News Release
Sept. 24, 1999

DUKE ENERGY RESOLVES U. S. DEPARTMENT OF LABOR AUDIT ISSUES

CHARLOTTE, N.C. – Duke Energy announced today that it has signed a conciliation agreement with the U.S. Department of Labor (DOL) resolving compensation issues among 292 of its employees. The agreement was the result of a DOL audit that reviewed information from 1996, prior to the merger of Duke Power and PanEnergy.

"We have cooperated with the DOL in every way possible to address the issues they identified with our compensation system," said Ruth G. Shaw, executive vice president, corporate administration. "We view our hiring, professional development and compensation systems as having been designed and administered in good faith and that they have been instrumental in furthering equal employment opportunities throughout our corporation. However, while we may disagree with the methodology the DOL used in reviewing our compensation system to reach their conclusion, a ‘no fault’ conciliation agreement is in the best interest of the company and our employees."

The DOL did not identify issues with Duke Power’s programs and performance relative to hiring, promotions and overall representation in the employee population. However, based on DOL’s interpretation of job classifications, the agency identified some areas of what it considered to be lower compensation for some white females and some black males than their white male or black female counterparts in similar positions.

Duke Energy has agreed to make payments totaling $257,700 to 252 white females, 32 black males and eight other minority males. The company will communicate with affected employees and meet the terms of the agreement.

The company has also budgeted $250,000 to develop additional compensation monitoring systems. The agreement also recognizes $500,000 the company has paid since 1996 in self-identified and -administered equity adjustments to 96 employees as a part of the company’s ongoing compensation practices.

"We will honor our agreement with the DOL quickly and responsibly," said Shaw. "We will continue to focus our efforts on ensuring our systems sustain a workplace in which all employees are encouraged and empowered to excel."

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