Duke Energy

Duke Energy Corporation
Company type	Public
Industry	Electric power and natural gas
Founded	1900
Founder	Walker Gill Wylie and his brother
Headquarters	Charlotte, North Carolina, United States
Area served	United States (including North Carolina, South Carolina, Kentucky, Ohio, Indiana, Florida)
Key people	Lynn Good (CEO)
Products	Electric power generation and distribution, natural gas distribution
Number of employees	27,037 (2023)
Website	www.duke-energy.com

Duke Energy Corporation is a U.S.-based electric power and natural gas holding company with its headquarters located in Charlotte, North Carolina. It achieved its highest-ever ranking at 141st on the 2024 Fortune 500 list.

Overview

Operating out of Charlotte, Duke Energy controls 58,200 megawatts of base-load and peak electricity generation capacity across the United States. The company serves approximately 7.2 million customers and employs around 29,000 staff members. Its service area encompasses extensive distribution infrastructure spanning . The majority of generation in the Midwest relies on coal, natural gas, or oil, whereas nearly half of the electricity produced in the Carolinas originates from nuclear power plants. In 2006, Duke Energy's total electricity production reached 148.8 million megawatt-hours.

Duke Energy Renewable Services (DERS), a subsidiary dedicated to renewable energy, owns, develops, and operates power generation facilities nationwide, managing a capacity of 1,700 megawatts. As of 2008, DERS had 240 megawatts of wind power projects under construction and planned an additional 1,500 megawatts. By the end of that year, the subsidiary anticipated having over 500 megawatts of wind energy capacity operational and around 5,000 megawatts in development.

Subsidiaries

Duke Energy Carolinas (previously Duke Power)
Duke Energy Ohio (formerly Cincinnati Gas & Electric Company through Cinergy)
Duke Energy Kentucky (formerly Union Light, Heat & Power via Cinergy)
Duke Energy Indiana (formerly Public Service Indiana via Cinergy)
Duke Energy Florida (formerly Florida Power Corporation through Progress Energy)
Duke Energy Progress (previously Carolina Power and Light, acquired via Progress Energy)
Duke Energy Renewables
Duke Energy Retail
Duke Energy International
Duke Energy Sustainable Solutions
Duke Energy One
Piedmont Natural Gas

History

Established in 1900 as Catawba Power Company by Walker Gill Wylie and his brother, the firm initially constructed a hydroelectric plant on the Catawba River. To facilitate growth, Wylie obtained funding from James B. Duke and James Blaney for Southern Power Company in 1905. In 1917, Blaney created Wateree Power Company to serve as a holding entity for utilities owned by Duke and his partners; this was renamed Duke Power in 1924. By 1927, several subsidiaries—including Southern Power, Catawba Power, Great Falls Power, and Western Carolina Power—were consolidated into Duke Power. Southern Public Utilities operated separately for retail marketing purposes and managed transit systems that transitioned from streetcars to buses over time.

In 1973, Eastover Mining Company—a Duke Power subsidiary—endured a labor strike lasting thirteen months at the Brookside coal mine in Kentucky concerning medical benefits and union recognition. The strike concluded with an agreement acknowledging the United Mine Workers local.

In 1988, Duke expanded by acquiring Nantahala Power & Light Co. from Alcoa, gaining operations in southwestern North Carolina along with its initial connection to the TVA grid. Nantahala was subsequently merged into Duke Energy Carolinas.

Duke exited the transit business in 1990. In 1997, Duke Power combined with PanEnergy—a natural gas company—to form Duke Energy; however, the Duke Power name continued to be used for electric utilities until after the Cinergy merger.

The acquisition of Cinergy in 2006 broadened Duke’s customer reach into the Midwest region. The company operates diverse facilities including nuclear reactors, coal-fired plants, hydroelectric stations, natural gas turbines designed for peak demand periods, and pumped hydro storage systems. That same year also saw Duke acquire Ontario-based Union Gas.

On January 3, 2007, Duke separated its gas operations into Spectra Energy; shareholders were issued one share of Spectra for every two shares of Duke held. Following this spin-off, Duke’s revenues mainly stemmed from electric utility services across North Carolina, South Carolina, Kentucky, Ohio, and Indiana.

In 2011, Duke partnered with Charlotte business leaders on the "Envision Charlotte" initiative aimed at reducing energy consumption by commercial buildings in the urban core by 20%.

On July 3, 2012, Duke merged with Progress Energy Inc., retaining the Duke name and keeping its headquarters in Charlotte.

