Welcome to the 2006 Pinnacle West Capital Corporation Corporate Responsibility Report. 

This report aims to transparently communicate our corporation's environmental, health, safety and sustainability goals and performance. We have issued an environmental, health and safety annual report every year since 1994, which we expanded to a Corporate Responsibility Report in 2004.

In developing this report, we have used international reporting guidelines from CERES and the Global Reporting Initiative. Additionally, in some instances we have gone beyond these guidelines to provide information our external stakeholders, such as socially responsible investment research groups, have asked us to include. 

We continue to use a Web-based format for this report, which allows readers to quickly navigate to areas of interest, and also offers links to additional information. Many of these links are to other resources outside of the Corporate Responsibility Report, such as our PNW and subsidiary websites. This allows the reader to research additional information on these topics, if desired, while keeping the report format more readable.

This Web-based format also allows us to reduce our report's environmental impact by reducing the amount of paper, ink, electricity and other resources needed to create a full-color, printed report.  We have also included a .pdf version on the report, which will allow the reader to view or print the entire report in a book format.  Note that the pdf version contains the text of the report, but many of the pictures and links to additional information that are present in the web version are not available in the .pdf version in order to reduce the size of the report.

We believe that continuous improvement is important in a sustainability program, and we value our stakeholders input into our efforts. We have included a feedback mechanism in this year's report so readers can post suggestions and comments via a feedback link on the left-hand navigational menu. We appreciate any feedback we can use to make our report better, and as our way of saying thanks, we will send all respondents an Energy Star^® approved energy-efficient compact fluorescent lightbulb (CFL). 

The promotion of CFLs is one of our demand-side management programs and something we feel will help consumers save money while significantly reducing electricity use and the number of light bulbs going to landfills.

Since the inception of APS' CFL program in late 2005, almost two million CFLs have been sold at reduced pricing throughout the state. Those sales also mean estimated energy savings of more than 500 million kilowatt-hours – enough energy to power over 40,000 homes for one year and save consumers about $50 million in energy costs over the life of the bulbs.

This report provides information on Pinnacle West Capital Corporation and our major subsidiaries, Arizona Public Service Company (APS) and SunCor Development Company.  We also provide information on our retail subsidiary,  APS Energy Services. 

Since our most significant environmental issues are associated with Pinnacle West's largest subsidiary, APS, the Environmental Performance section of this report focuses on APS' environmental performance. Information on the company's other subsidiaries can be found in our Subsidiaries Section.

On behalf of our more than 6,000 employees and our community partners, thank you for your interest in our 2006 Pinnacle West Capital Corporation Corporate Responsibility Report.