Duke Energy 2009 Annual Report Download - page 6

Download and view the complete annual report

Please find page 6 of the 2009 Duke Energy annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 21

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21

DUKE ENERGY CORPORATION / 2009 ANNUAL REPORT 5
CHAIRMAN’S LETTER
TO STAKEHOLDERS
We expect Congress or the U.S. Environmental Protection
Agency (EPA) to regulate carbon emissions as early as 2011.
We also expect an onslaught of new environmental regulations
on coal — not only for carbon emissions, but also for hazardous
air pollutants, ash ponds, the production of coal from moun-
taintop removal and water discharge. These new rules could
require us to retrofit or retire thousands of megawatts (MW) of
coal-fired generation, beyond what we were already planning.
We make the best decisions when we listen carefully to
our stakeholders, bring our expertise to bear on critical political,
economic and environmental issues, and stay focused on
our mission. Engaging constructively in a dialogue will help
protect the interests of both our customers and our investors.
A BALANCING ACT
We must act today to ensure an affordable, reliable and
cleaner supply of energy for our customers in the future.
Between 2010 and 2012, we expect to invest between
$14 billion and $15 billion to modernize our aging regulated
generation, transmission and distribution system, maintain
our existing facilities, and sustain earnings 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.
JAMES E. ROGERS
Chairman, President and
Chief Executive Officer
Dear fellow investors, customers, employees and all others who have a vested interest in our
success — including our partners, suppliers, policymakers, regulators and communities:
Flipping a light switch is simple. Our mission of providing our customers
with affordable, reliable and cleaner energy, 24/7, is not.
Our industry is capital-intensive. Our assets are built to last for decades to
meet the long-term needs of our customers. We must make billion-dollar investment
decisions today to build large-scale plants that will operate half a century or more.
Today’s uncertainties around new environmental regulations and climate change
legislation make these decisions even more difficult.