Duke Energy 2006 Annual Report Download - page 2

IN THIS REPORT
1 Introduction — The New Energy Equation
3 Chairman’s Letter to Stakeholders
4 2006 Achievements and 2007 Goals
9 2007 Duke Energy Charter
11 2006 Financial Highlights
13 Duke Energy at a Glance
15 Defining the New Energy Equation
21 Solving the New Energy Equation
27 Challenging Conventional Wisdom
30 Consolidated Financial Statements
35 Board of Directors
37 Executive Management
38 Non-GAAP Financial Measures
40 Investor Information
41 Sustainability at Duke Energy
FORWARD-LOOKING STATEMENT
This report includes statements that do not directly or exclusively relate to historical facts. Such statements are “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. One can typically identify forward-
looking statements by the use of forward-looking words such as: may, will, could, project, believe, expect, estimate, continue, potential, plan, forecast
and other similar words. Those statements represent Duke Energy’s intentions, plans, expectations, assumptions and beliefs about future events
and are subject to risks, uncertainties and other factors, many of which are outside Duke Energy’s control and could cause actual results to differ
materially from the results expressed or implied by those forward-looking statements. Those factors include: state, federal and foreign legislative
and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures, and affect the speed at and degree to which
competition enters the electric and natural gas industries; the outcomes of litigation and regulatory investigations, proceedings or inquiries; industrial,
commercial and residential growth in Duke Energy’s service territories; additional competition in Duke Energy’s markets and continued industry
consolidation; the influence of weather on company operations, including the economic, operational and other effects of hurricanes, tornados or other
natural phenomena; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic
conditions, including any potential effects arising from terrorist attacks and any consequential hostilities; changes in environmental and other
laws and regulations to which Duke Energy and its subsidiaries are subject; the results of financing efforts, including Duke Energy’s ability to obtain
financing on favorable terms, which can be affected by various factors, including Duke Energy’s credit ratings and general economic conditions;
declines in the market prices of equity securities and resultant cash funding requirements for Duke Energy’s defined benefit pension plans; the level
of creditworthiness of counterparties to Duke Energy’s transactions; the amount of collateral required to be posted from time to time in Duke Energy’s
transactions; growth in opportunities for Duke Energy’s business units, including the timing and success of efforts to develop domestic and
international power; the performance of electric generation facilities; the effect of accounting pronouncements issued periodically by accounting
standard-setting bodies; the ability to successfully complete merger, acquisition or divestiture plans, including the prices at which Duke Energy is able
to sell assets; and the success of the business following a merger, acquisition or divestiture.
In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a
different extent or at a different time than Duke Energy has described. Duke Energy undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or otherwise. Information contained in this report is unaudited, and is
subject to change.
ABOUT THE COVER
Liqin Jiang is a load forecast analyst. Each day, she uses
temperature, humidity, wind and other key metrics to forecast
customer power demand for Duke Energy’s Midwest operations for
the next seven to 10 days. She must be as precise as possible to
ensure that adequate supplies of power are available to meet that
demand. Her analyses are just one example of how the Duke
Energy team works each day to balance — and ultimately to solve
— the new energy equation.