Aug 6 (Reuters) - Pinnacle West Capital ( PNW ) reported

a 5.5% fall in second-quarter profit on Wednesday, as mild

weather across Arizona cut into the utility's power demand

during the April-June period.

Reduced temperatures in the quarter led to around 15% fewer

cooling degree-days, a key measure of energy demand, compared to

the same period in 2024, which included record-breaking heat.

"Given how big an impact air conditioning has on energy use

in Arizona, it's no surprise that the cooler weather resulted in

lower earnings this quarter," CEO Ted Geisler said in a

statement.

Higher costs for fuel, maintenance and borrowing also

weighed on results, alongside lower tax credits and

pension-related income.

The company's total operating expense rose to $1.05 billion

during the quarter, from $995.2 million during the same period a

year ago.

Its total interest costs rose to $101.9 million, from $97.9

million a year ago.

The Phoenix, Arizona-based utility said net income

attributable to common shareholders declined to $192.6 million,

or $1.58 per share, for the quarter ended June 30, from last

year's $203.8 million, or $1.76 per share.

Its main subsidiary, Arizona Public Service, which serves

about 1.4 million homes and businesses in the state, saw a 2.4%

increase in customers in the quarter.