PHOENIX – The Pinnacle West Capital Corporation (NYSE: PNW) board of directors today announced a dividend increase of $0.10 per common share annually, or 5 percent. The board’s action will result in an indicated annual dividend of $2.10 per common share, or $0.525 per share quarterly. This quarter’s declared dividends are payable December 1, 2006, to shareholders of record on November 1, 2006.

In addition, Pinnacle West plans to release its 2006 third-quarter results on Friday, October 27. That same day at 12 noon (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 9001144. A replay of the call also will be available until 11:55 p.m. (ET), Friday, November 3, 2006, 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 $11 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