PHOENIX - Pinnacle West Capital Corporation (NYSE: PNW) today reported consolidated net income for the quarter ended March 31, 2004, of $30.2 million, or $0.33 per diluted share of common stock. This result compares with net income of $25.3 million, or $0.28 per share, for the comparable quarter a year ago.

The improved results were positively impacted by higher retail sales volumes at Arizona Public Service (APS) due to customer growth and weather, which in 2004 included the hottest March on record.    Compared with the first quarter a year ago, electricity consumption by APS retail customers increased 10.3 percent in 2004.     

“The rapidly increasing demand for electricity in Arizona underscores the critical importance of staying ahead of the growing energy needs of our customers,” said Chairman Bill Post. “Meeting that challenge requires tenacity and investment.”   

In addition to 3.4 percent customer growth (about three times the national average) and weather effects, the quarter-to-quarter comparison also was positively affected by lower regulatory asset amortization. These positive factors were partially offset by a net increase in costs related to placing a new electricity-generating unit into service in mid-2003; and replacement power costs related to unplanned power plant outages.

For more information on Pinnacle West’s operating statistics and earnings, please visit http://www.pinnaclewest.com/main/pnw/investors/financials/quarterly/default.html.

Conference Call

Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the Company’s 2004 first quarter earnings and recent developments at 12 noon(ET) today, May 7. The webcast can be accessed at www.pinnaclewest.com/main/pnw/investors/presentations/default.html and will be available for replay on the web site for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 6629019. A replay of the call also will be available until 12 midnight (ET), Friday, May 14, 2004, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering reservation number 6629019.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $9.4 billion. Through its subsidiaries, the Company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States.  It also develops residential, commercial, and industrial real estate projects.

Media:
Alan Bunnell, (602) 250-3376

Analyst:
Rebecca Hickman, (602) 250-5668