We are affirming the 'A-' corporate credit rating on Duke Energy and all its subsidiaries. The outlook is positive. The ratings on Duke Energy may be raised by one notch if the company is successful in achieving a constructive regulatory outcome in the recently filed rate case in North Carolina, while the company ensures that the balance sheet remains strong in order to better withstand the strain of the large capital spending program. The positive outlook incorporates the potential for some weakness in the consolidated financial risk profile in the intermediate term resulting from the large capital spending program and the associated lag in incorporating the completed projects in rate base upon completion. On July 9, 2009, Standard&Poor's
