WEC Energy posts higher first-quarter profit on lower costs

May 1 (Reuters) - WEC Energy Group said on Wednesday its first-quarter profit rose 18% as the utility benefited from lower operating costs and higher electricity rates.

Wisconsin regulators approved WEC's filings for a rate increase in December, with new rates in effect for all of the company's utilities in the U.S. state.

Rate base growth contributed 35 cents to the company's quarterly profit.

Quarterly revenue fell 7% to $2.68 billion due to the warmest winter in Wisconsin history, the company said, missing estimates of $2.92 billion, according to LSEG data.

Residential consumption and natural gas deliveries in Wisconsin were impacted by a milder winter in the months of February and March, cutting demand for heating.

Residential power use fell 1.1% during the quarter while natural gas deliveries in Wisconsin declined 5.8%.

Operating expenses for the quarter came in at $1.9 billion, 15.9% lower than last year, primarily due a 29% decrease in the cost of sales.

The firm's reported net income rose to $622.3 million, or $1.97 per share, compared with $507.5 million, or $1.61 per share, last year.

WEC, which serves more than 4.7 million customers across Wisconsin, Illinois, Michigan and Minnesota, also reaffirmed its full-year profit forecast of between $4.80 and $4.90 per share. (Reporting by Kabir Dweit in Bengaluru; Editing by Devika Syamnath)