Duke Energy News

Duke Energy Carolinas today filed a status update informing the Public Service Commission of South Carolina the company has signed a letter of intent with Santee Cooper for a potential minority interest (5 to 10 percent of the capacity of the two units) in Santee Cooper’s 45 percent ownership of the planned new nuclear reactors at V.C. Summer Nuclear Generating Station in South Carolina.

The letter of intent provides a path for Duke Energy to conduct the necessary due diligence to determine if future participation in this project would be beneficial for its customers.

Duke Energy Carolinas has been exploring various regional generation opportunities to meet future customer needs for safe, clean, reliable and affordable electricity. The agreement with Santee Cooper is a positive step in that direction.

In addition to exploring this regional generation project, Duke Energy continues work on development activities for its proposed Lee Nuclear Station and anticipates receiving its combined construction and operating license from the U.S. Nuclear Regulatory Commission in the 2013 time frame.

Duke Energy Carolinas owns nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides approximately 19,000 megawatts of owned electric capacity to approximately 2.4 million customers in a 24,000-square-mile service area of North Carolina and South Carolina.

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.

MEDIA CONTACT:

Tim Pettit
800-559-3853

With temperatures soaring well into the upper 90s this summer, Duke Energy encourages customers to take some simple steps to stay cool and save money.

“When temperatures are consistently high like they’ve been this summer, we know customers will use more energy as their air conditioners operate longer and more frequently to keep their homes cool,” said Gianna Manes, Duke Energy senior vice president and chief customer officer. “Taking control of your energy usage can be easy, so it’s important that customers understand how making a few simple changes can make a difference in their monthly energy costs,” Manes said.

Simple, Low- to No-Cost Energy-Saving Tips to Beat the Summer Heat
Duke Energy offers five low- to no-cost tips that can help customers beat the summer heat at home while saving money:

• Keep your doors closed – According to Energy Star®, minimizing door traffic and sealing leaks around windows and doors with caulking or weather stripping can help save up to 10 percent on annual energy bills.
• Close your curtains or blinds during the day – The U.S. Department of Energy found that this quick and easy step can help reduce heat gain inside your home by 45 percent, which means your home stays cooler so your air conditioner doesn’t have to work as hard.
• Install a programmable thermostat – By programming your air conditioner to adjust your home’s temperature up a few degrees when you’re not home, can help save up to $180 on your annual energy costs.
• Install compact fluorescent light bulbs – Replacing the bulbs in your six most-used lamps / fixtures with CFLs can save up to $30 over the lifetime of each bulb. Duke Energy has distributed more than 14 million bulbs to its customers over the past year, which is enough energy saved to power more than 60,000 homes and offset the carbon output of 95,000 passenger cars. Duke Energy customers in Ohio, North Carolina and South Carolina can get 15 bulbs free by visitingwww.duke-energy.com/freecfls or calling 800-943-7585; option 1 for more information.
• Use your microwave instead of the oven – Not only will it cut down on excessive heat in the kitchen, a microwave uses 70 percent less energy than a regular electric oven. Read more

Duke Energy Ohio anticipates it will retire all six coal-fired generation units at its W.C. Beckjord Station, southwest of Cincinnati, by Jan. 1, 2015, as a result of a proposed U.S. Environmental Protection Agency (EPA) rule.

Duke Energy Ohio announced its intent to retire Beckjord Station’s coal-fired units 1 through 6 – totaling 862 megawatts (MW) of generating capacity – in its 2011 Resource Plan filing with the Public Utilities Commission of Ohio (PUCO) on July 15.

The company plans to retire the coal-fired units at the nearly 60-year-old plant in 2015 due to EPA’s recently proposed Utility Maximum Achievable Control Technology (MACT) rule. EPA intends to finalize the rule in Nov. 2011, with required emission control technologies to be installed by Jan. 1, 2015. Read more

Duke Energy Corp. (Duke Energy) and Progress Energy, Inc. (Progress Energy) have scheduled special meetings Tuesday, Aug. 23, for shareholders to vote on the companies’ proposed merger announced Jan. 10.

The companies are mailing a joint proxy statement/prospectus to their respective shareholders on or about July 11, 2011. The Securities and Exchange Commission today declared effective the Duke Energy registration statement containing the joint proxy statement/prospectus. The document provides information for shareholders of both companies, as well as instructions on voting online, by mail, by telephone or in person.

• Duke Energy will hold its shareholder meeting at 10 a.m. Aug. 23 in the O.J. Miller Auditorium at the company’s offices located at 526 South Church St. in Charlotte.
• Progress Energy will hold its shareholder meeting at 11 a.m. Aug. 23 at the Progress Energy Center for the Performing Arts, 2 East South St. in Raleigh. 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 North Carolina Utilities Commission (NCUC) to increase electric rates by approximately $646 million.Approximately three-fourths of the rate increase would allow Duke Energy Carolinas to begin recovering $4.8 billion in investments made since 2009 to modernize our 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 fourth covers recession impacts on electric sales, additional financing and other general costs.

