News Release
May 03, 1999

Duke Energy Announces Changes In Power Services Unit; Donnell Named To Head Duke Energy North America

HOUSTON -- Duke Energy today announced that it was expanding the scope of its domestic electric generation project development, ownership and operations unit and renaming it Duke Energy North America. Duke Energy North America will include and expand on the work that had been done in the company’s Duke Energy Power Services business.

James M. Donnell was named president and chief executive officer of Duke Energy North America. These changes are effective immediately.

"The creation of Duke Energy North America consolidates all of our non-regulated electric generation projects in North America," said Harvey J. Padewer, group president, Energy Services. "This will allow Duke Energy to draw on the strengths and competencies of all of Duke Energy’s businesses across the energy value chain to better serve customers throughout North America.

"Jim Donnell’s years of experience in unregulated energy markets and deep understanding of the Duke Energy’s strategies and objectives made him the best person to lead this unit as it continues its growth across North America," said Padewer.

Donnell previously served as executive vice president of Duke Energy Power Services. He joined PanEnergy Corp in 1996 as managing director of power trading. He was named senior vice president of PanEnergy Power Services in 1997 and to his current role following the merger of Duke Power and PanEnergy. Prior to joining Duke Energy, he was a partner with Donnell & Associates and JMD Trading in Houston, Texas. From 1986 until 1993, he held positions of increasing responsibility in the gas industry for Texaco, U.S.A; Natural Gas Clearinghouse; and Gasmark, Ltd.

Duke Energy’s unregulated power generation asset ownership and development business is a leader in the emerging wholesale energy market in the United States. The group developed one of the first merchant power plants in the northeast in Bridgeport, Connecticut. Construction on other merchant plants began last October for a merchant plant in Veazie, Maine, and in February 1999, for the Hidalgo plant in Edinburg, Texas. The St. Francis plant in southeast Missouri, developed jointly with Associated Electric Cooperative, Inc., will begin commercial operation in May 1999.

In July 1998, the company completed the purchase of 2,645 megawatts of generation in California from Pacific Gas and Electric. The California facilities are currently going through the initial phases of regulatory approval to expand their generating capability. Additionally, merchant plants are being developed in Florida, Texas and other locations around the country. The company also just increased its ownership interest in American Ref-Fuel Co., the third-largest waste-to-energy firm in the United States.

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: Danny Gibbs
Phone: (704) 373-6680
24 Hour Phone: (704) 382-8333
Email: dpgibbs@duke-energy.com