News Release
Oct. 27, 1999


HOUSTON -- Duke Energy Merchants and Arch Coal, Inc. (NYSE: ACI) jointly announced today that the two companies had signed a terminal throughput agreement. Under the long-term agreement, Duke Energy Merchants’ carbon group will receive throughput services at the Arch Coal Terminal in Catlettsburg, Kentucky. No further terms of the arrangement were disclosed.

The dock’s location in the Central Appalachian market hub offers Duke Energy Merchants a strategic platform in the eastern coal market.

"Obtaining the throughput agreement at this dock is strategically advantageous for Duke Energy Merchants as we build infrastructure to buy, store, blend and market coal," said Steve Hill, executive vice president of Duke Energy Merchants’ carbon group. "Through the availability of storage and blending opportunities, we can tailor products for our end users as well as providing hedging services for local producers."

Arch Coal Terminal is located on the Big Sandy River seven miles from its confluence with the Ohio River. The Arch Coal terminal will continue to serve the terminal needs of Arch Coal Sales, Arch’s sales and marketing arm, and to provide terminal services through other third-party arrangements.

Arch Coal is one of the nation’s largest coal producers, with subsidiary operations in West Virginia, Kentucky, Virginia, illinois, Wyoming, Colorado and Utah. Through these operations, Arch Coal provides the fuel for approximately 6% of the electricity generated in the United States.

Duke Energy Merchants is one of North America’s largest marketers of natural gas, wholesale electric power and related energy services.

Duke Energy Corporation (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:

Contact: Liz Johnson
Phone: (713) 627-5011
24 Hour Phone: (704) 382-8333