $ | 236,354 | $ | 240,637 | ||||
Accrued taxes (Note 4) | 104,711 | 104,011 | ||||||
Accrued interest | 54,831 | 54,596 | ||||||
Short-term borrowings (Note 5) | 16,600 | 153,715 | ||||||
Current maturities of long-term debt (Note 6) | 631,879 | 303,476 | ||||||
Customer deposits | 68,322 | 71,026 | ||||||
Liabilities from risk management activities (Note 18) | 58,976 | 55,908 | ||||||
Other current liabilities | 139,063 | 125,574 | ||||||
Total current liabilities | 1,310,736 | 1,108,943 | ||||||
LONG-TERM DEBT LESS CURRENT MATURITIES (Note 6) | ||||||||
Long-term debt less current maturities | 2,948,991 | 3,370,524 | ||||||
Palo Verde sale leaseback lessor notes less current maturities (Note 20) | 96,803 | 126,000 | ||||||
Total long-term debt less current maturities | 3,045,794 | 3,496,524 | ||||||
DEFERRED CREDITS AND OTHER | ||||||||
Deferred income taxes (Note 4) | 1,833,566 | 1,496,095 | ||||||
Deferred fuel and purchased power regulatory liability (Note 3) | 58,442 | 87,291 | ||||||
Other regulatory liabilities (Notes 1 and 3) | 694,589 | 679,072 | ||||||
Liability for asset retirements (Note 12) | 328,571 | 301,783 | ||||||
Liabilities for pension and other postretirement benefits (Note 8) | 813,121 | 811,338 | ||||||
Liabilities from risk management activities (Note 18) | 65,390 | 62,443 | ||||||
Customer advances | 121,645 | 136,595 | ||||||
Coal mine reclamation | 117,243 | 92,060 | ||||||
Unrecognized tax benefits (Note 4) | 66,349 | 142,099 | ||||||
Other | 132,031 | 144,077 | ||||||
Total deferred credits and other | 4,230,947 | 3,952,853 | ||||||
COMMITMENTS AND CONTINGENCIES (SEE NOTES) | ||||||||
EQUITY (Note 7) | ||||||||
Common stock, no par value; authorized 150,000,000 shares; issued 108,820,067 at end of 2010 and 101,527,937 at end of 2009 | 2,421,372 | 2,153,295 | ||||||
Treasury stock at cost; 50,410 shares at end of 2010 and 93,239 at end of 2009 | (2,239 | ) | (3,812 | ) | ||||
Total common stock | 2,419,133 | 2,149,483 | ||||||
Retained earnings | 1,423,961 | 1,298,213 | ||||||
Accumulated other comprehensive loss: | ||||||||
Pension and other postretirement benefits (Note 8) | (59,420 | ) | (50,892 | ) | ||||
Derivative instruments | (100,347 | ) | (80,695 | ) | ||||
Total accumulated other comprehensive loss | (159,767 | ) | (131,587 | ) | ||||
Total shareholders’ equity | 3,683,327 | 3,316,109 | ||||||
Noncontrolling interests (Note 20) | 91,899 | 111,895 | ||||||
Total equity | 3,775,226 | 3,428,004 | ||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,362,703 | $ | 11,986,324 | ||||
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net Income | $ | 370,209 | $ | 72,764 | $ | 259,620 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Gain on sale of district cooling business | (41,973 | ) | — | — | ||||||||
Depreciation and amortization including nuclear fuel | 472,807 | 450,864 | 431,672 | |||||||||
Deferred fuel and purchased power | 93,631 | (51,742 | ) | (80,183 | ) | |||||||
Deferred fuel and purchased power amortization | (122,481 | ) | 147,018 | 183,126 | ||||||||
Allowance for equity funds used during construction | (22,066 | ) | (14,999 | ) | (18,636 | ) | ||||||
Real estate impairment charge | 16,731 | 280,188 | 53,250 | |||||||||
Gain on real estate debt restructuring | (16,755 | ) | — | — | ||||||||
Deferred income taxes | 260,411 | 105,492 | 158,024 | |||||||||
Change in mark-to-market valuations | 2,688 | (6,939 | ) | 9,074 | ||||||||
Changes in current assets and liabilities: | ||||||||||||
Customer and other receivables | (67,943 | ) | 12,292 | 73,446 | ||||||||
Accrued unbilled revenues | 7,679 | (10,882 | ) | 7,388 | ||||||||
Materials, supplies and fossil fuel | 12,276 | (12,261 | ) | (25,453 | ) | |||||||
Other current assets | 5,246 | 24,647 | 56,775 | |||||||||
Accounts payable | 9,125 | (27,328 | ) | (69,439 | ) | |||||||
Accrued taxes and income tax receivable — net | 24,222 | (31,792 | ) | (13,149 | ) | |||||||
Other current liabilities | 5,204 | 29,274 | (5,130 | ) | ||||||||
Expenditures for real estate investments | (622 | ) | (2,957 | ) | (21,168 | ) | ||||||
Other changes in real estate assets | 4,068 | (4,216 | ) | 18,211 | ||||||||
Change in margin and collateral accounts — assets | (9,937 | ) | (12,806 | ) | 17,450 | |||||||
Change in margin and collateral accounts — liabilities | (88,315 | ) | 35,654 | (132,416 | ) | |||||||
Change in long term income tax receivable | — | (131,984 | ) | — | ||||||||
Change in unrecognized tax benefits | (73,621 | ) | 137,898 | (94,551 | ) | |||||||
Change in other regulatory liabilities | 54,518 | 110,642 | (12,129 | ) | ||||||||
Change in other long-term assets | (43,189 | ) | (47,899 | ) | 6,104 | |||||||
Change in other long-term liabilities | (101,456 | ) | 16,377 | 46,207 | ||||||||
Net cash flow provided by operating activities | 750,457 | 1,067,305 | 848,093 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | (748,374 | ) | (764,609 | ) | (935,577 | ) | ||||||
Contributions in aid of construction | 32,754 | 53,525 | 60,292 | |||||||||
Allowance for borrowed funds used during construction | (16,778 | ) | (10,745 | ) | (18,820 | ) | ||||||
Proceeds from the sale of district cooling business | 100,300 | — | — | |||||||||
Proceeds from nuclear decommissioning trust sales | 560,469 | 441,242 | 317,619 | |||||||||
Investment in nuclear decommissioning trust | (584,885 | ) | (463,033 | ) | (338,361 | ) | ||||||
Proceeds from sale of commercial real estate investments | 72,038 | 43,370 | 94,171 | |||||||||
Other | 8,576 | (4,667 | ) | 5,517 | ||||||||
Net cash flow used for investing activities | (575,900 | ) | (704,917 | ) | (815,159 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Issuance of long-term debt | — | 867,469 | 96,934 | |||||||||
Repayment of long-term debt | (106,572 | ) | (456,882 | ) | (202,234 | ) | ||||||
Short-term borrowings and payments — net | (137,115 | ) | (516,754 | ) | 331,741 | |||||||
Dividends paid on common stock | (216,979 | ) | (205,076 | ) | (204,247 | ) | ||||||
Common stock equity issuance | 255,971 | 3,302 | 3,687 | |||||||||
Noncontrolling interests | (11,403 | ) | (14,485 | ) | (13,782 | ) | ||||||
Other | 6,351 | 171 | 3,891 | |||||||||
Net cash flow provided by (used for) financing activities | (209,747 | ) | (322,255 | ) | 15,990 | |||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (35,190 | ) | 40,133 | 48,924 | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 145,378 | 105,245 | 56,321 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 110,188 | $ | 145,378 | $ | 105,245 | ||||||
Supplemental disclosure of cash flow information Cash paid during the period for: | ||||||||||||
Income taxes, net of (refunds) | $ | (23,447 | ) | $ | (52,776 | ) | $ | 24,233 | ||||
Interest, net of amounts capitalized | $ | 221,728 | $ | 216,608 | $ | 205,546 |
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
COMMON STOCK (Note 7) | ||||||||||||
Balance at beginning of year | $ | 2,153,295 | $ | 2,151,323 | $ | 2,135,787 | ||||||
Issuance of common stock | 263,297 | 10,620 | 10,845 | |||||||||
Other | 4,780 | (8,648 | ) | 4,691 | ||||||||
Balance at end of year | 2,421,372 | 2,153,295 | 2,151,323 | |||||||||
TREASURY STOCK (Note 7) | ||||||||||||
Balance at beginning of year | (3,812 | ) | (2,854 | ) | (2,054 | ) | ||||||
Purchase of treasury stock | (82 | ) | (2,156 | ) | (1,387 | ) | ||||||
Reissuance of treasury stock used for stock compensation | 1,655 | 1,198 | 587 | |||||||||
Balance at end of year | (2,239 | ) | (3,812 | ) | (2,854 | ) | ||||||
RETAINED EARNINGS | ||||||||||||
Balance at beginning of year | 1,298,213 | 1,444,208 | 1,413,741 | |||||||||
Net income attributable to common shareholders | 350,053 | 68,330 | 242,125 | |||||||||
Common stock dividends | (224,305 | ) | (212,386 | ) | (211,405 | ) | ||||||
Other | — | (1,939 | ) | (253 | ) | |||||||
Balance at end of year | 1,423,961 | 1,298,213 | 1,444,208 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Balance at beginning of year | (131,587 | ) | (146,698 | ) | (15,863 | ) | ||||||
Pension and other postretirement benefits (Note 8): | ||||||||||||
Unrealized actuarial loss, net of tax benefit of $(7,738), $(4,223) and $(7,801) | (11,795 | ) | (6,350 | ) | (11,053 | ) | ||||||
Amortization to income: | ||||||||||||
Actuarial loss, net of tax benefit of $1,870, $1,705 and $1,578 | 2,868 | 2,615 | 2,437 | |||||||||
Prior service cost, net of tax benefit of $201, $215 and $222 | 308 | 329 | 343 | |||||||||
Transition obligation, net of tax benefit of $59, $39 and $40 | 91 | 61 | 62 | |||||||||
Derivative instruments: | ||||||||||||
Net unrealized loss, net of tax benefit of $(61,348), $(61,329) and $(54,490) | (93,939 | ) | (93,996 | ) | (83,093 | ) | ||||||
Reclassification of net realized (gain) loss to income, net of tax (expense) benefit of $48,453, $72,877 and $(24,776) | 74,287 | 112,452 | (39,531 | ) | ||||||||
Balance at end of year | (159,767 | ) | (131,587 | ) | (146,698 | ) | ||||||
NONCONTROLLING INTERESTS | ||||||||||||
Balance at beginning of year | 111,895 | 124,990 | 128,456 | |||||||||
Net income attributable to noncontrolling interests | 20,156 | 4,434 | 17,495 | |||||||||
Net capital activities by noncontrolling interests | (40,152 | ) | (17,529 | ) | (20,961 | ) | ||||||
Balance at end of year | 91,899 | 111,895 | 124,990 | |||||||||
TOTAL EQUITY | $ | 3,775,226 | $ | 3,428,004 | $ | 3,570,969 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS | ||||||||||||
Net income attributable to common shareholders | $ | 350,053 | $ | 68,330 | $ | 242,125 | ||||||
Other comprehensive income (loss) | (28,180 | ) | 15,111 | (130,835 | ) | |||||||
Comprehensive income attributable to common shareholders | $ | 321,873 | $ | 83,441 | $ | 111,290 | ||||||
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Amount | ||||||||||||||||
reported after | ||||||||||||||||
Reclassifications | adoption of | |||||||||||||||
as a result of the | amended VIE | |||||||||||||||
adoption of | accounting | |||||||||||||||
As | new VIE | Reclassifications | guidance and | |||||||||||||
Statement of Income for the Year | previously | accounting | for discontinued | discontinued | ||||||||||||
Ended December 31, 2009 | reported | guidance | operations | operations | ||||||||||||
Operating Revenues | ||||||||||||||||
Real estate segment | $ | 103,152 | $ | — | $ | (103,152 | ) | $ | — | |||||||
Other revenues | 44,762 | — | (18,039 | ) | 26,723 | |||||||||||
Operating Expenses | ||||||||||||||||
Real estate segment operations | 102,381 | — | (102,381 | ) | — | |||||||||||
Real estate impairment charge | 258,453 | — | (258,453 | ) | — | |||||||||||
Operations and maintenance | 875,357 | (39,660 | ) | (3,834 | ) | 831,863 | ||||||||||
Depreciation and amortization | 404,331 | 7,704 | (4,572 | ) | 407,463 | |||||||||||
Taxes other than income taxes | 123,663 | — | (386 | ) | 123,277 | |||||||||||
Other expenses | 32,523 | — | (7,989 | ) | 24,534 | |||||||||||
Other | ||||||||||||||||
Other income | 5,669 | — | (391 | ) | 5,278 | |||||||||||
Interest Expense | ||||||||||||||||
Interest charges | 233,859 | 12,747 | (9,079 | ) | 237,527 | |||||||||||
Allowance for borrowed funds used during construction | (10,745 | ) | — | 315 | (10,430 | ) | ||||||||||
Income Taxes | 37,827 | — | 98,679 | 136,506 | ||||||||||||
Income From Continuing Operations | 67,231 | 19,209 | 166,118 | 252,558 | ||||||||||||
Loss From Discontinued Operations | (13,676 | ) | — | (166,118 | ) | (179,794 | ) | |||||||||
Net Income | 53,555 | 19,209 | — | 72,764 | ||||||||||||
Net Income (Loss) Attributable To Noncontrolling Interests | (14,775 | ) | 19,209 | — | 4,434 | |||||||||||
Statement of Income for the Year Ended December 31, 2008 | ||||||||||||||||
Operating Revenues | ||||||||||||||||
Real estate segment | $ | 74,549 | $ | — | $ | (74,549 | ) | $ | — | |||||||
Other revenues | 41,729 | — | (16,322 | ) | 25,407 | |||||||||||
Operating Expenses | ||||||||||||||||
Real estate segment operations | 100,102 | — | (100,102 | ) | — | |||||||||||
Real estate impairment charge | 18,108 | — | (18,108 | ) | — | |||||||||||
Operations and maintenance | 807,852 | (39,660 | ) | (2,915 | ) | 765,277 | ||||||||||
Depreciation and amortization | 390,093 | 7,704 | (6,607 | ) | 391,190 | |||||||||||
Taxes other than income taxes | 125,336 | — | (483 | ) | 124,853 | |||||||||||
Other expenses | 34,171 | — | (8,139 | ) | 26,032 | |||||||||||
Other | ||||||||||||||||
Other income | 12,797 | — | (3,256 | ) | 9,541 | |||||||||||
Interest Expense | ||||||||||||||||
Interest charges | 215,684 | 14,461 | (10,229 | ) | 219,916 | |||||||||||
Allowance for borrowed funds used during construction | (18,820 | ) | — | 4,273 | (14,547 | ) | ||||||||||
Income Taxes | 76,897 | — | 18,647 | 95,544 | ||||||||||||
Income From Continuing Operations | 231,304 | 17,495 | 29,536 | 278,335 | ||||||||||||
Income (Loss) From Discontinued Operations | 10,821 | — | (29,536 | ) | (18,715 | ) | ||||||||||
Net Income | 242,125 | 17,495 | — | 259,620 | ||||||||||||
Net Income Attributable To Noncontrolling Interests | — | 17,495 | — | 17,495 |
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Reclassifications as a | Amounts reported | |||||||||||
result of the adoption of | after adoption of | |||||||||||
As previously | the new VIE accounting | amended VIE | ||||||||||
Balance Sheets – December 31, 2009 | reported | guidance | accounting guidance | |||||||||
Property, Plant and Equipment — Palo Verde sale leaseback, net of accumulated depreciation | $ | — | $ | 146,722 | $ | 146,722 | ||||||
Deferred Debits — Regulatory assets | 781,714 | 31,447 | 813,161 | |||||||||
Current Liabilities — Current maturities of long-term debt | 277,693 | 25,783 | 303,476 | |||||||||
Long-Term Debt Less Current Maturities Palo Verde sale leaseback lessor notes | — | 126,000 | 126,000 | |||||||||
Deferred Credits and Other — Other | 200,015 | (55,938 | ) | 144,077 | ||||||||
Equity — Noncontrolling interests | 29,571 | 82,324 | 111,895 |
Amounts reported | ||||||||||||
Reclassifications as a | after adoption of | |||||||||||
result of the adoption of | amended VIE | |||||||||||
the new VIE accounting | accounting | |||||||||||
guidance and to | guidance and to | |||||||||||
Statement of Cash Flows for the | As previously | conform to current year | conform to current | |||||||||
Year Ended December 31, 2009 | reported | presentation | year presentation | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 53,555 | $ | 19,209 | $ | 72,764 | ||||||
Depreciation and amortization including nuclear fuel | 443,160 | 7,704 | 450,864 | |||||||||
Other current assets | (9,186 | ) | 33,833 | 24,647 | ||||||||
Home inventory | 33,833 | (33,833 | ) | — | ||||||||
Other long-term liabilities | 7,050 | 9,327 | 16,377 | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Repayment of long-term debt | (435,127 | ) | (21,755 | ) | (456,882 | ) | ||||||
Noncontrolling interests | — | (14,485 | ) | (14,485 | ) | |||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash paid for interest, net of amounts capitalized | 203,860 | 12,748 | 216,608 |
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Amounts reported | ||||||||||||
Reclassifications as a | after adoption of | |||||||||||
result of the adoption of | amended VIE | |||||||||||
the new VIE accounting | accounting | |||||||||||
guidance and to | guidance and to | |||||||||||
Statement of Cash Flows for the | As previously | conform to current year | conform to current | |||||||||
Year Ended December 31, 2008 | reported | presentation | year presentation | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Net income | $ | 242,125 | $ | 17,495 | $ | 259,620 | ||||||
Depreciation and amortization including nuclear fuel | 423,969 | 7,703 | 431,672 | |||||||||
Other current assets | 8,734 | 48,041 | 56,775 | |||||||||
Home inventory | 48,041 | (48,041 | ) | — | ||||||||
Other long-term liabilities | 36,880 | 9,327 | 46,207 | |||||||||
Cash Flows from Financing Activities | ||||||||||||
Repayment of long-term debt | (181,491 | ) | (20,743 | ) | (202,234 | ) | ||||||
Noncontrolling interests | — | (13,782 | ) | (13,782 | ) | |||||||
Supplemental Disclosure of Cash Flow Information | ||||||||||||
Cash paid for interest, net of amounts capitalized | 191,085 | 14,461 | 205,546 |
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• | material and labor; |
• | contractor costs; |
• | capitalized leases; |
• | construction overhead costs (where applicable); and |
• | capitalized interest or an allowance for funds used during construction. |
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• | Fossil plant — 18 years; |
• | Nuclear plant — 17 years; |
• | Other generation — 25 years; |
• | Transmission — 40 years; |
• | Distribution — 35 years; and |
• | Other — 7 years. |
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• | Revenue accounting treatment for line extension payments received for new or upgraded service from January 1, 2010 through year end 2012 (or until new rates are established in APS’s next general rate case, if that is before the end of 2012); |
• | An authorized return on common equity of 11%; |
• | A capital structure comprised of 46.2% debt and 53.8% common equity; |
• | A commitment from APS to reduce average annual operational expenses by at least $30 million from 2010 through 2014; |
• | Authorization and requirements of equity infusions into APS of at least $700 million during the period beginning June 1, 2009 through December 31, 2014 ($253 million of which was infused into APS from proceeds of a Pinnacle West equity issuance in the second quarter of 2010); and |
• | Various modifications to the existing energy efficiency, demand-side management and renewable energy programs that require APS to, among other things, expand its conservation and demand-side management programs and its use of renewable energy, as well as allow for concurrent recovery of renewable energy expenses and provide for more concurrent recovery of demand-side management costs and incentives. |
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• | APS records deferrals for recovery or refund to the extent actual retail fuel and purchased power costs vary from the Base Fuel Rate; |
• | under a 90/10 sharing arrangement, APS defers 90% of the difference between retail fuel and purchased power costs (excluding certain costs, such as renewable energy resources and the capacity components of long-term purchased power agreements acquired through competitive procurement) and the Base Fuel Rate; APS absorbs 10% of the retail fuel and purchased power costs above the Base Fuel Rate and retains 10% of the benefit from the retail fuel and purchased power costs that are below the Base Fuel Rate; |
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• | an adjustment to the PSA rate is made annually each February 1st (unless otherwise approved by the ACC) and goes into effect automatically unless suspended by the ACC; |
• | the PSA uses a forward-looking estimate of fuel and purchased power costs to set the annual PSA rate, which is reconciled to actual costs experienced for each PSA Year (February 1 through January 31) (see the following bullet point); |
