CHARLOTTE, N.C. - Piedmont Natural Gas has announced an agreement with consumer and industrial groups in North Carolina concerning its rate review request, initially filed in April. The agreement, which is pending approval from the North Carolina Utilities Commission, proposes a rate increase set for November 2024, alongside measures to reduce the impact on customers, such as rate reductions for natural gas costs and the acceleration of income tax credit flowback.
The proposed changes will result in an average monthly bill increase of $7.50 for residential customers. Senior Vice President Brian Weisker emphasized the company's commitment to safe, reliable service and the necessity of the rate adjustments to meet growing energy demands and comply with federal safety regulations.
The agreement suggests a net annual revenue increase of $88 million for Piedmont, significantly less than the $149 million initially sought. This compromise was reached in collaboration with the Public Staff of the North Carolina Utilities Commission, the Carolina Utility Customers Association, and the Carolina Industrial Group for Fair Utility Rates IV, reflecting a balanced consideration of consumer interests and Piedmont's operational needs.
Piedmont Natural Gas, a subsidiary of Duke Energy (NYSE: NYSE:DUK), serves over 810,000 customers in North Carolina and has recently been recognized for top customer satisfaction in the region. In addition to the rate adjustments, the company offers programs to help customers manage their energy costs, including the Equal Payment Plan and various energy-saving tips and tools. Assistance programs such as Share the Warmth and the Low Income Energy Assistance Program are also available to support those in financial need.
The stipulated rate adjustments will affect both residential and commercial customers. The agreement allows Piedmont a return on equity of 9.80%. Customers interested in learning more about the proposed rate changes can visit the company's website. This news is based on a press release statement from Piedmont Natural Gas.
In other recent news, Duke Energy has been the focus of significant developments. The company reported a rise in adjusted earnings per share, a fact that prompted BMO Capital Markets to raise its price target while maintaining an "Outperform" rating. Duke Energy also secured a $57 million grant from the U.S. Department of Energy to rebuild a key power line in North Carolina, a move expected to enhance grid reliability and create around 550 jobs.
On the financial front, Duke Energy successfully issued $1 billion in junior subordinated debentures, as part of its broader capital management strategy. Meanwhile, Mizuho Securities maintained its neutral position on the company, citing concerns over industrial load forecasts and potential policy changes.
Duke Energy's comprehensive rate plan in Florida was approved, projected to save residential customers about 5% on their electric bills by January 2025. Additionally, the company reported significant interest from data centers in its economic development pipeline through 2028, aligning with projections from Barclays and S&P Global Commodity Insights. These recent developments highlight the various strategic moves and potential growth areas for Duke Energy.
InvestingPro Insights
As Piedmont Natural Gas, a subsidiary of Duke Energy (NYSE: DUK), navigates the complexities of rate adjustments, it's crucial to understand the parent company's financial health and market performance. With a market capitalization of $90.93 billion, Duke Energy stands as a significant player in the utility industry. Its commitment to shareholder returns is evidenced by a consistent dividend track record, having raised its dividend for 16 consecutive years and maintained dividend payments for 54 years in total, an InvestingPro Tip that highlights the company's financial stability and investor-friendly approach.
InvestingPro Data shows a price-to-earnings (P/E) ratio of 21.62, with an adjusted P/E ratio for the last twelve months as of Q2 2024 at 19.48, suggesting that the company is valued above the industry average. Duke Energy's revenue growth over the same period was 3.47%, indicating a steady increase in its financial performance. Furthermore, the company's gross profit margin stands at 49.86%, demonstrating a strong ability to control costs and generate earnings.
Investors and customers alike may find reassurance in Duke Energy's low price volatility, as noted in an InvestingPro Tip, which implies that the stock price remains relatively stable amidst market fluctuations. This stability is crucial for a company involved in essential services like energy provision, where predictability is highly valued.
For those interested in a deeper dive into Duke Energy's financial metrics and strategic outlook, InvestingPro offers a wealth of additional tips and real-time data. Currently, there are 11 more tips available on InvestingPro that can provide further insights into Duke Energy's performance and investment potential. Visit https://www.investing.com/pro/DUK for more details.
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