As work continues to modernize the system, Duke Energy Carolinas has been aggressively managing customer costs. Last year, our power plants set records for operational efficiency, while the company held operations and maintenance costs 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 $97.05. If the company’s rate increase is approved, that bill will increase by approximately $19.

Twitter pitch:

Duke Energy asks for rate increase to pay for new power plants and modernization – http://bit.ly/lcXa2P

Duke Energy rate increase asks to recoup $4.8 billion in capital investments made in the Carolinas - http://bit.ly/lcXa2P

Resource links:

Learn more about the N.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.

North Carolina Utilities Commission

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Duke Energy today declared a quarterly cash dividend on its common stock of $0.25 per share, an increase of a half-cent over the previous level. The dividend is payable on Sept. 16, 2011, to shareholders of record at the close of business Aug. 12, 2011.

“Today’s announcement is further proof we are successfully carrying out our strategy to consistently grow the dividend and provide solid returns for our investors,” said James E. Rogers, chairman, president and CEO. “Today’s action also takes into account our significant reinvestment in the business and the importance of maintaining a strong balance sheet.”

This is the 85th consecutive year that Duke Energy has paid a quarterly cash dividend on its common stock.

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.

MEDIA CONTACT:
Tom Shiel
Phone:  704-382-2355
24-Hour:  800-559-3853

ANALYST:
Mike Callahan
Phone:  704-382-0459

Duke Energy will host a conference call for investors and analysts at 9 a.m. ET on Wednesday, June 22, to discuss Duke Energy Ohio’s Electric Security Plan filing made with the Public Utilities Commission of Ohio on Monday, June  20, 2011.

The conference call will be conducted by members of the Duke Energy management team.

A live webcast of the presentation will begin at approximately 9 a.m. ET. The webcast will be available via the investors’ section of Duke Energy’s website at:  www.duke-energy.com/investors/ or by dialing 800-946-0774 in the United States or 719-325-2313 outside the United States. The confirmation code is 7281852. Please call in 10 to 15 minutes prior to the scheduled start time. A replay of the webcast will be available by accessing the investors’ section of the company’s website or will be available for 10 days by dialing 888-203-1112 in the United States or 719-457-0820 outside the United States. The replay confirmation code is 7281852.

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.

• Includes unique mechanism to fund job growth and attract economic investment in the region
• Preserves customer choice, a competitive energy market and future rate stability
• Provides better opportunity for financial stability of Duke Energy Ohio

Duke Energy Ohio today asked regulators for approval of an Electric Security Plan (ESP) for its customers beginning Jan. 1, 2012. Under the proposal, rates would be in effect through May 31, 2021.

“We believe this proposal balances the interests of a number of stakeholders including our customers and investors, while ensuring the state’s long-term energy future,” said Julie S. Janson, president, Duke Energy Ohio and Kentucky. “Our customers have told us they want both choice and predictability. We believe our approach promotes competition, offers price stability over the nine-year life of the ESP and satisfies the company’s need to plan for investing in the long-term energy requirements of our region.”

Under the proposed ESP, generation remains unbundled and separate from transmission and distribution service. The plan further unbundles generation service by separating capacity (physical assets) from energy (the actual output). Customers would pay for capacity through a non-bypassable, cost-of-service-based charge, while energy would be priced and purchased through a competitive auction. Read more

Pioneer Transmission LLC, a joint venture between American Electric Power (AEP) and Duke Energy, will develop a 55-mile, extra-high-voltage transmission project with Tennessee Valley Authority (TVA) in Indiana and Kentucky.

Under the terms of a memorandum of understanding with TVA, the parties propose to build a 765-kilovolt (kV) transmission line connecting AEP’s Rockport Station (east of Evansville, Ind.) with TVA’s Paradise Station in Drakesboro, Ky. The cost of the project, which would also include construction of a new 765-kV substation at Paradise, is estimated at $275 million, subject to approved routing.

“This project, which is the result of thoughtful and creative collaboration between the Pioneer partners and TVA, has the potential to enhance regional reliability in the Indiana and Kentucky areas for decades to come,” said Duke Energy Commercial Businesses Senior Vice President Phil Grigsby. Read more

Duke Energy announced today that 20 children of company employees have been selected to receive 2011 Duke Energy Foundation scholarships.

Fifteen recipients will receive up to $5,000 per year for up to four consecutive years of undergraduate study at an accredited college or university in the United States. Five students were named alternates and will receive a one-time $1,000 scholarship.

Scholarship recipients must be graduating high school/secondary school seniors and are chosen annually by an independent committee of judges. The committee reviews and selects applicants based on their performance in academics, leadership, participation in school and community activities, honors and awards, work experience and financial need.

“Since the founding of our company, education has consistently remained a central focus of our involvement in the many communities we serve. Yet with the rising cost of post-secondary education and the changing needs in our industry, our ability to provide support for our young people is perhaps even more critical now than ever before,” said Stick Williams, president, Duke Energy Foundation. Read more