Adopted November 9, 1939 File No. 69-306
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
(filed prior to March 1, 1994)
Statement by Holding Company
Claiming Exemption under Rule U-2
from the Provisions of the
Public Utility Holding Company Act of 1935
To Be Filed Annually Prior to March 1
Pinnacle West Capital Corporation
---------------------------------
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant
to Rule U-2, its statement claiming exemption as a holding company
from the provisions of the Public Utility Holding Company Act of
1935. In support of such claim for exemption, the following
information is submitted:
1. Name, state of organization, location and nature of business of claim-
ant and every subsidiary thereof.
Pinnacle West Capital Corporation, (the "Claimant"), having been
incorporated on February 20, 1985 under the laws of the State of Arizona,
and having its principal executive offices at 400 East Van Buren, Suite 700,
Phoenix, Arizona 85004, was organized principally to acquire and hold
securities of other corporations for investment purposes. The Claimant
currently holds stock in the following subsidiaries:
a. Arizona Public Service Company ("APS" or the "Company"),
is engaged principally in serving electricity in the State of
Arizona. Incorporated in 1920 under the laws of the State of
Arizona and having its principal executive offices at 400 North
Fifth Street, Phoenix, Arizona 85004, APS became a subsidiary of
the Claimant pursuant to a corporate restructuring plan approved
by the Company's shareholders on April 18, 1985.
(1) Bixco, Inc. ("Bixco") -- an Arizona corporation
having been incorporated on June 4, 1971 and having its
principal executive offices at 400 North Fifth Street,
Phoenix, Arizona 85004, was organized primarily to
conduct exploration activities for energy resources and
other valuable minerals. Subsequent to the sale of its
oil and natural gas properties in 1981, Bixco has been
inactive. Bixco is a wholly-owned subsidiary of APS.
(2) Stagg Systems, Inc. ("Stagg") -- a New York corpo-
ration having been incorporated on March 25, 1970 and
having its principal executive offices at 400 N. 5th
Street, Phoenix, Arizona 85004, was organized primarily
to design, implement, test and install control and
energy management and general engineering processing
systems for the electric utility and related process
control and transportation industries. Stagg is a
wholly-owned subsidiary of APS.
b. SunCor Development Company ("SunCor") -- an Arizona
corporation having been incorporated on June 30, 1965 and having
its principal executive offices at 2828 North Central Avenue,
Suite 900, Phoenix, Arizona 85004, is a wholly-owned subsidiary of
Claimant engaged primarily in the owning, holding and development
of real property.
(1) SunCor Resort & Golf Management, Inc. ("Resort &
Golf Management") (previously named "SunCor Resort
Management, Inc." and "SunCor Farms, Inc.") -- an Arizo-
na corporation having been incorporated on December 31,
1986 and having its principal executive offices at 2828
North Central Avenue, Suite 900, Phoenix, Arizona 85004
operates and manages hotel, golf, food and beverage for
the Wigwam Resort and Country Club and Palm Valley Golf
Club. Resort & Golf Management is a wholly-owned sub-
sidiary of SunCor.
(2) Litchfield Park Service Company ("LPSCO") -- an
Arizona corporation having been incorporated on Septem-
ber 21, 1954 and having its principal executive offices
at 501 East Plaza Circle, Suite B, Litchfield Park,
Arizona 85340, is a regulated public utility engaged in
providing water and sewer services to commercial and
residential customers. LPSCO became a wholly-owned sub-
sidiary of SunCor on December 31, 1986.
(3) LGR, Inc. ("LGR") -- (previously WGP Realty, Inc.)
an Arizona corporation having been incorporated on May
14, 1986 and having its principal executive offices at
2828 North Central Avenue, Suite 900, Phoenix, Arizona
85004, was organized to provide brokerage and realty
services in the sale of commercial and residential real
property. LGR is a wholly-owned subsidiary of SunCor.
(4) SCM, Inc. ("SCM") -- an Arizona corporation having
been incorporated on May 14, 1991 and having its princi-
pal executive offices at 2828 North Central Avenue,
Suite 900, Phoenix, Arizona 85004, was organized to
participate in real estate joint ventures and other real
estate related activities. SCM is a wholly-owned sub-
sidiary of SunCor.
(5) Golf de Mexico, S.A. DE C.V. ("Golf de Mexico") --
a Mexican variable capital corporation having been
incorporated on February 8, 1992 in Tijuana, Baja Cali-
fornia, Mexico, and having its principal executive
offices at 2828 North Central Avenue, Suite 900, Phoe-
nix, Arizona 85004, was organized to operate and manage
the Real del Mar Golf Course in Mexico.
c. El Dorado Investment Company -- an Arizona corporation
having been incorporated on July 27, 1983 and having its principal
executive offices at 400 East Van Buren, Suite 600, Phoenix,
Arizona 85004, is a wholly-owned subsidiary of Claimant engaged
primarily in the acquisition and holding of stocks and securities
of other companies for investment purposes.
