News Release
April 02, 1998

PUGET SOUND ENERGY AND DUKE ENERGY TO COORDINATE ENERGY TRADING ACTIVITIES

Puget Sound Energy (NYSE:PSD) of Bellevue, Wash. and Duke Energy Trading and Marketing (DETM) of Houston signed an agreement late yesterday (April 1, 1998) to coordinate their energy-marketing and trading activities in 14 western states and British Columbia.

Puget Sound Energy (NYSE:PSD) of Bellevue, Wash. and Duke Energy Trading and Marketing (DETM) of Houston signed an agreement late yesterday (April 1, 1998) to coordinate their energy-marketing and trading activities in 14 western states and British Columbia.

"This evolution of our existing relationship with Duke is a critical step that aligns Puget Sound Energy’s power resource operations, trading and marketing activities with those of one of the nation’s largest marketers of energy, and with the strategic direction of the industry," said William A. Gaines, vice president of energy supply for Puget Sound Energy. "The enhanced value created by this coordination of Puget’s power resources with the increased scale, scope and operating efficiency of Duke’s western trading and marketing business will be shared equitably between the parties. Ultimately, customers stand to benefit through increased choice and efficiency as the industry evolves."

"The enhanced relationship with Puget significantly strengthens Duke Energy Trading and Marketing’s power marketing and trading business in the Western Systems Coordinating Council," said Brad Karp, DETM executive vice president of commercial operations. "Puget’s power-asset position in energy trading and its expertise in this region will bolster our operations. The new capabilities created by this expanded relationship effectively integrates with the power plants Duke Energy is purchasing from Pacific Gas & Electric."

Through the expanded relationship with DETM, a unit of Duke Energy Corp. (NYSE:DUK), Puget Sound Energy now participates in an energy-trading business that will be many times the size of its current trading operations. Puget Sound Energy sold 28 million megawatt hours of power in 1997, and its revenues from off-system power sales and trading doubled from 1996 to more than $134 million. Several Puget Sound Energy sold 28 million megawatt hours of power in 1997. Its 1997 off-system energy sales totaled $134 million.

Puget Sound Energy employees will relocate from the company’s Bellevue, Wash. headquarters to Salt Lake City, where all of the coordinated energy trading will be handled.

Contact: Mary Alice Rogers
Phone: 704 382-8333
24 Hour Phone: 704 382-8333
Email: media_relations@duke-energy.com