PHOENIX – Arizona Public Service Co. (APS) is investing in an electric future that offers customers state-of-the-art technological advances and greater control. That same theme of innovation and interactivity is clearly evident in the feature-filled 2007 online Annual Report of Pinnacle West Capital Corporation (NYSE: PNW), APS’ parent company.

Titled “Why We Build It,” Pinnacle West’s 2007 Annual Report is now live online at www.whywebuildit.com. The interactive site includes:

• A letter from Pinnacle West Chairman and CEO Bill Post
• Informative videos including messages from Post and Pinnacle West President Don Brandt
• A thought-provoking video about the “The Utility of the Future.”
• Energy ideas and thoughts from interested customers investors and other site visitors.

The Report’s title refers to the need for Pinnacle West and APS (Arizona’s largest and longest-serving electric company) to build the necessary infrastructure to power Arizona’s energy future. The company expects to invest $10 billion in the next decade to meet Arizona’s growth. In his letter, Bill Post discusses, among other issues, the critical importance and pressing nature of investing in the future of Arizona’s economy.

“The integrated, instantaneous electric system ranks as the most important infrastructure element of a modern economy,” Post writes in the letter. “Without plentiful and affordable electric power, our economy simply cannot grow. Unlike the need for a new road or public park, the demand for electricity cannot be deferred.”

In addition to videos and other informative content, Pinnacle West’s Annual Report also tells the stories of select APS customers and how those customers will also play important roles in Arizona’s energy future.

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.