2. A brief description of the properties of Claimant and each of its
subsidiary public utility companies used for the generation, transmis-
sion and distribution of electric energy for sale, or for the produc-
tion, transmission and distribution of natural or manufactured gas,
indicating the location of principal generating plants, transmission
lines, producing fields, gas manufacturing plants and electric and gas
distribution facilities, including all such properties which are
outside the state in which Claimant and its subsidiaries are organized
and all transmission or pipelines which deliver or receive electric
energy or gas at the borders of such state.
Neither the Claimant nor any of its subsidiaries own property used for
the production, transmission and distribution of natural or manufactured
gas. APS, a "public utility company" as that term is defined in the Public
Utility Holding Company Act of 1935, is the only one of Claimant's subsid-
iaries that owns property used for the generation, transmission and dis-
tribution of electric energy for sale.
Exhibit B attached hereto shows the location of APS' major generating
plants (including those owned jointly with others), principal transmission
lines (including those operated for others) and interconnections of trans-
mission lines with out-of-state utilities at state lines. All of such
facilities, except the Four Corners Generating Station ("Four Corners"), and
all of APS' distribution facilities, are located within the State of
Arizona. Four Corners is a mine-mouth power plant, located in the northwest
corner of New Mexico, near the city of Farming-ton, approximately 40 miles
east of the Arizona-New Mexico border.
APS' present generating facilities have an accredited capacity aggre-
gating 4,022,410 kilowatts, comprised as follows:
Coal: Capacity
--------
Units 1, 2 and 3 at Four Corners,
aggregating............................ 560,000 kw
15% owned Units 4 and 5 at Four Corners,
representing........................... 222,000
Units 1, 2, and 3 at the Cholla Plant,
aggregating............................ 590,000
14% owned Units 1, 2 and 3 at the Navajo
Plant, representing.................... 315,000
---------
1,687,000 kw
=========
Gas or Oil:
Two steam units at Ocotillo, two steam
units at Saguaro and one steam
unit at Yucca, aggregating............. 468,400 kw (1)
Eleven combustion turbine units,
aggregating.......................... 500,600
Three combined cycle units,
aggregating.......................... 253,500
----------
1,222,500 kw
=========
Nuclear:
29.1% owned or leased Units 1, 2 and 3
at Palo Verde, representing.......... 1,108,710 kw
=========
Other.................................... 4,200 kw
=========
APS' transmission facilities consist of approximately 4,838 pole
miles of overhead lines and approximately 18 miles of underground lines, all
of which are located within the State of Arizona. APS' distribution
facilities consist of approximately 11,000 pole miles of overhead lines and
approximately 8,123 miles of underground lines, all of which are located
within the State of Arizona.
(1) West Phoenix steam units (96,300 kw) are currently mothballed.
3. The following information for the last calendar year with respect to
Claimant and each of its subsidiary public utility companies:
a. Number of kwh of electric energy sold at retail or
wholesale.
Claimant APS
None 20,050,700,000 kwh of electric energy sold
at wholesale or retail
b. Number of kwh of electric energy distributed at
retail outside the state in which each such company is orga-
nized.
Claimant APS
None 64,812,000 kwh of electric energy distribut-
ed at retail outside Arizona
c. Number of kwh of electric energy sold at wholesale
outside the state in which each such company is organized, or
at the state line.
Claimant APS
None 1,072,000 kwh of electric energy sold at
wholesale outside Arizona or at state line
d. Number of kwh of electric energy purchased outside
the state in which each such company is organized or at the
state line.
Claimant APS
None 15,666,550 kwh of electric energy purchased
outside Arizona or at state line
<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of the Claimant and
its subsidiary companies for the last calendar year, together with a
consolidating balance sheet of Claimant and its subsidiary companies as of
the close of such calendar year.
Exhibit A hereto includes consolidating statements of income and
consolidating balance sheets for the Claimant and the following of its
subsidiaries: Arizona Public Service Company, SunCor Development Company
and El Dorado Investment Company. Subsidiaries have been consolidated for
financial reporting purposes in accordance with Statement of Financial
Accounting Standards No. 94, Consolidation of All Majority-Owned Subsidiar-
ies. Also included are consolidating statements of income and consolidating
balance sheets for SunCor Development Company and its subsidiaries.
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EXHIBIT B
Exhibit B is a map of the state of Arizona showing the following:
APS Service Area;
Major APS Power Plants, including joint ownership;
Principal APS Transmission Lines; and
Transmission Lines Operated for Others.
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The above named Claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 25th day of
February, 1994.
