Duke Energy Second Quarter Earnings Reflect Continued Positive Momentum

Company is on track to achieve 2011 adjusted diluted EPS outlook range of $1.35 to $1.40 per share

CHARLOTTE, NC – August 2, 2011 – Duke Energy today announced second quarter 2011 adjusted diluted EPS of 33 cents, compared to 34 cents for second quarter 2010. Reported diluted EPS were 33 cents, compared with a reported diluted net loss per share of 17 cents for the same period last year, which included non-cash impairment charges of approximately $660 million.

The company’s largest business segment, U.S. Franchised Electric and Gas, achieved solid performance due in part to its new generation investments in the Carolinas and Indiana, which helped offset less favorable weather and higher operations and maintenance costs primarily related to storm restorations compared to the prior year.

Duke Energy’s International and Commercial Power business segments posted strong results in the second quarter of 2011.

The company is on track to achieve its 2011 adjusted diluted EPS outlook range of $1.35 to $1.40 per share.

“Our second quarter results continue the positive momentum created by all of our business units in the first three months of the year,” said James E. Rogers, chairman, president and chief executive officer. “Traditionally, our third quarter is the most significant and we are focused to ensure we are fully prepared to safely, reliably and efficiently meet customers’ energy needs.

“We also will be working hard the remainder of the year on our proposed merger with Progress Energy; pending rate cases in the Carolinas; ongoing fleet modernization; and in pursuing a new Electric Security Plan (ESP) for Duke Energy Ohio customers,” he added. “All of these strategic initiatives will help prepare our company for long-term success.”