Duke Energy EIM ( IMA ) Overview Charlie Ward Chief Architect - Smart Energy Systems

1. Duke Energy EIM (IMA) Overview Charlie Ward Chief Architect - Smart Energy Systems

2. Summary – Why EIM? PRODUCTS & SERVICES OPERATIONS WORKFORCE ASSETS & FINANCIALS CUSTOMERS ONE COMPANY:Single version of the truth, shared management of information assets YESTERDAY TODAY AND INTO THE FUTURE • Inefficient access to company-wide information • Multiple companies and multiple functional information silos • Various definitions and rules for information • Limited oversight of information quality and usage • Uncontrolled data proliferation through “spreadmarts” • Information strategies & stewardship implemented • “One company” approach; functional silos broken for a process view • Highly leverage analytics for Business decisions • Acquisitions expedited • Cost and efficiency gains through improved information access and quality 2

3. BACKGROUND • In 2005 Duke Energy adopted a strategy of growth through acquisition • Target was 4X current size over 7 years = 14 states, 12 - 14M customers, 70,000 employees • IT was commissioned to build a “scalable platform” to support future M&A • Standardized core systems • Managed business data and information • 1 system / 1 process • “Plug & Play” for future acquisition • 2005 – 2006 acquired/merged with Cinergy = 5 states, 4.5M customers, ~19000 employees • Designed and delivered the Information Management Architecture (IMA) for the scalable platform • Future M&A transactions would be executed as acquisitions – target company’s data converted and Duke Energy systems and processes adopted

4. EIM/IMA Benefits • Reduces Application Dependency • When applications reference each other directly, changing one means all who reference must change also. Hubs eliminate direct reference and an application may change without impacting others. Lower cost of application life cycles. • Provides Single Version of the Truth • When applications maintain their own version of enterprise data, inevitably, that data over time will differ from the other versions found in other applications. Greater confidence in the data. • Provides Integrated Reporting/Analytics • Reports can be constructed from the “single version of the truth” directly rather than replicating data from various sources into numerous report-specific copies. Fewer data and reporting errors. • Multiple systems performing the same function—whether region-specific customer information, or systems of newly acquired companies—contribute to singular, consolidated reporting. Lower cost to prepare consolidated reports. Total cost is lowered while information becomes more reliable

5. Catalog Layer Meta Data What’s available, What’s certified, Data Move & Transform Analytics Collection of Cubes & Marts , Analytic Capabilities Reporting Standard Reports, Ad hoc capabilities, Dashboards Data Hubs Data models independent of transactional systems, Business Processes Req to Pay, Order to cash, etc. Transactional Systems Applications and source data, Transaction processing, Operational reporting Integration Application Integration, Data Move & Transform Data Quality IMA 2006 Security Processes Financial Systems Financial Systems Enterprise Application Integration Data Hubs Analytics Reporting Financial Systems M&A Finances Standard Reports Extract, Transform & Load Supply Chain Systems Materials Ad Hoc Reports EAM Work Mgmt Systems Products & Services Messaging Managed Reports Customer System Customer Smart Grid Web Services Dashboard etc. other Systems other Systems other Systems Infrastructure

6. What is a Data Hub? • A Data Hub is a collection of data for a specific business subject area and is the authoritative source of data for application integration, and the authoritativesource of data for reporting and analytics. • Each data hub is comprised of an operational data store (ODS) for system integration, and a data warehouse (DW) for reporting/business intelligence/analytics • The collection of subject area data warehouses in the IMA comprise Duke Energy’s enterprise data warehoues Based on this concept we manage information independent of the applications supporting business processes.

7. Products & Services Customer Facilities Customers T&D Facilities Workforce Duke EnergyFacilities Materials Finances Equipment Duke Energy Enterprise Data Model transport products to are delivered to are sold to produce performs work at maintained at produce revenue maintained at compensate performs work at fund Nuclear Facilities F/H Facilities means X “is a type of” Y. Sub-types inherit relationships of the parent. X Y

8. Business Strategy Changes • Late 2007 - Duke Energy scales back M&A plans to focus on streamlining operations to strengthen the balance sheet • Late 2008 - Strategy changes to emphasize revenue growth via smart grid, investment shifts to: • Green generation technologies – wind, solar, clean coal, CO2 scrubbers, etc.. • Distribution grid modernization • AMI meter and system deployment/upgrade • New customer products and services • Energy management and conservation