Pinnacle West Capital Corporation
_________________________________
(Name of Claimant)
By /s/ Michael S. Ash
______________________________
Michael S. Ash
Corporate Counsel
[CORPORATE SEAL]
Attest:
/s/ Suzanne Debes
______________________________
Suzanne Debes
Associate Secretary
Name, title and address of officer to whom notices and cor-
respondence concerning this statement should be addressed:
Michael S. Ash Corporate Counsel
_______________ _________________________________________
(Name) (Title)
400 East Van Buren, Suite 700, Phoenix, Arizona 85004
__________________________________________________________
(Address)
<TABLE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
UNAUDITED
<CAPTION>
*ELIMINATIONS AND ADJUSTING
ENTRIES*
PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL
A S S E T S
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT ASSETS
Cash and cash
equivalents 30,744 7,557 13,760 66 52,127
Trust fund for
bond redemption 0 0
Customer and
other receivables
-net 3,267 121,267 11,620 655 10,466 (b,d) 126,343
Accrued utility
revenue 60,356 (e) 60,356
Materials and
supplies 96,174 96,174
Fossil fuel 34,220 34,220
Deferred income
taxes 91369 29117 20252 (g) 100,234
Other current
assets 55 12,653 1,146 0 72 (c) 13,782
--------- --------- ------- ------ ----- --- --------- ----- ---------
Total current
assets 125,435 361,344 26,526 721 0 0 30,790 0 483,236
--------- --------- ------- ------ ----- --- --------- ----- ---------
INVESTMENTS AND OTHER
ASSETS
Real estate
investments, net 12,432 396,168 5,727 (f) 402,873
Other assets 1,968,296 63,224 3,893 56,847 1,956,186 (a) 136,074
--------- --------- ------- ------ ----- --- --------- ----- ---------
Total investments
and other 1,980,728 63,224 400,061 56,847 0 0 1,961,913 0 538,947
--------- --------- ------- ------ ----- --- --------- ----- ---------
UTILITY PLANT
Electric plant in
service, including
nuclear fuel 6,462,591 6,462,591
Construction work in
progress 197,556 197,556
--------- ---------
Total Utility
Plant 6,660,147 6,660,147
Less accumulated
depreciation and
amortization 2,058,897 2,058,897
--------- ---------
Net Utility Plant 4,601,250 4,601,250
--------- --------- ------- ------ ----- --- --------- ----- ---------
DEFERRED DEBITS
Regulatory asset for
income taxes 0 585,294 0 (h) 585,294
Palo Verde Unit 3
cost deferral 301,748 301,748
Palo Verde Unit 2
cost deferral 177,998 177,998
Other deferred debits 266,404 1,922 268,326
--------- --------- ------- ------ ----- --- --------- ----- ---------
Total deferred
debits 0 1,331,444 1,922 0 0 0 0 0 1,333,366
--------- --------- ------- ------ ----- --- --------- ----- ---------
TOTAL ASSETS 2,106,163 6,357,262 428,509 57,568 0 0 1,992,703 0 6,956,799
========= ========= ======= ====== ===== === ========= ===== =========
</TABLE>
<PAGE>
<TABLE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
UNAUDITED
<CAPTION>
* E L I M I N A T I O N S *
PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL
L I A B I L I T I E S
A N D E Q U I T Y
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts payable 6,223 81,772 9,368 126 97,489
Accrued taxes (15,990) 112,293 96,303
Accrued interest 11,937 45,729 0 22 14 (e) 57,674
Dividend payable 0 0
Short-term
borrowings 0 0
Commerical paper,
net 148,000 148,000
Current maturities
of long-term debt 0 3,179 10,044 13,223
Deferred fuel 0
Other current
liabilities 773 60,737 2,257 7,602 10,524 (b,d) 60,845
(c)
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Total current
liabilities 2,943 451,710 21,669 7,750 10,538 0 0 0 473,534
--------- --------- ------- ------- --------- ----- ------- ---- ---------
NON-CURRENT
LIABILITIES
Long-term debt
less current
maturities 563,692 2,124,654 10,892 2,699,238
Other liabilites 4,775 3,471 8,246
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Total 568,467 2,124,654 14,363 0 0 0 0 0 2,707,484
--------- --------- ------- ------- --------- ----- ------- ---- ---------
DEFERRED CREDITS
AND OTHER
Deferred income
taxes (92,259) 1,391,184 20,252 (g) 0 (h) 1,278,673
Deferred
investment
tax credit (22,488) 149,819 127,331
Unamortized
gain-sale of
utility plant 107,344 107,344
Other deferred
credits 218,439 3,323 221,762
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Total deferred
credits (114,747) 1,866,786 3,323 0 20,252 0 0 0 1,735,110
--------- --------- ------- ------- --------- ----- ------- ---- ---------
COMMITMENTS AND
CONTINGENCIES
(NOTE)
MINORITY
INTERESTS:
Non-Redeemable
preferred stock
of APS 193,561 193,561
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Redeemable
preferred stock
of APS 197,610 197,610
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Scottsdale
Mountain of
SunCor 5,727 $5,727 (f) 0
--------- --------- ------- ------- --------- ----- ------- ---- ---------
COMMON STOCK
EQUITY:
