News Release
Aug. 03, 1998

MARITIMES & NORTHEAST PIPELINE RECEIVES FINAL FEDERAL APPROVAL FOR PHASE II

BOSTON - Maritimes & Northeast Pipeline, L.L.C. today received a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (FERC) to build, own and operate Phase II of the natural gas pipeline project. Phase II of the project includes approximately 200 miles of 24-inch and 30-inch diameter mainline pipeline traversing southern, central and eastern Maine from Westbrook to Baileyville as well as 147 miles of proposed laterals and spurs to serve Maine industrials and electric generators.

When fully operational, the Maritimes & Northeast Pipeline will transport more than 530,000 MMBtu/day of natural gas from the Sable Offshore Energy Project to markets in Atlantic Canada and the Northeastern United States.

"We are extremely pleased that FERC has given timely approval for Phase II of the Maritimes & Northeast Pipeline," said George Mazanec, chairman of the Management Committee of Maritimes & Northeast Pipeline, L.L.C. "We appreciate the tremendous support we have received in Maine and throughout New England. Maritimes & Northeast will continue to work hard to ensure that Sable natural gas reaches markets in the northeast by November of 1999.".

In June FERC issued a Final Environmental Impact Statement that studied the potential environmental effects of the construction and operation of this portion of the proposed project. FERC staff concluded that approval of the proposed project would have limited adverse environmental impact using appropriate mitigation measures.

"3Maritimes & Northeast has worked closely with individuals, organizations and state and local agencies in developing this project. We are appreciative for their efforts and input,". stated Tom O’Connor, president of M&N Management Company, managing member of Maritimes & Northeast Pipeline, L.L.C. "In issuing this certificate, FERC recognizes the ability of Maritimes & Northeast to construct and operate this pipeline in a safe and environmentally responsible manner and we will do so."

Canada’s National Energy Board approved applications from the Sable Offshore Energy Project and the Canadian portion of the Maritimes & Northeast Pipeline Project in December 1997. Drilling in the Sable fields began in early June.

The Maritimes & Northeast Pipeline is owned by affiliates of Duke Energy Corporation (37.5%), Westcoast Energy Inc. (37.5%) and Mobil Corporation (25%). Duke Energy, through its affiliates, is responsible for the overall development of the $1 billion, 800-mile Maritimes & Northeast Pipeline and directly responsible for the U.S. portion of the project. Westcoast Energy Inc., a major energy company located in Vancouver, British Columbia, is responsible for the development of the Canadian pipeline portion of the project. Contact Maritimes & Northeast Pipeline on the World Wide Web at http://www.mnp-usa.com.

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $24 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.dukeenergy.com.

Contact: Brian Prenda
Phone: (617) 560-1450
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com