PNW · 10-Q · 2026Q2 · Full report
Market Demand Trends
PINNACLE WEST CAPITAL CORP · 2026-08-04 · Importance 20 · Surprise 24 · In source text
Arizona customer demand increased during the six months ended June 30, 2026, supported by favorable weather, higher usage and customer growth. Growth was partially offset by pricing effects and energy-efficiency impacts. The company also reported that seasonal electricity demand affects APS cash generation and that higher retail revenues reflected changes in usage patterns and customer additions.
Key facts
- Based on past experience, a 1% variation in annual residential and small commercial and industrial kWh sales can result in increases or decreases in annual net income of approximately $25 million; a 1% variation in annual large commercial and industrial kWh sales can result in increases or decreases in annual net income of approximately $7 million. source
- APS projects annual retail electricity sales in kWh will increase 4.0% to 6.0% for 2026 and average annual growth of 5.0% to 7.0% through 2030 (excluding weather effects). source
- Typical variations from normal weather can result in increases and decreases in annual net income of up to $30 million. source
- CPI-U rose 4.2% nationally in the 12 months ended May 2026 and 3.0% in Phoenix over the 12 months ended April 2026. source
- From 2018 through 2024 CPI-U rose nationally 24.9% and rose 32.1% in Phoenix. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | mixed | contingent | 0.0% | Based on past experience, a 1% variation in annual residential and small commercial and industrial kWh sales can result in increases or… |
| net_income | mixed | contingent | 0.0% | Based on past experience, a 1% variation in annual residential and small commercial and industrial kWh sales can result in increases or… |