Duke Energy Corporation (holding Company) · NYSE:DUK

Duke Energy Corporation (holding Company) — Corporate Update (September 2010)

11 slides from Duke Energy Corporation (holding Company)'s corporate update, Sep 20, 2010

1. Slide 1: Edwardsport Project Settlement Agreement

   Edwardsport IGCC Project Edwardsport Project Jim Rogers Jim Turner Chairman, President Group Executive; President Settlement Agreement and Chief Executive and Chief Operating Officer, Officer U.S. Franchised Electric & Gas September 20, 2010

2. Slide 2: Safe Harbor Statement

   SAFE HARBOR STATEMENT Some of the statements in this document concerning future company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking statements, and you should refer to the additiona

3. Slide 3: Edwardsport Project Overview and Benefits

   Edwardsport Project Overview Edwardsport Project Benefits  618 MW Integrated Gasification Combined Cycle (IGCC) facility Significant component of our expected in-service in 2012 modernization strategy:  Replaces existing 60+ year old units with a state-of-the-art facility  Project status (as of

4. Slide 4: Fleet Modernization Strategy – Duke Energy Indiana

   Fleet Modernization Strategy – Duke Energy Indiana In-Service Dates of Indiana’s Generation Fleet Indiana Modernization (through 2020) Owned Capacity (MW) Capacity (MW) 4,000 1,200 3,500 1,000 Remaining 3,000 Unscrubbed Units to be 800 Evaluated 2,500 for Retirement/ 2,000 600 Controls 1,500 Legacy

5. Slide 5: Recent Events – Edwardsport

   Recent Events – Edwardsport April 16, 2010: Duke Energy Indiana filed updated cost estimate of $2.88 billion with the Indiana Regulatory Commission (IURC)  Primarily due to increases in project scope and design evolution  Included approximately $160 million AFUDC and remaining contingency of $126

6. Slide 6: Summary of Edwardsport Agreement

   Summary of Edwardsport Agreement  Caps level of project Edwardsport Project Cost Summary costs to be passed on to ($ in Millions) Hard Cap - $2.975B customers at Current Cost Estimate - $2.88B $2.975 billion $120 Soft Cap - $2.76B  Cap can be increased Hard Cap for force majeure events and increas

7. Slide 7: Summary of Edwardsport Agreement (cont'd)

   Summary of Edwardsport Agreement (cont’d)  CWIP Rider continues up to $2.975 billion, providing Average Customer Rate Impact * CWIP timely cost recovery and rate increase phase-in Rider  Costs above $2.76 billion collected under the rider are subject to refund (1.8%) (1.2%)  Agreement lowers plan

8. Slide 8: Next Steps

   Next Steps  Settlement agreement subject to IURC approval IGCC Subdocket Upcoming Events  Hearing scheduled for late November 2010 IURC Procedural Schedule Date  Order from IURC expected in early Settling parties file testimony October 6th 2011 supporting settlement agreement Parties opposing set

9. Slide 9: Appendix

   APPENDIX 9 Duke Energy – Edwardsport Project Settlement Agreement – September 2010

10. Slide 10: Summary of Settlement Agreement's Financial Impact

    Summary of Settlement Agreement’s Financial Impact ($ in Millions) Earnings Cash Flow 2010 2011 2012 2010 2011 2012 Estimated pretax impact [Favorable/(Unfavorable)] Reduction in depreciation expense - - - - ($35) ($35) Waiver of deferred income tax incentive (1) - ($25) ($25) - ($25) ($25) Reductio

11. Slide 11: Duke Energy – Edwardsport Project Settlement Agreement – September 2010

    11 Duke Energy – Edwardsport Project Settlement Agreement – September 2010

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