News Release
April 18, 2000

DUKE ENERGY INTERNATIONAL ACQUIRES VICTORIAN POWER PROJECT

Duke Energy International (DEI) has purchased a 43MW power plant project in Bairnsdale, Victoria, from Westcoast Energy Australia and Texas Utilities.

The acquisition includes the development rights for the Bairnsdale Power Plant, comprising an LM6000 open cycle gas turbine and associated infrastructure, to be built and operating in 2001, and a Static Var Compensator which is already in service.

DEI Managing Director Michael McDanold said the project would strengthen the region’s electricity supply system which was under pressure during high load conditions. He said the project offered an attractive alternative to the 150km, 220kV transmission line from the Latrobe Valley to Bairnsdale.

"The plant will assist both the local transmission system in the Bairnsdale area and is available to provide peaking capacity for the Victorian power market," he said.

Mr. McDanold said the acquisition supported DEI’s strategy of building market-driven integrated energy projects which facilitated competition and industrial growth.

Gas will be supplied to the Bairnsdale Power Plant by DEI’s Eastern Gas Pipeline, a 795kmnatural gas pipeline to be completed in time for the Sydney 2000 Olympics. Work on the Victorian leg of the pipeline started at Longford and at the New South Wales/Victorian border in February.

The power plant will be constructed by IHI Engineering Australia and DEI will be investigating future expansion of the facility to support the growing capacity needs of the Victorian power market.

DEI, a wholly owned subsidiary of Duke Energy, is one of the world’s leading international energy companies offering energy trading and marketing, risk management, natural gas and power development expertise and operations services across Latin America, Europe and the Asia Pacific. DEI’s Asia Pacific energy portfolio includes 984 miles (1585km) of natural gas pipelines in operation and under construction; 780 gross megawatts of thermal power generation; and energy trading and marketing located in Australia, New Zealand and Indonesia.

Duke Energy, a diversified multi-national energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses - generating revenues of nearly US$22 billion in 1999. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at: www.duke-energy.com or www.duke-energy.com.au

Contact: Michelle Barry
Phone: 07-3334-5864
24 Hour Phone: 704-382-8333
Email: mlbarry@duke-energy.com