Duke Energy Corp (DUK)

holyemo (< 20) Submitted: 6/26/07 6:47 PM : Start Price: $16.87 DUK Score: 29.97

Duke Energy is poised to profit. As frustrating as it is to many, the company is likely to make considerable progress on its nuclear plant facility, especially as carbon limits come into being in a few years or so. The legislature in the company's home state of NC is considering a bill as of June 26 that would require renewable sources of energy and it appears likely that it will pass - the company has already had over 70 responses for several MW of renewables to its RFP and submitted an efficiency plan to state regulators. This could cause a fundamental change in how the company earns its profits. Parts of these regulatory changes may result in more profit for less investment, depending on what bill the legislature passes (if any of course) and the ultimate regulator ruling regarding the efficiency proposal. This is all uncertain somewhat as of today, but even with certainty in the company's new requirements uncertainty will remain for outsiders as to exactly how this new business model works and what is means for profits and return on investment.
Bigger picture-wise, NC may be the doorway through which the South's electric industry is changed. Changes tend towards more open market environments, partially stipulated energy sources, and potentially an opportunity for utilities in general to 'own' energy even more, to the point of even owning the energy that we avoided having to add. These developments are significant as the South has been a holdout to modified electricity regulatory structures.

Report this Post Replies: 0 | Reply | Permalink