News Release
Nov. 17, 1999

PRIMARY ENERGY-DUKE/FLUOR DANIEL COGENERATION PLANT AT GARY WORKS WINS NATIONAL RECOGNITION

CHARLOTTE, N.C - Duke/Fluor Daniel (D/FD) and NiSource Inc. subsidiary Primary Energy Inc. have garnered industry attention after U. S. Steel Gary Works’ employees were awarded the Association of Iron and Steel Engineers’ (AISE) Project Excellence Award for 1999.

The prestigious award was presented at a recent dinner ceremony at the Radisson Star Plaza in Merriliville, md., in recognition of the high level of success that has resulted from the installation of a 161-megawatt cogeneration plant at the Gary Works facility.

The Gary Works facility is one of many projects performed in turnkey fashion by Duke/Fluor Daniel under the D/FD-Primary Energy alliance relationship.

AISE’s recognition identifies the U.S. Steel-Primary Energy cogeneration project as the top engineered project in the steel industry in 1999. There were no qualifying projects last year, making this only the second time the award has been presented since its inception in 1997.

"We are especially proud to have provided turnkey engineering, procurement, and construction services in cooperation with our partner, Primary Energy, for a project recognized nationally by AISE," said Clarence Ray, Jr., president and CEO of Duke/Fluor Daniel. Duke/Fluor Daniel and Primary Energy have performed projects in an alliance relationship since 1992. The Gary Works project was the fourth in a series of eight successful efforts undertaken by the alliance partners to date.

The Project Excellence Award application and paper was prepared and presented to AISE by U.S. Steel’s Richard M. Moroney, senior process engineer, and Ronald C. Olson, area manager-Energy Distribution & Facility Development, who served as co-project coordinators for U. S. Steel. Their paper outlines the joint-venture cogeneration project to convert coke oven and blast furnace gasses into electricity. It describes the design, construction and management of the cogeneration plant by Duke/Fluor Daniel, which has been in commercial operation since August 1997. Primary Energy is the owner of the cogeneration plant, which is maintained by U.S. Steel.

"The project has experienced enormous success, not only in terms of AISE selection criteria, but in terms of real-world application and resulting cost savings at Gary Works," Charles R. Smith, division manager — operations services for U.S. Steel Gary Works, said.

It is particularly rewarding to see the design concept and innovation culminate in a finished product that is recognized nationally by the iron and steel industry," said Ron Barnes, senior vice president — operations, Duke/Fluor Daniel.

Primary Energy Inc., a wholly owned subsidiary of NiSource (NYSE:NI), invests in and manages projects that optimize energy productivity, while reducing operating costs for large, energy-intensive industrial and commercial complexes. Primary Energy specializes in on-site electric and steam-generating facilities, and acts with a strong customer focus to assure its customers’ objectives are being met. Target markets include the steel, refining, chemical, food products, and pulp and paper industries in North America.

Duke/Fluor Daniel, formed in 1989 by Duke Energy Corporation and Fluor Daniel, Inc. provides comprehensive engineering, procurement, construction, and operating plant services for fossil-fueled electric power generation facilities worldwide.

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.

Fluor Daniel, Inc. is the engineering, procurement and construction subsidiary of Fluor Corporation (NYSE:FLR). In 1998, Fluor Corporation revenues were $13.5 billion.

Contact: Dean H. Hall
Phone: (219)647-6071
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com
Contact: Liz Johnson
Phone: (713)627-5011
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com
Contact: Maria Hibbs
Phone: (219) 647-6201
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com
Contact: Keith Karpe
Phone: (949)349-7661
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com