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SEC filingStrong operational quarter driven by surging large-load customer demand and extreme weather, with net income swinging from a loss to $35.1M, though operating cash flow declined on higher working capital needs.
Revenue for the first quarter of 2026 was $1.15 billion, an increase of 11.4% compared to $1.03 billion in the same period last year. The growth was primarily driven by increasing demand from large load customers, including data centers and manufacturing facilities, as well as extreme weather conditions in February and March that boosted electricity consumption. APS has seen rising demand from large load customers in recent years and has developed a queue to prioritize projects while maintaining reliability and affordability for existing customers.
On December 17, 2024, the Arizona Corporation Commission approved a Limited Rehearing ROO requiring APS to propose a revenue allocation based on a site-load cost of service study in its next rate case to bring parity between solar and non-solar customers. APS continues to seek opportunities to streamline processes, mitigate cost increases, and improve customer satisfaction. Participation in the Western Energy Imbalance Market and future participation in Markets+ are expected to lower fuel and purchased-power costs and improve reliability.