News Release
Sept. 03, 1998

TEXAS EASTERN TRANSMISSION CORPORATION RECEIVES FERC APPROVAL FOR RATE REDUCTION PLAN

HOUSTON - - Texas Eastern Transmission Corporation has received approval from the Federal Energy Regulatory Commission for its unique Customer Rate Initiative plan that will reduce customer rates and make the pipeline more competitive in the future.

The plan also includes a rate moratorium until 2004 that will provide rate stability and certainty for customers during a time when states are unbundling utilities. It also provides that Texas Eastern will assume the risk of capacity turnback through December 31, 2003.

The plan will result in a total rate savings for current customers of over $260 million through 2003.

Related to the settlement, Texas Eastern’s long-haul rates will be reduced by approximately 10 cents per dekatherm by the end of the year 2000, a 17 percent reduction from currently approved rates.

"This settlement provides rate certainty for customers for their interstate capacity which will facilitate restructuring proceedings at the local level," said Robert Evans, president. "I want to thank the FERC commissioners for their quick and timely consideration of the settlement. I also want to thank our customers and Judge Levant, the settlement judge, for their assistance in enabling an uncontested settlement to go before the commission."

"Texas Eastern management decided to propose this settlement plan — rather than try to solve the problems through a traditional regulatory rate case - as a way to resolve these issues without the time, expense and uncertainty associated with prolonged litigation," Evans added. "FERC has confirmed the benefits of our decision and so have our customers, since our settlement was not opposed by any party."

Texas Eastern is a subsidiary of Duke Energy. 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: John P. Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com