News Release: APS Honors Eight Arizona Businesses with Inaugural "Key Business partner Award"

July 23, 2010

PHOENIX - Acknowledging the important role women and minority-owned businesses play in the Company's success, APS today honored eight suppliers with its inaugural "Key Business Partner Award." The companies were recognized at a downtown luncheon designed to celebrate business diversity in our community.

"We recognize the importance of building productive and lasting relationships with our customers, business partners and the diverse communities we serve," said APS Chairman and Chief Executive Officer Don Brandt. "The eight companies honored exemplify the importance of creating strong partnerships that enable us to provide outstanding service to our 1.1 million customers throughout Arizona.

"As a company, our success is strengthened by our diverse business relationships and the economic vitality of our communities. Supplier diversity is a fundamental business strategy at APS."

Organizations honored with the 2010 Key Business Partner Award at APS's Tribute to Diverse Business at the Sheraton Phoenix Downtown Hotel include:

" American Fire Equipment Sales and Service Corp. - Ann Papuga, President
" ATL Inc. - Frank Rivera, President and CEO
" Diversified Diamond Products - Mary Dillon, President
" Diversified Support Services Inc. - Gail Kellington, President
" EnviroSystems Management Inc. - Stephanie Treptow, President
" Great Impact Inc. - Teresa Ornelas, President and CEO
" Honey Bear's BBQ - Mark Smith and Gary Clark, Owners
" Vargas General Engineering LLC - Jose L. Vargas, Owner

APS founded its Supplier Diversity and Development Department in 1992 and has set increasingly aggressive goals. Since 1999, spending on direct and indirect goods from women and minority-owned businesses has increased 77 percent. In 2010 alone, the goal is to purchase $68 million in goods and services from diverse suppliers.

Robert Esquivel, Manager of APS Supplier Diversity and Development, said, "We selected these honorees for being the best at what they do. They provide high-quality products and services at a competitive price. A healthy supplier base contributes to the well-being of our many local economies and that of APS, as well."

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).

Maria Arellano (602) 250-3155