Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Investor Presentation (June 2005)
15 slides from Duke Energy Corporation (Holding Company)'s investor presentation, Jun 22, 2005
Slide 1: Investor Chat Series
Investor Chat Series June 22, 2005 Ruth G. Shaw Picture(s) here President and Chief Executive Officer Duke Power
Slide 2: Safe Harbor Statement
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 This document contains forward looking information which is subject to risks and uncertainties that could cause actual results to be different than those contemplated, including, but not limited to, changes in state, federal o
Slide 3: Duke Power Service Territory
Duke Power Service Territory Eden Walnut Cove 77 85 Winston-Salem Greensboro Burlington 40 High Point Chapel Hill Durham Lenoir Morganton Salisbury Hickory BUCK North Carolina Asheville MCGUIRE 85 Shelby Brevard Gastonia h CATAWBACharlotte Greenville Rock Hill Spartanburg North Carolina OCONEE South
Slide 4: Duke Power Strategies Deliver Results
Duke Power Strategies Deliver Results ● Strategies ● Maximize profitable revenue from asset base ● Drive operational excellence in performance and cost management ● Maintain effective stakeholder partnerships ● Results ● Stable earnings and strong cash flows from operations ● EBIT growth from 2004 b
Slide 5: Maximize Profitable Revenue from Asset Base – Service Territory Growth
Maximize Profitable Revenue from Asset Base – Service Territory Growth ● Leading indicators showing overall 1.5% MWh sales growth, with increases in all major sectors ● Adding 40,000 – 60,000 new customers annually ● Manufacturing sector growth for 24 consecutive months – diversity increasing 5
Slide 6: Maximize Profitable Revenue from Asset Base – Economic Development Efforts Paying Off
Maximize Profitable Revenue from Asset Base – Economic Development Efforts Paying Off Visit our website: Merck Corporation www.dukepower.com/ecdev Dell Citigroup 900 New Jobs 200 New Jobs 1700 New Jobs Cree Eden 300 New Jobs Walnut Cove Unilin Decor 77 85 330 New Jobs Winston-Salem Greensboro Resear
Slide 7: Maximize Profitable Revenue from Asset Base – Competitive Rates and Fuel Costs
Maximize Profitable Revenue from Asset Base – Competitive Rates and Fuel Costs Duke Power Rates vs National Averages Attractive Duke rates – 10 21% below national 8 Cents / KWh average – encourage 6 growth 4 2 0 Total Retail Residential Commercial Industrial South Carolina North Carolina National Av
Slide 8: Maximize Profitable Revenue from Asset Base – Growth Requires Additional Capacity
Maximize Profitable Revenue from Asset Base – Growth Requires Additional Capacity 2004 Integrated Resource Plan Additional Resources 26,000 26,000 Needed for 17% Existing 24,000 24,000 Demand-Side 22,000 Management 22,000 Load Forecast 20,000 20,000 Megaw atts 18,000 18,000 16,000 Existing Purchase
Slide 9: Maximize Profitable Revenue from Asset Base – Generation Additions
Maximize Profitable Revenue from Asset Base – Generation Additions Type Size Timeframe Potential Investment Coal 800 MW 2010s $1.1 billion Coal 800 MW TBD based on load $900 million growth & nuclear plant construction schedule Combined cycle 600 MW TBD based on RFP $350 million – gas/oil results Nuc
Slide 10: Fuel Diversity Adds to Duke's Competitive Advantages
Drive Operational Excellence in Performance and Cost - Fuel Diversity Adds to Duke’s Competitive Advantages Supply Mix ● Low-cost generation for (capacity) 2 the wholesale market 100 90 14 20 ● Provides an opportunity 80 16 7 as others address 70 Other 20 Percentage 60 Gas/Oil environmental regulato
Slide 11: Duke Power's Operations Instill Confidence
Drive Operational Excellence in Performance and Cost - Duke Power’s Operations Instill Confidence PERFORMANCE ● Strong productivity and Non-Fuel O&M per MWH Down 7% safety philosophy Sold since 1999 Nuclear capacity factor 90.2% ● Superior generation performance Fossil-hydro commercial 98.3% availab
Slide 12: Major Operational Uncertainties Addressed
Drive Operational Excellence in Performance and Cost - Major Operational Uncertainties Addressed ● Nuclear plants relicensed – stations to operate into the 2030s and 2040s ● Fossil environmental upgrades ● Completed $450 million project to reduce NOx emissions at Belews Creek by 80% ● At work on $1.
Slide 13: Win-Win Regulatory Solutions
Maintain Effective Stakeholder Partnerships - Win-Win Regulatory Solutions ● Track record of successful relationships with NC/SC Commissions ● NC Clean Smokestacks ● Bulk Power Marketing profit sharing ● Ongoing collaborative regulatory efforts ● Hydro relicensing ● Transmission planning 13
Slide 14: Future Regulatory Solutions
Maintain Effective Stakeholder Partnerships - Future Regulatory Solutions ● Duke has a comprehensive generation and regulatory strategy for “Post 2007” addressing: ● Total costs to customers ● Long-term needs for new generation ● Incentives for new technology 14
Slide 15: Duke Power – Uniquely Positioned to Deliver
Duke Power – Uniquely Positioned to Deliver ● Right region with good location, solid growth and a favorable business climate ● Right portfolio positioned to excel in diverse market conditions ● Right capabilities to translate new assets into competitive opportunities ● Right plans to deliver long-te