8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 4, 2009

DUKE ENERGY CORPORATION

(Exact Name of Registrant as Specified in Charter)

Delaware	001-32853	20-2777218
(State or Other Jurisdiction of Incorporation)	(Commission File No.)	(IRS Employer Identification No.)

526 South Church Street, Charlotte, North Carolina, 28202

(Address of principal executive offices, including zip code)

(704) 594-6200

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition

On August 4, 2009, Duke Energy Corporation issued a news release announcing its financial results for the second quarter ended June 30, 2009. A copy of this news release is attached hereto as Exhibit 99.1. The information in Exhibit 99.1 is being furnished pursuant to this Item 2.02.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits

99.1 News Release issued by Duke Energy Corporation on August 4, 2009

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

	DUKE ENERGY CORPORATION
Dated: August 4, 2009	/s/ Steven K. Young
	Steven K. Young Senior Vice President and Controller

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EXHIBIT INDEX

Exhibit	Description
99.1	News Release issued by Duke Energy Corporation on August 4, 2009

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EX-99.1

Exhibit 99.1

	NEWS RELEASE
	Duke Energy Corporation
	P.O. Box 1009
	Charlotte, NC 28201-1009

Aug. 4, 2009	MEDIA CONTACT	Tom Shiel
	Phone:	704-382-2355
	24-Hour:	704-382-8333
	ANALYST CONTACT	Bill Currens
	Phone:	704-382-1603

Duke Energy Reports Second Quarter 2009 Results

• Second quarter 2009 adjusted diluted earnings per share (EPS) was 26 cents, compared with 27 cents for the second quarter 2008

• Reported diluted EPS for second quarter 2009 was 21 cents, compared to 28 cents for the second quarter 2008

• Through second quarter, tracking slightly ahead of the employee incentive target of $1.20, based on adjusted diluted EPS; however, softened industrial volumes require continued strong focus on operations and cost management

CHARLOTTE, N.C. – Duke Energy today announced second quarter 2009 adjusted diluted earnings per share of 26 cents, compared to 27 cents for second quarter 2008. Reported diluted EPS for the second quarter 2009 was 21 cents, compared to 28 cents for the same period last year.

Through the second quarter of 2009, based upon adjusted diluted EPS, the company is slightly ahead of its internal plan, on a year-to-date basis. The company continues to experience lower electricity sales as a result of the economy, but has been effectively managing through the downturn with aggressive cost control. Industrial volumes are expected to stabilize for the remainder of 2009. Achievement of the employee incentive target will require continued focus on operations and cost management as well as some improvement in overall economic conditions.

“I am pleased with our results through the first half of the year in this challenging environment. Our industrial sales are being negatively impacted by current economic conditions and we have largely offset this impact with our strong operational performance and cost management. Industrial sales are showing signs of stabilization, but we do not see significant improvement in the near term. We will continue to focus on the matters we can control, including our operational performance, cost management and maintaining the strength of our liquidity and balance sheet,” said James E. Rogers, chairman, president and chief executive officer.

Mark-to-market impacts of economic hedges in the Commercial Power segment and special items affecting Duke Energy’s adjusted diluted EPS for the quarters include:

(In millions, except per-share amounts)	Pre-Tax Amount			Tax Effect			2Q2009 EPS Impact			2Q2008 EPS Impact
Second-quarter 2009
•       Costs to Achieve, Cinergy Merger	$	(8	)	$	3			—			—
•       Crescent-related guarantees and tax adjustments	$	7		$	(13	)	$	(0.01	)		—
•       International Transmission Adjustment	$	(32	)	$	10		$	(0.02	)		—
•       Mark-to-market impact of economic hedges	$	(36	)	$	13		$	(0.02	)		—
Second-quarter 2008
•       Costs to Achieve, Cinergy Merger	$	(12	)	$	5			—			—
•       Mark-to-market impact of economic hedges	$	107		$	(38	)		—		$	0.05
•       Crescent project impairments	$	(100	)	$	39			—		$	(0.05	)
Total diluted EPS impact							$	(0.05	)		—

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Reconciliation of reported to adjusted diluted EPS for the quarters:

	2Q2009 EPS		2Q2008 EPS
Diluted EPS from continuing operations, as reported	$	0.22	$	0.27
Diluted EPS from discontinued operations, as reported		—	$	0.01
Diluted EPS, as reported	$	0.21	$	0.28
Adjustments to reported EPS:
•      Diluted EPS from discontinued operations		—	$	(0.01	)
•      Diluted EPS impact of special items and mark-to-market in Commercial Power	$	0.05		—
Diluted EPS, adjusted	$	0.26	$	0.27

BUSINESS UNIT RESULTS (ON A REPORTED BASIS)

US Franchised Electric and Gas (USFE&G)

USFE&G reported second-quarter 2009 segment EBIT of $500 million, compared with $503 million in the second quarter of 2008.

