Feb 25 (Reuters) - Pinnacle West Capital Corp ( PNW )

reported a rise in fourth-quarter revenue on Tuesday, as the

utility got a boost from higher rates and more customer

additions.

The company's largest subsidiary, APS, which provides

electric services to about 1.4 million customers in Arizona, saw

a 2.1% rise in customer growth for the whole year, and expects

average annual growth in the range of 1.5% to 2.5% through 2027.

Its rate case also helped its revenue, which is a process

used to establish the amount that customers pay for electricity,

natural gas, private water and steam services provided by

regulated utilities.

Revenues came in at $1.09 billion for the quarter, beating

analysts' estimate of $1.04 billion, as per data compiled by

LSEG.

The utility expects electricity sales to increase between 4%

and 6% annually over the next three years, amid record-high U.S.

power consumption due to increased electrification and data

center expansion.

"A dramatic increase in commercial and industrial customers

in our service territory - including new semiconductor

manufacturing plants and expanding data center operations - is

leading to incredible economic growth and triggering a historic

wave of demand of electricity in our state," said APS President

Ted Geisler.

APS expects to add 9,805 megawatts of renewable power,

battery storage and natural gas to the grid between 2025 and

2028 to meet the oncoming demand.

However, the Phoenix, Arizona-based utility said net loss

attributable to common shareholders widened to $6.8 million for

the quarter ended December 31, from a loss of $23,000 a year

earlier.

This was in part due to total expenses rising 10% to $1.01

billion from $917 million, while total interest expenses also

rose 9.6% from the same quarter last year.