3 Months Ended September 30,

9 Months Ended September 30,

Line

2012

2011

Incr (Decr)

2012

2011

Incr (Decr)

EARNINGS CONTRIBUTION BY SUBSIDIARY (Dollars in Millions)

1

Arizona Public Service

$

256

$

254

$

2

$

392

$

342

$

50

2

El Dorado

(2

)

—

(2

)

(2

)

(2

)

3

Parent Company

(1

)

(1

)

—

(6

)

(6

)

—

4

Income From Continuing Operations

253

253

—

384

336

48

Income (Loss) From Discontinued Operations - Net of Tax

5

SunCor

—

(2

)

2

(1

)

(2

)

1

6

Other

—

11

(11

)

—

13

(13

)

7

Total

—

9

(9

)

(1

)

11

(12

)

8

Net Income

253

262

(9

)

383

347

36

9

Less: Net Income Attributable to Noncontrolling Interests

8

7

1

24

20

4

10

Net Income Attributable to Common Shareholders

$

245

$

255

$

(10

)

$

359

$

327

$

32

EARNINGS PER SHARE BY SUBSIDIARY - DILUTED

11

Arizona Public Service

$

2.31

$

2.31

$

—

$

3.55

$

3.12

$

0.43

12

El Dorado

(0.02

)

—

(0.02

)

(0.02

)

—

(0.02

)

13

Parent Company

(0.01

)

—

(0.01

)

(0.06

)

(0.06

)

—

14

Income From Continuing Operations

2.28

2.31

(0.03

)

3.47

3.06

0.41

Income (Loss) From Discontinued Operations - Net of Tax

15

SunCor

—

(0.02

)

0.02

(0.01

)

(0.02

)

0.01

16

Other

—

0.10

(0.10

)

—

0.12

(0.12

)

17

Total

—

0.08

(0.08

)

(0.01

)

0.10

(0.11

)

18

Net Income

2.28

2.39

(0.11

)

3.46

3.16

0.30

19

Less: Net Income Attributable to Noncontrolling Interests

0.07

0.07

—

0.21

0.18

0.03

20

Net Income Attributable to Common Shareholders

$

2.21

$

2.32

$

(0.11

)

$

3.25

$

2.98

$

0.27

21

BOOK VALUE PER SHARE

$

37.01

$

35.67

$

1.34

$

37.01

$

35.67

$

1.34

COMMON SHARES OUTSTANDING (Thousands)

22

Average - Diluted

110,655

109,861

794

110,420

109,683

737

23

End of Period

109,589

109,171

418

109,589

109,171

418

3 Months Ended September 30,

9 Months Ended September 30,

Line

2012

2011

Incr (Decr)

2012

2011

Incr (Decr)

ELECTRIC OPERATING REVENUES (Dollars in Millions)

REGULATED ELECTRICITY SEGMENT

Retail

24

Residential

$

606

$

622

$

(16

)

$

1,296

$

1,255

$

41

25

Business

436

440

(4

)

1,129

1,119

10

26

Total retail

1,042

1,062

(20

)

2,425

2,374

51

Wholesale revenue on delivered electricity

27

Traditional contracts

17

24

(7

)

51

55

(4

)

28

Off-system sales

27

14

13

64

47

17

29

Transmission for others

10

8

2

23

24

(1

)

30

Other miscellaneous services

9

16

(7

)

40

71

(31

)

31

Total regulated operating electricity revenues

1,105

1,124

(19

)

2,603

2,571

32

MARKETING AND TRADING

32

Electricity and other commodity sales

—

—

—

—

—

—

33

Total operating electric revenues

$

1,105

$

1,124

$

(19

)

$

2,603

$

2,571

$

32

ELECTRIC SALES (GWH)

REGULATED ELECTRICITY SEGMENT

Retail sales

34

Residential

4,819

5,072

(253

)

10,705

10,692

13

35

Business

4,245

4,360

(115

)

