2 E n v i r o n m e n t a l F o o t p r i n t

CHALLENGES OPPORTUNITIES • Supply reliable and cost-effective energy while minimizing • Promote sound U.S. climate change policy our impact on the environment • Demonstrate the need for energy efficiency • Reduce greenhouse gases (GHGs) while meeting customers’ and multiple power generation options energy needs • Increase our use of renewable energy • Maintain momentum for renewable energy growth during this economic downturn • Plan for new generation during times of volatile fuel prices • Manage increasingly scarce water supplies in some regions • Monitor, influence and prepare for potential new rules associated with clean air, coal ash impoundments and mountaintop removal coal mining

2008 HIGHLIGHTS • Refined the scenarios associated with our 2030 • Continued (Edwardsport) and began (Cliffside) construction of advanced coal stations challenge to cut our 2006 U.S. CO2 emissions in half • Participated in collaborative efforts to promote • Conducted research on the potential for carbon capture and balanced energy policy sequestration • Took actions to reduce our GHG emissions • Continued to preserve the nuclear option by gaining U.S. Nuclear Regulatory Commission acceptance for review of our construction • Grew our renewable energy business and operating license application for the Lee Nuclear Station.

Advancing the Dialogue that could occur in certain regions without appropriate incentives for both consumers on Climate Change a fair national cap-and-trade system. and providers. As one of the nation’s largest emitters of carbon dioxide We believe that new nuclear power plants Duke Energy’s Chairman, President and

(CO2), we recognize are needed to decarbonize America’s Chief Executive Officer Jim Rogers is a our special respon- electric supply. We also believe the federal leading advocate for responsible climate sibility to be part of government should help bring new clean- change legislation. Appearing before the the solution to global coal technologies – particularly carbon Congressional Committee on Energy and climate change. We capture and storage – to market as quickly Commerce in January 2009 to present believe climate legisla- as possible. the U.S. Climate Action Partnership’s tion is imminent and will “Blueprint for Legislative Action,” Rogers have far-reaching effects on our economy. Renewable resources like wind and solar said: “Our economy has been increas- energy will also play a greater role in our ingly dependent on carbon-based fuels for We take a very active role in the global nation’s electricity mix. However, we must more than 100 years. We will not be able dialogue on how to aggressively, but upgrade the country’s transmission grid to to substantially decarbonize quickly or responsibly, combat climate change. For bring renewable power from remote areas easily – but the sooner we pass legislation instance, we support an economywide to highly populated regions. that equally balances the interests of our greenhouse gas cap-and-trade system environment, economy and consumers, that covers all emissions from fossil fuels. We encourage federal and state commit- the better off we all will be.” At the same time, we want to protect ments to energy efficiency and believe customers from the electricity “rate shock” energy efficiency programs must include

22 “What I’ve appreciated in Washington is that companies like Duke can be a powerful voice for change, and Jim Rogers’ participation in the U.S. Climate Action Partnership and support of its Blueprint for strong legislation have helped open the eyes of legislators to the urgent need for action.” – Fred Krupp, President, Environmental Defense Fund*

