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Researched by Industrial Info Resources (Sugar Land, Texas)--Arizona Public Service Company (APS) (Phoenix, Arizona) is planning for a total $1.8 billion in capital investment for 2023, and an estimated $5.45 billion through 2025, which would be buoyed by transmission and distribution (T&D) spending, according to the utility's third-quarter earnings presentation, released November 2. APS is the principal subsidiary of Pinnacle West Capital Corporation (NYSE:PNW) (Phoenix, Arizona).
APS serves about 1.4 million customers as the largest supplier of electricity in Arizona, and its service area stretches from the Phoenix area westward, nearly to the California state line, and northward beyond Flagstaff.
On the third-quarter earnings conference call, Chief Financial Officer Andrew Cooper said APS' 2023 capex of $1.8 billion is up from a previous guidance of from $1.67 billion, due to "distribution investments needed to serve our growing service territory, and generation investments to support the reliability of our fleet."
Focusing on transmission spending, Cooper said: "We now expect 2023 transmission capital within our regulated footprint at a spend level nearly 50% higher than last year."
Next June, APS plans to begin construction of its Runway power line project, which entails constructing a new transmission line and a new substation, and upgrading an existing substation. The double-circuit, 230-kilovolt (kV) line would connect the Runway Substation in Goodyear to an existing power line along the Agua Fria River, and run to the planned Diamond Substation in Avondale. The project is expected to wrap up in 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for related project reports.
The project will support two data center operations in the area, according to the APS website. The Runway Substation already serves Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) Goodyear Data Center, while the Diamond Substation is being designed to serve STACK Infrastructure's (Denver, Colorado) planned data center campus in Avondale.
Another transmission project expected to kick off next year is the upgrading of underground transmission line, specifically rebuilding 3.5 miles of 230-kV line between the Country Club and Lincoln Street substations in Phoenix and replacing the old cable with new high-density polyethylene-insulated cable. Click here for the project report.
On the earnings conference call, Pinnacle West Chief Executive Officer Jeff Guldner said the company recently filed its 15-year integrated resource plan with the Arizona Corporation Commission: "We anticipate that a variety of resource types will be important in serving this period of robust customer growth and look forward to partnering with customers, developers and stakeholders on bringing these technologies online."
Pinnacle West reported net income of $398.2 million for the third quarter of 2023, up from $326.3 million year-over-year. The company specifically pointed to record-setting summer weather as the driving factor for increased revenue, including daily temperature records in the Phoenix metropolitan area--for example, 22 days at or above 115 degrees Fahrenheit, and 55 days at or above 110 degrees.
On July 15, APS customers set a record peak demand of 8,162 megawatts, the company said, blowing past a previous record set in 2020 by more than 500 megawatts. In addition, customer demand on 17 other days in July and August also surpassed 2020's previous record peak.
Industrial Info is tracking 47 capital projects involving APS that total about $2.8 billion. Subscribers can click here for a full list.
Earlier this month, Arizona's second-largest electric utility also highlighted increasing energy demand when discussing its capital-spending outlook. For more information, see October 12, 2023, article - Arizona Utility Plans Billions in Capital Projects Over 2025-2035 Period.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
APS serves about 1.4 million customers as the largest supplier of electricity in Arizona, and its service area stretches from the Phoenix area westward, nearly to the California state line, and northward beyond Flagstaff.
On the third-quarter earnings conference call, Chief Financial Officer Andrew Cooper said APS' 2023 capex of $1.8 billion is up from a previous guidance of from $1.67 billion, due to "distribution investments needed to serve our growing service territory, and generation investments to support the reliability of our fleet."
Focusing on transmission spending, Cooper said: "We now expect 2023 transmission capital within our regulated footprint at a spend level nearly 50% higher than last year."
Next June, APS plans to begin construction of its Runway power line project, which entails constructing a new transmission line and a new substation, and upgrading an existing substation. The double-circuit, 230-kilovolt (kV) line would connect the Runway Substation in Goodyear to an existing power line along the Agua Fria River, and run to the planned Diamond Substation in Avondale. The project is expected to wrap up in 2025. Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Project Database can click here for related project reports.
The project will support two data center operations in the area, according to the APS website. The Runway Substation already serves Microsoft Corporation's (NASDAQ:MSFT) (Redmond, Washington) Goodyear Data Center, while the Diamond Substation is being designed to serve STACK Infrastructure's (Denver, Colorado) planned data center campus in Avondale.
Another transmission project expected to kick off next year is the upgrading of underground transmission line, specifically rebuilding 3.5 miles of 230-kV line between the Country Club and Lincoln Street substations in Phoenix and replacing the old cable with new high-density polyethylene-insulated cable. Click here for the project report.
On the earnings conference call, Pinnacle West Chief Executive Officer Jeff Guldner said the company recently filed its 15-year integrated resource plan with the Arizona Corporation Commission: "We anticipate that a variety of resource types will be important in serving this period of robust customer growth and look forward to partnering with customers, developers and stakeholders on bringing these technologies online."
Pinnacle West reported net income of $398.2 million for the third quarter of 2023, up from $326.3 million year-over-year. The company specifically pointed to record-setting summer weather as the driving factor for increased revenue, including daily temperature records in the Phoenix metropolitan area--for example, 22 days at or above 115 degrees Fahrenheit, and 55 days at or above 110 degrees.
On July 15, APS customers set a record peak demand of 8,162 megawatts, the company said, blowing past a previous record set in 2020 by more than 500 megawatts. In addition, customer demand on 17 other days in July and August also surpassed 2020's previous record peak.
Industrial Info is tracking 47 capital projects involving APS that total about $2.8 billion. Subscribers can click here for a full list.
Earlier this month, Arizona's second-largest electric utility also highlighted increasing energy demand when discussing its capital-spending outlook. For more information, see October 12, 2023, article - Arizona Utility Plans Billions in Capital Projects Over 2025-2035 Period.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
