Overview Key strengths Key risks Vertically integrated, low-risk, rate-regulated electric utility. A very small customer base makes the company vulnerable to localized adverse weather events that could affect operations. Effectively manages regulatory risks under a generally constructive regulatory environment. A lack of regulatory diversity makes the company dependent on the Kentucky Public Service Commission (KPSC) to sustain its credit quality. Several regulatory mechanisms, including the ability to recover environmental-related investments and to pass through fuel-related costs to customers, support the company's management of regulatory risk. Power generation is primarily from coal, potentially exposing the company to environmental risks. DEK is a subsidiary of Duke Energy Ohio Inc. , whose ultimate parent is Duke . We consider DEK as a strategically
