Duke Energy 2008 Annual Report Download

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Redefining
2008 Summary Annual Report
Our Boundaries

Table of contents

  • Page 1
    Redefining Our Boundaries 2008 Summary Annual Report

  • Page 2
    ... to Stakeholders A Changing Mission Redefining Technology Redefining Regulation Redefining Climate Legislation Redefining Our Boundaries Redefining Our Business Value Board of Directors Executive Management Non-GAAP Financial Measures Forward-Looking Statement Investor Information Duke Energy at...

  • Page 3
    ... more efficient and responsive smart grid. We are promoting new regulatory frameworks to advance energy efficiency and advocating responsible climate change legislation. These initiatives put us in a unique position to grow our business, even during uncertain times. 2008 Summary Annual Report Duke...

  • Page 4
    ... in connection with Duke Energy's merger with Cinergy (see Note 3 to the Consolidated Financial Statements in Duke Energy's 2008 Form 10-K, "Acquisitions and Dispositions of Businesses and Sales of Other Assets"). c 2007 decrease due to the spinoff of the natural gas businesses to shareholders on...

  • Page 5
    ...a row, Duke Energy was named to the Dow Jones Sustainability Index (DJSI) for North American companies in the electric utility sector. In March 2009, Corporate Responsibility Officer magazine named Duke Energy to its 100 Best Corporate Citizens 2009 list. This recognition underscores our fundamental...

  • Page 6
    ... allocate cash to our growth projects as well as to maintain and grow our dividend. We are proud that 2008 was the 82nd consecutive year that Duke Energy paid a quarterly cash dividend on its common stock. Last year, the Board of Directors increased the quarterly dividend payment from 22 cents to 23...

  • Page 7
    ...load. For example, digitally connecting appliances such as air conditioners, water heaters and dishwashers to smart meters allows these devices to be programmed to briefly turn off and on during times of peak demand. This will better balance our loads, and in turn, save customers money. Duke Energy...

  • Page 8
    ... similar efficiency improvements and savings on our side of the meter. These investments will allow us to automatically balance loads and isolate overloads to prevent outages. Visiting the Future In 2008, we opened our Envision Center in Erlanger, Ky., just a few miles from our Ohio offices. Here...

  • Page 9
    ... on a few industries or regions of the country, we are pushing for enactment of federal cap-and-trade legislation applied equally to all parts of the economy, including power generation, manufacturing facilities, commercial businesses and motor vehicles. 2008 Summary Annual Report Duke Energy 7

  • Page 10
    ... also been blessed with great management teams and dedicated board members throughout this time. One such board member was Mary Schapiro, who served as a director of Cinergy and then Duke Energy since 1999. In December of 2008, she was nominated by President Obama to chair the U.S. Securities and...

  • Page 11
    ... leaders to clarify the technological, regulatory and environmental choices we face. These experts remind us that change requires the boldness to redefine our boundaries. Only then can we create a sustainable future for our children and grandchildren. 2008 Summary Annual Report Duke Energy 9

  • Page 12
    ...demand and supply fundamentals, wholesale and retail power markets, emerging technologies, asset valuations and strategies. He directs CERA's research efforts in the Global Power Group and is an authority on electricity markets, regulation, economics and strategy. DUKE ENERGY: What new technologies...

  • Page 13
    ... electric service, which is often just measured in kilowatt-hours of energy consumed or megawatts of peak demand. When you think about the future and these expanding boundaries, regulators will have to think about regulatory structures that support efficiency gains." 2008 Summary Annual Report Duke...

  • Page 14
    ... faced with projections of increased electricity use in the United States of nearly 30 percent between now and 2030 - only 22 years. To meet that demand, utilities are going to have to put new power plants into their plans. New power options aren't great and they come with a heavy price no matter...

  • Page 15
    ... shareholders win with returns earned on investments in energy efficiency. Customers win with lower energy costs. The environment wins with reduced greenhouse gas and other emissions. And our nation wins with a stronger economy and enhanced energy security." 2008 Summary Annual Report Duke Energy...

  • Page 16
    ... on global warming pollution. A market solution implements these legal limits in a way that rewards innovators so we create jobs, it protects the public at the lowest cost, and has real regulation of the market that achieves healthy air. For more of Fred Krupp's interview, go to www.duke-energy.com...

  • Page 17
    ... that companies like Duke can be a powerful voice for change, and Jim Rogers' participation in the U.S. Climate Action Partnership and support of its Blueprint for strong legislation, have helped open the eyes of legislators to the urgent need for action." 2008 Summary Annual Report Duke Energy 15

  • Page 18
    What does this mean for Duke Energy? 16 Duke Energy

  • Page 19
    ..., President and Chief Executive Officer Duke Energy Charlotte, N.C. Jim Rogers stands in the Envision Center by Duke Energy. Located near Cincinnati, Ohio, the center showcases the vision for and educates stakeholder groups about the company's future utility efforts, including the smart grid and...

