News Release
Feb. 08, 1999

DUKE/FLUOR DANIEL CHOSEN TO BUILD TEXAS POWER PLANT

CHARLOTTE, N.C. -- Duke/Fluor Daniel, a partnership between Duke Energy 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 500-megawatt, natural gas-fired merchant power plant in Hidalgo County, Texas. The total installed cost of the project is $175 million. Duke/Fluor Daniel’s contract value was not disclosed.

Ground was broken for the plant, which is being built near the city of Edinburg, on Thursday, February 4. The plant is expected to be fully operational by the summer of 2000.

"Given our affiliation with Duke/Fluor Daniel, we are well aware of its world-class capabilities in designing state-of-the-art facilities for the power generation industry," said Dave Rehn, president of DEPS. "Duke/Fluor Daniel’s impressive resume and ability to provide a cost-competitive turnkey package of services will help to ensure the safe, successful design and construction of the Hidalgo plant, which will provide energy to as many as a half-million people in the region."

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. Because utilities and power marketers are not required to buy power from merchant plants, they must be able to generate electricity at prices more attractive than other power plants operating in the same market.

The Hildago energy facility is owned by Duke Energy Hidalgo, LP, 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.

Duke/Fluor Daniel was formed in 1989 by Duke Energy 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 (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, procurement, 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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