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European Investor Visits
London – Frankfurt – Zurich – Geneva – Milan
17-20 November, 2014
Safe Harbor
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 additional
information contained in Duke Energy’s 2013 Form 10-K filed with the SEC and our other SEC
filings concerning factors that could cause those results to be different than contemplated in
today's discussion.
Reg G disclosure
In addition, today's discussion includes certain non-GAAP financial measures as defined under
SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP
measures is available on our Investor Relations website at www.duke-energy.com/investors/.
Supplemental information
Supplemental information related to today’s presentation can be accessed via our Investor
Relations website at www.duke-energy.com/investors/. This supplemental information includes
presentation appendix materials.
2 | European Investor Visits
Duke Energy representatives
Steve Young
EVP – Chief Financial Officer
Bill Currens
Vice President – Investor Relations
(704) 382-1603
[email protected]
Beau Pratt | Sr. Analyst – Investor Relations
(704) 382 -2284 | [email protected]
Additional Information
For more information on Duke Energy, please visit
www.duke-energy.com/investors
3 | European Investor Visits
Table of contents
 Duke Energy overview
 Financial highlights
 Appendix
 Q&A
4 | European Investor Visits
DUKE ENERGY
OVERVIEW
FINANCIAL
HIGHLIGHTS
5 | European Investor Visits
Business mix reinforces growth and optimization efforts
Regulated Utilities - 84% of mix (1)
International – 12% of mix (1)
Commercial Power – 4% of mix (1)
Guatemala
300 MW
El Salvador
300 MW
Midwest
Ecuador
200 MW
Peru
800 MW
Carolinas
v
Florida
vChile
400vMW
Brazil
2,100 MW
Argentina
500 MW
Wind – 1,625 MW
Solar – 115 MW
– Largest U.S. utility with significant regulated earnings and cash flows
– Operating in six constructive regulated jurisdictions with fuel mix diversity
– Advancing significant growth investments to benefit customers and investors
– Optimization efforts ongoing with the Commercial Businesses
(1) Based upon mid-point of the original 2014 EPS guidance range of $4.45 to $4.60 per share
6 | European Investor Visits
Duke Energy: scale, balance and diversity
Largest Utility in the United States (1)





Total assets: ~$120 billion, Regulated Utilities $106 billion
Market capitalization: ~ $59 billion
U.S. generation capacity: ~ 50 GW (owned MW)
Electric customers: 7.2 million
Balanced customer mix (MWh sales)
Highly-regulated business with earnings diversity (2)
4%
9%
Regulated
Utilities
12%
24%
PreMerger
International
67%
84%
PostMerger
Commercial
Power
Fuel diversity (MWh output) (3)
5%
3%
1%
3%
24%
36%
38%
55%
35%
2005
2015
(1)
(2)
(3)
Coal
Nuclear
Natural Gas
Oil
Hydro
Total assets, US generation capacity, and electric customers as of September 30, 2014; market cap as of November 10, 2014
Pre-merger business mix based upon 2011 Duke Energy adjusted net income; post-merger business mix based upon midpoint of
the original forecasted 2014 adjusted diluted EPS guidance range of $4.45 - $4.60; all amounts exclude “Other”
2005 represents pro-forma regulated generation combining Duke Energy and Progress Energy. Crystal River 3 excluded from 2015.
Assumes CR1-2 retirement (no definitive decision has been made), but does not assume replacement generation
7 | European Investor Visits
Commercial businesses largely contracted & provide diversity
International Energy





4,600 MW of generation in Latin America
25% investment in National Methanol
Highly contracted business
Historically strong earnings growth
Strategic review in progress to review cash optimization
and growth opportunities
Guatemala
300 MW
(bunker & diesel)
El Salvador
300 MW (bunker & diesel)
Ecuador
200 MW
(diesel)
2013 Net Income
Peru
800 MW
3%
(hydro, gas & diesel)
v
16%
27%
NMC
Peru
Chile
400 MW
(hydro & gas)
Other

Brazil
2,100 MW
(hydro)
Argentina
500 MW
(hydro & gas)
Brazil

v
v
54%

Commercial Power
Renewables – long-term contracted projects with
creditworthy counterparties
Commercial Transmission – electric and natural gas
infrastructure investments, including the Atlantic Coast
Pipeline
Midwest generation – announced sale of merchant
generation business to Dynegy for $2.8B; expect to close
by end of 1Q 2015
Current Operating Portfolio of
~1,750 net owned MW
Wind – 1,625 MW
Solar – 120 MW
8 | European Investor Visits
Announced agreement to sell Midwest generation to Dynegy
Transaction overview
 Announced sale of Midwest generation business to
Dynegy for $2.8 billion in cash in August
Zimmer Generating Station
 Use of proceeds could include a combination of:
― Reinvestment in growth projects
― Avoidance of future holding company debt issuances
― Stock buyback
 Transaction expected to be accretive to adjusted diluted
EPS, depending upon timing of closing and ultimate use
of proceeds
Approvals needed / closing timeline

