North Carolina-based Duke Energy (DUK) continues to expand its renewable energy portfolio. Earlier this month, the company had declared its plan for building its second-largest renewable energy facility near Casper, Wyoming. The 200 MW Top of the World project, the company’s fourth wind farm in Wyoming and ninth in the U.S., will generate enough electricity to power approximately 50-60 thousand households annually.
 
Duke expects to start the construction work of the project in late 2009 or early 2010, after receiving requisite approvals, and to commence commercial production by end of 2010. The company has signed a 20-year contract with PacifiCorp, which operates as Rocky Mountain Power in Wyoming, for selling the entire output and associated renewable energy credits of the plant.
 
Year to date, Duke has announced four new wind power projects, with a capacity totaling above 360 MW. Presently, Duke has over 500 MW of wind-powered energy facility under operation, which will exceed 700 MW by the end of this year. Additionally, it has nearly 5,000 MW in pipeline.
 
Longer-term, Duke will be able to record moderate earnings growth, while offering an attractive dividend yield. However, lower load usage will continue to be a challenge in FY10. Hence, we maintain our Neutral recommendation for the company.
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