Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Investor Day (2013)
19 slides from Duke Energy Corporation (Holding Company)'s investor day presentation, 2013
Slide 1: Analyst Meeting 2013: Regulated Utilities
Analyst Meeting 2013 Regulated Utilities Lloyd Yates, Executive VP, Regulated Utilities
Slide 2: Key takeaways
Key takeaways – Poised to recover fleet modernization investments in current rate cases that will drive near-term earnings growth – Operate in constructive regulatory jurisdictions with competitive customer rates – Focused on initiatives to reduce regulatory lag in a low load growth environment 33 |
Slide 3: Recovering our investments
Recovering our investments Amount of Annual Jurisdiction 2012 2013 2014 Revenue Increase PEC – North Carolina Filed Oct. 2012 $359 Million DEC – North Carolina Filed Feb. 2013 $446 Million DEC – South Carolina File Mar. 2013 TBD PEC – South Carolina Under evaluation TBD Ohio – Electric Dist’n. Filed
Slide 4: Overview of Progress Carolinas North Carolina rate case
Overview of Progress Carolinas North Carolina rate case Major Components of Filing Rate Case Drivers – On October 12, Progress Energy Carolinas filed a rate case with the North Carolina Utilities 13% Commission (NCUC) to request an average 11% net increase in retail revenues, or ~$359 million (1) 15
Slide 5: Overview of Duke Carolinas North Carolina rate case
Overview of Duke Carolinas North Carolina rate case Major Components of Filing Rate Case Drivers –On February 4, Duke Energy Carolinas filed a rate case with the North Carolina Utilities 7% Commission (NCUC) to request an average 9.7% net increase in retail revenues, or ~$446 million –The filing is
Slide 6: Overview of Ohio rate cases
Overview of Ohio rate cases Rate Case Highlights Electric Distribution Gas Distribution Retail revenue increase requested ~$87 million (5.1%) ~$45 million (8.1%) Proposed rate base ~$1.1 billion ~$900 million Return on equity requested 10.6% 10.6% Equity component of capital structure 53% 53% Hearin
Slide 7: Duke Energy Ohio’s cost-based capacity mechanism
Duke Energy Ohio’s cost-based capacity mechanism Cost-Based Capacity Filing – In August 2012, Duke Energy Ohio filed a request with the Public Utilities Commission of Ohio for approval to recover $728 million of capacity costs. – Filing is consistent with new state, cost-based compensation mechanism
Slide 8: Crystal River 3 regulatory update
Crystal River 3 regulatory update – The Florida Commission will review the retirement decision and the acceptance of the mediator’s proposal – Regulatory review schedule: Date Company files testimony March 18 Intervenors file testimony May 10 Commission Staff files testimony May 17 Evidentiary heari
Slide 9: Operating in constructive regulated jurisdictions
Operating in constructive regulated jurisdictions Percent of Total Rate Base by RRA Regulatory Ranking North Carolina Regulatory Research Associates (RRA) ranking of Utility Commissions All Above Average Other Florida Average Indiana ~80% of USFE&G’s rate base is in above average regulatory jurisdic
Slide 10: Balanced and diversified customer mix
Balanced and diversified customer mix (1) By Region USFE&G Energy Sales (MWh) 5% 11% 16% 8% Wholesale 23% 28% 13% 39% Residential Industrial 33% 30% 31% 22% 48% 31% 30% Commercial 32% Carolinas Florida Midwest Residential Commercial Industrial Wholesale (1) 2012 energy sales (MWh), by customer class
Slide 11: Competitive customer rates
Competitive customer rates Residential Commercial Industrial (cents per kWh) (cents per kWh) (cents per kWh) National Average (12.2) 13.0 11.9 National Average (10.3) 12.1 10.2 10.2 10.3 10.1 9.5 9.7 8.5 8.6 8.6 9.0 9.0 National Average (6.6) 7.5 7.7 7.8 6.4 6.6 6.6 6.8 5.7 6.1 5.1 Kentucky Ohio Ohi
Slide 12: Strong commitment to economic development
Strong commitment to economic development – 2012 economic development activities attracted $3.5 billion investments representing more than 13,000 jobs – Site Selection magazine named Duke as a “Top 10 Best” utility economic development program for the past 14 years – Site Selection magazine ranked a
Slide 13: Exploring new initiatives to reduce regulatory lag
Duke Energy exploring new legislative and regulatory initiatives to reduce regulatory lag Transforming industry necessitates new regulatory mechanisms 44 | Analyst Meeting 2013
Slide 14: Key takeaways
Key takeaways – Poised to recover fleet modernization investments in current rate cases that will drive near-term earnings growth – Operates in constructive regulatory jurisdictions with competitive customer rates – Focused on initiatives to reduce regulatory lag in a low load growth environment 45
Slide 15: Appendix materials
Appendix materials A-1 | Analyst Meeting 2013
Slide 16: Overview of state commissions
Overview of state commissions (as of February 22, 2013) North Carolina South Carolina Florida Indiana Ohio Kentucky Number 7 commissioners 7 commissioners 5 5 commissioners 5 3 commissioners commissioners commissioners Term 8-year terms 4-year terms 4-year terms 4-year terms 5-year terms 4-year term
Slide 17: Current rate information
Current rate information (as of February 22, 2013 unless otherwise noted) North South Ohio Kentucky Florida Indiana Carolina Carolina Electric Gas Electric Gas Retail Rate Base $14.6B (1) (DEC) $9.4B (2) $5.5B (3) $1.3B (4) $900M $600M (5) $200M (6) (12/31/2012) $7.2B (1) (PEC) Wholesale Rate Base $
Slide 18: Current rate information, cont.
Current rate information, cont. (as of February 22, 2013) North South Ohio Kentucky Carolina Carolina Florida Indiana Electric Gas Electric Gas Notice of Intent Yes Yes Yes Yes Yes Yes Yes Yes Required? Notice Period 30 Days 30 Days 30 Days Varies 30 Days 30 Days 28 Days 28 Days Partially Projected
Slide 19: Regulatory calendar
Regulatory calendar (as of February 22, 2013) CAROLINAS OHIO INDIANA Progress Energy Carolinas Duke Energy Carolinas Capacity Cost Recovery Electric Distribution Case Gas Distribution Case IGCC-9 Tracker IGCC-10 Tracker NC Rate Case NC Rate Case Docket 12-2400-EL-UNC Docket 12-1682-EL-AIR Docket 12-