Duke Energy Ohio and Duke Energy Kentucky Propose Switch to PJM Regional Transmission Organization

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May 20, 2010, 11:00 ET

CINCINNATI, May 20 /PRNewswire-FirstCall/ -- Duke Energy (NYSE: DUK) announced today plans to change the membership of Duke Energy Ohio and Duke Energy Kentucky from the Midwest Independent System Operator to the PJM regional transmission organization.

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A filing will be made with the Federal Energy Regulatory Commission (FERC), the federal administrative agency that oversees wholesale electricity markets, seeking approval to transfer the Duke Energy Ohio transmission assets from the Midwest ISO to PJM.

"Joining PJM will bring long-term benefits for Duke Energy's Ohio customers because it puts all Ohio utilities in the same wholesale market, where customers will benefit from the same wholesale and retail market rules," said Keith Trent, group executive and president of Duke Energy's Commercial Businesses. "Because our Kentucky generation is connected to our Ohio transmission system, the move to PJM will also bring long-term benefits to our Kentucky customers."

Duke Energy's Commercial business segment operates 7,600 megawatts of wholesale generation, primarily in the Midwest. Six of those plants are co-owned with Dayton Power & Light and American Electric Power, both of which are members of PJM.

Having all power plant owners in the same RTO -- subject to the same price and market signals -- will also assist in outage and maintenance planning.

There are no plans to move Duke Energy Indiana from the Midwest ISO to PJM.

PJM Interconnection is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.

The Midwest ISO coordinates the movement of wholesale electricity in all or part of 14 states in the Midwestern U.S. and the Manitoba province of Canada.

Duke Energy Ohio's operations provide electricity to approximately 685,000 customers and natural gas service to approximately 400,000 customers.

Duke Energy Kentucky's operations provide approximately 1,100 megawatts of electricity capacity to approximately 135,000 customers. The company also provides natural gas service to approximately 100,000 customers in Northern Kentucky.

Duke Energy is one of the largest electric power holding companies in the United States. Our regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 11 million people. Our commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com.