May 2 (Reuters) - Utility firm Exelon ( EXC ) missed

Wall Street estimates for first-quarter profit on Thursday, hurt

by higher operating and maintenance costs and higher interest

expenses.

The company reported an adjusted profit of 68 cents per

share for the quarter ended March 31, slightly below analysts'

average estimates of 70 cents per share, according to LSEG data.

WHY ITS IMPORTANT

Higher utility earnings from base rate increases at

Baltimore Gas and Electric Co (BGE) were offset by higher

operating expenses overall, and storm impacts at PECO Energy

Company (PECO) in Pennsylvania.

Additionally, overall interest expenses came in at $468

million, a rise of 13.6% from the year-ago period.

CONTEXT

A winter storm in January gripped much of the United States,

impacting utility operations all over.

Utility companies use General Rate Case (GRC) proceedings

with the respective commissions to claim a revenue shortfall and

ask for an increase in rates on the basis of their total cost of

providing services.

Additionally, the U.S. Federal Reserve's interest-rate hikes

to tame inflation have made borrowing more expensive for

businesses. Higher rates led to the utilities sector

falling 10% last year to its lowest since 2008.

BY THE NUMBERS

While all the utility's subsidiaries reported an increase in

customers, PECO, BGE, and its Delaware and Maryland subsidiary,

DPL, were affected by lower revenues from natgas.

Average U.S. natural gas prices were 30% lower in the

reported quarter as a milder-than-expected winter hurt demand

for heating fuel.

Exelon ( EXC ), however, reported an overall revenue of $6.04

billion for the quarter ended March 31, compared with analysts'

average estimate of $5.57 billion, according to LSEG data.

The utility reaffirmed its forecast range for 2024 adjusted

operating earnings of $2.40-$2.50 per share.