News Release
Aug. 02, 2000

DUKESOLUTIONS TO REDUCE ENERGY COSTS AT CHARLESTON AIR FORCE BASE

CHARLOTTE, N.C. – DukeSolutions will design, install and finance energy-savings measures at Charleston (South Carolina) Air Force Base through a $9.2 million energy-savings performance contract administered by the U.S. Army Corps of Engineers Engineering and Support Center, Huntsville, Ala. The measures implemented by DukeSolutions will significantly reduce energy costs at the base and enhance the quality of life for airmen and families stationed there.

In addition to creating savings by improving lighting and energy control mechanisms at the base, DukeSolutions will install 1,000 geothermal heat pumps in family housing units there to improve energy efficiency and eliminate the risk of carbon monoxide exposure. Geothermal units harness the energy of the earth to heat and cool structures using significantly less energy than a conventional fossil-fuel burning heat pump.

Under the performance contracting program initiated by the Department of the Army, an energy services company such as DukeSolutions pays for and installs energy-saving technologies at federal facilities, at no up-front cost to the Air Force. In turn, DukeSolutions receives a share of the savings realized when energy bills are reduced.

Charleston Air Force Base will save an estimated $840,000 a year under the contract. Energy savings, not taxpayer money, will be used to finance the projects.

The work performed under the contract will help Charleston Air Force Base to address two key initiatives. "Our partnership with DukeSolutions promotes energy efficient climate control for our military family housing residents which immediately improves their quality of life and enhances our proven record of stewardship for the environment," said Lt. Col. Jon A. Roop, commander, 437th Civil Engineering Squadron.

Additionally, the contract will enable Charleston Air Force Base to comply with Executive Order 13123, whereby the Air Force, as well as government agencies, must reduce energy use 30 percent by 2005 and 35 percent by 2010 (based on 1985 emissions). Charleston Air Force Base will achieve at least 80 percent of its goal by the end of this project.

"We could not have finalized a contract of this magnitude without the exceptional spirit of cooperation between the U.S. Army Corps of Engineers and DukeSolutions," said Keith G. Butler, chief operating officer, DukeSolutions. "Charleston Air Force Base will realize savings, comfort and safety at an accelerated scheduled as a result."

Charleston Air Force Base, home of the 437th Airlift Wing, is located about 10 miles from downtown Charleston on approximately 3,500 acres of land within the North Charleston city limits. The base also is responsible for other property in South Carolina including a radar site at Jedburg, an airstrip at North Auxiliary Airfield near Orangeburg and off-base housing in the North Charleston area.

As part of the Air Mobility Command, Charleston AFB provides the Global Reach that makes the U.S. Air Force the most effective in the world. Charleston AFB is aligned under the 21st Air Force, headquartered at McGuire Air Force Base in New Jersey, and is part of the Air Mobility Command (AMC) located at Scott Air Force Base, Illinois. Charleston AFB supports AMC's mission by providing airlift, special air mission, and aeromedical evacuation for U.S. forces worldwide. Charleston AFB also supplies forces to theater commands to support AMC's wartime tasking.

DukeSolutions is one of the leading energy services companies in North America. The company helps customers make the most of their assets and increase cash flow and earnings by providing integrated energy solutions that reduce costs and improve energy efficiency. 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, a premier global energy company. Additional information about the company is available on the Internet at http://www.dukesolutions.com.

Duke Energy, a diversified multinational 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 $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.

Contact: Rick Wirth
Phone: 704/373-6611
24 Hour Phone: 704/382-8333
Email: rfwirth@duke-energy.com
Contact: Vernon Meacham (Harmony Products)
Phone: 757/523-2849
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com