uv3av2
 

Adopted November 9, 1939   File No. 69-306

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.

FORM U-3A-2

Statement by Holding Company
Claiming Exemption under Rule U-3A-2
from the Provisions of the
Public Utility Holding Company Act of 1935

To Be Filed Annually Prior to March 1

Pinnacle West Capital Corporation


(Name of Company)

hereby files with the Securities and Exchange Commission, pursuant to Rule 2, its statement claiming exemption as a holding company from the provisions of the Public Utility Holding Company Act of 1935, and submits the following information:

 


 

1. Name, state of organization, location and nature of business of Claimant and every subsidiary thereof, other than any exempt wholesale generator (EWG) or foreign utility company in which Claimant directly or indirectly holds an interest.

     Pinnacle West Capital Corporation (“Claimant”), having been incorporated on February 20, 1985 under the laws of the State of Arizona and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized principally to acquire and hold securities of other corporations for investment purposes. The following are the subsidiaries of the Claimant:

a. Arizona Public Service Company (“APS” or the “Company”) is engaged principally in serving electricity in the State of Arizona. Incorporated in 1920 under the laws of the State of Arizona and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, APS became a subsidiary of the Claimant pursuant to a corporate restructuring plan approved by the Company’s shareholders on April 18, 1985.

(1) AXIOM Power Solutions, Inc. (“AXIOM”) – an Arizona corporation, having been incorporated on October 29, 1996 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell security and energy management products and services. AXIOM is a wholly-owned subsidiary of APS.

(2) Bixco, Inc. (“Bixco”) – an Arizona corporation, having been incorporated on June 4, 1971 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily to conduct exploration activities for energy resources and other valuable minerals. Subsequent to the sale of its oil and natural gas properties in 1981, Bixco has been inactive. Bixco is a wholly-owned subsidiary of APS.

(3) PWENewco, Inc. (“PWENewco”) – an Arizona corporation, having been incorporated on January 30, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily to own real and personal property. PWENewco is a wholly-owned subsidiary of APS.

b. APSES Holdings, Inc. – a Delaware corporation, having been incorporated on March 24, 2003 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized as a holding company for APS Energy L.P.

(1) APS Energy L.P. – an Arizona limited partnership, having been formed on January 29, 2003 and having its principal

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executive offices at 400 North 5th Street, Phoenix, Arizona 85004 was organized to sell energy, products and services. APSES Holdings, Inc. holds a 99% interest in APS Energy L.P.

c. APS Energy Services Company, Inc. (“APSES”) – an Arizona corporation, having been incorporated on November 6, 1998 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to sell energy, products and services. APSES is a wholly-owned subsidiary of the Claimant.

(1) Northwind Phoenix LLC – a Delaware limited liability company, having been formed on December 14, 1999 and having its principal executive offices at 400 E. Van Buren, Phoenix, Arizona 85004, was organized primarily to provide district cooling services to customers in downtown Phoenix, Arizona. Northwind Phoenix LLC is a wholly-owned subsidiary of APSES.

(a) Tucson District Energy LLC – an Arizona limited liability corporation having been acquired by Northwind Phoenix LLC on May 31, 2001. Tucson District Energy LLC is a wholly-owned subsidiary of Northwind Phoenix LLC.

d. SunCor Development Company (“SunCor”) – an Arizona corporation, having been incorporated on June 30, 1965 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, is a wholly-owned subsidiary of Claimant engaged primarily in the owning, holding and development of real property.

(1) SunCor Golf, Inc. (“SunCor Golf”) – an Arizona corporation, having been incorporated on December 31, 1986 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, operates family fun parks, resorts and golf properties. SunCor Golf is a wholly-owned subsidiary of SunCor.

(a) Westworld Golf Course LLC – an Arizona limited liability company, having been formed on September 8, 1998 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to engage in golf course operations. Westworld Golf Course LLC is a wholly owned subsidiary of SunCor Golf, Inc.

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(2) Golden Heritage Homes, Inc. (“Golden Heritage Homes”) – an Arizona corporation, having been incorporated on May 14, 1986 and having its principal executive offices at 7025 East Greenway Parkway, Suite 100, Scottsdale, Arizona 85254, sells single family residential real property. Golden Heritage Homes is a wholly-owned subsidiary of SunCor.

(a) Golden Heritage Construction, Inc. (“GH Construction”) – an Arizona corporation, having been incorporated on December 30, 1993 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to serve as a general residential contractor. GH Construction became a wholly-owned subsidiary of Golden Heritage Homes, Inc. on January 1, 1996.

(b) Heritage Financial Services, LLC – an Arizona limited liability company, having been formed on August 19, 1998 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to provide mortgage services to residential home buyers. Heritage Financial Services, LLC is a wholly-owned subsidiary of Golden Heritage Homes, Inc.

(3) SCM, Inc. (“SCM”) – an Arizona corporation, having been incorporated on May 14, 1991 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to participate in real estate joint ventures and other real estate related activities. SCM is a wholly-owned subsidiary of SunCor and is currently inactive.

(4) SunCor Realty & Management Company (“SunCor Realty”) – an Arizona corporation, having been incorporated on April 1, 1994 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to participate in real estate management and other real estate related activities. SunCor Realty is a wholly-owned subsidiary of SunCor.

(5) Palm Valley Golf Club, Inc. (“Palm Valley Golf”) – an Arizona corporation, having been incorporated on January 23, 1996 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to hold title to the Palm Valley Golf Course located in Goodyear, Arizona. Palm Valley Golf is a wholly-owned subsidiary of SunCor.

(6) Rancho Viejo de Santa Fe, Inc. (“Rancho Viejo”) – a New Mexico corporation, having been incorporated on March 18, 1996

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and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, was organized to engage in real estate development in New Mexico. Rancho Viejo is a wholly-owned subsidiary of SunCor.

(a) Ranchland Utility Company (“Ranchland”) – a New Mexico corporation, having been incorporated on September 5, 1997 and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, is a waste-water utility. Ranchland is a wholly-owned subsidiary of Rancho Viejo.

(b) Rancho Viejo Village Center, LLC – a New Mexico limited liability company, having been formed on March 4, 2003 and having its principal executive offices at 1590B Pacheco Street, Santa Fe, New Mexico 87502, was organized to own and invest in real estate in New Mexico. Rancho Viejo Village Center, LLC is a wholly-owned subsidiary of Rancho Viejo.

(7) SunCor Idaho, LLC, formerly known as Spring Valley Development, LLC – an Idaho limited liability company, having been formed on July 22, 2003 and having its principal executive offices at 485 E. Riverside Drive, Suite 300, Eagle, Idaho 83616, was organized to engage in real estate development in Idaho. Spring Valley Development, LLC is a wholly-owned subsidiary of SunCor.

(8) Golf de Mexico, S.A. de C.V. (“Golf de Mexico”) – a Mexican variable capital corporation, having been incorporated on December 1, 1992 in Tijuana, Baja California, Mexico and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to operate and manage the Real del Mar Golf Course in Mexico. Golf de Mexico has been inactive since 1997.

(9) Type Two, Inc. – an Arizona corporation, having been incorporated on March 29, 1990 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to hold and lease non-irrigation water rights. SunCor holds a 30% interest in Type Two Inc.

(10) Stone Ridge- Prescott Valley LLC – an Arizona limited liability company, having been formed on January 26, 2001 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop a master-planned community with golf course located in Prescott

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Valley, Arizona. SunCor holds a 60% interest in Stone Ridge – Prescott Valley LLC.

(a) Stone Ridge Golf Course LLC – an Arizona limited liability company, having been formed on April 16, 2002 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to own and operate a golf course located in Prescott Valley, Arizona. Stone Ridge Golf Course LLC is a wholly-owned subsidiary of Stone Ridge-Prescott Valley LLC.

(11) Hayden Ferry Lakeside LLC – an Arizona limited liability company, having been formed on April 10, 2000 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a mixed-use residential, office, hotel and retail commercial development in Tempe, Arizona. Hayden Ferry Lakeside LLC is a wholly-owned subsidiary of SunCor.

(a) Lakeside Residential Communities, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. Lakeside Residential Communities, L.L.C. is a wholly-owned subsidiary of Hayden Ferry Lakeside LLC.

