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): August 27, 2002
PINNACLE WEST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Arizona 1-8962 86-0512431
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona 85072-3999
(Address of principal executive offices) (Zip Code)
(602) 250-1000
(Registrant's telephone number, including area code)
NONE
(Former name or former address, if changed since last report)
ITEM 5. OTHER EVENTS
ARIZONA ELECTRIC INDUSTRY RESTRUCTURING
Under Arizona Corporation Commission ("ACC") electric competition rules and
a 1999 settlement agreement approved by the ACC, Arizona Public Service Company
("APS") was required to transfer all of its competitive electric assets and
services to an unaffiliated party or to a separate corporate affiliate on or
before December 31, 2002. Consistent with that requirement, APS has been
addressing the legal and regulatory requirements necessary to complete the
transfer of its generation assets to Pinnacle West Energy Corporation ("Pinnacle
West Energy") on or before that date. On August 27, 2002, the ACC held an open
meeting to consider "Track A Issues" in the consolidated ACC docket related to
retail electric competition in Arizona. See Note 5 to Condensed Consolidated
Financial Statements in the Pinnacle West Capital Corporation (the "Company")
Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2002 for
information regarding the consolidated ACC docket and related matters.
At the open meeting, the ACC determined, among other things, that APS would
not be permitted to transfer its generation assets. The ACC also determined that
if, as a result of this decision, APS wishes to acquire certain generation
assets from Pinnacle West Energy, as suggested in a July 11, 2002 letter from
APS to the ACC, APS should file appropriate applications on this matter for ACC
consideration. With respect to the competitive bidding process required by the
electric competition rules ("Track B Issues"), the ACC stated that "the
[Pinnacle West Energy] assets that APS may seek to transfer from [Pinnacle West
Energy] to itself shall not be counted as APS assets in determining the amount,
timing, and manner of the competitive solicitation." The ACC ordered the
development of a competitive solicitation process that can begin by March 1,
2003. APS intends to file a motion for reconsideration of the ACC's decision.
The ACC has not yet issued the written order reflecting its decision.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Company has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PINNACLE WEST CAPITAL CORPORATION
(Registrant)
Dated: August 29, 2002 By: Michael V. Palmeri
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Michael V. Palmeri
Vice President, Finance