News Release
Sept. 09, 1997

DUKE POWER: VOLUNTARY PROGRAMS AND LAYOFFS TO TRIM WORK FORCE BY 550

CHARLOTTE, N.C. -- Officials of Duke Power, the electric operations unit of Duke Energy Corp., announced today that the work force in three departments will be reduced by about 550 employees over the next several months.

The reductions will be achieved through a combination of voluntary programs and layoffs.

"Work on several major electric generation maintenance projects has ended or will soon be complete," said William Coley, president of Duke Power. "These are good employees, and we appreciate their contributions. However, these reductions are necessary as Duke’s generation maintenance work is reduced and as we position ourselves for competition in electric generation."

The reductions will affect employees in the electric system support department, the nuclear generation department and the power generation department. Total employment in the three departments is 7,500.

The electric system support department provides maintenance support for the generation departments of the company; the nuclear generation department operates Oconee, McGuire and Catawba nuclear stations; and the power generation department operates Duke’s fossil and hydroelectric generation facilities. No reductions are planned in Duke Power’s customer service area -- delivering electricity and serving the needs of Duke’s 1.8 million customers.

"Duke Power continues to be one of the strongest electric utilities in the nation," said Coley. "However, the electric industry is experiencing major changes, and every utility must look for ways to be competitive. Our success depends on delivering high-quality service at a competitive price."

Duke’s electric operations unit presently employs 12,000 in North Carolina and South Carolina. Duke Energy employs a total of 22,000 worldwide. Other business units of Duke Energy are increasing employment. An additional 180 employees of Electric System Support are expected to transfer to Duke Engineering & Services as part of its growth plans.

A severance package will be available to affected employees, including services to help employees transition from the company. Job placement services, some educational reimbursement and counseling through the company’s employee assistance program will also be available. Some craft employees in these departments will have the opportunity to volunteer for layoff. The volunteer opportunity is limited to areas where the company has a large number of employees with similar skills.

This work force reduction is not related to the previously announced 350 corporate and support staff reductions associated with the merger of Duke Power and Houston-based PanEnergy Corp -- which formed Duke Energy in June.

Duke Power is a business group of Duke Energy Corporation (NYSE:DUK). Duke Energy is a global energy company with more than $20 billion in assets. Duke Energy companies provide electric service to approximately 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: Randy Wheeless
Phone: 704-382-8379
24 Hour Phone: 704-594-0681
Email: crwheele@duke-energy.com