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.
Customer
Benefits:
- Fuel savings and joint dispatch efficiencies for customers in the Carolinas
- Improved operating efficiencies, over time, for all regulated customers
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
Employee
Benefits:
- Expanded career growth opportunities
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.”