Update on New ‘Stroke of the Pen’ RiskS Regulations for inspection of these struc- Environmental Goals Legislation, regulation and litigation can tures vary by state. We inspect our dams Because our greatest sustainability change our business at the “stroke of the with a mix of annual in-depth and monthly risks and opportunities are pen.” A number of issues – beyond climate or periodic (i.e., after a significant rainfall) in the environmental focus area, change – are capturing headlines or are visual inspections. We recently reviewed we developed additional goals in under deliberation that could potentially our latest inspection reports to assure that 2007 to reduce our air, water and affect our use of coal. all resulting recommendations have been waste footprints. This is the first or are being addressed. year we are reporting progress on In February 2008, the U.S. Court of these goals. Highlights include: Appeals for the District of Columbia Circuit Another topic in the news recently is • We exceeded our 2008 goal to (also known as the D.C. Circuit) issued a mountaintop-removal coal mining. Duke reduce the nitrogen oxides (NOx) decision vacating the Clean Air Mercury Energy is obligated by state regulations emission rate by 10 percent and Rule (CAMR), which would have limited to purchase the most economic and high- mercury emissions from coal-fired plants quality coal possible, which may include the sulfur dioxide (SO2) emission rate by 35 percent from the coal- across the U.S. through a two-phased coal from mountaintop mines. We estimate fired power plants we operate, and cap-and-trade program beginning in that approximately 20 percent of the coal we have set equally aggressive 2010. Requests for rehearing and U.S. we burn comes from mountaintop mines. targets for 2009. Supreme Court review of the D.C. Circuit’s A bill to ban the use of mountaintop-mined • We finalized our methodology to decision were subsequently denied. The coal was reintroduced in North Carolina calculate vehicle fleet emissions U.S. Environmental Protection Agency in early 2009. Similar bills have been and compiled 2006 through 2008 (EPA) will now develop mercury emission introduced in other states and at the data. This will enable us to report standards for utility units under Section federal level. progress on our goal to reduce 112 of the Clean Air Act to abide with emissions 35 percent by 2012, the D.C. Circuit’s decision. Litigation over alleged industry violations compared to 2006. of the New Source Review (NSR) provi- • We are on track to reduce In July 2008, the D.C. Circuit issued a sions of the Clean Air Act (CAA) continued low-level radioactive waste decision vacating the Clean Air Interstate in 2008. Generally, the government (Class B and C) generated at Rule (CAIR) on emissions of sulfur alleges that projects performed at various our nuclear power plants 25 dioxide and nitrogen oxides. The federal coal-fired units were major modifications, percent by 2012, compared appeals court then reinstated the CAIR in as defined in the CAA. According to the to the 2002-2005 average. December 2008 as an interim solution government lawsuits, several utilities – • We are also on course to increase while the EPA develops a new clean air including Duke Energy – violated the the amount of coal combustion program to replace CAIR. Act when they undertook those projects products that are beneficially without obtaining permits and installing used 10 percent by 2012, In light of the accident at the Tennessee the best available emission controls for

compared to 2007. Valley Authority plant in December 2008, NOx, SO2 and particulate matter. We • We completed water balance the EPA plans to develop new regula- have maintained that no CAA violations surveys to better understand tions for coal ash management, including occurred because the regulations do not water usage at our Carolinas impoundments. These impoundments require permits in cases where the projects power plants, and continue to typically hold ash, mixed with water, in are routine or otherwise do not result in a collaborate with stakeholders to basins surrounded by an earthen berm. net increase in emissions. address drought conditions and long-term water management.

* A Q&A with Fred Krupp appears in the 2008 Duke Energy Summary Annual Report. The full interview is available on our Web site at www.duke-energy.com/ar.

ENVIRONMENTAL FOOTPRINT 23 2030 CHALLENGE UPDATE

A: Technology and public policy are the in technology, regulatory challenges, biggest drivers of change. Smart grid weather and customer demand for power, technology, for example, has the potential to name just a few. We have to stick to to allow us to be much better at energy our plan to reduce our carbon emissions efficiency and offer products that give our but be flexible enough to account for customers more control over their power these uncertainties. usage and costs. Carbon capture and sequestration technology might signifi- Q: Which of these variables pose the cantly reduce emissions. Legislative and greatest risk to Duke Energy cutting

regulatory changes could also pave the its CO2 emissions in half by 2030? way for further growth in renewable energy, especially our expanding wind, solar and A: We don’t have federal legislation on biomass businesses. carbon reductions yet. We don’t know Q & A what the expected reductions will be, We also need to ensure our stakeholders what prices will be placed on carbon in Doug Esamann understand the potential cost associated the marketplace, or if utilities like ours Senior Vice President, with reducing our carbon footprint. will get any allowances to mitigate the Strategy and Planning economic impacts on customers. That’s Q: What will Duke Energy’s path to signifi- especially important when you consider cantly lower carbon emissions look like? that a large percentage of our business is In the 2007|2008 Duke Energy Sustainability regulated. Without a clear road map, it’s Report, we described our challenge to cut our A: I don’t expect the path to carbon difficult to tell state utility commissions

2006 U.S. CO2 emissions in half by 2030. In reduction to be linear. Progress is bound and customers how much it will cost us the following Q&A, Doug Esamann, senior vice to be irregular, since we’re affected by to reduce carbon emissions, and this president of strategy and planning, provides an variables such as the pace of advances creates a bias for inaction. update on that work.

