Favorable regulatory environments for both regulated electricity and natural gas transmission and distribution operations, Attractive service territory and markets for electric and natural gas operations with above average customer growth, Large and efficient regulated power generation fleet with well managed nuclear and coal plants providing for low-cost power and leading to above average competitive position, Significant gas transmission and distribution operations provide for low business risk and stable cash flows, and Proprietary trading has ceased and is being unwound. Merchant generation operations introduce cash flow volatility and can have significant collateral requirements, Merchant generation assets have underperformed, International operations introduce political and currency risk, and Exposure to cyclical real estate operations. The ratings on Duke Energy Corp. and its major
