News Release
Nov. 10, 1999

DUKE ENERGY: $470 MILLION NON-RECOURSE FINANCING LAUNCHED FOR CALIFORNIA ASSETS

CHARLOTTE, N.C. -- Duke Energy has made arrangements with three financial institutions to finance $470 million of its investment in three power generation stations in California.

Lead arranger Credit Suisse First Boston and co-arrangers Bank of Montreal and Societe Generale underwrote the bank financing for Duke Energy Generating, LLC, an indirect wholly owned subsidiary of Duke Energy on Oct. 29. The facilities are comprised of a $380 million term facility, an $80 million capital expenditure line and $10 million in working capital. A syndication of the term facility and the capital expenditure line began with a Duke Energy-sponsored bank meeting on Nov. 2.

The financing is a 364-day senior secured, non-recourse transaction. Maturity can be extended for two consecutive one-year periods at the option of the borrower. It is anticipated that the financing will be rated as investment grade within the first 12 months of closing.

"Non-recourse financings are an important source of capital for Duke Energy," said David Hauser, the company's senior vice president and treasurer. "This transaction, and others like it, facilitates Duke Energy's energy merchant strategy while supporting the credit strength of the entire enterprise."

The three California power generation stations -- Moss Landing and Morro Bay (formerly owned by Pacific Gas & Electric) and South Bay (formerly owned by San Diego Gas & Electric and now leased from the Port of San Diego) -- total about 3,160 megawatts of capacity. The facilities' power output has been important for maintaining reliable operation of the recently deregulated California wholesale electricity market.

Duke Energy (NYSE:DUK) is a global energy company with more than $29 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: media-relations@duke-energy.com