Duke Energy provides resource plan update to South Carolina regulators that reflects state's booming population, economy

Rhea-AI Summary

Duke Energy supports South Carolina's rapid population growth by proposing new energy generation resources to meet increasing electricity demand. The company aims to maintain reliability and affordability through a diverse 'all of the above' approach.

Insights

Economist

The rapid population growth in South Carolina, as reported by the Census Bureau, has significant economic implications. A growing population typically leads to increased demand for goods and services, which can stimulate economic activity and create a positive feedback loop for further growth. This population surge is likely to boost local businesses, increase tax revenues and potentially attract more investments into the state. However, it also brings challenges, such as the need for expanded infrastructure, including energy generation, to keep pace with demand.

From an economic standpoint, Duke Energy's plan to diversify energy sources in response to the state's growth is a strategic move. By adopting an 'all of the above' strategy, they aim to mitigate risks associated with over-reliance on a single source of energy. This could lead to more stable energy prices for consumers and businesses, fostering a more attractive environment for economic development. Furthermore, the emphasis on clean energy transition aligns with global trends toward sustainability, which could position South Carolina as a forward-thinking, environmentally responsible state, potentially attracting 'green' industries and investments.

Energy Market Analyst

Duke Energy's projection of an eightfold increase in load growth signifies a substantial shift in energy consumption patterns, likely influenced by the state's population boom and economic expansion. The company's proposed expansion of energy resources to meet this demand is a critical development for investors and stakeholders. Diversification of energy sources, including renewables, can lead to a more resilient energy grid, which is essential for long-term sustainability and may provide a competitive edge over regions with less diversified energy portfolios.

Moreover, the focus on clean energy transition is not only a response to growing consumer and regulatory demand but also a reflection of the evolving energy market. As the cost of renewable energy technologies continues to decrease, the economic feasibility of such investments improves, potentially leading to higher profit margins and shareholder value in the long run. Investors should monitor the company's ability to balance the upfront costs of expanding and diversifying its energy generation with the anticipated long-term benefits of serving a larger customer base with more reliable and sustainable energy options.

Environmental Analyst

The environmental implications of Duke Energy's strategy are noteworthy. An 'all of the above' approach, while offering energy source diversification, must be carefully managed to ensure that the addition of new resources does not disproportionately increase the reliance on fossil fuels, which have greater environmental impacts. The company's commitment to the clean energy transition is a positive sign, indicating a move towards reducing carbon emissions and aligning with climate change mitigation efforts.

Investors with an interest in environmental, social and governance (ESG) criteria will find this development particularly relevant. The shift towards cleaner energy sources can enhance the company's ESG profile, potentially leading to greater interest from socially responsible investors. However, the execution of this strategy and its actual environmental outcomes will be crucial in determining the long-term sustainability of the company's operations and its alignment with global environmental targets.

• Palmetto State's population grew faster than anywhere in the nation in 2023
• Company continues to pursue 'all of the above' generation strategy, which provides diverse energy sources to meet state's growing electricity demand

GREENVILLE, S.C., Jan. 31, 2024 /PRNewswire/ -- From population growth to the expansion of manufacturing and other major economic development wins, South Carolina is booming.

According to the Census Bureau, the Palmetto State had the fastest growing population in the nation in 2023, largely due to the tremendous impact of the state's economic prosperity.

Duke Energy, a key player in supporting the region's growth, today updated the Public Service Commission of South Carolina (PSCSC) on how expanding customer needs call for the addition of new energy generation resources to ensure South Carolina continues its leadership in both economic development and the clean energy transition.

"We're already projecting eight times the load growth we anticipated just two years ago," said Mike Callahan, Duke Energy's South Carolina president. "This additional demand for energy is unprecedented – historic in both size and speed. To meet customer needs, we're proposing more of nearly every resource available to us as we maintain our diverse, 'all of the above' approach to maintain reliability and affordability."

Duke Energy's Carolinas Resource Plan – originally put forward in August 2023 – is the company's proposed roadmap for delivering a path to cleaner energy without compromising grid reliability, energy affordability or the energy demands of a growing region.

In addition to what the plan previously proposed in August, the company has adjusted for a higher growth outlook by proposing a new combined cycle gas plant to be built in South Carolina. The company's update also includes the potential of wind generation off the North Carolina coast, subject to necessary regulatory approvals and support.

The plan continues to balance traditional forms of dispatchable, on-demand resources like advanced nuclear, natural gas and pumped hydro storage with a growing amount of complementary renewables that can deliver fuel-free energy, along with aggressive energy efficiency and demand side management programs to target peak energy use reduction of nearly 2.8 gigawatts by 2038.

"We must have a diverse energy mix to account for the coldest winter nights and the warmest summer days," Callahan said. "We must make sure the power is there when customers need it and it is as affordable as possible – providing certainty as they go about their daily lives. We need power – a lot of it – and we need to take action today."

To learn more about how Duke Energy is planning for South Carolina's energy future, visit duke-energy.com/CarolinasResourcePlan.

Next steps

On Jan. 25, the PSCSC approved Duke Energy's proposal to provide this additional information and reset the previously approved regulatory schedule for the process that involves the evaluation of thousands of pages of testimony and data from the company, other parties to the proceeding and customers. That new schedule now plans for a hearing in mid-September where this information is thoroughly evaluated, and ultimately the PSCSC will order a path forward, likely in November 2024.

Duke Energy Carolinas/Duke Energy Progress

Duke Energy serves about 830,000 households and businesses in South Carolina through two utilities, Duke Energy Carolinas – serving primarily the Upstate including Greenville, Spartanburg and Anderson counties – and Duke Energy Progress, with customers in the northeastern part of the state including Florence, Darlington and Sumter counties.

Duke Energy (NYSE: DUK), a Fortune 150 company headquartered in Charlotte, N.C., is one of America's largest energy holding companies. Its electric utilities serve 8.2 million customers in North Carolina, South Carolina, Florida, Indiana, Ohio and Kentucky, and collectively own 50,000 megawatts of energy capacity. Its natural gas unit serves 1.6 million customers in North Carolina, South Carolina, Tennessee, Ohio and Kentucky. The company employs 27,600 people.

Duke Energy was named to Fortune's 2023 "World's Most Admired Companies" list and Forbes' "World's Best Employers" list. More information is available at duke-energy.com. The Duke Energy News Center contains news releases, fact sheets, photos and videos. Duke Energy's illumination features stories about people, innovations, community topics and environmental issues. Follow Duke Energy on Twitter, LinkedIn, Instagram and Facebook.

Contact: Ryan Mosier
24-Hour: 800.559.3853

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SOURCE Duke Energy

FAQ

What is Duke Energy's approach to meeting South Carolina's growing electricity demand?

Duke Energy maintains a diverse 'all of the above' generation strategy to ensure reliability and affordability in meeting the increasing electricity demand in South Carolina.

What did the Census Bureau report about South Carolina's population growth in 2023?

The Census Bureau reported that South Carolina had the fastest growing population in the nation in 2023.

Who updated the Public Service Commission of South Carolina (PSCSC) about the need for new energy generation resources?

Duke Energy updated the Public Service Commission of South Carolina (PSCSC) about the need for new energy generation resources to meet expanding customer needs.

What is the projected load growth for Duke Energy in South Carolina?

Duke Energy is projecting eight times the load growth it anticipated just two years ago in South Carolina.