Line

3 Months Ended September 30,

9 Months Ended September 30,

2013

2012

Incr (Decr)

2013

2012

Incr (Decr)

EARNINGS CONTRIBUTION BY SUBSIDIARY (Dollars in Millions)

1

Arizona Public Service

 $

244

 $

256

 $

(12

)

 $

420

 $

392

 $

28

2

El Dorado

(4

)

(2

)

(2

)

(4

)

(2

)

(2

)

3

Parent Company

(5

)

(1

)

(4

)

(9

)

(6

)

(3

)

4

Income From Continuing Operations

235

253

(18

)

407

384

23

Income (Loss) From Discontinued Operations - Net of Tax

5

SunCor

-

-

-

-

(1

)

1

6

Other

-

-

-

-

-

-

7

Total

-

-

-

-

(1

)

1

8

Net Income

235

253

(18

)

407

383

24

9

Less: Net Income Attributable to Noncontrolling Interests

9

8

1

25

24

1

10

Net Income Attributable to Common Shareholders

 $

226

 $

245

 $

(19

)

 $

382

 $

359

 $

23

EARNINGS PER SHARE BY SUBSIDIARY - DILUTED

11

Arizona Public Service

 $

2.19

 $

2.31

 $

(0.12

)

 $

3.79

 $

3.55

 $

0.24

12

El Dorado

(0.03

)

(0.02

)

(0.01

)

(0.04

)

(0.02

)

(0.02

)

13

Parent Company

(0.04

)

(0.01

)

(0.03

)

(0.08

)

(0.06

)

(0.02

)

14

Income From Continuing Operations

2.12

2.28

(0.16

)

3.67

3.47

0.20

Income (Loss) From Discontinued Operations - Net of Tax

15

SunCor

-

-

-

-

(0.01

)

0.01

16

Other

-

-

-

-

-

-

17

Total

-

-

-

-

(0.01

)

0.01

18

Net Income

2.12

2.28

(0.16

)

3.67

3.46

0.21

19

Less: Net Income Attributable to Noncontrolling Interests

0.08

0.07

0.01

0.23

0.21

0.02

20

Net Income Attributable to Common Shareholders

 $

2.04

 $

2.21

 $

(0.17

)

 $

3.44

 $

3.25

 $

0.19

21

BOOK VALUE PER SHARE

 $

38.86

 $

37.01

 $

1.85

 $

38.86

 $

37.01

 $

1.85

COMMON SHARES OUTSTANDING (Thousands)

22

Average - Diluted

111,053

110,655

398

110,913

110,420

493

23

End of Period

110,037

109,589

448

110,037

109,589

448

See Glossary of Terms

Page 1 of 4

Line

3 Months Ended September 30,

9 Months Ended September 30,

2013

2012

Incr (Decr)

2013

2012

Incr (Decr)

ELECTRIC OPERATING REVENUES
(Dollars in Millions)

Retail

24

Residential

 $

626

 $

607

 $

19

 $

1,377

 $

1,296

 $

81

25

Business

457

435

22

1,205

1,129

76

26

Total retail

1,083

1,042

41

2,582

2,425

157

Wholesale revenue on delivered electricity

27

Traditional contracts

18

17

1

44

51

(7

)

28

Off-system sales

28

27

1

68

64

4

29

Native load hedge liquidation

4

4

-

8

3

5

30

Transmission for others

10

10

-

25

23

2

31

Other miscellaneous services

9

9

-

25

40

(15

)

32

Total wholesale

69

67

2

170

181

(11

)

33

Total electric operating revenues

 $

1,152

 $

1,109

 $

43

 $

2,752

 $

2,606

 $

146

ELECTRIC SALES (GWH)

Retail sales

34

Residential

4,752

4,819

(67

)

10,826

10,705

121

35

Business

4,239

4,245

(6

)

11,387

11,357

30

36

Total retail

8,991

9,064

(73

)

22,213

22,062

151

Wholesale electricity delivered

37

Traditional contracts

242

161

81

585

658

(73

)

38

Off-system sales

927

911

16

2,281

2,429

(148

)

39

Retail load hedge management

72

140

(68

)

92

220

(128

)

40

Total wholesale

1,241

1,212

29

2,958

3,307

(349

)

41

Total electric sales

10,232

10,276

(44

)

25,171

25,369

(198

)

See Glossary of Terms

Page 2 of 4

Line

3 Months Ended September 30,

9 Months Ended September 30,

2013

2012

Incr (Decr)

2013

2012

Incr (Decr)

AVERAGE ELECTRIC CUSTOMERS

Retail customers

42

Residential

1,015,082

1,000,860

14,222

1,017,516

1,003,255

14,261

43

Business

128,245

127,359

886

128,044

127,066

978

44

Total retail

1,143,327

1,128,219

15,108

1,145,560

1,130,321

15,239

45

Wholesale customers

53

51

2

52

49

3

46

Total customers

1,143,380

1,128,270

15,110

1,145,612

1,130,370

15,242

47

Total customer growth (% over prior year)

1.3%

1.2%

0.1%

1.3%

1.0%

0.3%

RETAIL SALES (GWH) - WEATHER NORMALIZED

48

Residential

4,815

4,897

(82)

10,603

10,571

32

49

Business

4,265

4,307

(42)

11,309

11,362

(53)

50

Total

9,080

9,204

(124)

21,912

21,933

(21)

51

Retail sales (GWH) (% over prior year)

(1.3)%

(0.1)%

RETAIL USAGE (KWh/Average Customer)

52

Residential

4,682

4,815

(133)

10,640

10,670

(30)

53

Business

33,057

33,330

(273)

88,931

89,375

(444)

RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer)

54

Residential

4,744

4,893

(149)

10,420

10,536

(116)

55

Business

33,255

33,815

(560)

88,323

89,417

(1,094)

ELECTRICITY DEMAND (MW)

56

Native load peak demand

6,927

7,207

(280)

6,927

7,207

(280)

WEATHER INDICATORS - RESIDENTIAL

Actual

57

Cooling degree-days

1,212

1,170

42

1,792

1,738

54

58

Heating degree-days

-

-

-

614

426

188

59

Average humidity

31%

34%

(3)%

24%

26%

(2)%

10-Year Averages

60

Cooling degree-days

1,245

1,245

-

1,725

1,725

-

61

Heating degree-days

-

-

-

506

506

-

62

Average humidity

28%

28%

-

23%

23%

-

See Glossary of Terms

Page 3 of 4

Line

3 Months Ended September 30,

9 Months Ended September 30,

2013

2012

Incr (Decr)

2013

2012

Incr (Decr)

ENERGY SOURCES (GWH)

Generation production

63

Nuclear

2,522

2,482

40

7,223

7,178

45

64

Coal

2,759

2,990

(231)

8,416

7,938

478

65

Gas, oil and other

2,310

2,490

(180)

4,820

5,914

(1,094)

66

Total generation production

7,591

7,962

(371)

20,459

21,030

(571)

Purchased power

67

Firm load

2,969

2,662

307

5,564

5,519

45

68

Marketing and trading

180

74

107

408

244

164

69

Total purchased power

3,149

2,736

413

5,973

5,763

209

70

Total energy sources

10,740

10,698

42

26,432

26,793

(362)

POWER PLANT PERFORMANCE

Capacity Factors

71

Nuclear

100%

98%