Results were adversely affected by a decline in weather-adjusted sales volumes to industrial customers. These lower results were partially offset by reduced operating and maintenance costs.

Commercial Power

Commercial Power reported second-quarter 2009 segment EBIT from continuing operations of $79 million, compared to $235 million in the second quarter 2008. Results were adversely affected by mark-to-market losses on economic hedges in 2009 as compared to gains in 2008, lower power prices for wholesale customers and lower volumes for Ohio retail customers. These results were partially offset by prior year timing of expenses on a fuel and purchased power rider, and increased native margins related to the implementation of the Electric Security Plan in Ohio at the beginning of 2009.

Duke Energy International (DEI)

DEI reported second-quarter 2009 segment EBIT from continuing operations of $68 million, compared to $116 million in the second quarter 2008. DEI’s lower results were driven primarily by an adverse ruling on prior years’ transmission fees, a lower contribution from National Methanol resulting from reduced commodity prices, and unfavorable foreign exchange rates, primarily in Brazil. Partially offsetting these decreases were favorable contract prices in Brazil.

Other

Other includes costs associated with corporate governance, costs-to-achieve the Cinergy merger, Duke Energy’s captive insurance company and the results of Crescent, Duke Energy’s real estate joint-venture.

Other reported a second-quarter 2009 net expense from continuing operations of $38 million, compared to $189 million in the second quarter 2008. The decrease in net expense for the quarter was due primarily to prior year Crescent impairments and losses, favorable governance expenses and favorable results from captive insurance in 2009.

INTEREST EXPENSE

Interest expense from continuing operations was $186 million for the second quarter 2009, compared to $194 million for the second quarter 2008. The reduction in interest expense for the quarter was primarily due to lower interest rates on floating rate debt and commercial paper, partially offset by higher debt balances.

INCOME TAX EXPENSE

Income tax expense from continuing operations for second quarter 2009 was $177 million, compared to $167 million for the second quarter 2008. The effective tax rate for the quarter was approximately 38 percent, compared to 33 percent for the same period last year. The higher effective tax rate was primarily due to adjustments of certain tax benefits. The anticipated effective tax rate for full-year 2009 is 34 percent.

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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 non-operating), including any equity in earnings of unconsolidated affiliates, before deducting interest and taxes, and is net of the income attributable to non-controlling interests. 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 Duke Energy’s ownership interests in continuing operations without regard to financing methods or capital structures.

Duke Energy’s management uses adjusted diluted EPS, which is a non-GAAP financial measure as it represents diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, adjusted for the per-share impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment, 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. Mark-to-market adjustments reflect the mark-to-market impact of derivative contracts, which is recognized in GAAP earnings immediately as such derivative contracts do not qualify for hedge accounting or regulatory accounting treatment, used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS provides useful information to investors, as it allows them to more accurately compare the company’s performance across periods. Adjusted diluted EPS is also used as a basis for employee incentive bonuses.

The most directly comparable GAAP measure for adjusted diluted EPS is reported diluted EPS from continuing operations attributable to Duke Energy Corporation common shareholders, which includes the impact of special items and the mark-to-market impacts of economic hedges in the Commercial Power segment.

Due to the forward-looking nature of adjusted diluted EPS for future periods, information to reconcile such 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 special items and the mark-to-market impacts of economic hedges in the Commercial Power segment for future periods.

Duke Energy also uses adjusted segment EBIT and Other net expenses (including adjusted equity earnings for Crescent Resources) as a measure of historical and anticipated future segment and Other performance. When used for future periods, adjusted segment EBIT and Other net expenses may also include any amounts that may be reported as discontinued operations or extraordinary items. Adjusted segment EBIT and Other net expenses are non-GAAP financial measures, as they represent reported segment EBIT and Other net expenses adjusted for special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Management believes that the presentation of adjusted segment EBIT and Other net expenses provides useful information to investors, as it allows them to more accurately compare a segment’s or Other’s ongoing performance across periods. The most directly comparable GAAP measure for adjusted segment EBIT or Other net expenses is reported segment EBIT or Other net expenses, which represents segment EBIT and Other net expenses from continuing operations, including any special items and the mark-to-market impacts of economic hedges in the Commercial Power segment. Due to the forward-looking nature of any forecasted adjusted segment EBIT or Other net expenses 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 special items, the mark-to-market impacts of economic hedges in the Commercial Power segment, or any amounts that may be reported as discontinued operations or extraordinary items for future periods.