Q: What has Duke Energy learned from the

2030 scenarios? 2006 VS. 2030 FUEL MIX TO HALVE C02 EMISSIONS (PERCENT OF MWH GENERATED)

100 A: First and foremost, we realized how much we needed a specific, coherent vision like this to help us navigate to a low-carbon 80 future. Our 2030 framework is being used throughout the company. 60

We also learned a lot from sharing the work with various stakeholder groups. Some 40 said, “You’re not doing nearly enough with regard to renewable generation and energy 20 efficiency.” The revised 2030 scenario reflects our new assumptions. 0 2006 Baseline 2008 2030 Estimate – Original Scenario 2030 Estimate – Refined Scenario Q: What needs to change to enable Coal Nuclear Hydro/Natural Gas/Oil Renewables Energy Efficiency Duke Energy to halve its carbon emissions by 2030? For discussion purposes only

Turning Landfill Gas into Electric Power Duke Energy is a partner in a new South Carolina landfill gas-to-electricity project, which was selected as the 2008 Project of the Year by the National Landfill Methane Outreach Program. The facility, which began operating in September 2008, captures methane gas released during the natural decay of trash at Greenville County’s Enoree Landfill. The gas is then converted to electricity – enough to power roughly 2,000 average-size homes each year. Duke Energy will also purchase electricity from another landfill gas project in Durham, N.C., that will begin supplying electricity to approximately 1,600 residential customers in 2009. Capturing methane, a greenhouse gas, and using it as fuel is a green alternative to burning it as a waste product.

24 In the near term, coal, nuclear, natural gas and renewables must continue to be part of the supply equation as we strive to meet growing demand for reliable, affordable and increasingly clean energy.

Cleaner and More We will continue to study the potential The Nuclear Solution to Climate Change

Efficient: Diversifying to securely store CO2 in underground Building new nuclear power plants is Our Generation Fleet geological formations at or near the essential to any serious plan to decar- We are committed to diversifying our fleet Edwardsport site. The combination of bonize our nation’s energy supply. Nuclear- of power plants to meet the needs of a IGCC and carbon capture and seques- powered generation has a proven safety low-carbon future. In the near term, coal, tration could become a breakthrough record, operates with a very high degree of nuclear, natural gas and renewables must technology to reduce CO2 emissions. reliability and emits no greenhouse gases. continue to be part of the supply equation as we strive to meet growing demand In North Carolina, construction of a new We continue to pursue the option to for reliable, affordable and increasingly 825-MW advanced cleaner-coal unit is develop the 2,234-MW William States clean energy. Additionally, we call energy underway at the Cliffside Steam Station. Lee III Nuclear Station in Cherokee efficiency “the fifth fuel” because it reduces Cliffside Unit 6 will be one of the cleanest County, S.C. In early 2008, we received the need for new generation; the cleanest and most efficient pulverized coal-fired notice from the U.S. Nuclear Regulatory and most efficient power plant is the one units in the nation when it comes on line Commission (NRC) that our construction you don’t have to build. in 2012. and operating license application for the station was accepted for review. Based Making Cleaner Coal a Reality We will retire four less-efficient coal on the current NRC schedule, we expect Approximately half of the electricity gener- units at the site – totaling 200 MW of to receive this license by 2012. We also ated in the U.S. is produced with coal. capacity – and an additional 800 MW of received orders from the North Carolina As our nation transitions to a low-carbon older coal-fired generation once Cliffside Utilities Commission and the Public future, we are replacing older, less-efficient Unit 6 comes on line. We will take Service Commission of South Carolina coal plants with new, cleaner-burning coal additional actions to make Cliffside concurring that continued development technologies. In Edwardsport, Ind., we are Unit 6 “carbon neutral” by 2018. of the station is in our customers’ best building a state-of-the-art 630-megawatt interest. (MW) integrated gasification combined The modernization of existing Unit 5 cycle (IGCC) power plant. IGCC technology and construction of the new Unit 6 Most nuclear power plants now operating converts coal to a synthetic gas that is means that more than twice the amount in the U.S. were commissioned during the used to produce power. Duke Energy is of electricity will be generated at Cliffside 1960s, 1970s or 1980s. Clearly, the costs well-acquainted with IGCC technology. with significantly less emissions of SO2, associated with building a new nuclear We were involved with the design and NOx and mercury. station have risen considerably, and used construction of the IGCC plant in Terre fuel management is a continuing issue. Haute, Ind., a Department of Energy Natural Gas Remains in the Mix Today, used fuel is safely and securely demonstration project that has been in We received regulatory approval in June stored at each station in spent fuel pools or operation since 1994. 2008 to build two 620-MW combined dry canister storage. The federal govern- cycle, natural gas-fired generating plants ment continues to search for ways to meet When completed in 2012, the in North Carolina. These plants will help its obligation to provide centralized storage Edwardsport IGCC plant will be one us modernize our fleet and reduce air sites for used nuclear fuel. We support of the cleanest and most efficient coal- emissions. Both plants will be located the adoption of an alternative – used fuel fired power plants in the world. It will at existing power plant sites – the Buck recycling, a practice more commonly emit less sulfur dioxide, nitrogen oxides and Dan River steam stations. Given the found abroad. and particulates than the 50-year old economic downturn, we decided in late plant it replaces – while providing more 2008 to delay construction of the Buck than 10 times the generating capacity. plant for up to one year. Both plants can still be available to help meet customer demand in 2012.