 Department of Justice under the Hart-Scott Rodino Act
 Federal Energy Regulatory Commission (FERC)
 Duke’s release from certain credit support obligations
 Expect to close the transaction by the end of 1Q 2015
9 | European Investor Visits
DUKE ENERGY
OVERVIEW
FINANCIAL
HIGHLIGHTS
10 | European Investor Visits
Financial objectives for 2014 and beyond
Achieve
revised 2014 EPS
guidance range of
$4.50 - $4.65 (1)
Grow
EPS 4 - 6%
through 2016 (1)(2)
Grow
dividend within 65 - 70%
target payout (1)
Maintain strong
credit ratings and
balance sheet
(1) Based on adjusted diluted EPS / 2014 EPS guidance range assumes normal weather for Q4 2014
(2) Long-term adjusted diluted EPS growth rate of 4-6% through 2016 is based upon the midpoint of the original 2013 adjusted diluted EPS guidance range of $4.20-$4.45
11 | European Investor Visits
Established track record of long-term, attractive
total shareholder returns
24.0%
25.2%
22.5%
20.6%
19.5%
17.5%
16.6%
15.1%
13.1%
13.0%
12.2%
2014 YTD
1 Year
DUK
3 Year
Annualized
Philadelphia Utility Sector
15.7%
5 Year
Annualized
S&P 500
Total Shareholder Returns per Bloomberg as of November 10, 2014
12 | European Investor Visits
Established track record of dividend growth
 DUK has an above-average dividend yield
compared to its peer group
DUK annual dividend per share (1)
 DUK is growing the dividend annually, but
at a rate slower than the growth in EPS
 DUK will reach its targeted 65-70% payout
ratio in 2014 (2)
 Once the targeted dividend payout range
is achieved, DUK board has additional
flexibility to grow dividend more consistent
with earnings growth rate
$2.88
$2.94
$3.00
$3.06
$3.12
$3.18
2009
2010
2011
2012
2013
2014E
Attractive current dividend yield of 3.9% (3)
(1) Annual dividends reflect annualized Q4 dividend per share for each year and have been adjusted for the 1-for-3 reverse stock split; 2014 projected dividend is subject to Board discretion
(2) Based on adjusted diluted earnings per share (EPS)
(3) As of November 10, 2014
13 | European Investor Visits
Achieving long term earnings growth of 4-6% through 2016 (1)
Adjusted diluted EPS summary (1)
EPS CAGR
Contribution
Thru 2016
Long-term segment earnings drivers
Regulated
Utilities
 Investments in regulated fleet
1%
(net of depreciation and regulatory lag)
 Improving economy and long-term load
1%
growth of 0.5% - 1.0%
$4.60
 Wholesale and customer program growth
$4.45
 Flat O&M, net of merger synergies
$4.32
International
 Undertaking a strategic review of this
business in 2014
Commercial
Power
2%
-0% - 1%
 Renewables growth
 Sale of Midwest generation business to
1%
Dynegy; closed in 4Q ‘14 or 1Q ‘15
Other
 HoldCo interest expense and higher
effective tax rate
2013
2014
2016
(1) 2016 amount is illustrative based on 4-6% growth from original
midpoint of 2013 adjusted EPS guidance range of $4.20 to $4.45
per share
(1%)
4 - 6%
Our $16-$20 billion investment portfolio from 2014-2018
supports our long-term 4-6% earnings growth target (1)
14 | European Investor Visits
Base plan supported by incremental growth opportunities
4% Adjusted EPS growth
highly achievable
with base plan
0.5% Retail Load Growth
Wholesale Growth
Cost Control
Annual Growth Investments
(~$3 billion)
 Carolinas & Florida
generation
 Indiana T&D infrastructure
plan (SB 560)
 Regulated & Unregulated
Renewables
Optimize Commercial
Businesses
Incremental Growth
Initiatives
 NCEMPA Purchase
($1.2 billion investment by
2016)
 Atlantic Coast Pipeline (2)
($2 billion investment from
2016 – 2018)
 Accretive deployment of
Midwest generation sales
proceeds
 International strategic
review
 Accelerate growth in
Renewables
Retail Load Growth
>0.5%
 As of Sept. 30, rolling
twelve month trend is
~0.7%
 Remain confident in
longer-term growth
assumption of 1%
Illustrative only, boxes are not to scale
(1) Based upon the midpoint of the original 2013 adjusted diluted EPS guidance range of $4.20-$4.45.
(2) May change depending upon how project and DUK investment are financed
15 | European Investor Visits
Growth investments of $16-20B from 2014-2018
 T&D infrastructure investments
in Indiana (SB 560)
 Environmental compliance
Midwest
Carolinas
Non-regulated Businesses
 Atlantic Coast Pipeline
 Commercial renewables and
transmission projects
 NCEMPA asset purchase (1)
 W.S. Lee CCGT in SC
 Regulated solar investments in
NC (~128 MW)
 Environmental and NRC
compliance
 T&D investments
 Grid modernization
 New generation projects:
Florida
 Calpine CCGT acquisition or
peaking generation at Suwannee in 2017
 Hines uprate projects by 2017
 Citrus Co. CCGT in 2018
 Grid modernization
(1) Jointly owned plants include Harris Nuclear Plant, Brunswick Nuclear Plant, Roxboro Steam Plant Unit 4 and the Mayo Plant (totaling ~700 MW)
16 | European Investor Visits
Growing renewables portfolio (~$2 billion of investments through 2018)
Commercial Renewables
Regulated Solar
Rooftop solar installation in NC
Happy Jack Wind Farm
Wind
– Construction of Los Vientos III and IV wind projects
(400 MW capacity); long-term PPA with Austin Energy
– Expected online in 2015 and 2016
– Construction of Los Vientos V wind project (110 MW capacity);
long-term PPAs with Garland Power & Light, Greenville Electric
Utility System and Bryan Texas Utilities (BTU)
– Expected online in 2015
Solar
– ~110 MW under construction in North Carolina and California;
long-term PPAs with SO Cal. Edison and institutional customers
– Expected online in 2014 and 2015
North Carolina Solar RFP
– On Sept. 15th, company announced (1) PPAs with 5 new
projects (150 MW) and (2) the acquisition and construction of
3 projects (128 MW); all online by end of 2015
– 8 projects (278 MW) represent total commitment of $500M
– NCUC approval needed for CPCN transfer of owned projects
South Carolina Legislation
– New legislation passed addressing (1) cost recovery for
utility renewable investments, (2) a commission review of net
metering rates, and (3) solar leasing
– Potential 150 MW investment for DEC and DEP by 2021
17 | European Investor Visits
Regulated Utilities weather-normal volume trends
Rolling 12 month and YTD
weather-normalized load growth is
ahead of our 2014 expectations of
0.5% growth
Regulated Load Growth Trends
1.6%
 Growth by customer class:
― Residential +0.5%
― Commercial +1.1%
― Industrial +0.6%
 Excluding two DEP industrial closings,
growth improves to +0.9% in Q3 ‘14
0.5%
1.6%
0.7%
0.6%
0.0%
-0.1%
Q1 '13
Q2 '13
Q3 '13
Q4 '13
Q1 '14
Q2 '14
Q3 '14
Rolling Twelve Months (RTM)
18 | European Investor Visits
Residential customer growth continues to outpace usage
Number of residential customers
continues to consistently grow at
around 1% over the last 12 months
Residential Customer Trends
 Customer growth in our jurisdictions
was led by Florida:
― Florida +1.5%
― Carolinas +1.0%
― Midwest +0.5%
 Usage per customer trends remain
volatile and can be driven by:
― Changes in energy efficiency and
conservation
― Median household incomes and
unemployment trends
― Construction of multi-family housing
0.7%
0.8%
0.8%
1.0%
1.0%
0.9%
1.1%
Q1 '13 Q2 '13 Q3 '13 Q4 '13 Q1 '14 Q2 '14 Q3 '14
YoY Growth in Avg. # of Customers
19 | European Investor Visits
Wholesale sales growth provides earnings support (1)
 2014 total wholesale net margin is
expected to be ~$1.1 billion
 New long-term contracts in the
Carolinas
– New 20-year contract with NCEMC at
Duke Energy Progress began in 2013
– 18-year contract with Central EMC at Duke
Energy Carolinas delivers 115 MW of new
load in 2013, growing to 900 MW by 2019
 Incremental EPS growth (2):
 $0.07-$0.08 in 2014 and 2015
 $0.01-$0.02 in 2016
(1) As presented on February 18, 2014
(2) Based upon adjusted diluted EPS
Wholesale Net Margin
$1 B
2013
2014
2015
2016
Note: amounts not to scale
Carolinas provides ~70% of total wholesale net
margin in 2013 with Florida (~15%) and the
Midwest (~15%) making up the difference
20 | European Investor Visits
Non-fuel Operations & Maintenance (O&M) cost targets through 2016 (1)
9% merger savings to keep O&M flat through 2014
Cost Reductions,
by category
Figures rounded and chart not to scale
Emerging
Costs
Inflation
(~2.5% annually)
Fukushima
Costs
Cyber Security
New Generation
Flat O&M expense from 2014
through 2016
Benefits
& Other
IT Systems
& Operations
Supply Chain