• | the PSA rate includes (a) a “Forward Component,” under which APS recovers or refunds differences between expected fuel and purchased power costs for the upcoming calendar year and those embedded in the Base Fuel Rate; (b) a “Historical Component,” under which differences between actual fuel and purchased power costs and those recovered through the combination of the Base Fuel Rate and the Forward Component are recovered during the next PSA Year; and (c) a “Transition Component,” under which APS may seek mid-year PSA changes due to large variances between actual fuel and purchased power costs and the combination of the Base Fuel Rate and the Forward Component; and |
• | the PSA rate may not be increased or decreased more than $0.004 per kWh in a year without permission of the ACC. |
Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Beginning balance | $ | (87 | ) | $ | 8 | |||
Deferred fuel and purchased power costs-current period | (93 | ) | 52 | |||||
Amounts recovered through revenues | 122 | (147 | ) | |||||
Ending balance | $ | (58 | ) | $ | (87 | ) | ||
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December 31, | ||||||||
2010 | 2009 | |||||||
Pension and other postretirement benefits (Note 8) | $ | 669 | $ | 532 | ||||
Deferred fuel and purchased power — mark-to-market (Note 18) | 77 | 41 | ||||||
Deferred income taxes (Note 4) | 72 | 59 | ||||||
Transmission vegetation management | 46 | 34 | ||||||
Coal reclamation | 38 | 16 | ||||||
Palo Verde VIE (Note 20) | 33 | 31 | ||||||
Deferred compensation | 32 | 31 | ||||||
Tax expense of Medicare subsidy (Note 8) | 23 | — | ||||||
Loss on reacquired debt | 22 | 23 | ||||||
Demand side management (a) | 18 | 18 | ||||||
Other | 19 | 28 | ||||||
Total regulatory assets (b) | $ | 1,049 | $ | 813 | ||||
(a) | See Cost Recovery Mechanisms discussion above. | |
(b) | There are no regulatory assets for which regulators have allowed recovery of costs but not allowed a return by exclusion from rate base. |
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December 31, | ||||||||
2010 | 2009 | |||||||
Removal costs (Note 1) (a) | $ | 379 | $ | 385 | ||||
Asset retirement obligations (Note 12) | 184 | 156 | ||||||
Deferred fuel and purchased power (b)(c) | 58 | 87 | ||||||
Renewable energy standard (b) | 50 | 51 | ||||||
Spent nuclear fuel (Note 11) | 45 | 34 | ||||||
Deferred gains on utility property | 18 | 20 | ||||||
Tax benefit of Medicare subsidy (Note 8) | — | 17 | ||||||
Other | 19 | 16 | ||||||
Total regulatory liabilities | $ | 753 | $ | 766 | ||||
(a) | In accordance with regulatory accounting guidance, APS accrues for removal costs for its regulated assets, even if there is no legal obligation for removal. | |
(b) | See Cost Recovery Mechanisms discussion above. | |
(c) | Subject to a carrying charge. |
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2010 | 2009 | 2008 | ||||||||||
Total unrecognized tax benefits, January 1 | $ | 201,216 | $ | 63,318 | $ | 157,869 | ||||||
Additions for tax positions of the current year | 7,551 | 44,094 | 12,923 | |||||||||
Additions for tax positions of prior years | — | 98,942 | 32,510 | |||||||||
Reductions for tax positions of prior years for: | ||||||||||||
Changes in judgment | (11,017 | ) | — | (4,454 | ) | |||||||
Settlements with taxing authorities | (62,199 | ) | (4,089 | ) | (35,812 | ) | ||||||
Lapses of applicable statute of limitations | (7,956 | ) | (1,049 | ) | (99,718 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 127,595 | $ | 201,216 | $ | 63,318 | ||||||
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Current: | ||||||||||||
Federal | $ | (108,827 | ) | $ | (38,502 | ) | $ | (85,866 | ) | |||
State | 25,545 | (38,080 | ) | 11,738 | ||||||||
Total current | (83,282 | ) | (76,582 | ) | (74,128 | ) | ||||||
Deferred: | ||||||||||||
Income from continuing operations | 271,147 | 105,492 | 158,024 | |||||||||
Discontinued operations | (10,736 | ) | — | — | ||||||||
Total deferred | 260,411 | 105,492 | 158,024 | |||||||||
Total income tax expense | 177,129 | 28,910 | 83,896 | |||||||||
Less: income tax expense (benefit) on discontinued operations | 12,808 | (107,596 | ) | (11,648 | ) | |||||||
Income tax expense — continuing operations | $ | 164,321 | $ | 136,506 | $ | 95,544 | ||||||
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Federal income tax expense at 35% statutory rate | $ | 180,222 | $ | 136,172 | $ | 130,858 | ||||||
Increases (reductions) in tax expense resulting from: | ||||||||||||
State income tax net of federal income tax benefit | 17,878 | 14,837 | 12,640 | |||||||||
Credits and favorable adjustments related to prior years resolved in current year | (17,300 | ) | — | (28,873 | ) | |||||||
Medicare Subsidy Part-D (see Note 8) | 1,311 | (2,095 | ) | (1,993 | ) | |||||||
Allowance for equity funds used during construction (see Note 1) | (6,563 | ) | (4,265 | ) | (5,755 | ) | ||||||
Palo Verde VIE noncontrolling interest (see Note 20) | (7,057 | ) | (6,723 | ) | (6,123 | ) | ||||||
Other | (4,170 | ) | (1,420 | ) | (5,210 | ) | ||||||
Income tax expense — continuing operations | $ | 164,321 | $ | 136,506 | $ | 95,544 | ||||||
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December 31, | ||||||||
2010 | 2009 | |||||||
Current asset | $ | 94,602 | $ | 53,990 | ||||
Long-term liability | (1,833,566 | ) | (1,496,095 | ) | ||||
Deferred income taxes — net | $ | (1,738,964 | ) | $ | (1,442,105 | ) | ||
December 31, | ||||||||
2010 | 2009 | |||||||
DEFERRED TAX ASSETS | ||||||||
Risk management activities | $ | 124,731 | $ | 87,404 | ||||
Regulatory liabilities: | ||||||||
Asset retirement obligation and removal costs | 222,448 | 213,814 | ||||||
Deferred fuel and purchased power | 23,089 | 34,463 | ||||||
Renewable energy standard | 18,749 | — | ||||||
Other | 28,360 | 21,613 | ||||||
Pension and other postretirement liabilities | 321,182 | 306,515 | ||||||
Real estate investments and assets held for sale | 19,855 | 113,082 | ||||||
Renewable energy incentives | 37,327 | — | ||||||
Credit and loss carryforwards | 42,971 | 3,423 | ||||||
Other | 68,684 | 57,015 | ||||||
Total deferred tax assets | 907,396 | 837,329 | ||||||
DEFERRED TAX LIABILITIES | ||||||||
Plant-related | (2,210,976 | ) | (1,951,262 | ) | ||||
Risk management activities | (30,125 | ) | (20,863 | ) | ||||
Regulatory assets: | ||||||||
Allowance for equity funds used during construction | (28,276 | ) | (23,285 | ) | ||||
Deferred fuel and purchased power — mark-to-market | (30,276 | ) | (16,167 | ) | ||||
Pension and other postretirement benefits | (264,313 | ) | (210,080 | ) | ||||
Other | (77,078 | ) | (57,210 | ) | ||||
Other | (5,316 | ) | (567 | ) | ||||
Total deferred tax liabilities | (2,646,360 | ) | (2,279,434 | ) | ||||
Deferred income taxes — net | $ | (1,738,964 | ) | $ | (1,442,105 | ) | ||
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Letters | Weighted | |||||||||||||||||||||||||
of | Average | |||||||||||||||||||||||||
Credit | Amount | Credit | Short-Term | Unused | Interest | Commitment | ||||||||||||||||||||
Facility | Expiration | Committed | Used | Borrowings | Amount | Rate | Fees | |||||||||||||||||||
PNW Revolving Credit Facility | February 2013 | $ | 200 | $ | — | $ | — | $ | 183 | — | 0.625 | % | ||||||||||||||
PNW Commercial Paper | January 2011 | — | — | 17 | — | 0.840 | % | — | ||||||||||||||||||
APS Revolving Credit Facility | February 2013 | 500 | — | — | 500 | — | 0.500 | % | ||||||||||||||||||
APS Revolving Credit Facility | September 2011 | 489 | 20 | — | 469 | — | 0.100 | % | ||||||||||||||||||
Total | $ | 1,189 | $ | 20 | $ | 17 | $ | 1,152 | ||||||||||||||||||
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Weighted | ||||||||||||||||||||||
Credit | Amount | Short-Term | Unused | Average | Commitment | |||||||||||||||||
Facility | Expiration | Committed | Borrowings | Amount | Interest Rate | Fees | ||||||||||||||||
PNW Revolving Credit Facility | December 2010 | $ | 283 | $ | 149 | $ | 134 | 0.982 | % | 0.15 | % | |||||||||||
APS Revolving Credit Facility | December 2010 | 377 | — | 377 | — | 0.11 | % | |||||||||||||||
APS Revolving Credit Facility | September 2011 | 489 | — | 489 | — | 0.10 | % | |||||||||||||||
SunCor Short-term Borrowings | January 2010 | — | 5 | — | LIBOR plus 2.50 | % | — | |||||||||||||||
Total | $ | 1,149 | $ | 154 | $ | 1,000 | ||||||||||||||||
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Maturity | Interest | December 31, | ||||||||||||||
Dates (a) | Rates | 2010 | 2009 | |||||||||||||
APS | ||||||||||||||||
Pollution control bonds — Variable | 2024-2038 | (b | ) | $ | 43,580 | $ | 222,880 | |||||||||
Pollution control bonds — Fixed | 2029-2034 | (c | ) | 522,275 | 342,975 | |||||||||||
Pollution control bonds with senior notes | 2029 | 5.05 | % | 90,000 | 90,000 | |||||||||||
Unsecured notes | 2011 | 6.375 | % | 400,000 | 400,000 | |||||||||||
Unsecured notes | 2012 | 6.50 | % | 375,000 | 375,000 | |||||||||||
Unsecured notes | 2014 | 5.80 | % | 300,000 | 300,000 | |||||||||||
Unsecured notes | 2015 | 4.650 | % | 300,000 | 300,000 | |||||||||||
Unsecured notes | 2016 | 6.25 | % | 250,000 | 250,000 | |||||||||||
Unsecured notes | 2019 | 8.75 | % | 500,000 | 500,000 | |||||||||||
Unsecured notes | 2033 | 5.625 | % | 200,000 | 200,000 | |||||||||||
Unsecured notes | 2035 | 5.50 | % | 250,000 | 250,000 | |||||||||||
Unsecured notes | 2036 | 6.875 | % | 150,000 | 150,000 | |||||||||||
Secured note | 2014 | 6.00 | % | — | 1,075 | |||||||||||
Palo Verde sale leaseback lessor notes | 2015 | 8.00 | % | 126,000 | 151,783 | |||||||||||
Unamortized discount | (6,183 | ) | (7,185 | ) | ||||||||||||
Capitalized lease obligations | 2011-2012 | (d | ) | 2,001 | 2,837 | |||||||||||
Subtotal (e) | 3,502,673 | 3,529,365 | ||||||||||||||
SUNCOR | ||||||||||||||||
Notes payable | 2011 | (f | ) | — | 95,535 | |||||||||||
Capitalized lease obligations | 2011-2012 | (g | ) | — | 100 | |||||||||||
Subtotal | — | 95,635 | ||||||||||||||
PINNACLE WEST | ||||||||||||||||
Senior notes | 2011 | 5.91 | % | 175,000 | 175,000 | |||||||||||
Total long-term debt | 3,677,673 | 3,800,000 | ||||||||||||||
Less current maturities: | ||||||||||||||||
APS | 456,879 | 222,959 | ||||||||||||||
SunCor | — | 80,517 | ||||||||||||||
Pinnacle West | 175,000 | — | ||||||||||||||
Total | 631,879 | 303,476 | ||||||||||||||
TOTAL LONG-TERM DEBT LESS CURRENT MATURITIES | $ | 3,045,794 | $ | 3,496,524 | ||||||||||||
(a) | This schedule does not reflect the timing of redemptions that may occur prior to maturities. | |
(b) | The weighted-average rate for the variable rate pollution control bonds was 0.32% at December 31, 2010 and 0.25% at December 31, 2009. | |
(c) | The bonds fixed rate of interest ranged from 2.875% to 6.00% at December 31, 2010. The bonds fixed interest ranged from 5.00% to 6.00% at December 31, 2009. Approximately $343 million are subject to mandatory tender dates. See discussion of the refinancing of pollution control bonds below. | |
(d) | The weighted-average interest rate was 5.29% at December 31, 2010 and 5.50% at December 31, 2009. | |
(e) | APS’s long-term debt less current maturities was $3.046 billion at December 31, 2010 and $3.306 billion at December 31, 2009. |
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(f) | SunCor had no debt outstanding at December 31, 2010 and $57 million outstanding at December 31, 2009 under its secured revolver that matured on January 30, 2010. The weighted average interest rate at December 31, 2009 was 5.00%. SunCor had no debt outstanding at December 31, 2010 and $39 million at December 31, 2009 of other debt under other long-term facilities. At December 31, 2009, the remaining debt was primarily classified as current maturities of long-term debt and consisted of multiple notes with variable interest rates of prime plus 2.00% and LIBOR plus 1.70%, 2.00%, 2.25% and 2.50%. | |
(g) | The weighted-average interest rate was 4.90% December 31, 2009. |
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Consolidated | Consolidated | |||||||
Year | Pinnacle West | APS | ||||||
2011 | $ | 632 | $ | 457 | ||||
2012 | 477 | 477 | ||||||
2013 | 140 | 140 | ||||||
2014 | 502 | 502 | ||||||
2015 | 313 | 313 | ||||||
Thereafter | 1,620 | 1,620 | ||||||
Total | $ | 3,684 | $ | 3,509 | ||||
Common Stock | Treasury Stock | |||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||
Balance at December 31, 2007 | 100,525,470 | $ | 2,135,787 | (39,505 | ) | $ | (2,054 | ) | ||||||||
Common stock issuance | 422,966 | 10,845 | — | — | ||||||||||||
Purchase of treasury stock (a) | — | — | (39,022 | ) | (1,387 | ) | ||||||||||
Reissuance of treasury stock for stock compensation | — | — | 18,700 | 587 | ||||||||||||
Other | — | 4,691 | — | — | ||||||||||||
Balance at December 31, 2008 | 100,948,436 | 2,151,323 | (59,827 | ) | (2,854 | ) | ||||||||||
Common stock issuance | 579,501 | 10,620 | — | — | ||||||||||||
Purchase of treasury stock (a) | — | — | (66,173 | ) | (2,156 | ) | ||||||||||
Reissuance of treasury stock for stock compensation | — | — | 32,761 | 1,198 | ||||||||||||
Other | — | (8,648 | ) | — | — | |||||||||||
Balance at December 31, 2009 | 101,527,937 | 2,153,295 | (93,239 | ) | (3,812 | ) | ||||||||||
Common stock issuance (b) | 7,292,130 | 263,297 | — | — | ||||||||||||
Purchase of treasury stock (a) | — | — | (1,994 | ) | (82 | ) | ||||||||||
Reissuance of treasury stock for stock compensation | — | — | 44,823 | 1,655 | ||||||||||||
Other | — | 4,780 | — | — | ||||||||||||
Balance at December 31, 2010 | 108,820,067 | $ | 2,421,372 | (50,410 | ) | $ | (2,239 | ) | ||||||||
(a) | Primarily represents shares of common stock withheld from certain stock awards for tax purposes. | |
(b) | In April 2010, Pinnacle West issued 6,900,000 shares of common stock at an offering price of $38.00 per share, resulting in net proceeds of approximately $253 million. Pinnacle West contributed all of the net proceeds from this offering into APS in the form of equity infusions. APS has used these contributions to repay short-term indebtedness, to finance capital expenditures and for other general corporate purposes. |
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Pension | Other Benefits | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2010 | 2009 | 2008 | |||||||||||||||||||
Service cost-benefits earned during the period | $ | 59,064 | $ | 54,288 | $ | 54,576 | $ | 19,236 | $ | 18,285 | $ | 17,793 | ||||||||||||
Interest cost on benefit obligation | 122,724 | 118,282 | 110,207 | 42,428 | 39,180 | 37,897 | ||||||||||||||||||
Expected return on plan assets | (124,161 | ) | (116,535 | ) | (118,309 | ) | (39,257 | ) | (34,428 | ) | (43,609 | ) | ||||||||||||
Amortization of: | ||||||||||||||||||||||||
Transition obligation | — | — | — | 452 | 3,005 | 3,005 | ||||||||||||||||||
Prior service cost (credit) | 1,705 | 2,080 | 2,455 | (539 | ) | (125 | ) | (125 | ) | |||||||||||||||
Net actuarial loss | 18,833 | 14,216 | 11,145 | 10,317 | 10,320 | 2,372 | ||||||||||||||||||
Net periodic benefit cost | $ | 78,165 | $ | 72,331 | $ | 60,074 | $ | 32,637 | $ | 36,237 | $ | 17,333 | ||||||||||||
Portion of cost charged to expense | $ | 37,933 | $ | 36,484 | $ | 28,854 | $ | 15,839 | $ | 18,278 | $ | 8,325 | ||||||||||||
APS share of cost charged to expense | $ | 36,840 | $ | 34,850 | $ | 27,491 | $ | 15,382 | $ | 17,459 | $ | 7,932 | ||||||||||||
Pension | Other Benefits | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Change in Benefit Obligation | ||||||||||||||||
Benefit obligation at January 1 | $ | 2,074,131 | $ | 1,884,656 | $ | 700,535 | $ | 655,265 | ||||||||
Service cost | 59,064 | 54,288 | 19,236 | 18,285 | ||||||||||||
Interest cost | 122,724 | 118,282 | 42,428 | 39,180 | ||||||||||||
Benefit payments | (93,776 | ) | (77,577 | ) | (20,421 | ) | (18,959 | ) | ||||||||
Actuarial loss | 183,365 | 94,482 | 98,094 | 6,764 | ||||||||||||
Plan amendments | (448 | ) | — | (11,975 | ) | — | ||||||||||
Benefit obligation at December 31 | 2,345,060 | 2,074,131 | 827,897 | 700,535 | ||||||||||||
Change in Plan Assets | ||||||||||||||||
Fair value of plan assets at January 1 | 1,461,808 | 1,430,372 | 490,455 | 429,306 | ||||||||||||
Actual return on plan assets | 190,380 | 96,511 | 60,255 | 61,101 | ||||||||||||
Employer contributions | 200,000 | — | 16,700 | 15,506 | ||||||||||||
Benefit payments | (76,592 | ) | (65,075 | ) | — | (15,458 | ) | |||||||||
Fair value of plan assets at December 31 | 1,775,596 | 1,461,808 | 567,410 | 490,455 | ||||||||||||
Funded Status at December 31 | $ | (569,464 | ) | $ | (612,323 | ) | $ | (260,487 | ) | $ | (210,080 | ) | ||||
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2010 | 2009 | |||||||
Projected benefit obligation | $ | 2,345,060 | $ | 2,074,131 | ||||
Accumulated benefit obligation | 2,065,091 | 1,824,661 | ||||||
Fair value of plan assets | 1,775,596 | 1,461,808 |
Pension | Other Benefits | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Current liability | $ | (16,830 | ) | $ | (11,065 | ) | $ | — | $ | — | ||||||
Noncurrent liability | (552,634 | ) | (601,258 | ) | (260,487 | ) | (210,080 | ) | ||||||||
Net amount recognized | $ | (569,464 | ) | $ | (612,323 | ) | $ | (260,487 | ) | $ | (210,080 | ) | ||||
Pension | Other Benefits | |||||||||||||||
2010 | 2009 | 2010 | 2009 | |||||||||||||
Net actuarial loss | $ | 502,938 | $ | 404,619 | $ | 261,071 | $ | 194,301 | ||||||||
Prior service cost (credit) | 5,712 | 7,865 | (4,571 | ) | (794 | ) | ||||||||||
Transition obligation | — | — | 903 | 9,015 | ||||||||||||
APS’s portion recorded as a regulatory asset | (419,774 | ) | (336,728 | ) | (249,255 | ) | (195,389 | ) | ||||||||
Income tax benefit | (35,106 | ) | (29,902 | ) | (2,498 | ) | (2,095 | ) | ||||||||
Accumulated other comprehensive loss | $ | 53,770 | $ | 45,854 | $ | 5,650 | $ | 5,038 | ||||||||
Other | ||||||||
Pension | Benefits | |||||||
Net actuarial loss | $ | 25,660 | $ | 13,736 | ||||
Prior service cost (credit) | 1,400 | (539 | ) | |||||
Transition obligation | — | 452 | ||||||
Total amounts estimated to be amortized from accumulated other comprehensive income and regulatory assets in 2011 | $ | 27,060 | $ | 13,649 | ||||
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Benefit Obligations | Benefit Costs | |||||||||||||||||||
As of December 31, | For the Years Ended December 31, | |||||||||||||||||||
2010 | 2009 | 2010 | 2009 | 2008 | ||||||||||||||||
Discount rate-pension | 5.31 | % | 5.90 | % | 5.90 | % | 6.11 | % | 6.25 | % | ||||||||||
Discount rate-other benefits | 5.49 | % | 6.00 | % | 6.00 | % | 6.13 | % | 6.31 | % | ||||||||||
Rate of compensation increase | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | 4.00 | % | ||||||||||
Expected long-term return on plan assets | N/A | N/A | 8.25 | % | 8.25 | % | 9.00 | % | ||||||||||||
Initial health care cost trend rate | 8.00 | % | 8.00 | % | 8.00 | % | 8.00 | % | 8.00 | % | ||||||||||
Ultimate health care cost trend rate | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | 5.00 | % | ||||||||||
Number of years to ultimate trend rate | 4 | 4 | 4 | 4 | 4 |
1% Increase | 1% Decrease | |||||||
Effect on other postretirement benefits expense, after consideration of amounts capitalized or billed to electric plant participants | $ | 9 | $ | (8 | ) | |||
Effect on service and interest cost components of net periodic other postretirement benefit costs | 12 | (9 | ) | |||||
