News Release
Sept. 28, 1998

DUKE ENERGY POWER SERVICES NAMES RUFUS KELLAM MAINE INDEPENDENCE STATION PROJECT DIRECTOR

CHARLOTTE, N.C. - Duke Energy Power Services announced today that Rufus Kellam has been named the Maine Independence Station project director.

Kellam will be responsible for the project management obligations of Duke Energy Power Services natural gas-fueled, 500-megawatt Maine Independence Station. The station is being built on Penobscot River in Veazie, Maine, at a site that has been used by Bangor Hydro-Electric Company's Graham Street Station, an oil-fired plant that operated from 1949 to 1993. Kellam will begin his work at the site later in September and work closely with Duke/Fluor Daniel, the turnkey contractor for the engineering, procurement and construction of the plant.

When the $221 million Maine Independence Station comes on line in the summer of 2000, it will generate enough wholesale electricity to serve about 500,000 homes. It will play an important role in helping Maine and New England meet the need for reliable and competitively priced electricity.

"We are very pleased that Rufus will lead our Maine Independence team during the construction activities," said Bill Sigmon, DEPS’ senior vice president of project

management and technical services. "He brings more than 20 years of experience in all phases of electricity generation and transmission projects and has excelled in every job he has undertaken."

Kellam has held numerous positions in both unregulated and regulated areas of Duke Energy. He has served as the project manager of Duke Engineering & Services contract to help create California's Independent System Operator infrastructure that ensures the reliability of the state's transmission system. He has also been a manager in Duke Energy's electric transmission operations and the company's power plant development activities in Latin America.

Maine Independence Station will produce about 95 percent less air emissions per megawatt-hour generated and about 95 percent less heated water into the Penobscot River than the oil-fired plant formerly operated at the site. And, since existing water intake and discharge structures will be used, the new plant will not alter the Penobscot River's waterfront.

The new plant is about 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.

Kellam received a bachelor’s degree from the University of South Carolina at Spartanburg and a master’s degree from the University of South Carolina at Columbia.

Kellam and his wife Kathy currently reside in Gastonia, N.C., and have a grown daughter and two grandchildren. They will be relocating to Bangor in the coming months.

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 (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: Tom Williams
Phone: (704) 382-3747
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com