Duke Energy business segments
U.S. Franchised Electric and Gas
||U.S. Franchised Electric and Gas, which operates in North Carolina, South Carolina, Indiana, Ohio and Kentucky, is our largest business segment and our primary source of earnings growth. We expect this segment to represent approximately 79 percent of forecasted 2007 ongoing total segment earnings before interest and taxes (EBIT).* It includes:
- A $16 billion retail rate base
- 3.9 million electric customers
- 500,000 gas customers in Ohio and Kentucky
- 47,000 square miles of service territory
- 28,000 megawatts of regulated generation.
||Duke Energy’s Commercial Power business owns and operates unregulated power plants, primarily in the Midwest. Almost all of the results for this business come from sales to retail customers in Ohio under that state’s Rate Stabilization Plan. Also in this segment is Duke Energy Generation Services (DEGS), which develops, owns and operates electric generation sources that serve large energy consumers, municipalities, utilities and industrial facilities. We expect this segment to represent approximately 7 percent of forecasted 2007 ongoing total segment EBIT.* It includes:
- 8,100 megawatts of unregulated generation, most of which is dedicated to regulated customers.
Duke Energy International
||Duke Energy’s international electric generation operations are located in Central and South America. We expect this segment to represent approximately 11 percent of forecasted 2007 ongoing total segment EBIT.* It includes:
- Approximately 4,000 megawatts of generation, primarily hydroelectric power, in six countries: Argentina, Brazil, Ecuador, El Salvador, Guatemala and Peru.
||Formed more than 40 years ago by Duke Energy, Crescent Resources manages land holdings and develops high‑quality commercial, residential and multi‑family real estate projects. We expect this segment to represent approximately 3 percent of forecasted 2007 ongoing total segment EBIT.* In 2006, Duke Energy worked with Morgan Stanley Real Estate Fund to create an effective 50/50 joint venture.
- Crescent Resources is in 10 states, primarily in the southeastern and southwestern United States.
Taking the U.S. Franchised Electric and Gas and Commercial Power segments together, we expect more than 85 percent of Duke Energy’s forecasted 2007 ongoing total segment EBIT will come from sales to regulated customers.
*2007 forecasted ongoing total segment EBIT excludes results for the operations labeled Other.