Fred J. Fowler
President
Chief Operating Officer

CUSTOMERS FACE THEIR OWN CHALLENGES, AND WE OFFER SOLUTIONS.

Most of our customers are facing the same economic pressures as we are. This presents a real opportunity to build on our business relationships by helping new and existing customers manage their energy needs and costs.

We’re reaching for larger market share with wholesale customers, who look to Duke Energy for price risk management and reliable energy supply.

For example, Duke Energy is saving the city of North Little Rock, Ark., a projected $2.2 million over five years, by reliably supplying its electricity needs at lower cost than competitors could offer. Our cost-efficient generation and marketing capabilities combined to give us that competitive advantage.

On the retail side, Duke Power is ranked #1 for customer satisfaction in the TQS Research survey of large industrial and commercial customers of electric utilities, and consistently ranks first or second with residential customers on the American Customer Satisfaction Index. Awards and surveys that put us at the top of the charts are in the nice-to-know category, but our greatest satisfaction comes from knowing that we’re meeting our customers’ expectations.

Union Gas has launched a web-based system that enables its business customers to conduct energy transactions online. At Duke Power, we’re rolling out mobile meter reading to measure customer usage with pinpoint accuracy, in a fraction of the time and at less cost than manual reading.

When a December 2002 ice storm in the Carolinas left nearly 1.4 million customers in the cold and the dark, Duke Power restored service to more than 150,000 customers per day – more than ever before. This dramatic restoration rate drew on our experience in previous storms: Following the devastation of Hurricane Hugo in 1989 we restored power to an average of 38,000 customers per day, and after a 1996 ice storm, 66,000 customers per day. Each time we have learned valuable lessons about communicating with our customers as we work to safely restore their comfort and security.

One of the realities of the energy business is that many factors are beyond our control – like the weather and the economy. Our job is to effectively manage the factors we can control, and to make the best possible decisions to successfully guide our company through all kinds of conditions and market cycles. Driving us will be our operational focus, our commitment to customers and our belief in the future of competitive energy markets.