Public Service Enterprise posts higher quarterly profit on colder weather

April 30 (Reuters) - Electric and gas utility Public Service Enterprise Group PEG.N on Wednesday posted a rise in first-quarter profit, helped by colder winter weather that boosted heating demand.

Cold spells in the New Jersey-based firm's service regions, where temperatures dipped below 20°F for several days in January and February, prompted gas and electricity usage to hit the highest winter peak load in six years, CEO Ralph LaRossa said.

PSE&G, Public Service Enterprise's electricity and natural gas distribution segment, posted a 14.2% rise in operating revenue during the first quarter, partially helped by new transmission rates.

"PSE&G experienced another quarterly increase in large load inquiries for new service connections. This pipeline totaled over 6,400 MW of capacity requested as of March 31," LaRossa said.

The company's overall operating revenue rose to $3.2 billion in the three months ended March 31 from $2.8 billion a year ago.

The U.S. Energy Information Administration in February forecast power demand to hit record highs in 2025 and 2026 due to a surge in electricity usage in AI data centers and increased domestic manufacturing.

The utility's first-quarter net income rose to $589 million, or $1.18 per share, from $532 million, or $1.06 per share, a year ago.

However, interest expenses also rose 17.6% to $241 million during the quarter, while total operating expenses grew nearly 17% to $2.43 billion.

Public Service Enterprise provides electric and gas services to about 4.3 million customers across New Jersey. It also operates nuclear-generating assets through its PSEG Power segment.

The company posted quarterly profit of $1.43 per share on an adjusted basis, missing analysts' average estimate of $1.44 per share, according to data compiled by LSEG.