Welcome to the 2004 Pinnacle West Capital Corporation Corporate Responsibility Report. We appreciate the opportunity to offer you a glimpse into what we feel makes our company successful.

At Pinnacle West, we believe that good corporate responsibility — how a company cares for its customers, the environment, the community and its employees — is one of the most important indicators of a successful enterprise. Some call it sustainability; others call it corporate citizenship or the “triple bottom line.”

We simply call it doing the right thing.

As a company inextricably tied to the communities we serve and the environment we work and live in, we understand and embrace the importance of the concept of sustainability.

In years past, our report was titled the Environmental Health and Safety Report. This year, in keeping with Global Reporting Initiatives (GRI) guidelines, and to demonstrate our Company’s commitment to sustainability, we are transitioning to corporate responsibility reporting.

On behalf of our more than 6,000 employees, and our community partners, thank you for your interest in the 2004 Pinnacle West Corporate Responsibility Report.