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Greenhouse Gas Reduction Measures

Greenhouse Gas Reduction Fund – Efficiency Begins at Home

Duke Energy promotes energy efficiency as an essential part of the solution for curtailing greenhouse gas emissions. To emphasize our commitment, we established a Greenhouse Gas Reduction Fund to stimulate innovation and energy efficiency within our own operations.

The fund’s goal is to help reduce, avoid or sequester 10 million tons in CO2 equivalents (CO2e)* by 2015. In 2007, we awarded $3 million to fund 46 efficiency projects at generating stations and office facilities, as well as renewable energy projects. Those projects resulted in the avoidance of approximately 300,000 tons of CO2e in 2007. Many of the projects will accrue additional tons avoided in 2008 and beyond.

In 2008, another $3 million has been allocated to fund 36 projects that will enhance efficiency and reduce the company’s carbon footprint.

Greenhouse Gas Reductions in Gas Operations

Duke Energy provides natural gas and electric service in the Greater Cincinnati region. For many years, we have purchased landfill gas that has been extracted from the Rumpke Landfill and processed. In 2007, the largest “landfill gas to pipeline” plant in the world was completed by GSF Energy LL C. The new plant significantly increases the productive capabilities at the landfill. Duke Energy will buy all of the landfill gas from this project, equivalent to the needs of about 17,500 homes.

Capture and sale of landfill gas, which is about half methane and half carbon dioxide, not only supplements gas supplies from traditional pipelines for Duke Energy customers; it also prevents a significant amount of greenhouse gas from being released to the atmosphere. The methane is piped to our customers and the captured CO2 is sold to other businesses.

* CO2 equivalent: CO2e is a measure of the global warming potential over a period of time (typically 100 years) for different gases. CO2 is given a reference value of 1 and all other gases are multiples of CO2. For example, one ton of methane has the global warming potential of 23 tons of CO2.