The businesses of Pinnacle West are built upon a foundation of skilled, diverse and dedicated employees. We consider our employees a competitive advantage, and in order to retain and attract this talented workforce, we offer competitive compensation, strong benefits and a variety of career opportunities.

Our workforce is an area of core emphasis in our 2005-2010 Business Plan, and PNW recognizes that our employees are the critical factor in making our business successful.

Over the next five years, we face the challenge of planning for and supporting significant workforce transition. Core skills and capabilities, including leadership, must be developed as long tenured employees retire and new employees are integrated into the workforce. Also, new skills and capabilities will be required to implement improved processes, new infrastructure and new technology. Success in this area depends on planning and executing knowledge transfer, workforce planning and development, and human performance improvement.

This section of our report shows our performance and some of the ways we will accomplish our workplace goals.