Our Strategic Focus — 2010 and Beyond
to earn competitive
- Deploy capital to maintain an approximately 75 percent regulated, 25 percent commercial business mix
- Achieve appropriate risk-adjusted returns in our commercial businesses
- Issue $400 million in equity in 2010 from dividend reinvestment plan (DRIP) and other internal plans
- Maintain current investment-grade credit ratings
- Maintain strong liquidity
- Achieve a long-term adjusted diluted earnings per share (EPS) compound annual growth rate of 4 to 6 percent off a base of 2009 adjusted diluted EPS of $1.22
- Achieve 2010 adjusted diluted EPS of $1.25 to $1.30
- Grow dividend at a rate slower than the growth in adjusted diluted EPS
Early 2010 Progress
- Grew dividend approximately 4 percent in 2009
- Issued $3.75 billion of fixed-rate debt at an average rate of 5.2 percent during 2009
- Since 2008, issued more than $7 billion of fixed-rate debt at attractive rates and terms, and issued $600 million in equity through DRIP and other internal plans
Frequently Asked Questions
Q: How will Duke Energy maintain its financial strength?
A: Our financial objectives include growing our earnings and dividends, allocating capital efficiently and earning competitive returns, while maintaining the strength of our balance sheet. Our financial strategy supports our historical focus of providing affordable, reliable and increasingly clean energy to our customers, while earning good returns for our investors.
Q: How do you balance short-term economic pressures with the long-term investments needed to meet the needs of your customers, and achieve business growth?
A: We achieve that balance by maintaining flexibility in our allocation and spending of capital. In 2010, about $3 billion is committed to building our two cleaner-coal plants and two gas plants in our regulated operations, and renewable wind and solar projects being built under long-term contracts in our commercial businesses. About $2 billion is allocated for customer additions and maintenance costs. In the short term, we have some flexibility on the timing of this spend.
We have the greatest flexibility in allocating our discretionary capital. Our 2010 plan includes $200 million of growth capital that has not yet been designated to specific projects. Additionally, we have broad ranges for discretionary spending in 2011 and 2012, the years in which we will be deploying more capital to complete the fleet and grid modernization projects in our regulated operations. As we demonstrated in 2009, we have the flexibility to increase or decrease this discretionary spending as the environment dictates.