News Release
Oct. 02, 1997

DUKESOLUTIONS TO IMPLEMENT NATIONAL CONTRACT

CHARLOTTE, N.C., Oct. 2, 1997 -- DukeSolutions, the new integrated energy services subsidiary of Duke Energy, will execute a second government contract to improve the energy efficiency of federal and state facilities across the nation. The contract is valued up to $150 million.

This newly awarded contract covers 46 states, the District of Columbia and Puerto Rico. A previous contract worth up to $100 million covers facilities in North Carolina, South Carolina, Virginia and Georgia. With the new contract, DukeSolutions takes its place in an elite group of 11 companies that will make energy-saving improvements at all types of federal or state facilities from military bases to courthouses to schools to office complexes.

"We’re going to evaluate the efficiency of everything that consumes energy or contributes to the consumption of energy," said Bob Payne, Director of Federal Energy Services at DukeSolutions.

DukeSolutions’ proposal is based on an alliance with EMCOR Group Inc. (Nasdaq: EMCG), the largest mechanical and electrical construction and facilities services company in the country. By using EMCOR’s nationwide network of construction and maintenance operations, DukeSolutions expects to bring savings measures on-line quickly and consistently.

"EMCOR is a strong resource for us," Payne said. "It has an established network of operations that will enable us to implement savings projects promptly and provide maintenance to any facility across the country. The alliance assures a consistent approach based on EMCOR’s expertise in construction and maintenance."

The contracts are some of the first awarded in the wake of the Energy Policy Act of 1992, which requires that federal facilities cut energy consumption by 30 percent by 2005.

"These broad-scope contracts are ideally matched to DukeSolutions’ abilities," said Charlie Watkins, DukeSolutions, President. "They drive our commitment to national leadership in the emerging integrated energy services industry. We’re delighted to serve the government under this innovative and exciting contract."

The government contracts will be administered by the U.S. Army Engineering & Support Center in Huntsville, Ala.

"The Huntsville Engineering & Support Center is a highly effective facilitator. They will do whatever it takes to help these agencies meet the required 30-percent reduction," Payne said.

Originally awarded to Duke Engineering & Services Inc., the contracts will be executed by DukeSolutions, the engineering company’s sister firm created to provide full scope energy efficiency technology and supply services. DukeSolutions will submit proposals for these types of projects going forward.

DukeSolutions is a wholly owned subsidiary of Duke Energy that provides integrated, custom solutions to reduce costs and improve energy efficiency for industrial, commercial, governmental and institutional customers.

Duke Energy Corp. (NYSE: DUK) is 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-enerqy.com.

Contact: Mary Alice Rogers
Phone: 704-373-6574
24 Hour Phone: 704-594-0681
Email: media_relations@duke-energy.com