Duke Energy Ohio Inc.

Overview Key strengths Key risks Lower risk regulated electric and natural gas utility operations. Greater exposure (about 65% of rate base) to the comparatively uncertain regulatory jurisdiction of Ohio. Generally effective regulatory risk management achieved, in part, through regulatory diversity given its electric and gas operations in Ohio and Kentucky. Ownership of fossil fuel-based generation indicates potential environmental risk. About 900,000 electric customers and about 550,000 natural gas customers, which provide stability to its cash flows. Negative discretionary cash flow over our forecast period indicates external funding needs. Our ratings on Duke Energy Ohio Inc. (DEO) are underpinned by our ratings on its parent, Duke Energy Corp. We consider DEO to be a strategically important subsidiary of Duke Energy. This

...Our ratings on Duke Energy Ohio Inc. (DEO) are underpinned by our ratings on its parent, Duke Energy Corp. We consider DEO to be a strategically important subsidiary of Duke Energy. This assessment limits the issuer credit rating on DEO to the group credit profile of the parent. Our business risk assessment for DEO remains excellent. This primarily reflects the company's lower-risk regulated utility model, cash flow diversity, and effective management of regulatory...

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