News Release
June 04, 1998

DEPARTMENT OF THE ARMY AWARDS CONTRACT TO DUKESOLUTIONS

CHARLOTTE, N.C., June 4, 1998 -- The Department of the Army has selected DukeSolutions, a subsidiary of Duke Energy, to participate in a contract to make energy-saving improvements at Army medical facilities in eight states.

The company shares the contract, worth up to $20 million, with another energy company. The two contractors will bid for the opportunity to perform Energy Savings Performance Contract (ESPC) projects at hospitals and clinics in Oklahoma, Missouri, Colorado, Kansas, Arizona, Louisiana, New Mexico and California. DukeSolutions was one of 74 contractors asked to submit a proposal for the award.

"Our energy cost reduction plans will be designed to insure patient care and maintain or improve quality of life standards in the facilities," said Charlie Watkins, president of DukeSolutions.

A federal energy savings program allows government facilities to make energy efficiency upgrades at no cost to taxpayers. Energy companies finance the upgrades and are reimbursed through their federal clients’ cost savings. The programs are a way to help facilities meet President Clinton’s directive to cut energy usage in government facilities 30 percent by 2005.

This contract comes on the heels of recent DukeSolutions agreements with Department of Defense and the Department of Energy. These awards also give the subsidiary the opportunity to bid for ESPC work at federal facilities across the country.

DukeSolutions, a wholly owned subsidiary of Duke Energy, provides integrated energy solutions that reduce costs and improve energy efficiency for industrial, commercial, governmental, institutional and wholesale customers. DukeSolutions offers customers a full range of energy services including efficiency and productivity, supply, financing, information management and other related energy services.

Duke Energy Corp. (NYSE: DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to about 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: Mary Alice Rogers
Phone: (704) 382-8333
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com