RALEIGH - The U.S. Department of Energy has chosen the North Carolina Innovative Transmission Rebuild project for a $57 million grant to enhance the power grid's reliability and capacity. This project, a collaborative effort between Duke Energy , the North Carolina Department of Environmental Quality, and the State Energy Office, will focus on reconstructing the 230-kV Lee-Milburnie transmission line, benefitting approximately 14,000 customers in Wake, Johnston, and Wayne counties.
The reconstruction of the transmission line, which stretches from the Greater Raleigh area to outside Goldsboro, is designed to increase resilience against extreme weather, connect more clean energy sources to the grid, and foster job creation alongside community partnerships. According to Duke Energy North Carolina state president Kendal Bowman, the funding signifies North Carolina's leadership in the energy transition and commitment to enhancing service reliability.
Senior vice president and chief power grid officer at Duke Energy, Scott Batson, emphasized the importance of reliable service and the role of the grant in delivering affordable, clean energy. The Grid Resilience and Innovation Partnerships (GRIP) program, part of the Bipartisan Infrastructure Law, is the federal government's largest direct investment into grid infrastructure, aiming to prepare the grid for extreme weather and support the transition to clean energy.
The project is expected to generate around 550 new jobs, with workforce development programs at Nash Community College and North Carolina A&T State University playing a key role in training skilled workers. The initiative is also supported by partnerships with historically black colleges and universities (HBCUs) and local community colleges.
Duke Energy (NYSE:DUK) is a Fortune 150 company operating in multiple states and is actively investing in grid upgrades and a clean energy transition with goals of net-zero methane and carbon emissions by 2030 and 2050, respectively.
The information in this article is based on a press release statement from Duke Energy.
In other recent news, Duke Energy Corporation (NYSE:DUK) has seen significant developments. The company successfully issued $1 billion in junior subordinated debentures, part of its broader capital management strategy. This move was followed by the approval of Duke Energy Florida's comprehensive rate plan, projected to save residential customers about 5% on their electric bills in January 2025.
In the earnings arena, Duke Energy reported a rise in adjusted earnings per share (EPS) and reaffirmed its financial outlook. This increase was attributed to the expansion of its electric utilities and favorable weather conditions. BMO Capital Markets responded by raising its price target for Duke Energy while maintaining an "Outperform" rating.
Furthermore, Duke Energy reported significant interest from data centers in its economic development pipeline through 2028, with expectations for this sector's demand to grow beyond 2030. This is in line with analysts' predictions from Barclays (LON:BARC) and S&P Global Commodity Insights, suggesting that utilities could experience meaningful sales growth. These recent developments highlight Duke Energy's strategic financial moves and potential for growth.
InvestingPro Insights
Duke Energy (NYSE:DUK), a Fortune 150 company, is not only making strides in enhancing power grid reliability but also demonstrates a robust financial profile. According to real-time data from InvestingPro, Duke Energy has a market capitalization of $87.2 billion, showcasing its significant presence in the Electric Utilities industry. This is complemented by a Price/Earnings (P/E) ratio of 20.79, which adjusts to 18.71 when looking at the last twelve months as of Q2 2024, indicating how investors are valuing the company's earnings.
InvestingPro Tips highlight that Duke Energy has raised its dividend for 16 consecutive years, with a current dividend yield of 3.7%. This consistent dividend growth, including a 3.98% increase in the last twelve months as of Q2 2024, signals the company's commitment to returning value to shareholders. Furthermore, Duke Energy has maintained dividend payments for 54 consecutive years, reinforcing its reputation as a reliable income stock.
With a gross profit margin of nearly 50% in the last twelve months as of Q2 2024, Duke Energy's ability to manage its costs and generate profit is evident. Additionally, the company's stock has experienced a significant price uptick of 26.81% over the last six months, nearing its 52-week high with a price 96.71% of that peak. This price appreciation reflects positive market sentiment towards Duke Energy's operational performance and future prospects.
For more detailed analysis and additional InvestingPro Tips, investors can explore the full suite of insights available at https://www.investing.com/pro/DUK, which includes a total of 11 tips to guide investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.