Sustainability Plan and Progress at a Glance
This sustainability plan reflects Duke Energy’s commitment to operate in a way that is good for people, the planet and profits. It expands on the company’s business strategy and values. After our merger with Progress Energy is complete, we will be updating our sustainability plan and goals to reflect the merged company.
ACHIEVED OR ON TRACK
CURRENTLY NOT ON TRACK
GOAL NOT ACHIEVED
Innovative Products and Services
Provide innovative products and services in a carbon-constrained, competitive world.
Why it matters: Our customers want products and services that keep them competitive, yet respond to environmental concerns.
Reduce customer energy consumption by 2,500 gigawatt-hours (GWh) and peak demand by 2,100 megawatts (MW) by 2013.
2010 Status: As of year-end 2010, energy consumption was reduced by 1,270 GWh, and peak demand was reduced by 798 MW.
Scale up to 3,000 MW of wind, solar and biomass by 2020.
2010 Status: We added more than 250 MW of wind and solar energy in 2010, ending the year with more than 1,000 MW in service.
Maintain rates lower than the national average.
Duke Energy’s regulated average retail rates were lower than the U.S. average in South Carolina, North Carolina, Indiana and Kentucky.
Due to the economic downturn and drop in wholesale prices, our regulated average retail rate in Ohio, which was set in 2008 through the end of 2011, is now above the national average. (For information about how we are addressing this issue
, see the Innovative Products and Services section of this report.)
Maintain the high reliability of our generation system.
- Nuclear capacity factor was approximately 95.9 percent versus a target of 93.8 percent.
- Regulated fossil commercial availability was approximately 88.7 percent versus a target of 88.3 percent.
- Nonregulated fossil commercial availability was approximately 89.7 percent versus a target of 87.2 percent.
Maintain the high reliability of our distribution system.
2010 Status: Though we have improved reliability substantially in recent years, we did not meet our aggressive 2010 goals due to more lightning strikes.
- Average number of outages* was 1.11 versus a target of 1.10.
- Average outage duration* was 144 minutes versus a target of 139 minutes.
* Outages longer than 5 minutes; statistics are reported per customer
Reduce our environmental footprint.
Why it matters: As an energy company, we have a large impact on the environment and depend on natural resources for our fuel.
Reduce or offset the carbon dioxide (CO2
) emissions from our U.S. generation fleet 17 percent from 2005 by 2020 (i.e., go from 105 million tons in 2005 to 87 million tons in 2020).
2010 Status: Due to higher electricity demand from customers, our U.S. generation fleet emitted about 100 million tons of CO2 — up from 94 million tons in 2009, when the economy was weaker. Current forecasts indicate higher electricity demand and other factors will cause our emissions to exceed the 2020 goal. New nuclear generation capacity, if built in the 2021-2023 time frame as currently forecasted, will help reduce emissions and move us substantially closer to a 17 percent reduction.
Reduce the carbon intensity (tons of CO2
emitted per net megawatt-hour of electricity produced) of our total generation fleet from 0.63 in 2005 to 0.50 by 2020.
2010 Status: Our total generation fleet carbon intensity increased slightly — from 0.59 in 2009 to 0.60 in 2010 — due to the same factors mentioned above. Current forecasts indicate our carbon intensity will slightly exceed the 2020 goal.
Increase the percentage of solid waste that is recycled from 52 percent in 2008 to 62 percent by 2012. (This goal excludes Duke Energy International and Duke Energy Generation Services.)
2010 Status: We recycled more than 24,000 tons of materials, or about 63 percent of the total waste stream. While we have reached our goal, staying on track for 2012 will require the continued participation of employees across the company.
Attract, develop and retain a diverse, high-quality workforce.
Why it matters: Energy companies will be differentiated by the quality, creativity and customer focus of their employees.
Achieve zero work-related fatalities.
2010 Status: Tragically, five contractors died from injuries sustained while working for Duke Energy in 2010. A team of senior leaders has been formed to address the issue of contractor safety.
Achieve top-decile safety performance in employee Total Incident Case Rate (TICR) by 2012.
2010 Status: We exceeded our aggressive employee target in 2010, achieving a TICR of 0.9. Employee TICR has improved in each of the past five years, and 40 percent since 2006. We are on track to be in the top decile by 2012.
Maintain management and employee engagement at 75 percent and 64 percent, respectively, or higher, as measured by favorable scores on survey questions.
2010 Status: Management and employee engagement were 76 and 71 percent, respectively.
Help build strong communities.
Why it matters: Our success is linked to the health and prosperity of the communities we serve.
Develop the baseline number of lives positively impacted by our support of key community partners during 2010.
2010 Status: We piloted a process to evaluate the impacts of our philanthropy on the community. The pilot included 12 grants ranging from $125,000 to $5 million, given over a period of one to five years, totaling $16.5 million. By engaging with our key community partners, we learned that in 2009 over 1 million lives were positively impacted by those 12 grants. Given the value we and our community partners gained from this evaluation process, we plan to continue it in 2011.
Governance and Transparency
Be profitable and demonstrate strong governance and transparency.
Why it matters: Creating shareholder value and earning the trust and confidence of our many stakeholders keeps us in business.
Outperform our peers in total shareholder return
(TSR) annually and over a three-year period, as measured by the Philadelphia Utility Index.
2010 Status: Our TSR was 9.5 percent for 2010, exceeding our peers as measured by the Philadelphia Utility Index. TSR for the index was 5.7 percent in 2010. Duke Energy has achieved cumulative TSR of 4.7 percent over the past three years, while the utility index TSR has been a negative 15.4 percent.