News Release
Aug. 13, 1998

DUKE ENERGY POWER SERVICES’ BRIDGEPORT FACILITY PRODUCING ELECTRICITY FOR NEW ENGLAND

Bridgeport, CT — Announced, licensed and built in just over one year, Bridgeport Energy has begun producing electricity for the residents of New England.

An affiliate of Duke Energy Corporation, Duke Energy Power Services (DEPS), announced Bridgeport Energy in June 1997. Construction began in October 1997. Through an accelerated licensing and construction program, the plant will initially produce 340 megawatts of power to meet the critical demand for electricity in New England.

"This is the first merchant power plant completed by DEPS." said Paula Rosput, president, DEPS. "It will serve as an excellent example of what can happen when industry, governments and communities work together. We know the demand for electricity in New England is particularly urgent this year. The rapid pace at which Bridgeport Energy has been brought into service demonstrates that deregulation in the wholesale electricity market can work in providing reliable and reasonably priced power. The electricity Bridgeport Energy delivers will play a key role in meeting this demand, helping prevent significant price fluctuations and will do so as one of the cleanest fossil-fueled generating plants in the country."

The Bridgeport plant features the most modem and efficient equipment available in the world today. With its completion, The United Illuminating Company (UI), a minority owner in the plant, has shut down its Bridgeport Harbor Station Unit 1 resulting in a 75 percent decrease in total annual air emissions -- even though Bridgeport Energy will be producing six times more electricity than Unit 1.

The completion of the initial phase of the project will be followed by Phase II, which will provide an additional 180 megawatts by mid-1999. The total plant output will be 520 megawatts.

Bridgeport Energy, LLC, based in Bridgeport, Conn. is an affiliate of Duke Energy Corporation of Charlotte, N.C. Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $24 billion in assets. On July 1, Duke completed the acquisition of 2,650 megawatts of power generation in California, which it also runs as merchant generation. 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.

The United Illuminating Company is a New Haven, Conn.-based electric utility and energy services company that serves 312,000 customers in 17 towns in the Greater Bridgeport and Greater New Haven areas. UI is traded on the New York Stock Exchange under the symbol UIL. Its World Wide Web address is http://www.uinet.com.

Contact: Bryant Kinney
Phone: (704) 382-2208
24 Hour Phone: (704) 382-8333
Email: jbkinney@duke-energy.com