Common stock 2,115,884 1,215,843 513,691 78,546 2,281,181 (a) 1,642,783
Accumulated
deficit (466,384) 307,098 (130,264) (28,728) 324,995 (a) 6,717
--------- --------- ------- ------- --------- ----- ------- ---- ---------
Total 1,649,500 1,522,941 383,427 49,818 2,281,181 324,995 1,649,500
--------- --------- ------- ------- --------- ----- ------- ---- ---------
TOTAL
LIABILITIES
AND EQUITY 2,106,163 6,357,262 428,509 57,568 2,317,698 0 324,995 0 6,956,799
========= ========= ======= ======= ========= ===== ======= ==== =========
</TABLE>
ELIMINATING AND ADJUSTING ENTRIES
(a) Common stock $2,281,181
Notes payable - SunCor, El Dorado 0
Accumulated deficit 0 $ 324,995
Other investments 1,956,186
---------- ----------
$2,281,181 $2,281,181
To eliminate PWCC investment in subsidiaries
Common Earnings/
Stock Dividends Notes Total
APS $1,688,944 ($166,003) $0 $1,522,941
SunCor 513,691 (130,264) 0 383,427
El Dorado 78,546 (28,728) 0 49,818
Total $2,281,181 ($324,995) $0 $1,956,186
(b) Other current liabilities $3,252
Customer and other receivables - net $3,252
To eliminate intercompanreceivable/payable
A/R A/P
PWCC's SUB's
Books Books
APS $ 775 $ 775
SunCor 2,417 2,417
El Dorado 60 60
------ ------
$3,252 $3,252
(c) Other current liabilities (PWCC) $72
Other current assets (APS) $72
To eliminate PWCC payable to APS
(d) Other current liabilities (El Dorado) $7,200
Customer and other receiv. (SunCor) $7,200
To eliminate El Dorado's note payable to Suncor
(e) Interest payable (El Dorado) $14
Customer and other receiv. (SunCor) $14
To eliminate El Dorado's interest payable
to SunCor
(f) Scottsdale Mountain - Minority Interest $5,727
Real estate investments - net $5,727
To eliminate Minority Interest - SunCor
Scottsdale Mountain
(g) Other deferred credits-income taxes $20,252
Current assets-deferred income taxes $20,252
Reclass APS AMT current portion that is
not recorded on PWCC
(h) Regulatory assets $0
Other deferred credits-income taxes $0
<TABLE>
PINNACLE WEST CAPITAL CORPORATION
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
UNAUDITED
<CAPTION>
*E L I M I N A T I O N S*
PWCC APS SUNCOR ELDO DEBIT CREDIT TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric $1,686,290 $1,686,290
Real Estate 32248 32,248
------- ---------- ------ ------ ------- --- ------ --- ----------
Total 0 1686290 32248 0 0 0 1718538
------- ---------- ------ ------ ------- --- ------ --- ----------
FUEL EXPENSES:
Fuel for electric
generation 231434 231,434
Purchased power 69112 69,112
------- ---------- ------ ------ ------- --- ------ --- ----------
Total 0 300546 0 0 0 0 300546
------- ---------- ------ ------ ------- --- ------ --- ----------
OPERATING EXPENSES:
Utility operations and
maintenance 401216 401,216
Real estate operations 36773 1447 (c) 38,220
Depreciation and
amortization 449 222610 496 3 223,558
Taxes other than
income taxes 48 221374 923 222,345
------- ---------- ------ ------ ------- --- ------ --- ----------
Total 497 845200 38192 3 1447 0 885339
------- ---------- ------ ------ ------- --- ------ --- ----------
OPERATING INCOME -497 540544 -5944 -3 -1447 0 532653
------- ---------- ------ ------ ------- --- ------ --- ----------
OTHER INCOME
DEDUCTIONS):
Allowance for equity
funds used during
construction 2326 2,326
Palo Verde accretion
income 74880 74,880
Interest on long-term
debt -82798 -164610 0 0 1447 (c) (245,961)
Other interest -107 -15865 -522 -1250 1239 (b) (16,505)
Allowance for borrowed
funds used during
construction 4153 4,153
Preferred stock
dividend requirements -30840 (30,840)
(a,
Other, net 212902 -2135 2476 -2634 212891 b) (2,282)
------- ---------- ------ ------ ------- --- ------ --- ----------
Total 129997 -132091 1954 -3884 212891 2686 -214229
------- ---------- ------ ------ ------- --- ------ --- ----------
INCOME FROM CONTINUING
OPERATIONS B-4 INCOME
TAXES 129500 408453 -3990 -3887 211444 2686 318424
PROVISION FOR INCOME
TAXES -40478 188907 17 148,446
------- ---------- ------ ------ ------- --- ------ --- ----------
INCOME (LOSS) B-4 CUMU
EFFECT OF ACCTG CHG 169978 219546 -3990 -3904 211444 0 2686 0 169978
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE 19252 0 0 0 0 0 0 0 19,252
------- ---------- ------ ------ ------- --- ------ --- ----------
NET INCOME (L0SS) 189230 219546 -3990 -3904 211444 2686 189230
======= ========== ====== ====== ======= === ====== === ==========
</TABLE>
ELIMINATING ENTRIES
(a) Income from Subsidiaries $211,652
Retained Earnings $211,652
To eliminate PWCC Equity in earnings from
subsidiairies
PWCC
APS $219,546
SUNCOR -3990
EL DORADO -3904
--------
$211,652
(b) Interest Income (SunCor) $1,239
Interest Expense (El Dorado) $1,239
To eliminate SunCor interest charges to El
Dorado.
(c) Real Estate Operations $1,447
Interest Expense (PWCC) $1,447
To reclass Capitalized Interest for SunCor
Land Sales.
