Duke Energy (NYSE: 

DUK), headquartered in Charlotte, North Carolina, is

an energy company with assets in the United States, Canada and LatinAmerica
Type Public
Industry Public Utility
Founded 1904
Charlotte, North Carolina
Headquarters
United States

Duke Energy Ohio: Ohio

Kentucky
Duke Energy Indiana:
Area served Indiana
Duke Energy Carolinas:
North Carolina South
Carolina

James Buchanan Duke

Key people Benjamin Newton Duke
James E. Rogers (CEO)
Electricity generation
Products transmission and distribution
natural gas
USD $12.74 billion, (as of
Revenue
March 2010)
Operating income USD $2.967 billion
Net income USD $1.863 billion
Total assets USD $49.0 billion
Employees 18,109
Website duke-energy.com
The company began in 1900 as the Catawba Power Company when Dr. Walker Gill
Wylie and his brother financed the building of a hydroelectric power station at India
Hook Shoals along the Catawba River. In need of additional funding to further his
ambitious plan for construction of a series of hydroelectric power plants, Wylie
convinced James Buchanan Duke to invest in the Southern Power Company, founded
in 1905, which later became known as Duke Power.
In 1988, Nantahala Power & Light Co., which served southwestern North Carolina,
was purchased by Duke and is now operated under the Duke Power - Nantahala Area
brand. Duke Power merged with PanEnergy in 1997 to form Duke Energy. The Duke
Power name continued as the electric utility business of Duke Energy until the
Cinergy merger.
SWOT ANALYSIS:

STRENGTHS :
§ Strong brand equity
§ Long standing and financially sound firm
§ Extensive resources

WEAKNESSES :

§ Operating in unstable environment

§ Negative perceptions regarding operation
§ Tendency of committing unethical environmental practices
§ Prices
 OPPORTUNITIES :
1.Re-establishment of image
2.Make amends with people affected by operation
3.Creating parties which will be held accountable for unethical practices
4.Establish partnership with local stakeholders

THREATS :

1.Continued opposition from local nationals who are affected by operations

2.Continued discrediting of operations
3.Continued negative images and publicity
4.Lobby groups
Cinergy Corp. was an energy company based in Cincinnati Ohio.

Cinergy Corporation

Type Energy company

Industry Energy services

1994 (merger of Cincinnati

Founded Gas & Electric Company and
PSI Energy

Headquarters Cincinnati, OH
SWOT ANALYSIS:

STRENGTH:

1.Providing better product, services and security to the customers.

2.It has spending a lot in research to utilize the energy resource in efficient and
effective ways in order to reduce negative impact on environment

3.Profits are increasing every year

4. Strong marketing and distribution

WEAKNESS:

1. Criticize by people, human right and social groups on different incidents

2. Illegal trade with few countries

OPPORTUNITY:

1.Increasing demand

2. Market development in energy demanding markets

3. The Company can donate to Social and environmental groups to show their interest in
environmental issues.

THREAT:

1. Resistance of environmental and social groups

2. Slowdown in economy due to recession

3. Increase in Taxes

4. Alternative energy sources

MERGER:
they have entered into a definitive merger agreement to create an energy
company with approximately US$36 billion in market capitalization and 5.4
million retail customers.

Under the merger agreement, each common share of Cinergy will be

converted into 1.56 shares of Duke Energy on closing of the merger., Cinergy
investors will receive a premium of 13.4%. Following the merger, Cinergy
shareholders will own approximately 24%, or about 310 million shares, of
Duke Energy pro-forma shares outstanding, and Duke Energy shareholders
will own approximately 76% of the total 1.3 billion shares. The transaction
will be accretive to Duke Energy’s earnings in the first full year of operation.
Upon completion of the merger, Paul M. Anderson, currently chairman and
chief executive officer of Duke Energy, will become chairman of the board of
the combined company. James E. Rogers, currently chairman, president and
chief executive officer of Cinergy, will become president and chief executive
officer. The new board will comprised initially 10 members named by Duke
Energy and five members named by Cinergy

The combination of Duke Energy and Cinergy will create a rock-solid portfolio
of electric and gas businesses, increasing value for our shareholders
immediately and in the longer term
Benefits of the Merger

Increased Scale and Scope of Regulated Businesses:

The combined company will create a stronger portfolio of utility businesses

with 3.7 million retail electric customers and 1.7 million retail gas customers in
Ohio, Kentucky, Indiana, North Carolina, South Carolina and Ontario, Canada.
The retail electric businesses will have more than 25,000 MW of generation
and broad operational and regulatory experience. Coupled with the company’s
pipeline operations, the regulated businesses will contribute a substantial
percentage of stable earnings and create the financial strength and scale to
participate in the continuing consolidation of the utility sector.
Continued Financial Strength:

Increased scale and scope will also strengthen the balance sheet of the combined
company, improving financial flexibility and positioning it well for the future.The
combined company will have electric and gas businesses with stand-alone scale.
Based on implied market capitalization, the electric business would be one of the
top five in the United States; the gas business would be the largest in North
America.
Steadfast Community Involvement:
Duke Energy and Cinergy have long been committed to the communities in which
they operate. That demonstrated commitment will continue through local
presence, economic development efforts and corporate contributions.
Significant Synergies:

The merger offers both strategic and financial advantages in serving the energy
marketplace. Not including implementation costs, the combination will generate
approximately $400 million in annual gross synergies--when fully realized in year
three--from across corporate activities, regulated utilities and non-regulated
marketing, trading and generation businesses. These cost savings will result from
elimination of duplicate spending and overlapping functions, improved sourcing
strategies, avoidance of planned expenditures and the consolidation of non-
regulated business unit operations. The combined companies currently employ
approximately 29,350 and expect a reduction of approximately 1500, primarily
through attrition, early retirements and other severance programs. The companies
anticipate that upon review with state commissions, regulated savings will be
shared between customers and shareholders over time in an equitable manner.
Transferring power plants to Cinergy raises problems:

Duke transfered five power plants to Cinergy: Fayette, a 620 MW natural gas power
plant in Masontown, Pennsylvania; Hanging Rock, a 1,240 natural gas power plant in
Lawrence County, Ohio; Lee, a 640 MW natural gas power plant in Lee County,
Illinois; 75% interest in Vermillion, a 648 MW natural gas power plant in Vermillion
County, Indiana; and Washington, a 620 MW natural gas power plant in Washington
County, Ohio.
This transfer of unregulated generation is in explicit violation of FERC’s policy on
transfers of assets between affiliates. According to the Duke-Cinergy Merger
Agreement, this asset transfer will only take place after Duke Energy’s unregulated
generation (DENA) and Cinergy’s utility Cincinnati Gas & Electric become
affiliates.
The merger will result in rate increase for consumers:

According to the company’s own filings, the merger will result in rate increases to
consumers. The companies request that the Ohio Public Utilities Commission
authorize the collection of net costs associated with the merger.