Aug 7(Reuters) - Utility Consolidated Edison ED.N beat Wall Street estimates for second-quarter adjusted profit on Thursday, driven by higher power rates and strong performance in its electric and gas segments.

Regulated utilities typically seek rate increases through rate case proceedings, basing their appeals on investments or expenses incurred in delivering services.

CFO Kirk Andrews said that during the second quarter, the company secured approval to invest $440 million in five key projects aimed at advancing building and transportation electrification.

Power consumption is expected to reach record highs in 2025 and 2026, driven by AI and cryptocurrency data center demand and a shift by homes and businesses to electricity over fossil fuels, according to the U.S. Energy Information Administration.

The S&P index tracking utilities .SPLRCU rose 3.5% in the quarter ended June 30.

Consolidated Edison's quarterly total operating revenue rose nearly 12% to $3.6 billion. Analysts, on average, expected revenue of $3.46 billion, according to data compiled by LSEG.

However, total operating expenses climbed 11.7% to $3.24 billion from the year-ago quarter, while net interest expenses rose 4.2% to $300 million in the second quarter.

Operating revenue from its electric segment grew to $2.8 billion for the April-June period, up from $2.6 billion a year earlier, while revenue from the gas segment surged 22.2% to $711 million year-on-year.

The utility reaffirmed its full-year adjusted earnings forecast of $5.50 to $5.70 per share.

Consolidated Edison operates through three segments – Consolidated Edison Company of New York, Orange & Rockland Utilities and Con Edison Transmission.

The New York-based utility reported an adjusted profit of 67 cents per share for the three months ended June 30, compared with analysts' average estimate of 64 cents per share.

(Reporting by Pooja Menon in Bengaluru; Editing by Mohammed Safi Shamsi)

((Pooja.Menon@thomsonreuters.com;))