We’re different because we’ve disregarded simple assumptions and predictions about the future. We realized deregulation didn’t mean power prices had to drop or that markets would somehow satisfy hourly demands at reasonable prices. We held on to our power plants. We established long-term power contracts. We kept control over costs. We protected customers by building power plants. We reduced our customers’ prices.

    As we face challenges in 2002 and beyond, we enjoy some solid advantages. These include natural advantages we recognize and build on. Our geographic location gives us seasonal diversity so that in typical years we have a favorable power exchange situation with the Northwest. We enjoy solid customer growth and a growing economy.

    But these “natural” advantages are not as important as the ones we’ve created: 

• an unwavering focus on customer satisfaction
• outstanding power plant operations
• an increasingly balanced fuel mix
• disciplined generation expansion roughly matching our native load growth
• a creative but risk-averse approach to power marketing 

    These advantages support a strategy that is our definition of creating value: combined growth of earnings and dividends above the industry average. Our advantages form a strategic mix we believe is unique and sustainable. I’m confident the people of Pinnacle West will meet the complex challenges of the future. We have the skills, experience and intellectual capital to develop the answers and deliver shareholder value. We have, and we will.

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