Parent company of APS posts large increase of quarterly profits

VALLEY–The parent company of Arizona Public Service Co. had a 320 percent increase in quarterly profits but the utility still plans to ask for significant increases in customers' monthly bills.

Pinnacle West Capitol Corp. on Friday reported consolidated net income of $112.2 million from April through June, up from $26.7 million during the same period one year earlier.

Electricity sales hit an all‑time high because of above‑average temperatures in June and strong population growth.

The strong financial report comes just two months after state regulators approved APS' emergency request for a 7.6 percent electricity bill increase.

On May 2, the Arizona Corporation Commission approved a special fuel charge that raised the average residential customer's monthly bill 7.6 percent.

The state passed the measure to allow APS to collect its costs for fuel and for purchased power from a year earlier.

Still pending are two cases that could raise electricity bills even more. APS wants to recover $45 million in fuel and purchased‑power costs it paid as a result of numerous outages at the Palo Verde Nuclear Generating Station, about 50 miles west of downtown Phoenix. The Corporation Commission is auditing those outages to determine whether ratepayers should pick up the tab.

In November, APS will seek a 21 percent general rate increase. The Corporation Commission likely will not decide that case before 2007.

Pinnacle West's second‑quarter profits were a marked improvement over the first quarter, when it recorded a $5.5 million loss. It was the first quarterly loss since 1999.

The company said that profits rebounded because its customer base grew 4.6 percent and that those new customers cranked up the air conditioners during June. Average temperatures were nearly 5 degrees higher than normal.

Pinnacle West's quarterly revenue jumped to $925 million, up from $755 million a year earlier.