WEC Energy posts higher first-quarter profit on strong power demand

May 6 (Reuters) - WEC Energy WEC.N reported a first-quarter profit on Tuesday that rose 16.4% on the back of increased power consumption by residential, industrial and commercial customers.

Power consumption is expected to reach record highs in 2025 and 2026, driven by AI and data centers as well as residential and commercial customers, according to the U.S. Energy Information Administration.

WEC Energy's natural gas deliveries in Wisconsin, excluding natgas used for power generation, rose 15.5% in the first quarter.

The company provides natural gas to customers via its units We Power and Wisconsin Public Service.

Residential power use rose by 5.5% and total retail deliveries increased by nearly 3%, WEC Energy said.

The company's first-quarter operating revenue rose 17.5% to $3.15 billion, compared with analysts' average expectation of $2.82 billion, according to data compiled by LSEG.

WEC Energy's total operating expenses rose 18.5% to $2.21 billion, while interest expenses rose 16.1%.

The company, which provides electricity and gas to nearly 4.7 million customers in Wisconsin, Illinois, Michigan and Minnesota, reaffirmed its annual profit forecast.

Milwaukee-based WEC Energy's net income rose to $724.2 million, or $2.27 per share, in the first quarter, from $622.3 million, or $1.97 per share, a year earlier.