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Environmental Footprint

Expanding Our Renewable Energy Business

We know we will be moving to a low-carbon economy, and renewable energy will play an increasingly important role in that transition. In 2008, we grew our wind power business, proposed new solar energy projects and announced a major biopower joint venture.

An Important Year for Wind Energy

Through a series of strategic acquisitions and development projects, we significantly expanded our commercial wind power business in 2008. By the end of the year, we had nearly 400 MW of wind power in operation and another 5,000 MW in potential development in 14 states, primarily in the Central, Western and Southwestern regions of the U.S.

We recently brought two wind power projects on line:

The Notrees Windpower Project in Ector and Winkler counties, Texas, will come on line in the spring of 2009. We also expect our new 99-MW Campbell Hill Windpower Project near Casper, Wyo., to begin operating by the end of the year. Duke Energy remains a 50 percent owner of the Sweetwater facility in Nolan County, Texas – one of the largest wind power projects in the world. In addition, we reached an agreement in September 2008 to purchase 100 General Electric wind turbines that will produce 150 MW of electricity at various projects beginning in 2010.

In our regulated Indiana service territory, Duke Energy began purchasing up to 100 MW of wind power from the Benton County Wind Farm in April 2008.

Shining a Light on Solar Power

Solar power became an integral part of our renewable energy plans in 2008. We signed a 20-year contract with SunEdison to purchase approximately 16 MW of electricity from what will be one of the nation’s largest photovoltaic solar farms, to be built in North Carolina. The facility will generate enough electricity to power approximately 2,600 homes.

We also proposed a program to install photovoltaic solar panels on the rooftops or land of up to 400 of the North Carolina homes and businesses we serve. Under this proposal, Duke Energy would compensate these customers for the right to install photovoltaic solar panels on their property. The electricity generated from these “mini power plants” would be capable of supplying about 1,300 houses.

Investing in Biopower

In September 2008, we announced a partnership with AREVA to develop biopower plants in the U.S. ADAGE, the company formed by this joint venture, will build and operate biopower plants that use renewable, organic material – often referred to as biomass – to produce electricity. ADAGE plans to start construction on its first biopower plant in 2010.

The American Council on Renewable Energy and many federal and state environmental agencies consider biopower to be carbon-neutral. Duke Energy is also exploring the feasibility of incorporating biomass into the fuel mix at our fossil plants and studying the potential to convert a conventional fossil unit to biomass.

Maintaining Our Legacy: Hydroelectric Generation

Duke Energy Carolinas traces its roots back to 1904, when the company completed its first generating station on the Catawba River. The plant used hydroelectric power – the first large-scale renewable energy source – to bring electricity to the region. Today, we are the second-largest investor-owned hydroelectric operator in the U.S. We also own about 3,000 MW of hydroelectric capacity in South America.