Pinnacle West quarterly revenue climbs on higher rates
The company's largest subsidiary, APS, which provides electric services to about 1.4 million customers in Arizona, saw a 2.1% rise in customer growth for the whole year, and expects average annual growth in the range of 1.5% to 2.5% through 2027.
Its rate case also helped its revenue, which is a process used to establish the amount that customers pay for electricity, natural gas, private water and steam services provided by regulated utilities.
Revenues came in at $1.09 billion for the quarter, beating analysts' estimate of $1.04 billion, as per data compiled by LSEG.
The utility expects electricity sales to increase between 4% and 6% annually over the next three years, amid record-high U.S. power consumption due to increased electrification and data center expansion.
"A dramatic increase in commercial and industrial customers in our service territory - including new semiconductor manufacturing plants and expanding data center operations - is leading to incredible economic growth and triggering a historic wave of demand of electricity in our state," said APS President Ted Geisler.
APS expects to add 9,805 megawatts of renewable power, battery storage and natural gas to the grid between 2025 and 2028 to meet the oncoming demand.
However, the Phoenix, Arizona-based utility said net loss attributable to common shareholders widened to $6.8 million for the quarter ended December 31, from a loss of $23,000 a year earlier.
This was in part due to total expenses rising 10% to $1.01 billion from $917 million, while total interest expenses also rose 9.6% from the same quarter last year.
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