Duke Energy Reports Second-Quarter 2007 Results



    
    - Ongoing diluted earnings per share (EPS) of 25 cents versus 24 cents in
    the prior year's quarter.

    - Combined ongoing results at Franchised Electric and Gas, Commercial
Power
    and International improved 7 cents, compared to the prior- year quarter.
    These results were offset by a lower contribution from Crescent.

    - Reported diluted EPS of 23 cents versus 28 cents in the previous year's
    quarter, which included Spectra Energy.

    - Company expects to exceed annual employee ongoing diluted EPS incentive
    target of $1.15.
    

    CHARLOTTE, N.C., Aug. 7 /CNW/ -- Duke Energy today reported ongoing
diluted earnings per share (EPS) of 25 cents for second-quarter 2007, which
excludes special items and discontinued operations, versus 24 cents in
second-quarter 2006.
    
    (Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
    
    The 24 cents excludes the results of the natural gas businesses, spun off
as Spectra Energy in January 2007, the results of which are now reported in
Discontinued Operations.
    The higher ongoing results reflect improved results at U.S. Franchised
Electric and Gas and Commercial Power, primarily due to favorable weather, as
well as improved results at Duke Energy International. These segments had
combined higher earnings of 7 cents in diluted EPS on an ongoing basis and 11
cents on a reported basis.
    These results were offset by a lower contribution from Crescent
Resources, which changed from a wholly owned subsidiary to an effective 50-50
joint venture in September 2006.
    The company reported second-quarter 2007 diluted EPS of 23 cents, or $293
million in net income, compared to 28 cents diluted EPS in second-quarter
2006, or $355 million in net income. For the first time, quarter-over-quarter
comparisons of the former Cinergy operations are included in reported results.
Duke Energy merged with Cinergy in April 2006.
    Reported earnings for second-quarter 2007 exclude the results for the
natural gas businesses that were spun off as Spectra Energy.
    "We're very pleased with the strong performance of our major business
units," said Chairman, President and Chief Executive Officer James E. Rogers.
"With normal weather for the rest of the year, and our continuing focus on our
operations and cost management, we expect to exceed our 2007 annual employee
ongoing diluted EPS incentive target of $1.15."

    Special items affecting Duke Energy's diluted EPS for the quarter
include:

    
                                                             2Q2007   2Q2006
    
    Pre-Tax     Tax      EPS      EPS    (In millions, except per-share
amounts)  Amount  Effect   Impact   Impact

    
    Second-quarter 2007
      - Costs to achieve Cinergy merger      $(12)    $4         --       --
      - IT severance costs                   $(12)    $4     $(0.01)      --
    

    
    Second-quarter 2006
      - Impairment of Campeche investment    $(55)    --         --   $(0.04)
      - Costs to achieve Cinergy merger      $(74)   $26         --   $(0.04)
    Total diluted EPS impact                                 $(0.01)  $(0.08)
    


    Reconciliation of reported to ongoing diluted EPS for the quarter:

    
                                                            2Q2007    2Q2006
                                                               EPS       EPS
    Diluted EPS from continuing operations, as reported      $0.24     $0.16
    Diluted EPS from discontinued operations, as reported   $(0.01)    $0.12
    Diluted EPS, as reported                                 $0.23     $0.28
    Adjustments to reported EPS:
      - Diluted EPS from discontinued operations             $0.01    $(0.12)
      - Diluted EPS impact of special items                  $0.01     $0.08
    Diluted EPS, ongoing                                     $0.25     $0.24
    


    
    BUSINESS UNIT RESULTS
    U.S. Franchised Electric and Gas
    
    U.S. Franchised Electric and Gas (USFE&G) reported second-quarter 2007
segment EBIT from continuing operations of $452 million, compared to $351
million in the prior year. The EBIT increase over the prior year's quarter was
due primarily to favorable weather, lower purchased power and additional
long-term wholesale contracts.
    Second-quarter 2006 results were lower, due to an $18 million charge
related to an order issued by the North Carolina Utilities Commission (NCUC)
to change the calculation of bulk power marketing profits, and a $12 million
charge related to community donations, also required by the NCUC for approval
of the 2006 Cinergy merger.
    Regional growth continued to increase USFE&G's total customer base in
second-quarter 2007. Approximately 47,000 new customers were added in the
Carolinas since the second quarter of 2006, a 2 percent increase.
Approximately 17,000 new customers were added in the Midwest in that same time
period, a 1 percent increase.
    The second-quarter 2007 EBIT increase was partially offset by higher
operation and maintenance costs, driven primarily by plant outages and storm
costs, and $22 million more in merger-related rate reductions than in the
prior year's quarter. Those rate reductions ended in the second quarter of
2007 with the exception of the smaller Kentucky jurisdiction, which was to be
spread over five years.
    Year-to-date segment EBIT from continuing operations for USFE&G was
$1,026 million, compared to $710 million in 2006.
    
    Commercial Power
    
    For second-quarter 2007, Commercial Power reported segment EBIT of $35
million from continuing operations, compared to $20 million in the prior
year's quarter.
    Commercial Power results were higher due to increased retail demand
resulting largely from favorable weather, as well as higher mark-to-market
gains due to economic hedges.
    This contribution was partially offset by higher operation and
maintenance costs mainly due to plant outages and costs associated with
increased synfuel production.
    Year-to-date segment EBIT from continuing operations for Commercial Power
was $26 million, compared to a loss of $7 million in 2006.
    
    Duke Energy International
    
    For the second quarter of 2007, Duke Energy International (DEI), reported
segment EBIT from continuing operations of approximately $97 million, compared
to $24 million in last year's second quarter.
    DEI's improved results for the quarter were driven primarily by higher
margins in Latin America, and lower power purchases due to an unplanned outage
last year in Peru. Last year's second-quarter results included a $55 million
impairment charge associated with an equity investment in the Campeche
facility in Mexico.
    Year-to-date segment EBIT from continuing operations for DEI was $191
million, compared with $110 million in 2006.
    
    Crescent Resources
    
    Crescent Resources reported second-quarter 2007 segment EBIT from
continuing operations of $17 million, compared to $174 million in the previous
year's quarter.
    Last year's second-quarter results included an $81 million gain on the
sale of properties at Potomac Yard in northern Virginia, and a $52 million
gain on a land sale at Lake Keowee in South Carolina during the quarter.
    Lower current-year results also reflect the September 2006 change from
100 percent ownership to an effective 50-50 joint venture, and lower
residential developed-lot sales.
    Year-to-date segment EBIT from continuing operations for Crescent
Resources was $19 million, compared with $216 million in 2006.
    
