Aug 7 (Reuters) - U.S. utility Constellation Energy ( CEG )

on Thursday beat Wall Street estimates for

second-quarter adjusted profit, helped by rising power demand

and lower interest expenses.

According to the U.S. Energy Information Administration

(EIA), power consumption will hit record highs in 2025 and 2026,

driven by a demand surge from AI-powered data centers.

The S&P index tracking utilities rose 3.5% in the

quarter ended June 30.

"We are adding megawatts to the grid through extending the

lives of our existing fleet... and launching a new, AI-powered

demand response tool that helps businesses reduce energy use

during periods of peak demand," said CEO Joe Dominguez.

The company said nearly 1.1 gigawatt of additional

generation has been approved by grid operator PJM

Interconnection, which coordinates the movement of wholesale

electricity in parts of the Eastern United States.

Constellation's total operating expenses rose 17.7% to $5.15

billion in the April-June quarter, compared with $4.38 billion a

year earlier.

The company's nuclear fleet produced 45,170 gigawatt-hours

(GWhs), down from 45,314 GWhs a year ago, due to higher

non-refueling outage days compared to last year.

Constellation Energy ( CEG ) said it will provide continued

bipartisan legislative support for nuclear energy.

U.S. President Donald Trump in May signed executive orders

directing the nation's independent nuclear regulatory commission

to cut down on regulations and fast-track new licenses for

reactors and power plants.

Constellation Energy ( CEG ) reported total quarterly operating

revenue of $6.10 billion, up from $5.48 billion a year earlier.

Analysts, on average, had expected $4.83 billion, according to

data compiled by LSEG.

Its interest expenses fell to $118 million from $142

million.

The Baltimore, Maryland-based utility posted an adjusted

profit of $1.91 per share for the three months ended June 30,

compared with analysts' average estimate of $1.85.

(Reporting by Pooja Menon in Bengaluru; Editing by Shailesh

Kuber and Shinjini Ganguli)