News Release
Oct. 02, 1998

MARITIMES & NORTHEAST PIPELINE, L.L.C. APPLIES TO SERVE VEAZIE, MAINE, POWER FACILITY

Boston & Maritimes & Northeast Pipeline, L.L.C. recently filed an application with the Federal Energy Regulatory Commission (FERC) to construct, own and operate a 1.1- mile, 12-inch diameter lateral pipeline to provide natural gas transportation service to the Maine Independence Station currently under construction in Veazie, Maine. The Maine Independence Station is Duke Energy Power Services’ 520 megawatt natural gas-fueled electric generating station.

"We are pleased to have the opportunity to provide natural gas transportation service to this significant project in Greater Bangor and to contribute to the exciting growth in Maine’s energy market. Projects such as the Maine Independence Station are indicative of the beneficial developments which will occur when natural gas is introduced into this region," said Tom O’Connor, president of M & N Management Company, managing member of Maritimes & Northeast.

Maritimes & Northeast is the transportation facility for the Sable Offshore Energy Project, a new natural gas supply basin located offshore Nova Scotia which will begin production in November 1999. The Maritimes & Northeast project consists of approximately 650 miles of 24-inch - and 30-inch diameter mainline pipe from the landfall at Goldboro, Nova Scotia, to Dracut, Massachusetts.

"Using clean burning natural gas, the Maine Independence Station will be one of the most efficient and environmentally sensitive power plants in the country and will help provide Maine and the rest of the northeast with cost-competitive electric generating capacity," said James M. Donnell, executive vice president of Duke Energy Power Services. "Reliable natural gas service from Maritimes & Northeast is critical to a merchant plant such as the Veazie facility, and we are looking forward to timely approval by the FERC and other resource agencies of this necessary lateral."

Phase II of Maritimes & Northeast from Westbrook, Maine to the U.S. - Canadian border recently received a certificate of public convenience and necessity from the FERC. The lateral proposed to serve the generating facility in Veazie will interconnect with the 24-inch diameter mainline in Eddington, Maine and will generally follow existing utility corridor rights-of-way.

Maritimes & Northeast is owned by affiliates of Duke Energy Corporation (3 7.5%), Westcoast Energy Inc. (37.5%) and Mobil Corporation (25%). Duke Energy, through its affiliates, is responsible for the overall development of the $1 billion, Maritimes & Northeast Project and directly responsible for the U.S. portion of the project. Westcoast Energy Inc., a major energy company located in Vancouver, British Columbia, is responsible for the development of the Canadian pipeline portion of the project. Contact Maritimes & Northeast on the World Wide Web at http://www.mnp-usa.com.

Maine Independence Station is owned by Casco Bay Energy Company, L.L.C., an affiliate of Duke Energy Power Services, L.L.C. 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 Corporation (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: Brian J. Prenda
Phone: (617) 560-1450
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com