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Pinnacle West Posts Higher Q2 Revenue on Customer Growth, Power Demand

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Pinnacle West (PNW) reported higher Q2 electric operating revenue on Tuesday, supported by strong customer growth, increased retail electricity sales, and higher purchased renewable power.

The utility, which owns Arizona Public Service, said retail revenue increased to $1.40 billion during the quarter from $1.31 billion a year ago, driven by gains in both residential and business customers.

Residential revenue rose to $696 million in Q2, up from $652 million for the corresponding period a year earlier, while business revenue climbed to $708 million from $654 million.

Pinnacle West said that total electricity sales rose by 11.7% to 10.54 gigawatt-hours in Q2 from 9.43 GWh a year earlier.

Retail electricity sales rose to 9.53 GWh in Q2 compared to 8.53 GWh a year ago, with residential sales increasing 9% to 4.01 GWh and business sales advancing about 14% to 5.52 GWh. Wholesale electricity sales also increased to 1.01 GWh from 904 GWh.

APS added nearly 29,300 customers over the past year, bringing its total customer base to 1.46 million, an increase of 2.1% from the prior year. Residential customers rose by more than 27,000, while business customers increased by about 2,300.

Pinnacle West said power demand was supported by warmer weather. Cooling degree days, a measure of air-conditioning demand, rose to 619 in Q2 compared to 578 a year ago and remained well above the 10-year average of 534.

On the supply side, APS generated 5.96 GWh of electricity in Q2, down from 6.09 GWh a year earlier. Coal generation fell to 1.36 GWh from 1.45 GWh during the quarter, while gas-fired generation slipped to 2.16 GWh from 2.21 GWh.

Purchased power increased to 4.93 GWh in Q2 from 3.72 GWh, driven by renewable purchases, which rose to 2.86 GWh during the quarter from 1.92 GWh. Total energy sources increased to 10.89 GWh, up from 9.81 GWh in the prior-year period.

The utility's nuclear fleet maintained an 86% capacity factor, unchanged from a year earlier, while coal plant utilization improved to 64% in Q2 from 50%. Gas and oil capacity factors eased to 26%, down from 28%, and the overall system average increased to 44% from 43%.

Price: $101.33, Change: $+0.52, Percent Change: +0.52%

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