News Release
May 05, 1999

TEXAS EASTERN ANNOUNCES THE AVAILABILITY OF FIRM CAPACITY TO MOVE GAS TO THE EAST COAST

HOUSTON - Texas Eastern Transmission Corporation (TETCO) announced today the availability of 300,000 dekatherms per day of capacity in 2000 for firm contracts under its Spectrum Program – TETCO’s low cost, environmentally friendly alternative for the transportation of gas from Chicago to the East Coast.

Spectrum has been significantly enhanced to include additional transportation options on pipelines upstream of TETCO’ s facilities and to reflect an overall delivered cost, which has been reduced by almost 35 percent. Spectrum is designed to take advantage of existing capacity and right of way on TETCO. Thus, Spectrum is an environmentally friendly option that materially reduces the environmental consequences of other proposals to move gas from Chicago to the East Coast.

"Spectrum is the premier option for delivery of Chicago supplies to the growing East Coast markets since it combines competitive rates with the least environmental impact," said Bobby Evans, president of TETCO. "We believe that customers seeking firm capacity with a 2000 in-service date to coincide with the in-service date of Alliance Pipeline will be particularly interested in Spectrum."

The reduction in Spectrum rates is due in part to the successful implementation of TETCO’ s rate initiative recently approved by the Federal Energy Regulatory Commission. "The rate initiative represents a concerted effort by TETCO to improve its competitive position by lowering rates for all its customers," Evans said. "As a result of the rate initiative, TETCO’s transportation rates will be reduced by 17 percent by year end 2000 and customers have the commitment that rates will not increase before the year 2004."

TETCO also announced that up to 200,000 dekatherms per day of the capacity would be available in the fall of 1999 to provide transportation access from mid-continent and Canadian natural gas sources via existing interconnects and from Gulf Coast, off-shore Gulf Coast and Appalachian natural gas supply sources.

TETCO has scheduled an open season from May 7 through June 4 to accept capacity requests for its Spectrum program and for the TETCO capacity available in the fall 1999.

For information regarding the service options, open season procedures and documentation for Spectrum capacity or other capacity paths on TETCO, contact Randy Riha at 713-627-4746. The registration form may be accessed online at the following Web address: http: infopost.link.duke-energy.com/spectrum.

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: Liz Johnson
Phone: (713) 627-5011
24 Hour Phone: (704)382-8333
Email: evjohnson@duke-energy.com