    Other
    
    Other primarily includes costs associated with corporate governance,
merger costs-to-achieve, and Duke Energy's captive insurance company, Bison
Insurance Co. Ltd.
    Other reported a second-quarter 2007 EBIT loss from continuing operations
of $66 million, compared to a loss of $151 million in the prior year's
quarter. The reduced losses were primarily due to lower merger costs, as well
as lower corporate governance costs. These favorable variances were partially
offset by severance costs.
    Year-to-date EBIT loss from continuing operations for Other was $150
million, compared with a $204 million EBIT loss from continuing operations in
2006.
    
    Discontinued Operations
    
    In second-quarter 2007, Discontinued Operations had a net-of-tax loss of
$10 million, compared to a second-quarter 2006 after-tax income of $159
million. The 2006 results include after-tax earnings of approximately $237
million related to Duke Energy's natural gas businesses, which were spun off
to shareholders in January 2007.
    Year to date, Discontinued Operations posted a net-of-tax loss of $2
million, compared with after-tax income of $314 million in 2006.
    
    INTEREST EXPENSE
    
    Interest expense was $160 million for second-quarter 2007, compared to
$185 million for the second quarter of 2006. The $25 million decrease was due
primarily to debt reductions and refinancing activities.
    Interest expense was $324 million for year-to-date 2007, compared to $288
million for year-to-date 2006. The increase was primarily due to the debt
assumed as a result of the merger with Cinergy in April 2006.
    
    INCOME TAX EXPENSE
    
    Second-quarter 2007 income tax expense from continuing operations was
$119 million, compared to $51 million in second-quarter 2006. The effective
tax rate for the quarter increased to 28 percent from 21 percent in the prior
year quarter. The increase was primarily due to favorable merger-related
adjustments to state income taxes of approximately $40 million recorded in the
prior-year quarter, partially offset by the recognition of synfuel credits of
approximately $23 million recorded in the current-year quarter.
    Year-to-date income tax expense from continuing operations was $224
million compared to $159 million in 2006.
    
    NON-GAAP FINANCIAL MEASURES
    
    The primary performance measure used by management to evaluate segment
performance is segment EBIT from continuing operations, which at the segment
level represents all profits from continuing operations (both operating and
nonoperating), including any equity in earnings of unconsolidated affiliates,
before deducting interest and taxes, and is net of the minority interest
expense related to those profits. Management believes segment EBIT from
continuing operations, which is the GAAP measure used to report segment
results, is a good indicator of each segment's operating performance as it
represents the results of our ownership interests in continuing operations
without regard to financing methods or capital structures.
    Duke Energy's management uses ongoing diluted EPS, which is a non-GAAP
financial measure as it represents diluted EPS from continuing operations,
adjusted for the impact of special items, as a measure to evaluate operations
of the company. Special items represent certain charges and credits, which
management believes will not be recurring on a regular basis. Management
believes that the presentation of ongoing diluted EPS provides useful
information to investors, as it allows them to more accurately compare the
company's ongoing performance across periods. Ongoing diluted EPS is also used
as a basis for employee incentive bonuses.
    The most directly comparable GAAP measure for ongoing diluted EPS is
reported diluted EPS from continuing operations, which includes the impact of
special items. Due to the forward-looking nature of ongoing diluted EPS for
future periods, information to reconcile such non-GAAP financial measures to
the most directly comparable GAAP financial measure is not available at this
time as the company is unable to forecast any special items for future
periods.
    Duke Energy also uses ongoing segment (including ongoing equity earnings
for Crescent Resources) and Other EBIT, including diluted-EPS-equivalent
amounts, as a measure of historical and anticipated future segment and other
performance. When used for future periods, ongoing segment and Other EBIT may
also include any amounts that may be reported as discontinued operations.
Ongoing segment and Other EBIT are non-GAAP financial measures as they
represent reported segment and Other EBIT adjusted for special items.
Management believes that the presentation of ongoing segment and Other EBIT
provides useful information to investors, as it allows them to more accurately
compare a segment's or Other's ongoing performance across all periods. The
most directly comparable GAAP measure for ongoing segment or Other EBIT is
reported segment or Other EBIT, which represents EBIT from continuing
operations, including any special items. Due to the forward-looking nature of
any forecasted ongoing segment or Other EBIT and any related growth rates for
future periods, information to reconcile these non-GAAP financial measures to
the most directly comparable GAAP financial measures is not available at this
time as the company is unable to forecast any special items or any amounts
that may be reported as discontinued operations for future periods.
    Duke Energy, one of the largest electric power companies in the United
States, supplies and delivers energy to approximately 4 million U.S.
customers. The company has nearly 37,000 megawatts of electric generating
capacity in the Midwest and the Carolinas, and natural gas distribution
services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000
megawatts of electric generation in Latin America, and is a joint-venture
partner in a U.S. real estate company.
    Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company
traded on the New York Stock Exchange under the symbol DUK. More information
about the company is available on the Internet at: http://www.duke-energy.com.
    An earnings conference call for analysts is scheduled for 10 a.m. today.
The conference call can be accessed via the investors' section of Duke
Energy's Web site, or by dialing (800) 475-3716 in the United States or (719)
457-2728 outside the United States. The confirmation code is 4333620. Please
call in five to 10 minutes prior to the scheduled start time. A replay of the
conference call will be available until midnight ET, Aug. 16, 2007, by dialing
(888) 203-1112 with a confirmation code of 4333620. The international replay
number is (719) 457-0820, confirmation code 4333620. A replay and transcript
also will be available by accessing the investors' section of the company's
Web site.
    The presentation may include certain non-GAAP financial measures as
defined under SEC rules. In such event, a reconciliation of those measures to
the most directly comparable GAAP measures will be available on our investor
relations Web site at:  http://www.dukeenergy.com/investors/publications/gaap-
reconciliation.asp.
    
