11/03/06_Slides

Third Quarter Earnings ReviewNovember 3, 2006

Jim RogersPresident and Chief Executive Officer

David HauserGroup Executive and Chief Financial Officer

2Third Quarter Earnings Review November 3, 2006

Safe Harbor Statement

Some of the statements in this document concerning future company performance will be forward-looking within the meanings of the securities laws. Actual results may materially differ from those discussed in these forward-looking statements, and you should refer to the additional information contained in Duke Energy’s and Cinergy’s 2005 Form 10-Ks filed with the SEC and other SEC filings, concerning factors that could cause those results to be different than contemplated in today's discussion.

Reg G DisclosureIn addition, today's discussion includes certain non-GAAP financial measures as defined under SEC Regulation G. A reconciliation of those measures to the most directly comparable GAAP measures is available on our Investor Relations website at www.duke-energy.com.


Earnings Summary

• While the quarter is lower than 3Q05, we remain on track to achieve revised employee incentive target

Nearly all businesses off the expected mark for the quarterEmployee incentive target expected to be revised from $1.90 to $1.86 due to the Board authorized sale of CMTCommitted to delivering earnings to shareholdersOver at least the next three years, Duke Energy expects to deliver 4-6% growth and Spectra Energy expects to deliver 5-7% growth in on-going diluted earnings per share

• 3Q06 results represent combined company, while 3Q05 results are pre-merger and do not include Cinergy

3Q06 3Q05DUK Reported Earnings per Diluted Share $ 0.60 $ 0.04

Special Items (0.08) (0.40)Discontinued Operations (0.04) 0.92

DUK Ongoing Earnings per Diluted Share $ 0.48 $ 0.56


U.S. Franchised Electric & Gas

• Segment EBIT increased by $72 million over 3Q05

• The addition of Cinergy’s regulated utilities in the Midwest contributed $181 million, net of $17 million in rate reductions associated with the merger

• Duke Energy Carolinas also recognized a charge of about $39 million for rate reductions associated with the merger

• Results in the Carolinas are down $70 million from 3Q05, the second highest earnings quarter in Duke history

• Negative impacts in the Carolinas included lower bulk power marketing of $40 million, higher O&M costs of $20 million and milder weather of $17 million

• Offsetting lower results, the segment recorded approximately $62 million in Clean Air amortization, down $23 million from 3Q05

Reported & Ongoing Segment EBIT ($ millions)

3Q06 3Q05Reported Segment EBIT $ 678 $ 606

Special Items - -

Ongoing Segment EBIT $ 678 $ 606


Natural Gas Transmission

• Ongoing segment results were $41 million lower primarily due to:

Higher O&M costs of $35 millionImpact of revenue sharing program at Union GasLower equity earnings from Gulfstream related to project financing



Special Items (15) -


• Reported segment EBIT includes a $15 million gain related to theissuance of additional units in the Duke Energy Income Fund

• Positive impacts for the quarter include strong processing margins at the Empress facility, contributing $27 million over 3Q05

On an annual basis, a $1 change in the frac spreads affects Empress’ EBIT by $25 million

• Positive Canadian currency impacts on EBIT of $6 million were partially offset by Canadian-based interest expense


Field Services

• Represents Duke Energy’s 50% ownership in Duke Energy Field Services

• 3Q05 reported EBIT includes the gain on the transfer of 19.7% ownership to ConocoPhillips

Reported & Ongoing Equity Earnings/EBIT ($ millions)

3Q06 3Q05Reported Equity Earnings/EBIT $ 158 $ 701

Special Items - (614)

Ongoing Equity Earnings/EBIT $ 158 $ 87

• Strong commodity prices and improved overall marketing results had a positive effect for the quarter

• Reflecting strong earnings and cash flow, DEFS paid dividends of $75 million and another $77 million in tax distributions to Duke Energy this quarter


Commercial Power

•Commercial Power segment includes non-regulated generation assets in the Midwest and Duke Energy Generation Services