ENVIRONMENTAL FOOTPRINT 25 Expanding Our to purchase approximately 16 MW of Renewable Energy Business electricity from what will be one of the We know we will be moving to a nation’s largest photovoltaic solar farms, low-carbon economy, and renewable to be built in North Carolina. The facility energy will play an increasingly important will generate enough electricity to power role in that transition. In 2008, we grew approximately 2,600 homes. our wind power business, proposed new solar energy projects and announced a We also proposed a program to install major biopower joint venture. photovoltaic solar panels on the rooftops or land of up to 400 of the North Carolina An Important Year for Wind Energy homes and businesses we serve. Under Through a series of strategic acquisitions this proposal, Duke Energy would and development projects, we significantly compensate these customers for the expanded our commercial wind power right to install photovoltaic solar panels business in 2008. By the end of the year, on their property. The electricity generated we had nearly 400 MW of wind power from these “mini power plants” would be in operation and another 5,000 MW capable of supplying about 1,300 houses. in potential development in 14 states, primarily in the Central, Western and Investing in Biopower Southwestern regions of the U.S. In September 2008, we announced a partnership with AREVA to develop We recently brought two wind biopower power projects on line: plants in the • The 29-MW Happy Jack U.S. ADAGE, Windpower Project, in Cheyenne, the company Wyo. (September 2008) formed by • Our 59-MW Ocotillo Wind Farm this joint venture, will build and operate located in Howard County, Texas biopower plants that use renewable, (November 2008) organic material – often referred to as biomass – to produce electricity. ADAGE The Notrees Windpower Project in Ector plans to start construction on its first and Winkler counties, Texas, will come biopower plant in 2010. on line in the spring of 2009. We also expect our new 99-MW Campbell Hill The American Council on Renewable Powering Wal-Mart Windpower Project near Casper, Wyo., Energy and many federal and state with Wind Energy to begin operating by the end of the environmental agencies consider biopower We announced an agreement in year. Duke Energy remains a 50 percent to be carbon-neutral. Duke Energy is November 2008 to supply wind owner of the Sweetwater facility in Nolan also exploring the feasibility of incorpo- energy to Wal-Mart, the largest retailer County, Texas – one of the largest wind rating biomass into the fuel mix at our in the world, for its growing Texas power projects in the world. In addition, fossil plants and studying the potential market. This deal represents the first we reached an agreement in September to convert a conventional fossil unit to substantial purchase of wind energy 2008 to purchase 100 General Electric biomass. by Wal-Mart in the U.S., and one of wind turbines that will produce 150 MW the first sales of power directly from a of electricity at various projects beginning Maintaining Our Legacy: specific wind project to a major retailer. in 2010. Hydroelectric Generation Duke Energy Carolinas traces its roots back Beginning in April 2009, Wal-Mart will In our regulated Indiana service territory, to 1904, when the company completed purchase electricity directly from Duke Duke Energy began purchasing up to its first generating station on the Catawba Energy’s Notrees Windpower Project in 100 MW of wind power from the Benton River. The plant used hydroelectric Texas. The site will provide wind power County Wind Farm in April 2008. power – the first large-scale renewable to up to 15 percent of 360 Wal-Mart energy source – to bring electricity to the stores and other facilities in the state. Shining a Light on Solar Power region. Today, we are the second-largest Solar power became an integral part of investor-owned hydroelectric operator in our renewable energy plans in 2008. We the U.S. We also own about 3,000 MW of signed a 20-year contract with SunEdison hydroelectric capacity in South America.

26 Learning Lessons about Climate Change Duke Energy is partnering with The Nature Conservancy to conduct climate change adaptation research in North Carolina’s Albemarle Peninsula.

