Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Corporate Update (November 2002)
13 slides from Duke Energy Corporation (Holding Company)'s corporate update, November 2002
Slide 1: Monthly Chat Series: Franchised Electric
Monthly Chat Series Franchised Electric November 2002 Bill Coley President Duke Power
Slide 2: Duke Power Service Area
Duke Power Service Area Monthly Chat VA NC ● 22,000 sq. miles SC GA ● 2.1 million customers ● 10,300 employees ● 19,900 MW of NC generating capacity Charlotte ● 12,700 miles of transmission lines ● 66,200 miles of SC distribution lines Nuclear Facilities 7,516 MW Fossil Facilities 7,535 MW Hydro Fac
Slide 3: Earnings History
Earnings History Monthly Chat Operating Revenues and EBIT Sales, GWh ($ in millions) $5,000 100,000 $4,000 80,000 $3,000 60,000 $2,000 40,000 $1,000 20,000 $0 0 1997 1998 1999* 2000 2001 1997 1998 1999 2000 2001 Revenues EBIT * EBIT for 1999 excludes the $800 million injuries and damages reserve. 3
Slide 4: Operational Excellence
Operational Excellence Monthly Chat ● Nuclear Operations ● Nuclear utilization averaged 91% from 1999 to 2001 ● 2002 nuclear utilization average is 95% ● Oconee license renewed for additional 20 years through 2033/34 ● McGuire and Catawba license renewals expected in 2003 ● Oconee reactor vessel hea
Slide 5: Customer Satisfaction
Duke Power Customer Satisfaction Monthly Chat ● Duke Power ranked #1 in the country for customer satisfaction among large commercial and industrial customers by TQS Research ● Residential customers have consistently ranked Duke Power number one or two in customer satisfaction every year since 1994 (
Slide 6: Specific Strategies
Duke Power Specific Strategies Monthly Chat ● Achieve Best-In-Class Performance ● Manage Our Assets to Add Value to Our Shareholders ● Offer Our Customers Additional Value-for-Value Services 6
Slide 7: Issues 2003 and Beyond
Duke Power Issues 2003 and Beyond Monthly Chat ● Service area drought ● Revenue impacts of weather ● Increasing customer expectations ● Continuing decline in textile industry ● Timing of economic recovery ● Regulatory changes 7
Slide 8: Retail Sales Trends
Retail Sales Trends Monthly Chat 78,000 1.7% (% change from prior year) 77,000 76,000 75,000 1.9% 1.8% Billed GWh Sales 74,000 1.8% 1.8% 73,000 - 1.7% - 0.1% 72,000 71,000 2.6% 70,000 69,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 1997 - 2001 = Temperature Corrected Actual 2002 - 2005 = Project
Slide 9: O&M Cost Reduction
O&M Cost Reduction Monthly Chat $1,300 2,500,000 O&M Expenses Retail Customers $1,150 2,250,000 Average Number of Retail Customers $1,000 2,000,000 O&M Expenses ($ in millions) $850 1,750,000 $700 1,500,000 $550 1,250,000 $400 1,000,000 2000 2001 2002E 2003E 2004E 2005E 9
Slide 10: Capital Expenditures
Capital Expenditures Monthly Chat $1,500 $1,200 $900 $600 $300 $0 1999 2000 2001 2002E 2003E 10
Slide 11: Grant Thornton Audit
Grant Thornton Audit Monthly Chat ● Duke Power filed proposed settlements at both North and South Carolina Utility Commissions ● North Carolina accepted the settlement on October 29 ● South Carolina accepted the settlement on November 19 ● Duke Power will take a $19 million charge in the fourth quar
Slide 12: NC Clean Air Legislation
NC Clean Air Legislation Monthly Chat ● Legislation passed in June 2002 freezes rates for five years until 2007 ● Represents a “win-win” outcome providing rate stability for customers and earnings predictability for investors ● Approximately $1.5 billion will be invested to reduce coal plant emissio
Slide 13: Question & Answer Session
Monthly Chat Question & Answer Series Session November 2002