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): August 26, 1999
PINNACLE WEST CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
Arizona 1-8962 86-0512431
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification Number)
400 East Van Buren St., P.O. Box 52132, Phoenix, Arizona 85072-2132
(Address of principal executive offices) (Zip Code)
(602) 379-2500
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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
Proposed Settlement Agreement
As previously reported, hearings before the Arizona Corporation
Commission (the "ACC") on the comprehensive Settlement Agreement between Arizona
Public Service Company ("APS") and various other parties ended in July 1999. See
Note 6 of Notes to Condensed Consolidated Financial Statements in the Pinnacle
West Capital Corporation ("Pinnacle West") Quarterly Report on Form 10-Q for the
fiscal quarter ended June 30, 1999 (the "June 10-Q"). On August 26, 1999, the
ACC Hearing Officer assigned to conduct the hearings on the Settlement Agreement
issued a recommended decision. The recommended decision, which is incorporated
herein by this reference, would approve the Settlement Agreement with some
modifications.
The following are some of the proposed changes to major provisions of
the Settlement Agreement:
o The ACC would not be prevented from commencing rate change
proceedings during the Agreement term, provided that such
proceedings would not modify stranded cost recovery or reduce the
rate decreases provided in the Agreement for customer class.
o The recommended decision would change APS' proposed credits for
metering, meter reading and billing, and instead would require the
use of higher credits proposed by ACC staff.
o The recommended decision would limit APS' collection of costs
related to the transfer of generation assets to an affiliate to
67% of such costs.
The ACC is tentatively scheduled to consider this recommendation at its
next regularly scheduled open meeting on September 14, 1999.
Proposed Retail Electric Competition Rules
As previously reported, in June 1999, ACC oral proceedings were held on
the rules that provide a framework for the introduction of retail electric
competition in Arizona (the "Proposed Rules"). See Note 6 of Notes to Condensed
Consolidated Financial Statements in the June 10-Q. On August 26, 1999, the ACC
Hearing Officer issued a recommended decision on the Proposed Rules. The
recommended decision proposes adoption of the Proposed Rules with a number of
modifications which the recommended decision states do not change the Proposed
Rules in any substantive manner.
The ACC is tentatively scheduled to consider this recommendation at its
next regularly scheduled open meeting on September 14, 1999.
Item 7. Financial Statement, Pro Forma Financial Information and
Exhibits
(c) Exhibits
Pinnacle West hereby incorporates the following Exhibit pursuant to
Exchange Act Rule 12b-32 and Regulation ss.229.10(d) by reference to the filing
set forth below:
Origianally
Filed
Exhibit No. Description As Exhibit File No. (a) Date Effective
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10.1 Settlement 10.1 to APS' 1-4473 5-19-99
Agreement August 26, 1999
Form 8-K Report
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(a) Reports filed under File No. 1-4473 were filed in the office of the
Securities and Exchange Commission located in Washington, D.C.
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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: August 27, 1999 By: Nancy C. Loftin
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Nancy C. Loftin
Vice President and General Counsel
