##### 



Exhibit 12.3
 Pinnacle West Capital Corporation
Computation of Earnings to Fixed Charges
and Preferred Stock Dividend Requirements
($000s)
 2007
    
    
    2006
    
    
    2005
    
    
    2004
    
    
    2003
    
    
    2002Earnings:Income From Continuing Operations
    
    $
    298,780
    
    
    $
    317,143
    
    
    $
    223,163
    
    
    $
    246,590
    
    
    $
    225,384
    
    
    $
    236,563Income Taxes
    
    
    150,920
    
    
    
    156,418
    
    
    
    126,892
    
    
    
    136,142
    
    
    
    102,202
    
    
    
    152,145Fixed Charges
    
    
    239,804
    
    
    
    225,119
    
    
    
    214,430
    
    
    
    214,803
    
    
    
    225,041
    
    
    
    219,178Total Earnings
    
    $
    689,504
    
    
    $
    698,680
    
    
    $
    564,485
    
    
    $
    597,535
    
    
    $
    552,627
    
    
    $
    607,886Fixed Charges:Interest Expense
    
    $
    212,620
    
    
    $
    196,826
    
    
    $
    185,087
    
    
    $
    183,527
    
    
    $
    193,973
    
    
    $
    187,039Estimated Interest Portion of Annual Rents
    
    
    27,184
    
    
    
    28,293
    
    
    
    29,343
    
    
    
    31,276
    
    
    
    31,068
    
    
    
    32,139Total Fixed Charges
    
    $
    239,804
    
    
    $
    225,119
    
    
    $
    214,430
    
    
    $
    214,803
    
    
    $
    225,041
    
    
    $
    219,178Preferred Stock Dividend Requirements:Income Before Income Taxes
    
    $
    449,700
    
    
    $
    473,561
    
    
    $
    350,055
    
    
    $
    382,732
    
    
    $
    327,586
    
    
    $
    388,708Net Income From Continuing Operations
    
    
    298,780
    
    
    
    317,143
    
    
    
    223,163
    
    
    
    246,590
    
    
    
    225,384
    
    
    
    236,563Ratio of Income Before Income Taxes to Net Income
    
    
    1.505
    
    
    
    1.493
    
    
    
    1.569
    
    
    
    1.552
    
    
    
    1.453
    
    
    
    1.643Preferred Stock Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Preferred Stock Dividend Requirements  Ratio (above)
Times Preferred Stock Dividends
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    
    
    
    $
    Fixed Charges and Preferred Stock Dividend Requirements:Fixed Charges
    
    $
    239,804
    
    
    $
    225,119
    
    
    $
    214,430
    
    
    $
    214,803
    
    
    $
    225,041
    
    
    $
    219,178Preferred Stock Dividend Requirements
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    239,804
    
    
    $
    225,119
    
    
    $
    214,430
    
    
    $
    214,803
    
    
    $
    225,041
    
    
    $
    219,178Ratio of Earnings to Combined Fixed Charges and
Preferred Stock Dividend Requirements (rounded down)
    
    
    2.87
    
    
    
    3.10
    
    
    
    2.63
    
    
    
    2.78
    
    
    
    2.45
    
    
    
    2.77