Public Service Enterprise beats profit estimates on higher rates, rising power demand

Nov 3 (Reuters) - Public Service Enterprise Group PEG.N on Monday reported third-quarter earnings that beat Wall Street estimates, helped by higher electric and gas rates and rising power demand across New Jersey.

U.S. utilities are benefiting from resilient energy demand and steady rate growth as they pour billions into upgrading aging grids and expanding clean energy infrastructure.

Many companies have sought rate hikes to fund new transmission lines and reliability improvements as extreme weather and surging demand from data centers strain the power system.

Earnings at Public Service Electric and Gas (PSE&G), a unit of Public Service Enterprise, rose to $515 million from $379 million a year earlier, driven by new base rates and higher transmission margins.

PSE&G, which serves 2.4 million electric and 1.9 million gas customers, said the gains were partly offset by higher maintenance and depreciation costs.

Profit from PSEG Power and other divisions declined to $107 million from $141 million, as lower nuclear generation and higher maintenance expenses at the Hope Creek plant weighed on results, though stronger wholesale power prices offered some support.

Its nuclear fleet supplied 7.9 terawatt hours of carbon-free energy during the quarter.

CEO Ralph LaRossa said PSEG remains focused on cost discipline and system reliability amid a "growing supply-demand imbalance" in the region that pushed summer electric bills up nearly 20%.

The company narrowed its full-year adjusted earnings outlook to $4.00-$4.06 per share, from $3.94-$4.06 previously.

The Newark, New Jersey-based company posted an adjusted profit of $1.13 per share for the three months ended September 30, compared with analysts' average estimate of $1.02 per share, according to data compiled by LSEG.