    Forward-looking statement
    
    This release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Forward-looking statements are based on management's
beliefs and assumptions. These forward-looking statements are identified by
terms and phrases such as "anticipate," "believe," "intend," "estimate,"
"expect," "continue," "should," "could," "may," "plan," "project," "predict,"
"will," "potential," "forecast," and similar expressions. Forward-looking
statements involve risks and uncertainties that may cause actual results to be
materially different from the results predicted. Factors that could cause
actual results to differ materially from those indicated in any forward-
looking statement include, but are not limited to: State, federal and foreign
legislative and regulatory initiatives, including costs of compliance with
existing and future environmental requirements; state, federal and foreign
legislation and regulatory initiatives that affect cost and investment
recovery, or have an impact on rate structures; costs and effects of legal and
administrative proceedings, settlements, investigations and claims;
industrial, commercial and residential growth in Duke Energy Corporation's
(Duke Energy) service territories; additional competition in electric markets
and continued industry consolidation; political and regulatory uncertainty in
other countries in which Duke Energy conducts business; the influence of
weather and other natural phenomena on Duke Energy operations, including the
economic, operational and other effects of hurricanes, ice storms and
tornadoes; the timing and extent of changes in commodity prices, interest
rates and foreign currency exchange rates; unscheduled generation outages,
unusual maintenance or repairs and electric transmission system constraints;
the results of financing efforts, including Duke Energy's ability to obtain
financing on favorable terms, which can be affected by various factors,
including Duke Energy's credit ratings and general economic conditions;
declines in the market prices of equity securities and resultant cash funding
requirements for Duke Energy's defined benefit pension plans; the level of
credit worthiness of counterparties to Duke Energy's transactions; employee
workforce factors, including the potential inability to attract and retain key
personnel; growth in opportunities for Duke Energy's business units, including
the timing and success of efforts to develop domestic and international power
and other projects; the performance of electric generation and of projects
undertaken by Duke Energy's non-regulated businesses; the effect of accounting
pronouncements issued periodically by accounting standard-setting bodies; and
the ability to successfully complete merger, acquisition or divestiture plans.
In light of these risks, uncertainties and assumptions, the events described
in the forward-looking statements might not occur or might occur to a
different extent or at a different time than Duke Energy has described. Duke
Energy undertakes no obligation to publicly update or revise any forward-
looking statements, whether as a result of new information, future events or
otherwise.



    
                                  JUNE 2007
                             QUARTERLY HIGHLIGHTS
                                 (Unaudited)
    


    
                                         Three Months Ended Six Months Ended
                                              June 30,          June 30,
                                          ----------------  ----------------
    (In millions, except per share
     amounts and where noted)                2007    2006   2007(a)  2006(a)
    ------------------------------------------------------------------------
    COMMON STOCK DATA
      Earnings Per Share  (from continuing
       operations)
         Basic                              $0.24   $0.16    $0.52    $0.37
         Diluted                            $0.24   $0.16    $0.51    $0.36
      (Loss) Earnings Per Share (from
       discontinued operations)
         Basic                             $(0.01)  $0.13     $-      $0.29
         Diluted                           $(0.01)  $0.12     $-      $0.28
      Earnings Per Share
         Basic                              $0.23   $0.29    $0.52    $0.66
         Diluted                            $0.23   $0.28    $0.51    $0.64
      Dividends Per Share                   $0.43   $0.63    $0.64    $0.94
      Weighted-Average Shares Outstanding
         Basic                              1,260   1,238    1,259    1,083
         Diluted                            1,267   1,259    1,267    1,111
    ------------------------------------------------------------------------
    INCOME
    Operating Revenues                     $3,044  $2,903   $6,131   $4,523
                                          ======== =======  ======= ========
    Total Reportable Segment EBIT             601     569    1,262    1,029
    Other EBIT                                (66)   (151)    (150)    (204)
    Interest Expense                         (160)   (185)    (324)    (288)
    Interest Income and Other (b)              47      14       88       21
    Income Tax Expense from Continuing
     Operations                              (119)    (51)    (224)    (159)
    (Loss) Income from Discontinued
     Operations, net of tax                   (10)    159       (2)     314
                                          -------- -------  ------- --------
    Net Income                               $293    $355     $650     $713
                                          ======== =======  ======= ========
    ------------------------------------------------------------------------
    CAPITALIZATION
      Total Common Equity                                      63%      54%
    

    
      Minority Interests                                        0%       1%
      Total Debt                                               37%      45%
    ------------------------------------------------------------------------
    Total Debt                                             $11,961  $21,217
    Book Value Per Share                                    $16.21   $20.50
    Actual Shares Outstanding                                1,260    1,252
    ------------------------------------------------------------------------
    CAPITAL AND INVESTMENT EXPENDITURES
      U.S. Franchised Electric and Gas       $666    $562   $1,334     $902
      Natural Gas Transmission                -       145      -        270
      Commercial Power                        145      71      235       71
      International Energy                     13       7       24       32
      Crescent (c)                            -       149      -        412
      Other                                    30      17       70       98
                                          -------- -------  ------- --------
    Total Capital and Investment
     Expenditures                            $854    $951   $1,663   $1,785
                                          ======== =======  ======= ========
    ------------------------------------------------------------------------
    EBIT BY BUSINESS SEGMENT
      U.S. Franchised Electric and Gas       $452    $351   $1,026     $710
      Commercial Power                         35      20       26       (7)
      International Energy                     97      24      191      110
      Crescent                                 17     174       19      216
                                          -------- -------  ------- --------
    Total reportable segment EBIT             601     569    1,262    1,029
      Other EBIT                              (66)   (151)    (150)    (204)
      Interest expense                       (160)   (185)    (324)    (288)
      Interest Income and Other (b)            47      14       88       21
                                          -------- -------  ------- --------
    Consolidated income from continuing
     operations before income taxes          $422    $247     $876     $558
                                          ======== =======  ======= ========
    ------------------------------------------------------------------------
    

    
    (a) Results of legacy Cinergy operations are included in Duke Energy's
        results of operations from April 1, 2006 and thereafter. Additionally,
        on January 2, 2007, Duke Energy completed the spin-off of its natural
        gas businesses to shareholders and, accordingly, prior period results
        of the natural gas businesses, including Duke Energy's 50% ownership
        interest in DCP Midstream (formerly DEFS), are reflected in
        discontinued operations. On September 7, 2006, Duke Energy
        deconsolidated Crescent and subsequently accounts for its investment
        in Crescent using the equity method of accounting. Results of
        operations for the three and six months ended June 30, 2007 include
        Duke Energy's 50% equity in earnings of Crescent whereas the results
        for the three and six months ended June 30, 2006 include 100% of
        Crescent's earnings as Crescent was a wholly owned subsidiary of Duke
        Energy.
    (b) Other includes foreign currency transaction gains and losses and
        additional minority interest not allocated to the segment results.
    (c) Amounts include capital expenditures for residential real estate
        included in operating cash flows of $0 million and $125 million for
        the three months ended June 30, 2007 and 2006, respectively, and $0
        million and $240 million for the six months ended June 30, 2007 and
        2006, respectively.
    

    
    Note:  Certain prior period amounts have been reclassified due to
           discontinued operations and segment asset transfers.
    



