News Release
Feb. 01, 1999

DUKE/FLUOR DANIEL CHOSEN TO BUILD MAINE POWER PLANT

CHARLOTTE, N.C., February 1, 1999 -- Duke/Fluor Daniel, a partnership between Duke Energy Corporation and Fluor Daniel, announced today that it has been awarded a contract by Duke Energy Power Services (DEPS) to provide engineering, procurement and construction services for a 520-megawatt, natural gas-fired merchant power plant in Penobscot County,Maine. The contract value was not disclosed.

The power plant, which will be built near the city of Veazie, is expected to be fully operational by the summer of 2000.

Merchant power plants sell wholesale power on a competitive basis to utilities and power marketers which need low-cost power to meet their customers’ needs. However, utilities and power marketers are not required to buy power from merchant plants. In order to be successful, these plants must be able to generate electricity at prices more attractive than other power plants operating in the same market.

Duke/Fluor Daniel President Clarence Ray, Jr., said, "The success of any merchant power plant is how cost-competitive it is versus other plants. Engineering and construction play a big part in that. We’re pleased that Duke/Fluor Daniel is able to provide value to DEPS in this way."

Maine Independence Station is owned by Casco Bay Energy Company LLC, an affiliate of Duke Energy Power Services LLC. 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/Fluor Daniel was formed in 1989 by Duke Energy Corporation and Fluor Daniel. It provides comprehensive engineering, procurement, construction and plant operating services for fossil-fueled electric power generation facilities worldwide. Visit Duke/Fluor Daniel on the Internet at "www.d-fd.com."

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $26 billion in assets. Duke Energy companies develop, build, own and operate energy facilities, and provide engineering, management, operating, maintenance and environmental services.

Fluor Daniel is the engineering, construction, maintenance, technical and diversified services subsidiary of Fluor Corporation (NYSE:FLR). In 1998, Fluor Corporation revenues were $13.5 billion.

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