PHOENIX- Pinnacle West Capital Corporation (NYSE: PNW) announced today the pricing of its previously announced public offering of 5.7 million shares of common stock at $31.50 per share.

These securities will be issued under a shelf registration statement previously filed with the Securities and Exchange Commission. The transaction is expected to close on December 23, 2002, subject to customary closing conditions.

In connection with the offering, the Company has granted the underwriters an option for a period of 30 days to purchase up to an additional 855,000 shares of the Company’s common stock to cover over-allotments, if any.

The net proceeds from the sale of the offering will be used to pay down debt incurred to finance the development and construction of new generation facilities.

The joint book-running lead managers for the offering are Credit Suisse First Boston and Salomon Smith Barney Inc.

Investors can obtain a copy of the final prospectus supplement relating to the offering from Credit Suisse First Boston, Prospectus Department, One Madison Ave., New York, N.Y., 10010 or by calling (212) 325-2580; or from Salomon Smith Barney Inc. at Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY, 11220 or by calling (718) 567-2000.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $8.5 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