CHARLOTTE, N.C. - Duke Energy filed requests with the North Carolina Utilities Commission to recover approximately $809 million in fuel and purchased power costs incurred during extreme cold weather in late January and early February, according to a company press release.
The utility (NYSE:DUK) is seeking to recover about $500 million for Duke Energy Carolinas and $309 million for Duke Energy Progress. The costs stem from electricity purchases from neighboring utilities during a period when customer demand exceeded the company's generation capacity. The request comes as Duke Energy carries total debt of $91.1 billion against a market capitalization of $99.93 billion.
On Jan. 27, energy demand reached 37,308 megawatt-hours, a winter peak record for Duke Energy's Carolinas system. Temperatures dropped 10 to 20 degrees below normal during the period.
Duke Energy proposes spreading the cost recovery over 19 months instead of the typical 12-month period. If approved by regulators, Duke Energy Carolinas residential customers using 1,000 kWh monthly would see bills increase by approximately $6.90 per month starting June 1. Duke Energy Progress customers would see an increase of about $7.88 per month.
The company stated the costs represent pass-through expenses without markup. Duke Energy added approximately 150,000 customers in North Carolina over the past two years.
Duke Energy plans to add 19,600 megawatts of generation capacity over the next decade, including new power plants in Person County, N.C., and Anderson County, S.C. Despite the expansion plans, InvestingPro analysis indicates the stock is currently overvalued relative to its Fair Value. The company maintains a 3.28% dividend yield and has paid dividends for 56 consecutive years.
Duke Energy Carolinas serves about 2.3 million households and businesses in central and western North Carolina, while Duke Energy Progress serves about 1.6 million customers in central and eastern North Carolina and the Asheville region.
In other recent news, Duke Energy has completed the sale of its Tennessee Piedmont Natural Gas business to Spire Inc. for $2.48 billion. This transaction, involving nearly 3,800 miles of pipelines serving over 200,000 customers in the Nashville area, marks a significant shift in Duke Energy's portfolio. Additionally, Duke Energy has successfully completed a $1.5 billion convertible notes offering due in 2029, with the notes carrying an interest rate of 3.000% per year.
The company also received approval from the Public Service Commission of South Carolina to construct a new natural gas combined cycle power plant in Anderson County. This facility is expected to have a capacity of approximately 1,365 megawatts and is scheduled to begin construction in the summer of 2027.
In another development, BMO Capital has raised its price target for Duke Energy stock to $143, maintaining an Outperform rating. BMO anticipates limited updates during Duke Energy's first-quarter 2026 earnings release. These recent developments highlight Duke Energy's strategic financial and operational moves.