APS Sets Record Peak Electricity Demand; Consumption Expected to Climb Even Higher this Summer.

PHOENIX -- Arizona Public Service (APS) today established a record system peak demand for electricity usage as consumers stayed cool on one of the hottest days so far this year. The demand reached 7,103 megawatts (MW) at about 5 p.m., breaking the previous record set last summer. The new record is still below APS' projected peak of 7,322 MW for this summer.

APS CEO and President Jack Davis said if projections of continued high temperatures prove correct, it's likely the new record also will be broken before the week is over.

"While we're well-prepared to deliver the energy our customers need, increased usage also means higher bills for our customers," Davis said. "Conserving power can help customers reduce their bills, while helping us manage this record electricity consumption."

To reliably meet the high demands of Arizona's energy needs, APS has invested significantly in infrastructure upgrades and is relying on its diverse fleet of generating plants, which are among the industry's top performers. Included in these plants is the Palo Verde Nuclear Generating Station. Palo Verde Units 2 and 3 are operating at full power, and Unit 1 is currently at 90 percent power following its restart earlier this week.

Prior to today's record-breaking demand, the old record for electricity consumption was set on July 18, 2005, when peak demand was 7,000 MW. Today's new record is about 1.5 percent higher than that mark. To put the record demand in perspective, 100 MW of electricity is enough to supply the equivalent of 25,000 average-sized residential homes.

The peak demand for APS' service area occurs during the summer months due to the space cooling requirements of its retail customers. The record marked the 12th time in the past 13 years that the Company's peak demand exceeded the prior year's record.

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 Corp. (NYSE: PNW).