Leverage our scale to drive
overhead costs lower through
work elimination and efficiency
improvements

Leverage our merger-related
system consolidation
investments to drive further
standardization and efficiencies

Manage headcount through
natural attrition

Reduce use of contract
workforce
$550 million
Functional
Consolidation
~$6 B
Our Objective
~$6 B
FLAT O&M THROUGH 2014
2011 O&M
Inflation
(2)(3)
Actual
(~2.5% annually)
Emerging
Costs
Cost Savings
Initiatives
Original 2014
O&M Forecast (1)(2)
(1) As presented on February 18, 2014
(2) 2011 actuals based on pro forma results of Duke Energy and Progress Energy
(3) O&M of ~$6 billion includes ~$500 million of recoverable costs. Excludes costs to achieve associated with Progress Energy merger
21 | European Investor Visits
Coal ash management activities moving forward
3Q 2014 Activities
Next Steps
– Implemented new internal Coal Combustion Products (CCP)
organization to oversee ash basin facility improvements,
maintenance, and beneficial re-use
– Developing excavation plans for four high-priority sites
(Dan River, Asheville, Riverbend and Sutton), as required by
Coal Ash Management Act
– Final risk classifications will inform ultimate closure method
and cost at other ten sites in North Carolina
– Developing comprehensive solutions at our remaining sites
outside of North Carolina (34 ash basins)
– Established a National Ash Management Advisory Board
(NAMAB), a panel of nine independent experts to help guide
the company’s strategy for permanent ash storage

Includes expertise from industry and academia

Skill sets include engineering, waste management, coal
technologies, environmental science and risk analysis
Coal Ash Management Act of 2014


