Pinnacle West stock outperformed the S&P 500 Index again in 2004. Pinnacle West’s total return for 2004 was 16 percent, compared to 10.8 percent for the S&P 500.

Accomplishments

• We serve 225 customers for every employee, compared with fewer than 200 customers per employee in 1999 – a better than 11 percent efficiency increase.
• APS has significantly and steadily improved system reliability. In 1996, the average customer experienced 1.5 outages in a year. In 2004, that number decreased to about one outage – a 33 percent improvement.
• In both the latest J.D. Power Residential and Business Customer Satisfaction Surveys, APS earned the second highest ranking among utilities in the West in overall customer satisfaction, and ranked first among investor-owned utilities in the region.
• Improved efficiency and streamlined processes allowed APS to reduce customer electricity prices by about 16 percent since 1993.
• Sixteen APS line trucks and 40 crew members trekked across the country this summer to lend a much needed hand to overwhelmed Florida electric crews restoring power after the state’s devastating hurricane season.
   

In 2005, the peak energy demand of our customers is projected to increase 350 million watts over 2004. This increase represents enough energy to serve the equivalent of 100,000 Arizona homes.