It’s likely that in our 117 years as a company, no employees have been asked to accomplish more than our current staff. They are the embodiment of "doing more with less." In the last five years, APS has added more than 150,000 customers, while our workforce numbers have remained virtually the same. Added demands have pushed us to find ways to work more efficiently. The result has been an energetic, innovative and purposeful workforce.

One example of our company’s strong productivity comes from the Palo Verde Nuclear Generating Station west of Phoenix. In 2003, Palo Verde marked its 12th consecutive year as the largest power producer of any kind in the United States.

In addition, our gas-fired plants – including our new units at West Phoenix and Redhawk – operated at about 90 percent availability, and the combined capacity factor for our Four Corners and Cholla power plants ranked near the top of the industry.

Taking advantage of opportunities in a favorable real estate market, SunCor Development Co., Pinnacle West’s real estate subsidiary, delivered solid performance, reporting 2003 net income of $56 million, compared with net income of $19 million for 2002. SunCor’s performance is expected to augment the company’s earnings pending the outcome of APS’ rate case.

APS Energy Services continued to deliver solid earnings, while building a stellar customer reputation. Commodity electricity sales to key California businesses and government customers remained strong, and the company saw significant growth in energy services and energy efficiency sales in Arizona, California and Nevada. Northwind, the company’s district cooling and heating operations expanded from downtown Phoenix, adding operation of a site in Tucson, Ariz.