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): July 23, 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, the Arizona Corporation Commission (the "ACC")
issued a procedural order stating that hearings in a consolidated ACC docket
would begin on June 17, 2002 on various issues ("Track A Issues"), including
Arizona Public Service Company's ("APS") planned divestiture of generation
assets to Pinnacle West Energy Corporation (Pinnacle West Energy) and associated
market and affiliate issues.
See Note 5 of Notes to Condensed Consolidated Financial Statements in the
Pinnacle West Capital Corporation (the "Company") Report on Form 10-Q for the
fiscal quarter ended March 31, 2002 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 July 23, 2002 an ACC Administrative Law Judge ("ALJ") issued a
recommendation on Track A Issues in the consolidated docket. Among other things,
the ALJ recommends that:
* the ability of APS to transfer its generation assets be stayed until
the ACC determines that the wholesale market is "workably
competitive," and until at least July 1, 2004, at which time the ACC
would reassess the appropriateness and timing of divestiture;
* the requirement that 100 percent of power purchased for standard offer
service be acquired from the competitive market, with at least 50
percent through a competitive bid process, be stayed indefinitely;
and,
* upon implementation of the outcome of the competitive bidding process
("Track B Issues"), APS would acquire, at a minimum, any required
power not produced by its owned generation through the competitive
procurement process developed in the Track B proceeding.
The ALJ also recommended that if APS wishes to acquire certain generation
assets from Pinnacle West Energy, as discussed in APS' July 11, 2002 letter to
the ACC, APS should file appropriate applications on this matter for ACC
consideration. See the Company's Current Report on Form 8-K dated July 11, 2002.
The ALJ also recommended that the ACC Staff open a rulemaking to review the
Retail Electric Competition Rules in light of the other decisions in the
recommendation and that an Electric Competition Advisory Group be formed to
facilitate communication among the ACC staff, stakeholders and market
participants.
APS expects to file exceptions to the recommendations by August 1, 2002. It
has not been determined when the ACC may consider and rule on this
recommendation.
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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: July 24, 2002 By: Barbara M. Gomez
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Barbara M. Gomez
Treasurer
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