ST. PETERSBURG, Fla. – Duke Energy (NYSE:) Florida, a division of Duke Energy (NYSE: DUK) – an $84 billion market cap utility giant with an EBITDA of $14.1 billion in the last twelve months – has submitted a plan to the Florida Public Service Commission (FPSC) to recover $1.1 billion in costs incurred during the 2024 hurricane season. According to InvestingPro analysis, Duke Energy operates with a significant debt burden, though it maintains strong operational stability with a beta of just 0.46. The utility company mobilized a workforce of over 27,000 to restore power to approximately 2 million customers affected by hurricanes Debby, Helene, and Milton. As a prominent player in the Electric Utilities industry, Duke Energy’s financial resilience is evident in its consistent dividend payments, which it has maintained for 54 consecutive years. For deeper insights into Duke Energy’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro‘s detailed research reports, available for over 1,400 US stocks.
The proposal details expenses related to the deployment of crews and resources from across the country and Canada, the establishment of staging sites, and the repair and replacement of critical infrastructure damaged by the storms. Duke Energy Florida’s state president, Melissa Seixas, emphasized that the company prioritized quick and safe power restoration and aimed to minimize the financial impact on customers.
The 2024 hurricane season saw Duke Energy Florida respond to two Category 3 storms and one Category 4 storm within a three-month period. The company’s self-healing technology played a significant role in the restoration efforts, automatically restoring hundreds of thousands of outages and saving millions of minutes in outage time.
Customers will experience a temporary increase in their electricity bills starting March 2025, with an approximate $21 rise per 1,000 kilowatt-hours due to the storm recovery costs. Despite an actual increase of $31, seasonal bill reductions will offset $10 of this amount through November 2025. The storm-related charges are expected to remain on customer bills until the end of February 2026.
Duke Energy Florida offers financial assistance and flexible billing options for customers needing help with their bills. These resources are accessible via the company’s customer care service and its website.
The information for this article is based on a press release statement from Duke Energy Florida. The company, part of Duke Energy (NYSE: DUK), is a significant electricity provider in Florida, with a service area covering 13,000 square miles. Duke Energy is also working towards a clean energy transition, with goals to achieve net-zero emissions in its electricity generation by 2050.
In other recent news, Duke Energy has been garnering attention due to its anticipated new capital plan announcement in February, which is expected to increase the company’s capital expenditure by more than $5 billion. Citi has maintained a Buy rating on Duke Energy, highlighting the potential for accelerated earnings growth. This growth is contingent on the company executing an increase in at-the-market offerings, joint support notices, and minority interest sales in Kentucky and Ohio, among other strategies.
Meanwhile, BMO Capital has adjusted its price target for Duke Energy to $124, while maintaining an Outperform rating on the stock. This adjustment follows Duke Energy’s third-quarter earnings report, which showed a decrease in earnings per share to $1.62, primarily due to costs related to recent storms. Despite these challenges, the company reaffirmed its full-year 2024 earnings guidance, projecting it to be within the $5.85 to $6.10 range.
On the earnings call, Duke Energy’s CEO discussed the company’s resilience in the face of a challenging hurricane season. The company successfully restored power to a significant number of affected customers and anticipates total storm costs for the year to be between $2.4 billion and $2.9 billion. Looking forward, Duke Energy is forecasting a 5% to 7% earnings per share growth rate through 2028, backed by regulatory approvals and infrastructure investments. These recent developments highlight Duke Energy’s strategic planning and resilience despite the challenges of a severe hurricane season.
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