PNW · 10-Q · 2026Q3 · Full report

Revenue Performance and Mix

PINNACLE WEST CAPITAL CORP · 2026-11-03 · Importance 31 · Surprise 32 · In source text

Weather-adjusted retail electricity sales increased 9.5% for the nine months ended September 30, 2026, compared with the prior-year period; residential sales rose 4.2% and commercial and industrial sales rose 13.9%. Higher residential, small commercial, and industrial customer usage, together with 2.0% retail customer growth, drove sales, while conservation, energy efficiency, and distributed renewable generation partially offset the increase. A downward adjustment to unbilled revenues in the first quarter of 2025 contributed approximately 0.5% to year-to-date 2026 sales growth versus the prior-year period. Retail electric revenues represented 95% of total operating revenues in 2025 and averaged approximately 94% of total operating revenues from 2023 through 2025.

Key facts

• Pinnacle West’s consolidated net income attributable to common shareholders was $434 million for the three months ended September 30, 2026, compared with $413 million in the prior-year period, an increase of approximately $21 million. source
• Pinnacle West’s consolidated net income attributable to common shareholders was $646 million for the nine months ended September 30, 2026, compared with $601 million in the prior-year period, an increase of approximately $45 million. source
• APS projects annual customer growth of 1.5%–2.5% in 2026 and average annual growth of 1.5%–2.5% through 2030. source
• APS projects weather-adjusted annual retail electricity sales growth of 8.0%–10.0% in 2026 and on average through 2030, including customer conservation, efficiency, and distributed renewable generation. source
• Pinnacle West’s operating revenues less fuel and purchased power were $126 million higher for the nine months ended September 30, 2026 than in the prior-year period. source
• A 1% variation in annual residential and small commercial and industrial kWh sales projections can change annual net income by approximately $25 million under normal business conditions. source
• Typical variations from normal weather can increase or decrease annual net income by up to $30 million. source
• Pinnacle West’s nine-month operations and maintenance expenses decreased $31 million year over year. source

Impact estimates