APS Sets Record Peak Electricity Demand; Successfully Manages Needs of Customers.

Energy Editors/Business Editors

PHOENIX--(BUSINESS WIRE)--July 9, 2003

Arizona Public Service (APS) today established a record total system peak demand for electricity usage as consumers stayed cool on one of the hottest days so far this year. The demand reached 6,089 megawatts (MW) at about 5 p.m., breaking the previous record set last summer.

"Our employees carefully monitored the increasing demand on our electric system throughout the day and were able to provide safe, reliable service to our customers," said APS CEO and President Jack Davis. "If projections of continued high temperatures prove correct, it's entirely possible that we'll break this record again before the week is over.

"People in the Valley and elsewhere in the state are using a lot of power, and it's our job to make sure the lights stay on," Davis added. "We prepared for this high demand by building new power plants and investing significantly in infrastructure upgrades -- all designed to meet the high reliability standards that our customers expect from us."

Prior to today's record-breaking demand, the old record for electricity consumption was set on July 9, 2002, when peak demand was 5,914 MW. Today's new record is a 3 percent increase over 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 ninth time in the past 10 years that the Company's peak demand exceeded the prior year's record.

APS, Arizona's largest and longest-serving electric utility, serves about 902,000 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).