DUKE ENERGY CORPORATION

DUKE ENERGY CORPORATION

Previous company name
DUKE ENERGY HOLDING CORPORATION
Name change date
4/3/2006
Company Overview
Duke Energy Corporation is an energy company engaged in the provision of natural gas and electricity services to customers in the Americas. The company was founded in 1904 and has its headquarters located in Charlotte, North Carolina in the United States of America. It is a Fortune 500 company traded on the New York Stock Exchange.
Duke Energy focuses on the supply, delivery and processing of electric power and gas and also offers franchised electric and gas, commercial power, and generation services, as well as other energy services. The company also owns and operates regulated (franchised) and unregulated (wholesale) power plants in North America and Latin America. It operates nuclear power plants, coal-fired plants, conventional hydroelectric plants, natural-gas turbines to handle peak demand, and pumped hydro storage.
In addition, the company is a joint-venture partner of Crescent Resources LLC, a United States real estate company and a joint venture between Duke Energy, Morgan Stanley Real Estate Fund and Crescent Resources’ management. Crescent Resources develops and manages real estate in ten states across the southeastern and southwestern United States.
The company’s mission is to create superior and sustainable value for its customers, employees, communities and investors through the production, conversion, delivery and sale of energy and energy services.
In 2006, Duke Energy merged with Cinergy Corporation, an energy company based in Cincinnati, Ohio, which created one of North America’s largest energy companies that serves electric and gas customers in Ohio, Kentucky, Indiana, North Carolina, South Carolina and Ontario, Canada. Duke Energy was the surviving corporation of the merger and its United States franchised electric and gas utilities – formerly Duke Power in the Carolinas; Cincinnati Gas & Electric in Ohio; Union Light, Heat and Power in Kentucky; and PSI Energy in Indiana – will be known as Duke Energy.
Business Summary
Duke Energy Corporation (Duke Energy) is an energy company that provides its services through three business segments. The Company’s business segments are U.S. Franchised Electric and Gas, Commercial Power and International Energy. In June 2009, Duke Energy completed the purchase of the remaining approximately 24% noncontrolling interest in the Aguaytia Integrated Energy Project (Aguaytia), located in Peru. In June 2009, Duke Energy acquired North Allegheny Wind, LLC (North Allegheny) in Western Pennsylvania.
Description and history
Duke Energy Corporation (Duke Energy) is an energy company that provides its services through three business segments. The Company’s business segments are U.S. Franchised Electric and Gas, Commercial Power and International Energy. In June 2009, Duke Energy completed the purchase of the remaining approximately 24% noncontrolling interest in the Aguaytia Integrated Energy Project (Aguaytia), located in Peru. In June 2009, Duke Energy acquired North Allegheny Wind, LLC (North Allegheny) in Western Pennsylvania.

U.S. Franchised Electric and Gas

U.S. Franchised Electric and Gas generates, transmits, distributes and sells electricity in central and western North Carolina, western South Carolina, southwestern Ohio, central, north central and southern Indiana, and northern Kentucky. U.S. Franchised Electric and Gas also transports and sells natural gas in southwestern Ohio and northern Kentucky. It conducts operations primarily through Duke Energy Carolinas, LLC (Duke Energy Carolinas); Duke Energy Ohio, Inc. (Duke Energy Ohio); Duke Energy Indiana, Inc. (Duke Energy Indiana), and Duke Energy Kentucky, Inc. (Duke Energy Kentucky).

U.S. Franchised Electric and Gas supplies electric services to approximately 4 million residential, commercial and industrial customers over 151,600 miles of distribution lines and a 20,900-mile transmission system. U.S. Franchised Electric and Gas provides domestic regulated transmission and distribution services for natural gas to approximately 500,000 customers via approximately 7,200 miles of gas mains (gas distribution lines that serve as a common source of supply for more than one service line) and approximately 6,000 miles of service lines. Electricity is also sold wholesale to incorporated municipalities and to public and private utilities.

Electric energy for U.S. Franchised Electric and Gas customers is generated by three nuclear generating stations with a combined net capacity of 5,173 megawatts (including Duke Energy’s 19% ownership in the Catawba Nuclear Station), 15 coal-fired stations with a combined net capacity of 13,189 megawatts (including Duke Energy’s 69% ownership in the East Bend Steam Station and 50.05% ownership in Unit 5 of the Gibson Steam Station), 31 hydroelectric stations (including two pumped-storage facilities) with a combined net capacity of 3,263 megawatts, 15 combustion turbine (CT) stations burning natural gas, oil or other fuels with a combined net capacity of 5,047 megawatts and one combined cycle (CC) stations burning natural gas with a net capacity of 285 megawatts.

Commercial Power

Commercial Power owns, operates and manages power plants and engages in the wholesale marketing and procurement of electric power, fuel and emission allowances related to these plants, as well as other contractual positions. Commercial Power’s assets comprise approximately 7,550 megawatts of power generation primarily located in the Midwestern United States. The asset portfolio has a fuel mix with baseload and mid-merit, coal-fired units, as well as combined cycle and peaking natural gas-fired units. Effective January 1, 2009, Commercial Power began operating under an electric security plan (ESP), which expires on December 31, 2011. Commercial Power also has a retail sales subsidiary, Duke Energy Retail Sales (DERS).

Commercial Power, through Duke Energy Generation Services, Inc. and its affiliates (DEGS), develops, owns and operates electric generation for large energy consumers, municipalities, utilities and industrial facilities. DEGS manages 6,150 Megawatts of power generation at 21 facilities throughout the United States. In addition, DEGS engages in the development, construction and operation of wind energy projects. As of December 31, 2009, DEGS has over 5,000 Megawatts of wind energy projects in the development pipeline with approximately 735 net Megawatts of wind generating capacity in operation. DEGS is also developing transmission, solar and biomass projects.

International Energy

International Energy owns, operates, and manages power generation facilities and engages in sales and marketing of electric power and natural gas outside the United States. It conducts operations primarily through Duke Energy International, LLC (DEI) and its activities target power generation in Latin America. International Energy also engages in the production of natural liquid gas and methanol and methyl tertiary butyl ether (MTBE). International Energy’s customers include retail distributors, electric utilities, independent power producers, marketers and industrial/commercial companies. International Energy owns, operates or has substantial interests in approximately 4,000 net Megawatts of generation facilities as of December 31, 2009.

Other

The remainder of Duke Energy’s operations is presented as Other. Other primarily includes unallocated corporate costs, Bison Insurance Company Limited (Bison), Duke Energy’s wholly-owned captive insurance subsidiary, Duke Energy’s effective 50% interest in the Crescent JV (Crescent) and DukeNet Communications, LLC (DukeNet) and related telecom businesses. Additionally, Other includes the remaining portion of Duke Energy’s business formerly known as DENA that was not exited or transferred to Commercial Power, primarily Duke Energy Trading and Marketing, LLC (DETM), which is 60% owned by Duke Energy and 40% owned by Exxon Mobil Corporation.

Business Line
Engaged in the provision of natural gas and electricity services
Subsidiary
ACTIVIDADES A Y D, SA
Advisor
DELOITTE & TOUCHE LLP
IPO date
7/12/1961
US SIC Code
4911
Company Address
526, South Church Street

City province or state postal code
28202, CHARLOTTE, NC
Phone: +1 704 594 6200
Fax: +1 704 382 4964
Country address: UNITED STATES OF AMERICA
Website url: www.duke-energy.com