Duke Energy is the third largest electric power holding company in the United States, based on kilowatt-hour sales. Its regulated utility operations serve approximately 4 million customers located in five states – North Carolina, South Carolina, Indiana, Ohio and Kentucky – representing a population of approximately 11 million people. Duke Energy’s commercial power and international business segments operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. 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: www.duke-energy.com.

An earnings conference call for analysts is scheduled for 10 a.m. ET Tuesday, Aug. 4.

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The conference call can be accessed via the investors’ section (http://www.duke-energy.com/investors/) of Duke Energy’s Web site or by dialing 719-325-4762 outside the United States or 877-719-9788 in the United States. The confirmation code is 9050234. Please call in 10 to 15 minutes prior to the scheduled start time. A replay of the conference call will be available until midnight ET, Aug. 14, 2009, by calling 719-457-0820 outside the United States or 888-203-1112 in the United States, and using the code 9050234. A replay and transcript also will be available by accessing the investors’ section of the company’s Web site.

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,” “target,” “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, droughts, 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; construction and development risks associated with the completion of Duke Energy’s capital investment projects in existing and new generation facilities, including risks related to financing, obtaining and complying with terms of permits, meeting construction budgets and schedules, and satisfying operating and environmental performance standards, as well as the ability to recover costs from customers in a timely manner; 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.

###

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JUNE 2009

QUARTERLY HIGHLIGHTS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except per-share amounts and where noted)	2009			2008			2009			2008
COMMON STOCK DATA
Income from continuing operations attributable to Duke Energy Corporation common shareholders
Basic	$	0.22		$	0.27		$	0.48		$	0.63
Diluted	$	0.22		$	0.27		$	0.48		$	0.63
Income from discontinued operations attributable to Duke Energy Corporation common shareholders
Basic	$	—		$	0.01		$	—		$	0.01
Diluted	$	—		$	0.01		$	—		$	0.01
Net income attributable to Duke Energy Corporation common shareholders
Basic	$	0.21		$	0.28		$	0.48		$	0.64
Diluted	$	0.21		$	0.28		$	0.48		$	0.64
Dividends Per Share	$	0.47		$	0.45		$	0.70		$	0.67
Weighted-Average Shares Outstanding
Basic		1,288			1,264			1,284			1,264
Diluted		1,289			1,266			1,285			1,266
INCOME
Operating Revenues	$	2,913		$	3,229		$	6,225		$	6,566
Total Reportable Segment EBIT		647			854			1,411			1,751
Other EBIT		(38	)		(189	)		(128	)		(265	)
Interest Expense		(186	)		(194	)		(370	)		(376	)
Interest Income and Other (a)		38			32			73			79
Income Tax Expense from Continuing Operations		(177	)		(167	)		(356	)		(389	)
(Loss) Income from Discontinued Operations, net of tax		(2	)		13			1			15
Net Income		282			349			631			815
Less: Net Income (Loss) Attributable to Non-Controlling Interests		6			(2	)		11			(1	)
Net Income Attributable to Duke Energy Corporation	$	276		$	351		$	620		$	816
CAPITALIZATION
Total Common Equity								58	%		62	%
Total Debt								42	%		38	%
Total Debt							$	15,733		$	13,288
Book Value Per Share							$	16.51		$	16.99
Actual Shares Outstanding								1,294			1,265
CAPITAL AND INVESTMENT EXPENDITURES
U.S. Franchised Electric and Gas	$	847		$	778		$	1,557		$	1,653
Commercial Power		257			163			411			277
International Energy		27			27			39			83
Other		43			95			73			139
Total Capital and Investment Expenditures	$	1,174		$	1,063		$	2,080		$	2,152
EBIT BY BUSINESS SEGMENT
U.S. Franchised Electric and Gas	$	500		$	503		$	1,057		$	1,140
Commercial Power		79			235			193			381
International Energy		68			116			161			230
Total Reportable Segment EBIT		647			854			1,411			1,751
Other EBIT		(38	)		(189	)		(128	)		(265	)
Interest Expense		(186	)		(194	)		(370	)		(376	)
Interest Income and Other (a)		38			32			73			79
Income From Continuing Operations Before Income Taxes	$	461		$	503		$	986		$	1,189

(a) Other within Interest Income and Other includes foreign currency transaction gains and losses, an adjustment to add back the non-controlling interest component of reportable segment and Other EBIT and additional non-controlling interest amounts not allocated to the reportable segment and Other results.

