Pinnacle West Capital Corporation (Pinnacle West) owns Arizona Public Service Company (APS), its major subsidiary. APS is a vertically integrated electric utility that provides either retail or wholesale electric service to most of the States of Arizona. Pinnacle West’s other principal subsidiary is SunCor Development Company (SunCor), which is engaged in real estate development activities in the western United States. Pinnacle West operates in two segments: the regulated electricity segment (accounting for 93% of operating revenues during the year ended December 31, 2008), which consists of regulated retail and wholesale electricity businesses (primarily electric service to Native Load customers) and related activities, and includes electricity generation, transmission and distribution, and the real estate segment (accounting for 4% of operating revenues in 2008), which consists of SunCor’s real estate development and investment activities.