(i) Edgewater at Hayden Ferry Lakeside, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. Edgewater at Hayden Ferry Lakeside, L.L.C. is a wholly-owned subsidiary of Lakeside Residential Communities, L.L.C.

(ii) BV at Hayden Ferry Lakeside, L.L.C. – an Arizona limited liability company, having been formed on January 20, 2004 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a residential condominium project. BV at Hayden Ferry Lakeside, L.L.C. is a wholly-owned subsidiary of Lakeside Residential Communities, L.L.C.

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(12) Club West Golf Course LLC – an Arizona limited liability company, having been formed on August 28, 2000 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to own and operate Foothills Club West Golf Course in Phoenix, Arizona. SunCor holds a 68% interest in Club West Golf Course LLC.

(13) Scottsdale Mountain LLP – an Arizona limited liability partnership, having been formed on April 27, 1992 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell 1,389 acres in McDowell Mountain, Scottsdale, Arizona as a master-planned community. SunCor holds a 65% interest in Scottsdale Mountain LLP.

(14) SunRidge Canyon LLC – an Arizona limited liability company, having been formed on June 24, 1994 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a 50 acre golf-oriented master planned community located in Scottsdale, Arizona. SunRidge Canyon LLC is a wholly-owned subsidiary of SunCor.

(15) Sedona Golf Resort LLC – an Arizona limited liability company, having been formed on February 6, 1995 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop, manage and sell a 300-acre golf oriented master-planned community in Sedona, Arizona. SunCor holds a 50% interest in Sedona Golf Resort LLC.

(16) Kabuto/SunCor Joint Venture – an Arizona general partnership, having been formed on October 15, 1990 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and sell the village of Litchfield Greens, a residential community located in Litchfield Park, Arizona. SunCor holds a 70% interest in Kabuto/SunCor Joint Venture.

(17) Centrepoint Associates LLC – an Arizona limited liability company, having been formed on October 29, 1988 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and manage a 60 acre commercial property as a shopping center on Elliot Road in Tempe, Arizona. SunCor holds a 50% interest in Centrepoint Associates LLC.

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(18) Hidden Hills of Scottsdale LLC – an Arizona limited liability company, having been formed on October 21, 1996 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop a single family residential area consisting of 320 acres located in Scottsdale, Arizona. Hidden Hills of Scottsdale LLC is a wholly-owned subsidiary of SunCor.

(19) Talavi Associates LLC – an Arizona limited liability company, having been formed on November 20, 1997 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop 33 acres located in Glendale, Arizona as an office and light industrial complex. SunCor holds a 50% interest in Talavi Associates LLC.

(20) Coral Canyon Town Center LLC – a Utah limited liability company, having been formed on April 19, 2002 and having its principal executive offices at 80 East Rio Salado Parkway, Tempe, Arizona 85281, was organized to develop and improve office property of an anticipated two story building located in Washington, Utah. SunCor holds a 75% interest in Coral Canyon Town Center LLC.

(21) Coral Canyon HD, L.L.C. – a Utah limited liability company, having been formed on February 4, 2004 and having its principal executive offices at c/o SunCor Development Company, 2303 North Coral Canyon Boulevard, Washington, Utah 84780, was organized to acquire, own, improve, develop, market, manage, operate, lease and sell real property in Washington, Utah. SunCor holds a 50% interest in Coral Canyon HD, L.L.C.

d. El Dorado Investment Company – an Arizona corporation, having been incorporated on July 27, 1983 and having its principal executive offices at 400 North 5th Street, MS 9988, Phoenix, Arizona 85004, is a wholly-owned subsidiary of Claimant engaged primarily in the acquisition and holding of stocks and securities of other companies for investment purposes.

(1) Underground Imaging Technologies, LLC – an Arizona limited liability corporation, having been formed on April 11, 2001 and having its principal executive offices at 1210 Vermeer Road East, Pella, Iowa 50219, was organized to develop subsurface imaging applications. El Dorado holds a 50% interest in Underground Imaging Technologies, LLC.

(2) NAC Holding Inc. – a Delaware corporation, having been incorporated on August 26, 1968 and having its principal executive offices at 3930 East Jones Bridge Road, Norcross, Georgia

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30092, was organized to provide a variety of services to the nuclear industry. El Dorado holds a 99.8% interest in NAC Holding Inc.

(a) NAC International Inc. – a Delaware corporation, having been incorporated on January 3, 1994 and having its principal executive offices at 3930 East Jones Bridge Road, Norcross, Georgia 30092, was organized to provide a variety of services to the nuclear industry. NAC International Inc. is a wholly-owned subsidiary of NAC Holding Inc.

(3) Phoenix Suns Limited Partnership – an Arizona limited partnership, having been formed on July 1, 1993 and having its principal executive offices at 201 East Jefferson Street, Phoenix, Arizona 85004, was organized to own a percentage interest in the Phoenix Suns professional basketball team. El Dorado holds a 21.7% interest in the Phoenix Suns Limited Partnership.

(4) AZ PB Partnership – an Arizona partnership, having been formed on June 26, 1995 and having its principal executive offices at 401 East Jefferson Street, Phoenix, Arizona 85004, was organized to own a percentage interest in a professional baseball team. El Dorado holds a 1.7% interest in AZ PB Partnership.

(5) El Dorado Ventures III – a California general partnership, formed on May 9, 1991 and having its principal executive offices at 2884 Sand Hill Road, Suite 121, Menlo Park, California 94025, was organized to invest in emerging companies with exceptional growth potential. El Dorado holds a 24.4% interest in El Dorado Ventures III.

(6) Phoenix Downtown Theater LLC – an Arizona limited liability company, formed on February 4, 1999 and having its principal executive offices at 2400 East Arizona Biltmore Circle, Suite 1270, Phoenix Arizona 85016, was organized to own and manage a theater. El Dorado owns a 6.9% interest in Phoenix Downtown Theater LLC.

(7) Nxt Phase – a Canadian company, having its principal executive offices at 3040 East Broadway, Vancouver, British Columbia V5M 1Z4, was organized to manufacture digital and fiber optic control and measurement devices for the power industry. El Dorado owns a 2.2% interest in Nxt Phase.

e. Pinnacle West Energy Corporation (“PWEC”) – an Arizona corporation, having been incorporated on September 27, 1999 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized primarily for the development, production and sale of wholesale energy. PWEC is a wholly-owned subsidiary of the Claimant.

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(1) GenWest, LLC – a Nevada limited liability corporation, formed on March 6, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized to own, build and operate power plants and participate in other activities which are necessary or advisable to accomplish the foregoing process. GenWest, LLC is a wholly-owned subsidiary of Pinnacle West Energy.

(2) APACS Holdings LLC – an Arizona limited liability corporation, formed on August 29, 2001 and having its principal executive offices at 400 North Fifth Street, Phoenix, Arizona 85004, was organized for a gas storage facility. APACS Holdings LLC is a wholly-owned subsidiary of Pinnacle West Energy.

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2. A brief description of the properties of Claimant and each of its subsidiary public utility companies used for the generation, transmission and distribution of electric energy for sale, or for the production, transmission and distribution of natural or manufactured gas, indicating the location of principal generating plants, transmission lines, producing fields, gas manufacturing plants and electric and gas distribution facilities, including all such properties which are outside the state in which Claimant and its subsidiaries are organized and all transmission or pipelines which deliver or receive electric energy or gas at the borders of such state.

     Neither the Claimant nor any of its subsidiaries own property used for the production, transmission and distribution of natural or manufactured gas at retail. APS and PWEC, each a “public utility company” as that term is defined in the Public Utility Holding Company Act of 1935, are the only two of Claimant’s subsidiaries that own property used for the generation, transmission and distribution of electric energy for sale.

     Exhibit C attached hereto shows the location of (i) APS’ major generating plants (including those owned jointly with others), principal transmission lines (including those operated for others) and interconnections of transmission lines with out-of-state utilities at state lines; and (ii) PWEC’s major generating plants. All of such facilities, except the Four Corners Generating Station (“Four Corners”), and all of APS’ distribution facilities, are located within the State of Arizona. Four Corners is a mine-mouth power plant, located in the northwest corner of New Mexico, near the city of Farmington, approximately 40 miles east of the Arizona-New Mexico border.

