News Release
April 29, 1998

NATURAL GAS COMPANIES ANNOUNCE PLANS FOR LIGHTHOUSE PIPELINE SYSTEM

HOUSTON - Iroquois Gas Transmission System, Duke Energy and Williams have announced plans to develop a natural gas pipeline to serve markets in New York and Connecticut.

The proposed Lighthouse Pipeline System is designed to extend under the Long Island Sound to transport U.S. and Canadian natural gas from Williams’ Transco pipeline, Duke’s Algonquin and Texas Eastern pipelines and the Iroquois pipeline system to southern Connecticut.

The new pipeline system, proposed to have an initial capacity of 350,000 dekatherms per day (Dth/d), will primarily supply natural gas to electric generating facilities built along its route in Southern Connecticut and facilitate the development of low-cost power generation on Long Island.

"This project adds new dimensions to Iroquois’ pipeline network and provides important new opportunities for our customers," Craig Frew, president of the Iroquois Pipeline Operating Company, observed. "The Lighthouse Pipeline will create new competitive and diversified markets for U.S. and Canadian supplies of natural gas in a region already engaged in growth and change."

"This innovative partnership gives Transco a new opportunity to serve the thriving New England market," said Cuba Wadlington Jr., senior vice president and general manager, Williams’ Transco pipeline system.

"The creation of Lighthouse complements the recently announced Cross Bay Pipeline, which has been designed to provide up to 700,000 dekatherms per day to the New York City market. Together, we believe these projects exhibit our unwavering commitment to satisfy natural gas demand in this market area."

"Lighthouse builds on a strategy of market-based projects that can take advantage of multiple upstream options," said Bobby Evans, president of Duke’s Texas Eastern and Algonquin systems. "This brings increased efficiencies to the interstate grid coupled with the strength of the New York market center for liquidity."

Lighthouse will be timed to meet market needs and is expected to be in service by 2000 to 2001. The facilities will consist of approximately 35 miles of new 16-inch diameter pipe in southern Long Island, and approximately 60 miles of new 24-inch diameter pipe in southern Connecticut. The Long Island segment will extend from a connection with the recently announced Cross Bay Pipeline at Long Beach, N.Y., to a connection with Iroquois at South Commack, N.Y. The Connecticut segment will originate at an interconnection with Iroquois near Milford and extend to the Millstone area near New London. Delivery locations in the Millstone area can be specified by shippers during the open season process. The configuration of new and existing facilities offers access to diverse options to meet market needs.

The approximate cost of the project is $240 million. Duke, Williams and Iroquois each plan to own one-third of the new pipeline.

A 60-day open season will be held in the early summer to determine the level of market interest. For more information about the project, contact Joan Strub at Williams 713/215-2904, Patrick Gibson at Duke 617/560-1454 or Herb Rakebrand at Iroquois 203/925-7276.

Iroquois Gas Transmission System is a 375-mile interstate natural gas pipeline owned by a partnership of nine U.S. and Canadian energy companies. Iroquois Pipeline Operating Company is the agent for, and operator of, the Iroquois Gas Transmission System. Iroquois Pipeline, based in Shelton, CT., began operation in January 1992.

Duke Energy (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 facilities and provide engineering, management, operating and environmental services. Contact Duke Energy on the World Wide Web at http://www.duke-energy.com.

Williams, through its subsidiaries, is the nation’s largest volume transporter of natural gas and provides a full range of traditional and leading edge energy and communications services. (NYSE:WMB)

Map available upon request

Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the companies believe any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Additional information about issues that could lead to material changes in performance is contained in the companies’ annual reports on Form 10K, which is filed with the Securities and Exchange Commission.

Contact: John Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Chris Stockton (Williams)
Phone: (713) 215-2010
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Anita Flanagan (Iroquois)
Phone: (203) 925-7200
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com