    
                                  JUNE 2007
                             QUARTERLY HIGHLIGHTS
                                 (Unaudited)
    

    
                                         Three Months Ended Six Months Ended
                                               June 30,          June 30,
                                          ----------------- -----------------
    (In millions, except where noted)        2007     2006     2007     2006
    -------------------------------------------------------------------------
    U.S. FRANCHISED ELECTRIC AND GAS (a)
      Operating Revenues                   $2,249   $2,130   $4,648   $3,422
      Operating Expenses                    1,812    1,791    3,647    2,729
      Gains on Sales of Other Assets and
       Other, net                               1        2        1        2
      Other Income and Expenses, net           14       10       24       15
                                          -------- -------- -------- --------
      EBIT                                   $452     $351   $1,026     $710
                                          -------- -------- -------- --------
      Depreciation and Amortization          $363     $358     $724     $590
    

    
      Duke Energy Carolinas GWh sales      20,870   19,944   42,412   40,524
      Duke Energy Midwest GWh sales        15,396   14,803   31,808   14,803
      Net Proportional MW Capacity in
       Operation                                             27,590   26,772
    

    
    -------------------------------------------------------------------------
    COMMERCIAL POWER (a)
      Operating Revenues                     $529     $447     $961     $463
      Operating Expenses                      501      436      937      477
      Losses on Sales of Other Assets and
       Other, net                             -         (5)     (11)      (5)
      Other Income and Expenses, net            7       14       13       12
                                          -------- -------- -------- --------
      EBIT                                    $35      $20      $26      $(7)
                                          -------- -------- -------- --------
      Depreciation and Amortization           $55      $55     $104      $69
    

    
      Actual Plant Production, GWh          5,123    5,363   10,998    5,380
      Net Proportional MW Capacity in
       Operation                                              8,100    8,600
    

    
    -------------------------------------------------------------------------
    INTERNATIONAL ENERGY
      Operating Revenues                     $261     $245     $506     $472
      Operating Expenses                      185      231      350      385
      Other Income and Expenses, net           26       11       45       30
      Minority Interest Expense                 5        1       10        7
                                          -------- -------- -------- --------
      EBIT                                    $97      $24     $191     $110
                                          -------- -------- -------- --------
    

    Depreciation and Amortization           $20      $18      $38      $35

    
      Sales, GWh                            4,000    5,021    8,654    9,817
      Proportional MW Capacity in
       Operation                                              3,940    3,919
    

    
    -------------------------------------------------------------------------
    CRESCENT (b)
      Operating Revenues                     $-        $85     $-       $156
      Operating Expenses                      -         60      -        121
      Gains on Sales of Investments in
       Commercial and Multi-Family Real
       Estate                                 -        145      -        171
      Other Income and Expenses, net          -          5      -         13
      Equity in Earnings of
       Unconsolidated Affiliates               17      -         19      -
      Minority Interest Expense               -          1      -          3
                                          -------- -------- -------- --------
      EBIT                                    $17     $174      $19     $216
                                          -------- -------- -------- --------
    

    
    -------------------------------------------------------------------------
    OTHER (a)
      Operating Revenues                      $55      $39      $91      $76
      Operating Expenses                      134      184      234      291
      Losses on Sales of Other Assets and
       Other, net                              (1)      (3)      (1)      (3)
      Other Income and Expenses, net           12       (6)      (9)       7
      Minority Interest Benefit                (2)      (3)      (3)      (7)
                                          -------- -------- -------- --------
      EBIT                                   $(66)   $(151)   $(150)   $(204)
                                          -------- -------- -------- --------
      Depreciation and Amortization           $13      $13      $26      $23
    -------------------------------------------------------------------------
    

    
    (a) Includes the results of operations for legacy Cinergy from April 1,
        2006 and thereafter.
    (b) Crescent results for the three and six months ended June 30, 2007
        represent Duke Energy's 50% equity in earnings for its investment in
        Crescent. Results for the three and six months ended June 30, 2006
        represent 100% of Crescent's earnings as Crescent was a wholly owned
        subsidiary of Duke Energy until September 7, 2006.
    



    
                           DUKE ENERGY CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (Unaudited)
                   (In millions, except per-share amounts)
    

    
                                         Three Months Ended Six Months Ended
                                               June 30,          June 30,
                                          ----------------- -----------------
                                             2007     2006     2007     2006
                                          -------- -------- -------- --------
    Operating Revenues                     $3,044   $2,903   $6,131   $4,523
    Operating Expenses                      2,583    2,668    5,093    3,950
    Gains on Sales of Investments in
     Commercial and Multi-Family Real
     Estate                                   -        145      -        171
    Gains (Losses) on Sales of Other
     Assets and Other, net                      1       (7)     (10)      (7)
                                          -------- -------- -------- --------
    Operating Income                          462      373    1,028      737
                                          -------- -------- -------- --------
    Other Income and Expenses, net            121       62      175      115
    Interest Expense                          160      185      324      288
    Minority Interest Expense                   1        3        3        6
                                          -------- -------- -------- --------
    Income From Continuing Operations
     Before Income Taxes                      422      247      876      558
    Income Tax Expense from Continuing
     Operations                               119       51      224      159
                                          -------- -------- -------- --------
    Income From Continuing Operations         303      196      652      399
    

    
    (Loss) Income From Discontinued
     Operations, net of tax                   (10)     159       (2)     314
                                          -------- -------- -------- --------
    Net Income                               $293     $355     $650     $713
                                          ======== ======== ======== ========
    Common Stock Data
     Weighted-average shares outstanding
        Basic                               1,260    1,238    1,259    1,083
        Diluted                             1,267    1,259    1,267    1,111
     Earnings per share (from continuing
      operations)
        Basic                               $0.24    $0.16    $0.52    $0.37
        Diluted                             $0.24    $0.16    $0.51    $0.36
     (Loss) Earnings per share (from
      discontinued operations)
        Basic                              $(0.01)   $0.13     $-      $0.29
        Diluted                            $(0.01)   $0.12     $-      $0.28
     Earnings per share
        Basic                               $0.23    $0.29    $0.52    $0.66
        Diluted                             $0.23    $0.28    $0.51    $0.64
     Dividends per share                    $0.43    $0.63    $0.64    $0.94
    



    
                           DUKE ENERGY CORPORATION
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                                 (Unaudited)
                                (In millions)
    

    
                                                   June 30,      December 31,
                                                      2007              2006
                                               ------------      ------------
    ASSETS
    

    
    Current Assets                                  $5,029            $7,047
    Investments and Other Assets                    10,941            16,074
    Net Property, Plant and Equipment               29,799            41,447
    Regulatory Assets and Deferred Debits            2,679             4,132
                                               ------------      ------------
       Total Assets                                $48,448           $68,700
                                               ============      ============
    

