May 9 (Reuters) - U.S. utility Constellation Energy ( CEG )

beat first-quarter profit estimates on Thursday, helped

by higher nuclear power generation and benefits from tax credits

related to the Inflation Reduction Act.

"Higher output from our generation fleet, supportive energy

policies and the strong performance of our commercial business

contributed to our strong adjusted (non-GAAP) first-quarter

earnings of $1.82 per share," CFO Dan Eggers said.

Constellation, which also generates electricity via other

renewable sources - hydro, wind and solar - beat analysts'

estimates of $1.38 per share, according to LSEG data.

The IRA provides billions of dollars in tax credits to clean

energy facilities, such as nuclear plants, in a push to

decarbonize the U.S. power sector.

Nuclear production tax credits (PTCs) under the IRA provide

a benefit of 1.5 cents per kilowatt-hour of energy produced for

qualifying nuclear plants.

This benefits companies like Constellation, which is the

largest nuclear power provider in the U.S with 21 nuclear plants

in operation.

The Baltimore, Maryland-based firm's nuclear fleet produced

45,391 gigawatt-hours (GWhs) and operated at 93.3% capacity

during the quarter, an uptick from the 42,463 GWhs produced at

92.8% capacity last year in the same period.

It also saw fewer outage days during the quarter, which

helped lower refueling costs.

Power consumption in the U.S. is expected to reach record

highs this year and the next, according to the U.S. Energy

Information Administration.

Total operating expenses were $5.3 billion, 29% lower than

the prior-year quarter, primarily due to 40% lower fuel costs.

Revenue for the quarter, however, fell 18.5% to $6.16

billion, lower than analysts' estimate of $7.85 billion as per

LSEG data.

(Reporting by Kabir Dweit in Bengaluru; Editing by Saumyadeb

Chakrabarty)