Effect on the accumulated other postretirement benefit obligation | 134 | (107 | ) |
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Quoted Prices | ||||||||||||||||
in Active | Significant | |||||||||||||||
Markets for | Other | |||||||||||||||
Identical | Observable | Balance at | ||||||||||||||
Assets | Inputs | Netting and | December 31, | |||||||||||||
(Level 1) | (Level 2) | Other (a) | 2010 | |||||||||||||
Pension Plan: | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 2,375 | $ | — | $ | — | $ | 2,375 | ||||||||
Debt Securities: | ||||||||||||||||
Corporate | — | 508,946 | — | 508,946 | ||||||||||||
U.S. Treasury | 163,313 | — | — | 163,313 | ||||||||||||
Other (b) | — | 53,358 | — | 53,358 | ||||||||||||
Equities: | ||||||||||||||||
U.S. Companies | 462,973 | — | — | 462,973 | ||||||||||||
International Companies | 129,094 | — | — | 129,094 | ||||||||||||
Other investments | — | 5,549 | 8,071 | 13,620 | ||||||||||||
Common and collective trusts: | ||||||||||||||||
U.S. Equities | — | 146,705 | — | 146,705 | ||||||||||||
International Equities | — | 177,114 | — | 177,114 | ||||||||||||
Real estate | — | 92,454 | — | 92,454 | ||||||||||||
Short-term investments | — | 25,644 | — | 25,644 | ||||||||||||
Total Pension Plan | $ | 757,755 | $ | 1,009,770 | $ | 8,071 | $ | 1,775,596 | ||||||||
Other Benefits: | ||||||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 243 | $ | — | $ | — | $ | 243 | ||||||||
Debt Securities: | ||||||||||||||||
Corporate | — | 118,660 | — | 118,660 | ||||||||||||
U.S. Treasury | 74,049 | — | — | 74,049 | ||||||||||||
Other (b) | — | 24,456 | — | 24,456 | ||||||||||||
Equities: | ||||||||||||||||
U.S. Companies | 179,655 | — | — | 179,655 | ||||||||||||
International Companies | 25,121 | — | — | 25,121 | ||||||||||||
Other investments | — | 365 | 2,034 | 2,399 | ||||||||||||
Common and collective trusts: | ||||||||||||||||
U.S. Equities | — | 54,144 | — | 54,144 | ||||||||||||
International Equities | — | 61,455 | — | 61,455 | ||||||||||||
Real Estate | — | 7,357 | — | 7,357 | ||||||||||||
Short-term investments | — | 19,871 | — | 19,871 | ||||||||||||
Total Other Benefits | $ | 279,068 | $ | 286,308 | $ | 2,034 | $ | 567,410 | ||||||||
(a) | Represents netting of plan receivables and payables. | |
(b) | This category consists primarily of municipal securities. |
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Quoted Prices | ||||||||||||||||||||
in Active | Significant | |||||||||||||||||||
Markets for | Other | Significant | ||||||||||||||||||
Identical | Observable | Unobservable | Balance at | |||||||||||||||||
Assets | Inputs | Inputs | Netting and | December 31, | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Other (a) | 2009 | ||||||||||||||||
Pension Plan: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 519 | $ | — | $ | — | $ | — | $ | 519 | ||||||||||
Debt Securities: | ||||||||||||||||||||
Corporate | — | 590,343 | — | — | 590,343 | |||||||||||||||
Other (b) | — | 66,281 | — | — | 66,281 | |||||||||||||||
Interest rate swaps | — | 20,512 | — | (20,103 | ) | 409 | ||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 341,318 | — | — | — | 341,318 | |||||||||||||||
International Companies | 83,492 | — | — | — | 83,492 | |||||||||||||||
Other investments | — | 6,747 | — | 10,177 | 16,924 | |||||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 144,016 | — | — | 144,016 | |||||||||||||||
International Equities | — | 132,168 | — | — | 132,168 | |||||||||||||||
Real estate | — | — | 64,212 | — | 64,212 | |||||||||||||||
Short-term investments | — | 22,126 | — | — | 22,126 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swaps | — | (20,103 | ) | — | 20,103 | — | ||||||||||||||
Total Pension Plan | $ | 425,329 | $ | 962,090 | $ | 64,212 | $ | 10,177 | $ | 1,461,808 | ||||||||||
Other Benefits: | ||||||||||||||||||||
Assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 156 | $ | — | $ | — | $ | — | $ | 156 | ||||||||||
Debt Securities: | ||||||||||||||||||||
Corporate | — | 173,895 | — | — | 173,895 | |||||||||||||||
Other (b) | — | 20,280 | — | — | 20,280 | |||||||||||||||
Interest rate swaps | — | 2,091 | — | (2,049 | ) | 42 | ||||||||||||||
Equities: | ||||||||||||||||||||
U.S. Companies | 170,293 | — | — | — | 170,293 | |||||||||||||||
International Companies | 9,721 | — | — | — | 9,721 | |||||||||||||||
Other investments | — | 383 | — | (785 | ) | (402 | ) | |||||||||||||
Common and collective trusts: | ||||||||||||||||||||
U.S. Equities | — | 49,363 | — | — | 49,363 | |||||||||||||||
International Equities | — | 52,670 | — | — | 52,670 | |||||||||||||||
Real Estate | — | — | 6,504 | — | 6,504 | |||||||||||||||
Short-term investments | — | 7,933 | — | — | 7,933 | |||||||||||||||
Liabilities: | ||||||||||||||||||||
Interest rate swaps | — | (2,049 | ) | — | 2,049 | — | ||||||||||||||
Total Other Benefits | $ | 180,170 | $ | 304,566 | $ | 6,504 | $ | (785 | ) | $ | 490,455 | |||||||||
(a) | Represents netting under master netting arrangements and plan receivables and payables. | |
(b) | This category consists primarily of municipality issued debt securities, but also includes U.S. Treasuries and asset-backed securities such as collateralized mortgage obligations. |
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Year Ended | Year Ended | |||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||
Other | Other | |||||||||||||||
Common and Collective Trusts — Real Estate | Pension | Benefits | Pension | Benefits | ||||||||||||
Beginning balance at January 1 | $ | 64,212 | $ | 6,504 | $ | 88,379 | $ | 8,951 | ||||||||
Actual return on assets still held (a) | (204 | ) | (23 | ) | (29,590 | ) | (2,991 | ) | ||||||||
Purchases, sales, and settlements | 18,003 | 45 | 5,423 | 544 | ||||||||||||
Transfers in and/or out of Level 3 (b) | (82,011 | ) | (6,526 | ) | — | — | ||||||||||
Ending balance at December 31 | $ | — | $ | — | $ | 64,212 | $ | 6,504 | ||||||||
(a) | The return for December 31, 2010 represents the return on assets held as of March 31, 2010, the beginning of the period in which all the assets were transferred out of Level 3. The return for December 31, 2009 represents the return on assets held as of December 31, 2009, as no transfers occurred into or out of Level 3 during the year. | |
(b) | Transfers into and out of Level 3 are measured at the beginning of the period in which the transfer occurs. Transfers out of Level 3 during 2010 relate to our Real Estate Common and Collective Trust being transferred to a Level 2 investment. During 2009 the Real Estate Common and Collective Trust had special redemption restrictions in place, which limited our ability to transact at the fund’s net asset value. During 2010 these special redemption restrictions were lifted, and we were able to transact in the fund at the net asset value according to the fund’s normal redemption policy. |
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Year | Pension | Other Benefits (a) | ||||||
2011 | $ | 106,556 | $ | 23,197 | ||||
2012 | 116,615 | 25,713 | ||||||
2013 | 129,031 | 28,619 | ||||||
2014 | 141,815 | 31,484 | ||||||
2015 | 154,185 | 34,176 | ||||||
Years 2016-2020 | 972,338 | 216,736 |
(a) | The expected future other benefit payments take into account the Medicare Part D subsidy. |
Pinnacle West | ||||||||
Year | Consolidated | APS | ||||||
2011 | $ | 24 | $ | 20 | ||||
2012 | 21 | 17 | ||||||
2013 | 17 | 14 | ||||||
2014 | 14 | 11 | ||||||
2015 | 13 | 10 | ||||||
Thereafter | 9 | 7 | ||||||
Total future lease commitments | $ | 98 | $ | 79 | ||||
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Construction | ||||||||||||||||
Percent | Plant in | Accumulated | Work in | |||||||||||||
Owned | Service | Depreciation | Progress | |||||||||||||
Generating facilities: | ||||||||||||||||
Palo Verde Units 1 and 3 | 29.1 | % | $ | 2,056,977 | $ | 1,112,159 | $ | 58,272 | ||||||||
Palo Verde Unit 2 (a) | 17.0 | % | 705,996 | 342,640 | 28,162 | |||||||||||
Palo Verde Sale Leaseback | (a | ) | 351,050 | 213,094 | — | |||||||||||
Four Corners Units 4 and 5 | 15.0 | % | 167,076 | 102,918 | 1,971 | |||||||||||
Four Corners common | 28.3 | % | 11,585 | 5,738 | 531 | |||||||||||
Navajo Generating Station Units 1, 2 and 3 | 14.0 | % | 260,590 | 163,281 | 11,041 | |||||||||||
Cholla common facilities (b) | 63.3 | %(c) | 140,041 | 48,815 | 3,229 | |||||||||||
Transmission facilities: | ||||||||||||||||
ANPP 500KV System | 34.0 | %(c) | 85,359 | 27,211 | 4,863 | |||||||||||
Navajo Southern System | 26.1 | %(c) | 50,021 | 14,022 | 201 | |||||||||||
Palo Verde — Yuma 500KV System | 43.5 | %(c) | 9,408 | 4,165 | 1,462 | |||||||||||
Four Corners Switchyards | 47.5 | %(c) | 8,691 | 2,721 | 2,810 | |||||||||||
Phoenix — Mead System | 17.5 | %(c) | 39,153 | 14,670 | 287 | |||||||||||
Palo Verde — Estrella 500KV System | 50.0 | %(c) | 85,622 | 7,469 | 805 | |||||||||||
North Valley System | 71.2 | %(c) | 69,497 | 293 | 24,113 | |||||||||||
Round Valley System | 50.0 | %(c) | — | — | 66 |
(a) | See Notes 9 and 20. | |
(b) | PacifiCorp owns Cholla Unit 4 and APS operates the unit for PacifiCorp. The common facilities at Cholla are jointly-owned. | |
(c) | Weighted average of interests. |
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Actual | Estimated (a) | |||||||||||||||||||||||||||||||||||
2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | ||||||||||||||||||||||||||||
Coal take-or-pay commitments | $ | 81 | $ | 93 | $ | 66 | $ | 76 | $ | 78 | $ | 80 | $ | 82 | $ | 85 | $ | 204 |
(a) | Total take-or-pay commitments are approximately $605 million. The total net present value of these commitments is approximately $435 million. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | |||||||
Asset retirement obligations at the beginning of year | $ | 302 | $ | 276 | ||||
Changes attributable to: | ||||||||
Liabilities settled | — | (1 | ) | |||||
Accretion expense | 22 | 20 | ||||||
Estimated cash flow revisions | 5 | 7 | ||||||
Asset retirement obligations at the end of year | $ | 329 | $ | 302 | ||||
2010 Quarter Ended | 2010 | |||||||||||||||||||
March 31, (a) | June 30, | September 30, | December 31, | Total | ||||||||||||||||
Operating revenues | $ | 620,355 | $ | 820,594 | $ | 1,139,085 | $ | 683,611 | $ | 3,263,645 | ||||||||||
Operations and maintenance | 207,842 | 215,104 | 221,469 | 232,991 | 877,406 | |||||||||||||||
Operating income | 57,668 | 203,273 | 403,625 | 59,318 | 723,884 | |||||||||||||||
Income taxes | (7,172 | ) | 51,829 | 123,486 | (3,822 | ) | 164,321 | |||||||||||||
Income from continuing operations | 11,983 | 94,584 | 231,828 | 12,203 | 350,598 | |||||||||||||||
Net income (loss) attributable to common shareholders | (6,014 | ) | 114,797 | 233,920 | 7,350 | 350,053 | ||||||||||||||
Basic earnings per share: | ||||||||||||||||||||
Income from continuing operations attributable to common shareholders | $ | 0.07 | $ | 0.84 | $ | 2.09 | $ | 0.07 | $ | 3.10 | ||||||||||
Net income (loss) attributable to common shareholders | (0.06 | ) | 1.07 | 2.15 | 0.07 | 3.28 | ||||||||||||||
Diluted earnings per share: | ||||||||||||||||||||
Income from continuing operations attributable to common shareholders | $ | 0.07 | $ | 0.83 | $ | 2.08 | $ | 0.06 | $ | 3.08 | ||||||||||
Net income (loss) attributable to common shareholders | (0.06 | ) | 1.07 | 2.14 | 0.07 | 3.27 |
(a) | The March 31, 2010 results were adjusted for the effect of reclassifications for discontinued operations. The adjustments resulted in a reduction in operating revenues of $13,236, a reduction in operations and maintenance of $2,149, an increase in operating income of $20,034, an increase in income taxes of $8,308, and an increase in income from continuing operations of $12,755. The adjustments also resulted in an increase in income from continuing operations basic and diluted earnings per share of $0.13. |
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2009 Quarter Ended | 2009 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
As originally reported in the 2009 10-K: | ||||||||||||||||||||
Operating revenues | $ | 625,867 | $ | 835,972 | $ | 1,142,205 | $ | 693,057 | $ | 3,297,101 | ||||||||||
Operations and maintenance | 207,531 | 226,245 | 208,769 | 232,812 | 875,357 | |||||||||||||||
Operating income (loss) | (204,923 | ) | 162,007 | 345,397 | 19,292 | 321,773 | ||||||||||||||
Income taxes | (95,004 | ) | 39,579 | 103,507 | (10,255 | ) | 37,827 | |||||||||||||
Income (loss) from continuing operations | (165,993 | ) | 74,027 | 188,065 | (28,868 | ) | 67,231 | |||||||||||||
Net income (loss) attributable to common shareholders | (156,510 | ) | 68,347 | 186,652 | (30,159 | ) | 68,330 | |||||||||||||
Palo Verde VIE reclassifications (see Note 20): | ||||||||||||||||||||
Operations and maintenance | $ | (9,915 | ) | $ | (9,914 | ) | $ | (9,916 | ) | $ | (9,915 | ) | $ | (39,660 | ) | |||||
Operating income | 7,989 | 7,989 | 7,989 | 7,989 | 31,956 | |||||||||||||||
Income from continuing operations | 4,650 | 4,651 | 4,953 | 4,955 | 19,209 | |||||||||||||||
Discontinued operations reclassifications (see Note 22): | ||||||||||||||||||||
Operating revenues | $ | (18,489 | ) | $ | (17,384 | ) | $ | (53,169 | ) | $ | (32,149 | ) | $ | (121,191 | ) | |||||
Operations and maintenance | (790 | ) | (786 | ) | (823 | ) | (1,435 | ) | (3,834 | ) | ||||||||||
Operating income | 220,888 | 1,898 | 14,021 | 19,617 | 256,424 | |||||||||||||||
Income taxes | 81,820 | 1,421 | 6,271 | 9,167 | 98,679 | |||||||||||||||
Income from continuing operations | 140,651 | 2,352 | 10,310 | 12,805 | 166,118 | |||||||||||||||
After reclassifications: | ||||||||||||||||||||
Operating revenues | $ | 607,378 | $ | 818,588 | $ | 1,089,036 | $ | 660,908 | $ | 3,175,910 | ||||||||||
Operations and maintenance | 196,826 | 215,545 | 198,030 | 221,462 | 831,863 | |||||||||||||||
Operating income | 23,954 | 171,894 | 367,407 | 46,898 | 610,153 | |||||||||||||||
Income taxes | (13,184 | ) | 41,000 | 109,778 | (1,088 | ) | 136,506 | |||||||||||||
Income (loss) from continuing operations | (20,692 | ) | 81,030 | 203,328 | (11,108 | ) | 252,558 | |||||||||||||
Net income (loss) attributable to common shareholders | (156,510 | ) | 68,347 | 186,652 | (30,159 | ) | 68,330 |
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2009 Quarter Ended | 2009 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
As originally reported in the 2009 10-K — Basic earnings per share: | ||||||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | (1.50 | ) | $ | 0.73 | $ | 1.86 | $ | (0.29 | ) | $ | 0.81 | ||||||||
Net income (loss) attributable to common shareholders | (1.55 | ) | 0.68 | 1.84 | (0.30 | ) | 0.68 | |||||||||||||
After reclassifications — Basic earnings per share: | ||||||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | (0.25 | ) | $ | 0.76 | $ | 1.96 | $ | (0.16 | ) | $ | 2.31 | ||||||||
Net income (loss) attributable to common shareholders | (1.55 | ) | 0.68 | 1.84 | (0.30 | ) | 0.68 | |||||||||||||
As originally reported in the 2009 10-K— Diluted earnings per share: | ||||||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | (1.50 | ) | $ | 0.74 | $ | 1.86 | $ | (0.29 | ) | $ | 0.81 | ||||||||
Net income (loss) attributable to common shareholders | (1.55 | ) | 0.68 | 1.84 | (0.30 | ) | 0.67 | |||||||||||||
After reclassifications — Diluted earnings per share: | ||||||||||||||||||||
Income (loss) from continuing operations attributable to common shareholders | $ | (0.25 | ) | $ | 0.75 | $ | 1.96 | $ | (0.16 | ) | $ | 2.30 | ||||||||
Net income (loss) attributable to common shareholders | (1.55 | ) | 0.68 | 1.84 | (0.30 | ) | 0.67 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Quoted Prices | Significant | |||||||||||||||||||
in Active | Other | Significant | ||||||||||||||||||
Markets for | Observable | Unobservable | Counterparty | Balance at | ||||||||||||||||
Identical Assets | Inputs | Inputs (a) | Netting & | December 31, | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Other (b) | 2010 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | $ | 35 | $ | — | $ | — | $ | — | $ | 35 | ||||||||||
Risk management activities: | ||||||||||||||||||||
Commodity contracts | — | 80 | 61 | (28 | ) | 113 | ||||||||||||||
Nuclear decommissioning trust: | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||
U.S. commingled funds | — | 168 | — | — | 168 | |||||||||||||||
Fixed income securities: | ||||||||||||||||||||
U.S. Treasury | 50 | — | — | — | 50 | |||||||||||||||
Cash and cash equivalent funds | — | 22 | — | — | 22 | |||||||||||||||
Corporate | — | 60 | — | — | 60 | |||||||||||||||
Mortgage-backed | — | 81 | — | — | 81 | |||||||||||||||
Municipality | — | 79 | — | — | 79 | |||||||||||||||
Other | — | 20 | — | (10 | ) | 10 | ||||||||||||||
Total | $ | 85 | $ | 510 | $ | 61 | $ | (38 | ) | $ | 618 | |||||||||
Liabilities | ||||||||||||||||||||
Risk management activities: | ||||||||||||||||||||
Commodity contracts | $ | (1 | ) | $ | (280 | ) | $ | (99 | ) | $ | 256 | $ | (124 | ) | ||||||
(a) | Primarily consists of long-dated electricity contracts. | |
(b) | Risk management activities represent netting under master netting arrangements, including margin and collateral. See Note 18. Nuclear decommissioning trust represents net pending securities sales and purchases. |
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Quoted Prices | Significant | |||||||||||||||||||
in Active | Other | Significant | ||||||||||||||||||
Markets for | Observable | Unobservable | Counterparty | Balance at | ||||||||||||||||
Identical Assets | Inputs | Inputs (a) | Netting & | December 31, | ||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Other (b) | 2009 | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash equivalents | $ | 97 | $ | — | $ | — | $ | — | $ | 97 | ||||||||||
Risk management activities: | ||||||||||||||||||||
Commodity contracts | 1 | 100 | 42 | (64 | ) | 79 | ||||||||||||||
Nuclear decommissioning trust: | ||||||||||||||||||||
Equity securities: | ||||||||||||||||||||
U.S. commingled funds | — | 167 | — | — | 167 | |||||||||||||||
Fixed income securities: | ||||||||||||||||||||
U.S. Treasury | 55 | — | — | — | 55 | |||||||||||||||
Corporate | — | 62 | — | — | 62 | |||||||||||||||
Mortgage-backed | — | 60 | — | — | 60 | |||||||||||||||
Municipality | — | 49 | — | — | 49 | |||||||||||||||
Other | — | 21 | — | 1 | 22 | |||||||||||||||
Total | $ | 153 | $ | 459 | $ | 42 | $ | (63 | ) | $ | 591 | |||||||||
Liabilities | ||||||||||||||||||||
Risk management activities: | ||||||||||||||||||||
Commodity contracts | $ | (14 | ) | $ | (246 | ) | $ | (52 | ) | $ | 194 | $ | (118 | ) | ||||||
(a) | Primarily consists of long-dated electricity contracts. | |
(b) | Primarily represents netting under master netting arrangements, including margin and collateral. See Note 18. |
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Year Ended | ||||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Net risk management activities at beginning of period | $ | (10 | ) | $ | (7 | ) | ||
Total net gains (losses) realized/unrealized: | ||||||||
Included in earnings | (1 | ) | 3 | |||||
Included in OCI | (14 | ) | (2 | ) | ||||
Deferred as a regulatory asset or liability | (38 | ) | 19 | |||||
Settlements | 19 | (2 | ) | |||||
Transfers into Level 3 from Level 2 | 5 | (25 | ) | |||||