5

JUNE 2009

QUARTERLY HIGHLIGHTS

(Unaudited)

	Three Months Ended June 30,						Six Months Ended June 30,
(In millions, except where noted)	2009			2008			2009			2008
U.S. FRANCHISED ELECTRIC AND GAS
Operating Revenues	$	2,149		$	2,402		$	4,657		$	5,003
Operating Expenses		1,692			1,939			3,666			3,938
Gains on Sales of Other Assets and Other, net		13			—			13			3
Other Income and Expenses, net		30			40			53			72
EBIT	$	500		$	503		$	1,057		$	1,140
Depreciation and Amortization	$	319		$	333		$	641		$	665
Duke Energy Carolinas GWh sales		18,862			21,036			39,292			43,091
Duke Energy Midwest GWh sales		13,369			15,018			27,921			31,294
Net Proportional MW Capacity in Operation								27,242			27,333
COMMERCIAL POWER
Operating Revenues	$	474		$	481		$	1,011		$	931
Operating Expenses		413			282			849			605
Gains on Sales of Other Assets and Other, net		—			32			5			46
Other Income and Expenses, net		18			4			26			9
EBIT	$	79		$	235		$	193		$	381
Depreciation and Amortization	$	49		$	42		$	104		$	85
Actual Plant Production, GWh		6,132			4,947			12,427			10,866
Net Proportional MW Capacity in Operation								8,071			7,550
INTERNATIONAL ENERGY
Operating Revenues	$	271		$	334		$	526		$	623
Operating Expenses		225			254			386			466
Gains on Sales of Other Assets and Other, net		—			1			—			1
Other Income and Expenses, net		26			41			32			83
Expense Attributable to Non-Controlling Interests		4			6			11			11
EBIT	$	68		$	116		$	161		$	230
Depreciation and Amortization	$	19		$	21		$	38		$	42
Sales, GWh		4,277			4,918			8,935			9,162
Proportional MW Capacity in Operation								4,051			4,010
OTHER
Operating Revenues	$	42		$	35		$	78		$	56
Operating Expenses		94			127			182			221
Gains on Sales of Other Assets and Other, net		—			—			1			1
Other Income and Expenses, net		17			(100	)		(21	)		(105	)
Expense (Benefit) Attributable to Non-Controlling Interests		3			(3	)		4			(4	)
EBIT	$	(38	)	$	(189	)	$	(128	)	$	(265	)
Depreciation and Amortization	$	20		$	22		$	38		$	39

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DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In millions, except per-share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2009			2008			2009		2008
Operating Revenues	$	2,913		$	3,229		$	6,225	$	6,566
Operating Expenses		2,398			2,579			5,035		5,183
Gains on Sales of Other Assets and Other, net		13			33			19		51
Operating Income		528			683			1,209		1,434
Other Income and Expenses, net		119			14			147		131
Interest Expense		186			194			370		376
Income From Continuing Operations Before Income Taxes		461			503			986		1,189
Income Tax Expense from Continuing Operations		177			167			356		389
Income From Continuing Operations		284			336			630		800
(Loss) Income From Discontinued Operations, net of tax		(2	)		13			1		15
Net Income		282			349			631		815
Less: Net Income (Loss) Attributable to Non-Controlling Interests		6			(2	)		11		(1	)
Net Income Attributable to Duke Energy Corporation	$	276		$	351		$	620	$	816
Earnings Per Share – Basic and Diluted
Income from continuing operations attributable to Duke Energy Corporation common shareholders
Basic	$	0.22		$	0.27		$	0.48	$	0.63
Diluted	$	0.22		$	0.27		$	0.48	$	0.63
Income from discontinued operations attributable to Duke Energy Corporation common shareholders
Basic	$	—		$	0.01		$	—	$	0.01
Diluted	$	—		$	0.01		$	—	$	0.01
Net income attributable to Duke Energy Corporation common shareholders
Basic	$	0.21		$	0.28		$	0.48	$	0.64
Diluted	$	0.21		$	0.28		$	0.48	$	0.64
Dividends per share	$	0.47		$	0.45		$	0.70	$	0.67
Weighted-average shares outstanding
Basic		1,288			1,264			1,284		1,264
Diluted		1,289			1,266			1,285		1,266

