Duke Energy DUK-N said on Thursday it estimates the total cost to restore facilities damaged by Hurricanes Debby, Milton and Helene to be in the range of $2.4-billion to $2.9-billion.
Duke, the largest utility covering North and South Carolina, saw the hurricanes hit its service territories in the past few months and rip away miles of transmission lines and power poles, leaving tens of thousands of its customers without electricity.
Total storm restoration costs for all three hurricanes, including capital expenditures, are estimated to be in the range of $2.4-billion to $2.9-billion for the year, Duke said, with about $750-million recognized in the reported quarter.
“Storm costs are going to temporarily impact our credit in 2024 and as we recover these costs through established mechanisms in 2025, that will be resolved,” CFO Brian Savoy said during a post-earnings call.
Costs related to storm restoration and lost revenue from storm-related outages and evacuations impacted the utility’s third-quarter profit, which fell short of Wall Street estimates on Thursday.
Adjusted income at its electric utilities and infrastructure segment fell 4.3 per cent in the quarter from a year ago.
Duke expects the current quarter’s adjusted earnings per share to be higher than a year ago due to the growth from rate increases in the electric and gas segment and higher sales volumes.
However, the utility flagged that it expects some revenue hit due to outages related to Hurricane Milton.
The company reaffirmed its full-year adjusted profit forecast of $5.85-$6.10 per share, but said it was trending toward the lower half of the range due to storm restoration costs and loss of revenue caused by record outages.
The Charlotte, North Carolina-based utility posted an adjusted profit of $1.62 per share for the third quarter, missing analysts’ average estimate of $1.70, according to data compiled by LSEG.