News Release
Oct. 13, 1999

TEXAS INDEPENDENT ENERGY AWARDS DUKE/FLUOR DANIEL DESIGN/CONSTRUCTION OF A ONE GIGAWATT POWER PLANT IN TEXAS

CHARLOTTE, N.C., October 13, 1999 -- Duke/Fluor Daniel announced today that it has been selected by Texas Independent Energy to provide turnkey engineering, procurement, construction and start-up services for a 1,000-megawatt, greenfield power plant located in Santa Clara, Texas. This project is Texas Independent Energy’s (TIE) first power plant to receive financing. TIE is a joint venture between Panda Energy International, Inc. and PSEG Global. Duke/Fluor Daniel’s contract value was not disclosed.

"This power plant is characterized by its advanced technology which produces environmentally clean, low-cost energy and will require one-third less fuel and water as compared to conventional power plants," said Ralph Killian, Executive Vice President of Panda and a member of the management committee for the new joint venture.

"Based on our reference power plant design, the Guadalupe Power Project is our fifth merchant power plant we are building in Texas," said Clarence Ray, president and CEO of Duke/Fluor Daniel.

Detailed engineering for the combined cycle power plant is under way, with commercial operation of Phase I scheduled for December 2000. Construction began this summer, and, at its peak, Duke/Fluor Daniel will employ more than 800 workers at the plant site.

Texas Independent Energy, a 50-50 joint venture between Panda Energy International, Inc. and PSEG Global, was formed in 1999 to develop and operate high efficiency, low-cost electric power generating plants in Texas. In addition to the Guadalupe County facility, Texas independent Energy has announced 1,000 MW generating facilities in Archer and Ector counties in Texas.

Panda Energy International, a long-established privately held company headquartered in Dallas, is a recognized visionary in the development of independent merchant power plants. In addition to the Guadalupe Project and a Paris, Texas facility initiated earlier, it operates plants in North Carolina and Maryland and has additional projects under construction overseas in China and Nepal. Panda has also announced plans for a $400 million generating plant near El Dorado, Arkansas and a $200 million generating plant near Tulsa, Oklahoma.

PSEG Global develops, owns, and operates private power and distribution facilities with 37 projects operating 5,000 MW to 25 million customers in Argentina, Brazil, Chile, China, India, Peru, the U.S. and Venezuela. PSEG Global is a subsidiary of Public Service Enterprise Group (NYSE: PEG). Together, PSEG Global and its NJ utility affiliate, PSE&G, have interests in more than 15,000 MW of electric generating capacity and distribute power to a population of more than 10 million.

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

Duke Energy Corporation (NYSE:DUK) is a global energy company with more than $29 billion in assets. Duke Energy companies provide electric service to about 2 million customers; operate pipelines which deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally, the companies develop, own and operate energy facilities, and provide engineering, management, operating and environmental services.

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

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