Transfers from Level 3 into Level 2 | 1 | 4 | ||||||
Net risk management activities at end of period | $ | (38 | ) | $ | (10 | ) | ||
Net unrealized gains (losses) included in earnings related to instruments still held at end of period | $ | (1 | ) | $ | 3 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As of | As of | |||||||||||||||
December 31, 2010 | December 31, 2009 | |||||||||||||||
Carrying | Carrying | |||||||||||||||
Amount | Fair Value | Amount | Fair Value | |||||||||||||
Pinnacle West | $ | 175 | $ | 176 | $ | 175 | $ | 180 | ||||||||
APS | 3,503 | 3,737 | 3,530 | 3,674 | ||||||||||||
SunCor | — | — | 95 | 96 | ||||||||||||
Total | $ | 3,678 | $ | 3,913 | $ | 3,800 | $ | 3,950 | ||||||||
Total | Total | |||||||||||
Unrealized | Unrealized | |||||||||||
Fair Value | Gains | Losses | ||||||||||
2010 | ||||||||||||
Equity securities | $ | 168 | $ | 43 | $ | (1 | ) | |||||
Fixed income securities | 312 | 12 | (2 | ) | ||||||||
Net payables (a) | (10 | ) | — | — | ||||||||
Total | $ | 470 | $ | 55 | $ | (3 | ) | |||||
(a) | Net payables relate to pending securities sales and purchases. |
Total | Total | |||||||||||
Unrealized | Unrealized | |||||||||||
Fair Value | Gains | Losses | ||||||||||
2009 | ||||||||||||
Equity securities | $ | 167 | $ | 37 | $ | (6 | ) | |||||
Fixed income securities | 247 | 11 | (1 | ) | ||||||||
Net receivables (a) | 1 | — | — | |||||||||
Total | $ | 415 | $ | 48 | $ | (7 | ) | |||||
(a) | Net receivables relate to pending securities sales and purchases. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Realized gains | $ | 17 | $ | 10 | $ | 7 | ||||||
Realized losses | (4 | ) | (7 | ) | (8 | ) | ||||||
Proceeds from the sale of securities (a) | 560 | 441 | 318 |
(a) | Proceeds are reinvested in the trust. |
Fair Value | ||||
Less than one year | $ | 25 | ||
1 year - 5 years | 58 | |||
5 years - 10 years | 102 | |||
Greater than 10 years | 127 | |||
Total | $ | 312 | ||
2010 | 2009 | 2008 | ||||||||||
Basic earnings per share: | ||||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.10 | $ | 2.31 | $ | 2.59 | ||||||
Income (loss) from discontinued operations | 0.18 | (1.63 | ) | (0.19 | ) | |||||||
Earnings per share — basic | $ | 3.28 | $ | 0.68 | $ | 2.40 | ||||||
Diluted earnings per share: | ||||||||||||
Income from continuing operations attributable to common shareholders | $ | 3.08 | $ | 2.30 | $ | 2.58 | ||||||
Income (loss) from discontinued operations | 0.19 | (1.63 | ) | (0.18 | ) | |||||||
Earnings per share — diluted | $ | 3.27 | $ | 0.67 | $ | 2.40 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
136
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Units granted | 202,341 | 261,006 | 224,658 | |||||||||
Grant date fair value (a) | $ | 37.47 | $ | 30.25 | $ | 36.26 |
(a) | weighted average fair value |
Weighted-Average | ||||||||
Nonvested shares | Shares | Grant-Date Fair Value | ||||||
Nonvested at January 1, 2010 | 145,339 | $ | 33.57 | |||||
Granted | 146,391 | 37.46 | ||||||
Vested | 59,409 | 35.16 | ||||||
Forfeited | 8,640 | 34.18 | ||||||
Nonvested at December 31, 2010 | 223,681 | 35.69 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Units granted | 178,722 | 240,624 | 226,242 | |||||||||
Grant date fair value (a) | $ | 37.57 | $ | 30.19 | $ | 36.24 |
(a) | weighted average grant date fair value |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Weighted-Average | ||||||||
Nonvested shares | Shares | Grant-Date Fair Value | ||||||
Nonvested at January 1, 2010 | 358,943 | $ | 32.34 | |||||
Granted | 178,722 | 37.57 | ||||||
Vested | 127,673 | 36.29 | ||||||
Forfeited | 14,680 | 33.20 | ||||||
Nonvested at December 31, 2010 | 395,312 | 33.44 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Weighted- | ||||||||||||||||
Average | Aggregate | |||||||||||||||
Weighted- | Remaining | Intrinsic | ||||||||||||||
Average | Contractual | Value (dollars | ||||||||||||||
Options | Shares | Exercise Price | Term (Years) | in thousands) | ||||||||||||
Outstanding at January 1, 2010 | 432,699 | $ | 41.20 | |||||||||||||
Exercised | 119,725 | 38.03 | ||||||||||||||
Forfeited or expired | 230,750 | 43.50 | ||||||||||||||
Outstanding at December 31, 2010 | 82,224 | 39.37 | 1.3 | $ | 225 | |||||||||||
Exercisable at December 31, 2010 | 82,224 | 39.37 | 1.3 | $ | 225 | |||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments for the Year Ended | ||||||||||||
December 31, 2010 | ||||||||||||
Regulated | ||||||||||||
Electricity | ||||||||||||
Segment | All other (a) | Total | ||||||||||
Operating revenues | $ | 3,181 | $ | 83 | $ | 3,264 | ||||||
Fuel and purchased power costs | 1,047 | — | 1,047 | |||||||||
Other operating expenses | 1,009 | 69 | 1,078 | |||||||||
Operating margin | 1,125 | 14 | 1,139 | |||||||||
Depreciation and amortization | 415 | — | 415 | |||||||||
Interest expense | 226 | 2 | 228 | |||||||||
Other expense (income) | (22 | ) | 3 | (19 | ) | |||||||
Income from continuing operations before income taxes | 506 | 9 | 515 | |||||||||
Income taxes | 161 | 3 | 164 | |||||||||
Income from continuing operations | 345 | 6 | 351 | |||||||||
Income from discontinued operations — net of income tax expense of $13 million (see Note 22) | — | 19 | 19 | |||||||||
Net income | 345 | 25 | 370 | |||||||||
Less: Net income attributable to noncontrolling interests | 20 | — | 20 | |||||||||
Net income attributable to common shareholders | $ | 325 | $ | 25 | $ | 350 | ||||||
Total assets | $ | 12,255 | $ | 108 | $ | 12,363 | ||||||
Capital expenditures | $ | 666 | $ | 4 | $ | 670 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments for the Year Ended | ||||||||||||
December 31, 2009 | ||||||||||||
Regulated | ||||||||||||
Electricity | ||||||||||||
Segment | All other (a) | Total | ||||||||||
Operating revenues | $ | 3,149 | $ | 27 | $ | 3,176 | ||||||
Fuel and purchased power costs | 1,179 | — | 1,179 | |||||||||
Other operating expenses | 948 | 32 | 980 | |||||||||
Operating margin | 1,022 | (5 | ) | 1,017 | ||||||||
Depreciation and amortization | 407 | — | 407 | |||||||||
Interest expense | 226 | 1 | 227 | |||||||||
Other expense (income) | (16 | ) | 10 | (6 | ) | |||||||
Income (loss) from continuing operations before income taxes | 405 | (16 | ) | 389 | ||||||||
Income taxes | 143 | (7 | ) | 136 | ||||||||
Income (loss) from continuing operations | 262 | (9 | ) | 253 | ||||||||
Loss from discontinued operations — net of income tax benefit of $108 million (see Note 22) | — | (180 | ) | (180 | ) | |||||||
Net income (loss) | 262 | (189 | ) | 73 | ||||||||
Less: Net income (loss) attributable to noncontrolling interests | 19 | (14 | ) | 5 | ||||||||
Net income (loss) attributable to common shareholders | $ | 243 | $ | (175 | ) | $ | 68 | |||||
Total assets | $ | 11,691 | $ | 295 | $ | 11,986 | ||||||
Capital expenditures | $ | 732 | $ | 13 | $ | 745 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Business Segments for the Year Ended | ||||||||||||
December 31, 2008 | ||||||||||||
Regulated | ||||||||||||
Electricity | ||||||||||||
Segment | All other (a) | Total | ||||||||||
Operating revenues | $ | 3,127 | $ | 93 | $ | 3,220 | ||||||
Fuel and purchased power costs | 1,284 | 46 | 1,330 | |||||||||
Other operating expenses | 888 | 28 | 916 | |||||||||
Operating margin | 955 | 19 | 974 | |||||||||
Depreciation and amortization | 391 | — | 391 | |||||||||
Interest expense | 204 | 1 | 205 | |||||||||
Other expense (income) | (5 | ) | 9 | 4 | ||||||||
Income from continuing operations before income taxes | 365 | 9 | 374 | |||||||||
Income taxes | 92 | 4 | 96 | |||||||||
Income from continuing operations | 273 | 5 | 278 | |||||||||
Loss from discontinued operations — net of income tax benefit of $12 million (see Note 22) | — | (19 | ) | (19 | ) | |||||||
Net income (loss) | 273 | (14 | ) | 259 | ||||||||
Less: Net income attributable to noncontrolling interests | 17 | — | 17 | |||||||||
Net income (loss) attributable to common shareholders | $ | 256 | $ | (14 | ) | $ | 242 | |||||
Total assets | $ | 11,137 | $ | 669 | $ | 11,806 | ||||||
Capital expenditures | $ | 856 | $ | 48 | $ | 904 | ||||||
(a) | All other activities relate to SunCor, APSES and El Dorado. Income from discontinued operations for 2010 is primarily related to the APSES sale of its district cooling business. Loss from discontinued operations for 2009 and 2008 is primarily related to real estate impairment charges at SunCor (see Note 23). In addition, income from discontinued operations for 2008 includes the resolution of certain tax issues associated with the sale of Silverhawk in 2005. None of these segments is a reportable business segment. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Commodity | Quantity | |||||
Power | 13,530,414 | megawatt hours | ||||
Gas | 141,493,336 | MMBtu |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Financial Statement | Year Ended | Year Ended | ||||||||
Commodity Contracts | Location | December 31, 2010 | December 31, 2009 | |||||||
Amount of Loss Recognized in AOCI on Derivative Instruments (Effective Portion) | Accumulated other comprehensive loss-derivative instruments | $ | (155,287 | ) | $ | (155,325 | ) | |||
Amount of Loss Reclassified from AOCI into Income (Effective Portion Realized) | Regulated electricity segment fuel and purchased power | (122,740 | ) | (185,329 | ) | |||||
Amount of Gain (Loss) Recognized in Income from Derivative Instruments (Ineffective Portion and Amount Excluded from Effectiveness Testing) (a) | Regulated electricity segment fuel and purchased power | 3,680 | (19,902 | ) |
(a) | During the year ended December 31, 2009, $192 thousand was reclassified from AOCI to earnings related to discontinued cash flow hedges. This amount was zero in 2010. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Financial Statement | Year Ended | Year Ended | ||||||||
Commodity Contracts | Location | December 31, 2010 | December 31, 2009 | |||||||
Amount of Net Gain Recognized in Income from Derivative Instruments | Regulated electricity segment revenue | $ | 1,436 | $ | 2,484 | |||||
Amount of Net Loss Recognized in Income from Derivative Instruments | Regulated electricity segment fuel and purchased power expense | (107,690 | ) | (16,740 | ) | |||||
Total | $ | (106,254 | ) | $ | (14,256 | ) | ||||
Investments | Current | Deferred Credits | Total Assets | |||||||||||||||||
Commodity Contracts | Current Assets | and Other Assets | Liabilities | and Other | (Liabilities) | |||||||||||||||
Derivatives designated as accounting hedging instruments: | ||||||||||||||||||||
Assets | $ | 1,234 | $ | 142 | $ | 9,062 | $ | 4,913 | $ | 15,351 | ||||||||||
Liabilities | (602 | ) | (1,933 | ) | (107,784 | ) | (71,109 | ) | (181,428 | ) | ||||||||||
Total hedging instruments | 632 | (1,791 | ) | (98,722 | ) | (66,196 | ) | (166,077 | ) | |||||||||||
Derivatives not designated as accounting hedging instruments: | ||||||||||||||||||||
Assets | 36,831 | 40,927 | 27,322 | 19,886 | 124,966 | |||||||||||||||
Liabilities | (312 | ) | (33 | ) | (112,535 | ) | (85,473 | ) | (198,353 | ) | ||||||||||
Total non-hedging instruments | 36,519 | 40,894 | (85,213 | ) | (65,587 | ) | (73,387 | ) | ||||||||||||
Total derivatives | 37,151 | 39,103 | (183,935 | ) | (131,783 | ) | (239,464 | ) | ||||||||||||
Margin account | 24,579 | — | 997 | — | 25,576 | |||||||||||||||
Collateral provided to counterparties | 11,556 | — | 125,367 | 66,393 | 203,316 | |||||||||||||||
Collateral provided from counterparties | (1,750 | ) | — | (1,250 | ) | — | (3,000 | ) | ||||||||||||
Prepaid option premiums and other | 2,252 | (71 | ) | (155 | ) | — | 2,026 | |||||||||||||
Balance Sheet Total | $ | 73,788 | $ | 39,032 | $ | (58,976 | ) | $ | (65,390 | ) | $ | (11,546 | ) | |||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Investments | Current | Deferred Credits | Total Assets | |||||||||||||||||
Commodity Contracts | Current Assets | and Other Assets | Liabilities | and Other | (Liabilities) | |||||||||||||||
Derivatives designated as accounting hedging instruments: | ||||||||||||||||||||
Assets | $ | 329 | $ | — | $ | 3,242 | $ | 75 | $ | 3,646 | ||||||||||
Liabilities | (3,436 | ) | (256 | ) | (72,899 | ) | (77,953 | ) | (154,544 | ) | ||||||||||
Total hedging instruments | (3,107 | ) | (256 | ) | (69,657 | ) | (77,878 | ) | (150,898 | ) | ||||||||||
Derivatives not designated as accounting hedging instruments: | ||||||||||||||||||||
Assets | 31,220 | 29,807 | 34,645 | 44,631 | 140,303 | |||||||||||||||
Liabilities | (4,123 | ) | (696 | ) | (81,722 | ) | (71,408 | ) | (157,949 | ) | ||||||||||
Total non-hedging instruments | 27,097 | 29,111 | (47,077 | ) | (26,777 | ) | (17,646 | ) | ||||||||||||
Total derivatives | 23,990 | 28,855 | (116,734 | ) | (104,655 | ) | (168,544 | ) | ||||||||||||
Margin account | 8,643 | — | 12,464 | 104 | 21,211 | |||||||||||||||
Collateral provided to counterparties | 17,986 | — | 49,412 | 42,108 | 109,506 | |||||||||||||||
Collateral provided from counterparties | — | — | (1,050 | ) | — | (1,050 | ) | |||||||||||||
Balance Sheet Total | $ | 50,619 | $ | 28,855 | $ | (55,908 | ) | $ | (62,443 | ) | $ | (38,877 | ) | |||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Other income: | ||||||||||||
Interest income | $ | 3,255 | $ | 1,617 | $ | 7,539 | ||||||
Investment gains — net | 2,778 | 2,516 | — | |||||||||
Miscellaneous | 335 | 1,145 | 2,002 | |||||||||
Total other income | $ | 6,368 | $ | 5,278 | $ | 9,541 | ||||||
Other expense: | ||||||||||||
Non-operating costs | $ | (6,649 | ) | $ | (6,593 | ) | $ | (13,030 | ) | |||
Investment losses — net | — | — | (17,702 | ) | ||||||||
Miscellaneous | (3,115 | ) | (7,676 | ) | (844 | ) | ||||||
Total other expense | $ | (9,764 | ) | $ | (14,269 | ) | $ | (31,576 | ) | |||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, | December 31, | |||||||
2010 | 2009 | |||||||
Property plant and equipment, net of accumulated depreciation | $ | 138 | $ | 147 | ||||
Long-term debt including current maturities | 126 | 152 | ||||||
Equity- Noncontrolling interests | 91 | 82 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Guarantees | Surety Bonds | |||||||||||||||
Term | Term | |||||||||||||||
Amount | (in years) | Amount | (in years) | |||||||||||||
APSES | $ | 5 | 1 | $ | 48 | 1 | ||||||||||
APS | 3 | 1 | 9 | 1 | ||||||||||||
Total | $ | 8 | $ | 57 | ||||||||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Revenue: | ||||||||||||
SunCor | $ | 30 | $ | 114 | $ | 129 | ||||||
Other (primarily APSES) | 52 | 18 | 83 | |||||||||
Total revenue | $ | 82 | $ | 132 | $ | 212 | ||||||
Income (loss) before taxes: | ||||||||||||
SunCor | $ | (10 | ) | $ | (276 | ) | $ | (43 | ) | |||
Silverhawk | — | — | 13 | |||||||||
Other (primarily APSES) | 42 | 3 | (1 | ) | ||||||||
Total income (loss) before taxes | $ | 32 | $ | (273 | ) | $ | (31 | ) | ||||
Income (loss) after taxes: | ||||||||||||
SunCor | $ | (6 | ) | $ | (167 | ) | $ | (26 | ) | |||
Silverhawk | — | — | 8 | |||||||||
Other (primarily APSES) | 26 | 2 | (1 | ) | ||||||||
Total income (loss) after taxes (a) | $ | 20 | $ | (165 | ) | $ | (19 | ) | ||||
(a) | Includes a tax benefit recognized by the parent company in accordance with an intercompany tax sharing agreement of $4 million for the year ended December 31, 2010, and $113 million for the year ended December 31, 2009. |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Discontinued Operations: | ||||||||||||
Homebuilding and master-planned communities | $ | 1 | $ | 170 | $ | 21 | ||||||
Land parcels and commercial assets | 11 | 87 | 25 | |||||||||
Golf courses | 1 | 23 | 7 | |||||||||
Other | 4 | — | — | |||||||||
Subtotal | 17 | 280 | 53 | |||||||||
Less noncontrolling interests | — | (14 | ) | — | ||||||||
Total | $ | 17 | $ | 266 | $ | 53 | ||||||
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OVER FINANCIAL REPORTING
(ARIZONA PUBLIC SERVICE COMPANY)
153
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Arizona Public Service Company
Phoenix, Arizona
154
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Phoenix, Arizona
February 18, 2011
155
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
ELECTRIC OPERATING REVENUES | $ | 3,180,807 | $ | 3,149,500 | $ | 3,133,496 | ||||||
OPERATING EXPENSES | ||||||||||||
Fuel and purchased power | 1,046,815 | 1,178,620 | 1,289,883 | |||||||||
Operations and maintenance | 860,712 | 812,903 | 747,610 | |||||||||
Depreciation and amortization | 414,336 | 407,159 | 390,802 | |||||||||
Income taxes (Notes 4 and S-1) | 175,440 | 158,661 | 113,799 | |||||||||
Taxes other than income taxes | 134,467 | 122,358 | 124,046 | |||||||||
Total | 2,631,770 | 2,679,701 | 2,666,140 | |||||||||
OPERATING INCOME | 549,037 | 469,799 | 467,356 | |||||||||
OTHER INCOME (DEDUCTIONS) | ||||||||||||
Income taxes (Notes 4 and S-1) | 4,975 | 6,087 | 6,538 | |||||||||
Allowance for equity funds used during construction (Note 1) | 22,066 | 14,999 | 18,636 | |||||||||
Other income (Note S-3) | 8,956 | 10,808 | 6,231 | |||||||||
Other expense (Note S-3) | (15,859 | ) | (18,001 | ) | (30,569 | ) | ||||||
Total | 20,138 | 13,893 | 836 | |||||||||
INTEREST DEDUCTIONS | ||||||||||||
Interest on long-term debt | 217,002 | 212,654 | 184,532 | |||||||||
Interest on short-term borrowings | 8,267 | 6,315 | 13,432 | |||||||||
Debt discount, premium and expense | 4,559 | 4,675 | 4,702 | |||||||||
Allowance for borrowed funds used during construction (Note 1) | (16,479 | ) | (10,386 | ) | (14,313 | ) | ||||||
Total | 213,349 | 213,258 | 188,353 | |||||||||
NET INCOME | 355,826 | 270,434 | 279,839 | |||||||||
Less: Net income attributable to noncontrolling interests (Note 20) | 20,163 | 19,209 | 17,495 | |||||||||
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | $ | 335,663 | $ | 251,225 | $ | 262,344 | ||||||
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December 31, | ||||||||
2010 | 2009 | |||||||
ASSETS | ||||||||
PROPERTY, PLANT AND EQUIPMENT (Notes 1, 6, 9 and 10) | ||||||||
Plant in service and held for future use | $ | 13,197,254 | $ | 12,781,256 | ||||
Accumulated depreciation and amortization | (4,510,591 | ) | (4,326,908 | ) | ||||
Net | 8,686,663 | 8,454,348 | ||||||
Construction work in progress | 459,316 | 460,748 | ||||||
Palo Verde sale leaseback, net of accumulated depreciation of $213,094 and $204,328 (Note 20) | 137,956 | 146,722 | ||||||
Intangible assets, net of accumulated amortization of $329,444 and $293,450 | 184,768 | 164,183 | ||||||
Nuclear fuel, net of accumulated amortization of $85,270 and $64,544 | 108,794 | 118,243 | ||||||
Total property, plant and equipment | 9,577,497 | 9,344,244 | ||||||
INVESTMENTS AND OTHER ASSETS | ||||||||
Nuclear decommissioning trust (Note 14) | 469,886 | 414,576 | ||||||
Assets from risk management activities (Note 18) | 39,032 | 28,855 | ||||||
Other assets | 71,428 | 68,839 | ||||||
Total investments and other assets | 580,346 | 512,270 | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | 99,937 | 120,798 | ||||||
Customer and other receivables | 288,323 | 280,226 | ||||||
Accrued unbilled revenues | 103,292 | 110,971 | ||||||
Allowance for doubtful accounts | (7,646 | ) | (6,063 | ) | ||||
Materials and supplies (at average cost) | 181,414 | 176,020 | ||||||
Fossil fuel (at average cost) | 21,575 | 39,245 | ||||||
Assets from risk management activities (Note 18) | 73,788 | 50,619 | ||||||
