Progress Energy — Barclays Capital CEO Energy-Power Conference 2011
14 slides from Progress Energy's conference presentation, Sep 7, 2011
Slide 1: Barclays Capital CEO Energy-Power Conference
Duke Energy. BARCLAYS CAPITAL CEO ENERGY-POWER CONFERENCE September 7, 2011 Lynn Good Group Executive and Chief Financial Officer
Slide 2: Safe Harbor Statement
SAFE HARBOR SAFE HARBOR STATEMENT This document includes forward-looking statements within the meaning of Section 27A of the Secures Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements are based on managements beliefs and assumptions. These forwardJooking s
Slide 3: Safe Harbor (Cont'd)
SAFE HARBOR (CONT'D) REG G DISCLOSURE In addition, today's discussion includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our Investor Relations website at www.duke-energy.com
Slide 4: Key Initiatives: Meeting Industry Challenges
KEY INITIATIVES: MEETING INDUSTRY CHALLENGES aia Continued Economic Uncertainty Merger Approval Aging Infrastructure | Key Initiatives : Ohio ESP Position Agreement Duke Energy Environmental 4 for the Future Regulations Fleet Modernization Rising Energy Costs Carolinas Rate Cases Positioning Duke En
Slide 5: Utility Consolidation Driven by Industry Challenges
oon UTILITY CONSOLIDATION DRIVEN BY Bikey, INDUSTRY CHALLENGES ivers of Utility Consolidation = Competition for capital to fund major capital investments required to replace aging infrastructure and comply with increasingly stringent environmental regulations = Increasing customer rates in an uncert
Slide 6: Benefits of Duke Energy / Progress Energy Merger
BENEFITS OF DUKE ENERGY / PROGRESS ENERGY MERGER@==" Scale Benefits ™ Creates largest U.S. utility - 7 million customers, supported iin) by substantial, diversified regulated earnings and cash me flows A ™ Provides for reliable earnings and retums due to diversified generation and fuel sourcing in s
Slide 7: Status of Merger Filings
STATUS OF MERGER FILINGS (As of September 6, 2011) Progress on Stakeholder Key Milestones Approved | Sharehoier | = Shareholder meetings and votes August 23 Bees) ise-1 | = Met obligations of Hart-Scott-Rodino Act ee Rocca Connmicaions = Received approval of filings associated with certain radio lic
Slide 8: Advancing the Merger Approval Process
ADVANCING THE MERGER APPROVAL PROCESS PeBrciay. =|n September 2011, settlement agreements were entered into in North Carolina related to our proposed merger sc ‘Summary of North Carolina Merger Approval Settlement Office of Agreements NC Public Staff Regulatory Staff = Guarantee customers their allo
Slide 9: What's Next: Pending EPA Regulations Will Impact Generation
WHAT'S NEXT: PENDING EPA REGULATIONS puke WILL IMPACT GENERATION c 1 Major Regulations Duke Energy Domestic Generation Considerations for EPA Coal Generation Profile . iti i Coal Combustion . ‘Transtion/pestod must Be x TODAY - 16.7 GW POST MODERNIZATION’ - 15.0 GW reasonable to allow utilities Resi
Slide 10: Nearing Completion of Modernization Program
NEARING COMPLETION OF MODERNIZATION PROGRAM Pekneray. (As of June 30, 2011) BESET REA SINSIENE USFE&G Major Construction Projects! + 618 MW IGCC feoilty + Expacted in-sarvies in 2012 * Cost increase pending before the IURC Cliffside — Carolinas + 825 MW advanced clean-coal unit + Expected in-servies
Slide 11: Recovering Duke Energy Carolinas Modernization Investments
—————————————d RECOVERING DUKE ENERGY CAROLINAS Peektey, MODERNIZATION INVESTMENTS Retail revenue increase requested ~$646MM = ~$216 MM North Carolina Proposed rate base (1) $11.2B $4.1B Return on equity requested 11.5% EN Equity component of capital structure 53% (1) Total rate base as of December
Slide 12: Threading the Needle: Duke's Proposed ESP
eee THREADING THE NEEDLE TO SET COMPETITIVE AND Puke PREDICTABLE POWER PRICES: DUKE'S PROPOSED ESP 2012 ESP Duke's ESP Bifurcates Capacity Duke Fully Competitive Price Split and Energy Components Proposed ESP Model Traditional recovery of Competitively priced capacity (e.g., PIM iescetige || embedde
Slide 13: Progress on Earnings Objectives
Duke PROGRESS ON EARNINGS OBJECTIVES Peeitioy Adjusted Diluted EPS Primary Adjusted Segment EBI USFE&G V O&M costs (primarily due to storms) and less favorable weather ‘A Modernization program COMMERCIAL POWER Y Ohio customer switching, net of Duke Energy Retail A Midwest gas results INTERNATIONAL A
Slide 14: Duke Energy
Duke Energy: Duke Energy - Barclays Capital CEO Energy-Power Conference ~ September 2011
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