News Release
Oct. 01, 1998

DUKE BREAKS GROUND ON MAINE INDEPENDENCE STATION

CHARLOTTE, N.C. – Duke Energy Power Services officially broke ground on Maine Independence Station today in a ceremony and reception for nearby residents and local and state officials at the plant site on the Penobscot River in Veazie, Maine. The plant is the company’s second major wholesale merchant power plant in New England. It is owned by Casco Bay Energy Company L.L.C., an affiliate of Duke Energy Services L.L.C.

When the 520-megawatt, $221 million power plant comes on line in the summer of 2000, it will generate enough wholesale electricity to serve approximately 500,000 homes.

"We are grateful to the Veazie community for welcoming our Duke Energy Power Services’ team to their community," said John Norris, chairman of Duke Energy’s Global Asset Development division. "We recently brought on line a major portion of a very similar 520-megawatt, combined-cycle power plant in Bridgeport, Conn., that is playing an important role in helping meet the region’s need for competitively priced electricity. Maine Independence Station builds on our commitment to become a major producer of wholesale electricity in New England."

"The significant investment being made in this power plant will be a tremendous benefit to this region and underscores once again that Maine is a good place to do business," said Ken Curtis,

former governor of Maine and chairman of Maine & Company, who spoke at the groundbreaking ceremony.

Maine Independence Station will produce approximately 95 percent less air emissions per megawatt-hour generated and approximately 95 percent less heated water into the Penobscot River than the oil-fired plant formerly operated by Bangor Hydro-Electric Company at the site. The plant will not alter the Penobscot River's waterfront since existing water intake and discharge structures will be used.

The new plant is approximately 40 percent more efficient than traditional power plants, due in large part to its state-of-the-art, combined-cycle design. About two-thirds of its electricity is generated by two large combustion turbine generators that are fueled by high-pressure air mixed with natural gas. The exhaust from this combustion process, which is unused in traditional fossil-fueled power plants, is utilized to produce high-pressure steam to drive a steam turbine generator.

"Fourteen months ago, I was asked to attend a meeting to talk with a group about a development proposal in Veazie," said Rod Hathaway, chairman of Veazie’s town council. "Little did I know that I would soon be participating in a groundbreaking ceremony for a project that will have a significant economic impact in Veazie, in the surrounding communities, in Northern Maine and throughout the state."

Duke Energy Power Services develops, owns and operates electric power plants across the United States and Canada. It is the unregulated domestic power developer for Duke Energy Corporation.

Duke Energy (NYSE:DUK) is a global energy company with more than $24 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: Randy Wheeless
Phone: (704) 382-8379
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com
Contact: Tom Williams
Phone: 704/382-3747
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com