News Release
Oct. 11, 1999

DUKE ENERGY TO CONSIDER SELLING ITS WATER COMPANIES

CHARLOTTE, N.C. Duke Energy officials announced today a decision to evaluate selling its Anderson Water Company and Rutherford Water Company, both operated by its business unit -Diversified Businesses.

"A review of the overall strategic direction of our corporation indicates that water operations is not an area that we will continue to expand," said Robert S. Lilien, senior vice president, Diversified Businesses. "We believe that this evaluation could result in ownership by an entity that will focus on water operations as a core business."

The evaluation of selling the water companies will be through a qualification and bidding process and will be managed by A. G. Edwards & Sons, based in St. Louis, Mo.

"We will work to identify a buyer with the best set of skills and experience to ensure the continued effective delivery of reliable and economic water service," said Lilien. "We have faithfully served our customers in the Anderson and Rutherford County areas for many years and we will remain a dedicated community partner and energy provider."

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 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: Guynn Savage
Phone: (704) 382-8350
24 Hour Phone: (704) 382-8333
Email: ghsavage@duke-energy.com