News Release
July 26, 1999

DUKE ENERGY NORTH AMERICA INVESTS IN ARIZONA POWER PROJECT

HOUSTON – Duke Energy North America (DENA), the developer of North American power projects for Duke Energy, today announced it had acquired a 50-percent interest in the Griffith Energy Project from PP&L Global, Inc. (PP&L), a subsidiary of PP&L Resources, Inc.

(NYSE: PPL). Griffith Energy LLC is currently developing a 600-megawatt merchant power project near Kingman, Ariz., to serve southwestern U.S. markets.

The Griffith Energy Project will use natural gas-fired, combined-cycle technology. Pending final permit approvals, construction will begin in September and commercial operations will commence in July 2001. A turnkey construction contract with Black & Veatch/Zachry was executed earlier this month.

"Acquiring a 50-percent interest in the Griffith Energy Project provides DENA an early entrance into the southwest market," said DENA President and CEO Jim Donnell. "PP&L has done an excellent job developing this project and we are excited to work with them. As DENA manages its portfolio of assets, we continue to look for opportunities to leverage our commercial and technical skills by developing our own projects and adding strategic value to those of third parties."

"The Arizona project is a solid addition to DENA’s portfolio of Western System Coordinating Council (WSCC) assets that already includes four power plants in California," Donnell said. "The Southwest is one of DENA’s target markets and we continue to look for additional development and acquisition opportunities in this region as well as others across North America."

PP&L Global is PP&L Resources, Inc.'s second-largest subsidiary. The largest, PP&L, Inc., delivers electricity to 1.3 million customers in Pennsylvania, generates electricity, and markets wholesale energy in the United States and in Canada; and through PP&L EnergyPlus Co., sells competitively priced energy and energy services to newly deregulated markets. Other PP&L Resources companies are: PP&L Spectrum, Inc., which markets energy-management services and products; Penn Fuel Gas, Inc., which sells natural gas and propane in Pennsylvania and Maryland; and Burns Mechanical, Inc., H. T. Lyons, Inc., McCarl's Inc. and McClure Company, which are mechanical contracting and engineering firms that provide services in the mid-Atlantic region.

Duke Energy North America (DENA), a unit of Duke Energy, is a premier developer, owner and manager of wholesale electric generation projects throughout the United States, Mexico and Canada. DENA offers industry-leading expertise in project development, construction and operations as well as portfolio management including commercial transactions, risk management and energy trading and marketing.

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: Tom Williams
Phone: (805) 595-4270
24 Hour Phone: (877) 364-5170
Email: tcwillia@duke-energy.com
Contact: Paul T. Champagne
Phone: (703) 293-2603
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com