News Release
Sept. 22, 1999

DUKESOLUTIONS AWARDED $28 MILLION ENERGY PROJECT FOR VETERANS AFFAIRS

CHARLOTTE, N.C. – DukeSolutions, the energy services subsidiary of Duke Energy, has been awarded an order to provide energy efficiency products and services at eight Veterans Affairs Medical Centers in Virginia, West Virginia and North Carolina, under a contract announced by the Veterans Integrated Services Network 6 (VISN-6).

Under an Energy Savings Performance Contracting (ESPC) program administered by the U.S. Army Engineering and Support Center in Huntsville, Ala., DukeSolutions will initially invest $28 million in building systems improvements during the next year. Also included in the contract are services to insure the energy efficient status of the new equipment for the life of the eighteen-year performance period.

The project is entirely funded from energy and energy-related savings resulting from DukeSolutions’ investments. The VA Mid-Atlantic Health Care Network will repay DukeSolutions from the resultant energy savings, which would have otherwise paid the cost of inefficient utility usage. Upgrades will span every major energy cost reduction opportunity from boilers and chillers to laundries and water systems. "DukeSolutions will modernize our facilities and improve the care and comfort we provide to more than 180,000 veterans every year," says Gerard Husson, acting director of VISN-6. "By using DukeSolutions’ financing for energy and infrastructure work, we can direct our budget dollars to health care and vital services for veterans."

With this project, VISN-6 has now surged forward in meeting the energy reduction goals of President Clinton’s Executive Order 13123, Husson added. The order issued in July 1999 sets energy consumption reduction targets for federal agencies at 35 percent of 1985 consumption by the year 2010.

"DukeSolutions is pleased to be an energy service provider to the federal government, the largest energy consumer in the United States," says Charles Watkins, DukeSolutions’ president. "Our comprehensive engineering and financial solutions are cutting the government’s energy costs and renewing infrastructure with no initial investment of taxpayer money."

Officials also acknowledge that reduced energy consumption at major facilities lowers the emission of greenhouse gases into the atmosphere resulting from the generation of electricity, offering an additional benefit to the ESPC users. The program is available to all federal and state agencies throughout the United States that are interested in private sector investment in energy efficiency projects.

The award is the result of more than 27 months of intensive evaluation of energy systems at the medical centers by DukeSolutions’ engineers in partnership with the U.S. Army Corps of Engineers Huntsville Center and the facilities and engineering teams at each location.

One of 22 health care networks within the Department Veterans Affairs, VISN-6 serves the state of North Carolina, 106 counties in Virginia, 11 counties in West Virginia and two counties in South Carolina. The VISN’s annual budget is approximately $700 million and it employs 9,000 full-time staff. Approximately 1.2 million veterans reside in VISN-6 service area that covers 85,000 square miles. The network provides accessible, comprehensive and compassionate health care services of superior quality for America’s veterans. For more information visit http://www.va.gov/stations97/guide/facility.asp?ENTITY=regional&ID=6 

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 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