PHOENIX- William L. Stewart, President of Pinnacle West Energy, today announced executive management changes, including the appointment of James M. Levine as Chief Operating Officer and Warren C. Kotzmann as Vice President of Business and Corporate Services for Pinnacle West Energy, the wholesale generating subsidiary of Pinnacle West Capital Corporation (NYSE: PNW).

In his role as COO, Levine will have day-to-day oversight of nuclear and fossil generation, fuel procurement and related functions.

"Jim has been a driving force behind the successful operations of our generation business for 12 years," Stewart said. "With nearly 30 years of industry experience, Jim has earned respect for his leadership in the industry and throughout the company. He brings a degree of critical insight and expertise to his new role that will be essential as Pinnacle West Energy continues to strengthen its position as a leading energy producer in the West."

Levine arrived at affiliate APS in 1989 to serve as the Company’s Vice President of Nuclear Production at the Palo Verde Nuclear Generating Station. In 1996, he took the helm as the Company’s Senior Vice President of Nuclear Generation where he had responsibility for all nuclear-related activities. In July 1999, Levine assumed the role as the Company’s Executive Vice President of Generation.

Reporting to Levine will be Gregg Overbeck, Senior Vice President-Nuclear; John Denman, Vice President-Fossil Generation; Tom Carlson, Director-Generation Fuels Procurement; and Ellen Willhite, Manager-Generation Support Services.

In addition, Stewart appointed Kotzmann as Vice President of Business and Corporate Services. Kotzmann, who will report directly to Stewart, will be responsible for directing business development and overseeing business functions of Pinnacle West Energy in connection with the Company’s continued expansion of its competitive generation business. Prior to this new post at Pinnacle West Energy, Kotzmann held the position of Director of Transition and Acquisitions for Pinnacle West Capital Corporation since 1999. He has also served as manager of corporate planning for Pinnacle West and as an attorney for APS.

"Warren has been key to the success of our expansion program," Stewart said. "He has the proven balance of business acumen and intuition that is invaluable in our very dynamic industry."

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.

Contacts

Media:
Sheri Foote, (602) 250-2363

Analyst:
Rebecca Hickman, (602) 250-5668
Lisa Malagon, (602) 250-5671

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.