The Albemarle is rich with forests, dunes, wetlands and sounds, and it is home to the healthiest estuary in the eastern U.S. The ecosystem’s Beautiful and functional peat-rich soils store large amounts Sunflower plantings provide food for wildlife and also help us reduce the need of carbon dioxide. Unfortunately, the to mow buffer areas around Riverbend Steam Station in Gaston County, N.C. area is being threatened by rising sea levels – partially attributed to climate change – that could contribute to Improving Wildlife Habitat In January 2009, the International In our 2007|2008 Sustainability Soil and Water Conservation Society the release of additional CO2 into the atmosphere. Report, we mentioned that several (N.C. chapter) recognized our of our properties have been certified environmental management practices We are contributing $1 million over as part of the North Carolina Wildlife with its Industrial Conservation three years to help fund research on Federation’s Wildlife and Industry Award. The society commended ways to slow saltwater intrusion in the Together (WAIT) program. WAIT our work on the replacement of a Albemarle. Project workers will plant pairs companies with volunteers 20-mile transmission line in rugged cypress trees to help hold soil in place and community groups to develop and scenic Macon and Graham and create oyster reefs to protect the corporate land into natural habitat. counties in North Carolina. Much of shorelines from erosion. They will also In 2008, six additional hydroelectric the construction project took place on modify drainage ditches to conduct stations we operate on the Catawba U.S. Forest Service land with steep saltwater away from ecologically River achieved this distinction, slopes, trout streams and sensitive sensitive areas. bringing the total number of certi- wetlands. We applied stringent land fied stations in North Carolina to 10. and water guidelines to minimize the These actions are designed to give the Projects included planting wildlife project’s environmental impact. Albemarle time to adapt to climate food plots, protecting nesting areas, and hosting wildlife seminars on site. The annual Eagle Viewing Days at change and reduce the amount of CO2 released into the atmosphere. Lessons our Cayuga Station near Cayuga, Ind., learned from this project could prove We are also working with community continue to be a popular draw. During useful in addressing climate change groups to protect existing habitats. most years, the area hosts Indiana’s adaptation for coastal ecosystems For example, Boy Scout Troop 59 of largest population of mid-winter worldwide. Mt. Holly, N.C., is leading a number migratory bald eagles. The colder the of habitat upgrade projects at our weather, the more likely the birds Riverbend Steam Station. In 2008, will be seen. When area lakes and the scouts set up a half-mile grassy streams freeze in the winter, warm buffer zone along a nearby forest line. water discharged from the power This enhancement not only provides a plant keeps the river near the plant new sanctuary for birds, it also saves ice-free, attracting fish for the eagles on our maintenance costs since we to feed on. In addition to viewing now need to mow this parcel only eagles in the wild, the American once every four years. Eagle Foundation treats visitors to birds-of-prey demonstrations.

ENVIRONMENTAL FOOTPRINT 27 D u k e E n e r g y E n v i r o n m e n t a l P e r f o r m a n c e M e t r i c s

2008 Net U.S. Megawatt-hour Generation1 2.0% 0.9% MWH (thousands) Percent

Coal 102,297.4 69.9%

27.2% Nuclear 39,853.7 27.2% 69.9% Natural Gas/Oil 2,988.0 2.0% Wind/Hydro 1,263.3 0.9% Total 146,402.4 100.0% 1 All data based on Duke Energy’s ownership share of generating assets.

EmissionS 2006 2007 2008

2 Duke Energy’s carbon dioxide (CO2) Carbon Dioxide Emissions (thousand tons) emissions, measured in tons per year, are • U.S. *102,300 108,500 105,000 highly dependent on weather (tempera- • Latin America 3,000 3,100 2,700 ture) and demand for electricity. Carbon • Total *105,300 111,600 107,700 intensity, measured in pounds of CO2 per

