Duke Energy in North Carolina

Paul Newton | State president – North Carolina

The New Duke Energy

Duke Energy and Progress Energy have merged to create the new Duke Energy – the largest utility in the United States.

7.1 million electric customers

58,200 MW of generating capacity

Consistent community support and

investment

2

Commitment with Deep Roots in North Carolina

3

109 years of service

3.2 million retail customers

Two utilities

Duke Energy Carolinas

Duke Energy Progress

5 of our 11 operating nuclear units located in NC

12,900 employees, 10,400 retirees in NC

$113.9 million in property taxes to

local governments in NC

Payroll in NC = $1.2 billion

$16 million annual investment in NC for

community support and charitable donations

Duke Energy Carolinas Service Territory

Duke Energy Progress Service Territory

Overlapping Service Territory

4

Commitment to economic development in North Carolina

Helped recruit nearly $2.4 billion in capital

investment and more than 11,000 new jobs

over the last two years

Recognized among the nation’s ten best utility

companies in promoting economic development

Commitment to North Carolina customers

10.95 11.14 11.01

12.61

8.24 8.07

9.71

10.77

7.60 8.18 8.10

9.16

0

2

4

6

8

10

12

14

Duke EnergyCarolinas*

Duke Energy Progress* South AtlanticAverage**

U.S. Average

Cen

ts p

er k

Wh

Residential

Commercial

Industrial

5

*Post-rate case rates

**South Atlantic includes North Carolina, South Carolina, West Virginia, Virginia, Georgia, Maryland and Florida

Sources: EEI Typical Bills and Average Rates report, Winter 2013 and Duke Energy data

Delivering on merger savings

6

Commitment to North Carolina customers

As part of the merger, the company committed to

$687 million in fuel and operational savings

In the first 15 months, we achieved cumulative

benefits of $144 million in savings

These savings exceed original forecasts and are

generating savings for customers

Changing energy landscape – Slowing growth and usage

7

Changing energy landscape – Increased regulation

8

Cliffside Unit 6 is among the newest and

cleanest coal plants in the nation

• Proposed greenhouse gas rules

• Additional land and waste

regulations

• Increased regulation is pushing

industry toward natural gas for

baseload generation

Investing in our system – Fleet Modernization

9

• Retired 2,300 megawatts of

older, less-efficient coal units

• Enhancing safety and reliability

of our existing nuclear fleet

• Exploring regional nuclear options

Investing in our system – Ensuring reliability and resiliency

10

• Spending approximately

$3 billion on new infrastructure

and maintenance in the

Carolinas next year.

• Nearly half of planned capital

investments over the next

decade will help to make our

power grid more resilient

• We are committed to protecting

our system while also protecting

our customers

Falling solar installation prices

-

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

9.00

2008 2009 2010 2011 2012 2013 P 2014 P 2015 P 2016 P 2017 P 2018 P 2019 P 2020 P

$/W

ac In

stal

led

Solar price trends

Unsubsidized With Federal Tax Credits With Federal & N.C. Tax Credits

11

Net metering

12

$.10/kWh

$.10/kWh

Net metering customers

13

$110,000 Average household income of net metering customers

$67,000 Average household income for all NC customers

$43,000 Income difference between solar and non-solar customers

Qualifying facilities (QFs)

14

Regulated Utilities Installed Capacity

16 17 30

68 78

8

10 13

17

78

140

2008 2009 2010 2011 2012 2013 YTD Pending

Carolinas Annual QF Interconnection (Cumulative, MWac)

DEC DEP

8

26 30

46

146

218

2,240

773

1,467

15

Annual cost impact ≈ $100 million

Increasing costs to customers

Our Commitment to North Carolina

16

Duke Energy is committed to delivering

safe, reliable, affordable and increasingly

clean electricity to North Carolina.

17