Duke Energy 2013 Annual Report Download - page 9

2013 ANNUAL REPORT
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7
BRIDGING THE PAST AND FUTURE
The diligence, achievements and lessons
learned from the past give us confidence
to plan for a complex, uncertain future. As
we consider the trends reshaping the utility
industr y, here are three strategic responses
that light our way forward.
Leading with productivity and new
efficiencies: Since 20 07, U.S. per capita
electricity use has been declining because
of more energy-efficient building codes,
appliances and lighting systems; the 2007-
2009 economic recession; utility-sponsored
efficiency programs; and the continued
focus on cutting energy expenses in homes
and businesses. At the same time, utilities
face additional costs from upgrading aging
infrastructure and complying with new
regulations for plant emissions, nuclear
safety and grid security.
Duke Energy’s response to this squeeze
of lower growth and higher costs is to
redouble our efforts to be efficient and
productive. This was part of the rationale
behind the 2012 merger. Since then, we
have consolidated the corporate centers,
reducing costs by approximately 20 percent.
We’re also integrating systems and sharing
resources across our operations to achieve
additional savings.
With our larger scale, we’re achieving
significant supply chain benefits as
we renegotiate contracts for materials,
equipment and services.
More than ever, we view cost management
and financial discipline as a strategic priority
that demands rigorous attention and new
approaches throughout the organization.
In visiting work sites, from nuclear maintenance
teams to the Toddville oil reclamation shop,
I love seeing the “ownership mentality” –
the daily commitment to managing resources
to hold down the prices our customers pay
and to support the company’s profitability
goals. Increasingly, employees closest to the
work are identifying more efficient ways to
operate our business.
As a result of these and other efforts, we
plan to hold our nonfuel operating and
maintenance expenses flat through 2016,
offsetting inflation and emerging costs.
Achieving signicant benets for both our customers and investors was a
over ve years for our Carolinas customers.
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Alec Sheaff and Blain Atkins at our Fuels and Systems Optimization oor • Charlotte, North Carolina