PG&E raises 2025 core earnings forecast on higher electricity rates

Feb 13 (Reuters) - PG&E Corp (PCG) on Thursday raised its adjusted core earnings forecast for 2025, as the power company benefits from lower operating expenses and higher electricity rates.

Last month, the California Public Utilities Commission approved another request from the company to raise electricity prices after a series of similar hike approvals last year.

The utility said it recorded a rate base growth of 10.5% in 2024.

U.S. electric utilities are pushing for more hikes, as rising demand from data centers, manufacturers and other industries such as transportation has put tremendous pressure on grids.

The company said it added nearly 14,000 new customers in 2024 to its electric grid system.

"In 2024, we connected more new customers to our grid than we have in decades," PG&E Corporation (PCG) CEO Patti Poppe said.

As of February, the company saw a two gigawatt (GW) increase in its data center pipeline from July last year.

PG&E (PCG) 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.

The Oakland, California-based company raised its full-year forecast for adjusted core earnings to between $1.48 and $1.52 per share, up from $1.47 to $1.51 previously. Analysts expect earnings of $1.49 per share, according to data compiled by LSEG.

In 2024, the company's operating expenses fell 8.3% to $19.96 billion compared to last year.

On an adjusted basis, PG&E (PCG) reported a fourth-quarter core profit of 31 cents per share, in line with analysts' estimates.

Shares of the company rose 1% in premarket trading. (Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)