News Release
Aug. 13, 1998

MARITIMES & NORTHEAST PIPELINE APPLIES TO SERVE GORHAM MAINE POWER PLANT

Boston -- Maritimes & Northeast Pipeline, L.L.C. (Maritimes & Northeast) today filed an application with the Federal Energy Regulatory Commission (FERC) to build and operate a .49 mile, 16-inch diameter lateral pipeline to provide natural gas service to Gorham Energy Limited Partnership’s proposed 800 megawatt gas-fired electric generating plant in Gorham, Maine.

This agreement to build the lateral is another indication of the market confidence in the Maritimes & Northeast project and the positive benefits that an expanded natural gas infrastructure brings to Maine," said Tom O’Connor, president of M & N Management Company, managing member of Maritimes & Northeast Pipeline, L.L.C.

Maritimes & Northeast is the transportation facility for the Sable Offshore Energy Project, a new natural gas basin located offshore Nova Scotia which will begin production in November 1999. The project consists of approximately 650 miles of 24-inch and 30-inch diameter mainline pipe from the landfall at Goldboro, Nova Scotia to Dracut, Massachusetts.

"We are pleased to have an application on our behalf at the forefront of the development of the Maritimes & Northeast Pipeline," stated Bob Kasle, director of commercial operations at American National Power, Inc., owner of the proposed Gorham facility. "Maritimes & Northeast has opened up a great opportunity for economic growth and we look forward to efficiently serving the energy needs of this geographic region with our proposed power generation station in Gorham using clean burning natural gas as the primary fuel."

Phase II of Maritimes & Northeast from Westbrook, Maine to the U.S. - Canadian border recently received a certificate of public convenience and necessity from FERC. The lateral proposed to serve the generating facility in Gorham will interconnect with the 30-inch diameter pipeline jointly owned by Maritimes & Northeast and Portland Natural Gas Transmission System. The Joint Facilities from Westbrook, Maine to Haverhill, Massachusetts previously received federal approval and are currently under construction.

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.duke-energy.com.

Headquartered in Houston, Texas, American National Power develops, acquires, owns and operates power generating facilities in the Americas. The Company has ownership interests in six U.S. facilities with a net ownership position of 680 megawatts of generating capacity.

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