Duke Energy (DUK, Financial) has achieved 45% of its entire five-year fuel and combined dispatch savings commitment for the customers of Carolina in just two years. It has also exceeded its creative non-fuel O&M savings target and it lately accomplished the eighth essential transmission project before the scheduled delivery date and within budget. As a result, the company looks well-positioned for gains going forward.
Investments are key to growth
Duke is planning for the growth investments in $16 billion to $20 billion range for the next 5 years period ranging from 2014 to 2018. These investments comprise of infrastructure projects, new generation and efforts concerning regulatory compliance, thus adding to long-term earnings per share growth rate in 4% to 6% range.
Duke has made considerable progress in advancing its collection of innovative generation projects that includes gas fired generation in South Carolina and Florida and renewable generation methodology in its regulated and commercial businesses.
In mid-May Duke declared its plans for three main construction projects in Florida representing a net investment of approximately $1.9 billion and includes a 1,640 MW joint cycle plant in Citrus County. Two fresh combustion turbine plants are currently Suwannee plant and one operation project at its Hines Energy Complex.
These projects are projected to get delivered and start operating by 2018 last. Duke achieved commission approval for its planned 750 MW Lee joint cycle natural gas plant in South Carolina.
Duke is planning total investments worth $2 billion by 2018 in its controlled and commercial renewable businesses.
Strong progress
At present, Duke has nearly 100 MW of solar and 400 MW of wind projects under construction in its commercial businesses. Duke functions utilities serving above seven million customers in the Kentucky, Ohio, Indiana, Florida and Carolinas. Last year, Duke announced that its renewable-energy business was looking to set-up two major wind-power facilities in South Texas in addition to its Los Vientos wind-farm projects.
Duke expects to incentivize or invest in renewable generation of about 3% of its peak load capacity 2021ending indicating roughly 150 MW.
Duke plans to invest nearly $1.5 billion to $2 billion over 7 years owing to some key filings made this year.
Further in April, Piedmont Natural Gas and Duke Energy entered into an agreement for a significant fresh natural gas pipeline to be laid in North Carolina.
Duke is focused on redeploying the proceeds for maximizing the shareholder value and expects the transaction to prove beneficial for its adjusted earnings per share commencing in 2016. It is also progressing excellently with the assessment of its international business. The company is examining several options that include growth opportunities coupled with tax effective strategies for leveraging its $1.7 billion of offshore cash.
Conclusion
Duke has also progressed satisfactorily on its broad plans in the short and long term management of all of its coal ash basins. It is continuously focused on evolving a scientifically engineered solution for all sites that is believed to safeguard the environment and enable it to constantly offer secure, dependable and lucrative electricity for its customers.