Deferred income taxes (Notes 4 and S-1) | 74,747 | 53,990 | ||||||
Other current assets | 25,135 | 25,724 | ||||||
Total current assets | 860,565 | 851,530 | ||||||
DEFERRED DEBITS | ||||||||
Regulatory assets (Notes 1, 3, 4 and S-1) | 1,048,656 | 813,161 | ||||||
Income tax receivable (Notes 4 and S-1) | 65,498 | 65,498 | ||||||
Unamortized debt issue costs | 20,530 | 20,959 | ||||||
Other | 88,490 | 73,909 | ||||||
Total deferred debits | 1,223,174 | 973,527 | ||||||
TOTAL ASSETS | $ | 12,241,582 | $ | 11,681,571 | ||||
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CONSOLIDATED BALANCE SHEETS
(dollars in thousands)
December 31, | ||||||||
2010 | 2009 | |||||||
LIABILITIES AND EQUITY | ||||||||
CAPITALIZATION | ||||||||
Common stock | $ | 178,162 | $ | 178,162 | ||||
Additional paid-in capital | 2,379,696 | 2,126,863 | ||||||
Retained earnings | 1,403,390 | 1,250,126 | ||||||
Accumulated other comprehensive (loss): | ||||||||
Pension and other postretirement benefits (Note 8) | (35,961 | ) | (29,114 | ) | ||||
Derivative instruments | (100,334 | ) | (80,682 | ) | ||||
Total shareholder equity | 3,824,953 | 3,445,355 | ||||||
Noncontrolling interests (Note 20) | 91,084 | 82,324 | ||||||
Total equity | 3,916,037 | 3,527,679 | ||||||
Long-term debt less current maturities (Note 6) | 2,948,991 | 3,180,406 | ||||||
Palo Verde sale leaseback lessor notes less current maturities (Notes 6 and 20) | 96,803 | 126,000 | ||||||
Total capitalization | 6,961,831 | 6,834,085 | ||||||
CURRENT LIABILITIES | ||||||||
Current maturities of long-term debt (Note 6) | 456,879 | 222,959 | ||||||
Accounts payable | 218,491 | 213,833 | ||||||
Accrued taxes (Notes 4 and S-1) | 106,431 | 158,051 | ||||||
Accrued interest | 54,638 | 54,099 | ||||||
Customer deposits | 68,312 | 70,780 | ||||||
Liabilities from risk management activities (Note 18) | 58,976 | 55,908 | ||||||
Other current liabilities | 132,170 | 124,995 | ||||||
Total current liabilities | 1,095,897 | 900,625 | ||||||
DEFERRED CREDITS AND OTHER | ||||||||
Deferred income taxes (Notes 4 and S-1) | 1,865,359 | 1,582,945 | ||||||
Deferred fuel and purchased power regulatory liability (Notes 1 and 3) | 58,442 | 87,291 | ||||||
Other regulatory liabilities (Notes 1, 3, 4, and S-1) | 694,589 | 679,072 | ||||||
Liability for asset retirements (Note 12) | 328,571 | 301,783 | ||||||
Liabilities for pension and other postretirement benefits (Note 8) | 770,611 | 766,378 | ||||||
Liabilities from risk management activities (Note 18) | 65,390 | 62,443 | ||||||
Customer advances | 121,645 | 136,595 | ||||||
Coal mine reclamation | 117,243 | 92,060 | ||||||
Unrecognized tax benefits (Notes 4 and S-1) | 65,363 | 140,638 | ||||||
Other | 96,641 | 97,656 | ||||||
Total deferred credits and other | 4,183,854 | 3,946,861 | ||||||
COMMITMENTS AND CONTINGENCIES (SEE NOTES) | ||||||||
TOTAL LIABILITIES AND EQUITY | $ | 12,241,582 | $ | 11,681,571 | ||||
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net income | $ | 355,826 | $ | 270,434 | $ | 279,839 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Depreciation and amortization including nuclear fuel | 471,226 | 445,988 | 424,414 | |||||||||
Deferred fuel and purchased power | 93,631 | (51,742 | ) | (80,183 | ) | |||||||
Deferred fuel and purchased power amortization | (122,481 | ) | 147,018 | 183,126 | ||||||||
Allowance for equity funds used during construction | (22,066 | ) | (14,999 | ) | (18,636 | ) | ||||||
Deferred income taxes | 224,095 | 192,914 | 145,157 | |||||||||
Change in mark-to-market valuations | 2,688 | (6,939 | ) | 7,792 | ||||||||
Changes in current assets and liabilities: | ||||||||||||
Customer and other receivables | (49,956 | ) | 2,603 | 40,782 | ||||||||
Accrued unbilled revenues | 7,679 | (10,882 | ) | 6,784 | ||||||||
Materials, supplies and fossil fuel | 12,276 | (12,261 | ) | (25,453 | ) | |||||||
Other current assets | 589 | (9,427 | ) | 128 | ||||||||
Accounts payable | 18,066 | (22,129 | ) | (5,915 | ) | |||||||
Accrued taxes | (51,620 | ) | (61,078 | ) | (12,377 | ) | ||||||
Other current liabilities | (570 | ) | 26,907 | 20,527 | ||||||||
Change in margin and collateral accounts — assets | (9,937 | ) | (13,206 | ) | 17,850 | |||||||
Change in margin and collateral accounts — liabilities | (88,315 | ) | 35,654 | (132,416 | ) | |||||||
Change in regulatory liabilities | 54,518 | 110,642 | (12,129 | ) | ||||||||
Change in long-term income tax receivable | — | (132,379 | ) | — | ||||||||
Change in unrecognized tax benefits | (73,189 | ) | 137,478 | (92,064 | ) | |||||||
Change in other long-term assets | (41,989 | ) | (53,734 | ) | 14,340 | |||||||
Change in other long-term liabilities | (85,136 | ) | 14,097 | 58,219 | ||||||||
Net cash flow provided by operating activities | 695,335 | 994,959 | 819,785 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Capital expenditures | (747,967 | ) | (754,301 | ) | (910,189 | ) | ||||||
Contributions in aid of construction | 32,754 | 53,525 | 60,292 | |||||||||
Allowance for borrowed funds used during construction | (16,479 | ) | (10,386 | ) | (14,313 | ) | ||||||
Proceeds from nuclear decommissioning trust sales | 560,469 | 441,242 | 317,619 | |||||||||
Investment in nuclear decommissioning trust | (584,885 | ) | (463,033 | ) | (338,361 | ) | ||||||
Other | 8,576 | (4,667 | ) | 5,517 | ||||||||
Net cash flow used for investing activities | (747,532 | ) | (737,620 | ) | (879,435 | ) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Issuance of long-term debt | — | 863,780 | — | |||||||||
Repayment of long-term debt | (27,694 | ) | (365,696 | ) | (48,460 | ) | ||||||
Short-term borrowings and payments — net | — | (521,684 | ) | 303,684 | ||||||||
Equity infusion | 252,833 | — | 7,601 | |||||||||
Dividends paid on common stock | (182,400 | ) | (170,000 | ) | (170,000 | ) | ||||||
Noncontrolling interests | (11,403 | ) | (14,485 | ) | (13,782 | ) | ||||||
Net cash flow provided by (used for) financing activities | 31,336 | (208,085 | ) | 79,043 | ||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (20,861 | ) | 49,254 | 19,393 | ||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 120,798 | 71,544 | 52,151 | |||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | 99,937 | $ | 120,798 | $ | 71,544 | ||||||
Supplemental disclosure of cash flow information: | ||||||||||||
Cash paid during the year for: | ||||||||||||
Income taxes, net of refunds | $ | 81,339 | $ | 13,555 | $ | 56,728 | ||||||
Interest, net of amounts capitalized | $ | 208,251 | $ | 194,346 | $ | 182,053 |
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
COMMON STOCK | $ | 178,162 | $ | 178,162 | $ | 178,162 | ||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||||
Balance at beginning of year | 2,126,863 | 2,117,789 | 2,105,466 | |||||||||
Equity infusion | 252,833 | — | 7,601 | |||||||||
Other | — | 9,074 | 4,722 | |||||||||
Balance at end of year | 2,379,696 | 2,126,863 | 2,117,789 | |||||||||
RETAINED EARNINGS | ||||||||||||
Balance at beginning of year | 1,250,126 | 1,168,901 | 1,076,557 | |||||||||
Net income attributable to common shareholder | 335,663 | 251,225 | 262,344 | |||||||||
Dividends on common stock | (182,400 | ) | (170,000 | ) | (170,000 | ) | ||||||
Other | 1 | — | — | |||||||||
Balance at end of year | 1,403,390 | 1,250,126 | 1,168,901 | |||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||
Balance at beginning of year | (109,796 | ) | (125,702 | ) | (8,744 | ) | ||||||
Pension and other postretirement benefits (Note 8): | ||||||||||||
Unrealized actuarial loss, net of tax benefit of $(6,344), $(2,938) and $(5,075) | (9,684 | ) | (4,571 | ) | (7,597 | ) | ||||||
Amortization to income: | ||||||||||||
Actuarial loss, net of tax benefit of $1,658, $1,387 and $1,393 | 2,541 | 2,126 | 2,130 | |||||||||
Prior service cost, net of tax benefit of $193, $190 and $189 | 295 | 291 | 289 | |||||||||
Derivative instruments: | ||||||||||||
Net unrealized gain (loss), net of tax (benefit) of $(61,358), $(61,317) and $(56,149) | (93,929 | ) | (94,008 | ) | (85,670 | ) | ||||||
Reclassification of net realized (gains) losses to income, net of tax (expense) benefit of $48,462, $73,261 and $(16,890) | 74,278 | 112,068 | (26,110 | ) | ||||||||
Balance at end of year | (136,295 | ) | (109,796 | ) | (125,702 | ) | ||||||
NONCONTROLLING INTERESTS | ||||||||||||
Balance at beginning of year | 82,324 | 77,601 | 73,887 | |||||||||
Net income attributable to noncontrolling interests | 20,163 | 19,209 | 17,495 | |||||||||
Net capital activities by noncontrolling interests | (11,403 | ) | (14,486 | ) | (13,781 | ) | ||||||
Balance at end of year | 91,084 | 82,324 | 77,601 | |||||||||
TOTAL EQUITY | $ | 3,916,037 | $ | 3,527,679 | $ | 3,416,751 | ||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO COMMON SHAREHOLDER | ||||||||||||
Net income attributable to common shareholder | $ | 335,663 | $ | 251,225 | $ | 262,344 | ||||||
Other comprehensive income (loss) | (26,499 | ) | 15,906 | (116,958 | ) | |||||||
Total comprehensive income attributable to common shareholders | $ | 309,164 | $ | 267,131 | $ | 145,386 | ||||||
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APS’s | ||||
Consolidated | Supplemental | |||
Footnote | Footnote | |||
Reference | Reference | |||
Summary of Significant Accounting Policies | Note 1 | — | ||
New Accounting Standards | Note 2 | — | ||
Regulatory Matters | Note 3 | — | ||
Income Taxes | Note 4 | Note S-1 | ||
Lines of Credit and Short-Term Borrowings | Note 5 | — | ||
Long-Term Debt and Liquidity Matters | Note 6 | — | ||
Common Stock and Treasury Stock | Note 7 | — | ||
Retirement Plans and Other Benefits | Note 8 | — | ||
Leases | Note 9 | — | ||
Jointly-Owned Facilities | Note 10 | — | ||
Commitments and Contingencies | Note 11 | — | ||
Asset Retirement Obligations | Note 12 | — | ||
Selected Quarterly Financial Data (Unaudited) | Note 13 | Note S-2 | ||
Fair Value Measurements | Note 14 | — | ||
Earnings Per Share | Note 15 | — | ||
Stock-Based Compensation | Note 16 | — | ||
Business Segments | Note 17 | — | ||
Derivative Accounting | Note 18 | — | ||
Other Income and Other Expense | Note 19 | Note S-3 | ||
Variable Interest Entities | Note 20 | — | ||
Guarantees and Surety Bonds | Note 21 | — | ||
Discontinued Operations | Note 22 | — | ||
Real Estate Impairment Charge | Note 23 | — |
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2010 | 2009 | 2008 | ||||||||||
Total unrecognized tax benefits, January 1 | $ | 199,887 | $ | 62,409 | $ | 154,473 | ||||||
Additions for tax positions of the current year | 7,551 | 44,094 | 12,893 | |||||||||
Additions for tax positions of prior years | — | 98,269 | 32,481 | |||||||||
Reductions for tax positions of prior years for: | ||||||||||||
Changes in judgment | (10,964 | ) | — | (4,547 | ) | |||||||
Settlements with taxing authorities | (61,820 | ) | (4,089 | ) | (35,812 | ) | ||||||
Lapses of applicable statute of limitations | (7,956 | ) | (796 | ) | (97,079 | ) | ||||||
Total unrecognized tax benefits, December 31 | $ | 126,698 | $ | 199,887 | $ | 62,409 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Current: | ||||||||||||
Federal | $ | (71,036 | ) | $ | (8,667 | ) | $ | (54,719 | ) | |||
State | 17,406 | (31,673 | ) | 16,823 | ||||||||
Total current | (53,630 | ) | (40,340 | ) | (37,896 | ) | ||||||
Deferred | 224,095 | 192,914 | 145,157 | |||||||||
Total income tax expense | $ | 170,465 | $ | 152,574 | $ | 107,261 | ||||||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Federal income tax expense at 35% statutory rate | $ | 184,202 | $ | 148,053 | $ | 135,485 | ||||||
Increases (reductions) in tax expense resulting from: | ||||||||||||
State income tax net of federal income tax benefit | 19,186 | 16,691 | 14,956 | |||||||||
Credits and favorable adjustments related to prior years resolved in current year | (17,300 | ) | — | (28,873 | ) | |||||||
Medicare Subsidy Part-D (see Note 8) | 889 | (2,025 | ) | (1,921 | ) | |||||||
Allowance for equity funds used during construction (see Note 1) | (6,563 | ) | (4,265 | ) | (5,755 | ) | ||||||
Palo Verde VIE noncontrolling interest (see Note 20) | (7,057 | ) | (6,723 | ) | (6,123 | ) | ||||||
Other | (2,892 | ) | 843 | (508 | ) | |||||||
Income tax expense | $ | 170,465 | $ | 152,574 | $ | 107,261 | ||||||
December 31, | ||||||||
2010 | 2009 | |||||||
Current asset | $ | 74,747 | $ | 53,990 | ||||
Long-term liability | (1,865,359 | ) | (1,582,945 | ) | ||||
Deferred income taxes — net | $ | (1,790,612 | ) | $ | (1,528,955 | ) | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, | ||||||||
2010 | 2009 | |||||||
DEFERRED TAX ASSETS | ||||||||
Regulatory liabilities: | ||||||||
Asset retirement obligation and removal costs | $ | 222,448 | $ | 213,814 | ||||
Deferred fuel and purchased power | 23,089 | 34,463 | ||||||
Renewable Energy Standard | 18,749 | — | ||||||
Other | 28,360 | 21,613 | ||||||
Risk management activities | 124,731 | 87,404 | ||||||
Pension and other postretirement liabilities | 303,055 | 288,769 | ||||||
Renewable energy incentives | 37,327 | — | ||||||
Other | 97,989 | 104,416 | ||||||
Total deferred tax assets | 855,748 | 750,479 | ||||||
DEFERRED TAX LIABILITIES | ||||||||
Plant-related | (2,210,976 | ) | (1,951,262 | ) | ||||
Risk management activities | (30,125 | ) | (20,863 | ) | ||||
Regulatory assets: | ||||||||
Allowance for equity funds used during construction | (28,276 | ) | (23,285 | ) | ||||
Deferred fuel and purchased power — mark-to-market | (30,276 | ) | (16,167 | ) | ||||
Pension and other postretirement benefits | (264,313 | ) | (210,080 | ) | ||||
Other | (77,078 | ) | (57,210 | ) | ||||
Other | (5,316 | ) | (567 | ) | ||||
Total deferred tax liabilities | (2,646,360 | ) | (2,279,434 | ) | ||||
Deferred income taxes — net | $ | (1,790,612 | ) | $ | (1,528,955 | ) | ||
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 Quarter Ended, | 2010 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
Operating revenues | $ | 611,476 | $ | 799,467 | $ | 1,116,220 | $ | 653,644 | $ | 3,180,807 | ||||||||||
Operations and maintenance | 203,881 | 211,310 | 217,044 | 228,477 | 860,712 | |||||||||||||||
Operating income | 65,435 | 146,249 | 277,009 | 60,344 | 549,037 | |||||||||||||||
Net income (Loss) attributable to common shareholders | 10,984 | 90,220 | 226,648 | 7,811 | 335,663 |
2009 Quarter Ended, | 2009 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
As originally reported in the 2009 10-K: | ||||||||||||||||||||
Operating revenues | $ | 602,660 | $ | 812,587 | $ | 1,083,825 | $ | 650,428 | $ | 3,149,500 | ||||||||||
Operations and maintenance | 201,100 | 221,128 | 203,446 | 226,889 | 852,563 | |||||||||||||||
Operating income | 29,125 | 122,385 | 245,104 | 41,229 | 437,843 | |||||||||||||||
Net income (Loss) | (15,479 | ) | 78,544 | 197,065 | (8,905 | ) | 251,225 |
2009 Quarter Ended, | 2009 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
Palo Verde VIE reclassifications: | ||||||||||||||||||||
Operations and maintenance | $ | (9,915 | ) | $ | (9,914 | ) | $ | (9,916 | ) | (9,915 | ) | $ | (39,660 | ) | ||||||
Operating income | 7,989 | 7,989 | 7,989 | 7,989 | 31,956 | |||||||||||||||
Net income attributable to noncontrolling interests | 4,650 | 4,651 | 4,953 | 4,955 | 19,209 |
2009 Quarter Ended, | 2009 | |||||||||||||||||||
March 31, | June 30, | September 30, | December 31, | Total | ||||||||||||||||
After Palo Verde VIE reclassifications (see Note 20): | ||||||||||||||||||||
Operating revenues | $ | 602,660 | $ | 812,587 | $ | 1,083,825 | $ | 650,428 | $ | 3,149,500 | ||||||||||
Operations and maintenance | 191,185 | 211,214 | 193,530 | 216,974 | 812,903 | |||||||||||||||
Operating income | 37,114 | 130,374 | 253,093 | 49,218 | 469,799 | |||||||||||||||
Net income attributable to noncontrolling interests | 4,650 | 4,651 | 4,953 | 4,955 | 19,209 | |||||||||||||||
Net income (Loss) attributable to common shareholders | (15,479 | ) | 78,544 | 197,065 | (8,905 | ) | 251,225 |
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2010 | 2009 | 2008 | ||||||||||
Other income: | ||||||||||||
Interest income | $ | 668 | $ | 502 | $ | 3,863 | ||||||
SO2 emission allowance sales and other (a) | — | 1,439 | 392 | |||||||||
Investment gains — net | 2,334 | 6,673 | — | |||||||||
Miscellaneous | 5,954 | 2,194 | 1,976 | |||||||||
Total other income | $ | 8,956 | $ | 10,808 | $ | 6,231 | ||||||
Other expense: | ||||||||||||
Non-operating costs (a) | $ | (9,855 | ) | $ | (7,368 | ) | $ | (10,538 | ) | |||
Asset dispositions | (612 | ) | (656 | ) | (5,779 | ) | ||||||
Investment losses — net | — | — | (9,438 | ) | ||||||||
Miscellaneous | (5,392 | ) | (9,977 | ) | (4,814 | ) | ||||||
Total other expense | $ | (15,859 | ) | $ | (18,001 | ) | $ | (30,569 | ) | |||
(a) | As defined by the FERC, includes below-the-line non-operating utility income and expense (items excluded from utility rate recovery). |
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CONDENSED STATEMENTS OF INCOME
Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Operating revenues | $ | 2,810 | $ | 1,156 | $ | 52 | ||||||
Operating expenses | ||||||||||||
Fuel and purchased power | — | — | (19,970 | ) | ||||||||
Other operating expenses | 9,880 | 10,420 | 8,979 | |||||||||
Total | 9,880 | 10,420 | (10,991 | ) | ||||||||
Operating income (loss) | (7,070 | ) | (9,264 | ) | 11,043 | |||||||
Other | ||||||||||||
Equity in earnings (losses) of subsidiaries | 358,527 | (37,214 | ) | 226,893 | ||||||||
Other income | 883 | 2,776 | 1,248 | |||||||||
Total | 359,410 | (34,438 | ) | 228,141 | ||||||||
Interest expense | 14,346 | 14,129 | 17,550 | |||||||||
Income (loss) from continuing operations | 337,994 | (57,831 | ) | 221,634 | ||||||||
Income tax benefit | (9,015 | ) | (13,885 | ) | (12,374 | ) | ||||||
Income (loss) from continuing operations — net of income taxes | 347,009 | (43,946 | ) | 234,008 | ||||||||
Income from discontinued operations — net of income taxes | 3,044 | 112,276 | 8,117 | |||||||||
Net income attributable to common shareholders | $ | 350,053 | $ | 68,330 | $ | 242,125 | ||||||
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Balance at December 31, | ||||||||
2010 | 2009 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 7,725 | $ | 17,284 | ||||
Customer and other receivables | 75,745 | 77,570 | ||||||
Current deferred income taxes | 19,855 | — | ||||||
Income tax receivable | 3,736 | 64,317 | ||||||
Other current assets | 61 | 49 | ||||||
Total current assets | 107,122 | 159,220 | ||||||
Investments and other assets | ||||||||
Investments in subsidiaries | 3,901,935 | 3,572,472 | ||||||
Deferred income taxes | — | 89,842 | ||||||
Other assets | 58,071 | 22,520 | ||||||
Total investments and other assets | 3,960,006 | 3,684,834 | ||||||
Total Assets | $ | 4,067,128 | $ | 3,844,054 | ||||
Liabilities and Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 4,981 | $ | 10,923 | ||||
Accrued taxes | 4,216 | 5,157 | ||||||
Short-term borrowings | 16,600 | 149,086 | ||||||
Current maturities of long-term debt | 175,000 | — | ||||||
Other current liabilities | 28,101 | 9,950 | ||||||
Total current liabilities | 228,898 | 175,116 | ||||||
Long-term debt less current maturities | — | 175,000 | ||||||
Deferred credits and other | ||||||||
Pension and other postretirement liabilities | 28,607 | 29,343 | ||||||
