News Release
July 20, 1999

ALGONQUIN ANNOUNCES OPEN SEASON FOR HUBLINE PROJECT

Boston -- Algonquin Gas Transmission ("Algonquin"), a subsidiary of Duke Energy, has scheduled an open season for the transportation services associated with HubLine, the proposed natural gas pipeline that will interconnect Maritimes & Northeast Pipeline ("Maritimes") facilities with Algonquin’s natural gas pipeline.

"HubLine is a project that supports the market demand for additional natural gas in the northeastern United States," said Tom O’Connor, vice president of marketing for Duke Energy’s Northeast Pipelines. "This demand is being driven both by the needs of local distribution companies and by the growth in gas-fired electric generation. HubLine meets these demands by delivering high pressure service from new supply options entering New England from the north and integrating these new resources with the existing domestic natural gas infrastructure.

"The recent electric power peak demand throughout the Northeast demonstrates the need for additional clean and efficient gas-fired generation in the northeast. HubLine offers a unique opportunity to bring new high pressure gas supplies deep into the market increasing operating efficiencies and flexibility," added O’Connor.

During the open season, Algonquin will accept requests for service from local distribution companies, power generators, industrial customers and natural gas marketers. This very important initial step is part of the process to demonstrate to the Federal Energy Regulatory Commission that a need for the natural gas transportation services exists.

The open season to accept capacity requests begins on July 20 and concludes on August 12. The firm transportation services to be offered will be provided on a non-discriminatory open access basis. Service is expected to commence in 2002 and nominations for services starting at different periods will be accepted and evaluated.

Algonquin’s proposed HubLine project involves the construction of approximately 24 miles of 24-inch diameter pipeline from the Maritimes mainline extension near Salem, Mass., extending offshore across Massachusetts Bay to connect with existing Algonquin facilities south of Boston. The project will also provide access to multiple natural gas basins including sources located offshore Nova Scotia, western Canada and the U.S. Gulf Coast.

Duke Energy Corporation (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: John Sheridan
Phone: (617) 560-1444
24 Hour Phone: (704) 382-8333
Email: jpsheridan@duke-energy.com