(Reuters) -U.S. utility CenterPoint Energy on Thursday posted a higher-than-expected third-quarter profit, driven by regulatory recovery and rising industrial demand, including new AI data center loads in Houston, Texas.
The industrial throughput in its Houston Electric segment has risen over 11% year-to-date.
“The Greater Houston area is experiencing strong economic momentum, supported by one of the most diverse sets of growth drivers in the sector. It is not dependent on any single industry, and the impact is already visible,” said CenterPoint CEO Jason Wells.
U.S. public power utilities are spending more to handle surging demand as Big Tech builds data centers to run artificial intelligence technologies.
CenterPoint which provides electricity and natural gas to more than 7 million customers across Indiana, Louisiana, Minnesota, Mississippi, Ohio and Texas unveiled its $65 billion, 10-year capital investment plan last month.
The Houston, Texas-based company reported adjusted earnings of 50 cents per share for the three months ended September 30, above analysts’ estimate of 44 cents per share, according to data compiled by LSEG.
CenterPoint said the results were aided by $0.07 per share from growth and regulatory recovery and $0.12 per share from reduced operations and maintenance costs.
Regulatory recovery refers to the costs the state regulator allows utilities to recoup through higher rates for customers.
These gains were partially offset by $0.04 per share of higher interest expenses.
(Reporting by Khusbu Jena in Bengaluru; Editing by Sahal Muhammed)
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