11,357

11,380

(23

)

36

Total retail

9,064

9,432

(368

)

22,062

22,072

(10

)

Wholesale electricity delivered

37

Traditional contracts

161

361

(200

)

658

774

(116

)

38

Off-system sales

911

550

361

2,429

1,886

543

39

Retail load hedge management

140

53

87

220

122

98

40

Total regulated electricity

10,276

10,396

(120

)

25,369

24,853

516

MARKETING AND TRADING

41

Wholesale sales of electricity

—

—

—

—

—

—

42

Total electric sales

10,276

10,396

(120

)

25,369

24,853

516

3 Months Ended September 30,

9 Months Ended September 30,

Line

2012

2011

Incr (Decr)

2012

2011

Incr (Decr)

AVERAGE ELECTRIC CUSTOMERS

Retail customers

43

Residential

1,000,860

989,036

11,824

1,003,255

993,777

9,478

44

Business

127,359

126,118

1,241

127,066

125,823

1,243

45

Total

1,128,219

1,115,154

13,065

1,130,321

1,119,600

10,721

46

Wholesale customers

51

45

6

49

46

3

47

Total customers

1,128,270

1,115,199

13,071

1,130,370

1,119,646

10,724

48

Customer growth (% over prior year)

1.2

%

0.4

%

0.8

%

1.0

%

0.4

%

0.6

%

RETAIL SALES (GWH) - WEATHER NORMALIZED

49

Residential

4,886

4,849

37

10,702

10,707

(5

)

50

Business

4,305

4,326

(21

)

11,386

11,425

(39

)

51

Total

9,191

9,175

16

22,088

22,132

(44

)

RETAIL USAGE (KWh/Average Customer)

52

Residential

4,815

5,128

(313

)

10,670

10,759

(89

)

53

Business

33,330

34,570

(1,240

)

89,375

90,442

(1,067

)

RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)

54

Residential

4,881

4,902

(21

)

10,667

10,775

(108

)

55

Business

33,806

34,304

(498

)

89,611

90,800

(1,189

)

ELECTRICITY DEMAND (MW)

56

Native load peak demand

7,212

7,087

125

7,212

7,087

125

WEATHER INDICATORS - RESIDENTIAL

Actual

57

Cooling degree-days

1,170

1,383

(213

)

1,738

1,758

(20

)

58

Heating degree-days

—

—

—

426

614

(188

)

59

Average humidity

34

%

27

%

7

%

26

%

21

%

5

%

10-Year Averages

60

Cooling degree-days

1,234

1,234

—

1,733

1,733

—

61

Heating degree-days

—

—

—

513

513

—

62

Average humidity

29

%

29

%

—

24

%

24

%

—

3 Months Ended September 30,

9 Months Ended September 30,

Line

2012

2011

Incr (Decr)

2012

2011

Incr (Decr)

ENERGY SOURCES (GWH)

Generation production

63

Nuclear

2,482

2,435

47

7,178

7,061

117

64

Coal

2,990

3,382

(392

)

7,938

9,319

(1,381

)

65

Gas, oil and other

2,490

1,991

499

5,914

4,030

1,884

66

Total generation production

7,962

7,808

154

21,030

20,410

620

Purchased power

67

Firm load

2,662

2,867

(205

)

5,519

4,497

1,022

68

Marketing and trading

74

269

(195

)

244

1,697

(1,453

)

69

Total purchased power

2,736

3,136

(400

)

5,763

6,194

(431

)

70

Total energy sources

10,698

11,082

(246

)

26,793

26,604

189

POWER PLANT PERFORMANCE

Capacity Factors

71

Nuclear

98

%

96

%

2

%

95

%

94

%

1

%

72

Coal

77

%

88

%

(11

)%

69

%

81

%

(12

)%

73

Gas, oil and other

33

%

26

%

7

%

26

%

18

%

8

%

74

System average

57

%

54

%

3

%

50

%

50

%

—