News Release
June 30, 1999

DUKE ENERGY AND ENRON PIPELINE COMPANY ANNOUNCE PLANS TO BUILD NEW MOBILE BAY AREA PIPELINE

Houston -- Duke Energy and Enron Corp. business units today announced they have signed a letter of intent to form a joint venture, Blue Heron Interstate Transmission Company, L.L.C., to serve markets in portions of southern Alabama and the Florida Panhandle.

With an expected in-service date of 2002, Duke Energy Southeast Pipeline Corporation and Enron Pipeline Company (EPC) expect the estimated 140-mile Blue Heron system to transport natural gas from the Coden, Alabama, area across southern Mobile Bay to customers in southern Alabama and the western portion of the Florida Panhandle. The Blue Heron system capacity, cost and route will be determined over the next several months as project details are finalized.

"We are pleased to form the Blue Heron joint venture with Enron Pipeline Company to increase the availability of environmentally friendly and abundant natural gas to markets in Alabama and Florida," said Bobby Evans, president of Duke Energy Southeast Pipeline Corporation.

"As we move forward with Blue Heron, Enron Pipeline and Duke Energy Southeast Pipeline will work closely with the various communities, environmental groups, agencies and landowners on the environmental aspects of the project," said John Goodpasture, vice president of EPC business development. "This project will bring a new and diverse supply of natural gas to both Alabama and Florida."

With approximately 32,000 miles of pipeline, Enron operates one of the country’s largest natural gas transmission systems and transports 18 percent of all natural gas consumed in the United States. Enron is one of the world's leading integrated electricity and natural gas companies. The company, which owns approximately $30 billion in energy-related assets, produces electricity and natural gas; develops, constructs and operates energy facilities worldwide; and delivers physical commodities and risk management and financial services to customers around the world. Enron's Internet address is www.enron.com, and the stock is traded under the ticker symbol, "ENE."

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 Barnett
Phone: (713) 627-4072
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com
Contact: Eric Thode
Phone: (713) 853-9053
24 Hour Phone: (704) 382-8333
Email: media_relations@duke-energy.com