Duke Energy 2010 Annual Report Download

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INVESTING
FOR OUR FUTURE.
DELIVERING
TODAY.
2010 ANNUAL REPORT
AND FORM 10-K

Table of contents

  • Page 1
    2010 ANNUAL REPORT AND FORM 10-K DELIVERING TODAY. INVESTING FOR OUR FUTURE.

  • Page 2
    ... 18 Investor Information Inside back cover DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT PROFILE Headquartered in Charlotte, N.C., Duke Energy Corporation is one of the largest electric power holding companies in the United States. A Fortune 500 company, Duke Energy is listed on the New York Stock...

  • Page 3
    ... interest in our success - including our partners, suppliers, policymakers, regulators and communities: I n a changing world, our mission is constant: Produce and deliver affordable, reliable and clean energy that benefits our customers, investors, employees and communities. To succeed in this...

  • Page 4
    ... first year of the merger 1 Strong credit ratings, balance sheet, cash flow, and dividend Long-term earnings growth target of 4 to 6 percent 1 Expanded career growth opportunities â- â- â- OH IN KY NC SC DIVERSE SERVICE TERRITORIES KEY MERGER STATISTICS Duke Energy Progress Energy Combined...

  • Page 5
    ...Our shareholders enjoyed a total return (including dividends and the change in stock price) of 9.5 percent in 0 2010, outperforming the Philadelphia Utility Index, which returned 5.7 percent. Longer term, too, Duke Energy has -15 outperformed the utility index, with cumulative three-year Duke Energy...

  • Page 6
    ... Bills and Average Rates Report, June 30, 2010. Reliable Our customers expect us to deliver reliable energy. Today's investments to modernize our grid will increase the reliable delivery of energy in the future. The new power plants we are building today will replace older, less efficient ones. Our...

  • Page 7
    ... fifth year in a row. You can read about our sustainability plan on 2,000 Page 6 of this report. Our 2010|2011 Sustainability Report, available at www.duke-energy.com, has more details. 1,500 Indiana Modernization INVESTING FOR OUR FUTURE: MODERNIZATION STRATEGY 1,000 500 Duke Energy is making...

  • Page 8
    ... of our many stakeholders keeps us in business â- SHAREHOLDER RETURN: Outperform our peers in total shareholder return, annually and over a three-year period, as measured by the Philadelphia Utility Index To learn more, see our 2010|2011 Sustainability Report available on www.duke-energy.com.

  • Page 9
    ... in the long-term build-out of a digital two-way communications network along the power grid. Once complete, customers will be able to better manage their energy usage and save money. All these modernization projects are creating jobs in our communities. DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 10
    ... electric rates had switched to other retail suppliers who offered generation at lower prices. In the current Ohio regulatory framework, provisions in place do not allow utilities to adequately recover their investments, whether in existing assets, new power plants to meet future customer demand...

  • Page 11
    ... and inspired many of our partners at jointlyowned facilities to embrace the program as well. Duke Energy's Gina Whittle, Ron Gill and Donald Dickinson (from left to right) taking a "fresh eyes" look at practices in our W.M. Zimmer coal station in Ohio. DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 12
    ... efficiencies. A digital meter is just one part of a smart-grid system. With digital meters and energy management programs, customers benefit from more efficient operations as well as more information to help them manage their energy use and costs. DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 13
    ... which Duke Energy is a board member, launched GoElectricDrive.com - an online resource providing a wealth of plug-in electric vehicle information. The site includes information about environmental benefits, charging infrastructure, purchase incentives, DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 14
    ...our customers, investors, employees, and communities. We will remain sharply focused on these objectives and continue to deliver results today, while investing for our future. James E. Rogers Chairman, President and Chief Executive Officer March 4, 2011 DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 15
    ...lag â- No significant regulatory outcomes were reached during 2010 Major construction projects are on time and on budget, except for Edwardsport â- Plan to file rate cases in up to three of our regulated jurisdictions in 2011 Expect to bring Buck combined-cycle plant on line in 2011 Work toward...

  • Page 16
    ... Chief 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 Philip R. (Phil) Sharp President Resources for the Future Member, Audit Committee, Nuclear Oversight Committee...

  • Page 17
    ... Corporate Secretary From left to right: Rick Haviland, Jennifer Weber, Brett Carter, Roberta Bowman, Marc Manly, Lynn Good, Keith Trent, Jim Rogers, Dhiaa Jamil, Catherine Heigel, David Mohler, Gianna Manes, Bill Tyndall, Julie Janson and Doug Esamann DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 18
    ... manages power plants, primarily located in the Midwest, and a renewable energy portfolio. Commercial Power's subsidiary, Duke Energy Retail, serves retail electric customers in Ohio with generation and other energy services at competitive rates. Commercial Power also includes Duke Energy Generation...

  • Page 19
    ...their respective shareholders. Duke Energy and Progress Energy urge investors and shareholders to read the joint proxy statement/prospectus regarding the proposed merger when it becomes available, as well as other documents filed with the SEC, because they will contain important information. You may...

  • Page 20
    ... other impairments Voluntary retirement plan & office consolidation costs Costs to achieve the Cinergy merger Litigation reserve Asset sales Mark-to-market impact of economic hedges Total adjusted EPS impact Pre-Tax Amount $(660) (172) (27) (26) 248 33 DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 21
    ..., 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. Adjusted Segment EBIT for 2009 and 2010 Duke Energy's 2010 Annual Report includes...

  • Page 22
    ... for future periods, 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. Dividend Payout Ratio Duke Energy's 2010 Annual Report includes...

  • Page 23
    ... costs target. (c) Presented as a special item for purposes of calculating adjusted diluted earnings per share. (d) Primarily represents expenses to be deferred or recovered through rate riders (e.g., impact of regulatory deferrals, reagents, etc.). DUKE ENERGY CORPORATION / 2010 ANNUAL REPORT

  • Page 24
    DUKE ENERGY CORPORATION INVESTOR INFORMATION Annual Meeting The 2011 Annual Meeting of Duke Energy Shareholders will be: Date: Time: Place: Thursday, May 5, 2011 10 a.m. O.J. Miller Auditorium Energy Center 526 South Church Street Charlotte, NC 28202 Website Addresses Corporate home page: www.duke-...

  • Page 25
    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...