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Item 2. Properties.

FRANCHISED ELECTRIC

As of December 31, 2003, Franchised Electric operated three nuclear generating stations with a combined net capacity of 5,020 MW (including a 12.5% ownership in the Catawba Nuclear Station), eight coal-fired stations with a combined capacity of 7,699 MW, 31 hydroelectric stations (including two pumped-storage facilities) with a combined capacity of 2,806 MW and seven combustion turbine stations with a combined capacity of 2,424 MW. All of the stations are located in North Carolina or South Carolina.

Name	Gross MW	Net MW	Fuel	Location	Ownership Interest (percentage)
Oconee	2,538	2,538	Nuclear	SC	100	%
Catawba	2,258	282	Nuclear	SC	12.5
Belews Creek	2,240	2,240	Coal	NC	100
McGuire	2,200	2,200	Nuclear	NC	100
Marshall	2,090	2,090	Coal	NC	100
Lincoln CT	1,267	1,267	Natural gas/Fuel Oil	NC	100
Allen	1,140	1,140	Coal	NC	100
Bad Creek	1,065	1,065	Hydro	SC	100
Cliffside	760	760	Coal	NC	100
Jocassee	610	610	Hydro	SC	100
Riverbend	454	454	Coal	NC	100
Lee	370	370	Coal	SC	100
Buck	369	369	Coal	NC	100
Cowans Ford	325	325	Hydro	NC	100
Mill Creek CT	573	573	Natural gas/Fuel Oil	SC	100
Dan River	276	276	Coal	NC	100
Buzzard Roost CT	196	196	Natural gas/Fuel Oil	SC	100
Keowee	160	160	Hydro	SC	100
Riverbend CT	120	120	Natural gas/Fuel Oil	NC	100
Buck CT	93	93	Natural gas/Fuel Oil	NC	100
Lee CT	90	90	Natural gas/Fuel Oil	SC	100
Dan River CT	85	85	Natural gas/Fuel Oil	NC	100
Other small hydro (27 plants)	646	646	Hydro	NC/SC	100
Total	19,925	17,949

In addition, Franchised Electric owned, as of December 31, 2003, approximately 13,000 conductor miles of electric transmission lines, including 600 miles of 525 kilovolts, 2,600 miles of 230 kilovolts, 6,600 miles of 100 to 161 kilovolts, and 3,200 miles of 13 to 66 kilovolts. Franchised Electric also owned approximately 92,600 conductor miles of electric distribution lines, including 49,300 miles of rural overhead lines, 16,500 miles of urban overhead lines, 14,300 miles of rural underground lines and 12,500 miles of urban underground lines. As of December 31, 2003, the electric transmission and distribution systems had approximately 1,600 substations.

Substantially all of Franchised Electric's electric plant in service is mortgaged under the indenture relating to Duke Energy's various series of First and Refunding Mortgage Bonds.

(For a map showing Franchised Electric's properties, see "Business—Franchised Electric" earlier in this section.)

NATURAL GAS TRANSMISSION

Texas Eastern's gas transmission system extends approximately 1,700 miles from producing fields in the Gulf Coast region of Texas and Louisiana to Ohio, Pennsylvania, New Jersey and New York. It consists of two parallel systems, one with three large-diameter parallel pipelines and the other with one to three large-diameter pipelines. Texas Eastern's onshore system consists of approximately 8,600 miles of pipeline and 73 compressor stations.

Texas Eastern also owns and operates two offshore Louisiana pipeline systems, which extend approximately 100 miles into the Gulf of Mexico and include approximately 500 miles of Texas Eastern's pipeline system.

Algonquin Gas Transmission Company's (Algonquin) transmission system connects with Texas Eastern's facilities in New Jersey, and extends approximately 250 miles through New Jersey, New York, Connecticut, Rhode Island and Massachusetts. The system consists of approximately 1,100 miles of pipeline with six compressor stations. Algonquin is a wholly owned subsidiary of Duke Energy.

ETNG's transmission system crosses Texas Eastern's system at two points in Tennessee and consists of two mainline systems totaling approximately 1,400 miles of pipeline in Tennessee, Georgia, North Carolina and Virginia, with 18 compressor stations.

Maritimes and Northeast Pipeline's transmission system (approximately 75% owned by Duke Energy) extends approximately 900 miles from producing fields in Nova Scotia through New Brunswick, Maine, New Hampshire and Massachusetts, connecting to Algonquin in Beverly, Massachusetts. It has two compressor stations on the system.

The British Columbia Pipeline System consists of two divisions. The field services division operates more than 1,840 miles of gathering pipelines in British Columbia, Alberta, the Yukon Territory and the Northwest Territories, as well as 22 field compressor stations; four gas processing plants located in British Columbia near Fort Nelson, Taylor, Chetwynd and in the Sikanni area northwest of Fort St. John, and three elemental sulphur recovery plants located at Fort Nelson, Taylor and Chetwynd. Total contractible capacity of approximately 1.8 Bcf of residue gas per day. The pipeline division has approximately 1,740 miles of transmission pipelines in British Columbia and Alberta, as well as 18 mainline compressor stations.