Other | 34,397 | 36,591 | ||||||
Total deferred credits and other | 63,004 | 65,934 | ||||||
Common stock equity | ||||||||
Common stock | 2,419,133 | 2,149,483 | ||||||
Accumulated other comprehensive loss | (159,767 | ) | (131,587 | ) | ||||
Retained earnings | 1,423,961 | 1,298,213 | ||||||
Total Pinnacle West Shareholders’ equity | 3,683,327 | 3,316,109 | ||||||
Noncontrolling interests | 91,899 | 111,895 | ||||||
Total Equity | 3,775,226 | 3,428,004 | ||||||
Total Liabilities and Equity | $ | 4,067,128 | $ | 3,844,054 | ||||
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Year Ended December 31, | ||||||||||||
2010 | 2009 | 2008 | ||||||||||
Cash flows from operating activities | ||||||||||||
Net income | $ | 350,053 | $ | 68,330 | $ | 242,125 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in earnings of subsidiaries — net | (358,527 | ) | 37,214 | (226,893 | ) | |||||||
Depreciation and amortization | 143 | 127 | 210 | |||||||||
Deferred income taxes | 40,342 | (106,536 | ) | 31,954 | ||||||||
Change in mark-to-market valuations | — | — | (19,975 | ) | ||||||||
Customer and other receivables | (18,175 | ) | (2,303 | ) | 38,938 | |||||||
Accounts payable | 7,468 | 466 | (14,134 | ) | ||||||||
Accrued taxes and income tax receivables — net | 59,640 | 44,625 | (5,230 | ) | ||||||||
Change in margin and collateral accounts — net | — | — | — | |||||||||
Dividends received from subsidiaries | 207,000 | 170,000 | 170,000 | |||||||||
Other net | 423 | (2,379 | ) | (7,914 | ) | |||||||
Net cash flow provided by operating activities | 288,367 | 209,544 | 209,081 | |||||||||
Cash flows from investing activities | ||||||||||||
Investments in subsidiaries | (183,544 | ) | (4,967 | ) | (18,765 | ) | ||||||
Repayments of loans from subsidiaries | 98,406 | 25,240 | 10,194 | |||||||||
Advances of loans to subsidiaries | (119,293 | ) | (21,587 | ) | (22,554 | ) | ||||||
Net cash flow used for investing activities | (204,431 | ) | (1,314 | ) | (31,125 | ) | ||||||
Cash flows from financing activities | ||||||||||||
Short-term borrowings and payments — net | (132,487 | ) | 4,566 | 28,729 | ||||||||
Dividends paid on common stock | (216,979 | ) | (205,076 | ) | (204,247 | ) | ||||||
Repayment of long-term debt | — | — | — | |||||||||
Common stock equity issuance | 255,971 | 3,302 | 3,687 | |||||||||
Net cash flow used for financing activities | (93,495 | ) | (197,208 | ) | (171,831 | ) | ||||||
Net increase (decrease) in cash and cash equivalents | (9,559 | ) | 11,022 | 6,125 | ||||||||
Cash and cash equivalents at beginning of year | 17,284 | 6,262 | 137 | |||||||||
Cash and cash equivalents at end of year | $ | 7,725 | $ | 17,284 | $ | 6,262 | ||||||
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Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Charged | Balance | |||||||||||||||||
beginning | cost and | to other | at end of | |||||||||||||||||
Description | of period | expenses | accounts | Deductions | period | |||||||||||||||
Reserve for uncollectibles: | ||||||||||||||||||||
2010 | $ | 4,573 | $ | 6,905 | $ | — | $ | 6,769 | $ | 4,709 | ||||||||||
2009 | 3,383 | 7,617 | — | 6,427 | 4,573 | |||||||||||||||
2008 | 4,782 | 6,177 | — | 7,576 | 3,383 |
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Column A | Column B | Column C | Column D | Column E | ||||||||||||||||
Additions | ||||||||||||||||||||
Balance at | Charged to | Charged | Balance | |||||||||||||||||
beginning | cost and | to other | at end of | |||||||||||||||||
Description | of period | expenses | accounts | Deductions | period | |||||||||||||||
Reserve for uncollectibles: | ||||||||||||||||||||
2010 | $ | 4,483 | $ | 6,756 | $ | — | $ | 6,863 | $ | 4,376 | ||||||||||
2009 | 3,155 | 7,062 | — | 5,734 | 4,483 | |||||||||||||||
2008 | 4,265 | 5,924 | — | 7,034 | 3,155 |
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ON ACCOUNTING AND FINANCIAL DISCLOSURE
173
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AND CORPORATE GOVERNANCE OF PINNACLE WEST
CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
AND RELATED STOCKHOLDER MATTERS
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Number of securities | ||||||||||||
remaining available | ||||||||||||
for future issuance | ||||||||||||
Number of securities | Weighted-average | under equity | ||||||||||
to be issued upon | exercise price of | compensation plans | ||||||||||
exercise of | outstanding | (excluding securities | ||||||||||
outstanding options, | options, warrants | reflected in column | ||||||||||
warrants and rights | and rights | (a)) | ||||||||||
Plan Category | (a)1 | (b)2 | (c)3 | |||||||||
Equity compensation plans approved by security holders | 1,406,262 | $ | 39.37 | 5,782,718 | ||||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||||
Total | 1,406,262 | $ | 39.37 | 5,782,718 | ||||||||
1 | This amount includes shares subject to outstanding options as well as shares subject to outstanding performance share awards and restricted stock unit awards at the maximum amount of shares issuable under such awards. However, payout of the performance share awards is contingent on the Company reaching certain levels of performance during a three-year performance period. If the performance criteria for these awards are not fully satisfied, the award recipient will receive less than the maximum number of shares available under these grants and may receive nothing from these grants. | |
2 | The weighted average exercise price in this column does not take performance share awards or restricted stock unit awards into account, as those awards have no exercise price. | |
3 | Awards can take the form of options, stock appreciation rights, restricted stock, performance shares, performance share units, performance cash, stock grants, dividend equivalents, and restricted stock units. |
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DIRECTOR INDEPENDENCE
FEES AND SERVICES
Type of Service | 2009 | 2010 | ||||||
Audit Fees (1) | $ | 1,698,325 | $ | 1,330,173 | ||||
Audit-Related Fees (2) | 380,695 | 138,247 | ||||||
Tax Fees | — | — |
(1) | The aggregate fees billed for services rendered for the audit of annual financial statements and for review of financial statements included in Reports on Form 10-Q. | |
(2) | The aggregate fees billed for assurance services that are reasonably related to the performance of the audit or review of the financial statements that are not included in Audit Fees reported above, which primarily consist of fees for an IFRS Assessment for work performed in 2009 and employee benefit plan audits performed in 2010 and 2009. |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
3.1 | Pinnacle West | Articles of Incorporation, restated as of May 21, 2008 | 3.1 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File No. 1-8962 | 8-7-08 | ||||
3.2 | Pinnacle West | Pinnacle West Capital Corporation Bylaws, amended as of May 19, 2010 | 3.1 to Pinnacle West/APS June 30, 2010 Form 10-Q Report, File No. 1-8962 | 8-3-10 | ||||
3.3 | APS | Articles of Incorporation, restated as of May 25, 1988 | 4.2 to APS’s Form 18 Registration Nos. 33-33910 and 33-55248 by means of September 24, 1993 Form 8-K Report, File No. 1-4473 | 9-29-93 | ||||
3.4 | APS | Arizona Public Service Company Bylaws, amended as of December 16, 2008 | 3.4 to Pinnacle West/APS December 31, 2008 Form 10-K, File No. 1-4473 | 2-20-09 | ||||
4.1 | Pinnacle West | Specimen Certificate of Pinnacle West Capital Corporation Common Stock, no par value | 4.12 to Pinnacle West April 29, 2005 Form 8-K Report, File No. 1-8962 | 5-2-05 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
4.2 | Pinnacle West APS | Indenture dated as of January 1, 1995 among APS and The Bank of New York Mellon, as Trustee | 4.6 to APS’s Registration Statement Nos. 33-61228 and 33-55473 by means of January 1, 1995 Form 8-K Report, File No. 1-4473 | 1-11-95 | ||||
4.2a | Pinnacle West APS | First Supplemental Indenture dated as of January 1, 1995 | 4.4 to APS’s Registration Statement Nos. 33-61228 and 33-55473 by means of January 1, 1995 Form 8-K Report, File No. 1-4473 | 1-11-95 | ||||
4.3 | Pinnacle West APS | Indenture dated as of November 15, 1996 between APS and The Bank of New York, as Trustee | 4.5 to APS’s Registration Statements Nos. 33-61228, 33-55473, 33-64455 and 333-15379 by means of November 19, 1996 Form 8-K Report, File No. 1-4473 | 11-22-96 | ||||
4.3a | Pinnacle West APS | First Supplemental Indenture dated as of November 15, 1996 | 4.6 to APS’s Registration Statements Nos. 33-61228, 33-55473, 33-64455 and 333-15379 by means of November 19, 1996 Form 8-K Report, File No. 1-4473 | 11-22-96 | ||||
4.3b | Pinnacle West APS | Second Supplemental Indenture dated as of April 1, 1997 | 4.10 to APS’s Registration Statement Nos. 33-55473, 33-64455 and 333-15379 by means of April 7, 1997 Form 8-K Report, File No. 1-4473 | 4-9-97 | ||||
4.3c | Pinnacle West APS | Third Supplemental Indenture dated as of November 1, 2002 | 10.2 to Pinnacle West’s March 31, 2003 Form 10-Q Report, File No. 1-8962 | 5-15-03 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
4.4 | Pinnacle West | Indenture dated as of December 1, 2000 between the Company and The Bank of New York, as Trustee, relating to Senior Unsecured Debt Securities | 4.1 to Pinnacle West’s Registration Statement No. 333-52476 | 12-21-00 | ||||
4.5 | Pinnacle West | Indenture dated as of December 1, 2000 between the Company and The Bank of New York, as Trustee, relating to Subordinated Unsecured Debt Securities | 4.2 to Pinnacle West���s Registration Statement No. 333-52476 | 12-21-00 | ||||
4.6 | Pinnacle West APS | Indenture dated as of January 15, 1998 between APS and The Bank of New York Mellon Trust Company N.A. (successor to JPMorgan Chase Bank, N.A., formerly known as The Chase Manhattan Bank), as Trustee | 4.10 to APS’s Registration Statement Nos. 333-15379 and 333-27551 by means of January 13, 1998 Form 8-K Report, File No. 1-4473 | 1-16-98 | ||||
4.6a | Pinnacle West APS | Fifth Supplemental Indenture dated as of October 1, 2001 | 4.1 to APS’s September 30, 2001 Form 10-Q, File No. 1-4473 | 11-6-01 | ||||
4.6b | Pinnacle West APS | Sixth Supplemental Indenture dated as of March 1, 2002 | 4.1 to APS’s Registration Statement Nos. 333-63994 and 333-83398 by means of February 26, 2002 Form 8-K Report, File No. 1-4473 | 2-28-02 | ||||
4.6c | Pinnacle West APS | Seventh Supplemental Indenture dated as of May 1, 2003 | 4.1 to APS’s Registration Statement No. 333-90824 by means of May 7, 2003 Form 8-K Report, File No. 1-4473 | 5-9-03 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
4.6d | Pinnacle West APS | Eighth Supplemental Indenture dated as of June 15, 2004 | 4.1 to APS’s Registration Statement No. 333-106772 by means of June 24, 2004 Form 8-K Report, File No. 1-4473 | 6-28-04 | ||||
4.6e | Pinnacle West APS | Ninth Supplemental Indenture dated as of August 15, 2005 | 4.1 to APS’s Registration Statements Nos. 333-106772 and 333-121512 by means of August 17, 2005 Form 8-K Report, File No. 1-4473 | 8-22-05 | ||||
4.6f | APS | Tenth Supplemental Indenture dated as of August 1, 2006 | 4.1 to APS’s July 31, 2006 Form 8-K Report, File No. 1-4473 | 8-3-06 | ||||
4.6g | Pinnacle West APS | Eleventh Supplemental Indenture dated as of February 26, 2009 | 4.1 to Pinnacle West’s/APS’s February 23, 2009 Form 8-K Report, File Nos. 1-8962 and 1-4473 | 2-25-09 | ||||
4.7 | Pinnacle West | Second Amended and Restated Pinnacle West Capital Corporation Investors Advantage Plan dated as of June 23, 2004 | 4.4 to Pinnacle West’s June 23, 2004 Form 8-K Report, File No. 1-8962 | 8-9-04 | ||||
4.7a | Pinnacle West | Third Amended and Restated Pinnacle West Capital Corporation Investors Advantage Plan dated as of November 25, 2008 | 4.1 to Pinnacle West’s Form S-3 Registration Statement No. 333-155641, File No. 1-8962 | 11-25-08 | ||||
4.8 | Pinnacle West | Agreement, dated March 29, 1988, relating to the filing of instruments defining the rights of holders of long-term debt not in excess of 10% of the Company’s total assets | 4.1 to Pinnacle West’s 1987 Form 10-K Report, File No. 1-8962 | 3-30-88 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
4.8a | Pinnacle West APS | Agreement, dated March 21, 1994, relating to the filing of instruments defining the rights of holders of APS long-term debt not in excess of 10% of APS’s total assets | 4.1 to APS’s 1993 Form 10-K Report, File No. 1-4473 | 3-30-94 | ||||
10.1.1 | Pinnacle West APS | Two separate Decommissioning Trust Agreements (relating to PVNGS Units 1 and 3, respectively), each dated July 1, 1991, between APS and Mellon Bank, N.A., as Decommissioning Trustee | 10.2 to APS’s September 30, 1991 Form 10-Q Report, File No. 1-4473 | 11-14-91 | ||||
10.1.1a | Pinnacle West APS | Amendment No. 1 to Decommissioning Trust Agreement (PVNGS Unit 1), dated as of December 1, 1994 | 10.1 to APS’s 1994 Form 10-K Report, File No. 1-4473 | 3-30-95 | ||||
10.1.1b | Pinnacle West APS | Amendment No. 1 to Decommissioning Trust Agreement (PVNGS Unit 3), dated as of December 1, 1994 | 10.2 to APS’s 1994 Form 10-K Report, File No. 1-4473 | 3-30-95 | ||||
10.1.1c | Pinnacle West APS | Amendment No. 2 to APS Decommissioning Trust Agreement (PVNGS Unit 1) dated as of July 1, 1991 | 10.4 to APS’s 1996 Form 10-K Report, File No. 1-4473 | 3-28-97 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.1.1d | Pinnacle West APS | Amendment No. 2 to APS Decommissioning Trust Agreement (PVNGS Unit 3) dated as of July 1, 1991 | 10.6 to APS’s 1996 Form 10-K Report, File No. 1-4473 | 3-28-97 | ||||
10.1.1e | Pinnacle West APS | Amendment No. 3 to the Decommissioning Trust Agreement (PVNGS Unit 1), dated as of March 18, 2002 | 10.2 to Pinnacle West’s March 31, 2002 Form 10-Q Report, File No. 1-8962 | 5-15-02 | ||||
10.1.1f | Pinnacle West APS | Amendment No. 3 to the Decommissioning Trust Agreement (PVNGS Unit 3), dated as of March 18, 2002 | 10.4 to Pinnacle West’s March 2002 Form 10-Q Report, File No. 1-8962 | 5-15-02 | ||||
10.1.1g | Pinnacle West APS | Amendment No. 4 to the Decommissioning Trust Agreement (PVNGS Unit 1), dated as of December 19, 2003 | 10.3 to Pinnacle West’s 2003 Form 10-K Report, File No. 1-8962 | 3-15-04 | ||||
10.1.1h | Pinnacle West APS | Amendment No. 4 to the Decommissioning Trust Agreement (PVNGS Unit 3), dated as of December 19, 2003 | 10.5 to Pinnacle West’s 2003 Form 10-K Report, File No. 1-8962 | 3-15-04 | ||||
10.1.1i | Pinnacle West APS | Amendment No. 5 to the Decommissioning Trust Agreement (PVNGS Unit 1), dated as of May 1, 2007 | 10.1 to Pinnacle West/APS March 31, 2007 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-9-07 | ||||
10.1.1j | Pinnacle West APS | Amendment No. 5 to the Decommissioning Trust Agreement (PVNGS Unit 3), dated as of May 1, 2007 | 10.2 to Pinnacle West/APS March 31, 2007 Form 10-Q Report, File Nos. 1-8962 and 104473 | 5-9-07 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.1.2 | Pinnacle West APS | Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2) dated as of January 31, 1992, among APS, Mellon Bank, N.A., as Decommissioning Trustee, and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee under two separate Trust Agreements, each with a separate Equity Participant, and as Lessor under two separate Facility Leases, each relating to an undivided interest in PVNGS Unit 2 | 10.1 to Pinnacle West’s 1991 Form 10-K Report, File No. 1-8962 | 3-26-92 | ||||
10.1.2a | Pinnacle West APS | First Amendment to Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of November 1, 1992 | 10.2 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
10.1.2b | Pinnacle West APS | Amendment No. 2 to Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of November 1, 1994 | 10.3 to APS’s 1994 Form 10-K Report, File No. 1-4473 | 3-30-95 | ||||
10.1.2c | Pinnacle West APS | Amendment No. 3 to Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of June 20, 1996 | 10.1 to APS’s June 30, 1996 Form 10-Q Report, File No. 1-4473 | 8-9-96 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.1.2d | Pinnacle West APS | Amendment No. 4 to Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2) dated as of December 16, 1996 | APS 10.5 to APS’s 1996 Form 10-K Report, File No. 1-4473 | 3-28-97 | ||||
10.1.2e | Pinnacle West APS | Amendment No. 5 to the Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of June 30, 2000 | 10.1 to Pinnacle West’s March 31, 2002 Form 10-Q Report, File No. 1-8962 | 5-15-02 | ||||
10.1.2f | Pinnacle West APS | Amendment No. 6 to the Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of March 18, 2002 | 10.3 to Pinnacle West’s March 31, 2002 Form 10-Q Report, File No. 1-8962 | 5-15-02 | ||||
10.1.2g | Pinnacle West APS | Amendment No. 7 to the Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of December 19, 2003 | 10.4 to Pinnacle West’s 2003 Form 10-K Report, File No. 1-8962 | 3-15-04 | ||||
10.1.2h | Pinnacle West APS | Amendment No. 8 to the Amended and Restated Decommissioning Trust Agreement (PVNGS Unit 2), dated as of April 1, 2007 | 10.1.2h to Pinnacle West’s 2007 Form 10-K Report, File No. 1-8962 | 2-27-08 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.2.1b | Pinnacle West APS | Arizona Public Service Company Deferred Compensation Plan, as restated, effective January 1, 1984, and the second and third amendments thereto, dated December 22, 1986, and December 23, 1987 respectively | 10.4 to APS’s 1988 Form 10-K Report, File No. 1-4473 | 3-8-89 | ||||
10.2.1ab | Pinnacle West APS | Third Amendment to the Arizona Public Service Company Deferred Compensation Plan, effective as of January 1, 1993 | 10.3A to APS’s 1993 Form 10-K Report, File No. 1-4473 | 3-30-94 | ||||
10.2.1bb | Pinnacle West APS | Fourth Amendment to the Arizona Public Service Company Deferred Compensation Plan effective as of May 1, 1993 | 10.2 to APS’s September 30, 1994 Form 10-Q Report, File No. 1-4473 | 11-10-94 | ||||
10.2.1cb | Pinnacle West APS | Fifth Amendment to the Arizona Public Service Company Deferred Compensation Plan effective January 1, 1997 | 10.3A to APS’s 1996 Form 10-K Report, File No. 1-4473 | 3-28-97 | ||||
10.2.1db | Pinnacle West APS | Sixth Amendment to the Arizona Public Service Company Deferred Compensation Plan effective January 1, 2001 | 10.8A to Pinnacle West’s 2000 Form 10-K Report, File No. 1-8962 | 3-14-01 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.2.2b | Pinnacle West APS | Arizona Public Service Company Directors’ Deferred Compensation Plan, as restated, effective January 1, 1986 | 10.1 to APS’s June 30, 1986 Form 10-Q Report, File No. 1-4473 | 8-13-86 | ||||
10.2.2ab | Pinnacle West APS | Second Amendment to the Arizona Public Service Company Directors’ Deferred Compensation Plan, effective as of January 1, 1993 | 10.2A to APS’s 1993 Form 10-K Report, File No. 1-4473 | 3-30-94 | ||||
10.2.2bb | Pinnacle West APS | Third Amendment to the Arizona Public Service Company Directors’ Deferred Compensation Plan, effective as of May 1, 1993 | 10.1 to APS’s September 30, 1994 Form 10-Q Report, File No. 1-4473 | 11-10-94 | ||||
10.2.2cb | Pinnacle West APS | Fourth Amendment to the Arizona Public Service Company Directors Deferred Compensation Plan, effective as of January 1, 1999 | 10.8A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 | ||||
