EXHIBIT 10.2

AMENDMENT TO AGREEMENT

     THIS AMENDMENT is made and entered into by and between Arizona Public
Service Company (“APS”) and James M. Levine (“Employee”).

WITNESSETH:

     WHEREAS, APS and Employee entered into an Employment Agreement dated
October 11, 2002 (“Agreement”); and

     WHEREAS, the parties desire to correct an error in the original Agreement
by amending the Agreement to revise Employee’s allocation of additional shares
of restricted stock.

     NOW, THEREFORE, effective as of October 11, 2002, the Agreement is amended
as follows:

     1. Section 4(c) is deleted in its entirety and the following new Section
4(c) is inserted in lieu thereof:

(c) Additional Restricted Shares. In addition to (b) above, the Company agrees
to annually, for the term of this Agreement, request the Human Resources
Committee to grant Employee 2000 shares of restricted stock under the 1994
Long-Term Incentive Plan (the “1994 Plan”) without any vesting requirement, all
in accordance with the terms of the 1994 Plan and as previously agreed upon by
the parties.

     2. Except as otherwise set forth herein, the terms and conditions in the
original Agreement remain in full force and effect.

                      ARIZONA PUBLIC SERVICE COMPANY
 
           
Date:
  11-2-04   By:   /s/ Jack Davis

 

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          Jack Davis

          President and Chief Executive Officer
 
           
Date:
  11-4-04       /s/ James M. Levine

 

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          James M. Levine

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