    
    LIABILITIES AND COMMON STOCKHOLDERS'
     EQUITY
    

    
    Current Liabilities                             $5,014            $6,613
    Long-term Debt                                   9,965            18,118
    Deferred Credits and Other
     Liabilities                                    12,857            17,062
    Minority Interests                                 191               805
    Common Stockholders' Equity                     20,421            26,102
                                               ------------      ------------
       Total Liabilities and Common
        Stockholders' Equity                       $48,448           $68,700
                                               ============      ============
    



    
                           DUKE ENERGY CORPORATION
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                 (Unaudited)
                                (In millions)
                                                        Six Months Ended
                                                            June 30,
                                                    ------------------------
                                                      2007            2006
                                                    -----------  -----------
    CASH FLOWS FROM OPERATING
     ACTIVITIES
      Net income                                      $650            $713
      Adjustments to reconcile net
       income to net cash provided by
       operating activities:                           782             731
                                                    -----------  -----------
             Net cash provided by
              operating activities                   1,432           1,444
                                                    -----------  -----------
    CASH FLOWS FROM INVESTING
     ACTIVITIES
             Net cash (used in)
              provided by investing
              activities                            (1,181)            467
                                                    -----------  -----------
    CASH FLOWS FROM FINANCING
     ACTIVITIES
             Net cash used in financing
              activities                              (588)         (1,670)
                                                    -----------  -----------
    

    
      Net (decrease) increase in cash
       and cash equivalents                           (337)            241
      Cash and cash equivalents at
       beginning of period                             948             511
                                                    -----------  -----------
      Cash and cash equivalents at end
       of period                                       $611           $752
                                                    ===========  ===========
    



    
                            Duke Energy Carolinas
                             Quarterly Highlights
                 Supplemental Franchised Electric Information
    


    
                                                     Quarter To Date
                                                        June 30,
                                            ---------------------------------
                                                                        %
                                                 2007         2006  Inc.(Dec.)
                                            ----------- ----------- ---------
    GWH Sales
       Residential                              5,593        5,348      4.6%
       General Service                          6,547        6,227      5.1%
    

    
       Industrial - Textile                     1,336        1,542    (13.4%)
       Industrial - Other                       4,742        4,739      0.1%
                                            ----------- ----------- ---------
         Total Industrial                       6,078        6,281     (3.2%)
    


    
       Other Energy Sales                          69           67      3.4%
       Regular Resale                             363          353      3.0%
                                            ----------- ----------- ---------
           Total Regular Sales Billed          18,650       18,276      2.0%
    

    
       Special Sales (A)                        1,420        1,035     37.2%
                                            ----------- ----------- ---------
             Total Electric Sales              20,070       19,311      3.9%
    

    
       Unbilled Sales                             507          346     46.6%
                                            ----------- ----------- ---------
         Total Electric Sales - Carolinas      20,577       19,657      4.7%
    

    
       Nantahala Electric Sales                   293          287      1.9%
                                            ----------- ----------- ---------
         Total Consolidated Electric
          Sales - Carolinas                    20,870       19,944      4.6%
                                            =========== =========== =========
    

    
    Average Number of Customers
       Residential                          1,911,850    1,871,293      2.2%
       General Service                        321,458      316,343      1.6%
    

    
       Industrial - Textile                       726          761     (4.6%)
       Industrial - Other                       6,528        6,614     (1.3%)
                                            ----------- ----------- ---------
         Total Industrial                       7,254        7,375     (1.6%)
    


    
       Other Energy Sales                      13,403       13,127      2.1%
       Regular Resale                              15           15      0.0%
                                            ----------- ----------- ---------
    

    Total Regular Sales                2,253,980    2,208,153      2.1%

    
       Special Sales (A)                           37           29     27.6%
                                            ----------- ----------- ---------
       Total Electric Sales - Carolinas     2,254,017    2,208,182      2.1%
    

    
       Nantahala Electric Sales                71,302       69,741      2.2%
                                            ----------- ----------- ---------
       Total Avg Number of Customers -
        Carolinas                           2,325,319    2,277,923      2.1%
                                            =========== =========== =========
    

    
       (A) Excludes sales to Nantahala
        Power and Light Company
    

    
    Heating and Cooling Degree Days
       Actual
       Heating Degree Days                        262          169     54.7%
       Cooling Degree Days                        507          463      9.6%
    

    
       Variance from Normal
       Heating Degree Days                       9.9%       (24.2%)       n/a
       Cooling Degree Days                       9.8%        (0.9%)       n/a
    



    
                            Duke Energy Carolinas
                             Quarterly Highlights
                 Supplemental Franchised Electric Information
    

    
                                                      Year To Date
                                                        June 30,
                                            ---------------------------------
                                                                        %
                                                 2007         2006  Inc.(Dec.)
                                            ----------- ----------- ---------
    GWH Sales
       Residential                             12,719       11,960      6.3%
       General Service                         12,778       12,043      6.1%
    

    
       Industrial - Textile                     2,580        2,930    (12.0%)
       Industrial - Other                       9,050        9,088     (0.4%)
                                            ----------- ----------- ---------
         Total Industrial                      11,630       12,018     (3.2%)
    


    
       Other Energy Sales                         138          134      2.9%
       Regular Resale                             733          710      3.3%
                                            ----------- ----------- ---------
           Total Regular Sales Billed          37,998       36,865      3.1%
    

    
       Special Sales (A)                        3,521        2,952     19.3%
                                            ----------- ----------- ---------
             Total Electric Sales              41,519       39,817      4.3%
    

    
       Unbilled Sales                             233           66    252.7%
                                            ----------- ----------- ---------
         Total Electric Sales - Carolinas      41,752       39,883      4.7%
    

    
       Nantahala Electric Sales                   660          641      3.0%
                                            ----------- ----------- ---------
         Total Consolidated Electric
          Sales - Carolinas                    42,412       40,524      4.7%
                                            =========== =========== =========
    

    
    Average Number of Customers
       Residential                          1,907,745    1,867,226      2.2%
       General Service                        320,367      315,384      1.6%
    

    
       Industrial - Textile                       733          765     (4.2%)
       Industrial - Other                       6,538        6,629     (1.4%)
                                            ----------- ----------- ---------
         Total Industrial                       7,271        7,394     (1.7%)
    


    
       Other Energy Sales                      13,375       13,059      2.4%
       Regular Resale                              15           15      0.0%
                                            ----------- ----------- ---------
         Total Regular Sales                2,248,773    2,203,078      2.1%
    

