News Release
July 01, 1999

DUKE POWER: Y2K READY

CHARLOTTE, N.C. – Duke Power, a business unit of Duke Energy, announced today that it has completed its Year 2000 Readiness Program, addressing systems and devices essential to providing safe, reliable electricity to its two million customers in the Carolinas.

"We met our June 30 target date for readiness, an important milestone for our company," said William A. Coley, president of Duke Power. "We have identified, fixed and tested systems critical to our operations. In addition, we have contingency plans in place that will help us address Year 2000 issues, should they occur before, during and after January 1.

"During the remaining months of 1999, we will conduct additional tests of our systems and perform drills to evaluate further our preparations for the January 1 transition period. We also will continue to evaluate the readiness of key business partners," Coley said.

Many Duke Power employees and significant financial resources have been dedicated to addressing the Y2K issue since the company’s readiness program began in 1996. The program addresses every facet of the business, from customer services to power generation and delivery.

Regular status reports of the Duke Power’s readiness program have been provided to the executive management team and board of directors of Duke Energy. Duke Energy also has used outside firms to assess different aspects of the program.

"Our objective is to make January 1 just another day for our operations and our customers. While we cannot offer guarantees, I am confident that our program is on target. The outside assessments help reaffirm that," Coley said.

In addition to Duke Power, other Duke Energy businesses that are Year 2000 ready include its interstate gas pipeline and trading and marketing operations. Remaining business units expect to be Year 2000 ready later this year.

Duke Power, a business unit of Duke Energy, is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity to nearly two million customers in North Carolina and South Carolina. Duke Power operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system capability is 19,252 megawatts.

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 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.

A teleconference with media is scheduled today at 1 p.m. Eastern time. Reporters may contact Diane Savage at 704/373-6668 for the telephone number and password. The following company executives will be available to address questions:

Sally Whitney

Program Director

Duke Energy Year 2000

Michael S. (Mike) Tuckman

Executive Vice President

Nuclear Generation

Duke Power

E.O. Ferrell

Senior Vice President

Electric Distribution

Duke Power

William F. (Bill) Reinke

Vice President

System Marketing, Planning & Operations

Duke Power

Contact: Joe Maher
Phone: (704) 382-8323
24 Hour Phone: (704) 382-8333
Email: jmaher@duke-energy.com
Contact: Anne Sheffield
Phone: (704) 382-8063
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com