APS Seeks Additional Renewable Energy.

Company Issues Request For Proposal (RFP)

PHOENIX -- Arizona Public Service (APS) is requesting proposals for near- and long-term new sources of renewable energy that can be delivered to the company's electrical system. The Request For Proposal (RFP) includes solar, wind, hybrid wind and solar, biomass/biogas, landfill gas, hydropower, fuel cells that use renewable fuels and geothermal.

Parties interested in the RFP are encouraged to attend the bidder's conference, which is scheduled for March 14, 2007, at APS' headquarters in Phoenix. Additional information about the conference and the RFP is available online at www.aps.com/rfp.

The request is part of APS' commitment to a sustainable future, which includes a vital economy, strong community and healthy environment. The energy procured from this request will help the utility fulfill its renewable standard set by the Arizona Corporation Commission. APS' goal, market permitting, is to exceed the Commission's requirement.

In 2006 APS increased the amount of renewable energy that it uses to serve Arizona's burgeoning population by almost 1,800 percent. The sharp increase was buoyed by 90 megawatts (MW) of wind capacity brought online in December. In addition to the wind power, APS added 10 MW of geothermal capacity and increased its solar generation output to 10 million kilowatt-hours - a record for both the company and the state of Arizona.

APS, Arizona's largest and longest-serving electric 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 Corporation (NYSE: PNW).