News Release
Aug. 17, 1998

DUKE ENERGY TRADING AND MARKETING TO PROVIDE GAS SUPPLY FOR HAMILTON, OHIO

HOUSTON -- Duke Energy Trading and Marketing L.L.C. (DETM) has signed an agreement with the City of Hamilton, Ohio, to provide natural gas supply service beginning November 1.

Under the terms of the agreement, DETM will be responsible for providing all supply, transportation and storage services and will employ its financial services capabilities to provide price certainty for the city. Under the agreement, the city will see substantial savings on gas acquisition costs despite recent increasing commodity cost trends.

Dick Fleming, director of public utilities for Hamilton said, "DETM was the only supplier to fully meet the city’s requirements. DETM’s ability to provide a fixed price, coupled with firm service reliability in a simple, straightforward package, was extremely beneficial. Overall, this agreement provides cost savings, price stability and purchasing efficiency that could not be obtained through alternate approaches."

"With a peak day of 48,000 million British thermal units under this contract, DETM views this agreement as a continuation of our innovative, wholesale energy marketing partnerships," said Mark Wetzel, vice president of energy marketing. "City representatives were able to manage an array of transportation, supply, commodity, legal and financial services issues to develop a new approach for gas supply acquisition."

DETM, one of the nation’s largest energy marketers, is the wholesale energy trading and marketing arm of Duke Energy and serves as the exclusive marketer for the North American natural gas production of Mobil Corporation.

Duke Energy (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.

Contact: John P. Bartlett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com