News Release
Aug. 28, 1997

DUKE POWER CO. AND NORTH CAROLINA HOUSING FINANCE AGENCY ANNOUNCE PARTNERSHIP

CHARLOTTE -- Duke Power Co. and the North Carolina Housing Finance Agency today announced a pilot program to assist low-income families located in Duke Power’s service territory for energy upgrades to their homes.

The North Carolina Housing Finance Agency will serve as the administrative agent and handle the initial $500,000 provided by Duke in the form of low interest loans for up to $8,000 for qualifying homeowners to purchase high efficiency heat pumps and insulating materials.

"We are excited that the results of this partnership will be improvements in the conservation of energy, increased comfort levels and the reduction of electric utility bills," said Robert Allen, District Manager, Duke Power Co. "The expertise and track record of the Housing Finance Agency give us great confidence that the program will be successful in providing this much needed assistance."

The program’s loan funds will be managed by the Housing Finance Agency and must be matched by additional funds that are available for non-energy related rehabilitation, such as HOME and the state Housing Trust Fund which are managed by the Agency, and the Community Development Block Grant Program. Duke Power Co. will evaluate the program’s success for consideration of a long term revolving loan fund.

The program will be managed by the North Carolina Housing Finance Agency and implemented through local agencies who are currently involved with single family rehabilitation programs. Duke Power’s funds may only be used for energy improvements and will provide a match for general rehabilitation loan funds already available to these customers.

The North Carolina Housing Finance Agency is a self-supporting public agency created by the General Assembly to improve the supply of the affordable housing for moderate and low-income households. Using federal incentives and the state Housing Trust Fund, it has attracted more than $3 billion of private investment into the production and rehabilitation of affordable housing since 1973.

Duke Power is a company of Duke Energy Corporation (NYSE.DUK) - a global energy company with more than $20 billion in assets. Duke Energy companies provide electric service to about 2 million customers; operate pipelines that deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally the companies develop, own and operate energy facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Contact: Guynn Savage
Phone: 704-382-8350
24 Hour Phone: 704-594-0681
Email: ghsavage@duke-energy.com