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): April 26, 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 reported, on February 8, 2002, the Chief Administrative Law
Judge of the Arizona Corporation Commission (the "ACC") issued a procedural
order which consolidated several ACC dockets, including:
* the ACC docket relating to an October 2001 filing by Arizona Public
Service Company ("APS") requesting approval of a long-term purchase
power agreement between APS and Pinnacle West Capital Corporation (the
"Company"), as well as a variance from a competitive bidding process
required by an ACC rule; and
* a "generic" docket established by the ACC in February 2002 to
"determine if changed circumstances require the [ACC] to take another
look at restructuring in Arizona."
See Note 3 of Notes to Consolidated Financial Statements in the Company's Report
on Form 10-K for the fiscal year ended December 31, 2001 (the "2001 Form 10-K")
for additional information about the consolidated docket, a comprehensive 1999
Settlement Agreement approved by the ACC among APS and various parties related
to the implementation of retail electric competition in Arizona, and the retail
electric competition rules adopted by the ACC.
On April 19, 2002, APS filed a motion in the consolidated docket addressing
various issues and suggesting, among other things, that the ACC confirm whether
or not Arizona would proceed with the transition to a competitive electric
market. APS also advised the ACC that, (a) as required and authorized by the
1999 Settlement Agreement, on or about August 1, 2002, APS intends to formally
provide the ACC with a 30-day notice of its planned transfer of generation
assets to its affiliate, Pinnacle West Energy Corporation ("Pinnacle West
Energy") and (b) APS intends to issue a request for proposal for competitive
bidding no later than September 1, 2002. See "Arizona Electric Industry
Restructuring" in Item 5 of the Company's Report on Form 8-K, dated March 31,
2002 for additional information regarding APS' motion.
On April 26, 2002, the ACC issued a procedural order in which the ACC
stayed the previously-scheduled April 29, 2002 hearing on the matters raised in
APS' October 2001 ACC filing (see the first paragraph above). On May 2, 2002,
the ACC issued a procedural order stating that hearings will begin on June 17,
2002 on various issues ("Track A Issues"), including APS' planned divestiture of
generation assets to Pinnacle West Energy and associated market and affiliate
issues. The procedural order stated that the schedule is designed to have a
recommended order issued by the administrative law judge by approximately July
22, 2002, with comments on the recommended order due from affected parties on
July 31, 2002. Under this schedule, August 1, 2002 is the earliest date the ACC
could consider a decision on the Track A Issues.
The procedural order also stated that consideration of the competitive
bidding process (the "Track B Issues") required by the retail electric
competition rules would proceed concurrently with the Track A Issues. The
objectives and process of the Track B Issues will be determined in one or more
meetings of affected parties beginning the week of May 20, 2002, with a "target
completion date" of October 21, 2002.
A modification to the retail electric competition rules or the 1999
Settlement Agreement 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 2001 filing, the existing Arizona electric
competition rules, or the 1999 Settlement Agreement.
3
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: May 6, 2002 By: Barbara M. Gomez
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Barbara M. Gomez
Treasurer