News Release
July 26, 1999

MARITIMES & NORTHEAST PIPELINE SPONSORS CLOSE BOND AND BANK FUNDING

CHARLOTTE - - Duke Energy in conjunction with affiliates of Westcoast Energy Inc., Mobil Corporation and NS Power Holdings Inc. recently completed the project financing for the U.S. and Canadian portions of the Maritimes & Northeast Pipeline project – a major Northeast pipeline that will transport natural gas from the Sable Offshore Energy Project to markets in the Maritimes Provinces in Canada and the northeastern United States.

"The innovative non-recourse financing package has been put in place with a combination of bank loans and bond offerings in the United States and Canada," said David Hauser, senior vice president and treasurer of Duke Energy. "Duke Energy will continue to look at other innovative financing structures for upcoming projects."

Total debt financing was about $521 million in the United States and about C$712 million in Canada. The package includes agreements to repay the bank loans within the first 10 years while the bonds will be repaid in years 11 through 20 of pipeline operations.

Proceeds will be used by the U.S. company and the Canadian company building the U.S. and the Canadian portions of the Maritimes & Northeast Pipeline for the construction, financing and operation of their respective portions of the pipeline.

The placement agent for the bonds in the United States was Morgan Stanley Dean Witter and the lead underwriter in Canada was CIBC World Markets Inc. The bonds were rated A1 by Moody’s Investors Service and A by Standard & Poor’s. The bank loans in the United States and Canada were arranged by Banc of America Securities LLC and Canadian Imperial Bank of Commerce (CIBC) with Bank of America N.A. acting as administrative agent in the United States and CIBC acting as administrative agent in Canada.

The Maritimes & Northeast Pipeline is a 658-mile, underground pipeline traversing areas of Nova Scotia, New Brunswick, Maine and New Hampshire before interconnecting with the North American pipeline grid in Massachusetts. The pipeline will provide transportation for gas produced from the Sable Offshore Energy Project, located on the Scotian Shelf, which has been estimated by an independent reserve engineer to have reserves of about 3.7 trillion cubic feet. The National Energy Board of Canada estimates total resources of approximately 18 trillion cubic feet on the Scotian Shelf off the coast of Nova Scotia. The two Maritimes & Northeast companies that are building the Canadian and U.S. portions of the pipelines are each owned by affiliates of Duke Energy (37.5 percent), Westcoast Energy Inc. (37.5 percent), Mobil Corporation (12.5 percent) and NS Power Holdings Inc. (12.5 percent).

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: John P. Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com