Duke Energy expands aid for low-income households

CHARLOTTE, NC - Duke Energy (NYSE:DUK), a leading American energy company with a market capitalization of $89.57 billion and annual revenue exceeding $30 billion, has announced updates to its assistance programs for low-income households in North Carolina, aiming to provide more substantial and accessible energy savings in 2025. According to InvestingPro data, the company maintains its position as a prominent player in the Electric Utilities industry, with a strong track record of profitability. The enhancements to these programs come on the heels of a year where the company provided nearly $90 million in energy bill assistance to over 114,000 households.

The revamped offerings include increased incentives for weatherization services, which now offer free installation of energy conservation measures, such as HVAC and refrigerator replacements, with incentives rising to $8,000 and $1,500 respectively. To qualify, customers’ income must be below 200% of the federal poverty guidelines.

Additionally, Duke Energy has introduced an income-qualified demand response program, Power Manager®/EnergyWise Home®, for electric heat customers. Participants in this program, who have previously qualified for a Duke Energy income-qualified program, will receive a free smart thermostat and can earn bill credits up to $150 for reducing energy use during peak times.

The Neighborhood Energy Saver program, which provides walk-through energy assessments and free energy-saving products, has also seen an increase in incentives. Eligibility for this program is based on residence in qualifying neighborhoods where at least 50% of residents are under the 200% federal poverty threshold.

Beyond these programs, Duke Energy continues to offer the Customer Assistance Program (CAP), which provides a monthly credit of up to $42, the Share the Light Fund for emergency bill payments, and customized installment plans for managing large bills. The company’s commitment to customer support is matched by its dedication to shareholder returns, having maintained dividend payments for 55 consecutive years and raised them for 17 straight years, with a current dividend yield of 3.59%.

Duke Energy encourages customers to utilize their usage alerts and energy-saving tips, such as setting thermostats lower, reducing water heater temperatures, and using LED bulbs, to further reduce energy costs.

This announcement is based on a press release statement from Duke Energy, which operates Duke Energy Carolinas and Duke Energy Progress, serving millions of customers across North Carolina and South Carolina. Duke Energy (NYSE:DUK) is actively investing in grid upgrades and cleaner energy generation as part of its commitment to a sustainable energy future. With an InvestingPro Financial Health Score rated as GOOD, the company demonstrates strong operational performance. For more information on Duke Energy’s energy-saving solutions, customers can visit duke-energy.com/WinterEnergySavings. Investors can access comprehensive analysis and additional ProTips through the detailed Pro Research Report, available exclusively on InvestingPro.

In other recent news, Duke Energy reported its fourth-quarter 2024 earnings, revealing adjusted earnings per share (EPS) of $1.66, slightly below the forecasted $1.68, and revenue of $7.36 billion, which fell short of the expected $7.7 billion. Despite the earnings miss, Duke Energy maintains a positive outlook, projecting a 7% EPS growth for 2025, supported by an $83 billion capital plan. Jefferies analyst Julien Dumoulin-Smith raised Duke Energy’s stock price target to $132 and maintained a Buy rating, citing a robust 6.8% earnings per share compound annual growth rate (CAGR) and a projected rate base CAGR of approximately 7.7% from 2024 to 2029.

Goldman Sachs also adjusted its price target for Duke Energy to $122, maintaining a neutral stance, while Mizuho (NYSE:MFG) Securities increased its target to $122, keeping an Outperform rating. Both firms acknowledged Duke Energy’s promising growth prospects, particularly in the Carolinas, despite the company’s recent earnings shortfall. BMO Capital Markets adjusted its price target slightly downward to $123 but maintained an Outperform rating, citing challenges related to operational and maintenance expenses.

Duke Energy’s management remains optimistic, with expectations of earning within the top half of their projected 5-7% growth range by 2028-2029. The company’s strong regulatory execution and focus on expanding its renewable energy portfolio and infrastructure investments are seen as key drivers for future growth. Analysts continue to monitor Duke Energy’s financial strategy and market position, with a focus on its balance sheet and potential for long-term growth in the utility sector.

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