Arizona Public Service, Phoenix Alan Bunnell, 602-250-3376 (Media) Rebecca Hickman, 602-250-5668 (Analyst) Lisa Malagon, 602- 250-5671 (Analyst) www.aps.com

Arizona Public Service (APS) announced today that it has concluded new long-term agreements to supply about 75 megawatts of power to ten electrical and irrigation districts located throughout the state of Arizona.

Effective January 1, 2006, the new 15-year contracts will replace an existing 10-year pact that expires at the end of 2005. The Company estimates the new contracts will increase future year revenues $5 million annually compared with the previous contract.

"These new agreements enhance and extend our relationships with valued, long-term customers, all of whom provide critical infrastructure for Arizona's agricultural community," said David Hansen, APS Vice President of Power Marketing & Trading.

The majority of the districts operate in either western Maricopa or Pinal counties.

APS, Arizona's largest and longest-serving electric utility, serves more than 989,500 customers in 11 of the state's 15 counties. APS, with headquarters in Phoenix, is the largest subsidiary of Pinnacle West Capital Corporation (NYSE: PNW).

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