<TABLE>
SUNCOR DEVELOPMENT COMPANY
PROFIT AND LOSS STATEMENT
FOR THE PERIOD ENDING 12/31/93
<CAPTION>
ELIMINAT-
ING CONSOLIDATED
SUNCOR LPSCO SMLP PV GOLF SCM ENTRIES INCOME
<S> <C> <C> <C> <C> <C> <C> <C>
REVENUES
SALE OF ASSETS $0 $0 $0 $0 $0 $0 $0
DEFERRED
RECOGNITION OF
PROFITS 0 0 0 0 0 0 0
LAND SALES -
TATUM RANCH 10,069,949 0 0 0 0 0 10,069,949
LAND SALES -
AUTOPLEX 1,992,400 0 0 0 0 0 1,992,400
LAND SALES -
TALAVI 1,295,572 0 0 0 0 0 1,295,572
LAND SALES -
PALM VALLEY 2,387,877 0 0 0 0 0 2,387,877
LAND SALES -
LITCHFIELD
GREENS 3,054,461 0 0 0 904,517 (904,517) 3,054,461
HOME SALES -
ANCALA 5,221,024 0 0 0 0 0 5,221,024
LAND SALES -
SMLP 0 0 5,378,375 0 0 0 5,378,375
COMMERCIAL &
PROPERTY
MANAGEMENT 1,556,135 0 0 380,446 0 0 1,936,581
UTILITY SALES 0 911,273 0 0 0 0 911,273
----------- -------- ---------- -------- ------- --------- -----------
TOTAL OPERATING
REVENUES 25,577,418 911,273 5,378,375 380,446 904,517 (904,517) 32,247,512
----------- -------- ---------- -------- ------- --------- -----------
OPERATING EXPENSES
COST OF ASSETS
SOLD 0 0 0 0 0 0 0
COST OF PROPERTY
SOLD - TATUM
RANCH 8,298,887 0 0 0 0 0 8,298,887
COST OF PROPERTY
SOLD - AUTOPLEX 2,232,011 0 0 0 0 0 2,232,011
COST OF PROPERTY
SOLD - TALAVI 1,295,572 0 0 0 0 0 1,295,572
COST OF PROPERTY
SOLD - PALM
VALLEY 2,233,246 0 0 0 0 0 2,233,246
COST OF PROPERTY
SOLD - GREENS 2,321,969 0 0 0 822,289 (904,517) 2,239,740
COST OF PROPERTY
SOLD - ANCALA 3,831,852 0 0 0 0 0 3,831,852
COST OF PROPERTY
SOLD - SMLP 0 0 2,373,481 0 0 0 2,373,481
LAND PROJECT
COSTS 2,386,981 0 379,597 0 0 0 2,766,578
COMMERCIAL &
PROP. MANGMNT EXP 800,301 0 0 261,195 0 0 1,061,496
GENERAL AND
ADMINISTRATIVE 7,752,669 0 87,609 0 0 0 7,840,278
RESORT
OPERATIONS 1,800,000 0 0 0 0 0 1,800,000
UTILITY EXPENSES 0 853,020 0 0 0 (16,202) 836,818
DEPRECIATION 419,958 75,864 0 0 0 0 495,822
----------- -------- ---------- -------- ------- --------- -----------
TOTAL OPERATING
EXPENSES 33,373,446 928,884 2,840,686 261,195 822,289 (920,719) 37,305,781
----------- -------- ---------- -------- ------- --------- -----------
NET OPERATING
INCOME (7,796,028) (17,611) 2,537,689 119,251 82,229 16,202 (5,058,269)
----------- -------- ---------- -------- ------- --------- -----------
OTHER INCOME AND
GAINS
EQUITY IN TEMPE
MARKETPLACE JV 509 0 0 0 0 0 509
EQUITY IN
CENTREPOINT
ASSOC JV 466,438 0 0 0 0 0 466,438
EQUITY IN ELLIOT
ASSOC JV 79,091 0 0 0 0 0 79,091
MANAGEMENT FEES 207,073 0 0 0 0 0 207,073
INTEREST INCOME 1,737,864 0 1,589 0 0 (16,202) 1,723,251
----------- -------- ---------- -------- ------- --------- -----------
TOTAL OTHER INCOME
AND GAINS 2,490,975 0 1,589 0 0 (16,202) 2,476,362
----------- -------- ---------- -------- ------- --------- -----------
OTHER EXPENSES AND
LOSSES
OTHER INTEREST 1,307,877 0 47,568 0 0 0 1,355,445
LESS CAPITALIZED
INTEREST (785,766) 0 (47,568) 0 0 0 (833,334)
----------- -------- ---------- -------- ------- --------- -----------
TOTAL OTHER
EXPENSES AND
LOSSES 522,111 0 0 0 0 0 522,111
----------- -------- ---------- -------- ------- --------- -----------
NET INCOME BEFORE
MINORITY INT (5,827,164) (17,611) 2,539,278 119,251 82,229 0 (3,104,018)
MINORITY
INTEREST 0 0 885,820 0 0 0 885,820
----------- -------- ---------- -------- ------- --------- -----------
NET INCOME/(LOSS) ($5,827,164) ($17,611) $1,653,458 $119,251 $82,229 $0 ($3,989,838)
=========== ======== ========== ======== ======= ========= ===========
