Duke Energy 2009 Annual Report Download - page 4

DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 3 2 DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT
OUR STRATEGIC FOCUS – 2010 AND BEYOND
AFFORDABLE, RELIABLE AND
CLEAN ENERGY MANDATE
These two pages illustrate how we provide our customers with energy that
is affordable, reliable and clean. You can see our strategies for modernizing
our regulated facilities and for maximizing diverse earnings from our
commercial businesses, which lead to enhanced financial strength.
Regulated Operations Commercial Businesses Financial Strength
STRATEGIC
FOCUS
ACTIONS Modernize
infrastructure
Maintain operational
excellence
Shape federal and
state policies;
achieve constructive
regulatory outcomes
Compete effectively
in Ohio
Grow renewables
and underpin with
long-term contracts;
shape federal and
state policies
Reinvest offshore
cash in international
businesses
Allocate and rotate
capital efficiently
to earn competitive
returns
Maintain a strong
balance sheet
Grow earnings
and dividends
Achieved nonfuel base-rate increase ■
settlements in North Carolina, South Carolina,
Ohio and Kentucky
Energy efficiency framework approved in Ohio, ■
North Carolina, South Carolina and Indiana
Deploying smart grid in Ohio in early 2010 ■
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 in three states
Acquired first solar project in early 2010 ■
Grew dividend approximately 4 percent ■
in 2009
Issued $3.75 billion of fixed-rate debt at an ■
average rate of 5.2 percent during 2009
Since 2008, issued more than $7 billion of ■
fixed-rate debt at attractive rates and terms,
and issued $600 million in equity through
DRIP and other internal plans
2009 and
Early 2010 Progress
2009 and
Early 2010 Progress
2009 and
Early 2010 Progress
Retire and replace ■
older fossil generat-
ing units with new,
cleaner-coal, lower-
emitting gas units
and renewable
energy to meet
future peak demand
Replace analog grid ■
with a digital smart
grid to increase
reliability and
energy efficiency,
and to reduce costs
Maintain the high ■
reliability of our
generation fleet and
distribution system
Improve customer ■
satisfaction
Aggressively ■
manage costs
Achieve timely and ■
constructive recov-
ery of investments,
and close the gap
between allowed
and earned returns
Leverage energy ■
efficiency frame-
work that allows us
to earn returns on
energy efficiency
investments, reduc-
ing the need for
new power plants
Achieve workable ■
federal legislation
to regulate carbon
emissions
Use Duke Energy ■
Retail Sales
defensively and
offensively to
mitigate impact of
customer switching
in Ohio
Continue to ■
optimize Midwest
coal and gas
generation assets
in the wholesale
market
Bring approximately ■
250 megawatts
(MW) of wind
energy on line
each year
Expand into solar ■
and biomass energy
Achieve and utilize ■
federal and state
tax incentives
Maintain earnings ■
diversity and steady
cash flows
Grow these busi- ■
nesses by investing
in projects that fit
our business model
and our return
expectations
Deploy capital ■
to maintain an
approximately
75 percent
regulated, 25 per-
cent commercial
business mix
Achieve appropriate ■
risk-adjusted
returns in our
commercial
businesses
Issue $400 million ■
in equity in 2010
from dividend
reinvestment plan
(DRIP) and other
internal plans
Maintain current ■
investment-grade
credit ratings
Maintain strong ■
liquidity
Achieve a long-term ■
adjusted diluted
earnings per share
(EPS) compound
annual growth rate
of 4 to 6 percent
off a base of 2009
adjusted diluted
EPS of $1.22
Achieve 2010 ■
adjusted diluted
EPS of $1.25 to
$1.30
Grow dividend at a ■
rate slower than the
growth in adjusted
diluted EPS
OUR STRATEGIC FOCUS
FOLDOUT