Plans will vary based upon site-specific factors
Plans will be informed by final EPA rule, expected Dec. 2014
14 Sites in North Carolina (32 ash basins)
North Carolina law enacted in September
– Requires North Carolina ash basins to be closed over a 5 -15
year period based on NC DENR’s risk classifications
– Establishes a Coal Ash Management Commission to approve
closure methods and oversee implementation
– North Carolina Utilities Commission continues to regulate
cost recovery (1)
(1) Costs related to the Dan River discharge clean-up activities will be borne by the company
High Priority
Classification TBD
22 | European Investor Visits
Edwardsport IGCC plant operations on track
IGCC Rider Proceeding Status
Operational Status
– Plant began commercial operations in June 2013
– Performance testing is complete; reviewing test
data received with GE
 Achieved nameplate capacity of 618 MW
– Output and overall performance in 2014 has
improved since extreme winter weather in
January and February
 Achieved gasifier availability of ~75 percent in Q2
 Achieved gasifier availability of ~70 percent in Q3
(including planned maintenance outage in
September)
 Gasifier availability of ~90 percent in the peak
summer months of July & August
– Plant is well positioned to reliably serve
customers for decades to come
Tracker
Costs Thru
Filed
Status
IGCC-11
Mar. 2013
May 2013
Awaiting order; expected
in 1H 2015
IGCC-12
Sept. 2013
Dec. 2013
IGCC-13
Mar. 2014
June 2014
IGCC-14
Sept. 2014
Hearings scheduled for
February 2015, order
expected 1H 2015
Expect to file in December 2014
Fuel Adjustment Clause (FAC) Status
Tracker
Time Period
Filed
Status
FAC-99
Sept. – Nov. 2013
Jan. 2014
Approved in April
FAC-100
Dec. 2013 – Feb. 2014
Apr. 2014
Approved in June
FAC-101
Mar 2014 – May 2014
Jul. 2014
Approved in
September
– FAC-99 sub-docket being held in abeyance pending outcome
of the IGCC-12 and 13 proceedings
– December 2013-March 2014 fuel costs approved subject to
refund, pending outcome of the IGCC-12 and 13 proceedings
23 | European Investor Visits
Duke Energy key takeaways
Largest
U.S. utility
Substantial, diversified
regulated earnings and cash
flows
Attractive dividend yield
with growth commitment
Strong balance sheet
and credit profile
A solid, low risk long-term holding
24 | European Investor Visits
Appendix
25 | European Investor Visits
Business segment structure
DUKE ENERGY
REGULATED
UTILITIES
COMMERCIAL
POWER
Duke Energy Carolinas
North and South
Carolina
Duke Energy
Renewables
Duke Energy Progress
North and South
Carolina
Duke Energy
Retail (1)
Duke Energy Florida
Florida
Duke Energy Indiana
Indiana
Duke Energy Ohio
(including Duke Energy Kentucky)
Ohio T&D
Midwest Coal
Generation (1)
Ohio Gas
Distribution
Midwest Gas
Generation (1)
INTERNATIONAL
ENERGY
Kentucky Electric
and Gas
(1) Midwest Coal & Gas Generation and Duke Energy Retail are reflected in “Discontinued Operations” for GAAP reporting purposes.
26 | European Investor Visits
Update on key 2014 earnings guidance assumptions
Original 2014
assumptions (1)
2014 YTD
(thru 9/30/14)
$2,855
$2,346
International Energy
$430
$356
Commercial Power
$130
$77
Other
($215)
($171)
Duke Energy Consolidated
$3,200
$2,608
$1,650
$1,212
33 – 34%
32% (3)
Debt AFUDC and capitalized interest
$80
$55
AFUDC equity
$140
$99
$5,825 – $6,125
$3,836
707 million
707 million
($ in millions)
Adjusted segment income (expense) (2):
Regulated Utilities
Additional consolidated information:
Interest expense
Adjusted effective tax rate
Capital expenditures (4)
Weighted-average shares outstanding
(1)
(2)
(3)
(4)
As disclosed on February 18, 2014
Original 2014 adjusted net income assumptions based upon midpoint of the original adjusted diluted EPS guidance range of $4.45 to $4.60 per share
Expect full year 2014 adjusted effective tax rate between 32 and 33 percent
Includes debt AFUDC and capitalized interest
27 | European Investor Visits
Key 2014 earnings sensitivities
Driver
Regulated Utilities
International
Commercial Power
Consolidated
EPS Change
100 bps change in earned return on equity
+/- $0.39
$1 billion change in rate base
+/- $0.08
1% change in USFE&G volumes
+/- $0.10
10% change in BRL/US$ foreign exchange rate
+/- $0.03
$10/barrel change in brent crude oil prices
+/- $0.02
$10/MW-day change in PJM capacity prices
+/- $0.02
1% change in interest rates
+/- $0.07
1% change in assumed return on pension plan assets
+/- $0.07
1% change in pension discount rate
+/- $0.06
Note: EPS amounts based on 2014 share count of 707 million shares
28 | European Investor Visits
3Q 2014 Key Accounting Matters
Coal Ash Asset Retirement Obligation
Midwest Generation Business
– Accounting rules require the company to recognize an
Asset Retirement Obligation (ARO) liability of ~$3.4 billion in
3Q 2014 as a result of the NC Coal Ash Management Act of
2014
– Announced plans to exit the Midwest generation business in
February 2014 and recognized a $1.4 billion pre-tax impairment
in 1Q 2014 based on estimated market value
– In late August, announced agreement to sell business to Dynegy
for $2.8 billion
– In 3Q 2014:
– Obligation is capitalized on the balance sheet as PP&E
(active sites) and regulatory asset (retired sites)
– The ARO is estimated using a probability-weighted net
present value model for a number of closure scenarios
– The ARO will be adjusted over time, as new information
becomes available

Reversed ~$475 million of the previously recognized impairment, due to
higher than estimated fair value

The business is reflected as “Discontinued Operations” for GAAP
reporting purposes (for current and prior periods)

Midwest generation’s earnings in 2014 will be included in Duke Energy’s
adjusted EPS
29 | European Investor Visits
Primary 4Q 2014 EPS drivers (1)
Primary 4Q 2014 year-over-year EPS drivers (1)(2)
▼ Nuclear outage cost levelization benefits
▼ Lower results in Latin America
$3.69
~$0.80 ~$0.95
▼ Reduced COR amortization in Florida
▼ Normal weather
▼ Higher effective tax rate
▲ Higher PJM capacity prices
3Q 2014
YTD EPS(1)
Projected 4Q
2014 EPS(1)(2)
▲ Retail & wholesale load growth
4Q 2014 earnings are expected to decline from prior year;
expect full-year 2014 earnings between $4.50 and $4.65 per share (1)(2)
(1) Based upon adjusted diluted EPS
(2) Assumes normal weather
30 | European Investor Visits
Growth Investments
31 | European Investor Visits
Diverse set of growth initiatives across our jurisdictions
Infrastructure ($7-9 Billion)
Generation ($6-8 Billion)
Atlantic Coast Pipeline
 Potential $2 billion investment (1)
 2016 – 2018 construction
Indiana SB 560 Plan
 Requested IURC approval for
$1.9 billion investment
 2015 – 2021 implementation
NCEMPA Asset Purchase
 Potential $1.2 billion investment
Gas Combined Cycles
 $0.6 billion, Lee facility in SC
 $1.5 billion, Citrus Co. in Florida
Renewable generation
 ~$2 billion of commercial
renewables and regulated solar
Compliance ($3 Billion)
EPA regulations
 Existing and potential air, water
and waste regulations
Nuclear regulations
 NRC Fukushima-related
Grid and Cyber security
Growth capital investments of between $16-20 billion thru 2018
underpin long-term financial objectives
(1) Duke Energy’s 40 percent ownership interest in the total $4.5-5.0 billion project. Investment level will depend upon how the project and Duke investment are financed
32 | European Investor Visits
New generation projects
2018 Citrus County CC – Florida ($1.5 Billion Investment)


Major Generation Projects
($ millions)
1,640 MW CCGT, expected online in 2018
CPCN issued by FPSC in October 2014
2017 Lee CC – Carolinas ($600 Million Investment) (1)



750 MW CCGT, expected online in late 2017 (2)
Received CPCN in May 2014
Initiated sourcing of long lead time equipment
2017 Gas Capacity – Florida ($350 Million Investment) (3)


220 MW uprate at Hines, to be online by the end of 2017
CPCN issued by FPSC in October 2014

Acquisition of Calpine’s Osprey CC or additional CTs at
Suwannee (320 MW), expected online in 2017
Filings expected in 4Q 2014 or 1Q 2015

$600
$350
2015 Solar – Carolinas (~$250 Million Investment) (4)


