News Release
Aug. 02, 1999

DUKESOLUTIONS BECOMES CANADA’S LEADING RETAIL ENERGY SERVICES PROVIDER WITH ACQUISITION OF MONTREAL FIRM

CHARLOTTE – DukeSolutions, the integrated energy solutions subsidiary of Duke Energy, has announced the acquisition of CMA Chalifour, Marcotte & Associés of Montreal, Quebec and its subsidiary, CMA Interface.

The purchase, coupled with DukeSolutions’ September 1998 acquisition of Tescor Energy Services of Toronto, Ontario, makes the company the leading retail energy services provider in Canada. Terms of the transaction were not disclosed.

"The Tescor acquisition laid the foundation for our entry into Canada last year," said Charlie Watkins," DukeSolutions' president. "We’ve built upon that foundation with energy information and supply management capabilities, demonstrated recently when we secured a $19 million (U.S.) efficiency and building renewal contract for Toronto’s TD Centre. That project is one of the largest of its kind in North America and is in conjunction with the city’s Better Buildings Partnership. We anticipate similar successes in Quebec with our acquisition of CMA."

The acquisition allows CMA to expand client services. According to Managing Director of Quebec Operations André Chalifour, "energy and its associated infrastructure offer one of the greatest opportunities for end-users to realize financial, environmental and efficiency gains. In DukeSolutions we saw the chance to help our clients unlock the value of energy hidden within their facilities."

With the assets, recognized engineering and customer service of a global energy leader, DukeSolutions and CMA can better serve customers with Quebec operations. "CMA has a sterling reputation in the Quebec energy services marketplace," said Tom Tamblyn, DukeSolutions’ vice president for Canada. "Our customers in Quebec and across Canada will benefit from a hardware-neutral approach and what is the only true retail perspective in the energy services industry, combining services before and after the meter."

CMA has provided efficiency and productivity services to institutional, commercial, industrial and governmental customers throughout Quebec and Ontario since 1976. With the sale, the new entity will serve as the base for DukeSolutions’ Quebec operations and will be known as CMA, a DukeSolutions Company.

The company was founded 23 years ago. CMA has 18 employees in Montreal who will become part of DukeSolutions Canada. The company has conducted approximately 15,000 energy analyses for commercial, institutional and industrial customers; trained 6,000 facilities managers in energy efficiency programs; and implemented 800 building and industrial energy efficiency projects.

DukeSolutions is a rapidly growing North American energy services company, with 22 offices in the United States and Canada. The company helps customers make the most of their assets and increase cash flow and earnings by providing integrated energy solutions that reduce costs and improve energy efficiency. Serving industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including energy supply and logistics, reliability and risk management, on-site utility, information management and efficiency and productivity services. DukeSolutions is a wholly owned subsidiary of Duke Energy. Additional information about the company is available on the Internet at: http://www.dukesolutions.com.

Duke Energy (NYSE:DUK) 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: www.duke-energy.com.

Contact: Danny Gibbs
Phone: (704) 373-6680
24 Hour Phone: (704) 382-8333
Email: dpgibbs@duke-energy.com