Utility firm Exelon's profit beats estimates on higher electricity rates
Oct 30 (Reuters) -Utility firm Exelon EXC.O beat Wall Street estimates for third-quarter profit on Wednesday, helped by higher electricity rates.
U.S. electric utilities have been seeking to raise customer power bills in 2024 to fund infrastructure upgrades as the country's grid faces extreme weather events and rising demand from industry electrification and data center expansion.
Utilities are poised to benefit from a surge in demand for power, driven primarily by the artificial intelligence technology and data centers and as homes and businesses use more electricity for heating and transportation.
Exelon has identified more than 11 gigawatts of potential data-center demand growth within its service territory, up from 6 GW in the second quarter.
The company said the requested capacity from projects is in an official phase of engineering with deposits paid, but not yet in service, as of the third quarter.
Earnings at Exelon's Commonwealth Edison unit (ComEd), the largest electric utility in Illinois, rose 8% on higher distribution rate base and return on regulatory assets.
The Chicago-based company posted adjusted operating earnings per share of 71 cents for the third quarter, versus analysts' average estimate of 67 cents, according to data compiled by LSEG.
Exelon also said it has filed with the Delaware Public Service Commission to increase its annual natural gas rates by $36 million and expects a decision in the first quarter of 2026.
Rate-case proceedings are used to determine the amount that customers need to pay for electricity, natural gas, private water and steam services provided by regulated utilities.
The company's overall revenue was at $6.15 billion for the quarter ended Sept. 30, compared with estimates of $5.85 billion.
Reporting by Pooja Menon; Editing by Shilpi Majumdar
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