APS CEO Jack Davis Announces Retirement.

Don Brandt to Take Reins of Arizona Utility

PHOENIX -- Jack Davis has announced his retirement as President and Chief Operating Officer of Pinnacle West Capital Corporation (NYSE: PNW) and Chief Executive Officer of Arizona Public Service Co. (APS), the state's largest electricity provider.

Pinnacle West Chairman Bill Post announced that the Board of Directors has named current APS President Don Brandt to fill the Chief Executive Officer position held by Davis. Actions are effective March 1, 2008.

Post said the Company will look to Brandt to continue the focus on operational and customer service excellence that have been hallmarks of Davis' 35-year history with the Company. As President and CEO, Brandt will be responsible for all operations at APS.

"With significant corporate success and personal leadership, Jack successfully maneuvered the Company through a period of significant electric market turmoil earlier this decade and record growth at our company," Post said. "His commitment and dedication to APS and our customers has been exceptional.

"Don Brandt has a keen awareness of APS challenges, including the return of the Palo Verde Nuclear Generating Station to the highest level of performance, and is dedicated to continuing to provide the resources required to do the job, which has been proceeding very well," Post said.

With more than 20 years of experience in the industry, Brandt joined the company in 2002 as Senior Vice President and Chief Financial Officer. He was promoted to Executive Vice President in 2003 and President of APS in 2006.

Davis joined APS in 1973 as a systems planning engineer, and prior to taking the top job at APS, held numerous management and senior positions throughout the ranks of the company. He was elected to the Pinnacle West board of directors in 2001.

During his more than three-decade tenure at the company, Davis oversaw a period of remarkable growth, with Arizona surpassing Nevada as the fastest growing state in the country. With all-time electricity usage peaks being established almost yearly at APS, and its power plants setting records for performance and safety, Davis oversaw billions of dollars of infrastructure investment while achieving record system reliability marks and operating results.

Behind the relentless focus Davis placed on the interests of the customer, APS became a top-tier leader in customer satisfaction for both residential and business customers. Moreover, Davis navigated through a period in industry history - including the western energy crisis - where regulatory models varied widely from the traditional to the non-traditional.

"APS and the men and women who run it will be the beneficiaries of Jack's many leadership contributions to the Company and its culture for years to come," added Post.

APS, Arizona's largest and longest-serving electricity utility, serves more than 1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the largest subsidiary of Pinnacle West Capital Corp. (NYSE: PNW)