Nov 3 (Reuters) - Public Service Enterprise Group ( PEG )

on Monday reported third-quarter earnings that beat Wall

Street estimates, helped by higher electric and gas rates and

rising power demand across New Jersey.

U.S. utilities are benefiting from resilient energy demand

and steady rate growth as they pour billions into upgrading

aging grids and expanding clean energy infrastructure.

Many companies have sought rate hikes to fund new

transmission lines and reliability improvements as extreme

weather and surging demand from data centers strain the power

system.

Earnings at Public Service Electric and Gas (PSE&G), a unit

of Public Service Enterprise ( PEG ), rose to $515 million from $379

million a year earlier, driven by new base rates and higher

transmission margins.

PSE&G, which serves 2.4 million electric and 1.9 million gas

customers, said the gains were partly offset by higher

maintenance and depreciation costs.

Profit from PSEG Power and other divisions declined to $107

million from $141 million, as lower nuclear generation and

higher maintenance expenses at the Hope Creek plant weighed on

results, though stronger wholesale power prices offered some

support.

Its nuclear fleet supplied 7.9 terawatt hours of carbon-free

energy during the quarter.

CEO Ralph LaRossa said PSEG remains focused on cost

discipline and system reliability amid a "growing supply-demand

imbalance" in the region that pushed summer electric bills up

nearly 20%.

The company narrowed its full-year adjusted earnings outlook

to $4.00-$4.06 per share, from $3.94-$4.06 previously.

The Newark, New Jersey-based company posted an adjusted

profit of $1.13 per share for the three months ended September

30, compared with analysts' average estimate of $1.02 per share,

according to data compiled by LSEG.