News Release
Sept. 09, 1999

DUKE POWER COMPLETES Y2K DRILLS

CHARLOTTE, N.C. – Duke Power employees took a large bite out of the Year 2000 computer issue during Y2K exercises held on September 8 and 9.

"We are meeting our objectives," said Richard J. Osborne, executive vice president and corporate sponsor of Duke Energy's Year 2000 Readiness Program. "We looked at how we would respond to and manage Y2K events across the corporation, and our initial results give us increased confidence that our Y2K readiness efforts and response plans are on target."

More than 300 Duke Power employees participated in the Y2K exercises in coordination with utilities across the country. The North American Electric Reliability Council (NERC) coordinated the nationwide exercise. In addition, another 200 employees in about 15 Duke Energy business units – gas pipelines, national and international units and trading and marketing, for example – are also conducting Y2K drills that will be completed later today.

For the NERC portion of the exercise, which ended early this morning, Duke Power employees responded to more than 40 simulated Y2K events. Some employees were dispatched to key electric facilities in simulated loss-of-communications events to collect data and relay information to the company’s operations centers. Other groups used teleconferencing to coordinate strategies and satellite phones to communicate with other utilities and with NERC.

"This was a good dress rehearsal for our electric operations," Osborne said. "We didn’t find major flaws in our response plans, but we did identify some areas for improvement." Osborne noted, for example, that the varied scenarios – from power outages to plant shutdowns – gave personnel significant challenges in identifying the most efficient information pathways.

"We’ll use the experience to refine our processes to make sure the right information gets to the right people as quickly as possible," Osborne said.

Osborne added that business units will do detailed evaluations of their exercise results to identify areas for improvement. The company plans additional drills during the remaining months of the year in preparation for the January transition.

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 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: www.duke-energy.com

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