Duke Energy 2009 Annual Report Download - page 14

DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 13
Even without carbon regulation, we would still need
to complete our Cliffside and Edwardsport advanced coal
projects and our two natural gas-fired plants in North Carolina,
and pursue the nuclear option. Why? Because we will have to
replace nearly every power plant we operate today by 2050,
due to normal aging and technological obsolescence.
Why now? Because we must meet our clean energy
aspirations and build a flexible generation portfolio that
includes all fuel sources. Modernizing our fleet now gives us
and our customers the flexibility to respond to unpredictable
and ever-changing fuel prices.
We simply cannot rely on renewable energy for most of
our power. Wind and solar power are intermittent. As such,
they are not as reliable and affordable as baseload plants.
Advances in electricity storage technology will continue to
make renewables more reliable. Meanwhile, coal-fired plants,
nuclear plants and even hydroelectric plants can provide
power 24/7, as long as fuel is available.
Furthermore, renewables can lead to energy sprawl,
impacting natural habitats and the wildlife that depend on
them. Baseload plants have a much smaller footprint, given
their land used per unit of energy generated. These are some
of the trade-offs we must consider as we continue to work to
reduce our carbon footprint.
If we’re not wrong about carbon and the scientific
consensus continues to be that climate change is a very
real risk, then our investments will have positioned our
company to be a world leader in cleaner energy.
Repowering our states and creating jobs
Our strategy is also to bolster our local economies and
build a solid economic base for future business. Between
our Cliffside and Edwardsport projects, two of the largest
capital projects under way in their states, approximately
4,000 construction workers are employed. The two
North Carolina gas plants represent about another 1,000
construction jobs. The proposed nuclear power plants in
South Carolina and Ohio would create an estimated 7,000
peak construction jobs combined — not to mention the
hundreds of high-paying permanent jobs and the ongoing
contributions to the local communities’ tax base once these
facilities are operating.
Shedding a Light
To stay informed or to join the conversation on these
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
of different viewpoints on topics important to our company
and our industry.
DELIVERING ON OUR MISSION
I want to thank all of our employees for maintaining our
operational excellence and for delivering superior results for
our customers, investors and the communities we serve during
an especially challenging year. And I want to thank you, our
investors, for your support and loyalty. We remain committed
to earning good returns for you on your investments.
On behalf of all of our stakeholders, I also thank our
board of directors, who provided important insight and
counsel during this period of unprecedented uncertainty.
I especially want to thank Dudley Taft, president and CEO
of Taft Broadcasting Co., who is retiring from our board in
2010. Dudley has been a director of Duke Energy and its
predecessor companies since 1985. In his 25 years of
dedicated service on our board, he has been a significant
contributor to our continued growth and success. We will
miss his business acumen, and his direct and practical
approach to finding workable solutions. We wish him well
in his retirement.
Last year, we welcomed John Forsgren and Jim Reinsch
to our board. John is the retired vice chairman, executive
vice president and chief financial officer of Northeast Utilities.
He has 35 years of corporate finance experience. Jim is the
retired senior vice president and partner of Bechtel Group,
and past president of Bechtel Nuclear. He has more than
37 years of nuclear experience. John and Jim bring a wealth
of knowledge and experience to an already strong board.
Although there is nothing simple about delivering
affordable, reliable and clean energy, we are committed
to continue delivering on that mission and balancing the
needs of all of our stakeholders. We never know what the
future will be, but we can anticipate it by looking around
the corner and over the horizon. That focus gives us
great clarity about what we must do to honor our
commitments — today and tomorrow.
James E. Rogers
Chairman, President and Chief Executive Officer
March 15, 2010