Acquire and construct 3 projects (128 MW) by the end of 2015
Filed for approval of CPCN transfer from previous owner
(1) Represents Duke Energy’s 650 MW share of the project
(2) NCEMC to own ~100MW of 750 MW plant
(1)
$1,500
Florida
CCGT
Carolinas
CCGT
~ $250
Florida 2017
Capacity
Carolinas
Solar
Estimated expenditures to complete project (Including AFUDC)
(3) Cost estimate assumes construction of Suwannee CTs
(4) Represents cost of constructing three owned projects; excludes value of five PPA agreements
33 | European Investor Visits
Atlantic Coast Pipeline provides DUK investment opportunity
of ~$2 billion (1)
Joint Venture Ownership Structure
Parent Company
Ownership Percentage
45%
40%
10%
5%
– Total investment of $4.5 - 5 billion (3)
– Pipeline is over 90 percent subscribed; open
season launched to fill remaining capacity
– Duke Energy Carolinas and Duke Energy Progress
will enter into transportation agreements
(1) Investment level will depend upon how project and DUK investment are financed
(2) Project requires additional local, state and federal approvals other than those listed
(3) Excludes financing costs and expansion potential
Next Steps and Necessary Approvals (2)
Event
Timing
NCUC approval of affiliate
agreement
Fall 2014
Pre-filing with FERC
Fall 2014
File FERC application
Summer/Fall 2015
Obtain CPCN from FERC
Summer/Fall 2016
Begin construction
After receipt of CPCN
In-service
November 2018


– North Carolina Utility Commission (NCUC)
approved affiliate agreement between Carolinas
utilities and the pipeline (required due to Duke’s
ownership interest)
– Federal Regulatory Energy Commission (FERC)
to approve Certificate of Public Convenience
and Necessity (CPCN)
34 | European Investor Visits
Agreement in place to purchase NCEMPA’s joint ownership
– Agreement to purchase the North Carolina Eastern
Municipal Power Agency (NCEMPA) joint ownership
in several Duke Energy Progress plants (1)
– Purchase price of approximately $1.2 billion (2)
– Transaction requires approval from FERC, US
Department of Justice, NRC, and the Carolinas
utilities commissions
Harris Nuclear Plant
– DEP will enter into a full-requirements wholesale
contract to continue supplying power to NCEMPA
Next Steps

– Required to close transaction by the end of 2016
FERC Filing
Fall 2014
– Expect annualized EPS impact between $0.05 and
$0.10
File with Carolinas
Commissions
TBD
Final Approvals
TBD
Close Transaction
by end of 2016
(1) NCEMPA’s ownership interest includes Harris Nuclear Plant, Brunswick Nuclear Plant,
Roxboro Steam Plant Unit 4 and the Mayo Plant. NCEMPA owns approximately 700
megawatts of combined generating capacity in these plants.
(2) Subject to certain adjustments as set forth in the asset purchase agreement
35 | European Investor Visits
Duke Energy Indiana files $1.9 billion T&D infrastructure plan
– On August 29th, filed a seven-year T&D infrastructure
improvement plan with the Indiana Utility Regulatory
Commission (IURC) under the provisions of Senate Enrolled
Act 560
– Total investments of ~$1.9 billion over 7-year term
– Transmission & Distribution system modernization
– Advanced metering infrastructure (AMI)
– Economic Development and T&D support
– Project benefits
–
–
–
–
–
Improved reliability and safety
More efficient customer outage management
Enhanced information for customers
Quicker customer requested connects and disconnects
Energy savings
– Cost recovery (if approved)
–
–
–
–
Plan results in approximate 1% per year customer rate impact
80 percent of approved costs through a semi-annual rider
Remaining 20 percent deferred until next general rate case
Utility to file a general rate case by the end of the 7-year plan
Next Steps
Evidentiary Hearings
December 2014
IURC decision on filing
2Q 2015
Begin project work
Upon approval
36 | European Investor Visits
Regulated Utilities supplement
37 | European Investor Visits
Constructive Carolinas jurisdictions provide growth opportunities
Jurisdictional Details
 Total assets in rate base: ~$23.5 billion
 Allowed ROE : 10.2% in DEC-NC, DEC-SC and DEP-NC;
12.75% in DEP-SC
 Average Electric Customers: 3.9 million
 Annual Customer Growth: 1.1% (3Q14 vs. 3Q13)
Average Customer Rate (cents/kwh)(1)
US Average: 13.8
US Average: 12.0
US Average: 10.3
11.3 11.1
10.7
10.6
7.9 8.2 8.0
8.8
8.3 7.9 8.3 7.8
Constructive Environments
 Constructive settlements in all three rate cases in 2013
 Coal Ash Management Act of 2014 in NC
 Distributed Energy Resource Program Act of 2014 in SC
Economic Development
Residential
DEC - NC
Commercial
DEP - NC
DEC - SC
Industrial
DEP - SC
 Helped recruit ~$2.4 billion in capital investment and
approximately 5,500 new jobs to the Carolinas in 2014
 Notable sectors include Textiles, Automotive, and
Pharmaceuticals
Focus Areas





Enhance customer experience and communications
Implement provisions of Coal Ash Management Act
Achieve five-year fuel and joint dispatch savings commitment
Complete purchase of NCEMPA’s generation assets
Execute construction of Lee combined cycle
(1)
Duke Energy Carolinas
Duke Energy Progress
Overlapping Territory
EEI Typical Bills and Average Rates report, Summer, 2014; values based on typical bill
38 | European Investor Visits
Florida jurisdiction remains an attractive region for new customers
Jurisdictional Details




