News Release
Dec. 21, 1998

DUKE ENERGY TRADING AND MARKETING PURCHASES NP ENERGY

HOUSTON — Duke Energy Trading and Marketing, L.L.C., has reached an agreement to purchase NP Energy, an electric trading and marketing company based in Louisville, Ky. The purchase price was not disclosed.

Duke Energy Trading and Marketing will acquire NP Energy’s risk management and project development efforts. These projects include marketing agreements with several power cooperatives, a planned 325-megawatt waste coal repowering project with Ohio National Energy and a planned 650-megawatt merchant plant in Kingman, Ariz.

The acquisition of NP Energy provides Duke Energy Trading and Marketing with attractive opportunities in several strategic regions for the company. "Adding NP Energy’s assets to our portfolio of marketing agreements will help build our business position in the U.S. West and Midwest because it increases our assets in these key areas," said Brad Karp, Duke Energy Trading and Marketing president.

Closing of the sale is expected by the end of the first quarter 1999 pending approval by the Federal Energy Regulatory Commission and is subject to the Hart-Scott-Rodino Act.

Within its first year of operation, NP Energy was ranked 1 6~ among all power marketers nationwide. The company was founded in early 1997.

Duke Energy Trading and Marketing, 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, which owns 40% interest in Duke Energy Trading and Marketing. NP Energy officials said they were attracted to Duke Energy’s strength and reputation in agreeing to this deal.

"Scale and considerable credit backing have become critically important in the energy marketing industry, so Duke Energy’s resources and their track record for innovation make this a logical step for both parties," said Ed Casey, NP Energy co-founder and chief executive officer. "We are very proud of the success of this venture and the performance of our employees, but it was our view that it would take greater resources and depth to achieve the growth necessary to remain a leader in the business."

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, North Carolina, the company reaches into more than 50 countries producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy provides electric service to approximately 2 million customers in North Carolina and South Carolina, operates interstate pipelines that deliver natural gas to various regions of the country, and is a leading marketer of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at: www.duke-energy.com.

Contact: Liz Johnson
Phone: 713-627-5011
24 Hour Phone: 704-594-0681
Email: media_relations@duke-energy.com