UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): December 20, 2007
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Exact Name of Registrant as Specified in |
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Charter; State of Incorporation; |
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IRS Employer |
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Address and Telephone Number |
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Identification Number |
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1-8962
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Pinnacle West Capital Corporation
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86-0512431 |
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(an Arizona corporation) |
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400 North Fifth Street, P.O. Box 53999 |
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Phoenix, AZ 85072-3999 |
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(602) 250-1000 |
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1-4473
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Arizona Public Service Company
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86-0011170 |
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(an Arizona corporation) |
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400 North Fifth Street, P.O. Box 53999 |
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Phoenix, AZ 85072-3999 |
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(602) 250-1000 |
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy
the filing obligation of the registrant under any of the following provisions:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c)) |
This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona
Public Service Company. Each registrant is filing on its own behalf all of the information
contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries.
Except as stated in the preceding sentence, neither registrant is filing any information that does
not relate to such registrant, and therefore makes no representation as to any such information.
TABLE OF CONTENTS
Item 8.01. Other Events
Line Extension Schedule
As previously reported, as part of the Arizona Corporation Commission’s (“ACC”) Order in
Arizona Public Service Company’s (“APS”) most recent general retail rate case, the ACC required APS
to file a revised line extension schedule for ACC approval that would eliminate certain
construction allowances for new or expanded service and permit APS to collect, on a current basis,
costs related to line extensions. APS filed a proposed schedule providing, among other things,
that payments received for line extensions be accounted for as non-refundable electric revenues.
The ACC staff has recommended approval of the proposed amendments to APS’ line extension schedule,
except the ACC staff proposes that these payments be accounted for as contributions in aid of
construction, which would result in positive cash flow that would offset capital expenditures, but
without any revenue impact when the payments are made. See “APS General Rate Case and Power
Supply Adjustor” in Note 5 of Notes to Condensed Consolidated Financial Statements in the Pinnacle
West Capital Corporation/APS Report on Form 10-Q for the fiscal quarter ended September 30, 2007.
On
December 20, 2007, APS filed additional information with the ACC in response to requests
from ACC Commissioners directed to all of the parties to the proceeding. In its filing, a copy of
which is attached as Exhibit 99.1, APS provided additional support for its position that APS should
treat line extension payments as non-refundable electric revenues, stating that doing so would,
among other things, help shield APS customers against both the
size and frequency of future general base rate increases and
strengthen APS’ financial condition. Based upon a variety of assumptions, APS estimated in its filing that its proposal, if
approved before the end of 2007, could increase APS pretax revenues by approximately $50 million in 2008,
$117 million in 2009, and between $159 million to $191 million in 2010. The appropriate procedure
for considering this matter has not yet been determined by the ACC. APS cannot predict the outcome
of this matter.
Forward-Looking Statements
This Report on Form 8-K contains forward-looking statements regarding the estimated amounts of
increased revenues that APS could recognize if the ACC adopts APS’ line extension proposal. Because
actual results may differ materially from expectations, we caution readers not to place undue
reliance on these statements. A number of factors could cause actual revenue amounts to differ
materially from estimated revenue amounts, including the timing of any ACC approval of APS’
proposal; customer growth; housing market conditions; and the extent to which new connections are
“grandfathered.”
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