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UNITED STATES 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): April 18, 2007
         
Commission File Number   Exact Name of Registrant as Specified in
Charter; State of Incorporation;
Address and Telephone Number 		  IRS Employer
Identification Number
         
         
1-8962   Pinnacle West Capital Corporation
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000 		  86-0512431
         
1-4473   Arizona Public Service Company
(an Arizona corporation)
400 North Fifth Street, P.O. Box 53999
Phoenix, AZ 85072-3999
(602) 250-1000 		  86-0011170
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
     This combined Form 8-K is separately filed by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing any information that does not relate to such registrant, and therefore makes no representation as to any such information.
 
 

 

 

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  EX-10.2
  EX-99.1

 

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Item 8.01. Other Events.
     On April 18, 2007, the Board of Directors of Pinnacle West Capital Corporation (the “Company”) adopted an amendment (the “Amendment”) to the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan (the “2007 Plan”). The Amendment provides that the term of any Stock Appreciation Rights (as defined in the 2007 Plan) granted under the 2007 Plan will not exceed ten years. The 2007 Plan is subject to the approval of the Company’s shareholders at the Company’s 2007 Annual Meeting of Shareholders to be held on May 23, 2007.
     If the shareholders approve the 2007 Plan, the Company will not issue any additional shares or awards under the Pinnacle West Capital Corporation 2002 Long-Term Incentive Plan (the “2002 Plan”) or under the Directors Equity Plan. At March 31, 2007, a total of 1,475,771 shares of Company common stock could potentially be issued pursuant to outstanding awards under the 2002 Plan, a substantial portion of which are subject to the achievement of three-year performance measures. No awards have been made under the 2002 Plan since March 31, 2007 and no awards will be made under the 2002 Plan before the 2007 Annual Meeting of Shareholders. Exhibit 99.1 provides information regarding outstanding stock awards at December 31, 2006 and March 31, 2007.
Item 9.01. Financial Statements and Exhibits.
10.1   Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan (incorporated by reference to Appendix B to the Company’s definitive Proxy Statement filed with the Securities and Exchange Commission on April 20, 2007, File No. 1-8962)
10.2   First Amendment of the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan, dated as of April 18, 2007
99.1   Summaries of Outstanding Stock Awards at December 31, 2006 and March 31, 2007

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SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
 
      PINNACLE WEST CAPITAL CORPORATION
 
      (Registrant)
 
       
Dated: April 20, 2007
  By:             /s/ Donald E. Brandt
 
       
 
                Donald E. Brandt
 
                Executive Vice President and
 
                Chief Financial Officer
         
 
      ARIZONA PUBLIC SERVICE COMPANY
 
      (Registrant)
 
       
Dated: April 20, 2007
  By:             /s/ Donald E. Brandt
 
       
 
                Donald E. Brandt
 
                President and Chief Financial Officer

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Exhibit 10.2
FIRST AMENDMENT
TO THE
PINNACLE WEST CAPITAL CORPORATION
2007 LONG-TERM INCENTIVE PLAN
     Pinnacle West Capital Corporation (the “Company”) hereby amends the Pinnacle West Capital Corporation 2007 Long-Term Incentive Plan (the “Plan”), pursuant to Section 14.1 of the Plan, as follows:
     1. Section 8.1 (b) of the Plan is hereby amended in its entirety to read as set forth below:
     (b) Other Terms . All SAR grants will be evidenced by an Award Agreement. The terms, methods of exercise, methods of settlement, and any other terms and conditions of any SAR will be determined by the Committee at the time of the grant of the Award and as set forth in the Award Agreement; provided that the form of consideration payable in settlement of a SAR shall be Stock or cash as specified in the Award Agreement; and provided, further, that the term of any SAR granted under the Plan shall not exceed ten years.
     2. Section 12.2 of the Plan is hereby amended in its entirety to read as set forth below:
     12.2 TERM OF AWARD . The term of each Award shall be for the period determined by the Committee, provided that in no event shall the term of any Option or Stock Appreciation Right exceed a period of ten years from the date of its grant.
     3. This First Amendment shall be effective as of the Effective Date of the Plan, as determined in accordance with Section 2.1 of the Plan.
     4. This First Amendment amends only the provisions of the Plan noted above.
     IN WITNESS WHEREOF, the Company has caused this First Amendment to be executed by its duly authorized representative on this                      day of April, 2007.
             
 
  PINNACLE WEST CAPITAL CORPORATION
             
 
  By:        
         
 
      Its:    
 
           

 

     
Exhibit 99.1
Reconciliation of Outstanding Options and Nonvested Awards (other than Options) from 2006 10K to 2007 Proxy Statement to outstanding as of 3/31/2007
                                                                                                 
                                                  Number of                                      
                    All             All Outstanding             securities to be                             Number of     Outstanding  
    All Outstanding             Nonvested             Options and             issued upon                             securities to be     Options and  
    Options and             Performance             Nonvested             exercise of                             issued upon     Nonvested  
    Nonvested             Share and             Awards (other     Additional     outstanding             Performance     Outstanding     exercise of     Awards (other  
    Performance     Canceled     Stock             than options) as     Shares if     options, warrants             Shares     Performance     outstanding     than options) as  
    Share and Stock     Performance     Ownership     Estimated     reported in     Maximum     and rights per 2007     Options     Cancelled     Share Grants     options, warrants     of March 31,  
    Ownership     Shares as of     Grants as of     Performance     2006     Potential     proxy statement     Exercised     1/1/2007-     (Target) as of     and rights as of     2007 for 2002  
    Grants (1)     12/31/2006     12/31/2006     Share Payouts (2)     10K (3)     Payout (4)     (5)     1/1/2007-3/31/2007     3/31/2007     3/31/2007     3/31/2007 (7)     LTIP Only  
     
1994 Plan Options
    741,999                               741,999               741,999       (59,766 )                     682,233       —  
2002 Plan Options
    345,639                               345,639               345,639       (38,832 )                     306,807       306,807  
 
                                                                                       
Subtotal Outstanding Options
                                    1,087,638               1,087,638                               989,040       306,807  
 
                                                                                               
2005 Performance Share Grant
    215,300       (17,910 )     197,390       75 %     148,042       246,738       394,780               (9,475 )     187,915       375,830       375,830  
2006 Performance Share Grant
    274,070       (5,535 )     268,535       100 %     268,535       268,535       537,070               (6,885 )     261,650       523,300       523,300  
2006 Stock Ownership Grant (6)
    12,526               12,526               12,526               —                               —       —  
2007 Performance Share Grant
                                                                            134,917       269,834       269,834  
 
                                                                                       
Subtotal Performance and Stock Ownership Shares
                                    429,103               931,850                               1,168,964       1,168,964  
 
                                                                                               
Total
                                    1,516,741               2,019,488                               2,158,004       1,475,771  
 
                                                                                       
 
(1)   Performance share amounts are original grant at Target (page 115 of 2006 10K)
 
(2)   Best estimates at year-end 2006 of potential payouts of performance share grants (% of Target)
 
(3)   Footnote 16, page 115 of 2006 10K
 
(4)   Proxy statement reflects maximum potential payout (200% of Target) of performance shares — see page 42 of 2007 proxy statement
 
(5)   From equity compensation plans approved by security holders — see page 42 of 2007 proxy statement
 
(6)   2006 Stock Ownership shares were paid out in February 2007 and therefore are not included in the proxy (actual payout was 12,898 shares)
 
(7)   Reflects maximum potential payout (200% of Target) of performance shares. The weighted average exercise price of the outstanding options is $40.70. The weighted average remaining contractual term of the outstanding options is 3.8 years.