News Release
April 15, 1998

DUKE ENERGY JOINS ISO STUDY

CHARLOTTE, N.C. — Duke Energy Corporation has accepted an invitation to participate in a regional transmission study being conducted by members of the proposed "Alliance" group of electric utilities, company officials said today.

The study addresses the potential for bringing the Alliance members’ transmission systems under an independent system operator (ISO) or other alternative transmission entity. The Alliance member utilities began the study in December 1997 and expect to complete it in June 1998.

"Properly structured, ISOs can be important initial steps in a restructured industry," Jim Hinton, Duke Energy’s senior vice president — electric transmission, said. "They can help maintain the security and reliability of interconnected transmission systems in a deregulated environment and support efficient use of combined transmission resources.

Duke will join Consumers Energy, FirstEnergy Corporation, Virginia Electric and Power Company and American Electric Power Company in this second phase of the Alliance study.

"Given the geography of the Alliance, we think it is a logical step for us to be part of these discussions," he said.

Duke Energy Corporation (NYSE: DUK) 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: Joe Maher
Phone: (704) 382-8323
24 Hour Phone: (704) 382-8333
Email: jmaher@duke-energy.com