7

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)

	June 30, 2009		December 31, 2008
ASSETS
Current Assets	$	5,391	$	5,273
Investments and Other Assets		10,074		10,020
Net Property, Plant and Equipment		35,429		34,036
Regulatory Assets and Deferred Debits		3,815		3,748
Total Assets	$	54,709	$	53,077
LIABILITIES AND EQUITY
Current Liabilities	$	4,141	$	4,345
Long-term Debt		14,433		13,250
Deferred Credits and Other Liabilities		14,775		14,331
Equity		21,360		21,151
Total Liabilities and Equity	$	54,709	$	53,077

8

DUKE ENERGY CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In millions)

	Six Months Ended June 30,
	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	631		$	815
Adjustments to reconcile net income to net cash provided by operating activities		386			880
Net cash provided by operating activities		1,017			1,695
CASH FLOWS FROM INVESTING ACTIVITIES
Net cash used in investing activities		(2,133	)		(2,527	)
CASH FLOWS FROM FINANCING ACTIVITIES
Net cash provided by financing activities		836			871
Net (decrease) increase in cash and cash equivalents		(280	)		39
Cash and cash equivalents at beginning of period		986			678
Cash and cash equivalents at end of period	$	706		$	717

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Duke Energy Carolinas

Quarterly Highlights

Supplemental Franchised Electric Information

June 2009

	Quarter Ended June 30,						Year To Date June 30,
	2009		2008		% Inc.(Dec.)		2009		2008		% Inc.(Dec.)
GWH Sales
Residential	5,661		5,729		(1.2	%)	13,518		13,228		2.2	%
General Service	6,534		6,629		(1.4	%)	13,038		13,078		(0.3	%)
Industrial – Textile	896		1,177		(23.8	%)	1,713		2,289		(25.2	%)
Industrial – Other	3,837		4,631		(17.2	%)	7,481		9,006		(16.9	%)
Total Industrial	4,733		5,808		(18.5	%)	9,194		11,295		(18.6	%)
Other Energy Sales	71		71		0.5	%	143		142		0.9	%
Regular Resale	18		393		(95.4	%)	174		818		(78.8	%)
Total Regular Sales Billed	17,017		18,630		(8.7	%)	36,067		38,561		(6.5	%)
Special Sales	1,029		1,653		(37.7	%)	2,791		4,177		(33.2	%)
Total Electric Sales	18,046		20,283		(11.0	%)	38,858		42,738		(9.1	%)
Unbilled Sales	816		753		8.4	%	434		353		22.9	%
Total Consolidated Electric Sales – Carolinas	18,862		21,036		(10.3	%)	39,292		43,091		(8.8	%)
Average Number of Customers
Residential	2,021,159		2,008,917		0.6	%	2,021,917		2,006,703		0.8	%
General Service	331,163		331,299		0.0	%	330,976		330,890		0.0	%
Industrial – Textile	654		672		(2.6	%)	656		676		(3.0	%)
Industrial – Other	6,687		6,542		2.2	%	6,695		6,551		2.2	%
Total Industrial	7,341		7,214		1.8	%	7,351		7,227		1.7	%
Other Energy Sales	13,905		13,656		1.8	%	13,863		13,618		1.8	%
Regular Resale	6		21		(71.4	%)	9		21		(59.5	%)
Total Regular Sales	2,373,574		2,361,107		0.5	%	2,374,116		2,358,459		0.7	%
Special Sales	26		31		(15.1	%)	29		37		(22.1	%)
Total Avg Number of Customers – Carolinas	2,373,600		2,361,138		0.5	%	2,374,145		2,358,496		0.7	%
Heating and Cooling Degree Days
Actual
Heating Degree Days	199		216		(7.8	%)	1,984		1,895		4.7	%
Cooling Degree Days	532		544		(2.2	%)	539		546		(1.1	%)
Variance from Normal
Heating Degree Days	(7.6	%)	(4.6	%)	n/a		4.0	%	(1.0	%)	n/a
Cooling Degree Days	13.0	%	21.3	%	n/a		12.9	%	20.5	%	n/a

