SEATTLE (Oil Monster): The Public Service Commission of South Carolina approved Duke Energy’s (NYSE:DUK) plans to construct a natural gas combined cycle power plant in Anderson County, according to a company press release statement. The $100.91 billion utility company currently trades at a P/E ratio of 20.55 and offers investors a dividend yield of 3.32%, though InvestingPro analysis suggests the stock may be overvalued relative to its Fair Value.
The facility will have approximately 1,365 megawatts of nominal capacity, with Central Electric Power Cooperative and North Carolina Electric Membership Corporation owning 95 MW and 100 MW respectively. Construction is anticipated to begin in summer 2027, with the facility expected to serve customers by early 2031.
The project represents Duke Energy’s first new generation facility in South Carolina in a decade and is the first to be approved following the enactment of the Energy Security Act in 2025.
According to a survey by Ernst & Young cited in the release, the project is expected to support more than 2,200 jobs annually during the multi-year construction period, with 746 construction jobs in Anderson County. Once operational, the facility is projected to have an $84 million annual statewide economic impact, supporting 125 jobs and $10 million in annual labor income.
The plant will use dry cooling technology, which uses 90% less water than traditional wet cooling methods. The facility will not produce a vapor plume and will not require chemical water treatment.
The approval followed a public hearing in Anderson before the commission. Duke Energy held two open house events for community members to learn about the project.
Duke Energy South Carolina President Tim Pearson stated the commission recognized "that the Anderson County combined cycle natural gas power plant is the right resource at the right time at the right site."
Duke Energy Carolinas, a Duke Energy subsidiary, currently owns 20,800 megawatts of energy capacity and supplies electricity to 2.9 million customers across North Carolina and South Carolina.
In other recent news, Duke Energy has completed a $1.5 billion convertible notes offering due in 2029. The notes, which bear an interest rate of 3.000% per year, were sold in a private placement to qualified institutional buyers. The offering included an additional $200 million in notes, purchased through the full exercise of an option granted to the initial purchasers. Additionally, Duke Energy reached settlement agreements with North Carolina and South Carolina regulators regarding its proposed merger of Duke Energy Carolinas and Duke Energy Progress. The settlements involve agreements with entities such as the North Carolina Public Staff, the state Attorney General’s Office, and companies including Google, Walmart, and Nucor. The merger is expected to guarantee significant future savings for customers, with Duke Energy committing to report these savings to state regulators annually over a 14-year period. These developments mark significant steps for Duke Energy in its financial and operational strategies.
Courtesy: www.reuters.com
