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Evergy extends demand growth forecast on data center deals
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Evergy extends demand growth forecast on data center deals
May 9, 2024 7:41 AM

May 9 (Reuters) - Evergy Inc ( EVRG ) extended its

forecast for 2-3% annual growth in electricity demand to 2028

from 2026 after closing deals to provide power for new Google,

Panasonic and Meta data centers, executives at the Missouri

electric utility said on Thursday.

Evergy ( EVRG ) has signed deals with the technology majors on

projects of a combined 750 megawatts of capacity in Kansas and

Missouri.

"Each will be the largest customer in their respective

jurisdiction by a wide margin," Evergy ( EVRG ) CEO David Campbell said

in a first-quarter earnings call.

Evergy ( EVRG ) missed Wall Street estimates for first-quarter profit

on higher expenses and mild winter weather in its service areas.

The company said mild winter weather affected retail sales,

reducing earnings in the quarter by about 7 cents per share

compared to a typical winter.

Warmer-than-usual winter weather often reduces heating

demand for electricity and natural gas, affecting utility

companies such as Evergy ( EVRG ).

The company's operating expenses rose 5.2% to $1.07 billion

in the quarter from a year earlier, while quarterly interest

expenses rose 8.2% to $133.2 million.

Higher interest rates have made borrowing more expensive for

businesses, weighing on utility companies' costs and denting

profits.

Total revenue of $1.33 billion also missed analysts' average

estimate of $1.35 billion, according to LSEG.

Evergy ( EVRG ) delivers energy to 1.7 million customers in Kansas

and Missouri through its operating subsidiaries, Evergy Kansas

Central, Evergy Metro, and Evergy Missouri West.

The Kansas City, Missouri-based company reported an

adjusted profit of 54 cents per share, missing analysts

estimates of 64 cents per share.

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