Duke Energy News

Company Has Announced Nearly 800 Megawatts of New Wind Projects in 2011

For the second time in a month, Duke Energy is announcing plans to build a large-scale wind farm in Texas.

Duke Energy Renewables, a commercial business unit of Duke Energy, will build, own and operate the 202-megawatt (MW) Los Vientos II Windpower Project and sell the electricity and renewable energy credits it generates to Austin Energy through a 25-year agreement.

“Purchasing zero-emission electricity from Duke Energy’s Los Vientos II Windpower Project represents yet another example of Austin Energy’s commitment to investing in affordable renewable power,” said Duke Energy Renewables President Greg Wolf.

“For Duke Energy, the Los Vientos II project will help us put an additional 770 megawatts of wind power into operation in 2012. This will bring Duke Energy’s total wind power capacity to nearly 1,800 megawatts – enough to power more than half a million homes,” he said. Read more

Duke Energy will build a new wind farm in north-central Pennsylvania and sell all of the renewable electricity it generates to Delaware Municipal Electric Corp. (DEMEC) under a 25-year agreement.

Duke Energy Renewables, a commercial business unit of Duke Energy, will build, own and operate the 69-megawatt (MW) Laurel Hill Windpower Project in Lycoming County. The wind farm will consist of 30 Siemens wind turbines, each capable of generating 2.3 MW. Laurel Hill will be capable of generating enough electricity to power more than 20,000 homes.

Duke Energy Renewables started construction of the Laurel Hill Windpower Project in August and plans to achieve commercial operation by September 2012.

“The remarkable growth we’ve seen in Duke Energy Renewables’ wind and solar business lines this year is a testament to customers like DEMEC that understand the long-term value of affordable renewable energy,” said Duke Energy Renewables President Greg Wolf. Read more

Duke-American Transmission Co. today released its first set of transmission projects that include seven new transmission line projects in five Midwestern states. These projects will fill gaps in the existing transmission grid, improve electric system reliability and market efficiency, provide economic benefits to local utilities and enable increased delivery of high-quality renewable resources.

In submittals to regional transmission organizations MISO and PJM, DATC will propose seven distinct projects in Iowa, Wisconsin, Illinois, Indiana and Ohio. The DATC projects include more than 1,300 circuit miles of 345-kilovolt lines and 550 miles of 500-kV high-voltage direct-current lines. The individual projects range from 65 to 696 miles and have a total cost of approximately $4 billion.

“These projects represent strategic solutions,” says John Flynn, vice president of Strategic Planning and Business Development for American Transmission Co.  “The DATC projects relieve congestion on the grid, provide operational flexibility to enhance system reliability, and deliver economic and market benefits. Some of these projects are stand-alone projects, and some work in conjunction with MISO’s multi-value projects and other DATC projects.”

“These projects are not just lines drawn on a map or a one-size-fits-all solution,” said Phillip Grigsby, Duke Energy Commercial Businesses senior vice president. “We’ve taken a methodical approach to address specific regional transmission needs by building upon work already done and developing innovative solutions in the areas where they are most needed.” Read more

Duke Energy’s leadership in sustainable business practices was recognized for a second year in a row through placement on the prestigious Dow Jones Sustainability World Index (DJSI World).

Announced today, the 2011 DJSI World recognizes the top 10 percent of the leading sustainability performers among the largest 2,500 companies in the Dow Jones Global Total Stock Market Index.

In the electricity sector, 102 utilities from around the world were evaluated for consideration. Thirteen were selected.

Duke Energy was also named today to the DJSI for North American companies in the electric utility sector for the sixth consecutive year.

“Being named to the DJSI World list for a second year and the DJSI for North American companies for the sixth year is a tribute to our employees’ dedication to conducting business in a way that is good for people, the planet, and profits,” said James E. Rogers, chairman, president and chief executive officer. “We have invested $7 billion in cleaner generation technologies over the past five years — allowing us to retire almost 3,500 megawatts of older, dirtier coal units by 2015 — and will invest an additional $5 billion over the next decade to ensure a more sustainable energy future.

“As we grow through our merger with Progress Energy,” Rogers continued, “we will remain focused on becoming the best utility in the U.S. by maintaining our strong emphasis on environmental, social and economic leadership.” Read more

Duke Energy and Progress Energy today announced a settlement with the N.C. Public Staff regarding the companies’ proposed merger.

The proposed settlement, if approved by the NCUC, would provide for the following:

• Guaranteed customer savings – the companies will guarantee North Carolina customers benefit from their allocable share of $650 million in savings over the first five years after the merger closes (2012-2016);
• Continued community support – the companies will continue their current level of community financial support of approximately $16.5 million annually for a minimum of four years after the merger closes (based on each company’s average level of community support over the last 5 years – which is approximately $9.2 million for Duke Energy and approximately $7.28 million annually for Progress Energy);
• Other community funding – the companies will provide $15 million for low-income household weatherization, community college programs that target technical and vocational training, or similar organizations and initiatives; and
• Costs to achieve merger – direct merger-related expenses will not be recovered from customers. Recovery of employee severance costs can be requested separately.

