Duke Energy 2007 Annual Report Download - page 32

Duke Energy at a Glance
30 *Percent of 2008 forecasted ongoing total segment EBIT does not include results for the operations labeled as Other.
BUSINESS DESCRIPTION
U.S. Franchised Electric and Gas
(USFE&G) consists of Duke Energy’s
regulated generation, electric and gas
transmission and distribution systems. Its
generation portfolio is a mix of fuel sources
— coal, oil/natural gas, nuclear and hydro-
electric. USFE&G is Duke Energy’s largest
business segment and primary source of
earnings growth.
NOTABLE STATISTICS
Electric Operations
Owns approximately 28,000 megawatts of generating capacity
Supplies electric service to approximately 3.9 million customers
Serves territories in five states — North Carolina, South
Carolina, Ohio, Indiana and Kentucky — that total about
47,000 square miles
Operates 148,700 miles of distribution lines and a
20,900-mile transmission system
Gas Operations
Provides regulated transmission and distribution service to
approximately 500,000 customers over a 3,000-square-mile
service territory in Ohio and Kentucky
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BUSINESS DESCRIPTION
Commercial Power owns, operates and
manages nonregulated power plants,
primarily in the Midwest. Commercial
Power also includes Duke Energy
Generation Services (DEGS), which
develops, owns and operates generation
sources (including wind assets) that serve
large energy consumers, municipalities,
utilities and industrial facilities.
NOTABLE STATISTICS
Owns and operates a balanced generation portfolio of
approximately 8,000 megawatts
Most of the generation output in Ohio, over 21 million
megawatt-hours annually, is supplied to regulated customers
DEGS has contracted to purchase wind turbines that are capable
of generating approximately 240 megawatts when placed in
commercial operation beginning in 2008 and 2009
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BUSINESS DESCRIPTION
Crescent Resources is effectively a 50-50
joint venture with Morgan Stanley Real
Estate Fund. Crescent manages land
holdings and develops high-quality
commercial, residential and multi-family
real estate projects.
NOTABLE STATISTICS
Located in 10 states, primarily in the southeastern and
southwestern United States
Owns 900,000 square feet of commercial, industrial
and retail space, with an additional 500,000 square feet
under construction
Manages approximately 122,608 acres of land
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Commercial Power
Duke Energy International
Crescent Resources
EXPECTED 2008
ONGOING EBIT
CONTRIBUTION
2%*
BUSINESS DESCRIPTION
Duke Energy International (DEI) operates
and manages power generation facilities
located in the Central and South American
countries of Argentina, Brazil, Ecuador,
El Salvador, Guatemala and Peru. DEI also
owns equity investments in Saudi Arabia
and Greece.
NOTABLE STATISTICS
Owns, operates or has substantial interests in approximately
4,000 net megawatts of generation facilities
About 75 percent of DEI’s generating capacity is hydroelectric,
and approximately 90 percent is either currently contracted or
receives a system capacity payment
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EXPECTED 2008
ONGOING EARNINGS
BEFORE INTEREST
AND TAXES (EBIT)
CONTRIBUTION
74%*
EXPECTED 2008
ONGOING EBIT
CONTRIBUTION
12%*
EXPECTED 2008
ONGOING EBIT
CONTRIBUTION
12%*
U.S. Franchised Electric and Gas