Pinnacle West Stakes Claim in Growing Western Market Shareholders Elect Seven Directors At Annual Meeting


LITCHFIELD PARK, Ariz. - Staking its claim in the growing western market, Pinnacle West Capital Corporation (NYSE: PNW) will concentrate on its electricity production and delivery business, Chief Executive Officer Bill Post said at the Company’s Annual Meeting of Shareholders held today in Litchfield Park, Arizona.

"We are executing an aggressive strategy to succeed in the business we know best, in an area of the country we know best, with the men and women who have a proven track record for producing results," Post said. "We're not interested in diversification or in investing abroad. We intend to stay in our core business in our geographical area."

Pinnacle West previously announced plans to expand its generation business through building and purchasing additional facilities. The Company will build a two-unit, combined-cycle plant at its existing West Phoenix Power Station and a combined-cycle, four-unit Redhawk Power Plant near the Palo Verde Nuclear Generating Station, west of Phoenix. Pinnacle also has announced plans to purchase Southern California Edison's ownership of Palo Verde and the Four Corners Power Plant in Farmington, N.M. Additionally, the Company has announced a partnership with Reliant Energy involving two of the Redhawk units and three gas-fired units at two Reliant sites in Nevada.

In his remarks to shareholders, Post cited a number of key highlights for the past year. These included:

  • Customer price decreases for the fifth year in a row, totaling 9 percent since 1994. (By 2004, Arizona Public Service (APS) will have reduced prices for residential and small-business customers by 16 percent over a 10-year period.);
  • Superior power plant performance at both the Company’s nuclear and fossil-fueled facilities. (For the fifth year in a row, the Palo Verde nuclear station produced more power than any other facility in the U.S., and the Company’s fossil plants performed far above the industry average.);
  • Strong customer growth of about 4 percent, nearly four times the national average;
  • An 11 percent growth in income from continuing operations; and
  • Earnings of $15 million in non-utility operations, 50 percent more than in 1998.

Chairman Richard Snell officiated at the business portion of the meeting, during which Pinnacle West shareholders elected seven directors to the Company’s board and defeated a shareholder proposal.

Newly elected to the Pinnacle West board were Robert G. Matlock (66), an independent management consultant; Kathryn L. Munro (51), chairman of BridgeWest L.L.C., an investment company; and Bruce J. Nordstrom (50), a certified public accountant with Nordstrom and Associates. All have served on the APS board. Election of the three increases board membership to 12.

Also re-elected to the board were Pamela Grant (61), civic leader and a board member since 1985; Martha O. Hesse (57), president of Hesse Gas Co. and a director since 1991; William S. Jamieson (56), president of the Institute for Servant Leadership and a director since 1991; and Richard Snell (69), chairman of the board since 1990 and a board member since 1985.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $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 Development Company, and has venture capital and other investments through El Dorado Investment Company.

Full text of Bill Post speech is available online.


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.

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