News Release
April 15, 1999


CHARLOTTE, N.C. -- The Duke Energy (NYSE: DUK) board of directors today voted to replace all six steam generators at Oconee Nuclear Station.

It is projected that new steam generators on unit 1 will be installed during a regular refueling outage in 2003, with units 2 and 3 following in 2004. Babcock & Wilcox Canada will supply the generators.

Steam generators are the components in a pressurized water nuclear reactor that produce steam to drive turbines and electrical generators.

Michael S. Tuckman, executive vice president of nuclear generation for Duke Power, said the cost of the project is estimated at $450 million.

"Installing new steam generators will reduce maintenance costs and extend the units’ life," he said.

Oconee Nuclear Station, located in Oconee County, South Carolina, has applied to the U.S. Nuclear Regulatory Commission for an extension of its operating licenses. The current 40-year licenses are due to expire in 2013 for unit 1 and 2014 for units 2 and 3. If the extension is granted, the units will be allowed to operate an additional 20 years.

Tuckman said the decision to replace the steam generators was not affected by the license renewal application.

This is the third project of this type undertaken by Duke. The company replaced steam generators at Catawba unit 1 and McGuire units 1 and 2 in 1996 and 1997.

Oconee Nuclear Station is a three-unit power plant located on Lake Keowee, near Seneca, S.C. Each of its units can generate electricity at the rate of 847 megawatts. Oconee unit 1 began commercial operation in 1973, units 2 and 3 in 1974.

Duke Power is a business unit of Duke Energy (NYSE: DUK). Duke Energy is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at:


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