Duke Energy 2010 Annual Report Download - page 15

OUR PRIORITIES, PROGRESS, AND OUTLOOK
OUR
PRIORITIES
OUR
PROGRESS
OUR
OUTLOOK
OVERALL
Finalize merger with
Progress Energy
■Announced top-tier management team for
combined company
■Merger teams have begun initial
integration planning
■Plan to begin making state and federal
regulatory filings in first quarter 2011
■Targeting close of merger transaction by
end of 2011
Continue operational
performance of fleet
and grid
■Achieved record capacity factor for
nuclear fleet in 2010
■Achieved record generation levels for
nonregulated Midwest generation in 2010
■Continue focus on operational excellence
Aggressively manage
capital and operating and
maintenance costs
■Maintained relatively flat adjusted net
operating and maintenance costs1 from
2007-2010
■Modest increases to costs anticipated as
major construction projects come on line in
2011 and 2012
Grow adjusted diluted EPS
and the dividend
■Realized adjusted diluted EPS growth of
approximately 17 percent in 2010
■Increased quarterly dividend from
$0.24 per share to $0.245 per share
during 2010
■Delivered Total Shareholder Return of
9.5 percent during 2010
■Targeting 2011 adjusted diluted EPS range
of $1.35-$1.40
■Targeting a long-term dividend payout range
of 65 to 70 percent of adjusted diluted EPS
■Project a dividend increase in 2011
(subject to Board of Directors discretion
and approval)
Maintain balance sheet
strength
■Credit ratings affirmed in January 2011
■Issued over $285 million of equity through
internal plans during 2010
■Maintain current credit ratings
■Project no equity issuances through 2013
based on current business plan
REGULATED OPERATIONS
Obtain constructive
regulatory outcomes
■No significant regulatory outcomes were
reached during 2010
■Plan to file rate cases in up to three of
our regulated jurisdictions in 2011
Complete major construction
projects on budget and
on time
■Major construction projects are on time
and on budget, except for Edwardsport
■Expect to bring Buck combined-cycle plant
on line in 2011
■Work toward a constructive outcome with
the Edwardsport cost increase proceedings
Advance legislative agenda
to reduce regulatory lag
■Planning for legislative agendas ■Propose legislation to address regulatory lag
and the timely recovery of investments, such
as new nuclear
COMMERCIAL BUSINESSES
Position Midwest generation
business for the long term
■Filed a Market Rate Offer (MRO) in
November 2010, proposing generation
rates for Ohio customers in 2012 and
beyond; in February 2011, PUCO failed to
approve our MRO filing; we are currently
exploring options
■Achieve a constructive outcome for
generation pricing in Ohio
Strategically respond
to customer switching
pressures in Ohio
■Duke Energy Retail has retained
approximately 60 percent of Duke Energy
Ohio's switched customers
■Respond to additional customer
switching pressures in Ohio through
Duke Energy Retail
Strategically invest in the
renewable energy and
International businesses
■Grew the renewable generation portfolio by
over 250 megawatts during 2010
■Continue to evaluate investment
opportunities
1 Net of deferrals, cost recovery riders and special items
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