July 30 (Reuters) - WEC Energy Group ( WEC ) reported a

16% increase in second-quarter profit on Wednesday, as the

utility company benefited from higher sales in its residential

segment.

Power demand surged as extreme heat during the summer months

drove up the use of cooling appliances such as air conditioners

and refrigerators.

"A warm start to the summer, steady execution of our capital

plan and a continued focus on operating efficiency were major

factors that shaped a strong quarter," said CEO Scott Lauber.

The company, which provides electricity and gas to nearly

4.7 million customers in Wisconsin, Illinois, Michigan and

Minnesota, said quarterly residential power use rose 1.6% and

total retail deliveries increased 1% over the year earlier.

Electricity consumption by small commercial and industrial

customers was 0.6% higher, while large commercial and industrial

customers' usage increased 0.8%.

The U.S. Energy Information Administration estimates that

power consumption in the country will hit record highs in 2025

and 2026 due to data centers dedicated to artificial

intelligence and cryptocurrency, and as homes and businesses use

more electricity and less fossil fuels for heating and

transportation.

WEC's second-quarter operating revenue rose 13.4% to $2.01

billion, compared with analysts' average estimate of $1.76

billion, according to data compiled by LSEG.

Total operating expense also rose about 14% to $1.6 billion,

while interest expense was up 10% at $220.8 million.

The company's net income of $245.4 million, or 76 cents per

share, was higher than the $211.3 million, or 67 cents per

share, reported a year earlier.