Duke Energy is one of the largest electric power holding companies in the United States. It is headquartered in Charlotte, N.C. Duke, a Fortune 500 company on the New York Stock Exchange has traded in the range of $13.31 – 17.94 per share over the past 52 weeks.
Duke Energy’s utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 11 million people. Their commercial power and international business divisions own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable (Green) energy assets in the United States. Duke Energy Generation Services (DEGS) is a leader in developing innovative renewable energy solutions, including wind, solar and bio power projects. DEGS’ renewable energy initiatives are separate from the activities of Duke Energy Carolinas, which is part of Duke Energy’s regulated business. DEGS builds, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. DEGS is also working to build commercial transmission capacity to help the U.S. meet its energy needs in the future. Recently North Carolina Municipal Power Agency Number 1 (NCMPA1) and Duke Energy announced a partnership; partnering on a Commercial Solar Project in Shelby, N.C. Duke Energy Carolinas is installing solar panels on a small segment of business and residential customers properties as part of a $50 million program approved by the North Carolina Utilities Commission in May 2009.
DEGS acquired the project from SunPower Corp. (NSDQ: SPWRA, SPWRB), a manufacturer of high-efficiency solar cells, solar panels and solar systems, which designed and is installing the photovoltaic systems at the Shelby, NC site. The project will consist of 4,500 ground-mounted crystalline silicon panels, and will use SunPower Tracker® technology. The Tracker uses a global positioning satellite system (GPSS) to follow the sun’s movement during the day, increasing sun power capture by up to 25 percent over conventional fixed-tilt systems, and significantly reducing land use requirements as well.
As a result of the project North Carolina Municipal Power Agency Number 1 (NCMPA1) and its 19 member organizations will soon begin providing homes and businesses in Shelby, N.C., with clean, renewable solar energy produced by a photovoltaic project recently acquired by a Duke Energy commercial business unit. NCMPA1, which serves the city of Shelby, will buy all of the output from the one-megawatt (MW) Shelby Solar Project under the terms of a 20-year power purchase agreement with Duke Energy Generation Services (DEGS), one of the Duke Energy Commercial Businesses units. NCMPA1 will also receive all associated renewable energy credits (RECs) from the project. These RECs help the power agency meet the N.C. Renewable Energy and Energy Efficiency Portfolio Standard requirement to obtain 0.2 percent of its energy through solar resources by 2018. Certainly a very small amount of Green energy, but it’s a start for a nation that is only now starting to realize the significance of Green energy in the mainstream. The city of Shelby is providing the land for the project, which will be located near the Shelby-Cleveland County Regional Airport. The Shelby City Council has approved leasing the 10-acre site for the project. The Shelby Solar Project will be DEGS’ first renewable energy facility in North Carolina.
“Given the solar farm’s close proximity to our headquarters in Charlotte, N.C., adding the Shelby Solar Project to Duke Energy’s growing commercial renewable power portfolio is an especially meaningful milestone for our company,” said DEGS President Wouter van Kempen. The Shelby Solar Project is expected to be completed and operating by late May of this year. The facility’s one MW direct current output will generate enough electricity to power approximately 140 homes on an annual basis.
Duke Energy just last week also announced first quarter 2010 adjusted diluted EPS of 36 cents, compared to 28 cents for first quarter 2009. Reported diluted EPS for the first quarter 2010 was 34 cents, compared to 27 cents for the same period last year. The quarter’s results were impacted by favorable weather, as temperatures were below normal in the Midwest, and February in the Carolinas was one of the coldest on record. The company also saw an increase in weather-normalized retail sales volumes, in particular in the industrial sector, as well as increased pricing. “I’m very pleased with our first quarter performance,” said James E. Rogers, chairman, president and CEO. “We are seeing signs of economic stabilization, but we are mindful of the high levels of unemployment that still exist in our service territories. “Although our first quarter was strong, we will continue to carefully manage expenses, focus on operational excellence, and work to achieve favorable regulatory and legislative policies,” he added. Duke Energy declared a quarterly cash dividend on its common stock of $0.24 per share. The dividend is payable on June 16, 2010, to shareholders of record at the close of business May 21, 2010. This is the 84th consecutive year that Duke Energy has paid a quarterly cash dividend on its common stock.
Disclosure: Currently no position in Duke Energy (NYSE:DUK)