10.2.3b | Pinnacle West APS | Trust for the Pinnacle West Capital Corporation, Arizona Public Service Company and SunCor Development Company Deferred Compensation Plans dated August 1, 1996 | 10.14A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.2.3ab | Pinnacle West APS | First Amendment dated December 7, 1999 to the Trust for the Pinnacle West Capital Corporation, Arizona Public Service Company and SunCor Development Company Deferred Compensation Plans | 10.15A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 | ||||
10.2.4b | Pinnacle West APS | Pinnacle West Capital Corporation, Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company Deferred Compensation Plan as amended and restated effective January 1, 1996 | 10.10A to APS’s 1995 Form 10-K Report, File No. 1-4473 | 3-29-96 | ||||
10.2.4ab | Pinnacle West APS | First Amendment effective as of January 1, 1999, to the Pinnacle West Capital Corporation, Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company Deferred Compensation Plan | 10.7A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.2.4bb | Pinnacle West APS | Second Amendment effective January 1, 2000 to the Pinnacle West Capital Corporation, Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company Deferred Compensation Plan | 10.10A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 | ||||
10.2.4cb | Pinnacle West APS | Third Amendment to the Pinnacle West Capital Corporation, Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company Deferred Compensation Plan, effective as of January 1, 2002 | 10.3 to Pinnacle West’s March 31, 2003 Form 10-Q Report, File No. 1-8962 | 5-15-03 | ||||
10.2.4db | Pinnacle West APS | Fourth Amendment to the Pinnacle West Capital Corporation, Arizona Public Service Company, SunCor Development Company and El Dorado Investment Company Deferred Compensation Plan, effective January 1, 2003 | 10.64 to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 | ||||
10.2.5b | Pinnacle West APS | Schedules of William J. Post and Jack E. Davis to Arizona Public Service Company Deferred Compensation Plan, as amended | 10.3A to Pinnacle West 2002 Form 10-K Report, File No. 1-8962 | 3-31-03 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.2.6b | Pinnacle West APS | Deferred Compensation Plan of 2005 for Employees of Pinnacle West Capital Corporation and Affiliates | 10.2.6 to Pinnacle West/APS 2008 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-20-09 | ||||
10.2.6ab | Pinnacle West APS | First Amendment to the Deferred Compensation Plan of 2005 for Employees of Pinnacle West Capital Corporation and Affiliates | 10.2.6a to Pinnacle West/APS 2009 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-19-10 | ||||
10.3.1b | Pinnacle West APS | Pinnacle West Capital Corporation Supplement Excess Benefit Retirement Plan, amended and restated as of January 1, 2003 | 10.7A to Pinnacle West’s 2003 Form 10-K Report, File No. 1-8962 | 3-15-04 | ||||
10.3.1ab | Pinnacle West APS | Pinnacle West Capital Corporation Supplemental Excess Benefit Retirement Plan, as amended and restated, dated December 18, 2003 | 10.48b to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 | ||||
10.3.2b | Pinnacle West APS | Pinnacle West Capital Corporation Supplemental Excess Benefit Retirement Plan of 2005 | 10.3.2 to Pinnacle West/APS 2008 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-20-09 | ||||
10.4.1b | Pinnacle West APS | Letter Agreement dated December 21, 1993, between APS and William L. Stewart | 10.6A to APS’s 1994 Form 10-K Report, File No. 1-4473 | 3-30-95 | ||||
10.4.2b | Pinnacle West APS | Letter Agreement dated August 16, 1996 between APS and William L. Stewart | 10.8 to APS’s 1996 Form 10-K Report, File No. 1-4473 | 3-28-97 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.4.3b | Pinnacle West APS | Letter Agreement dated October 3, 1997 between APS and William L. Stewart | 10.2 to APS’s September 30, 1997 Form 10-Q Report, File No. 1-4473 | 11-12-97 | ||||
10.4.4b | Pinnacle West APS | Letter Agreement dated December 13, 1999 between APS and William L. Stewart | 10.9A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 | ||||
10.4.4ab | Pinnacle West APS | Amendment to Letter Agreement, effective as of January 1, 2002, between APS and William L. Stewart | 10.1 to Pinnacle West’s June 30, 2002 Form 10-Q Report, File No. 1-8962 | 8-13-02 | ||||
10.4.5b | Pinnacle West APS | Letter Agreement dated June 28, 2001 between Pinnacle West Capital Corporation and Steve Wheeler | 10.4A to Pinnacle West’s 2002 Form 10-K Report, File No. 1-8962 | 3-31-03 | ||||
10.4.6b | APS | Letter Agreement dated December 20, 2006 between APS and Randall K. Edington | 10.78 to Pinnacle West/APS 2006 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-28-07 | ||||
10.4.7b | APS | Letter Agreement dated July 22, 2008 between APS and Randall K. Edington | 10.3 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File No. 1-4473 | 8-07-08 | ||||
10.4.8b | Pinnacle West APS | Letter Agreement dated June 17, 2008 between Pinnacle West/APS and James R. Hatfield | 10.1 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 8-07-08 | ||||
10.4.9b | APS | Description of 2008 Palo Verde Specific Compensation Opportunity for Randall K. Edington | 10.7 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File No. 1-4473 | 8-07-08 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.4.10b | APS | Supplemental Agreement dated December 26, 2008 between APS and Randall K. Edington | 10.4.10 to Pinnacle West/APS 2008 Form 10-K Report, File No. 1-4473 | 2-20-09 | ||||
10.4.11 b | APS | Description of 2009 Palo Verde Specific Compensation Opportunity for Randall K. Edington | 10.2 to Pinnacle West/APS March 31, 2009 Form 10-Q Report, File No. 1-4473 | 5-5-09 | ||||
10.4.12 b | Pinnacle West APS | Career Recognition Award Agreement dated April 14, 2009 between Pinnacle West Capital Corporation and William J. Post | 10.1 to Pinnacle West/APS March 31, 2009 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-5-09 | ||||
10.4.13b | APS | Description of 2010 Palo Verde Specific Compensation Opportunity for Randall K. Edington | 10.4.13 to Pinnacle West/APS 2009 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-19-10 | ||||
10.4.14 b | Pinnacle West | Letter Agreement dated May 21, 2009, between Pinnacle West Capital Corporation and David P. Falck | 10.4 to Pinnacle West/APS March 31, 2010 Form 10-Q Report, File No. 1-8962 | 5-6-10 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.5.1bd | Pinnacle West APS | Key Executive Employment and Severance Agreement between Pinnacle West and certain executive officers of Pinnacle West and its subsidiaries | 10.77 to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 | ||||
10.5.1abd | Pinnacle West APS | Form of Amended and Restated Key Executive Employment and Severance Agreement between Pinnacle West and certain officers of Pinnacle West and its subsidiaries | 10.4 to Pinnacle West/APS September 30, 2007 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 11-6-07 | ||||
10.5.2bd | Pinnacle West APS | Form of Key Executive Employment and Severance Agreement between Pinnacle West and certain officers of Pinnacle West and its subsidiaries | 10.3 to Pinnacle West/APS September 30, 2007 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 11-6-07 | ||||
10.5.3bd | Pinnacle West APS | Form of Key Executive Employment and Severance Agreement between Pinnacle West and certain officers of Pinnacle West and its subsidiaries | 10.5.3 to Pinnacle West/APS 2009 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-19-10 | ||||
10.6.1b | Pinnacle West APS | Pinnacle West Capital Corporation 1994 Long- Term Incentive Plan, effective as of March 23, 1994 | Appendix A to the Proxy Statement for the Plan Report for Pinnacle West’s 1994 Annual Meeting of Shareholders, File No. 1-8962 | 4-15-94 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.6.1ab | Pinnacle West APS | First Amendment dated December 7, 1999 to the Pinnacle West Capital Corporation 1994 Long-Term Incentive Plan | 10.12A to Pinnacle West’s 1999 Form 10-K Report, File No. 1-8962 | 3-30-00 | ||||
10.6.2b | Pinnacle West APS | Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.5A to Pinnacle West’s 2002 Form 10-K Report | 3-31-03 | ||||
10.6.2abd | Pinnacle West APS | Performance Share Agreement under the Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.1 to Pinnacle West/APS December 9, 2005 Form 8-K Report, File Nos. 1-8962 and 1-4473 | 12-15-05 | ||||
10.6.2bbd | Pinnacle West APS | Performance Share Agreement under the Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.1 to Pinnacle West/APS December 31, 2005 Form 8-K Report, File Nos. 1-8962 and 1-4473 | 2-1-06 | ||||
10.6.2cd | Pinnacle West APS | Performance Accelerated Stock Option Agreement under Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.98 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 | ||||
10.6.2dbd | Pinnacle West APS | Stock Ownership Incentive Agreement under Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.99 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 | ||||
10.6.2ebd | Pinnacle West APS | Performance Share Agreement under the Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan | 10.91 to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.6.2fbd | Pinnacle West APS | Performance Share Agreement under the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan | 10.3 to Pinnacle West/APS March 31, 2009 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-5-09 | ||||
10.6.2gbd | Pinnacle West | Form of Performance Share Agreement under the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan | 10.1 to Pinnacle West/APS June 30, 2010 Form 10-Q Report, File No. 1-8962 | 8-3-10 | ||||
10.6.2hbd | Pinnacle West | Form of Restricted Stock Unit Agreement under the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan | 10.2 to Pinnacle West/APS June 30, 2010 Form 10-Q Report, File No. 1-8962 | 8-3-10 | ||||
10.6.3b | Pinnacle West | Pinnacle West Capital Corporation 2000 Director Equity Plan | 99.1 to Pinnacle West’s Registration Statement on Form S-8 (No. 333-40796), File No. 1-8962) | 7-3-00 | ||||
10.6.4b | Pinnacle West | Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan | Appendix B to the Proxy Statement for Pinnacle West’s 2007 Annual Meeting of Shareholders, File No. 1-8962 | 4-20-07 | ||||
10.6.4ab | Pinnacle West | First Amendment to the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan | 10.2 to Pinnacle West/APS April 18, 2007 Form 8-K Report, File No. 1-8962 | 4-20-07 | ||||
10.6.4bb | Pinnacle West | Description of Annual Stock Grants to Non-Employee Directors | 10.1 to Pinnacle West/APS September 30, 2007 Form 10-Q Report, File No. 1-8962 | 11-6-07 | ||||
10.6.4cb | Pinnacle West | Description of Stock Grant to W. Douglas Parker | 10.2 to Pinnacle West/APS September 30, 2007 Form 10-Q Report, File No. 1-8962 | 11-6-07 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.6.4db | Pinnacle West | Description of Annual Stock Grants to Non-Employee Directors | 10.2 to Pinnacle West/APS June 30, 2008 Form 10-Q Report, File No. 1-8962 | 8-07-08 | ||||
10.6.5bd | Pinnacle West APS | Summary of 2011 CEO Variable Incentive Plan and Officer Variable Incentive Plan | ||||||
10.7.1 | Pinnacle West APS | Indenture of Lease with Navajo Tribe of Indians, Four Corners Plant | 5.01 to APS’s Form S-7 Registration Statement, File No. 2-59644 | 9-1-77 | ||||
10.7.1a | Pinnacle West APS | Supplemental and Additional Indenture of Lease, including amendments and supplements to original lease with Navajo Tribe of Indians, Four Corners Plant | 5.02 to APS’s Form S-7 Registration Statement, File No. 2-59644 | 9-1-77 | ||||
10.7.1b | Pinnacle West APS | Amendment and Supplement No. 1 to Supplemental and Additional Indenture of Lease Four Corners, dated April 25, 1985 | 10.36 to Pinnacle West’s Registration Statement on Form 8-B Report, File No. 1-8962 | 7-25-85 | ||||
10.7.2 | Pinnacle West APS | Application and Grant of multi-party rights-of-way and easements, Four Corners Plant Site | 5.04 to APS’s Form S-7 Registration Statement, File No. 2-59644 | 9-1-77 | ||||
10.7.2a | Pinnacle West APS | Application and Amendment No. 1 to Grant of multi-party rights-of-way and easements, Four Corners Power Plant Site dated April 25, 1985 | 10.37 to Pinnacle West’s Registration Statement on Form 8-B, File No. 1-8962 | 7-25-85 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.7.3 | Pinnacle West APS | Application and Grant of Arizona Public Service Company rights- of-way and easements, Four Corners Plant Site | 5.05 to APS’s Form S-7 Registration Statement, File No. 2-59644 | 9-1-77 | ||||
10.7.3a | Pinnacle West APS | Application and Amendment No. 1 to Grant of Arizona Public Service Company rights-of-way and easements, Four Corners Power Plant Site dated April 25, 1985 | 10.38 to Pinnacle West’s Registration Statement on Form 8-B, File No. 1-8962 | 7-25-85 | ||||
10.7.4 | Pinnacle West APS | Four Corners Project Co-Tenancy Agreement Amendment No. 6 | 10.7 to Pinnacle West’s 2000 Form 10-K Report, File No. 1-8962 | 3-14-01 | ||||
10.8.1 | Pinnacle West APS | Indenture of Lease, Navajo Units 1, 2, and 3 | 5(g) to APS’s Form S-7 Registration Statement, File No. 2-36505 | 3-23-70 | ||||
10.8.2 | Pinnacle West APS | Application of Grant of rights-of-way and easements, Navajo Plant | 5(h) to APS Form S-7 Registration Statement, File No. 2-36505 | 3-23-70 | ||||
10.8.3 | Pinnacle West APS | Water Service Contract Assignment with the United States Department of Interior, Bureau of Reclamation, Navajo Plant | 5(l) to APS’s Form S-7 Registration Statement, File No. 2-394442 | 3-16-71 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.8.4 | Pinnacle West APS | Navajo Project Co-Tenancy Agreement dated as of March 23, 1976, and Supplement No. 1 thereto dated as of October 18, 1976, Amendment No. 1 dated as of July 5, 1988, and Amendment No. 2 dated as of June 14, 1996; Amendment No. 3 dated as of February 11, 1997; Amendment No. 4 dated as of January 21, 1997; Amendment No. 5 dated as of January 23, 1998; Amendment No. 6 dated as of July 31, 1998 | 10.107 to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 | ||||
10.8.5 | Pinnacle West APS | Navajo Project Participation Agreement dated as of September 30, 1969, and Amendment and Supplement No. 1 dated as of January 16, 1970, and Coordinating Committee Agreement No. 1 dated as of September 30, 1971 | 10.108 to Pinnacle West/APS 2005 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-13-06 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.9.1 | Pinnacle West APS | Arizona Nuclear Power Project Participation Agreement, dated August 23, 1973, among APS Salt River Project Agricultural Improvement and Power District, Southern California Edison Company, Public Service Company of New Mexico, El Paso Electric Company, Southern California Public Power Authority, and Department of Water and Power of the City of Los Angeles, and amendments 1-12 thereto | 10. 1 to APS’s 1988 Form 10-K Report, File No. 1-4473 | 3-8-89 | ||||
10.9.1a | Pinnacle West APS | Amendment No. 13, dated as of April 22, 1991, to Arizona Nuclear Power Project Participation Agreement, dated August 23, 1973, among APS, Salt River Project Agricultural Improvement and Power District, Southern California Edison Company, Public Service Company of New Mexico, El Paso Electric Company, Southern California Public Power Authority, and Department of Water and Power of the City of Los Angeles | 10.1 to APS’s March 31, 1991 Form 10-Q Report, File No. 1-4473 | 5-15-91 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.9.1b | Pinnacle West APS | Amendment No. 14 to Arizona Nuclear Power Project Participation Agreement, dated August 23, 1973, among APS, Salt River Project Agricultural Improvement and Power District, Southern California Edison Company, Public Service Company of New Mexico, El Paso Electric Company, Southern California Public Power Authority, and Department of Water and Power of the City of Los Angeles | 99.1 to Pinnacle West’s June 30, 2000 Form 10-Q Report, File No. 1-8962 | 8-14-00 | ||||
10.9.1c | Pinnacle West APS | Amendment No. 15, dated November 29, 2010, to Arizona Nuclear Power Project Participation Agreement, dated August 23, 1973, among APS, Salt River Project Agricultural Improvement and Power District, Southern California Edison Company, Public Service Company of New Mexico, El Paso Electric Company, Southern California Public Power Authority, and Department of Water and Power of the City of Los Angeles |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.10.1 | Pinnacle West APS | Asset Purchase and Power Exchange Agreement dated September 21, 1990 between APS and PacifiCorp, as amended as of October 11, 1990 and as of July 18, 1991 | 10.1 to APS’s June 30, 1991 Form 10-Q Report, File No. 1-4473 | 8-8-91 | ||||
10.10.2 | Pinnacle West APS | Long-Term Power Transaction Agreement dated September 21, 1990 between APS and PacifiCorp, as amended as of October 11, 1990, and as of July 8, 1991 | 10.2 to APS’s June 30, 1991 Form 10-Q Report, File No. 1-4473 | 8-8-91 | ||||
10.10.2a | Pinnacle West APS | Amendment No. 1 dated April 5, 1995 to the Long-Term Power Transaction Agreement and Asset Purchase and Power Exchange Agreement between PacifiCorp and APS | 10.3 to APS’s 1995 Form 10-K Report, File No. 1-4473 | 3-29-96 | ||||
10.10.3 | Pinnacle West APS | Restated Transmission Agreement between PacifiCorp and APS dated April 5, 1995 | 10.4 to APS’s 1995 Form 10-K Report, File No. 1-4473 | 3-29-96 | ||||
10.10.4 | Pinnacle West APS | Contract among PacifiCorp, APS and United States Department of Energy Western Area Power Administration, Salt Lake Area Integrated Projects for Firm Transmission Service dated May 5, 1995 | 10.5 to APS’s 1995 Form 10-K Report, File No. 1-4473 | 3-29-96 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.10.5 | Pinnacle West APS | Reciprocal Transmission Service Agreement between APS and PacifiCorp dated as of March 2, 1994 | 10.6 to APS’s 1995 Form 10-K Report, File No. 1-4473 | 3-29-96 | ||||
10.11.1 | Pinnacle West APS | Three-Year Credit Agreement dated as of February 12, 2010 between APS, as Borrower, Wells Fargo Bank, National Association, as Agent, and the lenders and other parties thereto | 10.11.3 to Pinnacle West/APS 2009 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-19-10 | ||||
10.11.2 | Pinnacle West | $200,000,000 Senior Notes Uncommitted Master Shelf Agreement dated as of February 28, 2006 | 10.96 to Pinnacle West 2005 Form 10-K Report, File No. 1-8962 | 3-13-06 | ||||
10.11.3 | Pinnacle West | Three-Year Credit Agreement dated as of February 12, 2010 among Pinnacle West Capital Corporation, as Borrower, Bank of America, N.A, as Agent, and the lenders and other parties thereto | 10.11.5 to Pinnacle West/APS 2009 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 2-19-10 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.11.4 | APS | $500,000,000 Four-Year Credit Agreement dated as of February 14, 2011 among Arizona Public Service Company as Borrower, Barclays Bank PLC, as Agent and Issuing Bank, Credit Suisse Securities (USA) LLC, as Syndication Agent, Credit Suisse AG, Cayman Islands Branch, as Issuing Bank, Bank of America, N.A. and Wells Fargo Bank, National Association, as Co-Documentation Agents and the other parties thereto | ||||||
