Our Strategic Focus — 2010 and Beyond
- Retire and replace older fossil generating units with new, cleaner-coal, lower-emitting gas units and renewable energy to meet future peak demand
- Replace analog grid with a digital smart grid to increase reliability and energy efficiency, and to reduce costs
- Maintain the high reliability of our generation fleet and distribution system
- Improve customer satisfaction
- Aggressively manage costs
state policies; achieve
- Achieve timely and constructive recovery of investments, and close the gap between allowed and earned returns
- Leverage energy efficiency framework that allows us to earn returns on energy efficiency investments, reducing the need for new power plants
- Achieve workable federal legislation to regulate carbon emissions
Early 2010 Progress
- Achieved nonfuel base-rate increase settlements in North Carolina, South Carolina, Ohio and Kentucky
- Energy efficiency framework approved in Ohio, North Carolina, South Carolina and Indiana
- Deploying smart grid in Ohio in early 2010
Frequently Asked Questions
Q: How will your modernization strategy lead to revenue and earnings growth?
A: This strategy is based on investing capital today to replace older, inefficient and higher-emitting fossil generating plants, and to build a smarter grid to help us prepare for a lower-carbon, cleaner-energy future. This prudent investment of capital will increase our rate base and, with constructive regulation, it will lead to revenue and earnings growth.
Q: Why are you investing significant capital in new power plants when load growth has fallen?
A: We build plants to meet the long-term needs of our customers. Although the recessionary economy has impacted our near-term load, we must prepare for the future when demand growth returns. Regardless of the recession, we will need additional capacity to meet our peak demand in the future. In both the Carolinas and the Midwest, we have not built a new baseload power plant since the 1980s. The new cleaner-coal and gas-fired generating units we are building will replace the older fossil plants we anticipate retiring over the next decade.
Q: How do you intend to achieve constructive regulatory outcomes?
A: We have a track record of recovering our investments through regulatory proceedings with an approach that balances the needs of all of our stakeholders — and involves all parties in negotiations to reach constructive settlements. Our current focus is to build support for closing the gap between the time we invest and the time it takes to recover our investment.
Q: Why is operational excellence significant for meeting financial goals?
A: Operating our plants and system with high availability and efficiency, while also providing excellent service at affordable rates, is necessary to build customer satisfaction and regulatory support. Our commitment to operational excellence demonstrates our discipline in allocating capital to achieve top-tier performance.
Q: Are you identifying other revenues beyond your traditional business?
A: We are working to grow revenues outside the traditional electric sales business. These new sources include energy efficiency products and services, wholesale origination (supplying power to rural electric co-ops and municipalities) and our economic development efforts.