Duke Energy Corporation (Holding Company) · NYSE:DUK
Duke Energy Corporation (Holding Company) — Progress Energy Florida — Corporate Update (January 2012)
13 slides from Duke Energy Corporation (Holding Company)'s corporate update, Jan 23, 2012
Slide 1: Progress Energy Florida 2012 Rate Settlement Analyst Call
Progress Energy Florida 0 Rate 2012 ate Sett Settlement e e t Analyst a yst Ca Call January 23, 2012
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding F Forward-Looking d L ki Statements St t t This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The matters discussed in this document involve estimates, projections, goals, f
Slide 3: Progress Energy Representatives
P Progress Energy E Representatives R t ti Bill Johnson Chairman, President and Chief Executive Officer Vincentt Dolan Vi D l President and Chief Executive Officer g Progress Energy gy Florida Mark Mulhern Chief Financial Officer 3
Slide 4: Progress Energy Florida Settlement
P Progress Energy E Florida Fl id S Settlement ttl t Background Key Settlement Terms Repair / Retire Scenarios Financial Implications NEIL Considerations C Conclusion 4
Slide 5: Background
B k Background d Crystal River 3 (CR3) Three-phase Three phase PSC prudence review • Phase 1: Original steam generator replacement plan through October 2009 delamination • Phase 2: Future decision to repair or retire • Phase 3: Actions to repair 2009 delamination through final disposition of pla
Slide 6: Key Settlement Terms
K S Key Settlement ttl t Terms T Crystal River Unit 3 (CR3) Retains flexibility on decision to repair or retire unit Resolves prudence issues from steam generator replacement project inception through the date Commission approves settlement Resolves CR3 replacement fuel and purchased power i
Slide 7: Key Settlement Terms (continued)
K S Key Settlement ttl t Terms T (continued) ( ti d) Levy Nuclear Project Full recovery of all retail project costs costs, including combined operating license (COL) costs and engineering, procurement & construction (EPC) contract cancellation costs, if the Company ultimately chooses to cancel t
Slide 8: Crystal River Unit 3 – Repair Option
C t l Ri Crystal River Unit U it 3 – Repair R i Option O ti The Company will establish an estimated cost and schedule to repair CR3 and consult with the Intervenors The Company’s approved project budget will be the basis for project measurement Risk sharing on budget overruns – 50/50 on first
Slide 9: Crystal River Unit 3 – Retirement Option
C t l Ri Crystal River Unit U it 3 – Retirement R ti tOOption ti Company retains sole discretion and flexibility to retire unit, without challenge from the Intervenors Allowed to recover all remaining CR3 investments Allowed to earn a return on the CR3 assets = 70% of the PSC-authorized ROE, p
Slide 10: Financial Implications
Fi Financial i l Implications I li ti Net Income Base rate increase of $150M in 2013 Certainty over return on equity (ROE) through 2016 CR3 depreciation suspended and return accrued Certain ongoing expense accruals suspended Cost of Removal flexibility One time income statement charge fo
Slide 11: NEIL Considerations
NEIL C Considerations id ti NEIL insurance coverage $2.25 $2 25 billion repair costs per accident $490 million replacement power costs per accident • $4.5 million/week for first 52 weeks • $3.6 million/week for next 71 weeks NEIL payments to date • $162 million replacement power • $136 milli
Slide 12: Conclusion
C Conclusion l i Achieves a reasonable financial outcome for base rates through 2016 Achieves a positive outcome for the Levy Nuclear Project, while preserving potential future benefits of new nuclear generation in Florida Resolves key prudence issues around CR3 Preserves ese es Co Company p
Slide 13: Progress Energy
K Progress Energy
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