(Reuters) - Pinnacle West Capital (NYSE:PNW) on Thursday posted a 22% rise in third-quarter profit as the utility got a boost from higher electricity demand due to extreme hot weather.
The company recorded a surge in electricity demand after summer temperatures set new records in the United States, pushing people to crank up their air conditioning.
According to the National Weather Service, the average high temperature in the third quarter was 108.9 degrees - an increase of 4.6% year-over-year.
"As a result of the historically hot weather, our customers used more energy to cool their homes and businesses than under normal weather conditions. This increase - and continued robust customer growth of 2% in the quarter - led to stronger financial results," said Pinnacle West CEO Jeff Guldner in a statement.
The company's main unit, Arizona Public Service (APS), also marked record-high demand of 8,162 megawatts on July 15, shattering the previous record set in 2020 by more than 500 megawatts, the company said.
Through APS, the company provides retail electricity service to about 1.4 million Arizona homes and businesses.
The Phoenix, Arizona-based utility said net income attributable to common shareholders climbed to $398.2 million, or $3.50 per share, for the quarter ended Sept. 30, from last year's $326.3 million, or $2.88 per share.
The utility maintained its annual earnings outlook of $4.10 to $4.30 per share.