Leadership changes occurred in June 2013 when Jim Rogers retired as CEO and CFO Lynn Good was promoted to CEO—a decision associated with addressing an investigation related to the Progress acquisition.

In 2016, Duke purchased Piedmont Natural Gas for $4.9 billion as a fully owned subsidiary while divesting its remaining power assets in Central and South America for $1.2 billion. Prior to divestiture, Duke maintained over 4,300 megawatts of generation capacity across Latin America including eight hydroelectric plants in Brazil totaling 2,307 megawatts.

Beginning in 2017, Duke announced plans to invest $13 billion to modernize North Carolina’s electrical grid.

On December 3, 2022, deliberate attacks on two substations in Moore County, North Carolina resulted in outages impacting up to 40,000 customers for several days. The FBI supported investigations treating the incident as potential domestic terrorism under the Patriot Act; authorities declared a state of emergency and closed schools during restoration efforts.

Proposed Nuclear Facility

On March 16, 2006, Duke Power revealed plans for a prospective nuclear power station located in Cherokee County, South Carolina, in partnership with Southern Company. The project envisioned the installation of two AP1000 pressurized water reactors from Westinghouse Electric Company, each with a capacity near 1,117 megawatts.

Duke Power filed a Combined Construction and Operating License application with the Nuclear Regulatory Commission on December 14, 2007, indicating an initial investment of $160 million in 2008 within an overall budget estimated between $5 billion and $6 billion. The facility obtained regulatory approval in 2016.

In August 2017, Duke requested authorization from the North Carolina Utility Commission to halt the project due to Westinghouse's bankruptcy and evolving market dynamics, while maintaining the possibility to resume development if conditions become favorable.

The location is adjacent to a defunct plant site from the early 1980s, which served as a filming location for James Cameron’s 1989 film The Abyss.

By 2018, Duke Energy had removed new nuclear initiatives from its strategic planning horizon.

Corporate Headquarters

Duke Energy's original headquarters, known as the Power Building, was designed by J.A. Jones and completed in 1927 at 440 South Church. This five-story structure was later complemented by the Electric Center at 526 South Church Street, which opened in 1975 and expanded in 1988. In 2004, State Farm Insurance sold the Power Building for $8 million to The Dilweg Companies, which intended major redevelopment. Subsequently, Novare Group acquired the property at 408 South Church Street from The Dilweg Companies for $17 million in 2006. The Power Building was ultimately demolished on February 24, 2007.

The Duke Energy Center, located at 550 South Tryon Street, was designated as the company's headquarters in 2009. On May 17, 2021, Duke Energy announced plans to relocate in 2023 to Duke Energy Plaza, situated directly across from their current offices. Developed by Childress Klein, this new facility will allow Duke to divest its Church Street and College Street properties and terminate its lease at 400 South Tryon. Formerly called Charlotte Metro Tower, this 40-story building will be acquired upon completion for up to $675 million by Childress Klein and CGA Capital, constituting the largest real estate transaction in Charlotte’s history as of December 2019.

Financial Overview

For the fiscal year ending in 2017, Duke Energy reported net earnings of US$3.059 billion alongside total revenues of US$23.565 billion, marking a growth of 3.6% compared to the previous year. As of November 2018, shares were trading above $79 each with a market capitalization exceeding US$58.8 billion.

Year	Revenue (million US$)	Net Income (million US$)	Total Assets (million US$)	Employees
2005	6,906	1,812	54,723
2006	10,607	1,863	68,700
2007	12,720	1,500	49,686
2008	13,207	1,362	53,077
2009	12,731	1,075	57,040
2010	14,272	1,320	59,090
2011	14,529	1,706	62,526
2012	17,912	1,768	113,856
2013	22,756	2,665	114,779	27,948
2014	22,509	1,883	120,557	28,344
2015	22,371	2,816	121,156	29,188
2016	22,743	2,152	132,761	28,798
2017	23,565	3,059	137,914	29,060
2018	24,521	2,666	145,392	30,083
2019	25,079	3,707	158,838	28,793
2020	'23,868	'1,270	'162,388	'27,535
'2021	'25,097	'3,802	'169,587	'27,605
'2022	'28,768	'2,444	'178,086	'27,859
'2023	'29,060	'2,735	'176,893	'27,037

Environmental performance

In 1999, the EPA initiated action against Duke Energy for upgrading outdated coal-fired plants without obtaining Clean Air Act permits. Duke contended that these upgrades did not necessitate permits; nevertheless, in 2007 the Supreme Court determined that such modifications led to increased emissions and therefore required permits.

