Duke Energy Corporation (NYSE:DUK) has received approval from the Indiana Utility Regulatory Commission on a settlement agreement involving the company and the Indiana Office of Utility Consumer Counselor.
Details of the Deal
The agreement pertains to the construction of a solar project at Naval Support Activity (“NSA”) Crane, also known as the Crane naval station, located 40 miles southwest of Bloomington, IN, with a generating capacity of 17 megawatts (“MW”).
The solar facility will utilize around 76,000 solar panels built on roughly 145 acres in the southeast portion of the naval base. It will be largest solar facility on the Duke Energy Indiana system and the second-largest in the state. Power generated by the facility will be supplied to Duke Energy Indiana customers. Meanwhile, the Navy will also continue to purchase electricity from the company.
Construction of the facility is expected to begin this month and the plant will be connected to grid at the beginning of 2017.
The latest agreement marks the second partnership between Duke Energy and the Department of the Navy. Earlier, the company had entered into a deal with the Department of the Navy in 2015 for a 13-MW solar facility at Camp Lejeune in Eastern North Carolina, which is now operational.
Renewable Endeavors
With regulatory authorities increasingly encouraging renewable energy generation, dependence on fossil fuels has been declining. In fact, as per the U.S. Energy Information Administration (EIA), electricity generated from renewable sources is projected to increase 13% in 2016 and 3.3% in 2017.
Duke Energy is a premier utility service provider that offers efficient power and energy services across various states in the U.S. and several international locations. We appreciate the company’s efforts on expanding its scale of operations and implementing modern technologies at its facilities. Note that Duke Energy invests heavily in infrastructure and expansion projects.
The company has plans to invest $1.5 billion in renewables in its pipeline joint ventures in 2016. Additionally, it intends to invest $3–$5 billion in commercial renewables in its gas pipeline through 2020.
Duke Energy currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies in the utility sector include Spark Energy, Inc. (NASDAQ:SPKE) , Calpine Corp. (NYSE:CPN) and DTE Energy Company (NYSE:DTE) . While Spark Energy sports a Zacks Rank #1 (Strong Buy), both Calpine Corp. and DTE Energy carry a Zacks Rank #2 (Buy).
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