PHOENIX- Pinnacle West Capital Corporation’s (NYSE: PNW) board of directors today declared a quarterly dividend of $0.425 per share of common stock, payable on March 1, 2003, to shareholders of record on February 3, 2003.

Pinnacle West’s board in October 2002 increased the dividend by approximately 6.3 percent or $0.10 per share on an annual basis. The board’s action resulted in an indicated annual dividend of $1.70 per share, or $0.425 per share quarterly, and represented the ninth consecutive increase of this magnitude since the dividend was reinstated in 1993.

For the five-year period 1998-2002, Pinnacle West grew its dividend at an average annual rate of 7.2 percent, ranking first among U.S. electric utilities. Future growth will be dependent on a number of factors including payout ratio trends, free cash flow, and financial market conditions.

Earnings Release, Webcast and Conference Call

Pinnacle West plans to release its 2002 year-end earnings on Tuesday, February 4, 2003. That same day at 10 a.m. (ET), the Company invites interested parties to listen to the live webcast of management’s conference call to discuss earnings and recent developments. The webcast can be accessed at www.pinnaclewest.com/investors/presentations/default.html and will be available for replay on the website for 30 days. To access the live conference call by telephone, dial (877) 356-3961 and enter reservation number 7575985. A replay of the call also will be available until 12 noon (ET), Tuesday, February 11, 2003, by calling (800) 642-1687 in the U.S. and Canada or (706) 645-9291 internationally and entering reservation number 7575985.

Pinnacle West is a Phoenix-based company with consolidated assets of approximately $8.5 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:
Alan Bunnell, (602) 250-3376

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