Evolving Generation

Wayne Toms

General Manager Fossil / Hydro Operations Florida

DUKE ENERGY is:

2

28,000 employees

25 million customers

(7.3M meters)

6 states

50+ GW generation

The Road Ahead: Shaping the future

3

4

Duke Energy Generation Portfolio Today – Approx. 50GW

NC

SC

FL

OH

KY

IN

Midwest

Florida

Carolinas

Generation Capacity

Generation Capacity

Generation Capacity

Coal Nuclear Natural Gas/Oil Hydro & Solar

5

FHO Florida Plant Sites

15 Sites in Florida

10,000 MW’s

650 Florida based employees work at or support the sites.

We have a portfolio of Combustion Turbine, Combined Cycle and Coal plants

FHO FLORIDA is:

6

2006 Forecast: Future of U.S. Natural Gas Supply Shifting Overseas

16

18

20

22

24

26

28

2005 2010 2020 2030

Alaskan Production

LNG Imports

Net Pipeline Imports

Base Domestic Production

Unconventional Production

An

nu

al U

.S. D

om

esti

c S

up

ply

(Tri

llio

n c

ub

ic f

eet)

Current Forecast: U.S. Natural Gas ProductionA

nn

ual

U.S

. Do

mes

tic

Su

pp

ly

(Tri

llio

n c

ub

ic f

eet)

16

18

20

22

24

26

28

2005 2010 2015 2020 2025 2030

Net Pipeline Imports

Shale Gas

Natural Gas from Shale Basins

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

July 2008

Na

tura

l G

as P

rice

($/M

MB

tu)

July 2008

Long Term Forward Natural Gas Price

Trends by Month/Year

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

July 2008 January 2009

January 2009

Na

tura

l G

as P

rice

($/M

MB

tu)

Long Term Forward Natural Gas Price

Trends by Month/Year

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

July 2008 January 2009 January 2010

Na

tura

l G

as P

rice

($/M

MB

tu)

January 2010

Long Term Forward Natural Gas Price

Trends by Month/Year

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

July 2008 January 2009 January 2010 January 2011

Na

tura

l G

as P

rice

($/M

MB

tu)

January 2011

Long Term Forward Natural Gas Price

Trends by Month/Year

$2

$3

$4

$5

$6

$7

$8

$9

$10

$11

$12

$13

$14

Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

July 2008 January 2009 January 2010 January 2011 December 2011

Na

tura

l G

as P

rice

($/M

MB

tu)

December 2011

Long Term Forward Natural Gas Price

Trends by Month/Year

Current Wave of Gas Build

Linville DamLee CC

Asheville CC - Fall 2019

Lincoln CT – 2020

WS Lee CC - Spring 2018

Citrus County CC – Fall 2018

16

Dual Fuel Conversions

Benefits

Coal or Gas

Displaces startup oil

Greater turndown and ramp rates

Firm gas not required

CO2 reduction

Site Overview

Citrus County Combined Cycle

21

Citrus Combined Cycle

22

Florida Speakers Bureau Training 24

Energy Reality

25

Growing Industry Challenges

Aging infrastructure and aging workforce

Tightening environmental

regulations

Lack of comprehensive energy policy

Significant dependence on

natural gas

Solar Development

Slide Source: SNL Energy, an offering of S&P Global Market Intelligence As of May 26, 2016

Carolina Duck Curve - Projected Spring Day in 2022

0

1000

2000

3000

4000

5000

6000

7000

8000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Nuclear Purchase CC Coal Hydro

Transfer PEC SOLAR Load Load Net Solar

Solar Perry Solar Facility | Taylor County• 22 acres• 5 MW – approximately 22,000 panels• Online September, 2016

Osceola Solar Facility | Osceola County• 25 acres• 3.8 MW – approximately 15,000 installed panels• Online April, 2016

Suwannee Solar Facility | Suwannee County• 70 acres• 8.8 MW – approximately 35,000 installed panels• Expected Online the end of 2017

28

Perry Solar Facility

Osceola Solar Facility

Solar

• Increasing our capacity with 2 sites operational and 1 under construction in Florida

• Recently partnered with Disney World to complete a solar facility in the shape of Mickey Mouse’s ears

• Approximately 35 solar facilities in North Carolina

• Duke Energy’s growing portfolio of renewable energy assets includes 20 wind projects and 60 solar facilities in operation in more than a dozen states, totaling more than 3,000 MW of generating capacity, enough to power more than a half-million homes.

Energy Storage Projects

Hines CC Chillers200MW for 12 hours

Bad Creek Pumped Storage Upgrade 340MW for 6 hours

Questions