</TABLE>
<PAGE>
<TABLE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET
FOR THE MONTH ENDED DECEMBER 31, 1993
----------------------------------------------------------------------------------------------------
<CAPTION>
**F** **G** **H** **I** **H** **J**
ACCOUNT DESCRIPTION SUNCOR LPSCO SASI SCTS MTN PVGC SCM
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS
CASH 12,389,621 21,793 99,016 347,698 110,751 95,747
ACCOUNTS RECEIVABLE 720,680 70,445 144,800 612,745 (11,220)
INTEREST RECEIVABLE 70,860
NOTES RECEIVABLE OTHER 8,074,719
INVENTORIES 69,288
OTHER RECEIVABLES 24,447 (15,166)
PREPAID EXPENSE 236,946
HOME INVENTORY 519,932 626,233
----------- ---------- ------- ---------- ------- -------
TOTAL CURRENT ASSETS 21,775,813 353,631 243,816 960,443 153,654 721,981
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
LITCHFIELD PARK 226,855,306
LITCHFIELD GREENS 5,077,865
SCOTTSDALE MTN 14,954,579
LPP LAND
MARKETPLACE 36,412,867
TATUM RANCH 59,546,104
TALAVI 10,695,569
TALAVI SEARS BUILDING
ANCALA CASITAS 772,993
WIGWAM OUTLET STORES 397,466
TUCSON FEC 1,600,207
OAT CROPS INVENTORY
EQUITY IN TEMPE MKTPL JV 4,394,237
EQUITY IN CTRPT ASSOC-JV 18,848,246
INVEST IN MKT-
FIDDLESTICKS 1,116,242
INVEST IN KABUTO/SUNCOR JV 4,153,189
INVESTMENT IN TUCSON FEC
INVESTMENT IN BILTMORE
ESTATES 1,536,087
INVESTMENT IN WIGWAM (1,288,006)
INVEST IN SCOTTS MTN LTD
PART 3,889,397
COMMERCIAL PROPERTIES 6,991,068
INVESTMENT IN LPSCO 1,481,100
LONG-TERM NOTES RECEIVABLE 3,432,120
INVESTMENT IN SASI 103,443
INVESTMENT IN PALM VALLEY
GOLF 119,251
BUILDING, EQUIPMENT AND
OTHER 760,753
DEFERRED ASSETS 562,840 165,743
CAPITALIZED INTEREST
ACCUMULATED AMORTIZATION
HOTEL PROPERTIES
ACCUMULATED DEPRECIATION
WATER, SEWER UTILITY PROP 3,061,509
ACCUMULATED DEPRECIATION (1,131,515)
CONTRIBUTED PROPERTY 1,232,241
ACCUMULATED DPRECIATION
----------- ---------- ------- ---------- ------- -------
TOTAL LONG-TERM ASSETS 387,458,344 3,162,235 0 15,120,322 0 0
----------- ---------- ------- ---------- ------- -------
TOTAL ASSETS 409,234,157 3,515,866 243,816 16,080,764 153,654 721,981
=========== ========== ======= ========== ======= =======
</TABLE>
<PAGE>
<TABLE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET
FOR THE MONTH ENDED DECEMBER 31, 1993
-----------------------------------------------------------------------------------
<CAPTION>
ELIMINATIONS
------------------------------------ **N**
ACCOUNT DESCRIPTION REF DEBIT REF CREDIT CONSOLIDATED
-----------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS
CASH F. 695,270 13,759,896
ACCOUNTS RECEIVABLE F.L. 1,630,285 CDH 126,832 3,040,904
INTEREST RECEIVABLE H. 444 70,416
NOTES RECEIVABLE OTHER H. 61,967 8,012,752
INVENTORIES 69,288
OTHER RECEIVABLES F. 43,414 E. 21,754 30,941
PREPAID EXPENSE F. 158,805 395,751
HOME INVENTORY 1,146,165
-----------
TOTAL CURRENT ASSETS 26,526,114
-----------
LONG-TERM ASSETS
DEVELOPMENT PROJECTS
LITCHFIELD PARK L. 109,368 226,745,937
LITCHFIELD GREENS 5,077,865
SCOTTSDALE MTN G. 235,628 14,718,950
LPP LAND 0
MARKETPLACE 36,412,867
TATUM RANCH 59,546,104
TALAVI 10,695,569
TALAVI SEARS BUILDING 0
ANCALA CASITAS 772,993
WIGWAM OUTLET STORES 397,466
TUCSON FEC 1,600,207
OAT CROPS INVENTORY 0
EQUITY IN TEMPE MKTPL JV 4,394,237
EQUITY IN CTRPT ASSOC-JV 18,848,246
INVEST IN MKT-FIDDLESTICKS 1,116,242
INVEST IN KABUTO/SUNCOR JV 4,153,189
INVESTMENT IN TUCSON FEC 0
INVESTMENT IN BILTMORE ESTATES 1,536,087