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Claimant’s present generating facilities have capacity as follows:

APS – Net Accredited Capacity

     APS’ present generating facilities have an accredited capacity as follows:

         
    Capacity(kW)
Coal:
       
Units 1, 2, and 3 at Four Corners
    560,000  
15% owned Units 4 and 5 at Four Corners
    222,000  
Units 1, 2, and 3 at Cholla Plant
    615,000  
14% owned Units 1, 2, and 3 at the Navajo Plant
    315,000  
 
   
 
 
 
    1,712,000  
 
   
 
 
Gas or Oil:
       
Two steam units at Ocotillo and two steam units at Saguaro
    430,000  
Eleven combustion turbine units
    493,000  
Three combined cycle units
    255,000  
 
   
 
 
 
    1,178,000  
 
   
 
 
Nuclear:
       
29.1% owned or leased Units 1, 2, and 3 at Palo Verde
    1,113,000  
 
   
 
 
Hydro and Solar
    9,191  
 
   
 
 
Total APS facilities
    4,012,191  
 
   
 
 

Pinnacle West Energy – Permitted Capacity

     PWEC’s present generating facilities have a permitted capacity as follows:

         
Gas or Oil:
       
Two combined cycle units at Redhawk and two combined cycle units at West Phoenix
    1,710,000  
One combustion turbine unit
    80,000  
 
   
 
 
Total Pinnacle West Energy facilities
    1,790,000  
 
   
 
 

     APS’ transmission facilities consist of approximately 4,955 pole miles of overhead lines and approximately 34 miles of underground lines, all of which are located within the State of Arizona. APS’ distribution facilities consist of approximately 12,118 pole miles of overhead lines and approximately 12,998 miles of underground lines, all of which are located within the State of Arizona.

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3. The following information for the last calendar year with respect to Claimant and each of its subsidiary public utility companies:

The following data excludes marketing and trading activities for non-public utility companies, interaffiliate transfers, and financial instruments and is not maintained in a format identifying the state in which the sales and purchases are made or the amount of their associated revenues or expenses.

     a. Number of kwh of electric energy sold (at retail or wholesale), and Mcf. of natural or manufactured gas distributed at retail.

35,877,401,000 kwh of electric energy sold at wholesale or retail

0 Mcf. of natural or manufactured gas distributed at retail

     b. Number of kwh of electric energy and Mcf. of natural or manufactured gas distributed at retail outside the state in which each such company is organized.

65,494,700 kwh of electric energy was distributed at retail outside Arizona

0 Mcf. of natural or manufactured gas distributed at retail outside Arizona

     c. Number of kwh of electric energy and Mcf. of natural or manufactured gas sold at wholesale outside the state in which each such company is organized, or at the state line.

6,811,664,000 kwh of electric energy was sold at wholesale outside Arizona or at state line

27,418,677 Mcf. of natural or manufactured gas sold at wholesale outside Arizona or at state line

     d. Number of kwh of electric energy and Mcf. of natural or manufactured gas purchased outside the state in which each such company is organized or at the state line.

6,852,001,000 kwh of electric energy was purchased outside Arizona or at state line

82,654,779 Mcf. of natural or manufactured gas purchased outside Arizona or at state line

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4. The following information for the reporting period with respect to Claimant and each interest it holds directly or indirectly in an EWG or a foreign utility company, stating monetary amounts in United States dollars:

     a. Name, location, business address and description of the facilities used by the EWG or foreign utility company for the generation, transmission and distribution of electric energy for sale or for the distribution at retail of natural or manufactured gas.

     GenWest, LLC is in the process of developing the Silverhawk Power Plant Project, which is a 570 MW combined-cycle plant located 20 miles north of Las Vegas, Nevada. The plant is currently under construction. The business address for the Silverhawk Power Plant is as follows:

GenWest, LLC
400 North Fifth Street, Mail Station 8983
Phoenix, Arizona 85004
Attention: Warren Kotzmann

     b. Name of each system company that holds an interest in such EWG or foreign utility company; and description of the interest held.

     GenWest, LLC is an EWG. It is wholly owned by Pinnacle West Energy Corporation, which in turn is a wholly owned subsidiary of the Claimant.

     c. Type and amount of capital invested, directly or indirectly, by the holding company claiming exemption; any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption; and any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company.

  (1)   type and amount of capital invested, directly or indirectly, by the holding company:
         
$313,045,000
  short-term debt (financed at Pinnacle West Capital Corporation)
15,835,000
  intercompany payables
3,709,000
  paid in capital (equity)

 
       
$332,589,000
       

 
       

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  (2)   any direct or indirect guarantee of the security of the EWG or foreign utility company by the holding company claiming exemption:
 
      none
 
  (3)   any debt or other financial obligation for which there is recourse, directly or indirectly, to the holding company claiming exemption or another system company, other than the EWG or foreign utility company:

  (a)   Pinnacle West Energy guarantee up to $45,658,036 of GenWest performance under The Engineering Procurement and Construction Agreement for building the Silverhawk Power Plant.
 
  (b)   Pinnacle West Capital Corporation guarantee of Pinnacle West Energy payment of $5,376,400 for the purchase of Construction Turbines.
 
  (c)   Pinnacle West Energy , as assignor, remains liable for GenWest’s obligations under a Program Parts, Shop Repairs and Scheduled Outage Services Agreement for Combustion Turbines in the amount of $65,880,902.

     d. Capitalization and earnings of the EWG or foreign utility company during the reporting period.

  (1)   capitalization:
         
$313,045,000
  short-term debt (financed at Pinnacle West Capital Corporation)
3,709,000
  paid in capital (equity)

 
       
$316,754,000
       

 
       

  (2)   earnings:
         
$93,561
  interest earnings
(8,393)
  other taxes

 
       
$85,168
       

 
       

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     e. Identify any service, sales or construction contract(s) between the EWG or foreign utility company and a system company, and describe the services to be rendered or goods sold and fees or revenues under such agreement(s).

  (1)   Engineering, Procurement and Construction Agreement between GenWest, LLC and Arizona Public Service Company (“APS”) for construction of the Silverhawk Switchyard, pursuant to which, APS will construct the switchyard for the Silverhawk Power Plant. The contract price is $5,800,000.
 
  (2)   Limited Liability Company Agreement of GenWest, LLC by and among Pinnacle West Energy Corporation as sole Member and Pinnacle West Energy Corporation in its capacity as the initial Manager of GenWest, LLC, dated February 27, 2001. PWEC made an initial capital contribution of $1,000. No other fees have been paid to date.
 
  (3)   Contract for Services for Silverhawk SSR Study between GenWest, LLC and APS, pursuant to which APS will analyze potential sub-synchronous resonance at Silverhawk. The contract is a variable price contract with a not to exceed price of $15,000.

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EXHIBIT A

     A consolidating statement of income and surplus of the Claimant and its subsidiary companies for the last calendar year, together with a consolidating balance sheet of Claimant and its subsidiary companies as of the close of such calendar year.

     Exhibit A hereto includes consolidating statements of income and consolidating balance sheets for the Claimant and the following of its subsidiaries: Arizona Public Service Company, SunCor Development Company, El Dorado Investment Company, APS Energy Services Company, Inc. and Pinnacle West Energy Corporation. Subsidiaries have been consolidated for financial reporting purposes in accordance with Statement of Financial Accounting Standards No. 94, Consolidation of All Majority-Owned Subsidiaries. Also included are consolidating statements of income and consolidating balance sheets for: SunCor Development Company and its subsidiaries, Pinnacle West Energy Corporation and its subsidiaries, APS Energy Services Company, Inc. and its subsidiaries, and El Dorado Investment Company and its subsidiaries.

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EXHIBIT B

     An organizational chart showing the relationship of each EWG or foreign utility company to associate companies in the holding-company system.

     Exhibit B hereto includes an organizational chart of the holding-company system, including each EWG.

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     The above-named Claimant has caused this statement to be duly executed on its behalf by its authorized officer on this 1st day of March, 2004.

