Looking back. Looking forward.
2006 was a transformational year for Duke Energy. By taking decisive actions, we lowered our risk profile and repositioned the company. As a leading pure-play electric company with a strong balance sheet, we are in a favorable position to achieve our 2007 goals, which will drive earnings and dividend growth over the long term.
2006 Major Achievements
- Merged with Cinergy to increase the scale and scope of our power business.
- Reduced our risk profile by selling our unregulated power plants outside the Midwest and by selling our Commercial Marketing and Trading business.
- Formed a joint venture with Morgan Stanley Real Estate Fund for Crescent Resources.
- Repurchased $500 million of stock.
- Acquired, filed for certificate, or announced our intent to build new generation assets throughout our five states. We estimate that we will need to increase our generating capacity by approximately 6,400 megawatts over the next 10 years.
- Announced numerous expansions of our gas transmission system.
- Achieved our 2006 employee incentive target.
- Spun off Spectra Energy on Jan. 2, 2007.
Goals for 2007*
- Establish the identity and culture of the new Duke Energy, unifying our people, values, strategy, processes and systems.
- Optimize our operations by focusing on safety, simplicity, accountability, inclusion, customer satisfaction, cost management and employee development.
- Achieve public policy, regulatory and legislative outcomes that balance our customers’ needs for reliable energy at competitive prices with our shareholders’ expectation of superior returns.
- Invest in energy infrastructure that meets rising customer demands for reliable energy in an efficient and environmentally sound manner.
- Achieve 2007 financial objectives and position the company to meet future growth targets.
*See the 2007 Duke Energy Charter on page 9.