Utility PG&E tightens 2026 profit forecast on strong power demand

Feb 12 (Reuters) - Utility ‌PG&E tightened ​its ​full-year profit forecast on Thursday, raising the lower end of its range as it sees strong ‌power demand driven by data centers and ⁠broader load growth.

The technology industry's AI data centers, combined with the ‌accelerating electrification of homes ‌and businesses, are expected to push U.S. power demand to record levels in 2026, according to ​the U.S. Energy Information Administration.

Last year, the utility said it plans to spend $73 billion by 2030 ⁠for transmission upgrades to meet the data center-led surge in electricity demand.

The ​company said it has advanced 2 gigawatts (GW) of data center projects into final engineering since ​its third-quarter update, with about ‌3.6 GW now in final engineering.

The utility raised the lower end of its 2026 ⁠profit forecast by 2 cents to between $1.64 and $1.66 per share, which was above Wall Street estimates of $1.63 per ⁠share, according to data compiled by LSEG.

However, the Oakland, California-based company ​reported an adjusted profit of 36 cents per share for the quarter ended December 31, missing analysts' average estimate by ‌1 cent per share.

Shares of the company were down 1% in premarket trading.

PG&E is the ‌parent company of Pacific Gas and Electric Company, ⁠an energy company that ‌serves 16 million ​Californians across a 70,000-square-mile service area in Northern and Central California.

(Reporting by Tanay Dhumal in ‌Bengaluru)

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