APS 2011 Annual Report Download - page 26

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FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on current expectations. These
forward-looking statements are often identified by words such as “estimate,” “predict,” “may,”
“believe,” “plan,” “expect,” “require,” “intend,” “assume” and similar words. Because actual results
may differ materially from expectations, we caution readers not to place undue reliance on these
statements. A number of factors could cause future results to differ materially from historical results,
or from outcomes currently expected or sought by Pinnacle West or APS. In addition to the Risk
Factors described in Item 1A and in Item 7 – “Management’s Discussion and Analysis of Financial
Condition and Results of Operations,” these factors include, but are not limited to:
 our ability to achieve timely and adequate rate recovery of our costs, including returns on debt
and equity capital;
 our ability to manage capital expenditures and other costs while maintaining reliability and
customer service levels;
 variations in demand for electricity, including those due to weather, the general economy,
customer and sales growth (or decline), and the effects of energy conservation measures and
distributed generation;
 power plant and transmission system performance and outages;
 volatile fuel and purchased power costs;
 fuel and water supply availability;
 regulatory and judicial decisions, developments and proceedings;
 new legislation or regulation, including those relating to environmental requirements and nuclear
plant operations;
 our ability to meet renewable energy and energy efficiency mandates and recover related costs;
 risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty;
 competition in retail and wholesale power markets;
 the duration and severity of the economic decline in Arizona and current real estate market
conditions;
 the cost of debt and equity capital and the ability to access capital markets when required;
 changes to our credit ratings;
 the investment performance of the assets of our nuclear decommissioning trust, pension, and
other postretirement benefit plans and the resulting impact on future funding requirements;
 the liquidity of wholesale power markets and the use of derivative contracts in our business;
 potential shortfalls in insurance coverage;
 new accounting requirements or new interpretations of existing requirements;
 generation, transmission and distribution facility and system conditions and operating costs;
 the ability to meet the anticipated future need for additional baseload generation and associated
transmission facilities in our region;
 the willingness or ability of our counterparties, power plant participants and power plant land
owners to meet contractual or other obligations or extend the rights for continued power plant
operations;
 technological developments affecting the electric industry; and
 restrictions on dividends or other provisions in our credit agreements and ACC orders.
These and other factors are discussed in Risk Factors described in Item 1A of this report, which
readers should review carefully before placing any reliance on our financial statements or disclosures.
Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal
estimates change, except as required by law.