•Segment earnings improved by $68 million over 3Q05

Cinergy’s non-regulated


3Q06 3Q05Reported Segment EBIT (Loss) $ 57 $ (11)

Special Items - -

Ongoing Segment EBIT (Loss) $ 57 $ (11)

generation fleet added $69 million before the impacts of purchase accounting Midwest gas-fired plants contributed $5 million compared to a $10 million loss for 3Q05 with the certification of Hanging Rock and Washington plants into PJM

• Offsetting these results were net purchase accounting charges of $17 million related to the merger

• Oak Mountain synfuel plant was restarted on Oct. 12


International Energy

• Ongoing earnings for International decreased by $15 million compared to 3Q05

• Decrease is primarily due to higher regulatory fees and lower sales prices in Brazil, increased purchased power costs in Brazil and Peru, and lower results at National Methanol

• 3Q05 ongoing results exclude a $20 million impairment related to our equity investment in the Campeche facility in Mexico

• Fundamentals in Brazil are strong as reflected in the auction prices for 2008 – 2010



Special Items - 20



Crescent Resources

•Decrease in ongoing results for segment EBIT of $66 million

3Q05 results reflect closing of several large transactions

•Special Items this quarter reflect the one-time, pre-tax gain of $246 million related to the creation of a joint-venture partnership with



Special Items (246) -


Morgan Stanley Real Estate Fund on Sept. 7, 2006•The transaction provided Duke Energy with approximately $1.4 billion after-tax proceeds

•Moody’s assigned Crescent a stand-alone rating of Ba2, and S&P recently assigned a BB rating

•Moving forward, interest expense at Crescent will be capitalized as part of individual project costs


Other

•Ongoing losses in third quarter 2006 improved by $96 million

•The value of DEFS de-designated hedges improved by approximately $124 million over 3Q05

The remaining hedges will roll-off by year end We have not hedged any of our production in 2007

• Governance costs higher primarily due to Cinergy merger• Insurance costs were flat year over year

A charge of $58 million was recorded in 3Q06 related to our interest in a mutual insurance company which we are exiting

• Special Items for 3Q06 include:$19 million for Cinergy merger costs-to-achieve$10 million for gas spinoff costs-to-achieve

Reported & Ongoing EBIT ($ millions)

3Q06 3Q05Other Reported EBIT (Loss) $ (111) $ (165)

Special Items 29 (13)

Other Ongoing EBIT (Loss) $ (82) $ (178)


Other Items

• At the end of the quarter, net cash balance was approximately $2.0 billion • Majority of cash to be retained by the power company• Board has approved re-initiation of share buyback program of up to $500

million beginning in JanuaryA plan will be put in place such that shares of Duke Energy post-spin will be purchased if the stock price hits the pricing point in the plan

• Interest expense totaled $337 million for the quarter compared to $228 million in 3Q05

Increase reflects Cinergy’s debt brought onto the balance sheet• Effective tax rate was 37.1% compared to 34.5% for the same period last

year – resulting from additional state tax reserves for the quarter• SEC filings will now reflect legal entity name changes as of Oct. 1

Duke Power Company Duke Energy Carolinas, LLC Cincinnati Gas & Electric (CG&E) Duke Energy Ohio, Inc. PSI Energy Duke Energy Indiana, Inc.

• Cinergy has been deregistered – financial statements posted on web site


Commitment to Investors

Focused on what matters most to you:

Growing earnings and dividends over time

Achieving the full value of our portfolio

Reinvesting in the business

Developing a strong leadership team with a deep bench

Delivering clear and transparent communications


• Realigning the portfolio will provide the platform for long-term growth

• On track for revised employee incentive EPS target

• Committed to growth rates for Duke Energy and Spectra Energy









• Re-deploy cash from sales to infrastucture businesses

Closed sale of CMT Secured partner for Crescent

• With sale of businesses, do not expect to meet 2007 aspirationalongoing EPS target of $2.00









• Continued investment in scrubbers on coal plants

• Filed for cost recovery on proposed nuclear plant

• Filed permit for IGCC in Indiana• Hearings held on baseload coal

plant expansion• New natural gas projects









Active Natural Gas Projects

Canaport

ExcelerateNE Gateway

Accident

Egan Expansion

Moss Bluff Expansion

St. Clair Power Dawn DeliveryEnhancement

Dawn-TrafalgarPhase 1 – 3 Cape Cod

Pine River

Ramapo

Islander East

BP Logan

Dawn Area Storage

Lebanon Connector

Time II

Saltville

Jewell Ridge

Piedmont

Gulfstream 3 & 4

Copiah Storage

SE Supply Header

Mid-Continent Crossing


• New organization announcedCentralized functionsStrong management team









New Duke Energy Organization

Jim RogersPresident & CEO

Bill McCollumRegulated Gen

Brew BarronNuclear

Jim TurnerFranchised

Electric & Gas

David HauserFinance

Keith TrentStrategy & Policy

Tom O’ConnorCommercialBusinesses

Chris RolfeAdministration

Marc ManlyLegal

Top Tier averages 20 years of energy experience

Ruth ShawExecutive Advisor


• Sharing updated Merger Scorecard, as promised









Measuring Success

Merger Scorecard

1.Financial Results

Total workforce reductions

Costs to achieve

Non-fuel O&M

2.Operational Results

Safety

Environmental

Reliability

Plant efficiency

3.Customer & Employee Engagement

Customer satisfaction

Employee engagement

4.Integration Milestones

Integration projects complete

Merger Scorecard

1.Financial Results

Total workforce reductions

Costs to achieve

Non-fuel O&M

2.Operational Results

Safety

Environmental

Reliability

Plant efficiency

3.Customer & Employee Engagement

Customer satisfaction

Employee engagement

4.Integration Milestones

Integration projects complete


Track Record of Achievements

Closed merger with Cinergy

Completed the sale of the West and Northeast unregulated plants and trading book

Completed the joint venture for Crescent Resources

Completed the sale of Commercial Marketing and Trading

Repurchased $500 million of stock in $1 billion buy-back program

Announced numerous expansions on the gas transmission system

Announced plans for plant expansions (baseload coal, nuclear and IGCC)

Received FERC approval on acquisition of Rockingham plant

Completed the spinoff gas businesses


Creating Spectra Energy

• Continue to target Jan. 1, 2007 as effective date• Spectra Energy name announced Oct. 30• NYSE ticker symbol expected to be “SE”• Submitted request for Private Letter ruling from

the IRS• Secured Virginia state approval• Filed first amendment to the Form 10, responding

to SEC’s comments• Recommendation to board for every share of DUK

held, shareholder to receive one-half share of Spectra Energy

Dividend recommendation of $0.84 for Duke Energy and $0.88 for Spectra Energy

• Moody’s placed under review for possible action• Road shows expected to occur in December

Duke Energy Corporation Non-GAAP Reconciliation Schedules Third Quarter 2006 Earnings Review 2006 Employee Earnings-per-share (“EPS”) Incentive Target Measure The slides and prepared remarks for Duke Energy’s November 3, 2006 earnings review include references to the company's original and expected-to-be-revised 2006 Employee EPS incentive target of $1.90 and $1.86, respectively. The EPS measure used for employee incentive bonuses is based on ongoing diluted EPS, adjusted for the actual vs. original anticipated impact of purchase accounting resulting from Duke Energy’s merger with Cinergy Corp. Ongoing diluted EPS is a non-GAAP financial measure as it represents diluted EPS from continuing operations plus the per-share effect of any amounts reported as discontinued operations from the company’s Crescent Resources real estate unit, adjusted for the per-share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing diluted EPS is reported diluted EPS from continuing operations, which includes the impact of special items. Due to the forward-looking nature of this non-GAAP financial measure, information to reconcile it to the most directly comparable GAAP financial measure is not available at this time, as management is unable to project any special items for the remainder of 2006. Ongoing Diluted EPS The slides and prepared remarks for Duke Energy’s November 3, 2006 earnings review include references to the anticipated ongoing diluted EPS for 2006 of $1.78 and the previously announced 2007 aspirational ongoing diluted EPS target of $2.00. Ongoing diluted EPS is a non-GAAP financial measure as it represents diluted EPS from continuing operations plus the per-share effect of any amounts reported as discontinued operations from the company’s Crescent Resources real estate unit, adjusted for the per-share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing diluted EPS is reported diluted EPS from continuing operations which includes the impact of special items. Due to the forward-looking nature of ongoing diluted EPS for future periods, information to reconcile such non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time as management is unable to forecast any special items for future periods.

Anticipated Ongoing Diluted EPS Growth Percentages The slides and prepared remarks for Duke Energy’s November 3, 2006 earnings review include a discussion of the anticipated growth in ongoing diluted EPS for at least the next three years for post-spinoff Duke Energy and for Spectra Energy, the gas company Duke Energy anticipates spinning off in January 2007. These growth percentages are based on anticipated ongoing diluted EPS for future periods and are non-GAAP financial measures, as they represent diluted EPS from continuing operations plus, for Duke Energy, the per-share effect of any amounts reported as discontinued operations from the company’s Crescent Resources real estate unit, adjusted for the per share impact of special items. Special items represent certain charges and credits which management believes will not be recurring on a regular basis. The most directly comparable GAAP measure for ongoing diluted EPS is reported diluted EPS from continuing operations, which includes the impact of special items. Due to the forward-looking nature of ongoing diluted EPS for future periods, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as management is unable to forecast any special items for future periods.

DUKE ENERGY CORPORATIONAfter-Tax Proceeds from Creation of Crescent Resources Joint Venture and Sale of CMT

(Dollars in millions)

Proceeds on Crescent Joint Venture

Net proceeds from issuance of debt by Crescent Resources 1,187$

Proceeds received from sale of equity interest 415

Estimated income tax payments resulting from transaction (136)

Reduction in reported cash due to deconsolidation of interest in Crescent Resources (32)

Net after-tax proceeds 1,434$ (Rounded $1,400)

Proceeds on Sale of CMT

Net proceeds received (including working capital and base price) 700$

Estimated income tax payments resulting from transaction (142)

Net after-tax proceeds 558$

Total combined after-tax proceeds 1,992$ (Rounded $2,000)

DUKE ENERGY CORPORATIONNet Cash Balance Reconciliation

(Dollars in millions)

9/30/2006

Cash and Cash Equivalents 820$

Short-Term Investments 2,097

Short-Term Commercial Paper Outstanding (932) (1)

Net Cash Balance 1,985$ (Rounded $2,000)

(1) - Excludes approximately $300 million of commercial paper which is classified as long-term debt at 9/30/2006.

DUKE ENERGY CORPORATIONONGOING TO REPORTED EARNINGS RECONCILIATION

September 2005 Quarter-to-date(Dollars in millions, except per-share amounts)

Ongoing Earnings

Gain on transfer of

19.7% interest in DEFS

Impairment of equity

investments

Field Services hedge de-

designation, net

MTM change on de-designated Field Services

hedges for 2005, net

Initial and Subsequent gain

on de-designating

Southeast DENA hedges

Discontinued Operations

Total Adjustments

Reported Earnings

SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS

U.S. Franchised Electric & Gas 606$ -$ -$ -$ -$ -$ -$ -$ 606$

Natural Gas Transmission 329 - - - - - - - 329

Field Services 87 576 A - 38 B - - - 614 701

Commercial Power (11) - - - - - - - (11)

International Energy 83 - (20) C - - - - (20) 63

Crescent 120 - - - - - - - 120

Total reportable segment EBIT 1,214 576 (20) 38 - - - 594 1,808

Other (178) - - - (17) D 30 E - 13 (165)

Total reportable segment EBIT and other EBIT 1,036$ 576$ (20)$ 38$ (17)$ 30$ -$ 607$ 1,643$

EARNINGS FOR COMMON

Total reportable segment EBIT and other EBIT 1,036$ 576$ (20)$ 38$ (17)$ 30$ -$ 607$ 1,643$ Interest expense (228) - - - - - - - (228) Interest income and other (7) - - - - - - - (7) Income taxes from continuing operations (260) (213) 6 (15) 6 (11) - (227) (487) Discontinued operations, net of taxes 1 - - - - - (884) F,G (884) (883)

542$ 363$ (14)$ 23$ (11)$ 19$ (884)$ (504)$ 38$

EARNINGS PER SHARE, BASIC $ 0.59 $ 0.39 $ (0.02) $ 0.02 $ (0.01) $ 0.02 $ (0.95) $ (0.55) $ 0.04

EARNINGS PER SHARE, DILUTED $ 0.56 $ 0.38 $ (0.01) $ 0.02 $ (0.01) $ 0.02 $ (0.92) G $ (0.52) $ 0.04

Note 1 - Amounts for special items are presented net of any related minority interest.

A - Recorded in Gains on Sales of Other Assets and Other, net on the Consolidated Statements of Operations.

B - Third quarter settlements of the 2005 portion of the Field Services de-designated hedges as of 2/22/05, recorded in Impairment and other charges (Operating Expenses) on the Consolidated Statements of Operations.

C - Equity investment impairment, recorded in (Losses) gains on sales and impairments of equity investments (Other Income and Expenses) on the Consolidated Statements of Operations.

D - Recorded in Other income and expenses, net (Other Income and Expenses) on the Consolidated Statements of Operations.

E - Recorded in Non-regulated electric, natural gas, natural gas liquids and other (Operating Revenues) on the Consolidated Statements of Operations.

F - Excludes Crescent discontinued operations.

G - Primarily the non-cash, after-tax charge related to the planned exit of substantially all of DENA's physical and commercial assets outside the midwestern United States and the reclassification of DENA 2005 operations. Includes assetimpairments and mark-to-market hedge losses of approximately $1,275 million pre-tax ($794 million after-tax) or approximately $(0.83) per diluted share. Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations.

Weighted Average Shares (reported and ongoing) - in millionsBasic 926

Diluted 964

Total Earnings for Common

Special Items (Note 1)


September 2005 Year-to-date(Dollars in millions, except per-share amounts)

Ongoing Earnings

Mutual insurance

liability adjustment

Gain on transfer of

19.7% interest in

DEFS

Gains (Losses) on sales and

impairments of equity

investments

Field Services hedge de-

designation, net

MTM change on de-designated Field Services

hedges for 2005, net

Initial and Subsequent gain on de-designating

Southeast DENA hedges


Total Adjustments

Reported Earnings


U.S. Franchised Electric & Gas 1,216$ -$ -$ -$ -$ -$ -$ -$ -$ 1,216$

Natural Gas Transmission 1,044 - - - - - - - - 1,044

Field Services 378 - 576 C 888 A (58) B - - - 1,406 1,784

Commercial Power (44) - - - - - - - - (44)

International Energy 237 - - (20) F - - - - (20) 217

Crescent 210 - - - - - - - - 210

Total reportable segment EBIT 3,041 - 576 868 (58) - - - 1,386 4,427

Other (390) (28) D - - - (64) E 30 G - (62) (452)

Total reportable segment EBIT and other EBIT 2,651$ (28)$ 576$ 868$ (58)$ (64)$ 30$ -$ 1,324$ 3,975$

EARNINGS FOR COMMON

Total reportable segment EBIT and other EBIT 2,651$ (28)$ 576$ 868$ (58)$ (64)$ 30$ -$ 1,324$ 3,975$ Interest expense (813) - - - - - - - - (813) Interest income and other 38 - - - - - - - - 38 Income taxes from continuing operations (599) 10 (213) (323) 20 21 (11) - (496) (1,095) Discontinued operations, net of taxes 1 - - - - - - (895) H,I (895) (894)

1,278$ (18)$ 363$ 545$ (38)$ (43)$ 19$ (895)$ (67)$ 1,211$

EARNINGS PER SHARE, BASIC $ 1.37 $ (0.02) $ 0.39 $ 0.58 $ (0.04) $ (0.05) $ 0.02 $ (0.96) $ (0.08) $ 1.29

EARNINGS PER SHARE, DILUTED $ 1.32 $ (0.02) $ 0.37 $ 0.56 $ (0.04) $ (0.04) $ 0.02 $ (0.92) $ (0.07) $ 1.25


A - Gain on sale of investment in units of TEPPCO LP, $97 million, and TEPPCO GP, $791 million net of $343 million of minority interest. Recorded in (Losses) gains on sales and impairments of equity investments (Other Income and Expenses) on the Consolidated Statements of Operations.

B - De-designation of hedges due to proposed sale of 19.7% interest in DEFS to ConocoPhillips. $125 million loss reduced by $67 million of hedge settlements recorded in Impairment and other charges (Operating Expenses) on the Consolidated Statements of Operations.

C - Recorded in Gains on Sales of Other Assets and Other, net on the Consolidated Statements of Operations.

D - Recorded in Operation, maintenance and other (Operating Expenses) on the Consolidated Statements of Operations.

E - $47 million loss recorded in Non-regulated electric, natural gas, natural gas liquids and other (Operating Revenues), and $17 million loss recorded in Other income and expenses, net (Other Income and Expenses) on the Consolidated Statements of Operations.

F - Equity investment impairment, recorded in (Losses) gains on sales and impairments of equity investments (Other Income and Expenses) on the Consolidated Statements of Operations.

G - Recorded in Non-regulated electric, natural gas, natural gas liquids and other (Operating Revenues) on the Consolidated Statements of Operations.

H - Excludes Crescent discontinued operations.

I - Primarily the non-cash, after-tax charge related to the planned exit of substantially all of DENA's physical and commercial assets outside the midwestern United States and the reclassification of DENA 2005 operations. Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations.

Weighted Average Shares (reported and ongoing) - in millionsBasic 936

Diluted 973



Ongoing Earnings

Gain on Sale of

Interest in Crescent

Gain on Sales of Assets

Costs to Achieve, Cinergy Merger

Costs to Achieve,

Anticipated Gas Spin-off


Total Adjustments

Reported Earnings


U.S. Franchised Electric & Gas 678$ -$ -$ -$ -$ -$ -$ 678$

Natural Gas Transmission 288 - 15 B - - - 15 303

Field Services 158 - - - - - - 158

Commercial Power 57 - - - - - - 57

International Energy 68 - - - - - - 68

Crescent 54 246 A - - - - 246 300

Total reportable segment EBIT 1,303 246 15 - - - 261 1,564

Other (82) - - (19) C (10) C - (29) (111)

Total reportable segment EBIT and other EBIT 1,221$ 246$ 15$ (19)$ (10)$ -$ 232$ 1,453$

EARNINGS FOR COMMON

Total reportable segment EBIT and other EBIT 1,221$ 246$ 15$ (19)$ (10)$ -$ 232$ 1,453$ Interest expense (337) - - - - - - (337) Interest income and other 23 - - - - - - 23 Income taxes from continuing operations (301) (124) (5) 7 1 - (121) (422) Discontinued operations, net of taxes - - - - - 46 D,E 46 46

606$ 122$ 10$ (12)$ (9)$ 46$ 157$ 763$

EARNINGS PER SHARE, BASIC $ 0.48 $ 0.10 $ 0.01 $ (0.01) $ (0.01) $ 0.04 $ 0.13 $ 0.61

EARNINGS PER SHARE, DILUTED $ 0.48 $ 0.09 $ 0.01 $ (0.01) $ (0.01) $ 0.04 $ 0.12 $ 0.60



B - Recorded in Gain on sale of subsidiary stock (Other Income and Expenses) on the Consolidated Statements of Operations.

C - Recorded in Operation, maintenance and other (Operating Expenses) on the Consolidated Statements of Operations.

D - Excludes Crescent discontinued operations.

E - Primarily DENA discontinued operations. Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations.

Weighted Average Shares (reported and ongoing) - in millionsBasic 1,254

Diluted 1,263




September 2006 Quarter-to-date(Dollars in millions, except per-share amounts)

Ongoing Earnings

Gain on Sale of

Interest in Crescent

Net Gain on Settlement of

Contract

Gain on Sales of Assets

Impairment of Campeche Investment

Costs to Achieve, Cinergy Merger

Costs to Achieve,

Anticipated Gas Spin-off


Total Adjustments

Reported Earnings


U.S. Franchised Electric & Gas 1,388$ -$ -$ -$ -$ -$ -$ -$ -$ 1,388$

Natural Gas Transmission 1,063 - 24 B 15 C - - - - 39 1,102

Field Services 436 - - 14 D - - - - 14 450

Commercial Power 50 - - - - - - - - 50

International Energy 236 - - - (55) E - - - (55) 181

Crescent 269 246 A - - - - - - 246 515

Total reportable segment EBIT 3,442 246 24 29 (55) - - - 244 3,686

Other (229) - - - - (97) F (17) F - (114) (343)

Total reportable segment EBIT and other EBIT 3,213$ 246$ 24$ 29$ (55)$ (97)$ (17)$ -$ 130$ 3,343$

EARNINGS FOR COMMON

Total reportable segment EBIT and other EBIT 3,213$ 246$ 24$ 29$ (55)$ (97)$ (17)$ -$ 130$ 3,343$ Interest expense (925) - - - - - - - - (925) Interest income and other 75 - - - - - - - - 75 Income taxes from continuing operations (748) (124) (8) (10) - 34 1 - (107) (855) Discontinued operations, net of taxes - - - - - - - (162) G,H (162) (162)

1,615$ 122$ 16$ 19$ (55)$ (63)$ (16)$ (162)$ (139)$ 1,476$

EARNINGS PER SHARE, BASIC $ 1.42 $ 0.10 $ 0.01 $ 0.02 $ (0.05) $ (0.06) $ (0.01) $ (0.14) $ (0.13) $ 1.29

EARNINGS PER SHARE, DILUTED $ 1.39 $ 0.10 $ 0.01 $ 0.02 $ (0.05) $ (0.05) $ (0.01) $ (0.14) $ (0.12) $ 1.27



B - $23 million recorded in Gains on Sales of Other Assets and Other, net and $1 million recorded in Other income and expenses, net (Other Income and Expenses) on the Consolidated Statements of Operations.

C - Recorded in Gain on sale of subsidiary stock (Other Income and Expenses) on the Consolidated Statements of Operations.

D - Recorded in Equity in earnings of unconsolidated affiliates (Other Income and Expenses) on the Consolidated Statements of Operations. Transaction related to sale of Brookland, Masterscreek and Jasper assets.

E - $38 million recorded in Operation, maintenance and other (Operating Expenses) and $17 million recorded in (Losses) gains on sales and impairments of equity investments (Other Income and Expenses) on the Consolidated Statements of Operations.

F - Recorded in Operation, maintenance and other (Operating Expenses) on the Consolidated Statements of Operations.

G - Excludes Crescent discontinued operations.

H - Primarily DENA discontinued operations. Recorded in Income (Loss) From Discontinued Operations, net of tax on the Consolidated Statements of Operations.

Weighted Average Shares (reported and ongoing) - in millionsBasic 1,141

Diluted 1,162


September 2006 Year-to-date(Dollars in millions, except per-share amounts)



11/03/06_Slides

Economy & Finance

millionreported segment

highest earnings quarter

union gas ongoing segment

duk ongoing earnings

empress ebit

earnings summary3q063q05duk

lower results

merger results