Name: These Energy Trends Are Here to Stay
Uploaded: 2016-02-18
Duration: 3 min 18 s
Description: According to Duke Energy CEO Lynn Good

Lynn you run the largest electrical utility in the country and you've been talking a lot recently about how the power industry is going through this major transformation, so tell us how are things gonna look when you get to the other side? I think ahead, what does Duke look like in five or ten years? Our guiding principle is to continue to innovate in a way that adds value to customers. I think customers have to be at the center of the conversation so it's adopting new technologies and transforming them in a way that delivers the greatest value to customers Well actually, Duke has been moving aggressively into having more plants that are powered by natural gas. And closing down plants that are coal power. Tell us why this all makes sense? It's very price competitive. It has a lower carbon footprint. And it's a resource that can be easily built and used for the benefit of customers. And so as we think about all the things we're trying to accomplish. Modernizing, addressing the requirements of public policy, keeping prices low for customers Natural gas becomes such a natural. [ UNKNOWN ], you're talking a lot about the competitor prices of natural gas. They actually are so super low and super cheap. And also, interest rates are low, which I guess a combination has been a good time to be expanding in this area. How long do you see this trend continuing? It's a really good question, Suzie, because I think there's volatility over time in all commodities. And natural gas would be one of them. But as we look at the supply and demand requirements around natural gas and we look at some of the fundamental expectations around price, we think it's gonna be very price competitive for a long time. We love diversity, and our mix of generation for that reason, cuz we can't predict the future with certainty, So we like to have nuclear as part of our mix. We like to have some renewables as part of our mix. And that diversity helps offset what might occur with a little commodity prices. Let's talk a little bit about a nuclear. You're a big believer in a nuclear power but you know it's a controversial topic and it's very expensive. So does this make Economic sense, and will this become a reality? Nuclear is one of the important resources that Duke uses today to provide power to customers. And we've been a nuclear operator for many, many years. It's one of the reasons our prices are 20 to 30 % below national average. It's carbon free, it makes a lot of sense as we continue to transform. But the pricing has to be more competitive than it is today. We talked a moment ago about natural gas. When you have natural gas as an alternative nuclear new nuclear today is expensive. And you're also very close to closing on this five billion dollar deal To buy Piedmont Natural Gas. Tell us how this fits into your strategy. So Piedmont Natural Gas is a recognized leader in natural gas infrastructure and a local distribution company, supplying natural gas to customers. And so as we talked about natural gas being an important part of the future of energy We see the compliment of bringing a gas platform into Duke is really strategic for the future of providing services to customers. There's been a lot of concern about what it means in terms of rates that customers will be paying. You know, what can they expect? We We will not increase prices to customers as a result of a combination like this one. We believe there will be great benefits to customers over time from the combination. [ BLANK_AUDIO ]