Union Gas owns and operates natural gas transmission, distribution and storage facilities in Ontario. Union Gas distributes natural gas to customers in northern, southwestern and eastern Ontario and provides storage, transportation and related services to utilities and other industry participants in the gas markets of Ontario, Quebec and the Central and Eastern U.S. Union Gas' underground natural gas storage facilities have a working capacity of approximately 150 Bcf in 20 underground facilities located in depleted gas fields. Its transmission system consists of approximately 3,000 miles of pipeline and six mainline compressor stations. Union Gas' distribution system consists of approximately 21,000 miles of distribution.

MHP owns and operates two natural gas storage facilities: Moss Bluff and Egan. The Moss Bluff facility consists of three storage caverns located in Liberty and Chambers counties near Houston, Texas and has access to five pipelines. The Egan facility consists of three storage caverns located in Acadia Parish in the south central part of Louisiana and has access to seven pipeline facilities.

(For a map showing natural gas transmission and storage properties and additional information on Natural Gas Transmission's properties, see "Business—Natural Gas Transmission" earlier in this section.)

FIELD SERVICES

(For information and a map showing Field Services' properties, see "Business—Field Services" earlier in this section.)

DUKE ENERGY NORTH AMERICA

The following table provides information about DENA's generation portfolio in operation as of December 31, 2003.

Name	Gross MW	Net MW	Plant Type	Primary Fuel	Location	Approximate Ownership Interest (percentage)
Moss Landing	2,538	2,538	Combined Cycle	Natural Gas	CA	100	%
Hanging Rock	1,240	1,240	Combined Cycle	Natural Gas	OH	100
Murray (a)	1,240	1,240	Combined Cycle	Natural Gas	GA	100
Morro Bay	1,002	1,002	Combined Cycle	Natural Gas	CA	100
South Bay	700	700	Combined Cycle	Natural Gas	CA	100
Enterprise Energy(a)	640	640	Simple Cycle	Natural Gas	MS	100
Lee	640	640	Simple Cycle	Natural Gas	IL	100
Marshall(a)	640	640	Simple Cycle	Natural Gas	KY	100
Sandersville(a)	640	640	Simple Cycle	Natural Gas	GA	100
Southhaven(a)	640	640	Simple Cycle	Natural Gas	MS	100
Vermillion	640	640	Simple Cycle	Natural Gas	IN	100
Fayette	620	620	Combined Cycle	Natural Gas	PA	100
Hot Springs (a)	620	620	Combined Cycle	Natural Gas	AR	100
Washington	620	620	Combined Cycle	Natural Gas	OH	100
Griffith Energy	600	300	Combined Cycle	Natural Gas	AZ	50
Arlington Valley	570	570	Combined Cycle	Natural Gas	AZ	100
Hinds(a)	520	520	Combined Cycle	Natural Gas	MS	100
Maine Independence	520	520	Combined Cycle	Natural Gas	ME	100
St. Francis	500	250	Combined Cycle	Natural Gas	MO	50
Bridgeport	490	326	Combined Cycle	Natural Gas	CT	67
New AlbanyEnergy(a)	385	385	Simple Cycle	Natural Gas	MS	100
Bayside	260	195	Combined Cycle	Natural Gas	NB	75
Oakland	165	165	Simple Cycle	Oil	CA	100
McMahon	117	59	Cogen	Natural Gas	BC	50
Ft. Francis	110	110	Cogen	Natural Gas	ON	100
Total	16,657	15,820

(a) Southeast region

(For a map showing DENA's properties, see "Business—Duke Energy North America" earlier in this section.)

INTERNATIONAL ENERGY

The following table provides information about International Energy's generation portfolio in operation as of December 31, 2003

Name	Gross MW	Net MW	Fuel	Location	Approximate Ownership Interest (percentage)
Paranapanema	2,307	2,185	Hydro	Brazil	95	%
Hidroelectrica Cerros Colorados	576	523	Hydro/Natural gas	Argentina	91
Egenor	540	538	Hydro/Diesel/Oil	Peru	100
Acajutla	324	293	Oil/Diesel	El Salvador	90
Electroquil	180	130	Diesel	Ecuador	72
DEI Guatemala y Cia	328	328	Oil/Diesel	Guatemala	100
Aquaytia	160	61	Natural Gas	Peru	38
Empressa Electrica Corani	126	63	Hydro	Bolivia	50
Total(a)	4,541	4,121

(a)   Excludes discontinued operations

(For additional information and a map showing International Energy's properties, see "Business—International Energy" earlier in this section.)

OTHER OPERATIONS

(For information regarding Other Operations' properties, see "Business—Other Operations" earlier in this section.)

OTHER

None of the properties used in Duke Energy's other business activities are considered material to Duke Energy's operations as a whole.