Published on 12 Mar 2024 on Zacks via Yahoo Finance

Pinnacle West (PNW) Rides on Renewable Power, Customer Growth

Pinnacle West Capital Corporation’s PNW strategic investments in generation, transmission and distribution lines will help serve customers efficiently. Development activities in PNW’s service territories will improve its overall performance.However, this currently Zacks Rank #4 (Sell) company has to face risks related to any unplanned outages in its nuclear generation facilities.

Tailwinds

Pinnacle West has a capital plan of $7.8 billion for 2023-2026, at an average annual growth rate of 5-7%. It expects transmission investments of more than $5 billion over the next ten years. The company projects long-term retail customer growth of 1.5-2.5% and weather-normalized retail electricity sales growth of 4-6%.The ongoing investment and planned future investment will aid the company in delivering clean systems and affordable services, and developing innovative programs to assist its customers. The company sticks to its goal of decreasing operating and maintenance expenses per megawatt-hour.PNW’s Metro Phoenix service region continues to witness solid growth in commercial activities. It expects new investments and business establishments to increase the demand for its services.Pinnacle West continues to focus on enhancing its renewable capacity. During 2024-2026, the company is projected to invest nearly $2.2 billion in boosting clean power generation. Since 2020, it contracted more than 4,900 megawatts of clean energy and storage to be in service for Arizona Public Service Company’s customers by the end of 2025.