| It was necessary to reinterview Harvey Padewer
because he has moved on from president of Utilicorp to the president of
Duke Energy Services. Padewer was interviewed in Houston in October '99
where he discussed the capabilities and strengths of Duke.
According to Padewer, "Duke Energy Services capitalizes on opportunities around the world with speed to market ... maximizing our ability to recognize trends on the horizon and when the time is right to monatize assets at peak value.
Our strength pivots on the synergies created among the company's talented business units:
Duke Energy Merchants scans the horizon confirming leading market opportunities. Duke Solutions captures aggregated retail sales and niche market upgrades.
Duke Energy North America takes the lead on a project, as either a greenfield power plant or by acquiring existing assets.
Duke Engineering and Services gathers permitting, siting and environmental data.
Duke/Fluor Daniel designs, constructs and operates the plant.
The trading and marketing group within Duke Energy Merchants handles fuel supply and sells the power to the electric grid.
Duke Energy International harnesses all these talents, under one command to deliver the same energy expertise on a global basis.
Duke Energy Services has built a one of a kind organization by converging multiple talents, financial backing and low cost asset positions.
We are now strategically positioned to launch sustained, accelerated EBIT growth for Energy Services at a compound annual growth rate at or above 40%," continued Padewer, and by supporting our target to grow earnings per share eight - ten percent for the entire corporation.
As a $29 billion global energy company, Duke Energy has the proven ability to develop and execute multiple transactions simultaneously. The company is staying focused on the course and heading for each while remaining prepared to change direction when necessary.
The execution of these deals clearly demonstrates the strategy to acquire, build, and manage out assets and portfolios.
Duke Energy International, DEI, not only crosses international waters but also leverages local expertise and knowledge in Asia Pacific and Latin America.
Australia is a good example of DEI's strategy.
In 1998, DEI established a strong beachhead with the purchase of the Queensland pipeline, a 389 mile pipeline in Eastern Australia, the establishment of Australia's first natural gas trading and marketing business and the construction of the 500 mile Eastern Gas Pipeline in Southeast Australia.
On the electricity front, in January 1999, DEI acquired 400 megawatts of power generation from Broken Hill Proprietary.
Across the globe, DEI is forming a strong portfolio of projects in Lain America.
In a single week three asset acquisitions were announced: Paranapanema, two power plants from CEL; Acajutla and Salvadorena, and the Latin American portfolio from Dominion Resources.
They also established a commanding interest in both supply and demand regions. This enhanced position also creates opportunities to leverage these acquisitions through DEI's trading, marketing and business development office in Buenos Aires. This office is the hub for trading in the Mercosur countries.
The execution of our plan will deliver enhanced shareholder value," Padewer concluded.