PHOENIX, ARIZ. - Pinnacle West Capital Corporation (NYSE:PNW) today reported consolidated net income for the quarter ended March 31, 2000, of $54.1 million or $0.64 per diluted share of common stock, compared with $30.7 million or $0.36 per diluted share for the corresponding quarter a year ago. Significant improvement in consolidated results came from the company's non-utility subsidiaries.

El Dorado Investment Company, Pinnacle West's investment subsidiary, reported increased earnings for the quarter of $19.1 million or $0.22 per share, related to quarterly adjustment of the value of its investment in a technology related venture capital partnership. Further earnings growth related to El Dorado's investments is dependent on future stock market conditions, as the investments are valued each quarter based on market prices and other factors.

SunCor Development Company, the company's real estate subsidiary, reported net income of $5.3 million compared with $1.3 million for the prior-year period, due primarily to an increase in land and home sales.

"We are pleased that our non-utility subsidiaries are producing earnings for our shareholders," said Bill Post, Chief Executive Officer. "This, combined with continuing strong performance in our core electricity business, provides us the opportunity for earnings growth this year despite the completion of the amortization of investment tax credits in 1999."

In 1999, the investment tax credit amortization for the year totaled $24 million or $0.28 per share of common stock. The amortization was recorded in 1999 and prior years in accordance with a 1994 regulatory agreement.

For the quarter, the company's utility, Arizona Public Service Company (APS), benefited from continuing strong customer growth of 4.1 percent, more than four times the national average. This growth offset the prior-year amortization of investment tax credits, an electricity price decrease as part of APS' commitment to reduce rates by 16 percent from 1994 to 2004, and the timing of utility operations and maintenance expenses.

APS first-quarter earnings were flat at $32.8 million.

Also today, the Pinnacle West board of directors declared a quarterly dividend of 35 cents per share of common stock, payable on June 1, 2000, to shareholders of record on May 1, 2000.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $6.7 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. The company also develops residential, commercial and industrial real estate projects through SunCor, and has some venture capital and other investments through El Dorado.

Pinnacle West Capital Corporation Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
(Unaudited)

Certain prior year amounts have been restated to conform to the 2000 presentation.

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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.