Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Duke Energy Analyst Conference 2003
12 slides from Duke Energy Corporation (Holding Company)'s conference presentation, May 30, 2003
Slide 1: Franchised Electric
Franchised Electric Ruth G. Shaw President & CEO
Slide 2: Disclosures
Disclosures Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties, including, but not limited to, changes in the utility regulatory environment, the impact of competition from other ene
Slide 3: Duke Power Service Area
Duke Power Service Area VA NC • 22,000 sq. miles SC • 2 million GA customers • 10,500 employees • 17,660 MW net Charlotte generation • 13,300 miles of transmission lines Generation Assets Nuclear 5,020 MW • 94,000 miles of Coal-fired 7,699 MW distribution lines Hydro 2,806 MW Combustion Turbine 2,13
Slide 4: Strategic Focus
Strategic Focus • Superior operational performance • Asset optimization • Industry leadership in customer service and satisfaction • Optimal wholesale market participation • Retail profit growth 4
Slide 5: Financial Performance
Financial Performance • Solid earnings • Solid return on capital employed • Source of free cash flow EBIT ($ in millions) 2001 2002 2003E $1,631 $1,608 $1,600 5
Slide 6: Regulatory Environment
Regulatory Environment • Stable state regulatory environment NC Allowed Return on Equity = 12.50%; last rate case 1991 SC Allowed Return on Equity = 12.25%; last rate case 1991 • Strong competitive position Retail rates 21% below the national average • Residential 17.1% below national average
Slide 7: Market Changes and Forecasts
Market Changes and Forecasts • Favorable economy in the Carolinas offsets industrial sales decline Personal income, population and non-manufacturing GDP tracks or outpaces national rates Manufacturing GDP expected to rebound relative to national GDP over next five years • Steady sales growth • N
Slide 8: Balanced Portfolio
Balanced Portfolio GWh Sales by Segment 1993 Sales 2003E Sales Wholesale Wholesale 10,447 Residential 8,490 Residential 19,465 Textile 24,080 8,195 Textile 11,954 Industrial 17,537 Commercial Industrial 16,904 Commercial 16,244 23,982 TOTAL 75,014 TOTAL 82,284 8
Slide 9: Generation Assets and Performance
Generation Assets and Performance Capacity / Generation Mix Combustion Turbine 2,135 MW Coal-fired Hydro 7,699 MW 2,806 MW Nuclear 5,020 MW Performance Year-end 2002 1st quarter 2003 Nuclear capacity factor 95.20% 97.40% Fossil / hydro commercial availability index 98.27% 97.02% 9
Slide 10: Operational Performance
Operational Performance • Operating costs top quartile in our peer group (US electric utilities with over 600,000 customers and nuclear assets) • Power delivery and customer performance Electric service reliability • Reliability rate of 99.97% • 23% improvement in industry measures over the past s
Slide 11: Capital Expenditures
Capital Expenditures Total Cap Ex ($ in millions) 2001 2002 2003E $1,115 $1,269 $1,200 • Customer additions • Capacity expansion • Environmental improvements • Asset life extension • Nuclear fuel • Maintenance, reliability and technology investments 11
Slide 12: Duke Power – A Blue Chip Franchise
Duke Power – A Blue Chip Franchise • Low-cost asset base • Superior operations • Competitive rates • Robust franchise • Market opportunities 12