Duke Energy Corporation (DUK) will acquire a 20-megawatt (MW) operational wind farm in Wisconsin. Duke Energy Renewables, a commercial business unit of Duke Energy, agreed to purchase the Shirley Windpower Project from a subsidiary of Central Hudson Enterprises Corporation. The deal is expected to close this summer.
The Shirley Windpower Project, which began commercial operation in December 2010, sells all of its output and associated renewable energy credits to Wisconsin Public Service Corporation under the terms of a 20-year power purchase agreement. With the addition of the Shirley project, Duke Energy Renewables will own 1,006 MW of generating capacity at 10 U.S. wind farms – four in Wyoming, three in Texas, one in Colorado, one in Pennsylvania, and one in Wisconsin. Since 2007, Duke Energy has invested more than $1.5 billion to grow its commercial wind and solar power businesses.
Earlier, Duke Energy reported a strong first quarter 2011. Earnings in the most recent quarter surpassed both the year-ago results and the Zacks Consensus expectation mainly on the back of a strong performance at Duke Energy International.
Duke Energy expects its adjusted earnings per share for 2011 to be in the range of $1.35 to $1.40. The Zacks Consensus Estimate for 2011 is presently at $1.37 per share.
Duke Energy Corporation currently retains a Zacks #3 Rank (short-term Hold rating). The company competes with American Electric Power Co. Inc. (AEP) and Constellation Energy Group Inc. (CEG). Over the long run we are Neutral on the company.
Based in Charlotte, North Carolina, Duke Energy is an energy company. The company operates through three segments: U.S. Franchised Electric and Gas, Commercial Power, and International Energy.
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