News Release
Jan. 13, 1998

DUKE ENERGY JOINS ALLIANCE PIPELINE PROJECT

HOUSTON - Subsidiaries of Duke Energy Corporation have acquired a 9.8 percent ownership position in the Alliance Pipeline partnerships for an undisclosed amount.

A Duke Energy subsidiary also contracted for 67.25 million cubic feet per day of capacity.

The Alliance Pipeline system is designed to transport natural gas from Western Canada to the Chicago-area market center for distribution throughout North America. The pipeline, scheduled for start-up in late 1999, is being developed by limited partnerships comprised of gas producers and marketing and pipeline companies.

"Alliance provides Duke Energy with additional direct access to a major producing region and an uninterrupted pathway from western Canada to the East Coast and into southern Ontario using Duke Energy’s existing pipeline systems," said Steve Roverud, president of Duke Energy’s Midwest Pipeline Group. "Duke’s position in Alliance fits hand-in-glove with our previously announced plan to move gas from the Chicago area east."

"Duke Energy has become a major player in the transportation of Canadian natural gas through its participation in Alliance and its development of the Maritimes & Northeast Pipeline, which will move gas from the Sable area of offshore Nova Scotia into the Maritime Provinces and New England," Roverud said. "Both of these initiatives complement the company’s long-standing participation in the Northern Border Pipeline."

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $20 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 Barnett
Phone: 713 627-4072
24 Hour Phone: 704 594-0681
Email: media_relations@duke-energy.com