9. New Business Strategy Drives Change • Evolving integration requirements • Future merger and acquisition (M&A) activities • More external service providers and partners • Data integration with exponentially larger volumes of data • Cross functional data analytics • Customer facing services • Reduce solution development, enhancement, and maintenance costs • Faster time to market for new or enhanced solutions • Decrease development time via standard, reusable *services • Shorten solution test cycles, particularly regression testing • Better visibility into system operational and performance metrics to preclude failure and speed problem troubleshooting and resolution • Business process and supporting system flexibility

10. Capabilities Business Drivers Core Issues Architecture Capabilities • The smart energy leadership team defined a set of business expectations IT needed to address to support program initiatives. • The Core Issues are the obstacles that need to be overcome. • The Architecture Capabilities are required specifically to: • Meet the Smart Energy and Smart Grid business needs • Overcome the Core Issues • Deliver and support the Business Drivers J H C G B B H G B E B E C A B C C E F D A J D A H I D A G E I D F H G B G E H I A D I H F 5 4 4 2 9 6 2 8 6 1 1 6 3 5 9 3 2 9 1 2 8 7 4 8 3 8 1 4 3 3 7 7 7 7 8

11. Catalog Layer The Enhanced IMA End to End Testing Tools Data Hubs Analytics Reporting SOA Business Processes Financial Systems Financial Systems Financial Systems • Information Integration Services • Information Integrity Services • ETL Services • EII Services Finances Facilities Standard Reports Supply Chain Systems • Master Data Management • Lifecycle Management • Hierarchy & Relationship Mgt • Data Quality Management • Authoring • Base Services • MMD Interface Services Materials Work Mgmt Systems Ad Hoc Reports Customer System Equipment. Managed Master Data Registry Managed Reports • Integration Middleware • Enterprise Service Bus • Queue • Registry & Repository • Quality of Service other Systems Customers other Systems Other Systems Dashboard GIS Products & Services Enterprise Application Integration HRMS Workforce ETL Messaging Web Services Management and Monitoring (initially Registry & Repository, later BAM) Security Infrastructure

12. Business Strategy Changes Again • 2011 – Duke Energy merges with Progress Energy to create the largest IOU in US. Announces it will probably execute another acquisition once Progress deal closes. Agility and Flexibility are keys to success. EIM should be able to support any business strategy with little to no change. Duke Energy’s IMA currently supports 3 major strategic initiatives…

13. (EIM) IMA supports integration of smart grid systems

14. Enhanced IMA supports a digital customer interaction strategy

15. Enhanced IMA supports M&A system integration

16. EIM Governance • IT Governance Committee commissioned a working team to : • Evolve a definition of data stewardship • Perform the role on an on-going basis • Define a structure for Duke Energy data • Make policy recommendations • Data Stewardship will evolve over time • A cross functional technical governance team was formed to ensure the proper technologies are deployed, maintained, and managed • An Integration Center of Excellence was created to develop and provide expertise on the technologies and processes of EIM

17. Successes To-Date • PeopleSoft Financials 8.9 avoided interface costs • EAM able to design its interfaces to Finances and Customers data hubs rather than being dependent on projects in those areas. • Customers data hub allows a single interface in spite of their being four customer information systems. OLS (~$200K /yr avoidance) , eBill, IVR (~$750K/yr avoidance) all benefit through interface consolidation • Enterprise Customer System architecture - ~$3M/2009 – 10 avoidance • Customer data hub allows consolidated customer business intelligence (retail marketing, call center agent operations). • Financial analysts spend less time on data verification and more time on data analysis due to improved data quality • Financial report run times greatly reduced. Some taking hours before now run in minutes. • Supply chain and work management report designers need not understand complex Maximo (eMax) data structures, only the hub structures which are designed specifically for business intelligence and analytics

18. Challenges Remain

19. Customer Facilities T&D Facilities Data Hub Maturity Products & Services are located at Customers transport products to are delivered to are sold to produce Duke EnergyFacilities Materials* performs work at Workforce maintained at produce revenue stored at performs work at compensate can become fund maintained at Nuclear Facilities F/H Facilities Finances Equipment* Opportunity Built thru 2010 * Materials and Equipment includes Nuclear

20. QUESTIONS?