Duke Energy 2006 Annual Report Download - page 14

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12
U.S. Franchised Electric and Gas
2007 EBIT
CONTRIBUTION
U.S. Franchised Electric and Gas,
which operates in North Carolina, South
Carolina, Indiana, Ohio and Kentucky,
is our largest business segment and
our primary source of earnings growth.
We expect this segment to represent
approximately 79 percent of forecasted 2007 ongoing
total segment earnings before interest and taxes (EBIT).*
It includes:
A $16 billion retail rate base
3.9 million electric customers
500,000 gas customers in Ohio and Kentucky
47,000 square miles of service territory
28,000 megawatts of regulated generation.
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Commercial Power
2007 EBIT
CONTRIBUTION
Duke Energy’s Commercial Power
business owns and operates unregulated
power plants, primarily in the Midwest.
Almost all of the results for this business
come from sales to retail customers in
Ohio under that state’s Rate Stabilization
Plan. Also in this segment is Duke Energy Generation
Services (DEGS), which develops, owns and operates
electric generation sources that serve large energy
consumers, municipalities, utilities and industrial
facilities. We expect this segment to represent approxi-
mately 7 percent of forecasted 2007 ongoing total
segment EBIT.* It includes:
8,100 megawatts of unregulated generation, most
of which is dedicated to regulated customers.
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Duke Energy International
2007 EBIT
CONTRIBUTION
Duke Energy’s international electric
generation operations are located in
Central and South America. We expect this
segment to represent approximately
11 percent of forecasted 2007 ongoing
total segment EBIT.* It includes:
Approximately 4,000 megawatts of generation,
primarily hydroelectric power, in six countries:
Argentina, Brazil, Ecuador, El Salvador,
Guatemala and Peru.
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Crescent Resources
2007 EBIT
CONTRIBUTION
Formed more than 40 years ago by
Duke Energy, Crescent Resources
manages land holdings and develops
high-quality commercial, residential
and multi-family real estate projects.
We expect this segment to represent
approximately 3 percent of forecasted 2007 ongoing
total segment EBIT.* In 2006, Duke Energy worked
with Morgan Stanley Real Estate Fund to create an
effective 50/50 joint venture.
Crescent Resources is in 10 states, primarily in
the southeastern and southwestern United States.
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Taking the U.S. Franchised Electric and Gas and Commercial Power segments together, we expect more than 85 percent of
Duke Energy’s forecasted 2007 ongoing total segment EBIT will come from sales to regulated customers.
*2007 forecasted ongoing total segment EBIT excludes results for the operations labeled Other.
DUKE ENERGY BUSINESS SEGMENTS