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Consolidated Edison's earnings beat expectations in the quarter due to strength in the electric and gas segments

Utility Consolidated Edison beat Wall Street expectations for adjusted second-quarter profit on Thursday due to higher power rates, and strong performances in its electric and Gas segments.

Rate cases are typically used by utilities to increase their rates. They base this on the investments or expenses they incur in providing services.

Kirk Andrews, CFO of the company, said that the company received approval for $440 million to be invested in five projects designed to advance building and transportation electrification.

According to the U.S. Energy Information Administration, power consumption will reach new records in 2025 and 2026. This is due to AI and cryptocurrency demand, as well as a move by businesses and homes to electrify their buildings and switch from fossil fuels to electricity.

The S&P Index tracking utilities increased 3.5% during the quarter ending June 30.

Consolidated Edison’s total operating revenue for the quarter rose by nearly 12%, to $3.6 billion. According to data compiled and analyzed by LSEG, analysts expected an average revenue of $3.46 Billion.

In the second quarter, net interest costs rose by 4.2%, to $300 million, while total operating expenses increased 11.7%, to $3.24billion, from the previous quarter.

The operating revenue of its electric segment increased to $2.8 billion from $2.6 billion in the previous year. Revenues from the segment gas grew by 22.2%, to $711 millions, year-on year.

The utility confirmed its adjusted full-year earnings forecast between $5.50 and $5.70 per share.

Consolidated Edison is divided into three segments: Consolidated Edison Company of New York (CENY), Orange & Rockland Utilities, and Con Edison Transmission.

New York's utility reported a profit adjusted of 67 cents for the three-month period ended June 30 compared to analysts' average estimates of 64 cents. (Reporting and editing by Mohammed Safi Shamsi in Bengaluru)

(source: Reuters)