PHOENIX- Arizona Public Service (APS) and its parent company, Pinnacle West Capital Corporation (NYSE: PNW), today announced a corporate realignment designed to better position its regulated and unregulated businesses in light of its current and anticipated operating circumstances.

"The regulatory environment in Arizona is being reshaped and we need to be positioned for the markets of the future," said Pinnacle West Chairman and CEO Bill Post.

Post said that Jack E. Davis, President of Energy Delivery and Sales for APS, has assumed the additional title and responsibilities of Chief Executive Officer of APS. Davis will report to Post and will be responsible for managing the regulated enterprise and assets of APS. The Company’s unregulated businesses and competitive generation in Pinnacle West Energy will remain at the holding company level, and Pinnacle West Energy President Bill Stewart will continue to report directly to Post.

"Jack Davis has guided APS through some volatile waters with results that stand up against any energy provider in the West, and we will need that same level of performance in order to prosper in tomorrow’s markets," Post said.

Davis is a graduate of New Mexico State University. He joined APS in 1973 as an engineer in the System Planning Department. Subsequently, he earned management positions overseeing Power Contracts, System Development and Power Operations, Fossil Generation, Transmission Systems, Customer Service, and Power Marketing & Trading at APS.

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 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:
Paul Reynolds, (602) 250-5656
Alan Bunnell, (602) 250-3376

Analyst:
Rebecca Hickman, (602) 250-5668

This press release contains forward-looking statements that involve risks and uncertainties, which include, but are not limited to, the ongoing restructuring of the electric industry; the outcome of the regulatory proceedings relating to the restructuring; regional economic and market conditions, which could affect customer growth and the cost of power supplies; the cost of debt and equity capital; weather variations affecting customer usage; and the strength of the real estate market. These factors and the other matters discussed above may cause future results to differ materially from historical results, or from results or outcomes currently expected or sought by the Company.