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): December 9, 1998
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ARIZONA PUBLIC SERVICE COMPANY
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(Exact name of registrant as specified in its charter)
Arizona 1-4473 86-0011170
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
400 North Fifth Street, P.O. Box 53999, Phoenix, Arizona 85004
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(Address of principal executive offices) (Zip code)
(602) 250-1000
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(Registrant's telephone number, including area code)
NONE
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
As previously reported, the proposed settlement agreement between
Arizona Public Service Company (the "Company") and the Staff of the Arizona
Corporation Commission (the "ACC") has expired by its terms. See Item 5 of the
Company's Current Report on Form 8-K dated December 1, 1998. On December 9,
1998, the ACC Staff filed a Notice of Withdrawal of Settlements providing that
the proposed settlement agreement has by its terms expired and is deemed
withdrawn from consideration by the ACC. The withdrawal does not preclude the
parties from continuing attempts to resolve the issues addressed by the
agreement and presenting any new settlement to the ACC for consideration. The
notice also provides that the procedural order for ACC consideration of the
agreement is no longer in effect. The Arizona Supreme Court had scheduled oral
argument on January 14, 1999, to consider whether the procedural order gave
sufficient notice to interested parties of the ACC hearings on the settlement
agreement. The Company cannot currently predict how the Court will proceed in
this matter.
In connection with the settlement agreement, the Company and Tucson
Electric Power Company entered into a memorandum of understanding ("MOU") for
the exchange of certain assets. See "State-Proposed Settlement Agreement" in
Note 5 of Notes to Condensed Financial Statements in the Company's Quarterly
Report on Form 10-Q for the Fiscal Quarter ended September 30, 1998 (the
"September 10-Q"). Pursuant to the terms of the MOU, if there is no ACC order
approving a settlement agreement by December 15, 1998, or an agreement between
the parties to extend this deadline, the MOU will expire.
On December 10, 1998, the ACC adopted, without modifications which
would have a significant impact on the Company, the amended rules regarding the
introduction of retail electric competition which became effective on an
emergency basis in August 1998. See "State-ACC Rules" in Note 5 of Notes to
Condensed Financial Statements in the September 10-Q. However, due to the
Supreme Court stay, the Notice of Withdrawal and other unresolved issues, the
amended rules cannot be practically implemented.
In April 1998, the Company and Salt River Project Agricultural
Improvement and Power District ("Salt River Project") entered into a memorandum
of agreement in anticipation of, and to facilitate, the opening of the Arizona
electric industry. See Note 7 of Notes to Condensed Financial Statements in the
September 10-Q. Certain provisions of the agreement may be affected by the
timing of the introduction of competition.
<PAGE>
SIGNATURES
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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.
ARIZONA PUBLIC SERVICE COMPANY
(Registrant)
Dated: December 11, 1998 By: Michael V. Palmeri
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Michael V. Palmeri
Treasurer