    
       Special Sales (A)                           36           28     28.6%
                                            ----------- ----------- ---------
       Total Electric Sales - Carolinas     2,248,809    2,203,106      2.1%
    

    
       Nantahala Electric Sales                71,028       69,456      2.3%
                                            ----------- ----------- ---------
       Total Avg Number of Customers -
        Carolinas                           2,319,837    2,272,562      2.1%
                                            =========== =========== =========
    

    (A) Excludes sales to Nantahala Power and Light Company

    
    Heating and Cooling Degree Days
       Actual
       Heating Degree Days                      1,861        1,721      8.1%
       Cooling Degree Days                        537          469     14.6%
    

    
       Variance from Normal
       Heating Degree Days                      (5.9%)      (10.0%)       n/a
       Cooling Degree Days                      15.3%        (0.4%)       n/a
    



    
                            Duke Energy - Midwest
                             Quarterly Highlights
                 Supplemental Franchised Electric Information
    

    
                                                     Quarter To Date
                                                        June 30,
                                            ---------------------------------
                                                                        %
                                                 2007         2006  Inc.(Dec.)
                                            ----------- ----------- ---------
    GWH Sales
       Residential                              3,854        3,528     9.2%
       General Service                          4,490        4,157     8.0%
       Industrial                               4,632        4,586     1.0%
    

    
       Other Energy Sales                          43           45    (4.4%)
                                            ----------- ----------- ---------
           Total Regular Electric Sales
            Billed                             13,019       12,316     5.7%
    

    
       Special Sales                            1,932        2,054    (5.9%)
                                            ----------- ----------- ---------
             Total Electric Sales Billed
              - Midwest                        14,951       14,370     4.0%
    

    
       Unbilled Sales                             445          433     2.8%
                                            ----------- ----------- ---------
         Total Electric Sales - Midwest        15,396       14,803     4.0%
                                            =========== =========== =========
    


    
    Average Number of Customers
       Residential                          1,398,052    1,386,627     0.8%
       General Service                        183,580      181,984     0.9%
       Industrial                               5,666        5,764    (1.7%)
    

    
       Other Energy                             3,783        3,518     7.5%
                                            ----------- ----------- ---------
         Total Regular Sales                1,591,081    1,577,893     0.8%
    

    
       Special Sales                               35           30    16.7%
                                            ----------- ----------- ---------
       Total Avg Number Electric
        Customers - Midwest                 1,591,116    1,577,923     0.8%
                                            =========== =========== =========
    

    
    Heating and Cooling Degree Days*
       Actual
       Heating Degree Days                        304          187    62.6%
       Cooling Degree Days                        444          265    67.5%
    

    
       Variance from Normal
       Heating Degree Days                      18.8%       (27.8%)      n/a
       Cooling Degree Days                      51.5%        (7.3%)      n/a
    

    
    * Reflects HDD and CDD for Duke Energy - Indiana, Duke Energy - Ohio and
    Duke Energy - Kentucky
    



    
                            Duke Energy - Midwest
                             Quarterly Highlights
                 Supplemental Franchised Electric Information
    

    
                                                       Year To Date
                                                        June 30,
                                            ---------------------------------
                                                                        %
                                                 2007         2006  Inc.(Dec.)
                                            ----------- ----------- ---------
    GWH Sales
       Residential                              9,201        8,364    10.0%
       General Service                          8,861        8,321     6.5%
       Industrial                               9,012        9,090    (0.9%)
    

    
       Other Energy Sales                          87           90    (3.3%)
                                            ----------- ----------- ---------
           Total Regular Electric Sales
            Billed                             27,161       25,865     5.0%
    

    
       Special Sales                            4,564        3,531    29.3%
                                            ----------- ----------- ---------
             Total Electric Sales Billed
              - Midwest                        31,725       29,396     7.9%
    

    
       Unbilled Sales                              83            4     -
                                            ----------- ----------- ---------
         Total Electric Sales - Midwest        31,808       29,400     8.2%
                                            =========== =========== =========
    

    
    Average Number of Customers
       Residential                          1,401,093    1,388,814     0.9%
       General Service                        183,313      181,799     0.8%
       Industrial                               5,669        5,779    (1.9%)
    

    
       Other Energy                             3,752        3,452     8.7%
                                            ----------- ----------- ---------
         Total Regular Sales                1,593,827    1,579,844     0.9%
    

    
       Special Sales                               30           30     0.0%
                                            ----------- ----------- ---------
       Total Avg Number Electric
        Customers - Midwest                 1,593,857    1,579,874     0.9%
                                            =========== =========== =========
    Heating and Cooling Degree Days*
       Actual
       Heating Degree Days                      2,475        2,009    23.2%
       Cooling Degree Days                        459          265    73.2%
    

    
       Variance from Normal
       Heating Degree Days                       4.2%       (15.9%)      n/a
       Cooling Degree Days                      55.1%        (8.0%)      n/a
    

    
    * Reflects HDD and CDD for Duke Energy - Indiana, Duke Energy - Ohio and
      Duke Energy - Kentucky
    



    
                           DUKE ENERGY CORPORATION
                 ONGOING TO REPORTED EARNINGS RECONCILIATION
                          June 2006 Quarter-to-date
               (Dollars in millions, except per-share amounts)
    

    
                               Special Items (Note 1)
                               --------------------
                                 Costs
                                  to     Impairment  Discon-
                                Achieve,     of      tinued   Total
                      Ongoing   Cinergy   Campeche   Opera-  Adjust-  Reported
                      Earnings   Merger  Investment  tions    ments   Earnings
                     --------- --------- ---------- -------- -------- --------
    SEGMENT EARNINGS BEFORE INTEREST
     AND TAXES FROM CONTINUING OPERATIONS
    

    
    U.S. Franchised
     Electric and Gas   $351        $-       $-        $-        $-      $351
    

    Commercial Power      20         -        -         -         -        20

    International Energy  79         -      (55)B       -       (55)       24

    
    Crescent             174         -        -         -         -       174
                     --------- --------- ---------- -------- -------- --------
    Total reportable
     segment EBIT        624         -      (55)        -       (55)      569
    

    
    Other                (77)      (74)A      -         -       (74)     (151)
                     --------- --------- ---------- -------- -------- --------
    Total reportable
     segment EBIT and
     Other EBIT         $547      $(74)    $(55)       $-     $(129)     $418
    

    
    Interest Expense    (185)        -        -         -         -      (185)
    Interest Income
     and Other            14         -        -         -         -        14
    Income Taxes from
     Continuing
     Operations          (77)       26        -         -        26       (51)
    Discontinued
     Operations,
     net of taxes          -         -        -       159 C,D   159       159
                     --------- --------- ---------- -------- -------- --------
    Net Income          $299      $(48)    $(55)     $159       $56      $355
                     ========= ========= ========== ======== ======== ========
    EARNINGS PER SHARE,
     BASIC             $0.24    $(0.04)  $(0.04)    $0.13     $0.05     $0.29
                     ========= ========= ========== ======== ======== ========
    EARNINGS PER
     SHARE, DILUTED    $0.24    $(0.04)  $(0.04)    $0.12     $0.04     $0.28
                     ========= ========= ========== ======== ======== ========
    

    
    Note 1 - Amounts for special items are presented net of any related
    minority interest.
    

