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Duke Energy Unit Submits Proposal to Lower Customer Bill
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Duke Energy Corp.’s (DUK - Free Report) subsidiary, Duke Energy Indiana, recently submitted a proposal to the Indiana Utility Regulatory Commission to lower electricity rates for customers. The filing is related to the company's Edwardsport coal gasification power plant.
Notably, Duke Energy Indiana entered into an agreement with state regulators for the aforementioned filling and joint submission of the same.
Benefits of the Agreement
If approved, bills of Indiana customers will be reduced by 0.5% till the next base rate review.
Customers bear the recovery of invested capitals and cost of operations, which is a common phenomenon in the utility sector. Reductions in bills are rewards, which attract more customers and make the company reliable.
Reasons for the Filing
Edwardsport plant is a cleaner-coal integrated gasification combined cycle (IGCC) plant with a generation capacity of 618-megawatt (MW). This facility is one of the cleanest and most efficient coal-fired power plants in the world. Notably, the plant has set a record by generating electricity continuously for 464 days through April 2018. Per management, such efficient generation has lowered operating costs by $30 million, which has enabled the company to reward customers with reduced rates.
Looking Ahead
Utility players are investing more in the expansion of renewable generation capacity. To this end, Duke Energy is also making significant investments in cleaner power to lower carbon footprint. The company aims to invest $11 billion to generate cleaner energy through renewables and natural gas as it progresses toward a low-carbon future. By retiring coal plants and incorporating natural gas and renewables, the company has already reduced carbon emissions by nearly 31% from 2005 levels.
In terms of natural gas, the company’s five-year plan includes investment of $3 billion in highly-efficient natural gas-fired combined-cycle plants. The Edwardsport plant is a valid testament to that. Going ahead, natural gas is projected to increase to 35% of the company's electricity generation portfolio in the next 10 years and renewable energy — solar, wind and hydro — will grow to approximately 10%.
Price Performance
Shares of Duke Energy have gained 5.1% compared with the industry’s growth of 3.7% in the past six months.
Ameren delivered an average positive earnings surprise of 7.69% in the past four quarters. The company’s shares have gained 17.5% in the past six months.
Algonquin Power & Utilities delivered an average positive earnings surprise of 36.39% in the past four quarters. Shares of the company have gained 7.3% in the past six months.
DTE Energy delivered an average positive earnings surprise of 5.69% in the past four quarters. Shares of the company have gained 6.8% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Duke Energy Unit Submits Proposal to Lower Customer Bill
Duke Energy Corp.’s (DUK - Free Report) subsidiary, Duke Energy Indiana, recently submitted a proposal to the Indiana Utility Regulatory Commission to lower electricity rates for customers. The filing is related to the company's Edwardsport coal gasification power plant.
Notably, Duke Energy Indiana entered into an agreement with state regulators for the aforementioned filling and joint submission of the same.
Benefits of the Agreement
If approved, bills of Indiana customers will be reduced by 0.5% till the next base rate review.
Customers bear the recovery of invested capitals and cost of operations, which is a common phenomenon in the utility sector. Reductions in bills are rewards, which attract more customers and make the company reliable.
Reasons for the Filing
Edwardsport plant is a cleaner-coal integrated gasification combined cycle (IGCC) plant with a generation capacity of 618-megawatt (MW). This facility is one of the cleanest and most efficient coal-fired power plants in the world. Notably, the plant has set a record by generating electricity continuously for 464 days through April 2018. Per management, such efficient generation has lowered operating costs by $30 million, which has enabled the company to reward customers with reduced rates.
Looking Ahead
Utility players are investing more in the expansion of renewable generation capacity. To this end, Duke Energy is also making significant investments in cleaner power to lower carbon footprint. The company aims to invest $11 billion to generate cleaner energy through renewables and natural gas as it progresses toward a low-carbon future. By retiring coal plants and incorporating natural gas and renewables, the company has already reduced carbon emissions by nearly 31% from 2005 levels.
In terms of natural gas, the company’s five-year plan includes investment of $3 billion in highly-efficient natural gas-fired combined-cycle plants. The Edwardsport plant is a valid testament to that. Going ahead, natural gas is projected to increase to 35% of the company's electricity generation portfolio in the next 10 years and renewable energy — solar, wind and hydro — will grow to approximately 10%.
Price Performance
Shares of Duke Energy have gained 5.1% compared with the industry’s growth of 3.7% in the past six months.
Zacks Rank & Key Picks
Duke Energy currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks from the same space are Ameren Corporation (AEE - Free Report) , Algonquin Power & Utilities Corp (AQN - Free Report) and DTE Energy Company (DTE - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Ameren delivered an average positive earnings surprise of 7.69% in the past four quarters. The company’s shares have gained 17.5% in the past six months.
Algonquin Power & Utilities delivered an average positive earnings surprise of 36.39% in the past four quarters. Shares of the company have gained 7.3% in the past six months.
DTE Energy delivered an average positive earnings surprise of 5.69% in the past four quarters. Shares of the company have gained 6.8% in the past six months.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>