PHOENIX- The Pinnacle West Capital Corporation (NYSE: PNW) board of directors today announced a dividend increase of approximately 6.3 percent or $0.10 per share annually. The board’s action will result in an indicated annual dividend of $1.70 per share, or $0.425 per share quarterly, and represents the ninth consecutive increase of this magnitude since the dividend was reinstated in 1993. The declared dividends are payable December 1, 2002, to shareholders of record on November 1, 2002.

Earnings Release, Webcast and Conference Call

Pinnacle West plans to release its 2002 third quarter earnings on Monday, October 28, 2002. That same day, the Company invites interested parties to listen to the live webcast of management’s conference call to discuss the third quarter earnings at 10 a.m. (ET). The call will be available online live 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 (212) 346-6479 and enter reservation number 20942020. A replay of the call also will be available until noon (ET), Monday, November 4, 2002, by calling (800) 633-8284 and entering reservation number 20942020.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $8 billion. Through its subsidiaries, the company generates, sells and delivers electricity and sells electricity and 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