10

Duke Energy – Midwest

Quarterly Highlights

Supplemental Franchised Electric Information

June 2009

	Quarter Ended June 30,			Year To Date June 30,
	2009	2008	% Inc.(Dec.)	2009		2008		% Inc.(Dec.)
GWH Sales
Residential	3,567	3,651	(2.3%)	9,045		9,153		(1.2%)
General Service	4,323	4,365	(1.0%)	8,754		8,917		(1.8%)
Industrial	3,395	4,293	(20.9%)	6,814		8,580		(20.6%)
Other Energy Sales	42	43	(2.3%)	85		87		(2.3%)
Total Regular Electric Sales Billed	11,327	12,352	(8.3%)	24,698		26,737		(7.6%)
Special Sales	1,731	2,433	(28.9%)	3,465		4,613		(24.9%)
Total Electric Sales Billed – Midwest	13,058	14,785	(11.7%)	28,163		31,350		(10.2%)
Unbilled Sales	311	233	33.5%	(242	)	(56	)	(332.1%)
Total Electric Sales – Midwest	13,369	15,018	(11.0%)	27,921		31,294		(10.8%)
Average Number of Customers
Residential	1,397,301	1,402,355	(0.4%)	1,402,242		1,407,411		(0.4%)
General Service	184,201	184,745	(0.3%)	184,457		184,791		(0.2%)
Industrial	5,507	5,605	(1.7%)	5,521		5,613		(1.6%)
Other Energy	4,098	3,995	2.6%	4,083		3,972		2.8%
Total Regular Sales	1,591,107	1,596,700	(0.4%)	1,596,303		1,601,787		(0.3%)
Special Sales	16	37	(56.8%)	20		38		(47.4%)
Total Avg Number Electric Customers – Midwest	1,591,123	1,596,737	(0.4%)	1,596,323		1,601,825		(0.3%)
Heating and Cooling Degree Days *
Actual
Heating Degree Days	227	242	(6.2%)	2,368		2,527		(6.3%)
Cooling Degree Days	363	290	25.2%	363		290		25.2%
Variance from Normal
Heating Degree Days	0.9%	1.7%	n/a	3.5%		9.1%		n/a
Cooling Degree Days	14.9%	0.0%	n/a	13.4%		(1.0%)		n/a

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

11

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

June 2008 Quarter-to-Date

(Dollars in millions, except per-share amounts)

				Special Items (Note 1)
	Adjusted Earnings			Costs to Achieve, Cinergy Merger			Crescent Project Impairments			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS
U.S. Franchised Electric and Gas	$	503		$	—		$	—		$	—		$	—		$	—		$	503
Commercial Power		128			—			—			107	B		—			107			235
International Energy		116			—			—			—			—			—			116
Total reportable segment EBIT		747			—			—			107			—			107			854
Other		(77	)		(12	) A		(100	) D		—			—			(112	)		(189	)
Total reportable segment EBIT and other EBIT	$	670		$	(12	)	$	(100	)	$	107		$	—		$	(5	)	$	665
Interest Expense		(194	)		—			—			—			—			—			(194	)
Interest Income and Other		32			—			—			—			—			—			32
Income Taxes from Continuing Operations		(173	)		5			39			(38	)		—			6			(167	)
Discontinued Operations, net of taxes		—			—			—			—			13	C		13			13
Less: Net Income Attributable to Non-Controlling Interests		(2	)		—			—			—			—			—			(2	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	337		$	(7	)	$	(61	)	$	69		$	13		$	14		$	351
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	0.27		$	—		$	(0.05	)	$	0.05		$	0.01		$	0.01		$	0.28
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.27		$	—		$	(0.05	)	$	0.05		$	0.01		$	0.01		$	0.28

Note 1 – Amounts for special items are presented net of any related non-controlling interest.

A – $6 million recorded in Operation, maintenance and other and $6 million recorded in Depreciation and amortization (all Operating Expenses) on the Consolidated Statements of Operations.

B – $20 million gain recorded within Non-regulated electric, natural gas, and other (Operating Revenues) and $87 million gain recorded within Fuel used in electric generation and purchased power – non-regulated (Operating Expenses) on the Consolidated Statements of Operations.

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

D – Recorded in Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – in millions

Basic	1,264
Diluted	1,266

* Represents the mark-to-market impact of derivative contracts, which is recognized in earnings immediately as such derivative contracts do not qualify for hedge accounting, used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to investors, as it allows them to more accurately compare the company’s performance across periods.