    
    A - Recorded in Operation, maintenance and other (Operating Expenses) on
    the Consolidated Statements of Operations.
    

    
    B - $38 million recorded in Operation, maintenance and other (Operating
    Expenses) and $17 million recorded in Losses on sales and impairments of
    equity investments (Other Income and Expenses) on the Consolidated
    Statements of Operations.
    

    C - Excludes Crescent discontinued operations.

    
    D - Primarily amounts reclassified to discontinued operations due to the
    January 2007 spin-off of Spectra Energy, net of amounts for DENA. Recorded
    in (Loss) Income From Discontinued Operations, net of tax on the
    Consolidated Statements of Operations.
    

    Weighted Average Shares (reported and ongoing) - in millions

    Basic          1,238

    Diluted        1,259



    
                           DUKE ENERGY CORPORATION
                 ONGOING TO REPORTED EARNINGS RECONCILIATION
                            June 2006 Year-to-date
               (Dollars in millions, except per-share amounts)
    

    
                              Special Items (Note 1)
                               --------------------
                                 Costs
                                  to     Impairment Discon-
                                Achieve,    of      tinued   Total
                      Ongoing   Cinergy   Campeche   Opera-  Adjust-  Reported
                      Earnings   Merger  Investment  tions    ments   Earnings
                     --------- --------- ---------- -------- -------- --------
    SEGMENT EARNINGS BEFORE INTEREST
     AND TAXES FROM CONTINUING OPERATIONS
    

    
    U.S. Franchised
     Electric and Gas   $710        $-       $-        $-        $-     $710
    

    Commercial Power      (7)        -        -         -         -       (7)

    
    International
     Energy              165         -      (55)B       -       (55)     110
    

    
    Crescent             216         -        -         -         -      216
                     --------- --------- ---------- -------- -------- --------
    Total reportable
     segment EBIT      1,084         -      (55)        -       (55)   1,029
    

    
    Other               (126)      (78)A      -         -       (78)    (204)
                     --------- --------- ---------- -------- -------- --------
    Total reportable
     segment EBIT and
     Other EBIT         $958      $(78)    $(55)       $-     $(133)    $825
    

    
    Interest Expense    (288)        -        -         -         -     (288)
    Interest Income
     and Other            21         -        -         -         -       21
    Income Taxes from
     Continuing
     Operations         (186)       27        -         -        27     (159)
    Discontinued
     Operations,
     net of taxes          -         -        -       314 C,D   314      314
                     --------- --------- ---------- -------- -------- --------
    Net Income          $505      $(51)    $(55)     $314      $208     $713
                     ========= ========= ========== ======== ======== ========
    EARNINGS PER
     SHARE, BASIC      $0.47    $(0.05)  $(0.05)    $0.29     $0.19    $0.66
                     ========= ========= ========== ======== ======== ========
    EARNINGS PER
     SHARE, DILUTED    $0.46    $(0.05)  $(0.05)    $0.28     $0.18    $0.64
                     ========= ========= ========== ======== ======== ========
    

    
    Note 1 - Amounts for special items are presented net of any related
    minority interest.
    

    
    A - Recorded in Operation, maintenance and other (Operating Expenses) on
    the Consolidated Statements of Operations.
    

    
    B - $38 million recorded in Operation, maintenance and other (Operating
    Expenses) and $17 million recorded in Losses on sales and impairments of
    equity investments (Other Income and Expenses) on the Consolidated
    Statements of Operations.
    

    C - Excludes Crescent discontinued operations.

    
    D - Primarily amounts reclassified to discontinued operations due to the
    January 2007 spin-off of Spectra Energy, net of amounts for DENA. Recorded
    in (Loss) Income From Discontinued Operations, net of tax on the
    Consolidated Statements of Operations.
    

    Weighted Average Shares (reported and ongoing) - in millions

    Basic          1,083

    Diluted        1,111



    
                           DUKE ENERGY CORPORATION
                 ONGOING TO REPORTED EARNINGS RECONCILIATION
                          June 2007 Quarter-to-date
               (Dollars in millions, except per-share amounts)
    

    
                              Special Items (Note 1)
                               --------------------
                                 Costs
                                  to                Discon-
                                Achieve,     IT     tinued    Total
                      Ongoing   Cinergy   Severance  Opera-  Adjust-  Reported
                      Earnings   Merger     Costs    tions    ments   Earnings
                     --------- ---------- --------- -------- -------- --------
    

    
    SEGMENT EARNINGS BEFORE INTEREST
     AND TAXES FROM CONTINUING OPERATIONS
    

    
    U.S. Franchised
     Electric and Gas   $452        $-      $-        $-         $-      $452
    

    Commercial Power      35         -       -         -          -        35

    International Energy  97         -       -         -          -        97

    
    Crescent              17         -       -         -          -        17
                     --------- ---------- --------- -------- -------- --------
    Total reportable
     segment EBIT        601         -       -         -          -       601
    

    
    Other               (42)       (12)A   (12)A       -        (24)      (66)
                     --------- ---------- --------- -------- -------- --------
    Total reportable
     segment and Other
     EBIT               $559      $(12)   $(12)       $-       $(24)     $535
    

    
    Interest Expense    (160)        -       -         -          -      (160)
    Interest Income
     and Other            47         -       -         -          -        47
    Income Taxes from
     Continuing
     Operations         (127)        4       4         -          8      (119)
    Discontinued
     Operations,
     net of taxes          -         -       -        (10)B      (10)     (10)
                     --------- ---------- --------  -------- -------- --------
    Net Income          $319       $(8)    $(8)      $(10)      $(26)    $293
                     ========= ========= ========= ========= ======== ========
    EARNINGS PER
     SHARE, BASIC      $0.25        $-  $(0.01)    $(0.01)    $(0.02)   $0.23
                     ========= ========= ========= ========= ======== ========
    EARNINGS PER
     SHARE, DILUTED    $0.25        $-  $(0.01)    $(0.01)    $(0.02)   $0.23
                     ========= ========= ========= ========= ======== ========
    

    
    Note 1 - Amounts for special items are presented net of any related
    minority interest.
    

