PNW · 10-Q · 2026Q2 · Full report
Revenue Performance and Mix
PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 54 · Surprise 40 · From source text
Retail electric revenues represented 95% of Pinnacle West’s total operating revenue in 2025 and averaged approximately 94% from 2023 through 2025. Electric operating revenues are driven by customer growth, weather, customer mix, usage per customer, energy-efficiency programs, distributed generation, rates, tariffs and recovery mechanisms. For the period ended June 30, 2026, weather-adjusted retail electricity sales increased 9.5% year over year, with commercial and industrial sales up 13.6% and residential sales up 3.9%. A first-quarter 2025 change in unbilled-revenue estimation reduced that quarter’s unbilled revenues and contributed approximately 0.9% to 2026 year-to-date sales growth versus the prior-year period.
Key facts
- Operating revenues less fuel and purchased power were $76 million higher for the six months ended June 30, 2026 compared with the prior-year period. source
- Operating revenues for the three months ended June 30, 2026 were $1,456 million compared with $1,359 million in the prior-year period. source
- Operating revenues for the six months ended June 30, 2026 were $2,605 million compared with $2,391 million in the prior-year period. source
- For 2025, retail electric revenues were 95% of Pinnacle West’s total operating revenue; for 2023 through 2025 retail electric revenues averaged approximately 94% of total operating revenues. source
- APS updated procedures in Q1 2025 for estimates of unbilled revenues, resulting in a downward adjustment that contributes approximately 0.9% to 2026 year-to-date sales growth compared to the same period last year. source
- Operating revenues less fuel and purchased power expenses were $16 million higher for the three months ended June 30, 2026 compared with the prior-year period. source
- For the three months ended June 30, 2026 O&M decreased $18 million related to costs for renewable energy programs and similar regulatory programs. source
- For the six months ended June 30, 2026 operations and maintenance expenses decreased $27 million compared with the prior-year period. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| revenue | positive | realized | +14.7% | Operating revenues for the six months ended June 30, 2026 were $2,605 million compared with $2,391 million in the prior-year period. |
| revenue | positive | realized | +6.7% | Operating revenues for the three months ended June 30, 2026 were $1,456 million compared with $1,359 million in the prior-year period. |
| revenue | positive | realized | +5.2% | Operating revenues less fuel and purchased power were $76 million higher for the six months ended June 30, 2026 compared with the… |