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): November 22, 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.
ACC APPLICATIONS
On November 8, 2002, Arizona Public Service Company ("APS") filed an
application (the "Interim Financing Application") with the Arizona Corporation
Commission (the "ACC") requesting a waiver of certain ACC rules to permit APS to
(a) make short-term advances to Pinnacle West Capital Corporation ("Pinnacle
West" or the "Company") in the form of an inter-affiliate line of credit or (b)
guarantee Pinnacle West's short-term debt. See Item 5 in the Company's Current
Report on Form 8-K dated November 14, 2002. In either case, the waiver would be
limited to a maximum aggregate principal amount of $125 million and for a
maximum term of 364 days. At an ACC special open meeting on November 22, 2002
the ACC approved the Interim Financing Application, subject to the following
conditions: (a) the terms and conditions, including the pricing schedule, of the
line of credit between the Company and APS will be the same as those in the
Company's bank facility that is expiring November 29, 2002; (b) APS acquires a
$125 million security interest in certain assets of Pinnacle West Energy
Corporation, the Company's unregulated generation subsidiary ("Pinnacle West
Energy"), to secure the financing; (c) all amounts received by APS be deferred
and accounted for in a manner to allow amortization as a credit to customers;
and, (d) the ACC will examine ways to improve regulatory insulation between APS
and its affiliates in their consideration of APS' $500 million Financing
Application filed on September 16, 2002. See "ACC Applications" in Note 5 to
Notes to Condensed Consolidated Financial Statements in the Company's Quarterly
Report on Form 10-Q for the fiscal quarter ended September 30, 2002 for
additional information regarding the $500 million Financing Application.
PINNACLE WEST ENERGY CORPORATION
On November 22, 2002, Pinnacle West Energy announced the decision to cancel
Redhawk Units 3 and 4. As a result of the plant cancellation, the Company
expects to record a charge of approximately $50 million before income taxes ($30
million after-tax, $0.35 per share) in the fourth quarter of 2002. The near-term
cash benefits associated with the plant cancellation are expected to total
approximately $60 million between now and the end of 2003. Over the next five
years, the Company estimates that this decision will reduce its capital spending
by more than $500 million.
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: November 26, 2002 By: Barbara M. Gomez
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Barbara M. Gomez
Treasurer
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