Pinnacle West's quarterly profit falls on lower power demand from milder Arizona weather

Aug 6 (Reuters) - Pinnacle West Capital PNW.N reported a 5.5% fall in second-quarter profit on Wednesday, as mild weather across Arizona cut into the utility's power demand during the April-June period.

Reduced temperatures in the quarter led to around 15% fewer cooling degree-days, a key measure of energy demand, compared to the same period in 2024, which included record-breaking heat.

"Given how big an impact air conditioning has on energy use in Arizona, it's no surprise that the cooler weather resulted in lower earnings this quarter," CEO Ted Geisler said in a statement.

Higher costs for fuel, maintenance and borrowing also weighed on results, alongside lower tax credits and pension-related income.

The company's total operating expense rose to $1.05 billion during the quarter, from $995.2 million during the same period a year ago.

Its total interest costs rose to $101.9 million, from $97.9 million a year ago.

The Phoenix, Arizona-based utility said net income attributable to common shareholders declined to $192.6 million, or $1.58 per share, for the quarter ended June 30, from last year's $203.8 million, or $1.76 per share.

Its main subsidiary, Arizona Public Service, which serves about 1.4 million homes and businesses in the state, saw a 2.4% increase in customers in the quarter.