  • Page 20
    ... value Duke Energy exists to provide our customers and communities with energy that is affordable, reliable and increasingly clean, and to create value for our investors. To continue to do this in a carbon-constrained world requires that we redefine the boundaries of our current business model...

  • Page 21
    ... fossil fuels (regulated generation megawatt-hours) to a greater mix of renewable energy, including wind, solar and biomass, as well as nuclear energy and energy efficiency. > > > > 2008 Summary Annual Report > > > > Transmission From a constrained grid in parts of our service territory to...

  • Page 22
    ... homes equipped with smart meters and power-use sensors. Some homes may also have their own storage batteries. Inside the homes, the large power-using appliances - such as furnaces, air conditioners, water heaters and clothes dryers - will use plug-in energy-sensing devices that wirelessly connect...

  • Page 23
    ... is on both sides of the meter. She looks at and evaluates advanced technologies on the transmission and distribution side, and then on the customer side - focusing on end-user energy efficiency. Anuja has been with the company for more than four years. 2008 Summary Annual Report Duke Energy 21

  • Page 24
    ... their costs and earn a return for investments in physical assets (such as power plants, poles and meters). But energy efficiency undermines the utility's profitability through reduced sales. On the other hand, the save-a-watt model provides compensation based on the value created - a portion of the...

  • Page 25
    ... new revenue streams and add customer value. Raiford has been with Duke Energy for seven years. Dick Stevie manages a technical team that provides analytical support to organizations across the company. This includes market research, sales forecasts, energy efficiency and demand-response program...

  • Page 26
    ... them happen slowly over time. We are also advancing plans, such as our save-a-watt program (see page 22), to help our customers use less energy so as prices increase, the hit on their bank accounts will be less. Kevin Leahy Managing Director, Climate Policy Cincinnati, Ohio â-² 24 Duke Energy

  • Page 27
    ... on and develops strategies to help address these policies, especially federal climate change legislation. He also serves as a "bridge" between the company and its diverse stakeholder groups on policy issues. Kevin has been with the company for 10 years. 2008 Summary Annual Report Duke Energy 25

  • Page 28
    ...Forum and the board of trustees of Converse College. G. Alex Bernhardt Sr. Chairman and CEO, Bernhardt Furniture Co.; Member, Audit and Nuclear Oversight Committees Director of Duke Energy or its predecessor companies since 1990. Browning is vice chairman of the Indianapolis Convention and Visitors...

  • Page 29
    ... Development. He is a board member of the Institute of Nuclear Power Operations, the Business Roundtable and the Nicholas Institute for Environmental Policy Solutions. He is also a member of the Honorary Committee of the Joint U.S.China Cooperation on Clean Energy. 2008 Summary Annual Report Duke...

  • Page 30
    ...global asset development and senior vice president and treasurer. Hauser has chaired the Edison Electric Institute's FERC Accounting Liaison Group and General Accounting Committee. Dhiaa M. Jamil Group Executive and Chief Nuclear Officer Carter leads Duke Energy's utility business in North Carolina...

  • Page 31
    ... North Carolina Chamber and the South Carolina Manufacturers Alliance, and is a member of the Palmetto Business Forum. Jim L. Stanley President, Duke Energy Indiana Trent is responsible for strategy, state and federal policy and government affairs, technology initiatives, corporate communications...

  • Page 32
    ... directly comparable GAAP financial measure is not available at this time, as management is unable to project special items or mark-to-market adjustments for future periods. Forecasted 2009 Adjusted Segment EBIT and 2008 Adjusted Total Segment EBIT Duke Energy's 2008 Summary Annual Report includes...

  • Page 33
    ... for Duke Energy's business units, including the timing and success of efforts to develop domestic and international power and other projects; construction and development risks associated with the completion of Duke Energy's capital investment projects in existing and new generation facilities...

  • Page 34
    ...energy.com/contactIR. Stock Exchange Listing Duke Energy's common stock is listed on the New York Stock Exchange. The company's common stock trading symbol is DUK. Web Site Addresses Corporate home page: www.duke-energy.com Investor Relations: www.duke-energy.com/investors InvestorDirect Choice Plan...

  • Page 35
    ... megawatts of wind energy projects in the potential development pipeline Duke Energy International 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...

  • Page 36
    526 South Church Street Charlotte, NC 28202-1802 www.duke-energy.com