PHOENIX- Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of $0.45 per share of common stock, payable on September 1, 2004, to shareholders of record on August 2, 2004.

Pinnacle West’s board in October 2003 increased the dividend by approximately 5.9 percent or $0.10 per share annually. This prior action resulted in an indicated annual dividend of $1.80 per share, or $0.45 per share quarterly, and represented the 10th consecutive annual increase of this magnitude.

Earnings Release, Webcast and Conference Call
Pinnacle West plans to release its 2004 second-quarter results on Thursday, July 29, 2004. That same day at 12 noon(ET), the Company invites interested parties to listen to the live webcast of management’s conference call to discuss earnings and recent developments. The webcast can be accessed at www.pinnaclewest.com/main/pnw/investors/presentations/default.html and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 8376241. A replay of the call also will be available until 12 midnight (ET), Thursday, August 5, 2004, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering reservation number 8376241.

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
Lisa Malagon, (602) 250-5671