Total assets in rate base: ~$8.1 billion
Allowed ROE: 10.5%
Average Electric Customers: 1.7 million
Annual Customer Growth: 1.5% (3Q14 vs. 3Q13)
Average Customer Rate (cents/Kwh)(1)
US Average: 13.8
US Average: 12.0
12.5
US Average: 10.3
10.2
9.6
Constructive Environments (2)
 RRA ranks Florida as Above Average
 Comprehensive regulatory settlement in 2013
Economic Development
 Helped recruit ~$100 million in capital investment and
approximately 1,000 new jobs in 2014.
 Notable sectors include Advanced Manufacturing,
Pharmaceuticals, and Logistics
Residential
Focus Areas
Commercial
Industrial
Duke Energy Florida
 Improve customer experience and communications
 Execute on replacement generation needs
(1)
EEI Typical Bills and Average Rates report, Summer, 2014 ; values based on typical bill
(2)
RRA maintains three principal rating categories for regulatory climates: Above Average, Average, and Below Average
39 | European Investor Visits
Pro-business Midwest jurisdictions value healthy utilities
Average Customer Rate (cents/Kwh)(1)
Jurisdictional Details
 Total assets in rate base: ~$9 billion
 Allowed ROE
 Indiana: 10.5%
 Ohio/Kentucky: 9.84%
 Average Electric Customers: 1.6 million
 Annual Customer Growth: 0.5% (3Q14 vs 3Q13)
US Average: 13.8
US Average: 12.0
12.4
12.2
9.2
9.6
9.9
8.8
US Average: 10.3
9.0
8.8
8.0
Constructive Environments (2)
 RRA ranks Indiana as Above Average
 Indiana Senate Bill 560
 Ohio and Kentucky have constructive regulatory environments
Economic Development
Residential
Duke Energy Indiana
Commercial
Duke Energy Ohio
Industrial
Duke Energy Kentucky
 Helped recruit ~$500 million in capital investment and
approximately 3,500 new jobs in 2014
 Notable sectors include Advanced Manufacturing,
Pharmaceuticals, and Logistics
Focus Areas
 Execute smart grid deployments and transmission, distribution
and storage investment strategy (IN SB 560)
 Achieve positive outcomes from OH ESP filing, including new
distribution rider
 Sustain operational performance at Edwardsport IGCC
(1)
(2)
Duke Energy Indiana
Duke Energy Ohio/Kentucky
EEI Typical Bills and Average Rates report, Summer, 2014; ; values based on typical bill
RRA maintains three principal rating categories for regulatory climates: Above Average, Average, and Below Average
40 | European Investor Visits
Fuel and Joint Dispatch savings update
Fuel and Joint Dispatch (JDA) Savings
Guaranteed $687 million in fuel and joint
dispatch savings to Carolinas customers over
5 years (1)
– During 3Q 2014 achieved ~$50 million in
total savings
– ~$360 million in cumulative savings to date
– Achieved or locked-in ~82% of guaranteed
fuel and joint dispatch savings through
renegotiated contracts
Quarterly Savings Results ($ in millions)
$50
$400
$350
$40
$300
$250
$30
$200
$20
$150
$100
$10
$50
$-
$3Q '12 4Q '12 1Q '13 2Q '13 3Q '13 4Q '13 1Q '14 2Q'14 3Q'14
Fuel Savings [L]
JDA Savings [L]
Cumulative Savings [R]
Joint dispatch continues to deliver benefits to customers in the Carolinas
(1) Additional 18 months (6.5 years total) allowed to achieve savings if actual coal usage is lower than projected due to natural gas commodity prices
41 | European Investor Visits
Open Major Regulatory Proceedings (as of November 4, 2014)
Entity
Filing
Docket
number
Status
Intervener
filings
Staff Filing
Evidentiary
Hearings
Expected
Order
Ohio
2014 ESP
14-0841-ELSSO
Intervener and PUCO
staff testimony filed,
evidentiary hearing in
process
Sep. 26, 2014
Oct. 2, 2014
Oct. 22, 2014
1H 2015
Indiana
IGCC-11
43114-IGCC 11
Fully briefed, awaiting
order
Oct. 31, 2013
Oct. 31, 2013
Dec. 17, 2013
1H 2015
Indiana
IGCC-12
IGCC-13
43114-IGCC 12
43114-IGCC 13
Procedural schedule set
Dec. 15, 2014
Dec. 15, 2014
Feb. 2, 2015
1H 2015
Indiana
FAC Subdocket
38707-FC99S1
Held in abeyance pending
outcome of IGCC-12 and
IGCC-13
TBD
TBD
TBD
TBD
Indiana
7-year TDSIC
(SB 560)
44526
Procedural schedule set
Nov. 12, 2014
Nov. 12, 2014
Dec. 18, 2014
2Q 2015
South
Carolina
Net Metering
2014-246-E
Procedural schedule set
Dec. 11, 2014
Dec. 11, 2014
Feb. 3, 2015
1H 2015
42 | European Investor Visits
Pending environmental regulations
Rule overview
Potential impacts to Duke Energy
 Regulates Hazardous Air Pollutants (e.g., mercury & non-mercury HAPs)
 Compliance deadline April 16, 2015 with possible one-year extension
 DC Circuit Court upheld the rule in its entirety
 Supreme Court has been requested to review the DC Circuit Decision
 Additional air emissions control
equipment
 Timing of unit retirements
 Execute strategy as planned
 Regulates NOx and SO2; D.C. Circuit issued a stay in December 2011
 D.C. Circuit lifted the stay on rule in October 2014
 Phase I of CSAPR Rule to go into effect January 1, 2015
 Additional issues are still under review by the D.C. Circuit
 No additional CapEx investment
anticipated
Greenhouse Gas New
Source Performance
Standard (New
Sources)
 Proposed rule published Jan 8, 2014; expect final rule 2015
 Regulation of CO2 emissions for new pulverized coal, IGCC, and natural
gas combustion turbine and combined-cycle facilities
 Partial CCS required for coal
 Could affect technology selection for
future new generation
 Potential to affect long-term fuel
diversity
Greenhouse Gas New
Source Performance
Standard (Existing
Sources)
 Proposed rule published June 18, 2014; comments due December 1, 2014  States to develop regulations based
on final EPA guidance
 EPA targeting June 1, 2015 to finalize
 A broad ranging proposal for limiting CO2 emissions from existing coal-fired  Outcome of proceedings unknown
power plants
Mercury and Air
Toxics Standards Rule
(MATS)
Cross-State Air
Pollution Rule
(CSAPR)
43 | European Investor Visits
Pending environmental regulations, cont.
Rule overview
Coal Combustion
Residuals Rule (CCR)
