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Duke Energy's Hydroelectric Project Gets 30-Year License

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Duke Energy Corporation (DUK - Free Report) has received a new 30-year operating license from the Federal Energy Regulatory Commission (FERC) for its Keowee-Toxaway Hydroelectric Project in northwestern South Carolina.

Details of the Project

The hydroelectric project, comprising two reservoirs with two powerhouses, extends across 25 river miles and covers roughly 480 miles of shoreline. It starts from Lake Jocassee in North Carolina and South Carolina, flows into Lake Keowee and then runs downstream to the Army Corps of Engineers' Lake Hartwell Project in South Carolina.

The plant generates 868 megawatts (“MW”) of hydropower and cooling water for Duke Energy's Oconee Nuclear Station on Lake Keowee. TheOconee power station can generate about 2,500 MW of energy.

Keowee-Toxaway will enable Duke Energy to continue operating the Jocassee Pumped Storage Hydro Station, the Keowee Hydro Station and connected lakes.

According to Steve Jester, Duke Energy's vice president of water strategy, hydro licensing and lake services, theproject generates renewable hydroelectric power, fulfils regional potable water requirements and offers high-quality recreational prospectsin the region. He believes that the licensealso ensures the availability of these resources for future generations.

The License

The new license will be effective from Sep 1. It will help the company to executeoperational, environmental and recreational resource development, and benefit the community and the environment in many ways. One such benefit will be improvements in existing public recreational areas on Lake Jocassee and Lake Keowee.

Additionally, Duke Energy will execute a Habitat Enhancement Program in the watershed and expects to conserve around 2,900 acres of property adjacentto the lakes. The program will aim to conserve ecologically and culturally important resources.

It is the first relicensing for the project in Upstate South Carolina. In 1966, the hydroelectric project received the first 50-year license from FERC.

The company has been working with community, environmental and local government groups on the relicensing proposal since 2011. It has filed its formal application in Aug 2014.

DUKE ENERGY CP Price

Renewable Endeavors

Duke Energy is a premier utility service provider that offers efficient power and energy services across various states in the U.S. and several international locations. The company has plans to invest $1.5 billion in renewables in its pipeline joint ventures in 2016. Additionally, it intends to invest $3–$5 billion in commercial renewables in its gas pipeline through 2020.

On Apr 2016, the company raised its 2020 renewable energy goal by 33% on the back of continued growth in renewable energy. The company expects to own or acquire 8,000 megawatts (MW) of wind, solar and biomass capacity by 2020, marking a substantial increase over the 2013 target of 6,000 MW. The company is committed to the construction and expansion of the scale of its solar and wind projects across the U.S.

Duke Energy currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked companies in the utility sector include Spark Energy, Inc. , Korean Electric Power Corp. (KEP - Free Report) and DTE Energy Company (DTE - Free Report) . While Spark Energy and Korean Electric Power sport a Zacks Rank #1 (Strong Buy), DTE Energy carries a Zacks Rank #2 (Buy).

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