News Release
May 20, 1998

DUKE ENERGY, NIPSCO INDUSTRIES SUBSIDIARIES TO OFFER ENERGY GENERATION TO INDUSTRIAL CUSTOMERS IN ALABAMA, LOUISIANA AND MISSISSIPPI

CHARLOTTE, N.C. - Duke Energy Industrial Asset Development, a subsidiary of Duke Energy Corporation, and Primary Energy, a subsidiary of NIPSCO Industries Inc., are forming an alliance to market on-site generation to energy-intensive businesses in Alabama, Louisiana and Mississippi.

"This alliance helps us build our marketing staff and boosts our development efforts in a high growth area," said Bobby Abrams, Duke Energy Industrial president. "This region has significant potential for industrial expansion. We look forward to teaming up with Primary Energy to meet the energy needs of companies in these markets."

The alliance will target a number of industries in the three states including petro-chemical, petroleum, and pulp and paper manufacturers.

"By combining the project development experience of Primary Energy with the full basket of services Duke Energy Industrial has to offer, our two companies will be able to provide reduced energy costs and improved efficiency to industrial customers through on-site generation," said Joe Turner, president of Primary Energy. "The key to our future will be our customers’ success and savings from our combined efforts."

Through existing working relationships with Fluor Daniel and Duke/Fluor Daniel, both companies will capitalize on this alliance to provide design, engineering and construction services for its projects.

Primary Energy develops and manages energy projects for large, energy-intensive complexes, providing competitive responses to customers’ energy needs. Primary Energy has four projects in commercial operation. Construction will be completed on the fifth in June. These five projects, for major Midwest industrials, represent a combined total of 400 megawatts.

NIPSCO Industries, Inc. (NYSE: NI), based in Merrillville, Ind., is a holding company whose businesses are primarily energy and utility focused. NI’s regulated subsidiaries provide natural gas and electricity in northern Indiana, water in central Indiana, and interstate natural gas pipeline services. NI’s nonregulated subsidiaries are active primarily in energy marketing; gas storage, exploration and production; and power generation development.

Duke Energy Industrial is part of the Global Asset Development group of Duke Energy Corporation that currently has more than 3400 megawatts in operation, financial closing or construction in North America. Duke Energy Industrial develops, owns, manages and operates on-site electric generation and energy conversion facilities for large industrial customers in the United States and Canada. Created in July 1997, Duke Energy Industrial is working with customers in several industries including petroleum, chemical and pulp and paper.

Duke Energy Corporation (NYSE: DUK) is a global energy company with more than $20 billion in assets. Duke Energy companies provide electric service to almost 2 million customers in North Carolina and South Carolina; own and operate 37,000 miles of pipelines that gather and transport 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. For additional information, or to request a copy of the company’s annual report to stockholders, contact Duke Energy on the World Wide Web at http://www.duke-energy.com, or call 1-800-USE-DUKE in the United States.

Contact: Mary Alice Rogers
Phone: (704) 373-6574
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Kris Falzone (Primary Energy)
Phone: (219) 647-6203
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com