By 2002, Duke was ranked as the 46th-largest corporate air polluter in the United States, emitting approximately 36 million pounds of hazardous substances annually, including sulfuric and hydrochloric acids as well as chromium compounds. After acquiring Cinergy in 2005—a company with significant fossil fuel operations—Duke ascended to 13th place among U.S. emitters of airborne pollutants by volume and toxicity, releasing around 80 million pounds that year.

In 2008, Duke revealed intentions to construct an 800-megawatt coal-fired power plant near Charlotte, North Carolina. This proposal encountered considerable resistance from environmental organizations and legal challenges. Duke has also been an active proponent of cap-and-trade systems for carbon emissions and withdrew from the National Association of Manufacturers due to disagreements over climate policies.

Duke partnered with French energy corporation AREVA to establish a joint venture called ADAGE, aimed at developing biomass energy facilities utilizing wood waste across the country. Their initial project focuses on the timber industry in Shelton, Washington, involving a $250 million biomass plant that will process 600,000 tons of wood residue each year. Permit filings for comparable facilities indicate emissions including particulate matter (up to 248 tons annually), nitrogen oxides (249 tons/year), sulfur dioxide (246 tons/year), carbon monoxide (248 tons/year), sulfuric acid mist (40 tons/year), volatile organic compounds (63 tons/year), and fluorides (29 tons/year).

Generating facilities

This compilation is partially updated following the July 3, 2012 merger with Progress Energy.

Biomass-fired

Shelton Biomass Facility (planned)

Nuclear

Catawba Nuclear Station
McGuire Nuclear Station
Oconee Nuclear Station
Shearon Harris Nuclear Power Plant
H. B. Robinson Nuclear Generating Station
Brunswick Nuclear Generating Station
Crystal River Nuclear Power Plant (decommissioned February 2013)

Coal-fired

Allen Steam Station
Belews Creek Steam Station
Beckjord Power Station
Cayuga Generating Station
Crystal River Energy Complex
East Bend Station
Edwardsport Station
Gallagher Station
Gibson Station
Marshall Steam Station
Mayo Plant
Miami Fort Power Station (transferred to Dynegy, 2014)
Riverbend Steam Station (retired)
Roxboro Steam Plant
Wabash River Station
William H. Zimmer Power Station (transferred to Dynegy, 2014)

Conventional hydroelectric

Duke Energy operates thirty conventional hydroelectric plants primarily situated in North and South Carolina, with one facility located in southern Indiana. Notable stations by average generating capacity include:

Cowans Ford Hydro Station, 350 MW
Keowee Hydro Station, 158 MW
Walters Hydroelectric Plant, 112 MW
Tillery Hydroelectric Plant, 87 MW
Rocky Creek & Cedar Creek Hydro Stations combined, 73 MW
Great Falls & Dearborn Hydro Stations combined, 70 MW
Markland Hydro Station, 65 MW (Indiana)
Mountain Island Hydro Station, 60 MW
Lake Wylie Hydro Station, 60 MW
Wateree Hydro Station, 56 MW
Fishing Creek Hydro Station, 37 MW
Oxford Hydro Station, 36 MW
Bridgewater Hydro Station at Lake James, 31.5 MW
Rhodhiss Hydro Station, 26 MW
Lookout Shoals Hydro Station, 26 MW
Blewett Hydroelectric Plant, 22 MW
Ninety-Nine Islands Plant, 18 MW
Gaston Shoals Plant, 9 MW
Tuxedo Plant, 5 MW
Marshall Plant, 4 MW
Ten Nantahala sites collectively producing approximately 99 MW

Pumped-storage hydro

Oil and gas-fired

Anclote Station
Asheville Combustion Turbines
Bartow Combined Cycle Station
Buck Steam Station
Buzzard Roost Station
Cayuga Combustion Turbine Station
Cliffside Steam Station
Connersville Peaking Station
Dan River Steam Station
Darlington County Electric Plant
Henry County Peaking Station
Hines Energy Complex
H.F. Lee Energy Complex
Lee Steam Station
W.S. Lee Steam Station
Lincoln Combustion Turbine Station
Madison Peaking Station
Miami-Wabash Peaking Station
Mill Creek Combustion Turbine Station
Noblesville Station
Rockingham Station
Smith Energy Complex
Sutton Combined Cycle Plant
Wabash River Repowering Station
Wheatland Peaking Station
Woodsdale Station

