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Creating the Leading U.S. Utility

On January 10, 2011, Duke Energy and Progress Energy announced an agreement to combine their companies. Subject to shareholder and regulatory approval, this merger will create the nation’s largest utility, with more than 7 million customers in six service territories. It is targeted to close by the end of 2011.

Expected
Customer
Benefits:
  • Fuel savings and joint dispatch efficiencies for customers in the Carolinas
  • Improved operating efficiencies, over time, for all regulated customers
Expected
Investor
Benefits:
  • Earnings accretion in the first year of the merger 1
  • Strong credit ratings, balance sheet, cash flow, and dividend
  • Long-term earnings growth target of 4 to 6 percent 1
Expected
Employee
Benefits:
  • Expanded career growth opportunities

The chart of key merger statistics.

Notes: All data as of 12/31/2010.
1Based on adjusted diluted earnings per share.
2Excludes purchased power. Duke Energy and combined amounts exclude approximately 4 gigawatts (GW) of Duke Energy International assets.
3Total assets are a summation of the two stand-alone companies and do not include any pro-forma purchase accounting adjustments from this transaction.
4Earnings before interest and taxes (EBIT); excludes Duke Energy operations labeled as “Other,” and Progress Energy operations labeled as “Corporate and Other Businesses.”