Feb 12 (Reuters) – U.S. utility Exelon on Thursday forecast full-year adjusted profit largely above analysts’ expectations after beating fourth-quarter earnings estimates, driven by higher electricity rates and rising power demand.
U.S. utilities are raising prices and stepping up capital expenditure to boost infrastructure, to keep pace with the surge in power demand from tech giants that are racing to build data centers to support advanced and complex artificial intelligence-related tasks.
Exelon projected $41.3 billion of capital expenditure over the next four years, from $38 billion previously.
“With a $41.3 billion four-year capital plan and 7.9% rate base growth, we are well-positioned to deliver annualized earnings growth near the top end of 5% to 7% through 2029,” said CFO Jeanne Jones.
The Chicago-based company forecast 2026 adjusted profit between $2.81 and $2.91 per share, compared with analysts’ average estimate of $2.84 per share, according to data compiled by LSEG.
Exelon serves more than 10.9 million customers through six fully regulated transmission and distribution utilities.
Net income at its Commonwealth Edison unit (ComEd), the largest electric utility in Illinois, rose slightly to $244 million in the fourth quarter.
Earnings at Exelon’s PECO unit, Pennsylvania’s largest electric and natural gas utility, fell nearly 17% to $162 million due to higher taxes and costs.
The company posted an adjusted profit of 59 cents per share for the three months ended December 31, compared with analysts’ average estimate of 55 cents per share.
(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi Majumdar ans Shinjini Ganguli)
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