    
    A - Recorded in Operation, maintenance and other (Operating Expenses) on
    the Consolidated Statements of Operations.
    

    
    B - Recorded in (Loss) Income From Discontinued Operations, net of tax on
    the Consolidated Statements of Operations.
    

    Weighted Average Shares (reported and ongoing) - in millions

    Basic          1,260

    Diluted        1,267



    
                           DUKE ENERGY CORPORATION
                 ONGOING TO REPORTED EARNINGS RECONCILIATION
                            June 2007 Year-to-date
               (Dollars in millions, except per-share amounts)
    

    
                                Special Items (Note 1)
                               -----------------------
                               Convert-
                                ible     Costs
                                 Debt     to      IT    Discon-
                                Costs,  Achieve, Sever- tinued  Total
                      Ongoing    Gas    Cinergy  ance  Opera- Adjust- Reported
                      Earnings Spin-off Merger   Costs  tions   ments Earnings
                      -------- -------- ------- ------ ------- ------ --------
    

    
    SEGMENT EARNINGS BEFORE INTEREST
     AND TAXES FROM CONTINUING OPERATIONS
    

    
    U.S. Franchised
     Electric and
     Gas              $1,026       $-      $-      $-      $-      $-  $1,026
    

    Commercial Power      26        -       -       -       -       -      26

    
    International
     Energy              191        -       -       -       -       -     191
    

    
    Crescent              19        -       -       -       -       -      19
                      -------- -------- ------- ------ ------- ------ --------
    Total reportable
     segment EBIT      1,262        -       -       -       -       -   1,262
    

    
    Other                (94)     (21)B   (23)A   (12)A     -     (56)   (150)
                      -------- -------- ------- ------ ------- ------ --------
    Total reportable
     segment and
     Other EBIT       $1,168     $(21)   $(23)   $(12)     $-    $(56) $1,112
    

    
    Interest Expense    (324)       -       -       -       -       -    (324)
    Interest Income
     and Other            88        -       -       -       -       -      88
    Income Taxes from
     Continuing
     Operations         (236)       -       8       4       -      12    (224)
    Discontinued
     Operations,
     net of taxes          -        -       -       -      (2)C    (2)     (2)
                      -------- -------- ------- ------ ------- ------ --------
    Net Income          $696     $(21)   $(15)    $(8)    $(2)   $(46)   $650
                      ======== ======== ======= ====== ======= ====== ========
    EARNINGS PER
     SHARE, BASIC      $0.56   $(0.02) $(0.01) $(0.01)     $-  $(0.04)  $0.52
                      ======== ======== ======= ====== ======= ====== ========
    EARNINGS PER
     SHARE, DILUTED    $0.55   $(0.02) $(0.01) $(0.01)     $-  $(0.04)  $0.51
                      ======== ======== ======= ====== ======= ====== ========
    

    
    Note 1 - Amounts for special items are presented net of any related
    minority interest.
    

    
    A - Recorded in Operation, maintenance and other (Operating Expenses) on
    the Consolidated Statements of Operations.
    

    
    B - Recorded in Other income and expenses, net (Other Income and Expenses,
    net) on the Consolidated Statements of Operations.
    

    
    C - Recorded in (Loss) Income From Discontinued Operations, net of tax on
    the Consolidated Statements of Operations.
    

    Weighted Average Shares (reported and ongoing) - in millions

    Basic          1,259

    Diluted        1,267



    
                           Duke Energy Corporation
             Reported and Ongoing Segment EBIT - EPS Equivalents
                         Second Quarter 2007 vs. 2006
                   (in millions, except per-share amounts)
    

    
                                                      Reported
                                      ---------------------------------------
                                         2Q    2Q               Tax      EPS
                 Segment                2007  2006  Difference Effect  Impact
    --------------------------------  ------ ------  --------  ------- ------
    

    U.S. Franchised Electric and Gas    $452   $351     $101   $(39)    $0.05

    Commercial Power                      35     20       15     (6)     0.01

    
    International Energy                  97     24       73     (5)(b)  0.05
                                      ------ ------  --------  ------- ------
    

    Subtotal                           584    395      189             0.11

    
    Crescent                              17    174     (157)    58     (0.08)
                                      ------ ------  --------  ------- ------
      Total Reportable Segments         $601   $569      $32            $0.03
                                      ====== ======  ========  ======= ======
    

    
        Notes
    --------------
    (a)  Different between reported amount of $24 million and ongoing
         amount of $79 million represents 2006 impairment of Campeche
         investment of $55 million.
    

    
    (b)  Tax effect reflects non-deductibility of $55 million Campeche
         impairment discussed in note (a) above.
    


    
                          Duke Energy Corporation
            Reported and Ongoing Segment EBIT - EPS Equivalents
                        Second Quarter 2007 vs. 2006
                  (in millions, except per-share amounts)
    

    
                                                         Ongoing
                                      ---------------------------------------
                                         2Q    2Q               Tax      EPS
                 Segment                2007  2006  Difference Effect  Impact
    --------------------------------  ------ ------  --------  ------- ------
    

    U.S. Franchised Electric and Gas    $452  $351     $101      $(39)  $0.05

    Commercial Power                      35    20       15        (6)   0.01

    
    International Energy                  97    79 (a)   18        (5)   0.01
                                      ------ ------  --------  ------- ------
    

    Subtotal                           584   450      134              0.07

    
    Crescent                              17   174     (157)       58   (0.08)
                                      ------ ------  --------  ------- ------
      Total Reportable Segments         $601  $624     $(23)           $(0.01)
                                      ------ ------  --------  ------- ------
    

    
        Notes
    --------------
    (a)  Different between reported amount of $24 million and ongoing
         amount of $79 million represents 2006 impairment of Campeche
         investment of $55 million.
    

    
    (b)  Tax effect reflects non-deductibility of $55 million Campeche
         impairment discussed in note (a) above.
    


    
    MEDIA CONTACT:   Mark Craft
                     Phone: 704-382-7364 or 513-419-5943
                     24-Hour: 704-382-8333
    

    
    ANALYST CONTACT: Sean Trauschke
                     Phone: 980-373-7905
    




For further information:

For further information: Media, Mark Craft, +1-704-382-7364, or 
+1-513-419-5943, or 24-Hour, +1-704-382-8333, or Analysts, Sean Trauschke, 
+1-980-373-7905, both of Duke Energy Web Site: http://www.duke-energy.com

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