12

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

June 2008 Year-to-Date

(Dollars in millions, except per-share amounts)

				Special Items (Note 1)
	Adjusted Earnings			Costs to Achieve, Cinergy Merger			Crescent Project Impairments			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS
U.S. Franchised Electric and Gas	$	1,140		$	—		$	—		$	—		$	—		$	—		$	1,140
Commercial Power		227			—			—			154	B		—			154			381
International Energy		230			—			—			—			—			—			230
Total reportable segment EBIT		1,597			—			—			154			—			154			1,751
Other		(142	)		(23	) A		(100	) D		—			—			(123	)		(265	)
Total reportable segment and other EBIT	$	1,455		$	(23	)	$	(100	)	$	154		$	—		$	31		$	1,486
Interest Expense		(376	)		—			—			—			—			—			(376	)
Interest Income and Other		79			—			—			—			—			—			79
Income Taxes from Continuing Operations		(382	)		9			39			(55	)		—			(7	)		(389	)
Discontinued Operations, net of taxes		—			—			—			—			15	C		15			15
Less: Net Income Attributable to Non-Controlling Interests		(1	)		—			—			—			—			—			(1	)
Net Income (Loss) Attributable to Duke Energy Corporation	$	777		$	(14	)	$	(61	)	$	99		$	15		$	39		$	816
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	0.61		$	(0.01	)	$	(0.05	)	$	0.08		$	0.01		$	0.03		$	0.64
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.61		$	(0.01	)	$	(0.05	)	$	0.08		$	0.01		$	0.03		$	0.64

Note 1 – Amounts for special items are presented net of any related non-controlling interest.

A – $12 million recorded in Operation, maintenance and other and $11 million recorded in Depreciation and amortization (all Operating Expenses) on the Consolidated Statements of Operations.

B – $9 million gain recorded within Non-regulated electric, natural gas, and other (Operating Revenues) and $145 million gain recorded within Fuel used in electric generation and purchased power – non-regulated (Operating Expenses) on the Consolidated Statements of Operations.

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

D – Recorded in Equity in earnings (losses) of unconsolidated affiliates on the Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – in millions

Basic	1,264
Diluted	1,266

* Represents the mark-to-market impact of derivative contracts, which is recognized in earnings immediately as such derivative contracts do not qualify for hedge accounting, used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to investors, as it allows them to more accurately compare the company’s performance across periods.

13

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

June 2009 Quarter-to-Date

(Dollars in millions, except per-share amounts)

				Special Items (Note 1)
	Adjusted Earnings			Costs to Achieve, Cinergy Merger			Crescent Related Guarantees and Tax Adjustments			International Transmission Adjustment			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS
U.S. Franchised Electric and Gas	$	500		$	—		$	—		$	—		$	—		$	—		$	—		$	500
Commercial Power		115			—			—			—			(36	) B		—			(36	)		79
International Energy		94			—			—			(26	) E		—			—			(26	)		68
Total reportable segment EBIT		709			—			—			(26	)		(36	)		—			(62	)		647
Other		(37	)		(8	) A		7	D		—			—			—			(1	)		(38	)
Total reportable segment and Other EBIT	$	672		$	(8	)	$	7		$	(26	)	$	(36	)	$	—		$	(63	)	$	609
Interest Expense		(180	)		—			—			(6	)		—			—			(6	)		(186	)
Interest Income and Other		38			—			—			—			—			—			—			38
Income Taxes from Continuing Operations		(190	)		3			(13	)		10			13			—			13			(177	)
Discontinued Operations, net of taxes		—			—			—			—			—			(2	) C		(2	)		(2	)
Less: Net Income Attributable to Non-Controlling Interests		6			—			—			—			—			—			—			6
Net Income (Loss) Attributable to Duke Energy Corporation	$	334		$	(5	)	$	(6	)	$	(22	)	$	(23	)	$	(2	)	$	(58	)	$	276
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	0.26		$	—		$	(0.01	)	$	(0.02	)	$	(0.02	)	$	—		$	(0.05	)	$	0.21
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.26		$	—		$	(0.01	)	$	(0.02	)	$	(0.02	)	$	—		$	(0.05	)	$	0.21

Note 1 – Amounts for special items are presented net of any related non-controlling interest.

A – $3 million recorded in Operation, maintenance and other and $5 million recorded in Depreciation and amortization (all Operating Expenses) on the Consolidated Statements of Operations.

B – $20 million loss recorded within Non-regulated electric, natural gas, and other (Operating Revenues) and $16 million loss recorded within Fuel used in electric generation and purchased power – non-regulated (Operating Expenses) on the Consolidated Statements of Operations.

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

D – Recorded in Other income and expenses, net on the Consolidated Statements of Operations.