net megawatt-hour generated, is primarily u.S. CO2 Emissions intensity (pounds per net MWh) 1,380 1,410 1,430 dependent upon the fuel mix in the U.S. Sulfur Dioxide Emissions (tons)3 *817,700 *682,300 427,700 generation portfolio. We expect our carbon SO2 Emissions intensity (pounds per net MWh) 11.0 8.9 5.8 intensity to decline as we add cleaner, U.S. Nitrogen Oxides Emissions (tons)3 *149,200 *130,500 122,700 more efficient power plants in the years NOx Emissions intensity (pounds per net MWh) 2.0 1.7 1.7 ahead. Sulfur dioxide (SO2) and nitrogen oxides (NOx) emissions and intensity are * These historical values differ slightly from what was reported last year and reflect updates or corrections that were made after the report was published. declining due to the addition of a signifi- 2 CO reported from U.S. electric generation and Duke Energy International operations, and based on ownership cant number of pollution control devices 2 share of stations. on our coal-fired power plants. However, these pollution control devices reduce overall plant efficiency, which has caused U.S. SULFUR DIOXIDE EMISSIONS (THOUSAND TONS)3 our carbon intensity to increase slightly in 900 recent years. 750 600 More information on our air 450 emissions is available at 300 http://www.duke-energy.com/ 150 environment/air-quality.asp. 0 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

U.S. NITROGEN OXIDES EMISSIONS (THOUSAND TONS)3

300 250 200 150 100 50 0 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08

3 SO2 and NOx reported from U.S. electric generation based on ownership share of coal-fired generating stations.

28 D u k e E n e r g y E n v i r o n m e n t a l P e r f o r m a n c e M e t r i c s

Fuels Consumed for U.S. Electric Generation4 2006 2007 2008 Coal (thousand tons) 46,500 46,779 45,049 Total 2007 TRI-reported releases for Duke Oil (thousand gallons) Not Compiled 23,018 22,232 Energy were down about 16% from 2006, mostly due to significant decreases in air Natural Gas (thousand decatherms) Not Compiled 33,652 26,784 emissions of hydrochloric acid, hydrogen 4 Generating plants owned and operated by Duke Energy fluoride, and sulfuric acid – which normally comprise about three-quarters of all TRI releases from our coal-fired plants. 5 U.S. Toxic Release inventory – TRI (pounds) Start-ups of several sulfur dioxide scrub- 2005 2006 2007 +/– from ‘06 bers in 2007 and lower chlorine content Releases to Air 80,172,829 75,751,707 59,583,874 -21% coal at some stations dramatically reduced Releases to Water 247,542 195,247 223,547 14% acid emissions. Increased use of nitrogen oxides controls at several Carolinas stations Releases to Land 15,234,393 14,223,652 15,592,508 10% also helped reduce sulfuric acid releases, Off-Site Transfers 77,123 64,365 91,986 43% as did continuing sulfur trioxide mitigation Total 95,731,887 90,234,971 75,491,915 -16% efforts at Midwest stations. 5 2008 data will not be available until July 2009. Data pertain to facilities Duke Energy owns or operates and is the responsible reporting party.

Coal combustion products primarily U.S. Coal Combustion products – CCPs (Thousand tons) include fly ash, bottom ash, gypsum and *2006 *2007 2008 a lime/sulfur compound resulting from Total CCPs Produced 8,472 8,533 8,554 sulfur dioxide removal. We market these Sluiced to Ponds6 3,060 2,821 2,554 products for beneficial use in applications Disposed in On-Site Landfills/Fills 3,426 4,229 3,544 such as concrete, structural fills, cement, wallboard and other construction products, Beneficially Used (excluding structural fills) 1,862 2,052 2,232 and we dispose of the rest in company Beneficially Used (including structural fills) 3,019 3,700 4,497 ponds or landfills. We are on track to * 2006 and 2007 historical values differ from what was reported last year and reflect updates or corrections that were meet our goal to increase beneficial use made after the report was published. (excluding structural fills) 10 percent by 6 CCPs sluiced to ponds are often dug out and disposed of in landfills or beneficially used in later years 2012 compared to 2007.

Of the 16 citations in 2008, no fines Regulatory Citations (Includes Duke Energy International) were associated with 12. The 2008 *2006 2007 2008 and 2007 total fines/penalties figures Citations 12 12 16 include proposed fines of $85,020 and Fines/Penalties (dollars) $8,850 $165,500 $141,657 $150,000, respectively, which have not * These historical values differ from what was reported last year to reflect changes that have occurred as fines been resolved. have been resolved.

Oil spills include releases of lubricating oil U.S. Reportable Oil Spills from generating stations, leaks from trans- 2006 2007 2008 formers or damage caused by third parties Spills 75 79 66 (typically due to auto accidents). Gallons 3,251 28,864 6,609

e n V I R o n m e n t a l p e R f o R m a n C E m e t R I C S 29