Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Investor Day (2013)
18 slides from Duke Energy Corporation (Holding Company)'s investor day presentation, 2013
Slide 1: Regulated Utilities Operations
Analyst Meeting 2013 Regulated Utilities Operations Keith Trent, Executive VP and COO, Regulated Utilities
Slide 2: Key takeaways
Key takeaways – Investments to modernize Duke Energy’s fleet position the company to meet anticipated environmental regulations and close its older, less efficient plants – Duke Energy continues to deliver on merger savings – Additional investment opportunities in the fleet will position Duke Energy
Slide 3: Regulated generation and T&D operations
Regulated generation and T&D operations Portfolio Scale (1) Fuel Diversity – 6 regulated and geographically diverse jurisdictions 2012 Owned Capacity 2012 Actual Generation (2) – 7.2 million electric customers 7% 18% 21% 38% 1% 44% 37% 34% – 50 GW owned, available capacity Coal Natural Gas/Oil Nucle
Slide 4: Fleet modernization investments...
Fleet modernization investments... ...have allowed Duke Energy to diversify its fuel mix and become better positioned for environmental compliance More Balanced Fuel Mix (MWh) (1)(3) $9 billion investment adds ~6,600 MW (1) of new capacity, 5% 3% Hydro 3% 2005 1% 2015 replacing up to 6,800 MW (2) of
Slide 5: 2013 capacity additions to increase diversity of generation fleet
2013 capacity additions to increase diversity of generation fleet Edwardsport IGCC Coal Plant (618 MW) Sutton 2x1 CC Gas Plant (625 MW) – Construction is complete – Testing is in final phase required before putting plant into service – Recent Key Milestones: – Operated combustion and steam turbines
Slide 6: Guaranteed customer benefits result from joint dispatch and merger fuel savings
Guaranteed customer benefits result from joint dispatch and merger fuel savings – Overview of Joint Dispatch and Fuel Savings – Joint Dispatch Delivers Ongoing Savings Despite – Guaranteed ~$687 million in joint dispatch and Volatile Commodity Prices fuel savings in the Carolinas over 5 years Monthl
Slide 7: Strong customer service performance metrics
Strong customer service performance metrics T&D System Reliability Outages Minutes SAIFI (1) SAIDI (1) 1.75 (8% improvement since 2006) 200 (22% improvement since 2006) 1.5 175 150 1.25 125 Denotes 1 Improvement 100 0.75 75 Annual Results 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2
Slide 8: Platform for large scale storm response
Platform for large scale storm response Line crew restoring Duke Energy sent ~2,900 employees and Thank you note from power to Duke Energy contractors to assist in restoration after Pennsylvanian whose power was customers Super Storm Sandy restored by Duke Energy crew Operational excellence and stro
Slide 9: Additional environmental investment opportunities
Additional environmental investment opportunities Invested over $7 billion (1) on Additional ~$5-6 billion investment air emissions controls expected over the next decade Projected Reductions Total Capital Air (tons in thousands) SO2: 92% NOx: 79% 5% 1,500 $1.25- 1,000 $1.5B $2.5-$3B 40% 55% $1.25-
Slide 10: Key takeaways
Key takeaways – Positioned to meet anticipated environmental regulations – Delivering on merger savings – Poised for additional investments in the fleet 22 | Analyst Meeting 2013
Slide 11: Appendix materials
Appendix materials A-1 | Analyst Meeting 2013
Slide 12: Joint dispatch agreement
Joint dispatch agreement – Stand-Alone Utility Load & Resources – Joint Dispatch in Action – Before the merger, both Carolinas systems were CTs Customer Savings captive to their own resources for generating DEC Incremental $50-$40 = $10 incremental load or purchasing it in the market Hydro $50 $40 P
Slide 13: Commodity markets' impact on operating performance
Commodity markets’ impact on operating performance Historical Coal and Gas Dispatch Costs – Coal Fleet Flexible to Changing Markets $70 2012 (1) – Central Appalachian coal is no longer Carolina Coal Burn – 20.4 M tons primary coal for both Progress Energy $60 Carolina CC MWs – 2,435 MWs Carolinas (P
Slide 14: Pending environmental regulations
Pending environmental regulations Rule Overview Potential Impacts to Duke Energy Regulates Hazardous Air Pollutants (e.g., mercury & non-mercury HAPs) Additional air emissions control Mercury and Air EPA published final rule on February 16, 2012 equipment Toxics Standards Rule Compliance dea
Slide 15: Pending EPA regulations will impact U.S. generation
Pending EPA regulations will impact U.S. generation Major Regulations Duke Energy Domestic Generation (As of 12/31/12) Considerations for EPA Coal Combustion Coal Generation Profile Transition period must Residuals Rule TODAY – 4% POST MODERNIZATION (2) – be reasonable to allow 22.8 GW (1) 20.2 GW
Slide 16: Positioning our coal fleet for EPA regulations
Positioning our coal fleet for EPA regulations Coal Generation Profile – As of 12/31/12 Plans for Coal Generation Without Controls – Riverbend 4-7 ~450 MW to be retired 4/2013 Duke Carolinas 4.3 GW 2.5 GW 1.1 GW – Buck 5&6 ~260 MW to be retired 4/2013 ~7.9 GW – Lee 1&2 ~200 MW potential to be retire
Slide 17: Duke Energy steam facility data (As of 12/31/12)
Duke Energy steam facility data (As of 12/31/12) Owned Capacity – Structure Operating State Jurisdiction Steam Unit Facility Summer Rating (MW) Fuel Type Current Cooling Method Emissions Controls Regulated In Operation DE Carolinas Allen 1,127 Coal Once-Through Scrubber Regulated In Operation DE Car
Slide 18: Duke Energy steam facility data, cont. (As of 12/31/12)
Duke Energy steam facility data, cont. (As of 12/31/12) Owned Capacity – Structure Operating State Jurisdiction Steam Unit Facility Summer Rating (MW) Fuel Type Current Cooling Method Emissions Controls Regulated In Operation DE Indiana Cayuga 1,005 Coal Once-Through Scrubber; SCR Under Construction