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): February 8, 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
As previously disclosed, in a filing with the Arizona Corporation
Commission (the "ACC") on October 18, 2001, Arizona Public Service Company
("APS") requested the ACC to (a) grant APS a partial variance from an ACC rule
that would obligate APS to acquire all of its customers' "standard offer"
generation requirements from the competitive market (with at least 50% of that
coming from a "competitive bidding" process) starting in 2003 and (b) approve as
just and reasonable a long-term purchase power agreement ("PPA") between APS and
Pinnacle West Capital Corporation (the "Company"). See "Arizona Electric
Industry Restructuring" in Item 5 of the Company's Current Report on Form 8-K
dated December 14, 2001.By letter dated January 14, 2002, the Chairman of the
ACC recommended that the ACC establish a new "generic" docket to "determine if
changed circumstances require the [ACC] to take another look at electric
restructuring in Arizona." On January 22, 2002 the ACC's Chief Administrative
Law Judge ("ALJ") issued a procedural order by which a generic docket was
opened. On February 8, 2002, the ALJ issued a procedural order which
consolidated the generic docket, the APS request, and other pending ACC dockets.
Although the order consolidates several dockets, it states that a hearing on the
APS matter will commence on April 29, 2002. The order went on to state that the
ALJ was construing the October 18, 2001 filing as a request by APS to amend the
1999 ACC order that approved a comprehensive Settlement Agreement (the
"Settlement Agreement") among APS and various parties relating to the
implementation of retail electric competition.
APS is required to transfer its generation assets and competitive services
to one or more corporate affiliates 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, another wholly-owned subsidiary of the
Company, on or before that date. In anticipation of APS' transfer of generation
assets, Pinnacle West Energy has completed, and is in the process of developing
and planning, various generation expansion projects so that APS can reliably
meet the energy requirements of its Arizona customers. A modification to the
competition rules or the Settlement Agreement as a result of the consolidated
docket could, among other things, adversely affect APS' ability to transfer its
generation assets to Pinnacle West Energy by December 31, 2002. The Company
cannot predict the outcome of the consolidated docket or its effect on the
specific requests in APS' October 18, 2001 filing, the existing Arizona electric
competition rules, or the Settlement Agreement.
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: February 20, 2002 By: Barbara M. Gomez
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Barbara M. Gomez
Treasurer