APS Names Schiavoni Senior VP of Fossil Generation.

New Hire to Replace Retiring SVP John Denman

PHOENIX -- Arizona Public Service Co. (APS) announced today that industry veteran Mark A. Schiavoni has been named Senior Vice President of Fossil Operations effective April 13.

Schiavoni, 53, joins APS from Exelon Corporation where he spent nine successful years, most recently as senior vice president of Exelon Generation and president of Exelon Power. At APS, he will be responsible for overseeing all facets of the company's non-nuclear generation operations and maintenance, including nearly 7,000 megawatts of fossil and renewable energy, outage and work management, plant engineering and technical support, and operational oversight of co-owned facilities.

Schiavoni succeeds John Denman, APS Senior Vice President of Fossil Operations, who has announced his retirement effective year-end after a distinguished 45-year APS career, including leading the Company's fossil generating plants the last 12 years. To ensure a seamless leadership transition, Denman will work alongside Schiavoni for a few months, after which he will work on several key projects through the remainder of the year.

"John Denman's leadership has yielded a track record and plant performance that is among the industry's best," said APS CEO Don Brandt. "Under John, our coal plants consistently produce top-quartile capacity factors, and our natural gas fleet provides us a flexible, cost-effective means of providing power to our customers when it's needed most. APS and our customers have benefited from John's dedicated service."

Schiavoni, who will report to APS President and COO Don Robinson, brings broad perspective and extensive leadership experience to his new position. He worked as a nuclear plant maintenance director for both Florida Power and Centerior Energy Corp. prior to joining Exelon in 2000 as a nuclear plant manager. Subsequently, he earned senior executive positions overseeing Exelon's fossil, hydroelectric and renewable facilities, as well as the construction and integration of new generation assets. Prior to his utility experience, Schiavoni spent 22 years in the U.S. Navy's nuclear program.

"We are very fortunate to secure the experience of a seasoned and capable leader who is respected throughout the industry," said Robinson. "At a time when the energy generating business is facing substantial change and new environmental pressures, Mark's knowledge provides our company with the strategic and operational talent needed to ensure continued top-tier performance and industry leadership that benefit our customers and shareholders."

APS, Arizona's largest and longest-serving electricity utility, serves about 1.1 million customers in 11 of the state's 15 counties. In 2008, APS won its second Edison Award in recognition of innovative leadership and operational excellence in the electric industry. Given annually by the Edison Electric Institute, the Edison Award is considered the industry's most prestigious honor. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW)