Duke-Energy 04 Stat_Supplement

Contents

CONTENTS

2 CONSOLIDATED DATA

2 Financial Highlights

3 Earnings Before Interest and Taxes fromContinuing Operations by Business Segment

4 Consolidating Statement of Operations

5 Consolidated Statements of Operations

6 Consolidating Balance Sheet

8 Consolidated Balance Sheets

10 Consolidated Statements of Cash Flows

11 Capital and Investment Expenditures byBusiness Segment

12 Long-Term Debt

15 Preferred and Preference Stock withoutSinking Fund Requirements

16 Capitalization

17 FRANCHISED ELECTRIC

18 Segment Earnings Before Interest and Taxes

19 Segment Balance Sheets

21 Operating Statistics

23 NATURAL GAS TRANSMISSION

24 Segment Earnings Before Interest and Taxes



28 FIELD SERVICES

29 Segment Earnings Before Interest and Taxesfrom Continuing Operations



33 DUKE ENERGY NORTH AMERICA




38 INTERNATIONAL ENERGY




43 CRESCENT RESOURCES




Years ended December 31

(In millions, except per share amounts) 2004 2003 2002 2001 2000

COMMON STOCK DATAa

Earnings (loss) per share (from continuing operations)Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.31 $ (1.13) $ 1.53 $ 2.59 $ 2.42Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.27 $ (1.13) $ 1.53 $ 2.57 $ 2.41

Earnings (loss) per share (from discontinued operations)Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.28 $ (0.17) $ (0.31) $ (0.01) $ (0.03)Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.27 $ (0.17) $ (0.31) $ (0.01) $ (0.03)

Earnings (loss) per share (before cumulative effect of change in accounting principle)

Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.59 $ (1.30) $ 1.22 $ 2.58 $ 2.39Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.54 $ (1.30) $ 1.22 $ 2.56 $ 2.38

Earnings (loss) per shareBasic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.59 $ (1.48) $ 1.22 $ 2.45 $ 2.39Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.54 $ (1.48) $ 1.22 $ 2.44 $ 2.38

Shares outstanding at year end . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 957 911 895 777 739Weighted average shares outstanding . . . . . . . . . . . . . . . . . . . . . . . . . 931 903 836 767 736

Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,065 $1,051 $ 938 $ 871 $ 828Dividends paid (per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.10 $ 1.10 $ 1.10 $ 1.10 $ 1.10Book value (per share) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $17.18 $15.09 $16.70 $16.33 $ 13.60

Historical Reference b

Market price (per share)High . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26.16 $21.57 $40.00 $47.74 $ 44.97Low . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $18.85 $12.21 $16.42 $32.22 $ 23.19Close . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25.33 $20.45 $19.54 $39.26 $ 42.63

a Amounts prior to 2001 were restated to reflect the two-for-one common stock split effective January 26, 2001.b As of 2001, data reflects the intra-day high and low stock price.

Duke Energy Corporation

FINANCIAL HIGHLIGHTS

2 Consolidated Data

ConsolidatedEBIT Earnings (Loss)

Interest Expense, from ContinuingFranchised Natural Gas Field Duke Energy International Minority Interest Operations before

(In millions) Electric Transmission Services North America Energy Crescent Expense & Other Income Taxes

2004 QUARTERS ENDEDMarch 31 . . . . . . . . . . . . . . . $ 424 $ 398 $ 91 $ (558)a $ 29 $ 60 $ (347) $ 97June 30 . . . . . . . . . . . . . . . . 338 311 95 (37) 68 87 (321) 541Sept 30 . . . . . . . . . . . . . . . . 453 265 66 (17) 64 43 (345) 529Dec 31 . . . . . . . . . . . . . . . . 252 336 128 77 61 50 (299) 605

Total . . . . . . . . . . . . . . . . . . $1,467 $1,310 $380 $ (535) $222 $240 $(1,312) $ 1,772

2003 QUARTERS ENDEDMarch 31 . . . . . . . . . . . . . . . $ 454 $ 423 $ 29 $ 23 $ 40 $ 1 $ (383) $ 587June 30 . . . . . . . . . . . . . . . . 316 306 55 211 91 21 (403) 597Sept 30 . . . . . . . . . . . . . . . . 436 280 52 (411)b 44 40 (458) (17)Dec 31 . . . . . . . . . . . . . . . . . 197 308 51 (3,164)c 40 72 (381) (2,877)

Total . . . . . . . . . . . . . . . . . . $1,403 $1,317 $187 $(3,341) $215 $134 $(1,625) $(1,710)

2002 QUARTERS ENDEDMarch 31 . . . . . . . . . . . . . . . $ 384 $ 266 $ 36 $ 54 $ 49 $ 2 $ (253) $ 538June 30 . . . . . . . . . . . . . . . . 388 313 43 196 61 23 (309) 715Sept 30 . . . . . . . . . . . . . . . . 575 288 21 (107) (31) 16 (405) 357Dec 31 . . . . . . . . . . . . . . . . . 248 294 48 26 23 117 (460) 296

Total . . . . . . . . . . . . . . . . . . $1,595 $1,161 $148 $ 169 $102 $158 $(1,427) $ 1,906

2001 QUARTERS ENDEDMarch 31 . . . . . . . . . . . . . . . $ 459 $ 175 $124 $ 384 $ 56 $ 3 $ (328) $ 873June 30 . . . . . . . . . . . . . . . . 358 141 84 272 61 31 (280) 667Sept 30 . . . . . . . . . . . . . . . . 607 142 70 654 52 50 (311) 1,264Dec 31 . . . . . . . . . . . . . . . . . 202 149 55 177 67 83 (390) 343

Total . . . . . . . . . . . . . . . . . . $1,626 $ 607 $333 $ 1,487 $236 $167 $(1,309) $ 3,147

a Includes an approximate $360 million charge associated with the sale of DENA’s Southeast Plantsb Includes a $254 million goodwill writeoffc Includes $2,903 million of impairments (related to DENA’s plants and redesignation of power contracts to mark-to-market)

3


EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS BY BUSINESS SEGMENT

Consolidated Data

Natural Year EndedFranchised Gas Field Duke Energy International Eliminations/ December 31,

(In millions) Electric Transmission Services North America Energy Crescent Other Adjustments 2004

OPERATING REVENUES a

Non-regulated electric, natural gas, natural gas liquids and other . . . . . . . . . $ — $ — $10,104 $2,294 $619 $437 $1,144 $(323) $14,275Regulated electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,069 — — 67 — — — (25) 5,111Regulated natural gas . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,290 — — — — — (173) 3,117

Total operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,069 3,290 10,104 2,361 619 437 1,144 (521) 22,503

OPERATING EXPENSESNatural gas and petroleum products purchased . . . . . . . . . . . . . . . . . . . . . — 758 8,614 1,398 4 — 946 (385) 11,335Operation, maintenance and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,264 701 550 419 164 343 264 (137) 3,568Fuel used in electric generation and purchased power . . . . . . . . . . . . . . . . 1,206 — — 665 228 — — (1) 2,098Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 863 418 298 173 58 2 39 — 1,851Property and other taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 156 47 34 8 6 8 — 539Impairment and other related charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 22 1 — 42 — — 65

Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,613 2,033 9,531 2,690 462 393 1,257 (523) 19,456

GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 192 — — 192

GAINS (LOSSES) ON SALES OF OTHER ASSETS, NET . . . . . . . . . . . . . . . 3 17 2 (248) (3 ) — 4 — (225)

OPERATING INCOME (LOSS) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,459 1,274 575 (577) 154 236 (109 ) 2 3,014

OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . — 25 60 5 51 3 17 — 161Gains (Losses) on sales and impairments of equity investments . . . . . . . . . . — 16 (23) — 2 — 1 — (4 )Other income and expenses, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 17 — 7 25 — 14 74 145

Total other income and expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 58 37 12 78 3 32 74 302

MINORITY INTEREST EXPENSE (BENEFIT) b . . . . . . . . . . . . . . . . . . . . . . — 22 232 (30) 10 (1) —

EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS (EBIT) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,467 $1,310 $ 380 $ (535) $222 $240 $ (77)

INTEREST EXPENSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,349MINORITY INTEREST EXPENSE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195

EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES . . 1,772INCOME TAX EXPENSE FROM CONTINUING OPERATIONS . . . . . . . . . . . 540

INCOME FROM CONTINUING OPERATIONS . . . . . . . . . . . . . . . . . . . . . . 1,232DISCONTINUED OPERATIONS

Net operating loss, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10)Net gain on dispositions, net of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268

INCOME FROM DISCONTINUED OPERATIONS . . . . . . . . . . . . . . . . . . . . 258

NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,490DIVIDENDS AND PREMIUMS ON REDEMPTION OF

PREFERRED AND PREFERENCE STOCK . . . . . . . . . . . . . . . . . . . . . . . . 9

EARNINGS AVAILABLE FOR COMMON STOCKHOLDERS . . . . . . . . . . . . . $ 1,481

a Presentation does not reflect certain immaterial reclassifications that were made in the Form 10-Q for the quarter ended March 31, 2005. b Includes minority interest expense (benefit) related to EBIT and excludes minority interest expense (benefit) related to interest and taxes.


CONSOLIDATING STATEMENT OF OPERATIONS

4 Consolidated Data


(In millions) 2004 2003 2002 2001

OPERATING REVENUES aNon-regulated electric, natural gas, natural gas liquids and other .............................................................. $14,275 $14,178 $8,780 $11,879Regulated electric ................................................................................................................................ 5,111 4,960 4,880 5,088Regulated natural gas .......................................................................................................................... 3,117 2,942 2,200 922

Total operating revenues........................................................................................................................ 22,503 22,080 15,860 17,889

OPERATING EXPENSESNatural gas and petroleum products purchased ...................................................................................... 11,335 11,419 5,360 6,865Operation, maintenance and other.......................................................................................................... 3,568 3,796 3,304 3,706Fuel used in electric generation and purchased power .............................................................................. 2,098 2,075 2,191 2,022Depreciation and amortization................................................................................................................ 1,851 1,792 1,506 1,252Property and other taxes........................................................................................................................ 539 526 533 430Impairment and other related charges .................................................................................................... 65 2,956 364 —Impairments of goodwill ........................................................................................................................ — 254 — 36

Total operating expenses........................................................................................................................ 19,456 22,818 13,258 14,311

GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE ...................... 192 84 106 106(LOSSES) GAINS ON SALES OF OTHER ASSETS, NET............................................................................ (225 ) (199) 32 238

OPERATING INCOME (LOSS)................................................................................................................ 3,014 (853) 2,740 3,922

OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates .......................................................................................... 161 123 218 164(Losses) Gains on sales and impairments of equity investments ................................................................ (4 ) 279 32 —Other income and expenses, net ............................................................................................................ 145 182 129 147

Total other income and expenses............................................................................................................ 302 584 379 311

INTEREST EXPENSE............................................................................................................................ 1,349 1,380 1,097 760MINORITY INTEREST EXPENSE b ........................................................................................................ 195 61 116 326

EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES ...................................... 1,772 (1,710) 1,906 3,147INCOME TAX EXPENSE (BENEFIT) FROM CONTINUING OPERATIONS.................................................... 540 (707) 611 1,149

INCOME (LOSS) FROM CONTINUING OPERATIONS .............................................................................. 1,232 (1,003) 1,295 1,998DISCONTINUED OPERATIONS

Net operating loss, net of tax .............................................................................................................. (10 ) (27) (261) (4)Net gain (loss) on dispositions, net of tax.............................................................................................. 268 (131) — —

INCOME (LOSS) FROM DISCONTINUED OPERATIONS .......................................................................... 258 (158) (261) (4)INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE .................... 1,490 (1,161) 1,034 1,994

CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE, NET OF TAX AND MINORITY INTEREST — (162) — (96)

NET INCOME (LOSS) .......................................................................................................................... 1,490 (1,323) 1,034 1,898

DIVIDENDS AND PREMIUMS ON REDEMPTION OF PREFERRED AND PREFERENCE STOCK .................. 9 15 13 14

EARNINGS (LOSS) AVAILABLE FOR COMMON STOCKHOLDERS ............................................................ $1,481 $(1,338) $1,021 $1,884

a Presentation does not reflect certain immaterial reclassifications that were made in the Form 10-Q for the quarter ended March 31, 2005. b Minority Interest Expense includes dividends of $55 million in 2003, $108 million in 2002 and $108 million in 2001 related to trust preferred securities.

5


CONSOLIDATED STATEMENTS OF OPERATIONS

Consolidated Data

NaturalFranchised Gas Field Duke Energy International Eliminations/ December 31,


CURRENT ASSETSCash and cash equivalents . . . . . . . . . . . . . . . $ 14 $ (44) $ 59 $ 57 $ 301 $ 25 $ 124 $ (3) $ 533Short-term investments . . . . . . . . . . . . . . . . . . 185 — 265 1 — — 868 — 1,319Receivables, net . . . . . . . . . . . . . . . . . . . . . . . 1,015 638 1,300 446 603 95 (265) (595) 3,237Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . 405 324 74 98 34 — 7 — 942Assets held for sale . . . . . . . . . . . . . . . . . . . . . — — — 18 22 — — — 40Unrealized gains on mark-to-market

and hedging transactions . . . . . . . . . . . . . . . . — 7 59 868 — — 30 (2) 962Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 45 17 338 18 — 105 402 938

Total current assets . . . . . . . . . . . . . . . . . . . . . 1,632 970 1,774 1,826 978 120 869 (198) 7,971

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates . . . . . . . — 772 157 152 167 20 24 — 1,292Investments and advances in (from) subsidiaries 12,439 10,983 10,832 4,275 (79) 772 22,621 (61,843) —Nuclear decommissioning trust funds . . . . . . . . 1,374 — — — — — — — 1,374Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 3,398 498 — 245 7 — — 4,148Notes receivable . . . . . . . . . . . . . . . . . . . . . . . — 57 — 52 68 55 — — 232Unrealized gains (losses) on mark-to-market

and hedging transactions . . . . . . . . . . . . . . . . 2 — (9) 1,294 — — 92 — 1,379Assets held for sale . . . . . . . . . . . . . . . . . . . . . — — 37 47 — — — — 84Investments in residential, commercial and

multi-family real estate, net . . . . . . . . . . . . . . — — — — — 1,104 24 — 1,128Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,077 (10) 96 45 198 9 481 — 1,896

Total investments and other assets . . . . . . . . . . 14,892 15,200 11,611 5,865 599 1,967 23,242 (61,843) 11,533

PROPERTY, PLANT AND EQUIPMENTCost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,950 13,309 6,146 3,917 2,189 — 295 — 46,806Less accumulated depreciation and amortization 7,830 2,521 1,890 548 371 — 140 — 13,300

Net property, plant and equipment . . . . . . . . . . 13,120 10,788 4,256 3,369 1,818 — 155 — 33,506

REGULATORY ASSETS AND DEFERRED DEBITSDeferred debt expense . . . . . . . . . . . . . . . . . . . 231 53 — — — — 13 — 297Regulatory asset related to income taxes . . . . . . 376 893 — — — — — — 1,269Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 701 185 — 4 — — 7 (3) 894

Total regulatory assets and deferred debits . . . . 1,308 1,131 — 4 — — 20 (3) 2,460

TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . 30,952 28,089 17,641 11,064 3,395 2,087 24,286 (62,044) 55,470

Intercompany balances . . . . . . . . . . . . . . . . . . (12,753) (10,983) (10,831) (4,327) (66) (772) (22,457) 62,189 —

REPORTABLE SEGMENT ASSETS . . . . . . . . . . $18,199 $17,106 $ 6,810 $6,737 $3,329 $1,315 $ 1,829 $ 145 $55,470


CONSOLIDATING BALANCE SHEET - ASSETS

6 Consolidated Data

NaturalFranchised Gas Field Duke Energy International Eliminations/ December 31,


CURRENT LIABILITIESAccounts payable . . . . . . . . . . . . . . . . . . . . . . $ 444 $ 209 $ 1,175 $ 546 $ 35 $ (1) $ 203 $ (197) $ 2,414Notes payable and commercial paper . . . . . . . . — 213 — — — — 146 (291) 68Taxes accrued (prepaid) . . . . . . . . . . . . . . . . . . 9 231 75 (475) 212 9 (338) 550 273Interest accrued . . . . . . . . . . . . . . . . . . . . . . . 75 87 59 14 1 1 67 (17) 287Liabilities associated with assets held for sale . . — — — 5 25 — — — 30Current maturities of long-term debt and preferred stock 506 157 607 121 61 11 369 — 1,832Unrealized losses on mark-to-market and

hedging transactions . . . . . . . . . . . . . . . . . . . — 3 84 542 — — 191 (1) 819Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347 425 275 332 53 147 154 82 1,815

Total current liabilities . . . . . . . . . . . . . . . . . . . 1,381 1,325 2,275 1,085 387 167 792 126 7,538

LONG-TERM DEBTLong-term debt . . . . . . . . . . . . . . . . . . . . . . . . 5,646 5,396 1,649 75 513 23 3,630 — 16,932Intercompany debt . . . . . . . . . . . . . . . . . . . . . 10 3,178 — 3,452 — — 7,463 (14,103) —

Total long-term debt . . . . . . . . . . . . . . . . . . . . 5,656 8,574 1,649 3,527 513 23 11,093 (14,103) 16,932

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes . . . . . . . . . . . . . . . . . . . 2,223 1,980 933 549 96 — (264) (289) 5,228Investment tax credit . . . . . . . . . . . . . . . . . . . . 154 — — — — — — — 154Unrealized losses (gains) on mark-to-market

and hedging transactions . . . . . . . . . . . . . . . . 22 — (27) 886 — — 90 — 971Liabilities associated with assets held for sale . . — — — 14 — — — — 14Asset retirement obligations . . . . . . . . . . . . . . . 1,864 6 55 1 — — — — 1,926Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,211 639 56 41 56 28 656 (41) 4,646

Total deferred credits and other liabilities . . . . . 7,474 2,625 1,017 1,491 152 28 482 (330) 12,939

MINORITY INTERESTS . . . . . . . . . . . . . . . . . . — 354 850 94 132 59 (3) — 1,486

PREFERRED AND PREFERENCE STOCKWITHOUT SINKING FUND REQUIREMENTS . . — — — — — — 134 — 134

COMMON STOCKHOLDERS’ EQUITYCommon stock . . . . . . . . . . . . . . . . . . . . . . . . 11,252 3 1 120 124 1 11,253 (11,502) 11,252Additional paid-in capital . . . . . . . . . . . . . . . . . — 9,393 9,190 5,614 2,974 545 454 (28,170) —Retained earnings (deficit) . . . . . . . . . . . . . . . . 5,189 4,761 2,589 (1,115) (415) 1,264 (569) (7,165) 4,539Accumulated other comprehensive income (loss) — 1,054 70 248 (472) — 650 (900) 650

Total common stockholders’ equity . . . . . . . . . . 16,441 15,211 11,850 4,867 2,211 1,810 11,788 (47,737) 16,441

TOTAL LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . . . . . . . . 30,952 28,089 17,641 11,064 3,395 2,087 24,286 (62,044) 55,470

Intercompany balances . . . . . . . . . . . . . . . . . . (12,753) (10,983) (10,831) (4,327) (66) (772) (22,457) 62,189 —

REPORTABLE SEGMENT LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . $18,199 $17,106 $ 6,810 $6,737 $3,329 $1,315 $ 1,829 $ 145 $55,470

7


CONSOLIDATING BALANCE SHEET - LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY

Consolidated Data

December 31

(In millions) 2004 2003 2002 2001 2000

CURRENT ASSETSCash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 533 $ 397 $ 382 $ 290 $ 622Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,319 763 492 — —Receivables, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,237 2,953 4,861 5,301 8,648Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 942 941 971 863 659Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 361 — — —Unrealized gains on mark-to-market and hedging transactions . . . . . . . . . . . . . . . 962 1,566 2,144 2,326 11,038Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 938 694 887 667 1,466

Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,971 7,675 9,737 9,447 22,433

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,292 1,398 2,015 1,480 1,387Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,374 925 708 716 717Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,148 3,962 3,747 1,730 1,566Notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 232 260 589 576 462Unrealized gains on mark-to-market and hedging transactions . . . . . . . . . . . . . . . 1,379 1,857 2,480 3,117 4,218Assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 1,444 — — —Investments in residential, commercial and multi-family real estate, net . . . . . . . . 1,128 1,353 1,440 1,253 1,150Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,896 2,137 1,645 1,612 1,447

Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,533 13,336 12,624 10,484 10,947

PROPERTY, PLANT AND EQUIPMENTCost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,806 45,987 47,368 38,345 33,501Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . . 13,300 12,139 11,266 9,936 9,075

Net property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33,506 33,848 36,102 28,409 24,426

REGULATORY ASSETS AND DEFERRED DEBITSDeferred debt expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297 275 263 203 208Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,269 1,152 936 510 506Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 894 939 460 571 756

Total regulatory assets and deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,460 2,366 1,659 1,284 1,470

TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,470 $57,225 $60,122 $49,624 $59,276


CONSOLIDATED BALANCE SHEETS - ASSETS

8 Consolidated Data

9


CONSOLIDATED BALANCE SHEETS - LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY

December 31

(In millions) 2004 2003 2002 2001 2000

CURRENT LIABILITIESAccounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,414 $ 2,317 $ 3,637 $ 4,231 $ 7,733Notes payable and commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68 130 915 1,603 1,826Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 14 156 443 261Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 287 304 310 239 208Liabilities associated with assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . 30 651 — — —Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . 1,832 1,200 1,331 274 470Unrealized losses on mark-to-market and hedging transactions . . . . . . . . . . . . 819 1,283 1,918 1,519 11,070Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,815 1,849 1,770 2,146 1,769

Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,538 7,748 10,037 10,455 23,337

LONG-TERM DEBT, Including debt to affiliates of $876 at 2003 . . . . . . . . . . 16,932 20,622 20,221 12,321 10,717

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,228 4,120 4,834 4,307 3,851Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 154 165 176 189 211Unrealized losses on mark-to-market and hedging transactions . . . . . . . . . . . . 971 1,754 1,548 2,212 3,581Liabilities associated with assets held for sale . . . . . . . . . . . . . . . . . . . . . . . . 14 737 — — —Asset retirement obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926 1,707 — — —Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,646 4,789 4,893 3,564 3,435

Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,939 13,272 11,451 10,272 11,078

GUARANTEED PREFERRED BENEFICIAL INTERESTS IN SUBORDINATEDNOTES OF DUKE ENERGY CORPORATION OR SUBSIDIARIES . . . . . . . . . . — — 1,408 1,407 1,406

MINORITY INTERESTS IN FINANCING SUBSIDIARY . . . . . . . . . . . . . . . . . . — — — 1,025 1,025

MINORITY INTERESTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,486 1,701 1,904 1,221 1,410

PREFERRED AND PREFERENCE STOCKPreferred and preference stock with sinking fund requirements a . . . . . . . . . . . — — 23 25 38Preferred and preference stock without sinking fund requirements . . . . . . . . . . 134 134 134 209 209

Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 134 157 234 247

COMMON STOCKHOLDERS’ EQUITYCommon stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,252 9,519 9,236 6,217 4,797Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,539 4,060 6,417 6,292 5,379Accumulated other comprehensive income (loss) . . . . . . . . . . . . . . . . . . . . . . 650 169 (709) 180 (120)

Total common stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,441 13,748 14,944 12,689 10,056

TOTAL LIABILITIES AND COMMON STOCKHOLDERS’ EQUITY . . . . . . . . . . . $55,470 $57,225 $60,122 $49,624 $59,276

a Reclassified to Long-Term Debt as a result of the adoption of Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity” which was effective July 1, 2003.

Consolidated Data

10

Years ended December 31(In millions) 2004 2003 2002

CASH FLOWS FROM OPERATING ACTIVITIESNet income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,490 $ (1,323 ) $ 1,034Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization (including amortization of nuclear fuel) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,037 1,987 1,692Cumulative effect of change in accounting principle . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 162 —Gains on sales of investments in commercial and multi-family real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (201 ) (103 ) (106 )Gains on sales of equity investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (193 ) (86 ) (81 )Impairment charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 194 3,495 545Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 867 (534 ) 495Purchased capacity levelization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 194 175Contribution to company-sponsored pension plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (278 ) (192 ) (9 )

(Increase) decrease inNet realized and unrealized mark-to-market and hedging transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 216 (15 ) 596Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (188 ) 1,126 12Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (48 ) (30 ) 134Other current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (35 ) (77 ) (335 )

Increase (decrease) inAccounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (5 ) (1,047 ) 798Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188 (168 ) (332 )Other current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 79 (194 )

Capital expenditures for residential real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (322 ) (196 ) (179 )Cost of residential real estate sold . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 268 167 117Other, assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (305 ) (249 ) 205Other, liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 246 206 (368 )NET CASH PROVIDED BY OPERATING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,139 3,396 4,199CASH FLOWS FROM INVESTING ACTIVITIESCapital expenditures, net of refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,055 ) (2,242 ) (4,745 )Investment expenditures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (46 ) (153 ) (584 )Acquisition of Westcoast Energy Inc., net of cash acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (1,707 )Purchases of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (64,594 ) (40,032 ) (12,393 )Proceeds from sales and maturities of available-for-sale securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64,092 39,641 11,859Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,542 1,966 516Proceeds from the sales of commercial and multi-family real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606 314 169Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (309 ) (162 ) (69 )NET CASH USED IN INVESTING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (764 ) (668 ) (6,954 )CASH FLOWS FROM FINANCING ACTIVITIESProceeds from the:

Issuance of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153 3,009 5,114Issuance of common stock and common stock related to employee benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,704 277 1,323

Payments for the redemption of:Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,646 ) (2,849 ) (1,837 )Preferred stock of a subsidiary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (176 ) (38 ) —Preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (88 )Guaranteed preferred beneficial interests in subordinated notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — (250 ) —

Notes payable and commercial paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (67 ) (1,702 ) (1,067 )Distributions to minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,477 ) (2,508 ) (2,260 )Contributions from minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,277 2,432 2,535Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,065 ) (1,051 ) (938 )Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 23 64NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,278 ) (2,657 ) 2,846CHANGES IN CASH AND CASH EQUIVALENTS ASSOCIATED WITH ASSETS HELD FOR SALE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 (55 ) —CHANGE IN CASH AND CASH EQUIVALENTSNet increase in cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136 16 91Cash and cash equivalents at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397 381 290CASH AND CASH EQUIVALENTS AT END OF YEAR . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 533 $ 397 $ 381Supplemental Disclosures

Cash paid for interest, net of amount capitalized . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,323 $ 1,324 $ 1,011Cash (refunded) paid for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (339 ) $ (18 ) $ 344Significant non-cash transactions:

Debt retired in connection with disposition of businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 840 $ 387 $ —Note receivable from sale of southeast plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48 $ — $ —Remarketing of senior notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,625 $ — $ —Acquisition of Westcoast Energy Inc.

Fair value of assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 9,254Liabilities assumed, including debt and minority interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 8,047Issuance of common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 1,702

Capital lease obligations related to property, plant and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ 117


CONSOLIDATED STATEMENTS OF CASH FLOWS

Consolidated Data

11


CAPITAL AND INVESTMENT EXPENDITURES BY BUSINESS SEGMENTa


(In millions) 2004 2003 2002 2001 2000

Franchised Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,020 $ 997 $1,269 $1,115 $ 661

Natural Gas Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 533 766 2,878 748 973

Field Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213 211 309 587 376

Duke Energy North America . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 277 2,013 3,213 1,735

International Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 71 412 442 980

Crescent b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 568 290 275 452 550

Other c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 (21) 136 461 328

Cash acquired in acquisitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — (77) (17) (100)

TOTAL CAPITAL AND INVESTMENT EXPENDITURES . . . . . . . . . . . . . . . $2,423 $2,591 $7,215 $7,001 $5,503

a Amounts include the acquisition of Westcoast Energy Inc. (Westcoast) in 2002.b Amounts include capital expenditures for residential real estate included in operating cash flows of $322 million in 2004, $196 million in 2003,

$179 million in 2002, $230 million in 2001 and $113 million in 2000.c Amounts include deferral of the consolidation of 50% of the profit earned by Duke/Fluor Daniel for the construction of Duke Energy North America’s

merchant generation plants, which is associated with Duke Energy’s share of ownership.

Consolidated Data

Redemption Date of Next NextPrice at Redemption Redemption 2010 and

(In millions) Year Due 12/31/04 (%) Price Change Price (%) 2005 2006 2007 2008 2009 Beyond Total

DUKE ENERGY CORPORATION UNCONSOLIDATEDFirst and Refunding Mortgage Bonds:

3.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 $ — $ — $ — $500 — $ — $5004.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 200 2005.30% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 500 500

a 8.95% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2027 — — — — — 14 14

Subtotal, First and Refunding Mortgage Bonds . . . . . . . . . . . . . . . . . — — — 500 — 714 1,214

Pollution Control Bonds:Series 1999 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 100.000 — — — — — 20 20Series 1990 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 100.000 — — — — — 40 40Series 1993 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 100.000 — — — — — 77 77Series 1999 (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 100.000 — — — — — 35 35

Subtotal, Pollution Control Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 172 172

Notes:Senior Unsecured Note (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . 2005 100.000 250 — — — — — 250Senior Unsecured Note (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . 2005 250 — — — — — 2504.611% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 110 — — — 1104.20% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 300 — — 3005.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 200 — 2007.375% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 300 3005.625% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 400 4006.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 750 750

a 6.90% - 9.210% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011-2016 5 5 5 5 5 20 456.60% Retail Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2022 4/1/2006 100.000 — — — — — 250 2501.75% Convertible Senior Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . 2023 — — — — — 770 7706.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2028 — — — — — 300 3006.45% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 350 350

Subtotal, Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 505 5 115 305 205 3,140 4,275

Accounts Receivable Securitization . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 300 — — — — 300Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 1 1 1 1 2 3 9Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 150 150Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . . — 6 5 5 5 22 43Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . . — (1 ) (1 ) (1 ) (1 ) (7 ) (11)

Subtotal, Duke Energy Corporation Unconsolidated . . . . . . . . . . . . . . 506 311 120 810 211 4,194 6,152

DUKE CAPITAL LLC UNCONSOLIDATEDNotes:

6.25% Note A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 250 — — — — — 2504.302% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 400 — — — — 4004.331% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 350 — — — — 3507.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 500 — 5004.37% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 — — — — 148 — 1486.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 — — — — — 500 5005.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 149 1495.668% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 408 4086.75% Note B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 150 1508.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 500 5006.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 240 240

Subtotal, Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250 750 — — 648 1,947 3,595

Duke/Fluor Daniel Loan (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . 17 — — — — — 17Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . . — — — — 41 (11 ) 30

Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — — (1) (1)

Subtotal, Duke Capital LLC Unconsolidated . . . . . . . . . . . . . . . . . . . . 267 750 — — 689 1,935 3,641

a Private Placement


LONG-TERM DEBT AS OF 12/31/2004

12 Consolidated Data



PANENERGY CORPBonds:

8.625% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 4/15/2005 104.030 — — — — — 100 100Notes:

7.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 100 — — — — — 1007.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 150 — — — — 150Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — 2 — 2

Subtotal, PanEnergy Corp . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 150 — — 2 100 352

TEXAS EASTERN TRANSMISSIONNotes:

5.25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 300 — — — 3007.30% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 300 300Medium-term, Series A, 7.92% - 9.07% . . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 20 207.0% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2032 — — — — — 450 450

Subtotal, Texas Eastern Transmission . . . . . . . . . . . . . . . . . . . . . . . . — — 300 — — 770 1,070

DUKE ENERGY FIELD SERVICES, LLC7.50% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 600 — — — — — 6005.75% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 300 — — — — 3007.875% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 800 8006.875% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 — — — — — 250 2508.125% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2030 — — — — — 300 300Capitalized Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 — — — — 2Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 — — — — — 5Fair Value Hedge Carrying Value Adjustment . . . . . . . . . . . . . . . . . . . 2 — — — — 5 7Unamortized Debt Discount/Premium . . . . . . . . . . . . . . . . . . . . . . . . — — — — — (8) (8)

Subtotal, Duke Energy Field Services . . . . . . . . . . . . . . . . . . . . . . . . 608 301 — — — 1,347 2,256

WESTCOAST ENERGY INC.6.450% Series V . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 104 — — — — 1045.70% MTN Series 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 124 — — 12412.55% Series L . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 83 837.20% MTN Series 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 124 1248.30% Series P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2013 — — — — — 83 838.50% Series U . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 104 1048.50% Series O . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 124 1249.90% Series S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2020 — — — — — 83 838.85% Series T . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 124 1248.80% MTN Series 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 21 217.30% Series W . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2026 — — — — — 104 1046.75% MTN Series 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2027 — — — — — 124 1247.15% MTN Series 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2031 — — — — — 165 165Synthetic Lease . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 168 — — — — 168Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — 24 24

Subtotal, Westcoast Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 272 — 124 — 1,163 1,559

13


LONG-TERM DEBT (CONTINUED)

Consolidated Data



UNION GAS LIMITED8.85% Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 83 — — — — — 837.80% Series 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2006 — 62 — — — — 625.19% MTN Series 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2007 — — 165 — — — 1655.70% MTN Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 83 — — 8313.50% Series 1983 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 100.000 1 1 1 2 — — 510.75% Series 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 2 2 2 3 22 — 317.20% MTN Series 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 — — — — — 153 15311.55% 1988 Series II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010 3 4 4 3 3 30 476.65% MTN Series 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 — — — — — 207 20710.625% Series 1989 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2011 7/12/2007 100.000 — — — — — 104 1047.90% Series 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2014 — — — — — 124 12411.50% Series 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2015 — — — — — 124 1249.70% 1992 Series II . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2017 — — — — — 104 1048.75% Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 104 1048.65% Series 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2018 — — — — — 62 628.65% Series 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2025 — — — — — 104 104

Subtotal, Union Gas Limited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 69 172 91 25 1,116 1,562

MARITIMES & NORTHEAST PIPELINETerm Bank Loans (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009 64 64 64 64 184 — 4407.7% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 240 2406.9% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2019 — — — — — 215 215Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 4 4 4 — 18

Subtotal, Maritimes & Northeast Pipeline . . . . . . . . . . . . . . . . . . . . . 67 67 68 68 188 455 913

DUKE ENERGY NORTH AMERICACapitalized Leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2009-2032 117 12 12 14 14 18 187Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 5 — — — — 9

Subtotal, Duke Energy North America . . . . . . . . . . . . . . . . . . . . . . . . 121 17 12 14 14 18 196

INTERNATIONAL ENERGYUnsecured Bank Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 13 — — — — — 13Senior Unsecured Notes (Floating Rate) . . . . . . . . . . . . . . . . . . . . . . 2008 7 7 8 1 — — 233.75% Senior Unsecured Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — — — 40 — — 405.873% Term Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2008 — 1 1 — — — 26.0% - 10.0% Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2017 37 41 45 49 55 235 462Senior Unsecured Term Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2010-2024 4 3 3 3 2 18 33

Subtotal, International Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 52 57 93 57 253 573

CRI Construction and Mortgage Loans . . . . . . . . . . . . . . . . . . . . . . . . . 2005-2011 12 1 10 1 10 — 34a Algonquin Gas Transmission, 5.69% Notes . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 300 300a East Tennessee Natural Gas, 5.71% Notes . . . . . . . . . . . . . . . . . . . . 2012 — — — — — 150 150Other Debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Various 1 1 1 1 1 1 6

Subtotal, Duke Capital LLC Consolidated . . . . . . . . . . . . . . . . . . . . . 1,326 1,680 620 392 986 7,608 12,612

Consolidated Long-term Debt Scheduled Maturities . . . . . . . . . . . . . . . . $1,832 $1,991 $740 $1,202 $1,197 $11,802 $18,764

a Private Placement

14


LONG-TERM DEBT (CONTINUED)

Consolidated Data

15

Redemption Date of Next Next December 31,Price at Redemption Redemption 2004

Year Due 12/31/04 (%) Price Change Price (%) (In millions)

PREFERRED AND PREFERENCE STOCKWithout Sinking Fund Requirements4.50% Series C a . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 101.00 n/a n/a $ 187.85% Series S . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.14 9/16/2005 102.75 307.00% Series W . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.15 3/16/2005 102.80 257.04% Series Y . . . . . . . . . . . . . . . . . . . . . . . . . . . Perpetual 103.17 6/16/2005 102.82 306.375% Preferred Stock A, 1993 . . . . . . . . . . . . . . Perpetual 25.72 12/16/2005 25.64 31

TOTAL PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS $134

a Redemption price is not subject to change.


PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUND REQUIREMENTS

Consolidated Data

16


CAPITALIZATION

December 31(In millions) 2004 2003 2002 2001 2000

CAPITALIZATION AND CURRENT DEBTNotes Payable and Commercial Paper . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68 — % $ 130 — % $ 915 2% $ 1,603 5% $ 1,826 6%

Current Maturities of Long Term Debt and Preferred Stock . . . . . . . . . . . 1,832 5% 1,200 3% 1,331 3% 274 1% 470 2%

Long-Term Debt a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,932 46% 20,622 55% 20,221 50% 12,321 40% 10,717 40%

Guaranteed Preferred Beneficial Interests in SubordinatedNotes of Duke Energy Corporation or Subsidiaries . . . . . . . . . . . . . . . . — — % — — % 1,408 3% 1,407 5% 1,406 5%

Minority Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,486 4% 1,701 5% 1,904 5% 2,246 7% 2,435 9%

Preferred and Preference Stock:Preferred & preference stock with sinking fund requirements . . . . . . . . . . — — 23 25 38Preferred & preference stock without sinking fund requirements . . . . . . . . 134 134 134 209 209

Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 — % 134 — % 157 1% 234 1% 247 1%

Common Stock:Balance at the beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,519 9,236 6,217 4,797 4,603Dividend reinvestment and employee benefits . . . . . . . . . . . . . . . . . . . 108 283 342 329 194Other capital stock transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . 1,625b — 2,677b 1,091b —

Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,252 9,519 9,236 6,217 4,797

Retained Earnings:Balance at the beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,060 6,417 6,292 5,379 4,397Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,490 (1,323) 1,034 1,898 1,776Dividend reinvestment and employee benefits . . . . . . . . . . . . . . . . . . . 20 (6) — — —Common stock dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,018) (993) (905) (973) (809)Preferred and preference stock dividends and

premiums on redemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9 ) (15) (13) (14) (19)Other capital stock transactions, net . . . . . . . . . . . . . . . . . . . . . . . . . . (4) (20) 9 2 34

Balance at the end of the year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,539 4,060 6,417 6,292 5,379

Accumulated Other Comprehensive Income (loss) . . . . . . . . . . . . . . . . . 650 169 (709) 180 (120)

Total Common Stockholders’ Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,441 45% 13,748 37% 14,944 36% 12,689 41% 10,056 37%

TOTAL CAPITALIZATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $36,893 100% $37,535 100% $40,880 100% $30,774 100% $27,157 100%

COVERAGE RATIOSFixed charges - using SEC guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3 — c 2.2 3.9 3.7

a Includes debt to affiliates of $876 million at 2003.

b Reflects equity offerings in 2004, 2002 and 2001 and the issuance of $1,702 million of stock related to the acquisition of Westcoast in 2002.

c Earnings were inadequate to cover fixed charges by $1,707 million for the year ended December 31, 2003.

Consolidated Data

Franchised Electric 17

FRANCHISED ELECTRIC

2004 AT A GLANCE

EBIT $1,467 million

TOTAL GENERATING CAPABILITY (NET MW)

Summer 18,414

Winter 18,469

PRINCIPAL OFFICERS

RUTH G. SHAWPresident and Chief Executive Officer, Duke Power

HENRY B. BARRON, JR.Group Vice President, Nuclear Generation andChief Nuclear Officer

MYRON L. CALDWELLGroup Vice President and Chief Financial Officer

THEOPOLIS HOLEMANGroup Vice President, Power Delivery

WILLIAM F. HALL, IIIGroup Vice President, Fossil and Hydro Generation

SANDRA P. MEYERGroup Vice President, Customer Service, Sales and Marketing

CLARENCE L. RAY, JR.Group Vice President, Procurement, Construction andEnvironmental Health and Safety

ELLEN T. RUFFGroup Vice President, Power Policy and Planning, External Relations

NC

SC

VA

GA

NC

SC

100 Kilovolt

230 Kilovolt

500 Kilovolt

Nuclear

Fossil

Hydro

Combustion Turbine

Electric Lines

Generating Facilities

Franchised Electric18

Franchised Electric

SEGMENT EARNINGS BEFORE INTEREST AND TAXES


(In millions) 2004 2003 2002 2001

TOTAL REGULATED ELECTRIC REVENUES .................................................................... $5,069 $4,875 $4,888 $4,746

OPERATING EXPENSESOperation, maintenance and other .................................................................................. 1,264 1,312 1,227 1,126Fuel used in electric generation and purchased power ...................................................... 1,206 1,192 1,219 1,206Depreciation and amortization ........................................................................................ 863 748 614 588Property and other taxes ................................................................................................ 280 273 269 265

Total operating expenses................................................................................................ 3,613 3,525 3,329 3,185

GAINS ON SALES OF OTHER ASSETS, NET .................................................................. 3 6 — —

OPERATING INCOME .................................................................................................. 1,459 1,356 1,559 1,561

TOTAL OTHER INCOME, NET OF EXPENSES a .............................................................. 8 47 36 65

REPORTABLE SEGMENT EBIT ...................................................................................... $1,467 $1,403 $1,595 $1,626

a Includes equity allowance for funds used during construction of $16 million for 2004, $40 million for 2003, $39 million for 2002 and $22 million for 2001. Excludes debt allowance for funds usedduring construction of $7 million for 2004, $14 million for 2003, $18 million for 2002 and $10 million for 2001 which is included in interest expense on the Consolidated Statement of Operations.

Franchised Electric 19

December 31

(In millions) 2004 2003 2002 2001

CURRENT ASSETSCash and cash equivalents ............................................................................................ $ 14 $ (7) $ 17 $ —Short-term investments.................................................................................................. 185 155 1 —Receivables, net .......................................................................................................... 1,015 2,938 898 —Inventory .................................................................................................................... 405 393 363 406Unrealized gains on mark-to-market and hedging transactions .......................................... — 1 — —Other .......................................................................................................................... 13 14 4 226

Total current assets ...................................................................................................... 1,632 3,494 1,283 632

INVESTMENTS AND OTHER ASSETSInvestments and advances in subsidiaries........................................................................ 12,439 8,708 10,714 10,042Nuclear decommissioning trust funds .............................................................................. 1,374 925 708 716Unrealized gains on mark-to-market and hedging transactions .......................................... 2 6 15 9Other .......................................................................................................................... 1,077 1,093 12 6

Total investments and other assets.................................................................................. 14,892 10,732 11,449 10,773

PROPERTY, PLANT AND EQUIPMENTCost ............................................................................................................................ 20,950 20,326 19,298 18,174Less accumulated depreciation and amortization .............................................................. 7,830 7,676 7,243 7,886

Net property, plant and equipment.................................................................................. 13,120 12,650 12,055 10,288

REGULATORY ASSETS AND DEFERRED DEBITSDeferred debt expense .................................................................................................. 231 207 195 166Regulatory asset related to income taxes ........................................................................ 376 381 383 489Other .......................................................................................................................... 701 672 285 418

Total regulatory assets and deferred debits ...................................................................... 1,308 1,260 863 1,073

TOTAL ASSETS ............................................................................................................ 30,952 28,136 25,650 22,766

Intercompany balances .................................................................................................. (12,753) (10,896) (11,008) (8,573)

REPORTABLE SEGMENT ASSETS ................................................................................ $ 18,199 $ 17,240 $ 14,642 $14,193

Franchised Electric

SEGMENT BALANCE SHEETS - ASSETS

Franchised Electric20

Franchised Electric

SEGMENT BALANCE SHEETS - LIABILITIES AND STOCKHOLDERS’ EQUITY

December 31(In millions) 2004 2003 2002 2001

CURRENT LIABILITIESAccounts payable.......................................................................................................... $ 444 $ 365 $ 505 $ 1,872Notes payable and commercial paper.............................................................................. — 78 238 143Taxes accrued (prepaid) ................................................................................................ 9 (71) 217 353Interest accrued ............................................................................................................ 75 76 75 49Current maturities of long-term debt................................................................................ 506 6 6 7Unrealized losses on mark-to-market and hedging transactions .......................................... — 2 — —Other .......................................................................................................................... 347 359 168 297

Total current liabilities .................................................................................................. 1,381 815 1,209 2,721

LONG-TERM DEBT ...................................................................................................... 5,656 6,957 4,703 3,208

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes .................................................................................................. 2,223 2,032 1,581 2,079Investment tax credit .................................................................................................... 154 165 175 187Nuclear decommissioning costs externally funded ............................................................ — — 708 716Unrealized losses on mark-to-market and hedging transactions .......................................... 22 22 10 14Asset retirement obligations .......................................................................................... 1,864 1,631 — —Other .......................................................................................................................... 3,211 2,766 1,718 551

Total deferred credits and other liabilities ........................................................................ 7,474 6,616 4,192 3,547

GUARANTEED PREFERRED BENEFICIAL INTERESTS IN SUBORDINATEDNOTES OF DUKE ENERGY CORPORATION OR SUBSIDIARIES...................................... — — 602 601

EQUITY ...................................................................................................................... 16,441 13,748 14,944 12,689

TOTAL LIABILITIES AND EQUITY .................................................................................. 30,952 28,136 25,650 22,766


REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 18,199 $ 17,240 $ 14,642 $14,193

21

December 312004 2003 2002 2001

SOURCES OF ELECTRIC ENERGY (GWH)Generated - net output:Coal .......................................................................................................................................... 44,638 43,696 43,561 41,796Nuclear ...................................................................................................................................... 39,218 40,256 41,155 39,922Hydro ........................................................................................................................................ 1,503 2,101 317 224

Oil & gas .................................................................................................................................. 129 106 98 139

Total generation .......................................................................................................................... 85,488 86,159 85,131 82,081Purchased power and net interchange .......................................................................................... 2,158 1,585 4,102 3,050

Total sources of energy ................................................................................................................ 87,646 87,744 89,233 85,131Less: Line loss and company usage.............................................................................................. 4,938 4,916 5,450 5,446

TOTAL GWH SOURCES .............................................................................................................. 82,708 82,828 83,783 79,685

ELECTRIC ENERGY SALES (GWH)Residential.................................................................................................................................. 25,151 23,947 24,466 23,272General service .......................................................................................................................... 25,204 24,355 24,242 23,666Industrial:Textile ........................................................................................................................................ 7,147 7,562 8,443 8,829Other ........................................................................................................................................ 18,063 17,202 17,816 18,074Other energy and wholesale.......................................................................................................... 7,194 9,340 8,706 6,979

Total GWh sales billed ................................................................................................................ 82,759 82,406 83,673 80,820Unbilled GWh sales .................................................................................................................... (51) 422 110 (1,135)

TOTAL GWH SALES.................................................................................................................... 82,708 82,828 83,783 79,685

Total Capability - Net MW a

(time of peak)Summer .................................................................................................................................... 18,414 18,807 18,438 17,912Winter........................................................................................................................................ 18,469 18,521 18,438 17,912

Peak Load - MW b

Summer .................................................................................................................................... 15,407 15,594 16,724 16,165Winter........................................................................................................................................ 14,345 14,056 13,666 12,863

Nuclear Capacity Factor (%) c ...................................................................................................... 90 91 95 92

System Load Factor (%) b............................................................................................................ 61 59 57 57

a Includes 12.5% of Catawba.b Excludes the portion of the demand of the other joint owners of the Catawba Nuclear Station met by their retained ownership.c Includes 100% of Catawba.

Franchised Electric

OPERATING STATISTICS

Franchised Electric

22 Franchised Electric

Franchised Electric


December 312004 2003 2002 2001

REVENUES FROM GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY (IN MILLIONS)

Residential revenues...................................................................................................... $1,886 $1,777 $1,794 $1,700General service revenues .............................................................................................. 1,519 1,455 1,430 1,386Industrial revenues:

Textile revenues .......................................................................................................... 293 309 335 353Other revenues .......................................................................................................... 775 738 751 759

Other energy and wholesale revenues.............................................................................. 351 431 343 367

Total revenues billed...................................................................................................... 4,824 4,710 4,653 4,565Unbilled revenues ........................................................................................................ –– 27 8 (66)Other electric revenues .................................................................................................. 9 (25) 28 72

TOTAL REVENUES FROM GENERATION, TRANSMISSION AND DISTRIBUTION OF ELECTRICITY ................................................................................ $4,833 $4,712 $4,689 $4,571

AVERAGE NUMBER OF CUSTOMERS (IN THOUSANDS)Residential .................................................................................................................. 1,865 1,835 1,799 1,803General service ............................................................................................................ 312 306 299 295Industrial:

Textile........................................................................................................................ 1 1 1 1Other ........................................................................................................................ 7 7 7 7

Total industrial ........................................................................................................ 8 8 8 8Other energy ................................................................................................................ 12 11 11 11

TOTAL AVERAGE NUMBER OF CUSTOMERS ................................................................ 2,197 2,160 2,117 2,117

23Natural Gas Transmission

NATURAL GAS TRANSMISSION

2004 AT A GLANCE

EBIT $1,310 million

THROUGHPUT 3,332 TBtu

STORAGE CAPACITY 258 Bcf

PRINCIPAL OFFICERS

MARTHA B. WYRSHPresident and Chief Executive Officer, Duke Energy Gas Transmission

GREGORY P. BILINSKIGroup Vice President, Operations and Technical Services

GUY G. BUCKLEYGroup Vice President, East Tennessee and Gulfstream

ALAN N. HARRISGroup Vice President and Chief Financial Officer, Duke Energy Gas Transmission

GREGORY J. RIZZOGroup Vice President, Duke Energy Gas Transmission

DOUG HAUGHEYPresident, DEGT West

Gulfstream

Maritimes & NE

AlgonquinUnion Gas

East Tennessee

Texas Eastern

BC Pipeline &Field Services

HOUSTON

NASHVILLE

BOSTON

CHATHAM

CALGARY

VANCOUVER

Major OfficesBC ProcessingStorageUnion Gas Service Area

24 Natural Gas Transmission

Natural Gas Transmission

SEGMENT EARNINGS BEFORE INTEREST AND TAXES

Years Ended December 31(In millions) 2004 2003 2002c 2001

TOTAL REGULATED NATURAL GAS REVENUES ............................................................ $3,290 $3,197 $2,464 $1,060

OPERATING EXPENSESNatural gas and petroleum products purchased................................................................ 758 768 409 —Operation, maintenance and other .................................................................................. 701 661 533 300Depreciation and amortization ........................................................................................ 418 393 324 141Property and other taxes ................................................................................................ 156 147 154 63

Total operating expenses................................................................................................ 2,033 1,969 1,420 504

GAINS ON SALES OF OTHER ASSETS, NET .................................................................. 17 7 — —

OPERATING INCOME .................................................................................................. 1,274 1,235 1,044 556

OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates .................................................................. 25 27 106 45Gains on sales and impairments of equity investments...................................................... 16 90 32 —Other income and expenses, net a .................................................................................. 17 8 10 6

Total other income and expenses .................................................................................... 58 125 148 51

MINORITY INTEREST EXPENSE b ................................................................................ 22 43 31 —

REPORTABLE SEGMENT EBIT ...................................................................................... $1,310 $1,317 $1,161 $ 607

a Includes equity allowance for funds used during construction of $9 million for 2004, $33 million for 2003, $16 million for 2002 and $6 million for 2001. Excludes debt allowance for funds used duringconstruction of $7 million for 2004, $21 million for 2003, $9 million for 2002 and $1 million for 2001 which is included in interest expense on the Consolidated Statement of Operations.

b Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes.

c In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment.

25Natural Gas Transmission

December 31(In millions) 2004 2003 2002a 2001

CURRENT ASSETSCash and cash equivalents ............................................................................................ $ (44) $ 113 $ 63 $ —Receivables, net .......................................................................................................... 638 446 556 —Inventory .................................................................................................................... 324 236 153 29Unrealized gains on mark-to-market and hedging transactions .......................................... 7 2 — — Other .......................................................................................................................... 45 78 59 77

Total current assets ...................................................................................................... 970 875 831 106

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates .......................................................................... 772 792 1,235 653Investments and advances in subsidiaries........................................................................ 10,983 3,235 2,778 1,803Goodwill ...................................................................................................................... 3,398 3,224 2,760 481Notes receivable .......................................................................................................... 57 28 22 — Other .......................................................................................................................... (10) 3 99 169




REGULATORY ASSETS AND DEFERRED DEBITSDeferred debt expense .................................................................................................. 53 60 64 30Regulatory asset related to income taxes ........................................................................ 893 772 553 21Other .......................................................................................................................... 185 206 221 130

Total regulatory assets and deferred debits ...................................................................... 1,131 1,038 838 181

TOTAL ASSETS ............................................................................................................ 28,089 19,626 17,967 7,240


REPORTABLE SEGMENT ASSETS ................................................................................ $ 17,106 $16,386 $15,189 $ 5,047

a In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment.



26


SEGMENT BALANCE SHEETS - LIABILITIES AND EQUITY

December 31(In millions) 2004 2003 2002a 2001

CURRENT LIABILITIESAccounts payable.......................................................................................................... $ 209 $ 233 $ 159 $ 270Notes payable and commercial paper.............................................................................. 213 12 181 — Taxes accrued .............................................................................................................. 231 232 450 325Interest accrued ............................................................................................................ 87 91 84 13Current maturities of long-term debt................................................................................ 157 389 238 134Unrealized losses on mark-to-market and hedging transactions .......................................... 3 19 13 — Other .......................................................................................................................... 425 515 324 129

Total current liabilities .................................................................................................. 1,325 1,491 1,449 871

LONG-TERM DEBT ...................................................................................................... 8,574 6,881 7,222 2,321

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes .................................................................................................. 1,980 1,775 1,474 829Investment tax credit .................................................................................................... — — 1 2Unrealized losses on mark-to-market and hedging transactions .......................................... — — 9 — Asset retirement obligations .......................................................................................... 6 30 — — Other .......................................................................................................................... 639 646 643 213


MINORITY INTERESTS ................................................................................................ 354 530 560 —

PREFERRED AND PREFERENCE STOCK WITHOUT SINKING FUNDREQUIREMENTS ........................................................................................................ — 109 — —

EQUITY ...................................................................................................................... 15,211 8,164 6,609 3,004



REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 17,106 $16,386 $15,189 $ 5,047

a In March 2002, Duke Energy acquired Westcoast. The majority of the acquisition was allocated to the Natural Gas Transmission segment.


27

December 312004 2003 2002a 2001

Throughput, trillion British thermal units (TBtu) a ............................................................ 3,332 3,362 3,160 1,781

Storage capacity, billion cubic feet (Bcf) .......................................................................... 258 257 254 101

a Represents share of capacity owned by DEGT.




28 Field Services

FIELD SERVICES

NE

SD

NDMT

ID

ALBERTABRITISH

COLUMBIA

SASKATCHEWAN

UT

CO

Calgary

Offices

NGL Terminals

Operating Areas

Duke EnergyField Services

2004 AT A GLANCE

EBIT $380 million

NATURAL GAS GATHERED ANDPROCESSED / TRANSPORTED 7.3 TBtu/d

NGL PRODUCTION 363 MBbl/d

PRINCIPAL OFFICERS

WILLIAM H. EASTER, IIIChairman, President and Chief Executive Officer,Duke Energy Field Services

MARK A. BORERGroup Vice President, Marketing and Corporate Development

MICHAEL J. BRADLEYGroup Vice President, Gathering and Processing

ROSE M. ROBESONVice President and Chief Financial Officer

29Field Services

Years Ended December 31(In millions) 2004 2003 2002 2001

TOTAL NON-REGULATED NATURAL GAS, NATURAL GAS LIQUIDSAND OTHER REVENUES............................................................................................ $10,104 $8,595 $5,952 $8,284

OPERATING EXPENSESNatural gas and petroleum products purchased................................................................ 8,614 7,439 4,924 7,088Operation, maintenance and other .................................................................................. 550 584 490 438Depreciation and amortization ........................................................................................ 298 293 281 265Property and other taxes ................................................................................................ 47 44 44 44Impairment and other related charges ............................................................................ 22 — 78 —


GAINS (LOSSES) ON SALES OF OTHER ASSETS, NET .................................................... 2 (4) — —

OPERATING INCOME .................................................................................................. 575 231 135 449

OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates .................................................................. 60 56 60 45(Losses) Gains on sales and impairments of equity investments ........................................ (23) 11 — —


MINORITY INTEREST EXPENSE a ................................................................................ 232 111 47 161

REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $ 380 $ 187 $ 148 $ 333

a Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes.

Field Services

SEGMENT EARNINGS BEFORE INTEREST AND TAXES FROM CONTINUING OPERATIONS

30

Field Services



CURRENT ASSETSCash and cash equivalents ............................................................................................ $ 59 $ 43 $ 8 $ —Short-term investments.................................................................................................. 265 — — —Receivables, net .......................................................................................................... 1,300 858 845 911Inventory .................................................................................................................... 74 45 86 83Unrealized gains on mark-to-market and hedging transactions .......................................... 59 89 209 244Other .......................................................................................................................... 17 19 45 113

Total current assets ...................................................................................................... 1,774 1,054 1,193 1,351

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates .......................................................................... 157 194 239 252Investments and advances in (from) subsidiaries .............................................................. 10,832 (17) (277) (573)Goodwill ...................................................................................................................... 498 493 481 571Notes receivable .......................................................................................................... — 1 2 64Unrealized (losses) gains on mark-to-market and hedging transactions .............................. (9) 29 47 64Assets held for sale ...................................................................................................... 37 — — —Other .......................................................................................................................... 96 188 172 177

Total investments and other assets.................................................................................. 11,611 888 664 555



REGULATORY ASSETS AND DEFERRED DEBITS............................................................ — — — 2

TOTAL ASSETS ............................................................................................................ 17,641 6,405 6,499 6,600

Intercompany balances.................................................................................................. (10,831) 12 294 513

REPORTABLE SEGMENT ASSETS ................................................................................ $ 6,810 $6,417 $6,793 $7,113

Field Services

31


CURRENT LIABILITIESAccounts payable.......................................................................................................... $ 1,175 $ 672 $ 679 $ 676Notes payable and commercial paper.............................................................................. — 22 232 213Taxes accrued (prepaid) ................................................................................................ 75 10 (188) (122)Interest accrued ............................................................................................................ 59 59 59 57Current maturities of long-term debt and preferred stock .................................................. 607 — — —Unrealized losses on mark-to-market and hedging transactions .......................................... 84 178 348 79Other .......................................................................................................................... 275 152 121 243

Total current liabilities .................................................................................................. 2,275 1,093 1,251 1,146

LONG-TERM DEBT ...................................................................................................... 1,649 2,263 2,256 2,252

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes .................................................................................................. 933 814 764 833Unrealized (gains) losses on mark-to-market and hedging transactions .............................. (27) 38 49 16Asset retirement obligations .......................................................................................... 55 45 — —Other .......................................................................................................................... 56 28 63 47

Total deferred credits and other liabilities ........................................................................ 1,017 925 876 896

MINORITY INTERESTS ................................................................................................ 850 952 928 1,039

EQUITY ...................................................................................................................... 11,850 1,172 1,188 1,267


Intercompany balances.................................................................................................. (10,831) 12 294 513

REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 6,810 $6,417 $6,793 $7,113

Field Services


Field Services

32

Field Services


December 312004 2003 2002 2001

Natural gas gathered and processed/transported, TBtu/d a ................................................ 7.3 7.4 7.9 8.2NGL production, MBbl/d b ............................................................................................ 363 353 379 390

Average natural gas price per MMBtu c .......................................................................... $6.14 $5.39 $3.22 $4.27Average NGL price per gallon d ...................................................................................... $0.68 $0.53 $0.38 $0.45

a Trillion British thermal units per dayb Thousand barrels per dayc Million British thermal unitsd Does not reflect results of commodity hedges

Field Services

33Duke Energy North America

DUKE ENERGY NORTH AMERICA

2004 AT A GLANCE

EBIT $(535) million

PLANT PRODUCTION 21,884 GWh

NET PROPORTIONAL CAPACITY IN OPERATION 9,890 MW

PRINCIPAL OFFICERS

ROBERT B. EVANSPresident and Chief Executive Officer, Duke Energy Americas

CURTIS H. DAVISGroup Vice President, Energy Generation

C. GREGORY HARPERGroup Vice President, Energy Marketing and Management

LON C. MITCHELL, JR.Group Vice President and Chief Financial Officer

Bridgeport

Bayside

MaineIndependence

Oakland

McMahon

Fort Frances

South Bay

Hanging Rock

Vermillion

Griffith St. Francis

Arlington Valley

Grays Harbor

Luna

Moss LandingMorro Bay

WashingtonFayette

Lee

Head OfficeMajor OfficesOperating FacilitiesConstruction Deferred

Calgary

Houston

34 Duke Energy North America

Duke Energy North America



OPERATING REVENUESNon-regulated electric, natural gas, natural gas liquids, and other ...................................... $2,294 $ 4,215 $1,552 $2,663Regulated electric ........................................................................................................ 67 106 — 351

Total operating revenues ................................................................................................ 2,361 4,321 1,552 3,014

OPERATING EXPENSESNatural gas and petroleum products purchased................................................................ 1,398 3,023 — 1Operation, maintenance and other .................................................................................. 419 621 435 918Fuel used in electric generation and purchased power ...................................................... 665 677 634 722Depreciation and amortization ........................................................................................ 173 251 190 103Property and other taxes ................................................................................................ 34 38 41 24Impairment and other related charges ............................................................................ 1 2,903a 207 —Impairments of goodwill ................................................................................................ — 254 — —


(LOSSES) GAINS ON SALES OF OTHER ASSETS, NET .................................................... (248) (208) — 229

OPERATING (LOSS) INCOME ........................................................................................ (577) (3,654) 45 1,475

OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates .................................................................. 5 20 44 54Gains on sales and impairments of equity investments...................................................... — 178 — —Other income and expenses, net .................................................................................... 7 8 37 2


MINORITY INTEREST (BENEFIT) EXPENSE b ................................................................ (30) (107) (43) 44

REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $ (535) $(3,341) $ 169 $1,487

a Includes impairments related to DENA’s plants and redesignation of power contracts to mark-to-market.b Includes minority interest (benefit) expense related to EBIT and excludes minority interest benefit related to interest and taxes.

35Duke Energy North America


CURRENT ASSETSCash and cash equivalents ............................................................................................ $ 57 $ 58 $ 51 $ 75Short-term investments.................................................................................................. 1 1 — —Receivables, net .......................................................................................................... 446 759 1,390 2,818Inventory .................................................................................................................... 98 171 220 203Assets held for sale ...................................................................................................... 18 — — —Unrealized gains on mark-to-market and hedging transactions .......................................... 868 1,378 1,454 1,770Other .......................................................................................................................... 338 305 737 119

Total current assets ...................................................................................................... 1,826 2,672 3,852 4,985

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates .......................................................................... 152 178 339 315Investments and advances in (from) subsidiaries .............................................................. 4,275 (119) 2,038 937

Goodwill ...................................................................................................................... — — 100 91Notes receivable .......................................................................................................... 52 1 49 44Unrealized gains on mark-to-market and hedging transactions .......................................... 1,294 1,735 2,270 2,579Assets held for sale ...................................................................................................... 47 164 — —Other .......................................................................................................................... 45 99 76 (362)


PROPERTY, PLANT AND EQUIPMENTCost ............................................................................................................................ 3,917 4,771 7,548 5,512Less accumulated depreciation and amortization .............................................................. 548 385 430 245


REGULATORY ASSETS AND DEFERRED DEBITS............................................................ 4 5 6 2

TOTAL ASSETS ............................................................................................................ 11,064 9,121 15,848 13,858

Intercompany balances.................................................................................................. (4,327) 63 (2,361) 249

REPORTABLE SEGMENT ASSETS ................................................................................ $ 6,737 $9,184 $13,487 $14,107



36 Duke Energy North America




CURRENT LIABILITIESAccounts payable.......................................................................................................... $ 546 $ 1,032 $ 1,960 $ 2,819Notes payable and commercial paper.............................................................................. — 35 35 —Taxes (prepaid) accrued ................................................................................................ (475) (411) 416 585

Interest accrued ............................................................................................................ 14 455 348 211Liabilities associated with assets held for sale .................................................................. 5 — — —Current maturities of long-term debt................................................................................ 121 17 17 15Unrealized losses on mark-to-market and hedging transactions .......................................... 542 976 988 1,114Other .......................................................................................................................... 332 366 426 1,025

Total current liabilities .................................................................................................. 1,085 2,470 4,190 5,769

LONG-TERM DEBT ...................................................................................................... 3,527 6,589 6,796 2,930

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes .................................................................................................. 549 (575) 646 330

Unrealized losses on mark-to-market and hedging transactions .......................................... 886 1,502 1,301 1,744Liabilities associated with assets held for sale .................................................................. 14 — — —Asset retirement obligations .......................................................................................... 1 1 — —Other .......................................................................................................................... 41 95 100 125


MINORITY INTERESTS IN FINANCING SUBSIDIARY ...................................................... — — — 1,025

MINORITY INTERESTS ................................................................................................ 94 64 246 (18)

EQUITY ...................................................................................................................... 4,867 (1,025) 2,569 1,953


Intercompany balances .................................................................................................. (4,327) 63 (2,361) 249

REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $ 6,737 $ 9,184 $13,487 $14,107

37



December 312004 2003 2002 2001

Actual plant production, gigawatt-hours a, b .................................................................... 21,884 24,046 24,962 20,516Net proportional megawatt capacity in operation .............................................................. 9,890 15,820 14,157 6,799

a Includes plant production from plants accounted for under the equity method.b Excludes discontinued operations.


38

INTERNATIONAL ENERGY

2004 AT A GLANCE

EBIT $222 million

SALES 17,776 GWh

NET PROPORTIONAL CAPACITY IN OPERATION 4,139 MW

PRINCIPAL OFFICERS

ROBERT B. EVANSPresident and Chief Executive Officer, Duke Energy Americas

RICHARD K. McGEEPresident, Duke Energy International

MICKEY J. PETERSGroup Vice President, Regional Operations

LON C. MITCHELL, JR.Group Vice President and Chief Financial Officer

JOHN P. ENLOEVice President, Commercial Operations and Development

HECTOR GUTIERREZVice President, Regional Operations

JOSEPH NAPOLIVice President, Regional Operations

A. LAINE POWELLVice President, Regional Operations

AcajutlaEl Salvador

Guatemala

324 MW

328 MW

ElectroquilEcuador180 MW

EgenorPeru

540 MW

Lima

San Salvador

Sao Paulo

BuenosAires

AguaytiaPeru

160 MW

Houston

Mexico City

Guatemala City

Corani, Bolivia126 MW

ParanapanemaBrazil2,307 MW

HidroelectricaCerros ColoradosArgentina576 MW

National Methanol Co.

OfficesOperating Plants

International Energy

39International Energy


TOTAL NON-REGULATED ELECTRIC, NATURAL GAS, NATURAL GAS LIQUIDS AND OTHER REVENUES........................................................ $619 $597 $743 $684

OPERATING EXPENSESNatural gas and petroleum products purchased................................................................ 4 52 83 66Operation, maintenance and other .................................................................................. 164 107 159 180Fuel used in electric generation and purchased power ...................................................... 228 205 338 131Depreciation and amortization ........................................................................................ 58 57 54 62Property and other taxes ................................................................................................ 8 5 7 19Impairment and other related charges ............................................................................ — — 75 —

Total operating expenses................................................................................................ 462 426 716 458

(LOSSES) GAINS ON SALES OF OTHER ASSETS, NET .................................................... (3) — — 9


OTHER INCOME AND EXPENSESEquity in earnings of unconsolidated affiliates .................................................................. 51 27 63 35Gains on sales and impairments of equity investments...................................................... 2 — — —Other income and expenses, net .................................................................................... 25 30 22 (11)


MINORITY INTEREST EXPENSE a ................................................................................ 10 13 10 23

REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $222 $215 $102 $236

a Includes minority interest expense related to EBIT and excludes minority interest expense related to interest and taxes.



40




CURRENT ASSETSCash and cash equivalents ............................................................................................ $ 301 $ 67 $ 91 $ 203Receivables, net .......................................................................................................... 603 344 980 395Inventory .................................................................................................................... 34 28 42 33Assets held for sale ...................................................................................................... 22 346 — —Unrealized (losses) gains on mark-to-market and hedging transactions .............................. — (2) 396 270Other .......................................................................................................................... 18 21 67 50

Total current assets ...................................................................................................... 978 804 1,576 951

INVESTMENTS AND OTHER ASSETSInvestments in unconsolidated affiliates .......................................................................... 167 147 122 165Investments and advances from subsidiaries .................................................................... (79) (258) (375) (334)Goodwill ...................................................................................................................... 245 238 246 427Notes receivable .......................................................................................................... 68 128 104 161Unrealized gains on mark-to-market and hedging transactions .......................................... — — 111 205Assets held for sale ...................................................................................................... — 1,216 — —Other .......................................................................................................................... 198 261 924 286

Total investments and other assets.................................................................................. 599 1,732 1,132 910

PROPERTY, PLANT AND EQUIPMENTCost ............................................................................................................................ 2,189 2,016 3,014 3,148Less accumulated depreciation and amortization .............................................................. 371 264 299 230


TOTAL REGULATORY ASSETS AND DEFERRED DEBITS ................................................ — — 6 3

TOTAL ASSETS ............................................................................................................ 3,395 4,288 5,429 4,782

Intercompany balances.................................................................................................. (66) 262 374 333

REPORTABLE SEGMENT ASSETS ................................................................................ $3,329 $4,550 $5,803 $5,115


41International Energy


CURRENT LIABILITIESAccounts payable.......................................................................................................... $ 35 $ 25 $ 582 $ 292Notes payable and commercial paper.............................................................................. — — 182 299Taxes accrued (prepaid) ................................................................................................ 212 58 (60) 15Interest accrued ............................................................................................................ 1 3 10 13Liabilities associated with assets held for sale .................................................................. 25 651 — —Current maturities of long-term debt................................................................................ 61 95 116 50Unrealized losses on mark-to-market and hedging transactions .......................................... — 2 413 251Other .......................................................................................................................... 53 60 140 129

Total current liabilities .................................................................................................. 387 894 1,383 1,049

LONG-TERM DEBT ...................................................................................................... 513 476 1,351 914

DEFERRED CREDITS AND OTHER LIABILITIESDeferred income taxes .................................................................................................. 96 123 291 157Unrealized losses on mark-to-market and hedging transactions .......................................... — — 92 181Liabilities associated with assets held for sale.................................................................. — 737 — —Other .......................................................................................................................... 56 68 469 132

Total deferred credits and other liabilities ........................................................................ 152 928 852 470

MINORITY INTERESTS ................................................................................................ 132 124 147 181

EQUITY ...................................................................................................................... 2,211 1,866 1,696 2,168


Intercompany balances.................................................................................................. (66) 262 374 333

REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $3,329 $4,550 $5,803 $5,115



42

December 312004 2003 2002 2001

Sales, GWh .................................................................................................................. 17,776 16,374 18,350 15,749Net proportional megawatt capacity in operationa ............................................................ 4,139 4,121 3,917 3,968

a Excludes discontinued operations.




43Crescent Resources

CRESCENT RESOURCES

2004 AT A GLANCE

EBIT $240 million

RESIDENTIAL LOTS SOLD 2,473

COMMERCIAL SQUARE FOOTAGE SOLD 2.1 million

MULTI-FAMILY UNITS SOLD 273

SURPLUS (LEGACY) LAND SOLD 9,087 acres

OPERATING MANAGEMENT

ARTHUR W. FIELDSPresident and Chief Executive Officer, Crescent Resources

FRED A. BYERSSenior Vice President, Commercial Development

JAMES M. SHORT, JR.Senior Vice President, Land Management

H. THOMAS WEBB, IIISenior Vice President, Residential Development

JAMES C. SMITHVice President, Multi-family Development

ROBERT W. MCGEEChief Financial Officer

NashvilleLake James

Charlotte

Lake Keowee

Columbia

Atlanta

Jacksonville

Tampa

Orlando

HiltonHead

44 Crescent


OPERATING REVENUES .............................................................................................. $437 $284 $226 $213

OPERATING EXPENSES

Operation, maintenance and other .................................................................................. 343 219 162 134

Depreciation and amortization ........................................................................................ 2 6 8 11

Property and other taxes ................................................................................................ 6 6 7 6

Impairment and other related charges ............................................................................ 42 — — —

Total operating expenses................................................................................................ 393 231 177 151

GAINS ON SALES OF INVESTMENTS IN COMMERCIAL AND MULTI-FAMILY REAL ESTATE.............................................................................. 192 84 106 106


OTHER INCOME AND EXPENSES

Equity in earnings of unconsolidated affiliates .................................................................. 3 — — 2Other income and expenses, net .................................................................................... — — 1 (1)

Total other income and expenses .................................................................................... 3 — 1 1

MINORITY INTEREST (BENEFIT) EXPENSE a ................................................................ (1) 3 (2) 2

REPORTABLE SEGMENT EBIT FROM CONTINUING OPERATIONS .................................. $240 $134 $158 $167

a Includes minority interest (benefit) expense related to EBIT and excludes minority interest (benefit) expense related to interest and taxes.

Crescent Resources


45

Crescent Resources



CURRENT ASSETS

Cash and cash equivalents ............................................................................................ $ 25 $ 18 $ 21 $ 16

Receivables .................................................................................................................. 95 171 87 161

Total current assets ...................................................................................................... 120 189 108 177

INVESTMENTS AND OTHER ASSETS

Investments in unconsolidated affiliates .......................................................................... 20 15 17 24Investments and advances in (from) subsidiaries .............................................................. 772 133 (49) (52)

Goodwill ...................................................................................................................... 7 7 6 —

Notes receivable .......................................................................................................... 55 102 109 140

Investments in residential, commercial and multi-family real estate (net of accumulated depreciation of $15 in 2004, $32 in 2003 and 2002, and $20 in 2001) ...... 1,104 1,331 1,440 1,253

Other .......................................................................................................................... 9 10 5 6


TOTAL ASSETS ............................................................................................................ 2,087 1,787 1,636 1,548

Intercompany balances.................................................................................................. (772) (134) 49 53

REPORTABLE SEGMENT ASSETS ................................................................................ $1,315 $1,653 $1,685 $1,601

Crescent

46 Crescent


CURRENT LIABILITIESAccounts payable.......................................................................................................... $ (1) $ (1) $ (1) $ 58Taxes accrued .............................................................................................................. 9 9 7 4Interest accrued ............................................................................................................ 1 1 2 4Current maturities of long-term debt................................................................................ 11 11 13 41Other .......................................................................................................................... 147 109 103 20

Total current liabilities .................................................................................................. 167 129 124 127

LONG-TERM DEBT ...................................................................................................... 23 22 45 32

DEFERRED CREDITS AND OTHER LIABILITIES ............................................................ 28 45 34 33

MINORITY INTERESTS ................................................................................................ 59 30 21 19

EQUITY ...................................................................................................................... 1,810 1,561 1,412 1,337


Intercompany balances .................................................................................................. (772) (134) 49 53

REPORTABLE SEGMENT LIABILITIES AND EQUITY........................................................ $1,315 $1,653 $1,685 $1,601

Crescent Resources


December 312004 2003 2002 2001

Residential lots sold ...................................................................................................... 2,473 2,060 1,221 1,075Commercial square footage sold, in millions .................................................................... 2.1 1.7 1.2 3.1Multi-family units sold .................................................................................................. 273 950 — —Surplus (legacy) land sold, acres .................................................................................... 9,087 5,088 10,982 11,402

Crescent Resources


47Crescent

Duke Energy is an Equal Opportunity Employer.This report is published solely to inform shareholders and is not to be considered an offer, or the solicitation of an offer, to buy or sell securities.Published July 12, 2005.©2005 Duke Energy Corporation. All Rights Reserved.

Duke-Energy 04 Stat_Supplement

Economy & Finance

Transcript of Duke-Energy 04 Stat_Supplement