         
  Pinnacle West Capital Corporation
(Name of Claimant)
 
 
  By /s/ Barbara M. Gomez    
  Barbara M. Gomez   
  Treasurer   
 
[CORPORATE SEAL]

Attest:
 
   
/s/ Betsy A. Pregulman      
Betsy A. Pregulman     
Associate Secretary     
 

     Name, title and address of officer to whom notices and correspondence concerning this statement should be addressed:

     
Barbara M. Gomez
  Vice President and Treasurer

 
 
 
(Name)
  (Title)

400 North Fifth Street, Station 9996, Phoenix, Arizona 85004


(Address)

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EXHIBIT A

PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)

                                                                 
    PINNACLE           PINNACLE                                
    WEST           WEST                           ELIMINATIONS &    
Year ended December 31, 2003
  PARENT
  APS
  ENERGY
  SUNCOR
  EL DORADO
  APS ES
  ADJUSTMENTS
  TOTAL
OPERATING REVENUES
                                                               
Regulated electricity segment
  $ 1     $ 1,999,390     $ 70,498                             $ (91,814 )(a)   $ 1,978,075  
Marketing and trading segment
    97,016       105,541       13,110                       197,711       (21,492 )(a)     391,886  
Real estate segment
                            361,604                               361,604  
Other revenues
                                    58,358       27,929               86,287  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total
    97,017       2,104,931       83,608       361,604       58,358       225,640       (113,306 )     2,817,852  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
OPERATING EXPENSES
                                                               
Regulated electricity segment purchased power and fuel
    6,086       606,251       (3,870 )                             (91,147 )(a)     517,320  
Marketing and trading segment purchased power and fuel
    91,960       97,180       4,810                       161,695       (10,783 )(a)     344,862  
Operations and maintenance
    (1,792 )     513,604       32,187                       16,109       (11,376 )(a)     548,732  
Real estate operations segment
                            304,599                       1,375 (b)     305,974  
Depreciation and amortization
    6,046       389,240       33,020       5,305       3,003       1,529               438,143  
Taxes other than Income taxes
    (22 )     108,852       1,413                               27 (b)     110,270  
Other expenses
                                    47,244       23,254               70,498  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total
    102,278       1,715,127       67,560       309,904       50,247       202,587       (111,904 )     2,335,799  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
OPERATING INCOME
    (5,261 )     389,804       16,048       51,700       8,111       23,053       (1,402 )     482,053  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
OTHER
                                                               
Allowance for equity funds used during construction
            14,240                                               14,240  
Other income
    275,705       20,277       196       25,414       559               (286,588 )(c)     35,563  
Other expenses
    (5,743 )     (12,962 )     (1,202 )             (694 )             27 (b)     (20,574 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total
    269,962       21,555       (1,006 )     25,414       (135 )           (286,561 )     29,229  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INTEREST EXPENSE
                                                               
Interest charges
    38,752       150,947       35,116       6,433       687       179       (27,524 )(c)     204,590  
Capitalized interest
    1,244       (7,379 )     (17,863 )     (3,892 )             (179 )     (1,375 )(b)     (29,444 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total
    39,996       143,568       17,253       2,541       687             (28,899 )     175,146  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INCOME BEFORE INCOME TAXES
    224,705       267,791       (2,211 )     74,573       7,289       23,053       (259,064 )     336,136  
INCOME TAXES
    (15,874 )     86,854       (876 )     28,452             7,004               105,560  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INCOME FROM CONTINUING OPERATIONS
    240,579       180,937       (1,335 )     46,121       7,289       16,049       (259,064 )     230,576  
Income from discontinued operations — net of income taxes of $6,529
                            10,003                               10,003  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
NET INCOME (LOSS)
  $ 240,579     $ 180,937     $ (1,335 )   $ 56,124     $ 7,289     $ 16,049     $ (259,064 )   $ 240,579  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of intercompany sales of electricity.

(b) Reclassification of certain expenses.

(c) Elimination of intercompany interest.

A1


 

PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

                                                                 
    PINNACLE           PINNACLE                           ELIMINATIONS &    
December 31, 2003
  WEST PARENT
  APS
  WEST ENERGY
  SUNCOR
  EL DORADO
  APS ES
  ADJUSTMENTS
  TOTAL
ASSETS
                                                               
CURRENT ASSETS
                                                               
Cash and cash equivalents
  $ 81,725     $ 112,002     $ 1,298     $ 25,885     $ 5,871     $ 1,998     $     $ 228,779  
Customer and other receivables
    608,442       258,424       57,395       16,987       12,181       42,722       (630,419 )(a)     365,732  
Allowance for doubtful accounts
    (1,200 )     (3,743 )                             (4,280 )             (9,223 )
Accrued utility revenues
            71,501                               17,128               88,629  
Materials and supplies (at average cost)
            80,682       15,417                                       96,099  
Fossil fuel (at average cost)
            28,360       7                                       28,367  
Assets from risk management and trading activities
    45,182       52,448                                               97,630  
Other current assets
    2,442       6,969       4,812       34,174       511       672       23,454 (b)     73,034  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current assets
    736,591       606,643       78,929       77,046       18,563       58,240       (606,965 )     969,047  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INVESTMENTS AND OTHER ASSETS
                                                               
Real estate investments — net
                            355,312                       (11,990 )(b,c)     343,322  
Assets from risk management and trading activities — long term
    120,945       18,001                                               138,946  
Decommissioning trust accounts
            240,645                                               240,645  
Other assets
    3,041,818       561,984       243       1,812       3,038       417       (3,520,496 )(a,b,d)     88,816  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investments and other
    3,162,763       820,630       243       357,124       3,038       417       (3,532,486 )     811,729  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
PROPERTY, PLANT AND EQUIPMENT
                                                               
Plant in service and held for future use
    25,018       8,826,033       1,022,737               20,470       31,086               9,925,344  
Less accumulated depreciation and amortization
    4,951       3,089,645       48,835               15,066       2,178               3,160,675  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total
    20,067       5,736,388       973,902             5,404       28,908             6,764,669  
Construction work in progress
    9,426       187,478       356,775                       1,197               554,876  
Intangible assets, net of accumulated amortization
    12,884       94,181                               1,469               108,534  
Nuclear fuel, net of accumulated amortization
            10,282                                               10,282  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net property, plant and equipment
    42,377       6,028,329       1,330,677             5,404       31,574             7,438,361  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
DEFERRED DEBITS
                                                               
Regulatory assets
            164,804                                               164,804  
Other deferred debits
            92,853       12,846       5,055                       (46 )(b)     110,708  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total deferred debits
          257,657       12,846       5,055                   (46 )     275,512  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL ASSETS
  $ 3,941,731     $ 7,713,259     $ 1,422,695     $ 439,225     $ 27,005     $ 90,231     $ (4,139,497 )   $ 9,494,649  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of inter-company receivables and payables.

(b) Miscellaneous reclassifications.

(c) Elimination of minority interests of SunCor joint venture partners.

(d) Elimination of parent company investments in subsidiaries.

A2


 

PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

                                                                 
    PINNACLE           PINNACLE                           ELIMINATIONS &    
December 31, 2003
  WEST PARENT
  APS
  WEST ENERGY
  SUNCOR
  EL DORADO
  APS ES
  ADJUSTMENTS
  TOTAL
LIABILITIES AND EQUITY
                                                               
CURRENT LIABILITIES
                                                               
Accounts payable
  $ 68,845     $ 131,383     $ 52,403     $ 21,235     $ 10,384     $ 9,177             $ 293,427  
Accrued taxes
    (1,487 )     90,474       (65,481 )     19,671       2,436       702       23,454 (b)     69,769  
Accrued interest
    9,057       42,702       5,325       66                       (5,325 )(a)     51,825  
Short-term borrowings
                            86,081       39,418       5,069       (44,487 )(a)     86,081  
Current maturities of long-term debt
    215,845       206,727               2,002       906                       425,480  
Customer deposits
            45,481               4,302                               49,783  
Deferred income taxes
            631                                               631  
Liabilities from risk management and trading activities
    34,617       58,138                                               92,755  
Other current liabilities
    148,136       60,008       394,514       6,563       3,989       16,176       (548,163 )(a,b)     81,223  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current liabilities
    475,013       635,544       386,761       139,920       57,133       31,124       (574,521 )     1,150,974  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
NON-CURRENT LIABILITIES
                                                               
