Zacks_Analysts' Blog : Duke Energy Playing It Smart - Analyst Blog

Duke Energy Corporation (DUK) in a smart move announced plans to distribute 10 million free compact fluorescent light bulbs (CFLs) to it’s customers in 2011. The move will have the twin advantage of energy savings along with emission reduction.

Earlier in 2010 also Duke Energy distributed more than 10 million free CFLs to approximately one million residential customers. Per company estimates the low power consuming bulbs saved enough energy to power nearly 45,000 homes. Duke also estimated the energy saved in the process offset the same amount of carbon dioxide emissions produced annually by 70,000 passenger vehicles.

Duke Energy hopes to replicate the success in 2011 also. CFLs use 75% less energy and last up to 10 times longer than standard light bulbs. The company calculates replacing a residential customer’s six most frequently used incandescent bulbs with CFLs can save more than $180 over the lifetime of the bulbs. The company intends to meet a full 12% of customers' electricity demand through energy efficient means by 2030.

Charlotte, North Carolina-based Duke Energy Corp. is a diversified energy company with a portfolio of domestic and international, natural gas and electric, regulated and unregulated businesses. Its regulated utility operations serve approximately 4 million customers in North Carolina, South Carolina, Indiana, Ohio and Kentucky, comprising a population of approximately 11 million.

Duke Energy’s stable U.S. electricity and gas operations provide a relatively stable and growing earnings stream. Looking ahead, higher rates through recent settlement agreements in Kentucky, North Carolina and South Carolina will stand the company’s long-term goal of 4%-6% earnings growth in good stead.

Duke Energy’s Commercial Power and International Business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the U.S.

Earlier in February 2011, Duke Energy reported strong sales in its fourth quarter 2010 results. The company generated total revenues of $3.4 billion in the fourth quarter versus $3.1 million in the year-ago quarter. The year-over-year growth was driven mainly by higher rates in the Carolinas and favorable weather.

Duke Energy currently has a short term Zacks #3 Rank (Hold), which translates into a long-term Neutral recommendation for the stock. This is consistent with the ranks of its closest peers, American Electric Power Co. Inc. (AEP) and Ameren Corporation (AEE).