L E T T E R F R O M T H E C H A I R M A N http://www.duke-energy.com/pdfs/Duke-Energy-http://www.duke-energy.com/environment/sustainability/2007-2008-sustainability-report.asp http://www.duke-energy.com/environment/sustainability/2007-2008-sustainability-report.asp http://www.duke-energy.com/environment/sustainability/sar07-08/smarter-utility-services.asp http://www.duke-energy.com/environment/sustainability/sar07-08/smarter-utility-services.asp 6 Smart grid technology represents the most significant upgrade to our distribution system since electricity was first harnessed, and we think it will lead to capabilities and functions that are unimaginable today.