APS Reaches Agreement for new Arizona-Based Wind Project
99-MW Wind Farm Will Provide Renewable Energy for 25,000 Customers

July 23, 2010

PHOENIX - Arizona Public Service Co. has entered into a long-term power purchase agreement with Perrin Ranch Wind LLC, a subsidiary of NextEra Energy Resources, for 100 percent of the energy output from a wind farm located 13 miles north of Williams in Coconino County, Ariz. When completed, the 99-megawatt Perrin Ranch Wind Energy Center will be the largest wind project in Arizona.

"Perrin Ranch is ideally suited for our first Arizona-based wind project. It is particularly important for northern Arizona and our company," said APS President and Chief Operating Officer Don Robinson. "We continue to seek renewable energy projects that provide the best value for our customers."
The project will contain 62 wind turbine generators situated on rural grazing land and will provide enough energy for 25,000 homes when running at full capacity.
The agreement is an important first step. However, several critical steps remain, including Arizona Corporation Commission approval of the power purchase agreement and successful siting, permitting and interconnection of the project to the state's electric grid. If all goes according to plan, construction would begin in the second half of 2011, with commercial operation expected in 2012.
The energy will help APS meet the ACC-mandated Renewable Energy Standard, as well as the Arizona-based wind provision included in the Company's 2009 regulatory settlement agreement.

"We are thrilled to add APS to our growing list of customers and appreciate their support of emission-free, renewable energy," said Mitch Davidson, president and CEO of NextEra Energy Resources. "The Perrin Ranch Wind Energy Center will be our first wind project in Arizona. This project will not only create emission-free energy; it will also bring tremendous economic benefits to the region."
APS, Arizona's largest and longest-serving electricity utility, serves more than 1.1 million customers in 11 of the state's 15 counties. With headquarters in Phoenix, APS is the principal subsidiary of Pinnacle West Capital Corp. (NYSE: PNW).

Steven Gotfried (602) 250-3040
Jim McDonald (602) 321-3738