News Release
May 01, 1998

DUKE POWER MAKES EARLY REDUCTIONS OF AIR EMISSIONS

CHARLOTTE, N.C., May 1, 1998 -- It’s only 1998 and Duke Power’s coal-fired stations have already reduced emissions to levels below those required by the year 2000.

Based on first quarter 1998 results, Duke Power remains on track with recent reports to the Environmental Protection Agency (EPA) documenting compliance progress with the 1990 Clean Air Act Amendments (CAAA). Duke Power showed an 8.4 percent drop in emission rates of sulfur dioxide from 1990, CAAA’s benchmark year, to 1997. During the same period, emission rates of nitrogen oxide (NOX) declined 18 percent.

"We’re ahead of schedule and focused on efficiency," said Ted C. McMeekin, Duke Power’s senior vice president - power generation. "Our emissions naturally reflect that we are among the nation’s largest electricity producers. But the diversity offered by our mix of coal, nuclear and hydroelectric power keeps air emissions from the Duke Power generation system below national averages."

Increasingly relied on as key contributors in the generation mix, Duke Power’s coal-fired stations produced more electricity in the years since 1990, pushing overall emissions up. With emphasis on early reductions, however, Duke Power avoided the production of 77,000 tons of sulfur dioxide and 31,000 tons of nitrogen oxides that would have occurred if 1990 emission rates remained unchanged.

"We continue to use low-sulfur coal, equip our stations with low-NOX burners and make other emission control modifications, " McMeekin said. "Going forward, our emphasis will be on more reductions in emission rates."

Although Duke Power is two years ahead of EPA deadlines, even lower emission rates are coming. Starting in 1999, for example, Duke Power will invest $25 million at its largest coal-fired station, Belews Creek, located in Stokes County, to complete the final installation of low-NOX burners on Duke Power’s fossil system. As a result, NOX emission rates for this facility will drop 50 percent. Another $2 million project now underway will reduce particulate emissions at the station.

"Duke Power believes environmental compliance is the cornerstone of stewardship," McMeekin said. "Our early reductions demonstrate Duke Power’s commitment to provide a reliable supply of electricity and to manage our environmental impacts responsibly."

Duke Power’s eight coal-fired stations lead the nation in fuel use efficiency, based on information supplied by the company to the Federal Energy Regulatory Commission in 1996 and 1995, the most recent years for which such information is available. In 1994, the last year Electric Light & Power magazine ranked the efficiency of the nation’s coal-fired stations, those operated by Duke Power came out on top for 20 of the last 21 years.

Duke Power is a business unit of Duke Energy Corporation (NYSE: DUK) --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: Guynn Savage
Phone: 704-382-8350
24 Hour Phone: 704-382-8333
Email: ghsavage@duke-energy.com