Solar farms

In response to decreasing costs, Duke Energy revealed plans in 2017 to develop three additional solar farms in Kentucky, collectively exceeding 6.7 MW across Kenton and Grant Counties. These projects supplement existing solar installations such as:

Davidson County Solar Farm
Martins Creek Solar Farm 1 MW (Murphy, NC)
Culberson Solar Farm 1 MW (Murphy, NC)
Osceola Solar Facility 4 MW (St. Petersburg, FL)

During 2017, Duke Energy expanded North Carolina's solar capacity by 451 MW, enhancing its renewable energy portfolio with facilities including:

Hamilton Solar Power Plant 74.9 MW (Jasper, FL)
Columbia Solar Power Plant 74.9 MW (Fort White, FL) (commissioned in 2020)
Live Oak Solar Power Plant (Live Oak, FL)

Building on earlier investments dating back to 2010, Duke Energy commenced commercial operations of several Texas solar farms in 2020:

Blue Wing Solar Project (San Antonio, TX)
Lapetus Solar Project 100 MW (Andrews County, TX)
Holstein Solar Project 200 MW (Nolan County, TX)
Rambler Solar Project 200 MW (Tom Green County, TX)

Wind farms

Electric vehicles

In October 2018, Duke Energy announced a plan to deploy 530 electric car charging stations throughout Florida, dedicating 10% of these installations to serve low-income neighborhoods.

Awards

Business Insider recognized Duke Energy as one of The 50 Best Employers In America. In 2002, the company was awarded the Ig Nobel Prize in Economics for its innovative use of imaginary numbers in business applications.

Criticism

Cinergy Corp agreed to a $1.4 billion settlement over unlawful pollution issues in December 2000; Duke Energy later acquired Cinergy in 2006. In July 2004, Duke paid $208 million to resolve accusations of price gouging during the California energy crisis. By 2009, Duke consented to invest $93 million to address Clean Air Act violations aiming for an 86% cut in sulfur dioxide emissions.

Greenpeace launched a campaign in 2011 urging Duke to cease mountaintop removal coal mining and increase renewable energy generation to one-third by 2020 while targeting coal elimination by 2030. That same year, Duke settled for $30 million concerning pension modifications that disproportionately impacted employees aged over 40.

Public Campaign criticized Duke in 2011 for expending $17.47 million on lobbying efforts while paying no federal income taxes from 2008 through 2010 despite earning $5.4 billion in profits and increasing executive pay. Greenpeace also protested Duke’s lobbying activities within the Democratic Party and its financial support for the 2012 Democratic National Convention.

In July 2012, controversy arose after Duke compensated former Progress Energy CEO Bill Johnson with $44.7 million following less than twenty minutes serving as Duke’s CEO. That year, Duke filed suit against Citrus County, Florida over tax assessments; an independent appraisal determined the county’s valuation was actually underestimated.

Student-led campaigns at Brown University targeted Duke Energy for fossil fuel divestment efforts in May 2013. The February 2014 Dan River coal ash spill prompted a grand jury investigation; Duke pled guilty to nine counts of criminal negligence and agreed to pay $102 million in fines and restitution. The company is mandated to close all thirty-two coal ash ponds in North Carolina by the year 2029.

In September 2016, Norway’s Government Pension Fund excluded Duke Energy due to significant environmental risks associated with the company. A report by the Environmental Working Group in 2020 accused Duke of charging Indiana customers nearly $12 billion for failed projects linked to contentious state legislation.

Investigative journalism in 2021 uncovered that Duke Energy collaborated with other utilities to finance "ghost" spoiler candidates during Florida legislative elections, influencing Democratic outcomes. Additionally, that year Duke reached a $1.1 billion settlement covering North Carolina coal ash pond closure and remediation costs through 2030—reducing expenses charged to ratepayers by approximately sixty percent.

In August 2021, officials from an Indiana municipality criticized Duke for sluggish progress on renewable energy initiatives and excessive charges imposed on low-income consumers.

December 2022 rolling blackouts

During December 2022, a significant winter storm impacted large regions across the United States. On December 24, Duke Energy initiated rolling blackouts for the first time ever, prompted by extraordinary energy consumption levels. These outages were executed without prior notice and extended for several hours. In addition to equipment malfunctions, Duke Energy identified software complications that managed the blackout process. Subsequently, the Federal Energy Regulatory Commission commenced an inquiry into the incident.

External links

Transcript of Oral Arguments before the Supreme Court, Environmental Defense v. Duke Energy Corp. (05-848)