PHOENIX, ARIZ. - Pinnacle West Capital Corporation (NYSE:PNW) today announced a dividend increase of approximately 7.7 percent or ten cents per share annually. The board's action will result in an indicated annual dividend of $1.40 per share (35 cents per share quarterly). The declared dividends are payable December 1, 1999 to shareholders of record on November 1, 1999.

Chief Executive Officer Bill Post said the company's dividend policy calls for annual increases by relatively consistent dollar amounts, which will continue dividend growth at a pace well above the industry average but at a payout ratio well below the industry average.

"Our ongoing dividend strategy provides us with considerable flexibility, which is a competitive advantage for this company," said Post.

Pinnacle West is a Phoenix-based holding company with consolidated assets of $7 billion. Through its subsidiaries, including Arizona Public Service, the company generates, sells and delivers electricity and sells energy-related products and services to retail and wholesale customers in the western United States. SunCor Development, its real estate subsidiary, develops residential, commercial and industrial real estate projects.

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 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.

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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.