Duke Energy Corporation Q3 2009 Earnings Call Transcript

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2009-10-30 11:22:05.0

Tags: Deutsche Bank AG, Call Transcript, Duke Energy Corp., Earnings, RBC Capital Markets, Benefits, Payroll Solutions, Personal Finance, Financial Accounting, Human Resources, Finance, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question is from Jonathan Arnold - Deutsche Bank.

Jonathan Arnold - Deutsche Bank

I wanted to ask about Ohio and what you’ve said about competition and specifically you mentioned that you think its going to be a drag of $0.2 to $0.3 in 2009 and imagine the pace of switching and why it didn’t really get under full way until sometime in the year.

So is it reasonable to assume a similar drag into 2010 as you get a full year impact or something less, something more, how should we think about that?

Lynn Good

You know Jonathan, good question. The $0.2 to $0.3 as you indicated represents the downward pressure for this year and the switching began to pick up about half way through the year.

I think that’s a reasonable basis for you to consider as you think about ‘10, but we will give you a fuller perspective on guidance for ‘10 when we come back in February, because the segment in total has many moving parts to it. The gas-assets, capacity revenues, wholesale prices and our wind business over time we're contributing that area as well. So I think those are the factors that you should be thinking about for '10.

Jonathan Arnold - Deutsche Bank

Could I just follow up on the switching, are you seeing a moderation in the pace of kind of gross switching currently or is it still going at full tilt?

Lynn Good

It's difficult to measure pace Jonathan, because we are talking about something that's occurred over a month or two. I think we'll have a better sense as we have more time passing.

Jonathan Arnold - Deutsche Bank

And if I may, just on another topic, if you do pre-fund the pension would you anticipate an earnings benefits in turn and could you maybe give some quantification around that and does any part of the write-down of the commercial power assets, is it all goodwill or is there is some of it PP&E that it would reduce DNA going forward?

Lynn Good

On the pension modest impact to earnings in '10. We typically make our pension contribution around the first quarter, so it's a slight acceleration Jonathan. And a modest amount of the impairment is PP&E, less than $50 million.

Operator

Your next question is from Lasan Johong - RBC Capital Markets.

Lasan Johong - RBC Capital Markets

 

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