10.11.5 | Pinnacle West APS | Reimbursement Agreement among APS, the Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Bank, dated as of April 16, 2010 | 10.2 to Pinnacle West/APS March 31, 2010 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-6-10 | ||||
10.11.6 | Pinnacle West APS | Reimbursement Agreement among APS, the Banks party thereto, and JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Bank, dated as of April 16, 2010 | 10.3 to Pinnacle West/APS March 31, 2010 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-6-10 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.12.1c | Pinnacle West APS | Facility Lease, dated as of August 1, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its capacity as Owner Trustee, as Lessor, and APS, as Lessee | 4.3 to APS’s Form 18 Registration Statement, File No. 33-9480 | 10-24-86 | ||||
10.12.1ac | Pinnacle West APS | Amendment No. 1, dated as of November 1, 1986, to Facility Lease, dated as of August 1, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its capacity as Owner Trustee, as Lessor, and APS, as Lessee | 10.5 to APS’s September 30, 1986 Form 10-Q Report by means of Amendment No. 1 on December 3, 1986 Form 8, File No. 1-4473 | 12-4-86 | ||||
10.12.1bc | Pinnacle West APS | Amendment No. 2 dated as of June 1, 1987 to Facility Lease dated as of August 1, 1986 between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Lessor, and APS, as Lessee | 10.3 to APS’s 1988 Form 10-K Report, File No. 1-4473 | 3-8-89 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.12.1cc | Pinnacle West APS | Amendment No. 3, dated as of March 17, 1993, to Facility Lease, dated as of August 1, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Lessor, and APS, as Lessee | 10.3 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
10.12.2 | Pinnacle West APS | Facility Lease, dated as of December 15, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its capacity as Owner Trustee, as Lessor, and APS, as Lessee | 10.1 to APS’s November 18, 1986 Form 8-K Report, File No. 1-4473 | 1-20-87 | ||||
10.12.2a | Pinnacle West APS | Amendment No. 1, dated as of August 1, 1987, to Facility Lease, dated as of December 15, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Lessor, and APS, as Lessee | 4.13 to APS’s Form 18 Registration Statement No. 33-9480 by means of August 1, 1987 Form 8-K Report, File No. 1-4473 | 8-24-87 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.12.2b | Pinnacle West APS | Amendment No. 2, dated as of March 17, 1993, to Facility Lease, dated as of December 15, 1986, between U.S. Bank National Association, successor to State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Lessor, and APS, as Lessee | 10.4 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
10.13.1 | Pinnacle West APS | Agreement between Pinnacle West Energy Corporation and Arizona Public Service Company for Transportation and Treatment of Effluent by and between Pinnacle West Energy Corporation and APS dated as of the 10th day of April, 2001 | 10.102 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 | ||||
10.13.2 | Pinnacle West APS | Agreement for the Transfer and Use of Wastewater and Effluent by and between APS, SRP and PWE dated June 1, 2001 | 10.103 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 | ||||
10.13.3 | Pinnacle West APS | Agreement for the Sale and Purchase of Wastewater Effluent dated November 13, 2000, by and between the City of Tolleson, Arizona, APS and SRP | 10.104 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.13.4 | Pinnacle West APS | Operating Agreement for the Co-Ownership of Wastewater Effluent dated November 16, 2000 by and between APS and SRP | 10.105 to Pinnacle West/APS 2004 Form 10-K Report, File Nos. 1-8962 and 1-4473 | 3-16-05 | ||||
10.13.5 | Pinnacle West APS | Municipal Effluent Purchase and Sale Agreement dated April 29, 2010, by and between City of Phoenix, City of Mesa, City of Tempe, City of Scottsdale, City of Glendale, APS and Salt River Project Agricultural Improvement and Power District | 10.1 to Pinnacle West/APS March 31, 2010 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 5-6-10 | ||||
10.14.1 | Pinnacle West APS | Contract, dated July 21, 1984, with DOE providing for the disposal of nuclear fuel and/or high-level radioactive waste, ANPP | 10.31 to Pinnacle West’s Form S-14 Registration Statement, File No. 2-96386 | 3-13-85 | ||||
10.15.1 | Pinnacle West APS | Territorial Agreement between APS and Salt River Project | 10.1 to APS’s March 31, 1998 Form 10-Q Report, File No. 1-4473 | 5-15-98 | ||||
10.15.2 | Pinnacle West APS | Power Coordination Agreement between APS and Salt River Project | 10.2 to APS’s March 31, 1998 Form 10-Q Report, File No. 1-4473 | 5-15-98 | ||||
10.15.3 | Pinnacle West APS | Memorandum of Agreement between APS and Salt River Project | 10.3 to APS’s March 31, 1998 Form 10-Q Report, File No. 1-4473 | 5-15-98 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
10.15.3a | Pinnacle West APS | Addendum to Memorandum of Agreement between APS and Salt River Project dated as of May 19, 1998 | 10.2 to APS’s May 19, 1998 Form 8-K Report, File No. 1-4473 | 6-26-98 | ||||
10.16 | Pinnacle West APS | Purchase and Sale Agreement dated November 8, 2010 by and between Southern California Edison Company and APS | 10.1 to Pinnacle West/APS November 8, 2010 Form 8-K Report, File Nos. 1-8962 and 1-4473 | 11-8-10 | ||||
12.1 | Pinnacle West | Ratio of Earnings to Fixed Charges | ||||||
12.2 | APS | Ratio of Earnings to Fixed Charges | ||||||
12.3 | Pinnacle West | Ratio of Earnings to Combined Fixed Charges and Preferred Stock Dividend Requirements | ||||||
21.1 | Pinnacle West | Subsidiaries of Pinnacle West | ||||||
23.1 | Pinnacle West | Consent of Deloitte & Touche LLP | ||||||
23.2 | APS | Consent of Deloitte & Touche LLP | ||||||
31.1 | Pinnacle West | Certificate of Donald E. Brandt, Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
31.2 | Pinnacle West | Certificate of James R. Hatfield, Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended | ||||||
31.3 | APS | Certificate of Donald E. Brandt, Chief Executive Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended | ||||||
31.4 | APS | Certificate of James R. Hatfield, Chief Financial Officer, pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended | ||||||
32.1 | Pinnacle West | Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||
32.2 | APS | Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.1 | Pinnacle West APS | Collateral Trust Indenture among PVNGS II Funding Corp., Inc., APS and Chemical Bank, as Trustee | 4.2 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.1a | Pinnacle West APS | Supplemental Indenture to Collateral Trust Indenture among PVNGS II Funding Corp., Inc., APS and Chemical Bank, as Trustee | 4.3 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.2c | Pinnacle West APS | Participation Agreement, dated as of August 1, 1986, among PVNGS Funding Corp., Inc., Bank of America National Trust and Savings Association, State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its individual capacity and as Owner Trustee, Chemical Bank, in its individual capacity and as Indenture Trustee, APS, and the Equity Participant named therein | 28.1 to APS’s September 30, 1992 Form 10-Q Report, File No. 1-4473 | 11-9-92 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.2ac | Pinnacle West APS | Amendment No. 1 dated as of November 1, 1986, to Participation Agreement, dated as of August 1, 1986, among PVNGS Funding Corp., Inc., Bank of America National Trust and Savings Association, State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its individual capacity and as Owner Trustee, Chemical Bank, in its individual capacity and as Indenture Trustee, APS, and the Equity Participant named therein | 10.8 to APS’s September 30, 1986 Form 10-Q Report by means of Amendment No. 1, on December 3, 1986 Form 8, File No. 1-4473 | 12-4-86 | ||||
99.2bc | Pinnacle West APS | Amendment No. 2, dated as of March 17, 1993, to Participation Agreement, dated as of August 1, 1986, among PVNGS Funding Corp., Inc., PVNGS II Funding Corp., Inc., State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its individual capacity and as Owner Trustee, Chemical Bank, in its individual capacity and as Indenture Trustee, APS, and the Equity Participant named therein | 28.4 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.3c | Pinnacle West APS | Trust Indenture, Mortgage, Security Agreement and Assignment of Facility Lease, dated as of August 1, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee | 4.5 to APS’s Form 18 Registration Statement, File No. 33-9480 | 10-24-86 | ||||
99.3ac | Pinnacle West APS | Supplemental Indenture No. 1, dated as of November 1, 1986 to Trust Indenture, Mortgage, Security Agreement and Assignment of Facility Lease, dated as of August 1, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee | 10.6 to APS’s September 30, 1986 Form 10-Q Report by means of Amendment No. 1 on December 3, 1986 Form 8, File No. 1-4473 | 12-4-86 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.3bc | Pinnacle West APS | Supplemental Indenture No. 2 to Trust Indenture, Mortgage, Security Agreement and Assignment of Facility Lease, dated as of August 1, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Lease Indenture Trustee | 4.4 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.4c | Pinnacle West APS | Assignment, Assumption and Further Agreement, dated as of August 1, 1986, between APS and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee | 28.3 to APS’s Form 18 Registration Statement, File No. 33-9480 | 10-24-86 | ||||
99.4ac | Pinnacle West APS | Amendment No. 1, dated as of November 1, 1986, to Assignment, Assumption and Further Agreement, dated as of August 1, 1986, between APS and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee | 10.10 to APS’s September 30, 1986 Form 10-Q Report by means of Amendment No. l on December 3, 1986 Form 8, File No. 1-4473 | 12-4-86 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.4bc | Pinnacle West APS | Amendment No. 2, dated as of March 17, 1993, to Assignment, Assumption and Further Agreement, dated as of August 1, 1986, between APS and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee | 28.6 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.5 | Pinnacle West APS | Participation Agreement, dated as of December 15, 1986, among PVNGS Funding Report Corp., Inc., State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its individual capacity and as Owner Trustee, Chemical Bank, in its individual capacity and as Indenture Trustee under a Trust Indenture, APS, and the Owner Participant named therein | 28.2 to APS’s September 30, 1992 Form 10-Q Report, File No. 1-4473 | 11-9-92 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.5a | Pinnacle West APS | Amendment No. 1, dated as of August 1, 1987, to Participation Agreement, dated as of December 15, 1986, among PVNGS Funding Corp., Inc. as Funding Corporation, State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, Chemical Bank, as Indenture Trustee, APS, and the Owner Participant named therein | 28.20 to APS’s Form 18 Registration Statement No. 33-9480 by means of a November 6, 1986 Form 8-K Report, File No. 1-4473 | 8-10-87 | ||||
99.5b | Pinnacle West APS | Amendment No. 2, dated as of March 17, 1993, to Participation Agreement, dated as of December 15, 1986, among PVNGS Funding Corp., Inc., PVNGS II Funding Corp., Inc., State Street Bank and Trust Company, as successor to The First National Bank of Boston, in its individual capacity and as Owner Trustee, Chemical Bank, in its individual capacity and as Indenture Trustee, APS, and the Owner Participant named therein | 28.5 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.6 | Pinnacle West APS | Trust Indenture, Mortgage Security Agreement and Assignment of Facility Lease, dated as of December 15, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee | 10.2 to APS’s November 18, 1986 Form 10-K Report, File No. 1-4473 | 1-20-87 | ||||
99.6a | Pinnacle West APS | Supplemental Indenture No. 1, dated as of August 1, 1987, to Trust Indenture, Mortgage, Security Agreement and Assignment of Facility Lease, dated as of December 15, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Indenture Trustee | 4.13 to APS’s Form 18 Registration Statement No. 33-9480 by means of August 1, 1987 Form 8-K Report, File No. 1-4473 | 8-24-87 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.6b | Pinnacle West APS | Supplemental Indenture No. 2 to Trust Indenture Mortgage, Security Agreement and Assignment of Facility Lease, dated as of December 15, 1986, between State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee, and Chemical Bank, as Lease Indenture Trustee | 4.5 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.7 | Pinnacle West APS | Assignment, Assumption and Further Agreement, dated as of December 15, 1986, between APS and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee | 10.5 to APS’s November 18, 1986 Form 8-K Report, File No. 1-4473 | 1-20-87 | ||||
99.7a | Pinnacle West APS | Amendment No. 1, dated as of March 17, 1993, to Assignment, Assumption and Further Agreement, dated as of December 15, 1986, between APS and State Street Bank and Trust Company, as successor to The First National Bank of Boston, as Owner Trustee | 28.7 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 | ||||
99.8c | Pinnacle West APS | Indemnity Agreement dated as of March 17, 1993 by APS | 28.3 to APS’s 1992 Form 10-K Report, File No. 1-4473 | 3-30-93 |
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Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
99.9 | Pinnacle West APS | Extension Letter, dated as of August 13, 1987, from the signatories of the Participation Agreement to Chemical Bank | 28.20 to APS’s Form 18 Registration Statement No. 33-9480 by means of a November 6, 1986 Form 8-K Report, File No. 1-4473 | 8-10-87 | ||||
99.10 | Pinnacle West APS | Arizona Corporation Commission Order, Decision No. 61969, dated September 29, 1999, including the Retail Electric Competition Rules | 10.2 to APS’s September 30, 1999 Form 10-Q Report, File No. 1-4473 | 11-15-99 | ||||
99.11 | Pinnacle West | Purchase Agreement by and among Pinnacle West Energy Corporation and GenWest, L.L.C. and Nevada Power Company, dated June 21, 2005 | 99.5 to Pinnacle West/APS June 30, 2005 Form 10-Q Report, File Nos. 1-8962 and 1-4473 | 8-9-05 | ||||
101.INS | Pinnacle West APS | XBRL Instance Document | ||||||
101.SCH | Pinnacle West APS | XBRL Taxonomy Extension Schema Document | ||||||
101.CAL | Pinnacle West APS | XBRL Taxonomy Extension Calculation Linkbase Document | ||||||
101.LAB | Pinnacle West APS | XBRL Taxonomy Extension Label Linkbase Document |
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�� | ||||||||
Exhibit | Date | |||||||
No. | Registrant(s) | Description | Previously Filed as Exhibit:a | Filed | ||||
101.PRE | Pinnacle West APS | XBRL Taxonomy Extension Presentation Linkbase Document | ||||||
101.DEF | Pinnacle West APS | XBRL Taxonomy Definition Linkbase Document |
a | Reports filed under File No. 1-4473 and 1-8962 were filed in the office of the Securities and Exchange Commission located in Washington, D.C. | |
b | Management contract or compensatory plan or arrangement to be filed as an exhibit pursuant to Item 15(b) of Form 10-K. | |
c | An additional document, substantially identical in all material respects to this Exhibit, has been entered into, relating to an additional Equity Participant. Although such additional document may differ in other respects (such as dollar amounts, percentages, tax indemnity matters, and dates of execution), there are no material details in which such document differs from this Exhibit. | |
d | Additional agreements, substantially identical in all material respects to this Exhibit have been entered into with additional persons. Although such additional documents may differ in other respects (such as dollar amounts and dates of execution), there are no material details in which such agreements differ from this Exhibit. |
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PINNACLE WEST CAPITAL CORPORATION (Registrant) | ||||
Date: February 18, 2011 | /s/ Donald E. Brandt | |||
(Donald E. Brandt, Chairman of | ||||
the Board of Directors, President and Chief Executive Officer) |
Signature | Title | Date | ||
/s/ Donald E. Brandt | Principal Executive Officer and Director | February 18, 2011 | ||
(Donald E. Brandt, Chairman | ||||
of the Board of Directors, President | ||||
and Chief Executive Officer) | ||||
/s/ James R. Hatfield | Principal Financial Officer | February 18, 2011 | ||
Senior Vice President and | ||||
Chief Financial Officer) | ||||
/s/ Denise R. Danner | Principal Accounting Officer | February 18, 2011 | ||
Vice President, Controller and | ||||
Chief Accounting Officer) |
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Signature | Title | Date | ||
/s/ Edward N. Basha, Jr. | Director | February 18, 2011 | ||
/s/ Susan Clark-Johnson | Director | February 18, 2011 | ||
/s/ Denis A. Cortese | Director | February 18, 2011 | ||
/s/ Michael L. Gallagher | Director | February 18, 2011 | ||
/s/ Pamela Grant | Director | February 18, 2011 | ||
/s/ Roy A. Herberger, Jr. | Director | February 18, 2011 | ||
/s/ Dale E. Klein | Director | February 18, 2011 | ||
/s/ Humberto S. Lopez | Director | February 18, 2011 | ||
Director | February 18, 2011 | |||
/s/ Bruce J. Nordstrom | Director | February 18, 2011 | ||
/s/ W. Douglas Parker | Director | February 18, 2011 | ||
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ARIZONA PUBLIC SERVICE COMPANY (Registrant) | ||||
Date: February 18, 2011 | /s/ Donald E. Brandt | |||
(Donald E. Brandt, Chairman of | ||||
the Board of Directors and Chief Executive Officer) |
Signature | Title | Date | ||
/s/ Donald E. Brandt | Principal Executive Officer and Director | February 18, 2011 | ||
(Donald E. Brandt, Chairman | ||||
of the Board of Directors and | ||||
Chief Executive Officer) | ||||
/s/ James R. Hatfield | Principal Financial Officer | February 18, 2011 | ||
Senior Vice President and Chief | ||||
Financial Officer) | ||||
/s/ Denise R. Danner | Principal Accounting Officer | February 18, 2011 | ||
Vice President, Controller and | ||||
Chief Accounting Officer) |
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Signature | Title | Date | ||
/s/ Edward N. Basha, Jr. | Director | February 18, 2011 | ||
/s/ Susan Clark-Johnson | Director | February 18, 2011 | ||
/s/ Denis A. Cortese | Director | February 18, 2011 | ||
/s/ Michael L. Gallagher | Director | February 18, 2011 | ||
/s/ Pamela Grant | Director | February 18, 2011 | ||
/s/ Roy A. Herberger, Jr. | Director | February 18, 2011 | ||
/s/ Dale E. Klein | Director | February 18, 2011 | ||
/s/ Humberto S. Lopez | Director | February 18, 2011 | ||
Director | February 18, 2011 | |||
/s/ Bruce J. Nordstrom | Director | February 18, 2011 | ||
/s/ W. Douglas Parker | Director | February 18, 2011 | ||
222