Regulated operations contribute about 90% of operating income; Operations in states with generally constructive regulatory environments; Large service territory with operating, regulatory, and customer diversity; International merchant generation operations increase business risk; and Coal ash storage issues pose an operating and regulatory challenge. Cash flow generation benefits from enhanced rate-setting practices and modest load growth; Large capital spending program can pressure financial profile absent timely rate relief; and Debt leverage at the holding company as well as subsidiaries. The stable rating outlook on Duke Energy Corp. reflects Standard&Poor's Ratings Services' expectation that the company's shedding of much of its merchant energy risk, directing most of its investments to its regulated utility operations, and confining the rest to other
