Nov 3 (Reuters) - Pinnacle West Capital ( PNW ) reported

a rise in third-quarter profit on Monday, boosted by rising

power demand due to scorching summer heat, lower operations and

maintenance costs, and customer additions.

The Phoenix, Arizona-based electric utility said its service

areas experienced record temperatures during the summer months,

leading to higher electricity consumption.

"Driven by one of the fastest-growing service territories in

the country and the third-hottest Arizona summer on record, we

experienced an increase in retail sales that helped contribute

to solid third-quarter financial results," said CEO Ted Geisler.

Company's unit, Arizona Public Service (APS), which provides

electricity to about 1.4 million customers, intends to invest

more than $2.5 billion annually through 2028 for infrastructure

additions and upgrades, it said.

Utilities in the U.S. have been adding billions of dollars

to their spending budgets as they field massive requests for new

power capacity from Big Tech companies in search for viable

locations for data centers, which could support complex

AI-related tasks.

The U.S. Energy Information Administration in October

forecast power demand to hit record highs in 2025 and 2026. The

S&P index tracking utilities also rose 6.8% in the

quarter ended September 30.

The utility said net income attributable to common

shareholders climbed to $413.2 million, or $3.39 per share, for

the quarter ended September 30, from last year's $395 million or

$3.37 per share.

Operating revenue for the third quarter was reported at

$1.82 billion, up from $1.77 billion a year ago. Operations and

maintenance expenses fell nearly 3% to $299.62 million from a

year ago.

The utility forecast current-year consolidated earnings

forecast between $4.90 and $5.10 per share, higher than its

prior outlook of $4.40 to $4.60 apiece.

Pinnacle expects 2026 consolidated earnings of $4.55 to

$4.75 per share.