News Release
Sept. 20, 1999

DEFENSE LOGISTICS AGENCY NAMES DUKESOLUTIONS“NEW CONTRACTOR OF THE YEAR”

CHARLOTTE, N.C. – The Defense Logistics Agency (DLA) named DukeSolutions, a Duke Energy subsidiary, "New Contractor of the Year" in an award ceremony on Sept. 9, 1999, in Springfield, Va. The award was presented by Stan Solloway, deputy under secretary of Defense for Acquisition Reform and Lt. Gen. Henry T. Glisson, director, DLA. One of four DLA supply centers, the Defense Energy Support Center in Fort Belvoir, Va., nominated DukeSolutions for the award based on its performance on a natural gas supply and supply management contract for the 1998 fiscal year.

DLA is the Department of Defense combat support agency that provides supply support, contract administration services and technical and logistics services to all branches of the U.S. military forces worldwide. DLA’s mission includes managing over four million consumable items, processing more than 30 million annual purchase orders and administering over $900 billion of Department of Defense and other agency contracts.

Marlies Drechsel, contracting officer for the Defense Energy Support Center Alternate Fuels Directorate, said that her agency nominated DukeSolutions for its exceptional customer service,

technical expertise and competitive pricing on natural gas deliveries to Tinker Air Force Base,

Kirkland Air Force Base and the Department of Energy Sandia and Los Alamos national laboratories. "Duke proved that they were indeed the best value through their flawless performance, timeliness and high customer satisfaction," she said.

Additionally, Drechsel noted that DukeSolutions gas supply and energy savings work at Ft. Knox, Ky., demonstrated mastery of total energy management and the benefits brought by an industry-government partnership.

DukeSolutions contract saved the U.S. government $979,236, one of the highest

savings within the Defense Energy Support Center (DESC) Natural Gas Program in Fiscal Year 1998. Drechsel noted, "DESC’s mission is to provide the Department of Defense and other government agencies with comprehensive energy support in the most effective and economical manner possible – DukeSolutions clearly helps us do this."

Mark Tourangeau, DukeSolutions manager, national accounts, said, "This award recognizes two of DukeSolutions' main strengths in the natural gas supply business – namely, national scope and excellent customer service. We have the capabilities and knowledge to manage the energy needs of a truly national customer, while providing innovative and customized service to each individual location."

Based on DukeSolutions' performance, the DESC awarded DukeSolutions a $39.4 million contract for natural gas supply and supply management services for the 1999 contract year. The contract was the largest award to a single gas supplier in the DESC’s history.

DESC is the Department of Defense material manager for all petroleum products, natural gas and coal. In addition, it has developed a deregulated electricity program and a utility systems privatization support program. Currently, it is working on increasing its support to Department of Defense installations with regard to energy conservation, specifically through the use of

energy-savings performance contracts. In addition to installation energy needs, the DESC buys, stores and distributes bulk jet fuel via tankers, barge, rail, truck and pipeline. Heating oil and ground fuels products are delivered direct by the contractor Department of Defense and Federal Civilian Agencies. Total sales in fiscal year 1998 exceeded $3.3 billion.

DukeSolutions is one of the fastest growing energy services companies in North America, with offices in 25 cities. The company helps customers make the most of their assets and increase cash flow and earnings through integrated energy solutions. Serving industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including 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  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 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: 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