Featured Company News - Duke Energy Proposes Electricity Rate Hike for North Carolina
Research Desk Line-up: Pampa Energia Post Earnings Coverage
LONDON, UK / ACCESSWIRE / August 29, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Duke Energy Corp. (NYSE: DUK), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=DUK. The Company announced on August 25, 2017, that it requested North Carolina Utilities Commission ("NCUC") to hike electricity bills for North Carolina residential customers by 16.7%, and for commercial and industrial customers by 10.9%. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Discover more of our free reports coverage from other companies within the Electric Utilities industry. Pro-TD has currently selected Pampa Energia S.A. (NYSE: PAM) for due-diligence and potential coverage as the Company announced on August 11, 2017, its financial results for the six-month period and quarter which ended on June 30, 2017. Tune in to our site to register for a free membership, and be among the early birds that get our report on Pampa Energia when we publish it.
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The rate increase proposal is aimed to cover the Company's investment costs to modernize power plants and generate cleaner electricity, responsibly manage coal ash and recycling of byproducts, and improve reliability while enabling more options for customers.
Proposal to Increase Revenues by 13.6%
Duke Energy also proposed NCUC to increase the revenues by about $647 million, for an overall average rate increase across all customer groups of 13.6%. Duke Energy last requested to adjust rates in North Carolina in 2013, thus the current request represents approximately a 2.5% annual increase.
The Company wants to collect about $1.7 billion over five years to close all its pits storing the toxic ash from burning coal.
Customers Would Continue to Pay Electricity Rates Lower than in 1991
Upon the approval of the proposal by state regulators, a residential customer who utilizes 1,000 kilowatt-hours (kWh) of electricity monthly would pay about $122.68 per month, reflecting an increase of $18.72 per month. Duke Energy Carolinas has maintained rates below the national average, and with the proposed change, and post adjustment of the inflation, customers would continue to pay rates lower than in 1991.
Grid Technology Investments Likely to Facilitate Cleaner Energy Sources
David Fountain, President of Duke Energy's North Carolina, mentioned that through smart investments in cleaner energy plants and renewable resources, safely managing coal ash, and the grid that powers customers' lives and improves reliability, the Company is focused every day on providing customers increasing value and laying the foundation for a smarter energy future.
David added that with the growth of the state, future energy infrastructure up gradation is required to serve the customers. There is also a requirement for a smarter grid to facilitate cleaner energy sources and provide customers the tools they need to make more informed energy decisions. He stated that Duke Energy is committed to smart investments that balance the energy needs of its customers with competitive rates.
Company Seeks Approval to Cancel Lee Nuclear Project
Duke Energy has also requested NCUC to cancel the development of the proposed William States Lee III Nuclear Generating Plant in Cherokee County, South Carolina. Bankruptcy of the project's principal contractor, Westinghouse Electric Co., a subsidiary of Toshiba Corp., and expected additional costs and other market activities led to this decision.
The Company mentioned that risks and uncertainties to initiating construction on the Lee Nuclear project have become too great and cancellation of the project is the best option for the customers. The Company, however, stated that it will maintain the license to build a new nuclear at this site in the future if it is in the best interest of its customers.
Duke Energy wants to charge North Carolina consumers nearly $640 million over 12 years for planning, licensing, financing, and other costs related to the scrapped project. The Company is said to have spent more than $500 million on regulatory licensing, engineering, and site acquisition.
Nuclear Regulatory Commission Awarded Licenses for Nuclear Power Reactors Construction in December 2016
In December 2007, Duke Energy submitted a combined construction and operating license application to the US Nuclear Regulatory Commission for its proposed 2,234-megawatt Lee Nuclear Station in Cherokee County, South Carolina, followed by a comprehensive study to identify possible plant locations across Duke Energy's service area in the Carolinas. The Nuclear Regulatory Commission awarded the Company licenses to build two nuclear power reactors near Gaffney, on December 21, 2016, allowing it to build and operate two AP1000 reactors.
Duke Energy Progress Filed a Request for Adjusted Electricity Rates in June 2017
As per the press release, on June 22, 2017, Duke Energy Progress proposed NCUC to allow it to raise power bills by an average 15% for 1.3 million customers, totaling an extra $477 million a year, resulting in $18 more per month for the typical household bill of $105.
Last Close Stock Review
At the closing bell, on Monday, August 28, 2017, Duke Energy's stock rose slightly by 0.22%, ending the trading session at $87.42. A total volume of 1.19 million shares have exchanged hands. The Company's stock price advanced 2.35% in the last three months, 5.90% in the past six months, and 9.38% in the previous twelve months. Moreover, the stock rallied 12.63% since the start of the year. The stock is trading at a PE ratio of 22.03 and has a dividend yield of 4.07%. The stock currently has a market cap of $61.19 billion.
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