News Release
Oct. 14, 1998

CROSS BAYSM PIPELINE ANNOUNCES OPEN SEASON

HOUSTON - Cross BaySM Pipeline Company, a limited liability company formed by subsidiaries of Williams (NYSE:WMB), Duke Energy (NYSE:DUK) and KeySpan Energy (NYSE:MN), has announced that it is holding a 30-day open season from Oct. 15 to Nov. 13, 1998 for shippers interested in firm transportation service.

Designed to increase natural gas deliveries into the New York City metropolitan area by maximizing the use of existing facilities, Cross Bay Pipeline will use compression and looping to expand Williams’ existing Transco Long Beach line facilities and increase deliveries by 125,000 dekatherms per day (Dth/d).

Cross Bay will have direct access to both the Texas Eastern and Transco systems via receipts in Texas Eastern Zone M3 and Transco Zone 6. Subsequent phases of the project may be developed based on market requirements, providing up to 700,000 Dth/d of natural gas delivery service.

The Cross Bay system will increase the delivery capacity and reliability of gas supplies to support continued growth in demand for natural gas in the New York City metropolitan area. This growth is a result of KeySpan’s expansion of the gas distribution system in Long Island and the appeal of natural gas as an environmentally sound and economical energy source.

Cross Bay plans to file the project with the Federal Energy Regulatory Commission by year end. Additional information may be obtained by contacting Patrick Gibson at Duke Energy 617/560-1454 (ptgibson@duke-energy.com), Neil Nichols at KeySpan 718/403-2529 (nnichols@keyspanenergy.com), or Joan Strub at Williams 713/215-2904 (joan.a.strub@wgp.twc.com).

KeySpan Energy’s two principal operating subsidiaries, each doing business under the name Brooklyn Union, distribute natural gas to nearly 1.6 million customers in the New York City boroughs of Staten Island, Brooklyn, and Queens, and the Long Island counties of Nassau and Suffolk. Other KeySpan subsidiaries provide gas-marketing and energy services, including system installation and management, primarily in the greater New York metropolitan area; generate electricity primarily in Nassau and Suffolk Counties at five plants and 42 smaller facilities with an aggregate-rated generating capacity of 3,978 MW; and provide electric transmission-and-distribution operating services and customer-billing services to the Long Island Power Authority for its one-million electric customers.

Through investments by subsidiaries, Keyspan also owns 64 percent of the gas-exploration-and-production operations of The Houston Exploration Company (NYSE:THX) as well as interests in domestic and international pipeline operations and international gas-distribution operations. For more information, visit KeySpan Energy’s web site at http://www.keyspanenergy.com.

Williams, through its subsidiaries, is the nation’s largest volume transporter of natural gas and provides a full range of traditional and leading-edge energy and communications services. Williams information is available on the World Wide Web at http://www.twc.com.

Duke Energy Corporation 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 or call 1-800-USE-DUKE in the United States.

Contact: Lisa Willmon
Phone: (713) 215-4263
24 Hour Phone: (704) 382-8333
Email: lisa.n.willmon@wgp.twc.com
Contact: John Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: jpbarnett@duke-energy. com
Contact: Robert Mahony
Phone: (718) 403-2503
24 Hour Phone: (704) 382-8333
Email: rmahony@bug. com