PNW · 10-Q · 2026Q3 · Full report

Interest Expense Trends

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 54 · Surprise 40

For the nine months ended September 30, 2026, interest charges, net of allowances for borrowed funds used during construction, increased $55 million to $363 million from $308 million, an increase of approximately 17.9%. APS’s comparable interest charges increased $42 million, from $244 million to $286 million. Pinnacle West attributed the higher charges primarily to increased debt balances, partially offset by higher allowance for equity funds used during construction. In the third quarter, Pinnacle West’s interest charges increased $14 million to $125 million.

Key facts

• Pinnacle West’s nine-month interest charges, net of allowance for borrowed funds and equity funds used during construction, were $48 million higher year over year, primarily due to higher debt balances, partly offset by higher allowance for equity funds used during construction. source
• Pinnacle West’s third-quarter interest charges, net of allowance for borrowed funds and equity funds used during construction, were $11 million higher year over year, primarily due to higher debt balances, partly offset by higher allowance for equity funds used during construction. source
• Pinnacle West and APS’s bank credit agreements have an interest-rate pricing grid tied to current credit ratings. source