IBJNews

Duke Energy profit falls on Indiana plant settlement

Back to TopCommentsE-mailPrintBookmark and Share

Duke Energy Corp., which plans to buy Progress Energy Inc. to become the nation's largest utility owner, said first-quarter profit fell 42 percent after a regulatory settlement in Indiana increased costs and mild weather reduced heating demand.

Earnings fell to $295 million, or 22 cents a share, from $511 million, or 38 cents, a year earlier, Charlotte, N.C.-based Duke said Friday in a prepared statement. Excluding the Indiana settlement and other one-time items, per-share profit was 2 cents more than the 36-cent average of 10 analysts’ estimates compiled by Bloomberg.

The Indiana settlement, announced April 30, clipped results by 20 cents. It resolves a dispute over cost overruns at a $3.3 billion coal-fueled power plant in Edwardsport expected to begin operation this year. Duke agreed that customers will pay only $2.6 billion of the plant cost.

In North Carolina, where Duke has the most customers, the first quarter was the warmest in 22 years, according to the National Climatic Data Center. Lower heating demand cut results by 4 cents a share, Duke said. Higher utility rates in North and South Carolina added 3 cents to profit.

Sales fell 0.9 percent to $3.63 billion. Chairman and CEO Jim Rogers affirmed a forecast for 2012 adjusted profit of $1.40 to $1.45 a share.

Included in the forecast are lower operating earnings of 2 cents a share that will result from the Indiana plant settlement, Chief Financial Officer Lynn Good said.

Duke needs both federal and state approvals to close the $16.5 billion Progress transaction, revised after the Federal Energy Regulatory Commission rejected the initial mitigation plan because of anti-competition concerns. Progress said Thursday it expects the merger to close by July 1.

The deal would combine North Carolina’s largest utilities and create the second-largest U.S. nuclear power plant operator. Progress, based in Raleigh, N.C.,  reported net income of $150 million, or 51 cents a share, on sales of $2.1 billion Thursday.

Duke’s earnings were released before regular trading began on U.S. markets. Duke shares fell 0.4 percent, to $21.40 each, Thursday. Progress rose 0.8 percent, to $53.99.

Exelon Corp., based in Chicago, is currently the largest U.S. utility owner and the largest operator of nuclear plants.
 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
thisissue1-092914.jpg 092914

Subscribe to IBJ
  1. On my rental property, before tax caps, I was paying $2,000/yr in property taxes. After the tax caps I'm paying $4,000/yr. How exactly am I "benefiting the most"?

  2. Nick, I too tried that new Walmart NM on Michigan a couple of weeks ago. I had the same feeling, it had good prices, but something was just off about it. I can't put my finger on what it is, but it just didn't feel right. On the plus side, it was easy to get in and out of and much less busy than a typical Walmart.

  3. @Young Hoosier - you might want to check out the Paris skyline again....it's decidedly taller than 7-8 stories http://all-that-is-interesting.com/paris-skyline-photo

  4. Are you in need of Loan or financial help?, you need a loan for your business or to solve other monetary issues. James Lewis Loan Company started offering loans with a very low interest rate of 3% for a minimum of 15 years, Interested applicants should submit their request via email (jameslewisloan@gmail.com) for immediate processing with the information listed below: Names in full:................ Address:...................... Gender:.................... Email:........................ Phone Number:....... Amount Required:... Loan Duration:....... Country:................. Occupation:.................. ================================== In acknowledgment to these details, I will send you a well calculated Terms and Conditions for the amount you require. Warm Regards, Mr James Lewis

  5. So the GOP legislature passed a bill that gave big breaks to business at the expense of Indiana families. Color us not surprised.

ADVERTISEMENT