Duke Energy 2009 Annual Report Download

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2009 ANNUAL REPORT AND FORM 10-K
WHAT IS SIMPLE
ABOUT PROVIDING
AFFORDABLE,
RELIABLE AND
CLEAN ENERGY?

Table of contents

  • Page 1
    2009 ANNUAL REPORT AND FORM 10 - K WHAT IS SIMPLE ABOUT PROVIDING AFFORDABLE, RELIABLE AND CLEAN ENERGY?

  • Page 2
    ... United States. 77% U.S. FRANCHISED ELECTRIC & GAS 2 9% COMMERCIAL POWER 2 14% DUKE ENERGY INTERNATIONAL 2 BUSINESS MIX DIVERSITY 2 77% REGULATED 23% NON-REGULATED FUEL DIVERSITY 3 62% COAL 31% NUCLEAR 5% NATURAL GAS 2% WIND / HYDRO 1 Forecasted 2010 adjusted segment Earnings Before Interest...

  • Page 3
    ..., reliable and cleaner energy with investor needs for competitive returns on their invested capital. In this year's report, we will show you how we balance these trade-offs to generate sustainable growth that benefits all of our stakeholders. DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 1

  • Page 4
    ... Carolina, South Carolina and Indiana Deploying smart grid in Ohio in early 2010 2009 and Early 2010 Progress â- Retained margin in Ohio with retail customer strategy Added more than 360 MW of wind energy in 2009, and ended the year with approximately 735 MW of wind power in commercial operation...

  • Page 5
    ...of Significant Accounting Policies"), 2006 merger with Cinergy, 2006 Crescent joint venture transaction and subsequent deconsolidation effective Sept. 7, 2006, 2005 DENA disposition, 2005 deconsolidation of DCP Midstream effective July 1, 2005, and 2005 Duke Energy Field Services, LLC (DEFS) sale of...

  • Page 6
    ... and cash flow from our commercial businesses. As we work to achieve constructive regulatory recovery of our investments and earn fair returns on capital, we will strive to smooth out and reduce the impact of future rate increases on our customers. DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 5

  • Page 7
    ...and earnings. In Ohio, the recession drove down wholesale power prices, and competitors set out to undercut our locked-in rates. We met this challenge by launching a strategy to attract customers seeking competitive suppliers with our own competitive retail supplier, Duke Energy Retail Sales. As you...

  • Page 8
    ... coal-fired plants and other technologies to maintain the fuel flexibility of our generation fleet. This will help to mitigate the impact of future price spikes for any one fuel, and smooth out customer bills. Replacing some of our oldest coal-fired DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT...

  • Page 9
    ... energy costs, while earning fair returns for our investors. New partnerships to advance affordable power To accelerate the development of cleaner and more affordable coal technologies, we are sharing research and experience with U.S. partners, such as the Electric Power Research Institute (EPRI...

  • Page 10
    ... grid." Smart grid benefits A smarter grid will create a digital, two-way information exchange between us and our customers. It will transform today's century-old power delivery system into an advanced energy network that delivers electricity and energy usage information. Today's analog meters...

  • Page 11
    ...our Renewables business in 2007 with investments in wind energy. We now have approximately 735 MW of operating wind projects in Texas, Wyoming and Pennsylvania, and we expect to have nearly 1,000 MW of commercial wind power in operation by the end of 10 DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT

  • Page 12
    ... in bringing new wind projects on line ahead of schedule and under budget. These projects are backed by long-term contracts with creditworthy partners - a low-risk approach that we are also applying to solar, biomass and new transmission projects. DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 11

  • Page 13
    ...renewable wind and solar projects being built under long-term contracts in our commercial businesses. About $2 billion is allocated for customer additions and maintenance costs. In the short term, we have some flexibility on the timing of this spend. 12 DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT

  • Page 14
    ... and other key energy issues, I invite you to visit our new issues-oriented Web site, www.sheddingalight.org. At Shedding a Light, you will find information and a variety James E. Rogers Chairman, President and Chief Executive Officer March 15, 2010 DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 13

  • Page 15
    ... Financial Officer Bank of America Corp. Chair, Compensation Committee Member, Finance and Risk Management Committee Director of Duke Energy or its predecessor companies since 2005 James E. (Jim) Rogers Chairman, President and Chief Executive Officer Duke Energy Corporation Director of Duke Energy...

  • Page 16
    ..., Jennifer Weber, Brett Carter, Roberta Bowman, Marc Manly, Jim Turner, Jim Rogers, Keith Trent, Lynn Good, Dhiaa Jamil, Ellen Ruff, David Mohler, Julie Janson, Bill Tyndall and Jim Stanley James E. (Jim) Rogers Chairman, President and Chief Executive Officer Richard W. (Rick) Haviland Senior Vice...

  • Page 17
    ...PLAINFIELD, IND. CINCINNATI, OHIO CHARLOTTE, N.C. Commercial Power Commercial Power owns, operates and manages power plants, primarily located in the Midwest. Commercial Power's subsidiary, Duke Energy Retail Sales, serves retail electric customers in Ohio with generation and other energy services...

  • Page 18
    ... EPS from continuing operations attributable to Duke Energy Corporation common shareholders, adjusted for the per share impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Special items represent certain charges and credits, which management...

  • Page 19
    ... for 2010, information to reconcile it to the most 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. (In millions, except per-share amounts) Costs to achieve the Cinergy merger...

  • Page 20
    ...Shareholders will be: Date: Time: Place: Thursday, May 6, 2010 10 a.m. O.J. Miller Auditorium Energy Center 526 South Church Street Charlotte, NC 28202 Financial Publications Duke Energy's annual report and related financial publications can be found on our Web site at www.duke-energy.com/investors...

  • Page 21
    526 South Church Street Charlotte, NC 28202-1802 www.duke-energy.com OUR MISSION At Duke Energy, we make people's lives better by providing gas and electric services in a sustainable way - affordable, reliable and clean. This requires us to constantly look for ways to improve, to grow and to reduce...