Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Duke Energy Ohio — Corporate Update (November 2010)
16 slides from Duke Energy Corporation (Holding Company)'s corporate update, Nov 18, 2010
Slide 1: Duke Energy Ohio MRO Filing
DUKE ENERGY OHIO Jim Rogers Julie Janson MRO FILING Chairman, President and President, Duke Energy Ohio Chief Executive Officer and Duke Energy Kentucky November 18, 2010
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
Slide 3: Ohio's Transition to Competition
Ohio’s Transition to Competition Electric Transition Plan Rate Stabilization Plan Electric Security Plan 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Public Utilities Commission of Ohio Senate Bill 3 Enacted Mission Senate Bill 221 Enacted “Our mission is to assure all Deregulati
Slide 4: Ohio Framework Results in Challenges for Utilities
Ohio Framework Results in Challenges for Utilities (1.8%) DE Ohio Generation Providers* Utility is the “Provider of Last Resort” and is obligated to serve Approx. 75% Provider of Last customers that choose the Standard Service Offer price 36% provided by DE Ohio or Resort Utility is not adequately c
Slide 5: Electric Standard Service Offer Options Available Under Ohio SB 221
Electric Standard Service Offer Options Available Under Ohio SB 221 Negotiated ESP ESP With Auction Market Rate Offer (MRO) Determined via negotiation, Determined via auction process During transition period*, pricing settlement, or litigation based upon blend of most recent Generation Overall ESP p
Slide 6: Strategic Advantages of the MRO Option
Strategic Advantages of the MRO Option Continues the development of the competitive Zimmer Generating Station environment in Ohio Competitive bidding process should result in In-Service 1991 prices which are fair and competitive Staggered auction procurement mitigates price volatility for customers
Slide 7: MRO Pricing During Proposed "Blending Period"
MRO Pricing During Proposed “Blending Period” Under SB 221, utilities filing an MRO that owned generation as of July 31, 2008 must transition to full market prices over a Duke Energy Ohio’s Proposed Blending Period “blending period” Current ESP Price Blending period of up to 10 years; at MRO Blend P
Slide 8: Summary
Summary Duke Energy Ohio’s MRO application Customer Meets statutory requirements Rate Stability Results in competitive rates to customers Removes asymmetrical earnings challenges PUCO Increases long-term clarity around Objectives generation portfolio Utility Financial Competition Integrity 8 Duke En
Slide 9: Appendix
APPENDIX Duke Energy Ohio MRO Filing – November 18, 2010
Slide 10: Proposed MRO Competitive Auction Process
Proposed MRO Competitive Auction Process Delivery Period Begins Auction Contract # Tranches Date Duration to Procure Jan 2012 June 2013 June 2014 June 2015 June 2016 June 2017 June 2018 June 2019 2011 17-Months 10 10 2012 2 Years 20 20 1 Year 27 27 2013 2 Years 27 27 3 Years 26 26 1 Year 16 16 2014
Slide 11: MRO Filing Must Meet Statutory Requirements
MRO Filing Must Meet Statutory Requirements Statutory Requirements Competitive bidding process provides for Open, fair and transparent competitive solicitation Clear product definition Standardized bid evaluation Independent third party oversight Evaluation of the submitted bids prior to selection o
Slide 12: Procedural Schedule for MRO Application
Procedural Schedule for MRO Application Milestone Date Technical Conference November 22, 2010 Prehearing Conference December 13, 2010 Intervenor Testimony Due December 21, 2010 Staff Testimony Due December 28, 2010 Evidentiary Hearing January 4, 2011 Note – the above procedural schedule was establis
Slide 13: Duke Energy Ohio Generation Profile
Duke Energy Ohio Generation Profile Duke Energy Ohio Native-Load Generation(1) Scrubbed Coal-Fired Generation Unscrubbed Coal-Fired Generation Stuart (MISO)* 2,340 MW Beckjord (MISO)* 1,336 MW Type: 4 Coal Units (912 Net MW) Type: 6 Coal Units, 4 CT Units (1,074 Net MW) Fuel: Coal Fuel: Coal, Oil Ow
Slide 14: Overview of Current Duke Energy Ohio ESP
Overview of Current Duke Energy Ohio ESP Public Utility Commission of Ohio (PUCO) Order issued December 17, 2008 approving Duke Energy Ohio’s ESP 3-year Plan: Jan. 1, 2009 to Dec. 31, 2011 Riders Avoidable Unavoidable Maintains riders/trackers for fuel and purchased X Base Generation power, environm
Slide 15: Proposed MRO Rider Summary
Proposed MRO Rider Summary Legend Current ESP Riders Proposed MRO Riders Avoidable riders Generation Portion of Bills Generation Portion of Bills Unavoidable riders Base Generation Generation (3) Fuel & Purchased Power Market Rate Offer Notes (1) Conditionally avoidable to non- System Reliability (1
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