 Regulates coal combustion residuals (e.g., coal ash)
 Rule proposed in June 2010
 EPA expected to finalize the rule by December 19, 2014
 Targets minimizing the impact to aquatic life from the location and
operation of cooling water intake structures
316(b) Cooling Water
Intake Structures Rule  Final rule effective October 14, 2014
 Litigation has been filed challenging the rule
Revisions to the
Steam Electric
Effluent Limitations
Guidelines (ELG)
Potential impacts to Duke Energy
 Close or upgrade wet ash ponds
 Convert wet ash handling to dry
 New wastewater treatment systems
 Modification of existing cooling water intake
structures or cooling tower installations
 Site specific evaluations will occur over the
next 3 to 5 years with modifications, if
necessary, expected to occur in 5 to 8 years
 Potential capex range of $400 - $500 million
 Establishes technology based wastewater discharge limits for steam
 Convert wet ash handling to dry
electric generating facilities
 New/upgraded wastewater treatment
 Applies to coal, gas-fired, combined cycle, and nuclear, with proposed
systems
revisions primarily affecting coal
 Coordination with the CCR rule expected
 Proposed rule published on June 7, 2013
 EPA to finalize rule in September 2015 per revised settlement agreement
44 | European Investor Visits
International Energy supplement
45 | European Investor Visits
International strategic review
Strategic review of International is underway
International owns and operates
4,600 MW of net generation
– Wide range of options being considered
– Includes optimizing offshore cash and development of
growth plan; $1.6 billion offshore as of September 30
– Expect to complete review late 2014 or early 2015
Earnings Contribution by Segment (1)
Commercial
Power
2%
Regulated
Utilities
86%
Peru
16%
NMC
27%
Other
3%
International
12%
Brazil
54%
414 MW Chavantes Hydro Plant ~ Brazil
(1) Based upon 2013 actual adjusted net income. Amounts exclude the “Other” segment.
46 | European Investor Visits
Brazil’s reservoir levels – SE region
Reservoir Level (% Maximum Volume)
90
80
70
62.45
50
60.83
43.18
40
30
45.48
28.86
55.06
54.13
40.30
34.60
36.30
38.80
37.40
48.71
45.05
41.62
43.18
36.30
37.46
34.40
30.30
25.30
20
10
2000
Dec
–
63.75
60
0
–
62.90
Jan
Feb
2001
Mar
Apr
2012
May
Jun
2013
Jul
Aug
Sep
2014
Oct
Nov
Dec
In 3Q 2014, the country’s thermal generation units continue to be used to preserve the nation’s reservoir levels and meet customer demand.
Brazil has more thermal generation compared to 2001.
In anticipation of low reservoir levels and high electric demand, we strategically reduced our targeted 2014 contracted percentage, and have
taken similar actions for 2015.
47 | European Investor Visits
Duke Energy International – National Methanol Company (NMC)
– Background
– NMC is a producer of methanol and MTBE in Saudi Arabia
– Current ownership: Saudi Basic Industries Corporation (SABIC) - 50%,
Celanese - 25%, and Duke Energy - 25%
– JV agreement extended to 2032 (effective April 1, 2010)
– Upon NMC finishing construction of a 50,000 ton polyacetal facility, DEI’s
share of NMC distributions will decrease to 17.5% (expected in mid 2016)
– DEI’s share of earnings from NMC are expected to be reduced by approximately
25-30% on an annualized basis due to the change in ownership percentage
– Strong Historical Earnings and Cash Flows
– DEI’s share of NMC’s earnings has historically contributed
20-30% of DEI’s Adjusted Net Income
– NMC’s earnings are positively correlated with brent crude oil
– An approximate $10/barrel change in the average annual price of brent crude oil has
roughly a US$0.02 EPS impact annually
48 | European Investor Visits
Commercial Power supplement
49 | European Investor Visits
Duke Energy Renewables – Grown to scale since entry in 2007
Happy Jack Wind Farm, Wyoming
Current Operating Portfolio
of 1,750 net owned MW (1)
Wind – 1,625 MW
Solar – 120 MW
Low risk profile with long-term PPAs –
Continue wind investment and accelerate growth in solar
(1) 100-percent capacity of the entire portfolio totals 2,200 MW. A full list of generation facilities can by found at http://www.duke-energy.com/pdfs/Duke-Energy-Generation-Portfolio.pdf
50 | European Investor Visits
Commercial transmission announced project pipeline
Project /
In-service date
Total Cost of
Project
Milestones
Achieved
Next
Milestone
2014-2016
(Total ~$100M)
2017 & beyond
Pioneer – JV formed in 2008 with AEP
MISO Segment
$330 million
70 miles 765kV lines in Indiana (2018 in-service)
FERC/MISO approved
Routing/ siting
PJM Segment
$620 million
175 mi 765kV lines in Indiana
FERC approved
Submitted plan to PJM
Secure inclusion in
PJM expansion plan
~$40 million
~$150 million
DATC – JV formed in 2011 with American Transmission Co. (ATC)
Path 15
$56 million
Closed acquisition
Service rights on 500kV line in California (2004 in-service)
File FERC rate case
Feb. 2014
Zephyr
$3.5 billion
850 mile 500kV NVDC line connecting 3,000MW
of WY wind to SW load centers (2020 in-service)
FERC rate authority; first
round of public outreach
File Federal Plan of
Development w/ BLM
MW Portfolio
$4 billion
8 projects in 5 states (2022-2024 in-service)
FERC incentive treatment;
submitted to MISO/PJM
MISO/PJM approval
~$1 billion
~$875 million
$ represent Duke Energy’s share of capital requirements
Anticipate potential capital expenditures of up to ~$2 billion over 10 years
51 | European Investor Visits
Financing assumptions
52 | European Investor Visits
Simplified financing structure
Duke Energy
(HoldCo)
Cinergy Corp.
(HoldCo)
Duke Energy
Carolinas
Duke Energy
International
Duke Energy
Ohio
Duke Energy
Indiana
Duke Energy
Kentucky
Duke Energy
Renewables and
Other
Progress Energy
(HoldCo) (1)
Duke Energy
Progress
