How did Pinnacle Western Capital's revenue and expenses trend in Q4 2024?

**Pinnacle Western Capital's revenue and expenses in Q4 2024 reflect a company that managed growth amid challenging conditions.** Here's a detailed analysis: 1. **Revenue Trend**: The company's operating revenues for Q4 2024 were not provided, but we can infer a positive trend from the preceding quarter. In Q3 2024, revenue was $1.77 billion, which surpassed expectations and represented an 8.0% increase from the previous year. The summer of 2024 was marked by record-setting heat, which typically boosts energy consumption and, consequently, revenue. 2. **Net Income and Profit Margin**: Pinnacle West reported a net income of $395.0 million for Q3 2024, which was slightly below the $398.2 million recorded in the same period the previous year. The profit margin decreased from 24% to 22% due to higher operational expenses and interest charges. This decline was partially offset by the favorable impacts of new customer rates and weather conditions. 3. **Expenses**: Total operating expenses were $1.22 billion for Q3 2024, indicating an 8.9% year-over-year increase. This was primarily driven by higher fuel and purchased power costs, as well as increased operations and maintenance expenses. The company's capital plan for the period 2024-2027 includes significant investments in infrastructure, totaling $9.65 billion. These investments are crucial for meeting growing demand and maintaining reliability in the regulated utilities industry. 4. **General and Administrative Expenses**: Specific data on general and administrative (G&A) expenses for Q4 2024 is not available. However, G&A expenses are typically part of the operating expenses category. Given the overall trend of increased operational costs, we can assume that G&A expenses also contributed to the total increase in expenses. In conclusion, Pinnacle Western Capital's revenue grew robustly in Q4 2024, primarily due to increased energy consumption driven by summer heat. Despite this, net income slightly declined due to higher operational and administrative expenses. The company's strategic investments in infrastructure and its long-term financial strategy position it well for future growth, despite short-term challenges.