Feb 26 (Reuters) - Public Service Enterprise Group PEG.N on Thursday forecast annual profit below analyst expectations, but still raised its five-year capital spending plan as it ramps up investments in grid modernization amid surging power demand.
U.S. utilities are beefing up spending plans as the country's power demand is on an upswing after decades of stagnation, with growth driven by the proliferation of the technology industry's energy-intensive data centers.
U.S. power demand is expected to hit record highs in 2026, according to the Energy Information Administration.
PSEG now expects to spend $24 billion to $28 billion from 2026 through 2030, including $22.5 billion to $25.5 billion of regulated investments.
The utility's previous five-year plan included capital spending of $22.5 billion to $26 billion through 2029.
PSEG 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.
At the power segment, quarterly loss narrowed to $37 million, from $92 million a year earlier, as higher capacity revenues and gas operations helped offset nuclear-related operation and maintenance costs.
The utility expects operating earnings in the range of $4.28 to $4.40 per share in 2026, the mid-point of which is below analysts' expectations of $4.39 per share, according to LSEG-compiled data.
On an adjusted basis, the Newark, New Jersey-based company posted an adjusted profit of 72 cents per share, beating estimates of 71 cents per share.
(Reporting by Pranav Mathur in Bengaluru; Editing by Shailesh Kuber)
((Pranav.Mathur@thomsonreuters.com;))
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