INVESTMENT IN WIGWAM F. 1,288,006 0
INVEST IN SCOTTS MTN LTD PART G. 3,889,397 0
COMMERCIAL PROPERTIES 6,991,068
INVESTMENT IN LPSCO A. 1,481,100 (0)
LONG-TERM NOTES RECEIVABLE B. 300,000 3,132,120
INVESTMENT IN SASI J. 103,443 0
INVESTMENT IN PALM VALLEY GOLF L. 119,251 (0)
BUILDING, EQUIPMENT AND OTHER 760,753
DEFERRED ASSETS 728,583
CAPITALIZED INTEREST 0
ACCUMULATED AMORTIZATION 0
HOTEL PROPERTIES 0
ACCUMULATED DEPRECIATION 0
WATER, SEWER UTILITY PROP 3,061,509
ACCUMULATED DEPRECIATION (1,131,515)
CONTRIBUTED PROPERTY 1,232,241
ACCUMULATED DEPRECIATION 0
-----------
TOTAL LONG-TERM ASSETS 400,790,720
-----------
TOTAL ASSETS 427,316,834
===========
</TABLE>
<PAGE>
<TABLE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET
FOR THE MONTH ENDED DECEMBER 31, 1993
--------------------------------------------------------------------------------------------------------
<CAPTION>
**F** **G** **H** **I** **H** **J**
ACCOUNT DESCRIPTION SUNCOR LPSCO \SASI SCTS MTN PVGC SCM
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES:
CURRENT LIABILITIES
A/P & OTHER ACCRUED LIAB 4,207,675 137,061 140,373 493,929 34,403 19,926
INTEREST PAYABLE 444
S/T NOTES PAYABLE OTHER 5,239,368 4,861,967
PWCC NOTES PAYABLE
PWCC INTERCO PAYABLE 2,256,859
PWCC INTERCO INTEREST
HOTEL CURRENT LIABILITIES
HOTEL ACCRUED LIABILITIES
INTERCOMPANY - OTHER 619,825
METER DEPOSITS
ADVANCE-IN-AID
ACCRUED FEDERAL & STATE TAXES 18,275
ACC TAXES OTHER THAN INCOME 32,297
MISCELLANEOUS LIABILITIES 24,665
------------ --------- ------- ---------- ------- -------
TOTAL CURRENT LIABILITIES 11,703,902 212,298 140,373 5,356,341 34,403 639,752
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE 10,024,353 300,000 872,851
OTHER ACCRUED LIABILITIES 4,079,280 63,367
DEFERRED TAXES 101,862
LONG-TERM ADVANCE-IN-AID 49,688
LONG-TERM METER DEPOSITS 75,310
CONTRIB PROPERTY AIA 1,232,241
ACCUMULATED AMORTIZATION
INTEREST PAYABLE
------------ --------- ------- ---------- ------- -------
TOTAL L/T LIABILITIES 14,103,633 1,822,468 0 872,851 0 0
------------ --------- ------- ---------- ------- -------
TOTAL LIABILITIES 25,807,535 2,034,766 140,373 6,229,191 34,403 639,752
------------ --------- ------- ---------- ------- -------
SCOTTS MTN MINORITY INTEREST 4,900,000
------------ --------- ------- ---------- ------- -------
EQUITY:
COMMON STOCK 1,022,000 78,200 2,100,000
ADDITIONAL PAID IN CAPITAL 512,668,522 724,000 490,147
EARNED SURPLUS- BEGINNING (126,274,064) 675,542 (169,488)
EARNED SURPLUS-CURRENT (3,989,836) 3,358 103,443 2,530,914 119,251 82,229
------------ --------- ------- ---------- ------- -------
TOTAL EQUITY 383,426,622 1,481,100 103,443 4,951,573 119,251 82,229
------------ --------- ------- ---------- ------- -------
TOTAL LIABILITIES AND EQUITY 409,234,157 3,515,866 243,816 16,080,764 153,654 721,981
============ ========= ======= ========== ======= =======
0 0 0 0 0 0
</TABLE>
<PAGE>
<TABLE>
SUNCOR DEVELOPMENT COMPANY
CONSOLIDATED BALANCE SHEET
FOR THE MONTH ENDED DECEMBER 31, 1993
--------------------------------------------------------------------------------------
<CAPTION>
ELIMINATIONS
------------------------------------- **N**
ACCOUNT DESCRIPTION REF DEBIT REF CREDIT CONSOLIDATED
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES:
CURRENT LIABILITIES
A/P & OTHER ACCRUED LIAB CDEHI 236,755 F.K. 4,414,405 9,211,018
INTEREST PAYABLE H. 444 0
S/T NOTES PAYABLE OTHER H. 61,967 10,039,368
