Arizona Public Service parent company Pinnacle West Capital earned $276 million ($2.46/share) in the third quarter, compared with $263 million during the same period in 2016.

“Our service territory experienced solid customer growth of 1.9% as new customers moved to Arizona for job opportunities and an improved quality of life, our employees continued to demonstrate superior customer service and operational performance, and we successfully settled our rate review,” Pinnacle CEO Donald Brandt said.

The Arizona Corporation Commission allowed APS to raise its rates for the first time in five years. The company said the increase will allow it to invest in cleaner infrastructure and provide customers with new rate options.

Customer growth lifted profits by 2 cents/share compared to a year earlier despite milder temperatures. Pinnacle raised its earnings guidance to $4.25 to $4.45/share for 2017 and $4.15 to $4.30/share for 2018.

APS’ rate base is expected to grow about 6% annually, to a projected $8.2 billion in 2019.

— Jason Fordney