Feb 13 (Reuters) - Duke Energy ( DUK ) on Thursday

raised its five-year capital expenditure plan to $83 billion, a

13.7% jump, to accommodate rising demand from population growth

in the U.S. Southeast and the expansion of data centers and

advanced manufacturing, the company said.

U.S. power demand is expected to hit record highs in 2025

and 2026 due to growing demand from new AI and cloud computing

data centers and the electrification of buildings and

transportation, according to the U.S. Energy Information

Administration.

In the country's Southeast states, where Duke is among the

biggest electric utilities, swift population growth is also

driving up electricity consumption.

The company projects load growth from 2027 to 2029 to

jump to 3%-4% from 1.5% to 2% within the next two years.

Most of the $10 billion increase to Duke's capital plan will

be used to expand power generation, while a major portion of the

broader plan is aimed at bolstering the utility's distribution

and transmission lines.

"We're seeing a higher demand for electricity in our

territory and we're building more of everything," Duke CFO Brian

Savoy told Reuters.

The company expects to add nearly five gigawatts (GW) of

natural gas power in service by the end of 2029.

Duke expects to issue $6.5 billion of equity over its

2025-2029 plan, including $1 billion this year, as it plans to

fund roughly 40% of the increase in its capital plan with

equity.

For the fourth quarter ended December 31, income from Duke's

electric and gas segments rose 5% overall to around $1.4 billion

from the same reporting period last year.

However, due to interest expenses, a high effective tax rate

and storm costs, the power provider posted a profit of $1.66 per

share on an adjusted basis for the reported quarter, in line

with analysts' estimates, according to data compiled by LSEG.

Duke, the largest utility covering North and South Carolina,

saw Hurricanes Debby, Milton and Helene hit its service

territories, which ripped away miles of transmission lines and

power poles, leaving tens of thousands of its customers without

electricity.

Higher-for-longer interest rates can weigh on utilities, as

they make investing in the construction and maintenance of

critical infrastructure such as electrical grids more expensive.

Revenues of the Charlotte, North Carolina-based utility came

in at $7.36 billion, beating analysts' average estimate of $7.33

billion, largely due to higher residential sales and higher

rates.

Duke forecasted 2025 earnings to be in the range of $6.17

per share to $6.42 per share, the midpoint of which is slightly

below estimates of $6.33 per share.