Long-term debt less current maturities
    465,128       2,415,946       500,000       15,851       800               (500,000 )(a)     2,897,725  
DEFERRED CREDITS AND OTHER
                                                               
Liabilities from risk management and trading activities — long-term
    78,228       4,502                                               82,730  
Deferred income taxes
    19,045       1,248,397       62,594                       (783 )             1,329,253  
Regulatory liabilities
            468,694                                               468,694  
Unamortized gain-sale of utility plant
            54,909                                               54,909  
Pension liability
    21,402       160,639       (115 )     6,433               (318 )             188,041  
Liability for asset retirement
            234,440                                               234,440  
Other
    1,159       286,558       6       2,369       454       2       (32,444 )(b)     258,104  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total deferred credits
    119,834       2,458,139       62,485       8,802       454       (1,099 )     (32,444 )     2,616,171  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
MINORITY INTERESTS
                                                               
Joint ventures of SunCor
                            15,119                       (15,119 )(c)      
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
COMMON STOCK EQUITY
                                                               
Common stock
    2,217,455       1,424,966       478,560       235,054       14,046       48,217       (2,673,944 )(d)     1,744,354  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Treasury Stock
    (3,273 )                                                     (3,273 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Accumulated other comprehensive income (loss):
                                                               
Minimum pension liability adjustment
    (9,406 )     (57,158 )                                             (66,564 )
Derivative instruments
    22,382       5,253                       (72 )                     27,563  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total accumulated other comprehensive income (loss)
    12,976       (51,905 )                 (72 )                 (39,001 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Retained earnings
    654,598       830,569       (5,111 )     24,479       (45,356 )     11,989       (343,469 )(d)     1,127,699  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total common stock equity
    2,881,756       2,203,630       473,449       259,533       (31,382 )     60,206       (3,017,413 )     2,829,779  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL LIABILITIES AND EQUITY
  $ 3,941,731     $ 7,713,259     $ 1,422,695     $ 439,225     $ 27,005     $ 90,231     $ (4,139,497 )   $ 9,494,649  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of intercompany receivables and payables.
(b) Miscellaneous reclassifications.
(c) Elimination of minority interests of SunCor joint venture partners.
(d) Elimination of parent company equity interest in subsidiaries.

A3


 

PINNACLE WEST ENERGY CORPORATION
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(Unaudited)

                                 
Year ended December 31, 2003
  PWEC
  GEN WEST
  ELIMINATIONS
  CONSOLIDATED
REVENUES
                               
Electric Revenue—Native Load
  $ 70,498     $     $     $ 70,498  
Electric Revenue—Marketing & Trading
    13,110                       13,110  
 
   
 
     
 
     
 
     
 
 
Total
    83,608                   83,608  
 
   
 
     
 
     
 
     
 
 
COST OF REVENUES
                               
Fuel for Electric Generation—Native Load
    (3,870 )                     (3,870 )
Fuel for Electric Generation—Marketing & Trading
    4,810                       4,810  
 
   
 
     
 
     
 
     
 
 
Total
    940                   940  
 
   
 
     
 
     
 
     
 
 
GROSS MARGIN
    82,668                   82,668  
 
   
 
     
 
     
 
     
 
 
OTHER OPERATING EXPENSES (REVENUE)
                               
Operations and Maintenance
    32,187                       32,187  
Depreciation and Amortization
    33,020                       33,020  
Other Electric Revenues
    (26 )                     (26 )
Other Taxes
    1,405       8               1,413  
 
   
 
     
 
     
 
     
 
 
Total
    66,586       8             66,594  
 
   
 
     
 
     
 
     
 
 
OPERATING MARGIN
    16,082       (8 )           16,074  
 
   
 
     
 
     
 
     
 
 
INTEREST AND OTHER EXPENSES
                               
Interest Expense
    35,116       10,368       (10,368 )(a)     35,116  
Capitalized Interest
    (7,495 )     (10,368 )             (17,863 )
Other Interest & Dividend Income
    (10,444 )     (94 )     10,368 (a)     (170 )
Other Expenses
    1,202                       1,202  
 
   
 
     
 
     
 
     
 
 
Total
    18,379       (94 )           18,285  
 
   
 
     
 
     
 
     
 
 
INCOME BEFORE INCOME TAXES
    (2,297 )     86             (2,211 )
 
   
 
     
 
     
 
     
 
 
INCOME TAXES
    (876 )                     (876 )
 
   
 
     
 
     
 
     
 
 
NET INCOME
  $ (1,421 )   $ 86     $     $ (1,335 )
 
   
 
     
 
     
 
     
 
 

(a) Elimination of Intercompany interest.

A4


 

PINNACLE WEST ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET (dollars in thousands)
(Unaudited)

                                 
December 31, 2003
  PWEC
  GEN WEST
  ELIMINATIONS
  CONSOLIDATED
ASSETS
                               
Current Assets
                               
Cash and cash equivalents
  $ 1,089     $ 209     $     $ 1,298  
Accounts receivable
    824       172               996  
Intercompany receivable
    344,300       357       (328,758 )(a)     15,899  
Other special deposits
    40,500                       40,500  
Materials and supplies (at average cost)
    15,417                       15,417  
Fossil fuel (at average cost)
    7                       7  
Other
    4,812                       4,812  
 
   
 
     
 
     
 
     
 
 
Total Current Assets
    406,949       738       (328,758 )     78,929  
Plant in Service
    1,022,737                       1,022,737  
Less accumulated depreciation and amortization
    (48,835 )                     (48,835 )
 
   
 
     
 
     
 
     
 
 
Total
    973,902                   973,902  
Construction Work in Progress
    566       356,209             356,775  
 
   
 
     
 
     
 
     
 
 
Utility Plant -Net
    974,468       356,209             1,330,677  
 
Investments and Other Assets                                
Investment in sub-Gen West
    3,621               (3,621 )(b)      
Other Assets
    243                       243  
Deferred Debits
    3,318       9,528               12,846  
 
   
 
     
 
     
 
     
 
 
Total non-current assets     7,182       9,528       (3,621 )     13,089  
 
   
 
     
 
     
 
     
 
 
TOTAL ASSETS   $ 1,388,599     $ 366,475     $ (332,379 )   $ 1,422,695  
 
   
 
     
 
     
 
     
 
 
LIABILITIES AND EQUITY                                
Current Liabilities
                               
Accounts payable
  $ 18,519     $ 33,884     $     $ 52,403  
Intercompany payable
    80,966       15,835       (15,713 )(a)     81,088  
Short term debt
    313,045       313,045       (313,045 )(a)     313,045  
Accrued taxes
    (65,483 )     2               (65,481 )
Accrued interest
    5,325                       5,325  
Other
    381                       381  
 
   
 
     
 
     
 
     
 
 
Total Current Liabilities
    352,753       362,766       (328,758 )     386,761  
Deferred Credits
                               
Deferred income tax credit
    62,594                       62,594  
Other deferred credits
    6                       6  
 
   
 
     
 
     
 
     
 
 
Total Deferred Credits
    62,600                   62,600  
Pension Liability
                               
Accumulated provision for SEBRP
    274                       274  
Deferred credits pension
    (389 )                     (389 )
 
   
 
     
 
     
 
     
 
 
Total Pension Liability
    (115 )                 (115 )
Capitalization
                               
Additional paid in capital
    478,560       3,621       (3,621 )(b)     478,560  
Retained earnings
    (5,199 )     88               (5,111 )
Long term debt to associated companies
    500,000                       500,000  
 
   
 
     
 
     
 
     
 
 
Total Capitalization
    973,361       3,709       (3,621 )     973,449  
 
   
 
     
 
     
 
     
 
 
TOTAL LIABILITIES AND EQUITY   $ 1,388,599     $ 366,475     $ (332,379 )   $ 1,422,695  
 
   
 
     
 
     
 
     
 
 

(a) Elimination of intercompany receivables and payables.

(b) Elimination of parent company equity in subsidiaries.

