PHOENIX, Ariz. - As a part of its transition to a competitive market in the electric utility industry, Arizona Public Service and its parent company Pinnacle West Capital Corporation today announced new senior management assignments and responsibilities at Pinnacle West.

"Changes in the industry require us to make changes in our business," said Bill Post, Chief Executive Officer of APS and Pinnacle West Capital Corporation. "The management assignments approved by the Pinnacle Board today are a logical extension of structural changes made last year acknowledging the division of the traditional, vertically-integrated utility into three separate operating units - generation, distribution, and energy services."

"Re-deployment of selected shared services to the parent company is intended to capture greater efficiencies throughout the organization. Today's move puts the right people in the right place to maximize operational efficiency." 

APS officers newly elected to the Pinnacle West officer staff and their titles are as follows: Armando Flores, Executive Vice President, Corporate Business Services; John Bohon, Vice President, Corporate Services and Human Resources; Edward Fox, Vice President, Communications, Environment and Safety; Nancy Loftin, Vice President and General Counsel; and Chris Froggatt, Controller.

Promoted to vice president and newly elected to the Pinnacle West officer staff are Robert S. Aiken, Vice President, Federal Affairs and Martin L. Shultz, Vice President, Governmental Affairs.

The newly elected officers will join the current senior management team, which includes Bill Post, Chief Executive Officer; Richard Snell, Chairman; George Schreiber, President and Chief Financial Officer; James Kunkel, Vice President; Faye Widenmann, Vice President and Secretary; and Michael Palmeri, Treasurer.

Contacts

APS, Arizona's largest and longest-serving electric utility, provides wholesale or retail electric service to the entire state with the exception of Tucson and about one-half of the Phoenix area. APS, with headquarters in Phoenix, is the principal subsidiary of Pinnacle West (NYSE:PNW).

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.