PHOENIX – GenWest and Southern Nevada Water Authority, co-owners of the 570-megawatt Silverhawk Power Station, announced today that the plant has completed extensive performance and reliability testing and is commercially available. Pinnacle West Energy, a subsidiary of Pinnacle West Capital Corp. (NYSE:PNW), will operate Silverhawk on behalf of the two owners.

Construction of the $400 million, natural gas-fired, combined-cycle unit was completed ahead of schedule and under budget. Construction on the plant, which is located about 20 miles north of Las Vegas, began in the summer of 2002. Southern Nevada Water Authority purchased its 25 percent share of the plant today for about $100 million cash. GenWest, a limited liability corporation formed by Pinnacle West Energy, owns the remaining 75 percent of Silverhawk.

“Industry forecasts and population growth show the increasing need for new generating resources, just as we experienced a few years ago,” said Jim Levine, President and Chief Executive Officer of Pinnacle West Energy. “The rapid growth inـNevadaـand throughout the West will continue to put increasing pressure on energy companies to keep pace with the needs of consumers, and plants like Silverhawk will be essential to meet those needs.”

This is the first generating unit owned by Pinnacle West that uses the latest technology to “dry cool” the plant. Employing this more expensive technology helps Silverhawk support Nevada’s water conservation efforts. Dry-cooled plants require about one-tenth of the water needed by plants cooled by water.

The Southern Nevada Water Authority is a cooperative agency formed in 1991 to address Southern Nevada's unique water needs on a regional basis, including managing water resources, conservation, water quality and the construction and operation of regional water infrastructure. The SNWA is nearing completion of a $2.1-billion Capital Improvements Program. Member agencies include: Boulder City, Henderson, Las Vegas, North Las Vegas, Big Bend Water District, Clark County Water Reclamation District and the Las Vegas Valley Water District.

Pinnacle West Capital Corp. is a Phoenix-based company with consolidated assets of approximately $9.4 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. It also develops residential, commercial and industrial real estate projects.

Contacts

Media:
Sheri Foote, (602) 250-2363 or (602) 684-1332 (mo.)
Alan Bunnell, (602) 250-3376

Analyst:
Rebecca Hickman, (602) 250-5668