Duke Energy Corporation (DUK) got regulatory approval from the Public Service Commission of South Carolina for a general rate case increase of $74.1 million (or 5.2%), which will be effective from Feb. 1, 2010. The hike will increase Duke Energy’s South Carolina residential electricity average monthly bill to $90 – $93 from $80 – $87 for customers. This is the first rate case hike since 1991 in South Carolina for Duke Energy.

Duke Energy Carolinas owns nuclear, coal-fired, natural gas and hydroelectric generation. The diverse fuel mix provides approximately 19,000 MW of electricity capacity to approximately 2.4 million customers in a 22,000-square-mile service area in North Carolina and South Carolina.

Duke Energy is the third largest electric power holding company in the United States, based on kilowatt-hour sales. Its regulated utility operations serve customers located in five states – North Carolina, South Carolina, Indiana, Ohio and Kentucky.

Duke Energy’s steady performance across its solid base of stable utility operations, higher rates, strong balance sheet, an above industry average dividend yield and a relatively cheap earnings-based valuation support our bullish outlook for the company. However, the present unfavorable macro backdrop, lower demand for electricity, foreign currency exchange volatility, and pending regulatory cases continue to restrain valuation.

We currently have a Neutral recommendation on Duke Energy, which reflects our view that the shares will trade at par with its peer companies like Public Service Enterprise Group Inc. (PEG), FirstEnergy Corporation (FE) and Consolidated Edison Inc. (ED).

Zacks Investment Research

1. (DUK) Duke Energy Settles with U.S. Environmental Protection AgencyDuke Energy Corporation (DUK) has reached a settlement with the U.S. Environmental Protection Agency, and...
2. (DUK) Duke Energy Corporation Wins Rate Hike SettlementDuke Energy Corporation’s (DUK) utility subsidiary Duke Energy Kentucky reached a settlement agreement with the...
3. (DUK) Duke Energy Corporation Going GreenDuke Energy Corporation (DUK) will install four solar panels in North Carolina in the first...
4. (DUK) Duke Energy Signs with the University of North Carolina for Wind Turbine DemonstrationDuke Energy Corporation (DUK) recently signed a contract with the University of North Carolina (UNC)...
5. (DUK) Duke Energy Issues BondsDuke Energy Corp. (DUK) recently raised the size of its senior notes offering to $1...
6. (DUK) Duke Energy Goes GreenDuke Energy Corp. (DUK) recently signed an agreement with Sun Edison and will buy electricity...

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