PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) Senior Vice President and Chief Financial Officer James R. Hatfield announced today a number of organizational reporting changes designed to provide better alignment and focus to the Company’s financial group. The changes take effect Jan. 1, 2009.

Under the new structure, current Vice Presidents Chris Froggatt and Barbara Gomez will switch positions, with Froggatt assuming the role of Vice President and Treasurer, and Gomez being named Vice President, Controller and Chief Accounting Officer.

Hatfield also announced the hiring of Denise R. Danner as Vice President and Controller for Arizona Public Service (APS), the Company’s principal subsidiary, effective Jan. 5, 2009. Danner, who will report directly to Gomez, joins APS from Allied Waste Industries, Inc. where she has served as Senior Vice President, Controller and Chief Accounting Officer since September 2007. Before Allied Waste, she was Vice President, Controller and Chief Accounting Officer for Phelps Dodge Corporation and prior to that served as Controllerof Wildblue Communications, Inc.

“The changes are designed to strengthenour team and continue our efforts to improve the level of performance that benefits both customers and shareholders,” said Hatfield. “With the worst financial market turmoil our country has seen in decades, it is more important than ever to have an experienced and talented financial team that can help us maintain access to capital investment, while ensuring we are doing all we can to lower internal operating expenses without jeopardizing safe and reliable electricity service to our one million-plus customers.”

Hatfield added that the reorganization not only strengthens the Company by ensuring fresh perspectives across all financial functions, but it “provides career development opportunities for Gomez and Froggatt, while adding depth and bench strength with the addition of Danner, an experienced controller.”

Other positions now reporting directly to Hatfield include the Company’s Director of Investor Relations and its Director of Tax Services. Hatfield said elevation of the tax reporting relationship directly to the CFO is consistent with organizational “best practices.” Additionally, the Company’s Director of Supply Chain Management and Group Leader Risk/Insurance Management will report directly to Gomez.

Pinnacle West Vice President of Human Resources Lori Sundberg said the organizational changes reinforce the Company’s commitment to developing its employees at all levels of the business. “Talent management and development is one of our company-wide strategic priorities,” she said. “These moves are a great example of how we are working to strengthen our leadership team and improve succession pipelines.”

Pinnacle West is a Phoenix-based company with consolidated assets of about $11 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:
Alan Bunnell, (602) 250-3376

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