The North Carolina Utilities Commission rejected Duke Energy's proposal for a $584 million natural gas turbine. This new generation unit was planned for the utility's Smith Energy Complex.
The unexpected decision creates a significant hurdle for Duke Energy's plans to expand capacity for rising regional demand. The proposed turbine aimed to provide reliable power for large-scale customers including data centers.
Wall Street Zen downgraded Duke Energy's stock to Sell following the regulatory rejection. Analysts cited the decision as a negative catalyst that could delay capacity additions and weaken expected returns. The rejection signals a potentially tougher regulatory environment for new fossil fuel projects.