Pinnacle West Capital Corporation · NYSE:PNW
Pinnacle West Capital — Lehman Brothers Energy/Power Conference 2003
32 slides from Pinnacle West Capital's conference presentation, Sep 2, 2003
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Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements based on current expectations and we assume no obligation to update these statements or make any further statements on any of these issues, except a5 required by applicable law. These forward-looking statements are ofte
Slide 3: Pinnacle West Capital Corporation
Pinnacle West Capital Corporation me © Largest electric er utility in Arizona Prnvacie West m Headquartered in Phoenix, Arizona, 6th largest U.S. city ol Ge 4 “yo © Assets of $9 billion
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Slide 6: Solid Customer Growth Foundation
Solid Customer Growth Foundation Leading 2002 Population Growth States
Slide 7: Capitalizing on Superior Customer Growth
Capitalizing on Superior Customer Growth Leading 2002 Population Growth States APS 2nd in customer growth nationally
Slide 8: APS Service Territory Has Fastest Growing Cities in U.S.
APS Service Territory Has Fastest Growing Cities in U.S. “Of the top 10 largest cities in the country, Phoenix and San Antonio grew the fastest between 2000 and 2002, at nearly 4%.” “In addition to being among the five fastest growing cities from 2000 to 2002, Gilbert, Chandler and Peoria, all citie
Slide 9: Superior APS Retail Customer Growth
Superior APS Retail Customer Growth Percent 1998 1999 2000 2001 2002 2003 2004 2005 Projected j= APS — Industry Average
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Slide 11: Maintaining Operational Excellence
Maintaining Operational Excellence Generation ™ Palo Verde — top U.S. power producer © Strong fossil availability © New plant construction on target Delivery © High customer growth and satisfaction © Superior reliability © Transmission and distribution expansion to meet growth and sustain reliabilit
Slide 12: Focusing on Operational Efficiency
Focusing on Operational Efficiency Average Customers per Employee 150 11% Efficiency Improvement 145 140 135 130 + 1998 1999 2000 2001 2002
Slide 13: Excelling in Customer Satisfaction
Excelling in Customer Satisfaction 120 110 100 90 | | | | 80 | 70 60 Source: J.D. Power & Assaciates 2003 Electric Utility Residential Customer Satisfaction Survey (56 Companies)
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Slide 16: APS Regulatory Strategy
APS Regulatory Strategy = Relationships built on consistency, accountability, performance and trust © Strong presentation of APS position ™ Focus on reliability issue ™ Settlement opportunities
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Slide 18: Changes in Consumer Price Index and APS Prices Since 1991
Changes in Consumer Price Index and APS Prices Since 1991 Percent an cpi4ss% 30 20 APS 46% 91 ‘92 ‘93 ‘94 95 ‘96 ‘97 98 ‘99 ‘00 ‘01 02 ‘03 ‘04
Slide 19: Average Southwestern U.S. Residential Price Ranking
Average Southwestern U.S. Residential Price Ranking* @kWh 16 14 oN Rm 12 10 SRP PNM APS TEP NP! PPW © EE PG&E SCE SDG&E * As of December 31, 2002
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Slide 21: Planning for Growth and Reliability
Planning for Growth and Reliability APS System Load and Resources Peak System Requirement + 15% Reserves Resource Deficit & Tra ig/ARS Gapact o} 2003 2004 2005 2006 2007 2008 2009 2010
Slide 22: General Rate Case Milestones
General Rate Case Milestones Filing = = Testimony: January - March 2004 L, =— Ly perepecen Order, L, Final/order
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Slide 24: Maintaining Financial Strength & Liquidity
Maintaining Financial Strength & Liquidity Parent Company Debt Repayment Plans 003 Sources* ¥ $500M intercompany loan to APS ™ $80-$100M SunCor asset sales Uses ¥ $225M bridge debt ¥ $250M floating rate notes = $25M private placement 200. Sources* m™ $80 - $100M SunCor asset sales = $100M Southern N
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Slide 27: Balancing Financial Strength & Growth
Balancing Financial Strength & Growth Consolidated Debt Ratio* Capital Expenditures Percent $ Millions 60 2005 Target of 50% 1,200 SS. 900 50 _ 600 40 300 30 0 OO R20Ue. 200 2001 2002 2003 2004 2005 — Projected — * Includes Palo Verde salelleaseback = Other ‘= PWEC Generation "= APS Generation ™ Del
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Slide 29: Consolidated Earnings Drivers
Consolidated Earnings Drivers 2003 and 2004 Retail growth Regulatory asset amortization SunCor EITF 02-03 Cost reduction initiatives Higher gas and purchased power costs Pension and other O&M costs Marketing and trading Unregulated generation General rate case outcome Weather, inflation and other 20
Slide 30: Creating Long-Term Shareholder Value
Creating Long-Term Shareholder Value Top Dividend Growth 1998 - 2002 Percent ae PNW
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Link to searchable text of slide shown above Searchable text section of graphics shown above Exhibit 99.1 Lehman Brothers Energy/Power Conference Donald E. Brandt [GRAPHIC] Pinnacle West Capital Corporation September 3, 2003 Forward-Looking Statements This presentation contains forward-looking state
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