FirstEnergy beats first-quarter profit estimates on higher electricity rates
April 23 (Reuters) - Utility firm FirstEnergy (FE.N), opens new tab beat Wall Street estimates for first-quarter adjusted profit on Wednesday, as the utility was helped by rate hikes.
Amid extreme weather conditions and demand growth, U.S. electric utilities are increasing investments in infrastructure to cope with the demand and also improve resiliency.
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Regulated utilities use rate case proceedings to determine the amount that customers need to pay for electricity, natural gas, private water and steam services according to the investments they make.
Power bills are expected to go up as fresh electricity supply struggles to keep up with rising demand from AI data centers, increased domestic manufacturing and the electrification of industries.
The company said its quarterly total distribution deliveries rose more than 4% compared to last year, when its areas experienced mild weather.
Quarterly adjusted profit from its distribution and integrated segments rose 10 cents per share each from a year earlier.
FirstEnergy serves about 6 million customers in the areas of Ohio, Pennsylvania, New Jersey, West Virginia and Maryland through its three segments — distribution, integrated and stand-alone transmission.
The Akron, Ohio-based firm posted an adjusted profit of 67 cents per share in the first quarter, compared with analysts' estimate of 61 cents per share, according to data compiled by LSEG.
Reporting by Tanay Dhumal and Pooja Menon in Bengaluru; Editing by Alan Barona
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