News Release
Sept. 02, 1999

DUKE ENGINEERING & SERVICES AND MORRISON KNUDSEN SHARE IN $200 MILLION CONTRACT

Charlotte, N.C. -- Duke Engineering & Services Inc. (DE&S) announced today that SGT Ltd. (Steam Generating Team), a company jointly owned by DE&S and Morrison Knudsen (MK), has been awarded a contract valued at more than $200 million by Duke Power for steam generator replacement.

SGT will install replacement steam generators in the three units of Duke Power’s Oconee Nuclear Station near Seneca, S.C. DE&S will provide additional support for licensing, replacement steam generator procurement and other activities being performed by Duke Power.

"Outsourcing these tasks will minimize impact to Duke Power’s nuclear generation department during the extensive planning and engineering phases of the project, as well as to the station organization during the replacement outages," said Michael Tuckman, executive vice president of nuclear generation for Duke Power.

SGT specializes in steam generator replacement projects. It recently completed similar projects for Point Beach and St. Lucie nuclear plants, and is currently performing replacement services for Calvert Cliffs Nuclear Plant, units 1 and 2.

"SGT’s combination of experience, including Duke’s Catawba and McGuire steam generator replacements, success with steam generator replacements for other utilities and our parent company association with Duke Energy uniquely qualifies the team for Oconee’s steam generator replacement project," said William A. Fox, vice president of major projects and technologies for DE&S’ nuclear group. "We look forward to putting our experience and resources to work on behalf of Duke Energy."

Present plans call for replacements during extended refueling outages, beginning with unit 1 in September 2003, unit 2 in March 2004 and unit 3 in October 2004. Each replacement outage is scheduled for 75 days.

Morrison Knudsen has 23,500 employees in more than 35 countries. The company is an engineer and constructor serving the power, heavy civil, environmental, industrial, mining, operations and maintenance, process and transportation markets.

DE&S provides full-scope engineering, technical and professional services to clients worldwide, and has experience with all phases of nuclear generation. DE&S currently performs work at more than 90 percent of operating U.S. nuclear reactors and supports a number of U.S.

Department of Energy programs. Headquartered in Charlotte, N.C., DE&S is an independently operated business affiliate of Duke Energy. The company manages 27 U.S. business offices, 17 international offices and has projects under way in more than 50 countries.

Duke Power, a business unit of Duke Energy, is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity to nearly two million customers in North Carolina and South Carolina. Duke Power operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system capability is 19,252 megawatts.

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: Christy Phillips
Phone: (704) 382-3403
24 Hour Phone: (704) 382-8333
Email: media-relations@duke-energy.com