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Duke Energy Requests Rate Hike for South Carolina Customers
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Duke Energy Corp. (DUK - Free Report) recently announced that its unit Duke Energy Progress has filed an application with Public Service Commission of South Carolina (“PSCSC”), requesting an increase in electricity rates for its South Carolina customers. Notably, this latest move is in sync with the company’s aim to invest in and generate cleaner electricity by carefully managing coal ash and improving energy reliability.
The strategy is likely to increase value for customers and shareholders for a smarter energy future.
Impact on Customers
Currently, Duke Energy Progress is serving nearly 169,000 customers in the northeastern part of South Carolina. On approval of the proposed rate hike, a typical residential customer consuming electricity of 1,000 kilowatt-hours (KWh) per month will witness $17.91 or 14.3% increase in monthly electricity bill from $124.81 to $142.72. On average, electricity bills for residential customers will increase12.5%, while that for commercial and industrial customers will rise 8.8%.
Overall, all customer groups of this subsidiary will witness a 10.3% hike in monthly electricity bill on an average.
Rate Hike to Fund Capex Plans
Rate hikes increase the monthly budgets for customers. However, utility companies need funds for supporting capital investment to reinforce and replace its existing infrastructure or to swap the aging one with new set-ups. The capex is necessary to keep essential supplies like electricity services running 24x7 and improve operational efficiency through upgrades of facilities and equipment.
Duke Energy invests heavily in infrastructure and expansion projects. It also boasts a robust five-year capital plan. The company has decided to invest about $48.2 billion in its overall growth projects over the 2018-2022 time frame, out of which $37.6 billion will be invested on electric utilities and infrastructure.
On approval, the latest rate hike is expected to contribute $59 million to the company’s top line and support this utility provider in duly achieving its investment goals, as mentioned above.
Price Movement
In the past six months, Duke Energy’s stock has rallied 10%, outperforming its industry’s 5.8% growth. The company’s robust investment plan backed by solid cash position must have boosted investors’ confidence in this stock.
Ameren delivered an average positive earnings surprise of 15.40% in the last four quarters. The company has a solid long-term earnings growth estimate of 6.7%.
American Electric Power delivered an average positive earnings surprise of 4.58% in the trailing four quarters. The company has a solid long-term earnings growth estimate of 5.6%.
CMS Energy delivered an average positive earnings surprise of 6.37% in the last four quarters. The company has a solid long-term earnings growth estimate of 6.2%.
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Duke Energy Requests Rate Hike for South Carolina Customers
Duke Energy Corp. (DUK - Free Report) recently announced that its unit Duke Energy Progress has filed an application with Public Service Commission of South Carolina (“PSCSC”), requesting an increase in electricity rates for its South Carolina customers. Notably, this latest move is in sync with the company’s aim to invest in and generate cleaner electricity by carefully managing coal ash and improving energy reliability.
The strategy is likely to increase value for customers and shareholders for a smarter energy future.
Impact on Customers
Currently, Duke Energy Progress is serving nearly 169,000 customers in the northeastern part of South Carolina. On approval of the proposed rate hike, a typical residential customer consuming electricity of 1,000 kilowatt-hours (KWh) per month will witness $17.91 or 14.3% increase in monthly electricity bill from $124.81 to $142.72. On average, electricity bills for residential customers will increase12.5%, while that for commercial and industrial customers will rise 8.8%.
Overall, all customer groups of this subsidiary will witness a 10.3% hike in monthly electricity bill on an average.
Rate Hike to Fund Capex Plans
Rate hikes increase the monthly budgets for customers. However, utility companies need funds for supporting capital investment to reinforce and replace its existing infrastructure or to swap the aging one with new set-ups. The capex is necessary to keep essential supplies like electricity services running 24x7 and improve operational efficiency through upgrades of facilities and equipment.
Duke Energy invests heavily in infrastructure and expansion projects. It also boasts a robust five-year capital plan. The company has decided to invest about $48.2 billion in its overall growth projects over the 2018-2022 time frame, out of which $37.6 billion will be invested on electric utilities and infrastructure.
On approval, the latest rate hike is expected to contribute $59 million to the company’s top line and support this utility provider in duly achieving its investment goals, as mentioned above.
Price Movement
In the past six months, Duke Energy’s stock has rallied 10%, outperforming its industry’s 5.8% growth. The company’s robust investment plan backed by solid cash position must have boosted investors’ confidence in this stock.
Zacks Rank & Key Picks
Duke Energy currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the same industry are Ameren Corp. (AEE - Free Report) , American Electric Power Company (AEP - Free Report) and CMS Energy Corp. (CMS - 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 15.40% in the last four quarters. The company has a solid long-term earnings growth estimate of 6.7%.
American Electric Power delivered an average positive earnings surprise of 4.58% in the trailing four quarters. The company has a solid long-term earnings growth estimate of 5.6%.
CMS Energy delivered an average positive earnings surprise of 6.37% in the last four quarters. The company has a solid long-term earnings growth estimate of 6.2%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>