The settlement agreement was filed today by the N.C. Public Staff, which serves as the state’s chief consumer advocate on utility matters. Other parties will file testimony related to the merger application and the proposed settlement agreement by Sept. 7. Read more

Lynn J. Good, Duke Energy’s group executive and chief financial officer, will address the Barclays Capital 2011 CEO Energy-Power Conference in New York City on Wednesday, Sept. 7.

Good’s presentation will be from 7:45 a.m. to 8:20 a.m. ET and will be available via webcast through the investors’ section of Duke Energy’s Web site: www.duke-energy.com/investors/.  A replay of the webcast and presentation materials will also be available through the investors’ section of the company’s website.

Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.

CONTACTS:

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Phone:  704-382-1603

Duke Energy shareholders today overwhelmingly approved the proposed merger with Progress Energy. More than 90 percent of the Duke Energy shares voted supported the proposal.

Duke Energy shareholders specifically approved a 1-for-3 reverse stock split as well as the issuance of Duke Energy common stock to Progress Energy shareholders upon closing of the merger transaction. The reverse stock split is designed to reduce the number of outstanding Duke Energy shares.

Progress Energy shareholders also approved the merger this morning during a separate meeting in Raleigh.

“Our shareholders have voiced their strong support for the merger between these two companies,” said Jim Rogers, chairman, president and chief executive officer of Duke Energy. “The merger will increase our ability to more economically modernize our generation fleet and grid while providing significant savings to customers through improved fuel purchasing power and greater plant dispatch efficiency.

“At its core,” Rogers continued, “the merger enhances both companies’ abilities to ensure strong shareholder value, provide exceptional customer service and deliver affordable and reliable electricity in the face of current high levels of economic, regulatory, and industry uncertainty.” Read more

Duke Energy announced plans today to build a large-scale wind farm in Willacy County, Texas, and sell the electricity it generates to San Antonio-based CPS Energy, the nation’s largest municipally owned energy utility.

Duke Energy Renewables, a commercial business unit of Duke Energy, will build, own and operate the 200-megawatt (MW) Los Vientos I Windpower Project in Willacy County, approximately 120 miles south of Corpus Christi and 20 miles inland from the Gulf of Mexico.

Duke Energy will sell all of the output from the wind farm and associated renewable energy credits to CPS Energy under the terms of a 25-year agreement. CPS Energy already buys all of the electricity generated at Duke Energy Renewables’ 14-MW (16-MW direct current) Blue Wing Solar Project in San Antonio. The Blue Wing solar farm, which consists of approximately 215,000 photovoltaic panels, achieved commercial operation in November 2010. Read more

Request would increase electric rates by approximately 15 percent on average, driven by Carolinas modernization efforts

With the retirement of four older coal-fired units, the addition of new emissions controls on Unit 5 and the completion of the new state-of the art Unit 6, the modernized Cliffside facility will emit 80 percent less sulfur dioxide and 50 percent less nitrogen oxide and mercury as compared to the five original units, while generating more than twice the electricity.

Duke Energy Carolinas today filed a request with the Public Service Commission of South Carolina (PSCSC) to increase electric rates by approximately $216 million.

Nearly 90 percent of the rate increase would allow Duke Energy Carolinas to begin recovering $6.5 billion in investments to modernize its electric system and comply with state and federal emissions regulations.

Major projects include construction of a new natural gas-fired power plant, environmental emissions equipment and financing costs associated with building a new state-of-the art unit at the Cliffside coal plant, and upgrades to the system of poles, wires and equipment that delivers power to homes and businesses.

The remaining amount of the increase covers changes in financing and other general costs.

As work on modernizing the system continues, Duke Energy Carolinas has been aggressively managing customer costs. Last year, the company’s power plants set records for operational efficiency, while operations and maintenance costs were held essentially flat.

This fall, when rates are adjusted to reflect fuel costs, a typical residential customer who uses 1,000 kilowatt-hours per month of electricity would pay approximately $99. If the company’s rate increase is approved, that bill will increase by approximately $15.

Twitter pitch:

Duke Energy asks for rate increase to pay for new power plants and modernization - http://bit.ly/qM3eKB

Duke Energy rate increase asks to recoup $4.8 billion in capital investments made in the Carolinas - http://bit.ly/qM3eKB

Resource links:

Learn more about the S.C. Rate Increase Request, including what it means for your family, business and community.

Duke Energy Youtility shows you how you can take control of your energy use.

Public Service Commission of South Carolina

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The Kentucky Public Service Commission (KPSC) today approved the merger-related application filed in April by Duke Energy Corp. and Progress Energy, Inc. The application sought approval for the indirect transfer of Duke Energy Kentucky that would result from the merger of the companies.

The KPSC’s order, approving a settlement agreement negotiated by the stakeholders involved, marks the first state regulatory approval in the merger process. The KPSC requires Duke and Progress to accept all the commitments contained in the order within seven days.

The companies announced their agreement to merge Jan. 10 and have made all regulatory filings necessary to have the merger approved. The companies continue to target the merger closing by the end of the year. If the merger is completed, Progress Energy will become a wholly owned subsidiary of Duke Energy, and the former shareholders of Progress Energy will become shareholders of Duke Energy. Read more