Utility WEC Energy posts higher profit on strong residential sales
Power demand surged as extreme heat during the summer months drove up the use of cooling appliances such as air conditioners and refrigerators.
"A warm start to the summer, steady execution of our capital plan and a continued focus on operating efficiency were major factors that shaped a strong quarter," said CEO Scott Lauber.
The company, which provides electricity and gas to nearly 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota, said quarterly residential power use rose 1.6% and total retail deliveries increased 1% over the year earlier.
Electricity consumption by small commercial and industrial customers was 0.6% higher, while large commercial and industrial customers' usage increased 0.8%.
The U.S. Energy Information Administration estimates that power consumption in the country will hit record highs in 2025 and 2026 due to data centers dedicated to artificial intelligence and cryptocurrency, and as homes and businesses use more electricity and less fossil fuels for heating and transportation.
WEC's second-quarter operating revenue rose 13.4% to $2.01 billion, compared with analysts' average estimate of $1.76 billion, according to data compiled by LSEG.
Total operating expense also rose about 14% to $1.6 billion, while interest expense was up 10% at $220.8 million.
The company's net income of $245.4 million, or 76 cents per share, was higher than the $211.3 million, or 67 cents per share, reported a year earlier.
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