(Reuters) -U.S. utility and gas supplier Exelon Corp (NASDAQ:EXC) raised its capital spending plan to $34.5 billion through 2027, a 10% jump from its previous outlook as it invests in additional transmission to address grid concerns, company executives said on Wednesday.
The Illinois-based company's increased transmission spending will include investments to shore up grid reliability concerns over data center demand growth, Exelon Chief Financial Officer Jeanne Jones said on a company earnings call.
"These are needs that need to be addressed on our system," Jones said.
Electricity demand is expected to boom from the proliferation of power-sapping artificial intelligence technology data centers, with most U.S. electric utilities reporting deals to bring the new load on in the next year or two.
Exelon, which provides gas and electricity to over 10 million customers in New Jersey, Illinois, Pennsylvania, Maryland, Delaware and Washington, DC, also reported increased earnings tied to higher electricity rates.
Adjusted operating earnings from its Baltimore Gas and Electric Company (BGE), which provides gas and electricity to customers in Maryland, jumped about 75% in the quarter ended Dec. 31 to $199 million compared with the previous year.
The company reported revenue of $5.37 billion for the quarter, a 15% rise from the previous year, beating analysts' average estimates of $4.17 billion, according to LSEG data.
The company reported an adjusted profit of 60 cents per share for the quarter, compared with analysts' average estimates of 58 cents.
Exelon expects 2024 adjusted earnings between $2.40 per share and $2.50 per share, above analysts' average expectation of $2.41 per share at mid-point.