A5


 

SunCor Development Company
Consolidating Income Statement (dollars in thousands)
(Unaudited)

                                                         
                                                    PV
year Ended December 31, 2003
  SUNCOR
  STONERIDGE
  CLUB WEST
  SANCTUARY
  SUNRIDGE
  COMMERCIAL
  HOME/DEV
Revenues
                                                       
Home Sales
  $     $ 27,923     $     $     $     $     $ 50,485  
Land Sales
    1,199       702                               10,185       54,615  
Sale of Assets
                                            45,000       44,095  
Commercial Properties
    31       1,243       2,133       2,330       170       8,053          
Utility Sales
                                                       
Management Fees
    533                                       438          
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Operating Revenues
    1,763       29,868       2,133       2,330       170       63,676       149,195  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Operating Expenses
                                                       
Cost of Homes Sold
    (3,035 )     22,228                                       42,189  
Cost of Land Sold
    3,700       480                               5,756       28,652  
Sale of Assets
    (6 )                                     34,353       29,818  
Commercial Properties
    19       1,641       2,453       2,199       169       5,173          
Utility Expense
                                                       
Land Project Costs
    575       1,042                               887       1,373  
General & Administrative
    16,159       2,499                               1,782       4,682  
Depreciation & Amortization
    1,351       278       213       346               2,621       54  
Minority Interest
    1,007                                                  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Operating Expenses
    19,770       28,168       2,666       2,545       169       50,572       106,768  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net Operating Income/(Loss)
    (18,007 )     1,700       (533 )     (215 )     1       13,104       42,427  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Other Income and Gains
                                                       
Equity in Joint Ventures
    237                                       472       2,611  
Interest Income
    364                                       67       85  
Other
    424       19                                       20,754  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Other Income and Gains
    1,025       19                         539       23,450  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Interest Expense, Net
                                                       
Interest Expense
    2,932       361       352       240               318       1,029  
Less: Capitalized Interest
    (1,629 )     (191 )                                     (1,029 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Interest Expense, Net
    1,303       170       352       240             318        
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
 
                                                       
 
                                                       
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Income before Taxes & Disc Ops
    (18,285 )     1,549       (885 )     (455 )     1       13,325       65,877  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Income Taxes
    28,452                                                  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Net Disc Ops
    8,373                                 1,630          
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net Income/(Loss)
  $ (38,364 )   $ 1,549     $ (885 )   $ (455 )   $ 1     $ 14,955     $ 65,877  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
 

     

[Additional columns below]

[Continued from above table, first column(s) repeated]

                                                                 
                                    HIDDEN   CORAL   RANCHO   CONSOLIDATED
year Ended December 31, 2003
  KABUTO JV
  SMLP
  PVGC
  NE HLBG
  HILLS
  CANYON
  VIEJO
  INCOME
Revenues
                                                               
Home Sales
  $             $     $ 47,849             $ 14,834     $ 31,023     $ 172,114  
Land Sales
    6,057                               3,513       664       1,171       78,106  
Sale of Assets
                                            110               89,205  
Commercial Properties
                    2,227       2,073               2,740               21,000  
Utility Sales
                                                    201       201  
Management Fees
                                            7               978  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Operating Revenues
    6,057             2,227       49,922       3,513       18,355       32,395       361,604  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Operating Expenses
                                                               
Cost of Homes Sold
                            36,124       3,035       11,787       25,498       137,826  
Cost of Land Sold
    2,804                                       501       928       42,821  
Sale of Assets
                                            97               64,262  
Commercial Properties
                    2,813       1,370               2,105               17,942  
Utility Expense
                                            360               360  
Land Project Costs
            21               294               417       323       4,932  
General & Administrative
    367       22               4,841               1,944       3,194       35,490  
Depreciation & Amortization
                            38               391       13       5,305  
Minority Interest
                                            (41 )             966  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Operating Expenses
    3,171       43       2,813       42,667       3,035       17,561       29,956       309,904  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net Operating Income/(Loss)
    2,886       (43 )     (586 )     7,255       478       794       2,439       51,700  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Other Income and Gains
                                                               
Equity in Joint Ventures
                                                            3,320  
Interest Income
            1               2               152       4       675  
Other
            13               45               118       46       21,419  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Other Income and Gains
          14             47             270       50       25,414  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Interest Expense, Net
                                                               
Interest Expense
            2               668               531               6,433  
Less: Capitalized Interest
                            (668 )             (375 )             (3,892 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Interest Expense, Net
          2                         156             2,541  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
 
                                                               
 
                                                               
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Income before Taxes & Disc Ops
    2,886       (31 )     (586 )     7,302       478       908       2,489       74,573  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Income Taxes
                                                            28,452  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total Net Disc Ops
                                                          10,003  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Net Income/(Loss)
  $ 2,886     $ (31 )   $ (586 )   $ 7,302     $ 478     $ 908     $ 2,489     $ 56,124  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

A6


 

SUNCOR DEVELOPMENT COMPANY
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

                                                                         
December 31, 2003
  SUNCOR
  SMLP
  PVGC
  CLUB WEST
  SANCTUARY
  SUNRIDGE
  NE HB
  PV HB
  PV - DEV
ASSETS
                                                                       
CURRENT ASSETS
                                                                       
Cash and cash equivalents
  $ 18,030     $ 412     $ 12     $ 71     $ 20     $ (31 )   $ (234 )   $ (399 )   $ (1,117 )
Customer and other receivables
    (7,258 )     766       30       14       56       16       286       33       20  
Other current assets
    509                                               4,968       14,618          
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current assets
    11,281       1,178       42       85       76       (15 )     5,020       14,252       (1,097 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INVESTMENTS AND OTHER ASSETS
                                                                       
Real estate investments—net
    157,893       87       11,700       8,168       10,445       9,341       (19 )     839       103,589  
Other assets
    1,123                                                                  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investments and other
    159,016       87       11,700       8,168       10,445       9,341       (19 )     839       103,589  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
DEFERRED DEBITS
                                                                       
Other deferred debits
    1,950               171       96       105       190       10       305       77  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL ASSETS
  $ 172,247     $ 1,265     $ 11,913     $ 8,349     $ 10,626     $ 9,516     $ 5,011     $ 15,396     $ 102,569  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
LIABILITIES AND EQUITY
                                                                       
CURRENT LIABILITIES
                                                                       
Accounts payable
  $ 7,857     $     $ 389     $ 231     $ 2,394     $ 517     $ 2,888     $ 13,601     $ (10,207 )
Accrued taxes
    19,671                                                                  
Accrued interest
    (47 )                                                     5,137          
Short-term borrowings
    50,000                               2,134                                  
Current maturities of long-term debt
                    146       223       26       1,511                          
Customer deposits
    41                                               1,867       876          
Other current liabilities
    5,938       (2 )     7,021       107       157               (18,942 )     (22,329 )     246  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current liabilities
    83,460       (2 )     7,556       561       4,711       2,028       (14,187 )     (2,715 )     (9,961 )
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
NON-CURRENT LIABILITIES
                                                                       
Long-term debt less current maturities
                  2,984       4,268       78       6,230                          
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
DEFERRED CREDITS AND OTHER
                                                                       
Pension liability
    6,433                                                                  
Other
    3,444                                                                  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total deferred credits
    9,877                                                  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
MINORITY INTERESTS
                                                                       
Joint ventures of SunCor
                                                     
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
COMMON STOCK EQUITY
                                                                       
Common stock
    235,054                                                                  
Retained earnings
    (156,144 )     1,267       1,373       3,520       5,837       1,258       19,198       18,111       112,530  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total common stock equity
    78,910       1,267       1,373       3,520       5,837       1,258       19,198       18,111       112,530  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL LIABILITIES AND EQUITY
  $ 172,247     $ 1,265     $ 11,913     $ 8,349     $ 10,626     $ 9,516     $ 5,011     $ 15,396     $ 102,569  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

     

[Additional columns below]

[Continued from above table, first column(s) repeated]

                                                                 
                                                    ADJUSTMENTS &    
December 31, 2003
  KABUTO JV
  COMM.
  H HILLS
  STONERIDGE
  RANCHO VIEJO
  C. CANYON
  ELIMINATIONS
  CONSOLIDATED
ASSETS
                                                               
