Our History
As one of the largest electric power companies in the United States, Duke Energy is at the forefront of new beginnings. We’re investing in more efficient power plants, renewable energy, smart grid technologies, and innovative energy efficiency programs and services. But while Duke Energy is a company that knows where it is going, we’re also one that never forgets the people and the events that got us where we are today.
The Beginning:
Growing the South’s Economy
Duke Energy’s history began with the Catawba Power Company in the early 1900s. Three visionaries, Dr. W. Gill Wylie, James Buchanan Duke and William States Lee, founded the company to spur economic revival of the Carolina countryside. They felt the South’s heavy dependence on agriculture was prohibiting growth of other industries. By developing an integrated electric system of hydro-powered generating stations, they envisioned linking customers by transmission lines – and creating new opportunities for economic growth.
They took steps toward this goal in 1904 when the first power plant, Catawba Hydro Station in South Carolina, began providing electricity to Victoria Cotton Mills in Rock Hill, S.C. Over the next several years, the company’s hydroelectric fleet continued to grow to serve not only commercial textile mills, but the region’s growing appetite for the conveniences that electricity could provide.
The company’s leaders also felt strongly about giving back to the communities they served. Their strong philanthropic commitment advanced the region’s quality of life by funding health care and education in the Carolinas. It’s a tradition that lives on today. The Duke Energy Foundation supports education, health and human services, leadership development and volunteerism in the communities where it operates.
Economic Boom Times
The economic boom after World War II brought unprecedented demand for electric power. The thriving economy helped fuel demand for modern-day conveniences. Fancy refrigerators, range-top ovens, convertible automobiles and televisions became middle-class staples. The increased demand prompted a shift to coal-fired generation.
This era was a true boom time for energy-related industries. Tremendous expansion and growth occurred in electric and natural gas companies. Duke Power was no exception, and the company launched a massive construction program.
By the mid-1950s, Duke Power was looking ahead to nuclear power as a clean, safe and economical alternative for meeting growing electric energy needs. The first nuclear project, the Keowee-Toxaway Project, was launched in 1965. The project added the company’s first nuclear plant and a pumped-storage hydro plant. The nuclear plant was completed in seven years – at a cost less than half the industry average. The project earned Duke Power its first of three Edison Awards, the power industry’s highest honor.
After the 1979 Three Mile Island incident in Pennsylvania, Duke Power President Bill Lee led the creation of the Institute of Nuclear Power Operations, which strengthened and standardized the industry’s nuclear safety and training programs. Lee again took the lead after the 1986 Chernobyl accident in the Soviet Union, when he organized the World Association of Nuclear Operators. Both organizations helped restore public confidence in nuclear power as a safe and plentiful source of energy.
The Competitive Era
The 1990s ushered in a trend to deregulate the natural gas industry in the United States, culminating in the “unbundling” of natural gas transportation, gathering and storage services from the government-regulated pipeline industry. PanEnergy Corp, a central player in the natural gas industry, quickly established a competitive position.
New gas generation technology brought unprecedented synergies for the electric and natural gas industries in the area of merchant generation. Duke Power developed a competitive mindset, and saw natural gas not as a competing fuel, but as an opportunity. Duke Power and PanEnergy merged in 1997 to create Duke Energy. The new company made energy, moved energy, managed energy and marketed energy. During this same time, The Cincinnati Gas & Electric Co. and PSI Energy Inc. merged in 1994 to form Cinergy Corp. Cinergy, a major energy player in the Midwest, served 1.5 million electric customers and about 500,000 gas customers in Ohio, Indiana and Kentucky.
In 2006, Duke Energy and Cinergy Corp. joined hands. The company retained the Duke Energy name and expanded its service area into Ohio, Kentucky and Indiana.
On Jan. 3, 2007, Duke Energy spun off its gas business to form Spectra Energy. The new company’s operations primarily included natural gas transmission, storage, distribution, gathering and processing. Since the spinoff, the majority of Duke Energy’s revenue has come from its electric operations in North Carolina, South Carolina, Kentucky, Ohio and Indiana.
Building a Bridge to a Low-Carbon Future
Duke Energy is looking to new technologies to power its communities in the 21st century. Although one of the largest emitters of carbon dioxide in the United States, Duke Energy is committed to decarbonizing its generation fleet by building a bridge to a low-carbon future.
The company’s two newest plants, currently under construction in Edwardsport, Ind., and Cliffside, N.C., are models for clean and energy efficient production using advanced clean-coal technologies. In addition, Duke Energy is pursuing regulatory approval for the new William States Lee III Nuclear Station in Cherokee County, S.C., and is considering the possible expansion of its nuclear fleet into the Midwest.
Duke Energy is aggressively adding renewable energy sources to its existing portfolio. It has agreed to purchase the entire electricity output of one of the nation's largest photovoltaic solar farms, to be built north of Charlotte in Davidson County, N.C. The company has also formed ADAGE, an innovative venture with AREVA, to develop green biomass energy solutions made from wood waste. And Duke Energy is developing wind farm assets across the central and western U.S. – with thousands more megawatts of potential wind generation projects in the pipeline.
Improved energy efficiency is also in the company’s spotlight. It considers energy efficiency the “fifth fuel” – and the first choice in meeting growing energy needs. Since 2006, Duke Energy has been a leader in deploying smart grid technologies to create a digital, interconnected network that delivers new ways for its customers to save energy, money and the environment. Smart grid technologies provide more automation, like remote metering and the exchange of near real-time information between Duke Energy and its customers. For the first time, Duke Energy customers will have detailed information about their energy use. This helps customers conserve energy, and helps Duke Energy reduce the need to build additional generating plants.
Today, Duke Energy is looking at energy differently. The company is on its way to crossing the bridge to a low-carbon future – and providing solutions that help its customers and communities become the most energy efficient in the world.