PWCC NOTES PAYABLE 0
PWCC INTERCO PAYABLE 2,256,859
PWCC INTERCO INTEREST 0
HOTEL CURRENT LIABILITIES 0
HOTEL ACCRUED LIABILITIES 0
INTERCOMPANY - OTHER K. 619,825 K. 82,229 82,229
METER DEPOSITS 0
ADVANCE-IN-AID 0
ACCRUED FEDERAL & STATE
TAXES 18,275
ACC TAXES OTHER THAN INCOME 32,297
MISCELLANEOUS LIABILITIES 24,665
-------------
TOTAL CURRENT LIABILITIES 21,664,712
-------------
LONG-TERM LIABILITIES
LONG-TERM NOTES PAYABLE B. 300,000 10,897,204
OTHER ACCRUED LIABILITIES 4,142,647
DEFERRED TAXES 101,862
LONG-TERM ADVANCE-IN-AID 49,688
LONG-TERM METER DEPOSITS 75,310
CONTRIB PROPERTY AIA 1,232,241
ACCUMULATED AMORTIZATION 0
INTEREST PAYABLE 0
-------------
TOTAL L/T LIABILITIES 16,498,952
-------------
TOTAL LIABILITIES 38,163,664
-------------
SCOTTS MTN MINORITY INTEREST G. 59,273 G. 885,820 5,726,547
-------------
EQUITY:
COMMON STOCK A.G. 2,178,200 1,022,000
ADDITIONAL PAID IN CAPITAL A.G. 1,214,147 512,668,522
EARNED SURPLUS - BEGINNING A. 675,542 G. 169,488 (126,274,064)
EARNED SURPLUS - CURRENT AGJKI 2,839,195 (3,989,836)
-------------
TOTAL EQUITY 383,426,622
---------- ---------- -------------
TOTAL LIABILITIES AND EQUITY 12,001,128 12,001,127 427,316,833
========== ========== =============
1 1
</TABLE>
NOTES TO JANUARY 1994 CONSOLIDATED WORKSHEET
=========================================================================
A. COMMON STOCK 78,200
EARNED SURPLUS - BEGINNING 678,900
ADDITIONAL PAID IN CAPITAL 724,000
EARNED SURPLUS - CURRENT 7,575
INVESTMENT IN LPSCO 1,473,525
ELIMINATE INVESTMENT IN LPSCO
B.
LONG-TERM NOTES PAYABLE 300,000
LONG-TERM NOTES RECEIVABLE 300,000
ELIMINATE INTERCOMPANY NOTES (LPSCO)
C. ACCOUNTS PAYABLE 1,651
ACCOUNTS RECEIVABLE 1,651
ELIMINATE INTERCOMPANY INTEREST WITH LPSCO
D. ACCOUNTS PAYABLE 75,396
ACCOUNTS RECEIVABLE 75,396
ELIMINATE LPSCO RECEIVABLE ON SUNCOR'S BOOKS
E. ACCOUNTS PAYABLE 28,702
OTHER RECEIVABLES 28,702
ELIMINATE SUNCOR RECEIVABLE ON LPSCO'S BOOKS
F. CASH 14,999
ACCOUNTS RECEIVABLE 1,664,818
PREPAIDS 115,517
SECURITY DEPOSITS (OTHER REC) 41,131
ACCOUNTS PAYABLE 4,097,737
INVESTMENT IN WIGWAM 2,291,271
ELIMINATE INVESTMENT IN WIGWAM
G. COMMON STOCK 2,100,000
ADDITIONAL PAID IN CAPITAL 490,147
EARNED SURPLUS - BEGINNING 2,361,426
EARNED SURPLUS - CURRENT 38,062
MINORITY INTEREST - PRIOR YEAR 826,547
MINORITY INTEREST - CURRENT YEAR 13,322
INVESTMENT IN SCOTTSDALE MTN LTD PART 3,914,137
LAND 235,628
ELIMINATE INVESTMENT IN SME LTD PART
H. SHORT TERM NOTES PAYABLE 126,698
SHORT TERM NOTES RECEIVABLE 126,698
SHORT TERM INTEREST PAYABLE 887
SHORT TERM INTEREST RECEIVABLE 887
ACCOUNTS PAYABLE 89,085
ACCOUNTS RECEIVABLE 89,085
ELIMINATE NOTE & INTEREST AND A/R WITH SMLP
I. EARNED SURPLUS - CURRENT 91,770
EARNED SURPLUS - BEGINNING 103,443
INVESTMENT IN SASI 11,674
ELIMINATE INVESTMENT IN SASI
J. EARNED SURPLUS - CURRENT 0
EARNED SURPLUS - BEGINNING 82,229
INTERCOMPANY - OTHER(LIAB) 82,229
INTERCOMPANY - OTHER(LIAB) 753,675
ACCOUNTS PAYABLE 753,675
ELIMINATE SCM INTERCOMPANY
K. EARNED SURPLUS - CURRENT 119,251
EARNED SURPLUS - BEGINNING 0
INVESTMENT IN PV GOLF CLUB 119,251
ACCOUNTS RECEIVABLE 21,200
LAND 109,368
ACCOUNTS PAYABLE 88,168
ELIMINATE PALM VALLEY GOLF
12,373,856 12,373,856
0
<PAGE>
EXHIBIT B
Map of the state of Arizona showing the following:
APS Service Area:
Major APS Power Plants, including joint ownership;
Principal APS Transmission Lines; and
Transmission Lines Operated for Others.
