Duke Energy Corporation (Holding Company) · NYSE:DUK

Duke Energy Corporation (Holding Company) — UBS 2007 Natural Gas & Electric Utilities Conference

17 slides from Duke Energy Corporation (Holding Company)'s conference presentation, Feb 28, 2007

  1. Slide 1: UBS 2007 Natural Gas & Electric Utilities Conference

    UBS 2007 Natural Gas if & Electric Utilities Conference February 28, 2007 “san Turner Group ExeCnt and WILD us

  2. 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

  3. Slide 3: Investment Highlights

    Investment Highlights ƒ One of the leading power infrastructure companies in the U.S. ƒ Low-risk business profile ƒ Approximately 85% of total ongoing segment EBIT from utility operations ƒ Strong earnings growth and total return ƒ 4 – 6% ongoing diluted EPS growth from 2007 base ƒ Dividend growth i

  4. Slide 4: U.S. Franchised Electric & Gas

    U.S. Franchised Electric & Gas ƒ 5 States ƒ North Carolina ƒ South Carolina ƒ Indiana ƒ Ohio ƒ Kentucky ƒ 47,000 square mile service territory ƒ 28,000 net MW of generating capacity ƒ 3.9 million retail electric customers ƒ 500,000 retail gas customers ƒ Approximately $16 billion in retail rate Nucl

  5. Slide 5: Earnings Growth Drivers

    Earnings Growth Drivers Enhanced Cost Significant Capital Steady Sales Growth Reductions Reinvestment ƒ Annual load growth ƒ Consistent focus on cost ƒ Regulated: Projected 1/3 ƒ 1.5% in Carolinas control increase in capacity ƒ 1.0% in Midwest ƒ Merger-related rate within 15 years ƒ 65,000 new custo

  6. Slide 6: Significant Capital Reinvestment

    Significant Capital Reinvestment ($ in millions) 2007 2008 2009 Total Expansion $ 600 $ 1,150 $ 1,775 $ 3,525 Environmental 750 475 150 1,375 Nuclear Fuel 150 200 150 500 Maintenance and Other 1,350 1,325 1,125 3,800 Total Regulated Cap Ex $ 2,850 $ 3,150 $ 3,200 $ 9,200 (1) Non-regulated (2) 475 35

  7. Slide 7: Re-investment Supports Earnings Growth

    Re-investment Supports Earnings Growth 2006 – 2009 Rate Base ($ in billions) ~25% Increase in U.S. Franchised Electric & Gas Rate Base $2 $9 OH/KY $(5) Approximate current rate base $ 16 IN $4 Less: Depreciation & amortization (5) $20 Capital expenditures 9 NC/SC Estimated 2009 rate base $ 20 $10 Cu

  8. Slide 8: Drivers for Positive Regulatory Outcomes

    Drivers for Positive Regulatory Outcomes ƒ Reliable operations ƒ Low prices for customers ƒ Limited fuel price volatility ƒ High customer satisfaction 8

  9. Slide 9: Reliable Operations and Low Prices

    Reliable Operations and Low Prices Bundled Retail Rate Comparison ƒ Operating measures Cents / kWh % National Avg. ƒ Nuclear capacity National Average 8.54 factor: 90% Duke Energy ƒ Fossil/hydro SC 5.46 64% commercial IN 5.98 70% availability: 93% KY (1) 6.01 70% ƒ Rates well below the NC 6.40 75% n

  10. Slide 10: Limited Fuel Price Volatility

    Limited Fuel Price Volatility 2006 YTD as of Sept 30 1% each for 100% gas/oil and 12% hydro 90% 33% 100% of 80% 18% 70% fuel costs 60% 18% recovered 50% through 40% Hydro trackers 30% 65% 52% Gas/Oil 20% Nuclear 10% Coal 0% Duke Energy Duke Energy Net MW Capacity MWh Dispatched Note: Excludes Commer

  11. Slide 11: Current Regulatory Calendar

    Current Regulatory Calendar Activity 2007 2008 2009 1. Decision expected by Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Feb. 28 Carolinas New generation – Cliffside 2. Legislation Pursue CPCN 1 introduced in SC for Pursue recovery of financing costs on CWIP 2 recovery of: New generation – Nuclear ƒ Developm

  12. Slide 12: Current Regulatory Calendar Continued

    Current Regulatory Calendar Continued Activity 2007 2008 2009 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1. Complying with Ohio remand order; expect RSP RSP to be affirmed in Supreme Court remand 1 total Current program ends 2 Merger-related rate credit ends - Ended December 31, 2006 - 2. Pursuing two Tran

  13. Slide 13: Carbon Policy

    Carbon Policy ƒ Duke Energy joined United States Climate Action Partnership (USCAP ) ƒ Watershed event to accelerate congressional action on climate change ƒ Diverse coalition of businesses and environmental groups ƒ Our goal is to achieve carbon reduction regulation that would: ƒ Reduce power plant

  14. Slide 14: Value Proposition

    Value Proposition ƒ Growth Annual Total Return Profile ƒ Sales growth 15% ƒ Cost reductions ƒ Return on capital investments ƒ Value 10% ƒ Proactive regulatory strategy ƒ 2007 EPS incentive target of $1.15 per share, based on ongoing 5% diluted EPS ƒ 4 – 6% ongoing diluted EPS growth through 2009 0%

  15. Slide 15: Slide 15

  16. Slide 16: Non-GAAP Reconciliation for SEC Regulation G

    Duke Energy Corporation Non-GAAP Reconciliation for SEC Regulation G UBS Natural Gas & Electric Utilities Conference February 28, 2007 Anticipated Ongoing Diluted Earnings-per-share (“EPS”) Growth Percentages The materials for Duke Energy’s February 28, 2007, presentation at the UBS Natural Gas & El

  17. Slide 17: Forecasted 2007 Ongoing Segment and Other EBIT

    Forecasted 2007 Ongoing Segment and Other EBIT The materials for Duke Energy’s February 28, 2007, presentation at the UBS Natural Gas & Electric Utilities Conference include a discussion of forecasted 2007 ongoing EBIT for Duke Energy’s reportable segments and for Other, which represents the remaind

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