News Release
Oct. 19, 1999

CANADIAN GOVERNMENT SLASHES OPERATING COSTS VIA ENERGY PROJECTS WITH DUKESOLUTIONS

OTTAWA - Public Works and Government Services Canada (PWGSC), which manages government properties across the country, has awarded a second major energy efficiency contract to DukeSolutions Canada, the energy services subsidiary of Duke Energy. The Canadian government will save more than $13.5 million from the comprehensive energy improvements that DukeSolutions is installing in the 118,000 square meter (1.3 million square foot) Lester B. Pearson Building in Ottawa, which houses Canada's Department of Foreign Affairs and International Trade. Savings will accrue over the 20-year life of the infrastructure upgrades.

The Pearson Building program is the second largest project ever done by PWGSC under the Federal Buildings Initiative, a national program to promote efficiency and reduce energy costs in Canada's government buildings. The largest Federal Buildings Initiative project, an energy retrofit for the Major General G.R. Pearkes Building (Department of National Defence Headquarters) in Ottawa, is also being performed by DukeSolutions and is scheduled for startup in early 2000.

DukeSolutions will provide the Pearson Building with improved controls, more efficient cooling and ventilation systems, better power quality, water conservation and lighting upgrades. In addition to saving energy and cutting maintenance costs, the program will reduce carbon dioxide emissions by almost 17,000 tonnes each year, the same benefit provided by 5 million trees.

PWGSC has been a leader in implementing the Federal Buildings Initiative for its own inventory and its client agencies, according to Michael Nurse, Assistant Deputy Minister, Real Property Services. He elaborates, "PWGSC is pleased to have another successful project under way in this important federal program. We are proud of these public/private partnerships which renew our buildings, improve efficiency and save taxpayer dollars while protecting the environment and providing more comfortable working conditions."

According to Tom Tamblyn, DukeSolutions Vice President, Canada, "We learned a great deal from our implementation of the program at the Department of National Defence Headquarters with its complex systems and high security requirements." He adds, "We are delighted to have earned the confidence of the Canadian government and we will continue to deliver high-quality work and dependable energy savings. Our project management skills will play a key role in the Pearson Building, as we install diverse retrofits in a sensitive, 24-hour-per day environment."

PWGSC delivers services and programs to Canada's federal government across the country, in areas such as general standards, procurement, public access, real property services, telecommunications and Receiver General services. PWGSC acts as custodian for $6.8 billion of federal real property holdings, houses 160,000 public servants in 2,000 locations and administers 1,900 lease contracts with annual rents exceeding $440 million.

The Federal Building Initiative is a national program sponsored by Natural Resources Canada to encourage energy-saving upgrades in government buildings via partnerships with the private sector. To date, the initiative has launched over 100 energy efficiency programs across Canada.

DukeSolutions is one of the fastest growing energy services companies in North America. The company helps customers make the most of their assets and increase cash flow and earnings through integrated energy solutions. Serving more than 2,000 industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including industrial generation, energy supply and logistics, reliability and risk management, on-site utility, information management and efficiency and productivity services. DukeSolutions is a wholly owned subsidiary of Duke Energy. For more information visit http://www.dukesolutions.com.

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. For more information visit http://www.duke-energy.com.

Contact: Bryant Kinney
Phone: (704) 382-2208
24 Hour Phone: (704) 382-8333
Email: jbkinney@duke-energy.com
Contact: Rick Wirth
Phone: (704) 373-6611
24 Hour Phone: (704) 382-8333
Email: rfwirth@duke-energy.com
Contact: Tom Tamblyn
Phone: (416)512-7700
24 Hour Phone: (704) 382-8333
Email: Media_relations@duke-energy.com