E – $30 million recorded in Operation, maintenance and other, $2 million recorded as a reduction to fuel used in electric generation and purchased power – non-regulated, and $2 million as a reduction to Net income (loss) attributable to non-controlling interests on the Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – in millions

Basic	1,288
Diluted	1,289

* Represents the mark-to-market impact of derivative contracts in the non-native portfolio, which is recognized in earnings immediately as such derivative contracts do not qualify for hedge accounting, used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to investors, as it allows them to more accurately compare the company’s performance across periods.

14

DUKE ENERGY CORPORATION

ADJUSTED TO REPORTED EARNINGS RECONCILIATION

June 2009 Year-to-Date

(Dollars in millions, except per-share amounts)

				Special Items (Note 1)
	Adjusted Earnings			Costs to Achieve, Cinergy Merger			Crescent Related Guarantees and Tax Adjustments			International Transmission Adjustment			Economic Hedges (Mark-to- Market) *			Discontinued Operations			Total Adjustments			Reported Earnings
SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS
U.S. Franchised Electric and Gas	$	1,057		$	—		$	—		$	—		$	—		$	—		$	—		$	1,057
Commercial Power		218			—			—			—			(25	) B		—			(25	)		193
International Energy		187			—			—			(26	) E		—			—			(26	)		161
Total reportable segment EBIT		1,462			—			—			(26	)		(25	)		—			(51	)		1,411
Other		(87	)		(15	) A		(26	) D		—			—			—			(41	)		(128	)
Total reportable segment and Other EBIT	$	1,375		$	(15	)	$	(26	)	$	(26	)	$	(25	)	$	—		$	(92	)	$	1,283
Interest Expense		(364	)		—			—			(6	)		—			—			(6	)		(370	)
Interest Income and Other		73			—			—			—			—			—			—			73
Income Taxes from Continuing Operations		(381	)		6			—			10			9			—			25			(356	)
Discontinued Operations, net of taxes		—			—			—			—			—			1	C		1			1
Less: Net Income Attributable to Non-Controlling Interests		11			—			—			—			—			—			—			11
Net Income (Loss) Attributable to Duke Energy Corporation	$	692		$	(9	)	$	(26	)	$	(22	)	$	(16	)	$	1		$	(72	)	$	620
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, BASIC	$	0.54		$	(0.01	)	$	(0.02	)	$	(0.02	)	$	(0.01	)	$	—		$	(0.06	)	$	0.48
EPS ATTRIBUTABLE TO DUKE ENERGY CORPORATION, DILUTED	$	0.54		$	(0.01	)	$	(0.02	)	$	(0.02	)	$	(0.01	)	$	—		$	(0.06	)	$	0.48

Note 1 – Amounts for special items are presented net of any related non-controlling interest.

A – $7 million recorded in Operation, maintenance and other and $8 million recorded in Depreciation and amortization (all Operating Expenses) on the Consolidated Statements of Operations.

B – $1 million loss recorded within Non-regulated electric, natural gas, and other (Operating Revenues) and $24 million loss recorded within Fuel used in electric generation and purchased power – non-regulated (Operating Expenses) on the Consolidated Statements of Operations.

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

D – Recorded in Other income and expenses, net on the Consolidated Statements of Operations.

E – $30 million recorded in Operation, maintenance and other, $2 million recorded as a reduction to fuel used in electric generation and purchased power – non-regulated, and $2 million as a reduction to Net income (loss) attributable to non-controlling interests on the Consolidated Statements of Operations.

Weighted Average Shares (reported and adjusted) – in millions

Basic	1,284
Diluted	1,285

* Represents the mark-to-market impact of derivative contracts in the non-native portfolio, which is recognized in earnings immediately as such derivative contracts do not qualify for hedge accounting, used in Duke Energy’s hedging of a portion of the economic value of its generation assets in the Commercial Power segment. The economic value of the generation assets is subject to fluctuations in fair value due to market price volatility of the input and output commodities (e.g. coal, power) and, as such, the economic hedging involves both purchases and sales of those input and output commodities related to the generation assets. Because the operations of the generation assets are accounted for under the accrual method, management believes that excluding the impact of mark-to-market changes of the economic hedge contracts from adjusted earnings until settlement better matches the financial impacts of the hedge contract with the portion of the economic value of the underlying hedged asset. Management believes that the presentation of adjusted diluted EPS Attributable to Duke Energy Corporation provides useful information to investors, as it allows them to more accurately compare the company’s performance across periods.

15