Duke Energy
Florida
Commercial Paper and LT Financings
Money Pool and LT Financings
Project / International Financings
(1) Progress Energy HoldCo has long-term debt outstanding, but no future issuance is planned at this financing entity
53 | European Investor Visits
Progress on 2014 financing plan (as of November 4, 2014) (1)
($ in millions)
$2,000
$1,500
$1,000
$500
$-
Duke
Energy
(HoldCo)(2)
Full-year Maturities
Duke
Energy
Progress (3)
Duke
Energy
Florida (3)
Expected LTD issuances
International
Renewables
Expected CP issuances
Duke
Energy
Ohio
Duke
Energy
Carolinas
Completed issuances
(1) Debt issuances and maturities exclude potential pre-funding of 2015 needs. Holdco issuances included funding to pay-down ~$400 million of DE Ohio tax-exempt debt related to the
Midwest Generation asset transfer.
(2) Expected to be achieved through issuances of commercial paper; a portion of the proceeds from the sale of Midwest Generation will be used to reduce outstanding commercial paper.
(3) Full year maturities at DE Progress and DE Florida include ~$450 million and ~$250 million of expected calls on tax-exempt debt, respectively.
54 | European Investor Visits
Access to capital – 2014 long-term debt financing activity
Amount
($ in
millions)
Entity
Date Issued
Credit Ratings
(M/S&P/F)
Term
$225
DE Florida
March 2014
N/A
3 Year
$650
$1,000
DE Progress
HoldCo
Type
Rate
Accounts Receivable Initial variable rate of
securitization
~0.85%
Aa2 / A / A+
$400 million – 30 year First Mortgage Bond
Aa2 / A / A+
$250 million – 3 year
Floating Rate Notes
Initial variable rate of
~0.44%
A3 / BBB / BBB+
$600 million – 10 year
Senior Notes
3.75% -fixed rate
A3 / BBB / BBB+
$400 million – 3 year
Floating Rate Notes
Initial variable rate of
~0.60%
March 2014
April 2014
4.375% fixed rate
$218
DEI Brazil
June 2014
Baa3 / BBB-
$108.5 million – 5 year
$109 million – 7 year
Unsecured
Amortizing Notes
Initial variable rate of
~12.30%
$129
DE
Renewables
July 2014
N/A
22 year final term
(12.7 year average life)
Senior Secured
Amortizing Notes
5.34% fixed rate
55 | European Investor Visits
Liquidity summary (as of September 30, 2014)
($ in millions)
Duke
Energy
(1)
$
Master Credit Facility
Less: Commercial paper (2)
Outstanding letters of credit (LOCs)
Tax-exempt bonds
$
Available capacity
Cash & short-term investments
2,250
Duke
Carolinas
Duke
Progress
$
$
1,000
750
Duke
Florida
$
Duke
Indiana
650
(784)
(300)
(27)
-
(56)
(4)
(2)
-
(35)
-
1,410
$
661
$
721
$
$
700
Duke
Ohio
$
Duke
Kentucky
550
$
100
Total
$
6,000
(163)
-
(4)
(1)
(1)
-
-
(64)
-
(81)
-
-
(116)
649
$
455
$
550
$
96
(1,278)
$
(3)
Total available liquidity
4,542
328
$
4,870
(1) Master Credit Facility supports tax-exempt put bonds, LOCs and the Duke Energy commercial paper program of $4 billion
(2) Includes permanent layer of commercial paper of $450 million, which is classified as long-term debt
(3) Excludes certain cash and short-term investments in foreign jurisdictions of approximately $1.6 billion
56 | European Investor Visits
Strength of balance sheet supports credit metrics and ratings
Credit metrics summary
(As of November 6, 2014)
2014E
Target
FFO / Debt
19%
>17%
FFO Interest Coverage
5.3x
>3.5x
DUKE ENERGY
Debt to Capitalization
~49%
<50%
Senior Unsecured Debt
Commercial Paper
Holdco Debt / Total Debt
~30%
≤ 30%
Holding company
Fitch
Moody's
S&P
Stable
BBB+
F-2
Stable
A3
P-2
Positive
BBB
A-2
Stable
Aa2
Stable
Aa2
Stable
A1
Stable
Aa3
Stable
A2
Stable
Baa1
Positive
A
Positive
A
Positive
A
Positive
A
Positive
A
Positive
BBB+
Operating companies
Liquidity summary as of September 30, 2014 ($ in billions)
DUKE ENERGY CAROLINAS
Senior Secured Debt
$1.5
DUKE ENERGY PROGRESS
Senior Secured Debt
DUKE ENERGY FLORIDA
Senior Secured Debt
$6.0
$4.8
$0.3
Domestic cash Master
and short-term
Credit
(1)
investments
Facility
DUKE ENERGY INDIANA
Senior Secured Debt
DUKE ENERGY OHIO
Utilized
amount
Available
liquidity
(1) Excludes cash and short-term investments in foreign jurisdictions of ~$1.6 billion
Senior Secured Debt
DUKE ENERGY KENTUCKY
Senior Unsecured Debt
Positive
A+
Stable
A+
Stable
A
Stable
A
Stable
A
Stable
A-
No equity issuances planned through 2016
57 | European Investor Visits
Other
58 | European Investor Visits
Sustainability Ratings and Rankings
2010
2011
2012
2013
2014
Score: 76
North America and
World Indices
Score: 78
North America and
World Indices
Score: 73
North America Index
Score: 78
North America Index
Score: 75
North America Index
(9th consecutive year)
-
ESG Disclosure
Score: 58.9
(Highest among
peers)
ESG Disclosure
Score: 68.3
(Highest among
peers)
ESG Disclosure
Score: 68.7
(Highest among
peers)
Rank: 43
Rank: 97
Rank: 35
(5th
U. S. 500 Green Rankings
Rank: 26
consecutive year)
Rank: 70
Global 100
Most Sustainable
Corporations
Not Listed
Not Listed
Not Listed
-
-
On Sustainable Utility
Leaders Index
Best In Class
Sustainability
Achievement Award
-
Sustainability Leader
Rank #3, overall
Sustainability Leader
Rank: 486
(# 24 in our industry)
Rank: 382
(# 9 in our industry)
Rank: 409
(# 10 in our industry)
ESG Disclosure
Score: 66.8
Not Listed
Rank: 47
Global 100
Most Sustainable
Corporations
Top-Ranked Energy
Company
-
Rank: 159
(# 6 in our industry)
(1) Duke/Progress Composite Score
59 | European Investor Visits
Investor Relations App
– Free mobile app for Investor Relations materials
now available for iPhone, iPad, and Android
mobile devices
– The Duke Energy app provides mobile access to
commonly used IR materials, including:
–
–
–
–
SEC Filings
Earnings Materials
Company Presentations
Press Releases
– Search for “Duke Energy Investor Relations” in
the app store or scan the QR Code
60 | European Investor Visits
For additional information on Duke Energy, please visit: www.duke-energy.com/investors