CURRENT ASSETS
                                                               
Cash and cash equivalents
  $ 10,911     $ (750 )   $ 161     $ 272     $ 215     $ (1,688 )           $ 25,885  
Customer and other receivables
    1,067       7,227       200       2,907       249       1,142       10,232 (a)     16,987  
Other current assets
                            5,999       4,280       4,878       (1,078 )(b)     34,174  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current assets
    11,978       6,477       361       9,178       4,744       4,332       9,154       77,046  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
INVESTMENTS AND OTHER ASSETS
                                                               
Real estate investments—net
    6,866       107,362       13,780       26,409       21,284       27,170       (149,602 )(c)     355,312  
Other assets
                                    689                     1,812  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total investments and other
    6,866       107,362       13,780       26,409       21,973       27,170       (149,602 )     357,124  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
DEFERRED DEBITS
                                                               
Other deferred debits
            1,766               171       144       70               5,055  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL ASSETS
  $ 18,844     $ 115,605     $ 14,141     $ 35,758     $ 26,861     $ 31,572     $ (140,448 )   $ 439,225  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
LIABILITIES AND EQUITY
                                                               
CURRENT LIABILITIES
                                                               
Accounts payable
  $ 2,955     $ 1,269     $ (1,768 )   $ 2,315     $ 668     $ 578     $ (2,452 )(a)     21,235  
Accrued taxes
                                                          19,671  
Accrued interest
            113                                       (5,137 )(a)     66  
Short-term borrowings
            33,947                                               86,081  
Current maturities of long-term debt
                            58               38               2,002  
Customer deposits
            211               1,032       275                       4,302  
Other current liabilities
            222               6,053                       28,092       6,563  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total current liabilities
    2,955       35,762       (1,768 )     9,458       943       616       20,503       139,920  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
NON-CURRENT LIABILITIES
                                                               
Long-term debt less current maturities
                            2,177               114               15,851  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
DEFERRED CREDITS AND OTHER
                                                               
Pension liability
                                                            6,433  
Other
                                                    (1,075 )(b)     2,369  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total deferred credits
                                        (1,075 )     8,802  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
MINORITY INTERESTS
                                                               
Joint ventures of SunCor
                                  128       14,991       15,119  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
COMMON STOCK EQUITY
                                                               
Common stock
                                                            235,054  
Retained earnings
    15,889       79,843       15,909       24,123       25,918       30,714       (174,867 )(d)     24,479  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
Total common stock equity
    15,889       79,843       15,909       24,123       25,918       30,714       (174,867 )     259,533  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 
TOTAL LIABILITIES AND EQUITY
  $ 18,844     $ 115,605     $ 14,141     $ 35,758     $ 26,861     $ 31,572     $ (140,448 )   $ 439,225  
 
   
 
     
 
     
 
     
 
     
 
     
 
     
 
     
 
 

EXPLANATIONS OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of intercompany receivables and pavables.

(b) Miscellaneous reclassifications.

(c) Elimination of parent company investments in subsidiaries.

(d) Elimination of parent company equity in earnings of subsidiaries.

A7


 

EL DORADO INVESTMENT COMPANY
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(UNAUDITED)

                                 
                    Eliminations &    
year ended December 31, 2003
  El Dorado
  NAC
  Adjustments
  TOTAL YTD
REVENUES
                               
NAC Revenue
  $     $ 58,358     $     $ 58,358  
Equity in Earnings of Investees
    5,017             (5,549 )(a)     (532 )
Interest Income
    2,312             (2,311 )(b)     1  
Gain (loss) on investment
    510                     510  
CMA Revenue
    530                     530  
Misc Income
    50                     50  
 
   
 
     
 
     
 
     
 
 
Total
    8,419       58,358       (7,860 )     58,917  
 
   
 
     
 
     
 
     
 
 
OTHER EXPENSES AND DEDUCTIONS
                               
NAC operating expenses
          47,244             47,244  
Depreciation and amortization
          3,003             3,003  
Interest expense and other
    436       2,562       (2,311 )(b)     687  
General and administrative — net
    694                     694  
 
   
 
     
 
     
 
     
 
 
Total
    1,130       52,809       (2,311 )     51,628  
 
   
 
     
 
     
 
     
 
 
INCOME BEFORE INCOME TAXES
    7,289       5,549       (5,549 )     7,289  
INCOME TAXES
                       
 
   
 
     
 
     
 
     
 
 
NET INCOME
  $ 7,289     $ 5,549     $ (5,549 )   $ 7,289  
 
   
 
     
 
     
 
     
 
 

EXPLANATION OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of equity in earnings of subsidiary.

(b) Elimination of intercompany interest income and expense.

A8


 

EL DORADO INVESTMENT COMPANY
CONSOLIDATING BALANCE SHEETS (dollars in thousands)
(UNAUDITED)

                                 
                    Eliminations &    
December 31, 2003
  El Dorado
  NAC
  Adjustments
  Total
ASSETS
                               
CURRENT ASSETS
                               
Cash
  $ 4     $ 5,867     $     $ 5,871  
Accounts receivable
    4,302       11,066       (3,187 )(a)     12,181  
Intercompany Loan Receivable -NAC
    39,000             (39,000 )(a)      
Investment in NAC
    (35,455 )             35,455 (b)      
Other Assets
    126       385             511  
 
   
 
     
 
     
 
     
 
 
Total Current Assets
    7,977       17,318       (6,732 )     18,563  
 
   
 
     
 
     
 
     
 
 
PROPERTY, PLANT AND EQUIPMENT
                               
Property, Plant and Equipment
            20,470               20,470  
Less Accumulated Depreciation and amortization
            (15,066 )             (15,066 )
 
   
 
     
 
     
 
     
 
 
Total Property, Plant and Equipment
          5,404             5,404  
 
   
 
     
 
     
 
     
 
 
INVESTMENTS AND OTHER ASSETS
                               
Other Assets
            343               343  
Investments
    2,695                       2,695  
 
   
 
     
 
     
 
     
 
 
Total investments and other
    2,695       343             3,038  
 
   
 
     
 
     
 
     
 
 
TOTAL ASSETS
  $ 10,672     $ 23,065     $ (6,732 )   $ 27,005  
 
   
 
     
 
     
 
     
 
 
LIABILITIES AND EQUITY
                               
CURRENT LIABILITIES
                               
Accounts payable and accrued liabilities
  $ (22 )   $ 13,593     $ (3,187 )(a)   $ 10,384  
Current Maturities of LTD
            906               906  
Accounts payable — PWCC
    65                       65  
Intercompany Loan Payable — El Dorado
            39,000       (39,000 )(a)      
Intercompany Loan Payable — PWCC
    39,418                       39,418  
Deferred Income
    63       3,861               3,924  
Taxes Payable
    2,436                       2,436  
 
   
 
     
 
     
 
     
 
 
Total Current Liabilities
    41,960       57,360       (42,187 )     57,133  
 
   
 
     
 
     
 
     
 
 
NON-CURRENT LIABILITIES
                               
Long-term debt less current maturities
            800               800  
Other
            454               454  
 
   
 
     
 
     
 
     
 
 
Total Non-Current Liabilities
          1,254             1,254  
 
   
 
     
 
     
 
     
 
 
Equity Common stock
    10       10,634       (10,634 )(b)     10  
Additional paid in capital
    14,036       12,613       (12,613 )(b)     14,036  
Retained earnings
    (45,356 )     (58,702 )     58,702 (b)     (45,356 )
Accumulated Other Comprehensive Income
                               
Derivative Instruments
    22       (94 )             (72 )
 
   
 
     
 
     
 
     
 
 
Total equity
    (31,288 )     (35,549 )     35,455       (31,382 )
 
   
 
     
 
     
 
     
 
 
TOTAL LIABILITIES AND EQUITY
  $ 10,672     $ 23,065     $ (6,732 )   $ 27,005  
 
   
 
     
 
     
 
     
 
 

EXPLANATION OF ELIMINATIONS AND ADJUSTMENTS

(a) Elimination of intercompany receivables and payables.

(b) Elimination of investments in subsidiary.

