PHOENIX – The Pinnacle West Capital Corporation (NYSE: PNW) board of directors today announced a dividend increase of $0.10 per common share annually, or about 5.3 percent. The board’s action will result in an indicated annual dividend of $2.00 per common share, or $0.50 per share quarterly. This quarter’s declared dividends are payable December 1, 2005, to shareholders of record on November 1, 2005.

In addition, Pinnacle West plans to release its 2005 third-quarter results on Thursday, October 27. That same day at 11 a.m. (ET), the Company invites interested parties to listen to a live web cast of management’s conference call to discuss earnings and recent events. The web cast can be accessed at www.pinnaclewest.com/presentations 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 1347027. A replay of the call also will be available until 11:55 p.m. (ET), Wednesday, November 2, 2005, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and using the same reservation number.

Pinnacle West is a Phoenix-based company with consolidated assets of about $10.7 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