A9


 

APS ENERGY SERVICES
CONSOLIDATING INCOME STATEMENT (dollars in thousands)
(Unaudited)

                                 
year ended December 31, 2003
  APSES
  Northwind
  Eliminations
  Total
OPERATING REVENUES
                               
ELECTRIC SALES
  $ 197,711     $     $     $ 197,711  
PRODUCTS & SERVICES
    25,111             (2,316 )(a)     22,795  
NORTHWIND LLC.
          5,008             5,008  
OTHER
    150             (24 )(a)     126  
 
   
 
     
 
     
 
     
 
 
TOTAL
    222,972       5,008       (2,340 )     225,640  
 
   
 
     
 
     
 
     
 
 
OPERATING EXPENSES
                               
ELECTRIC SALES
    161,695                   161,695  
PRODUCTS & SERVICES
    22,901             (2,316 )(a)     20,585  
NORTHWIND LLC.
          2,568             2,568  
OTHER
    101                   101  
 
   
 
     
 
     
 
     
 
 
TOTAL
    184,697       2,568       (2,316 )     184,949  
 
   
 
     
 
     
 
     
 
 
GROSS MARGIN
    38,275       2,440       (24 )     40,691  
 
   
 
     
 
     
 
     
 
 
OTHER OPERATING EXPENSES
                               
LABOR
    10,446       1,015             11,461  
OTHER O&M
    3,200       1,448             4,648  
DEPRECIATION AND AMORTIZATION
    701       828             1,529  
 
   
 
     
 
     
 
     
 
 
TOTAL
    14,347       3,291             17,638  
 
   
 
     
 
     
 
     
 
 
OPERATING INCOME
    23,928       (851 )     (24 )     23,053  
 
   
 
     
 
     
 
     
 
 
INTEREST AND OTHER EXPENSES
                               
INTEREST ON LONG-TERM DEBT
    179       24       (24 )(a)     179  
CAPITALIZED INTEREST
    (155 )     (24 )           (179 )
(GAIN)/ LOSS IN NORTHWIND LLC
    851             (851 )(b)      
 
   
 
     
 
     
 
     
 
 
TOTAL
    875             (875 )      
 
   
 
     
 
     
 
     
 
 
INCOME BEFORE INCOME TAXES
    23,053       (851 )     851       23,053  
INCOME TAXES
    7,004                   7,004  
 
   
 
     
 
     
 
     
 
 
NET INCOME
  $ 16,049     $ (851 )   $ 851     $ 16,049  
 
   
 
     
 
     
 
     
 
 

(a) Elimination of intercompany revenues and associated costs.

(b) Elimination of equity of earnings of subsidiary.

A10


 

APS ENERGY SERVICES
CONSOLIDATING BALANCE SHEET (dollars in thousands)
(Unaudited)

                                 
December 31, 2003
  APSES
  Northwind
  Eliminations
  Total
ASSETS
                               
CURRENT ASSETS
                               
CASH
  $ 1,696     $ 302             $ 1,998  
CUSTOMER & OTHER RECEIVABLES
    53,651       973       (11,902 )(a)     42,722  
ALLOWANCE FOR DOUBTFUL ACCOUNTS
    (4,280 )                   (4,280 )
ACCRUED REVENUE
    17,128                     17,128  
OTHER CURRENT ASSETS
    783             (111 )(a)     672  
 
   
 
     
 
     
 
     
 
 
TOTAL CURRENT ASSETS
    68,978       1,275       (12,013 )     58,240  
 
   
 
     
 
     
 
     
 
 
INVESTMENTS
    16,248             (15,831 )(b)     417  
 
   
 
     
 
     
 
     
 
 
PROPERTY, PLANT & EQUIPMENT
    1,001       30,085               31,086  
LESS ACCUMULATED DEPRECIATION & AMORTIZATION
    (660 )     (1,518 )             (2,178 )
 
   
 
     
 
     
 
     
 
 
TOTAL
    341       28,567               28,908  
CONSTRUCTION WORK IN PROGRESS
    1,099       98               1,197  
INTANGIBLE ASSETS, NET OF AMORTIZATION
    1,469                     1,469  
 
   
 
     
 
     
 
     
 
 
TOTAL PROPERTY — NET
    2,909       28,665               31,574  
 
   
 
     
 
     
 
     
 
 
TOTAL ASSETS
  $ 88,135     $ 29,940     $ (27,844 )   $ 90,231  
 
   
 
     
 
     
 
     
 
 
CURRENT LIABILITIES
                               
ACCOUNTS PAYABLE
  $ 7,104     $ 2,073             $ 9,177  
ACCRUED TAXES PAYABLE
    679       23               702  
SHORT TERM DEBT
    5,069       134       (134 )(a)     5,069  
OTHER CURRENT LIABILITIES
    16,176       11,878       (11,878 )(a)     16,176  
 
   
 
     
 
     
 
     
 
 
TOTAL CURRENT LIABILITIES
    29,028       14,108       (12,012 )     31,124  
 
   
 
     
 
     
 
     
 
 
DEFERRED INCOME TAXES
    (783 )                   (783 )
OTHER DEFERRED CREDITS
    2                     2  
PENSION LIABILITY
    (318 )                   (318 )
 
   
 
     
 
     
 
     
 
 
TOTAL NON-CURRENT LIABILITIES
    (1,099 )                 (1,099 )
 
   
 
     
 
     
 
     
 
 
EQUITY & LIABILITIES
                               
COMMON STOCK
    1                     1  
EQUITY
    48,216       16,683       (16,683 )(b)     48,216  
RETAINED EARNINGS
    11,989       (851 )     851 (b)     11,989  
 
   
 
     
 
     
 
     
 
 
TOTAL EQUITY
    60,206       15,832       (15,832 )     60,206  
 
   
 
     
 
     
 
     
 
 
TOTAL LIABILITIES & EQUITY
  $ 88,135     $ 29,940     $ (27,844 )   $ 90,231  
 
   
 
     
 
     
 
     
 
 

(a)Elimination of intercompany receivables and payables.

(b)Elimination of investment in subsidiary.

A11


 

EXHIBIT B

PINNACLE WEST CAPITAL CORPORATION & SUBSIDIARIES ORGANIZATIONAL CHART Kabuto SunCor Joint Venture APS Energy Services Company Inc. 100% Arizona Public Service Company 100% Northwind Phoenix LLC 100% 100% Axiom Power Solutions, Inc. Bixco, Inc. 100% 50% Talavi Associates LLC 100% Hidden Hills of Scottsdale LLC 50% Centrepoint Associates LLC 50% Sedona Golf Resort LLC 100% SunRidge Canyon LLC 65% Scottsdale Mountain LLP 100% Golf de Mexico, S.A. de C.V. Type Two, Inc. 30% SunCor Development Company 100% 100% 100% Heritage Financial Services, LLC Golden Heritage Homes, Inc. 100% Golden Heritage Construction Inc. 100% Palm Valley Golf Club, Inc. 100% SunCor Golf, Inc. 100% Westworld Golf Course LLC 100% Rancho Viejo de Santa Fe, Inc. 100% SCM, Inc. 100% 100% SunCor Realty & Management Company 70% 60% Stone Ridge - Prescott Valley LLC El Dorado Investment Company 100% Tucson District Energy LLC 100% 100% PWENewco, Inc. 100% Hayden Ferry Lakeside LLC 68% Club West Golf Course LLC Stone Ridge Golf Course LLC Pinnacle West Capital Corporation 100% Coral Canyon Town Center LLC 75% SunCor Idaho, LLC 100% Ranchland Utility Company Rancho Viejo Village Center, LLC 100% Pinnacle West Energy Corporation 100% 100% Gen West, LLC APACS Holdings LLC 100% AZ PB Partnership 1.7% Phoenix Suns Limited Partnership 21.7% El Dorado Ventures III 24.4% Phoenix Downtown Theater LLC 6.9% Underground Imaging Technologies, LLC 50% 99.8% 100% NAC Holding Inc. NAC International Inc. APSES Holdings, Inc. 100% APS Energy L.P. 99% 1% Nxt Phase 2.2% Coral Canyon HD, L.L.C. 50% Lakeside Residential Communities L.L.C. 100% Edgewater at Hayden Ferry Lakeside L.L.C. 100% BV at Hayden Ferry Lakeside L.L.C. 100%

 


 

EXHIBIT C

(ARIZONA MAP)