News Release
Aug. 21, 2000

HISTORY OF ‘BIG INCH’ AND ‘LITTLE BIG INCH’ PIPELINES NOW ON DISPLAY

Duke Energy-Acquired Pipelines Credited With Bolstering World War II Effort Inch Lines called "The Most Amazing Government-Industry Cooperation Ever Achieved"

HOUSTON – A 20-minute video and a booklet documenting the historic World War II role of two pipelines long-owned and operated by affiliates of Duke Energy (NYSE: DUK) are available to the public in nine states beginning today.

Included in the materials relating the story of the 24-inch and 20-inch diameter pipelines respectively known as the "Big Inch" and the "Little Big Inch" are a video called "Inch Lines Go to War" and a booklet titled "The Big Inch and Little Big Inch Pipelines – The Most Amazing Government-Industry Cooperation Ever Achieved."

The video and booklet are on display in state and local libraries, state and local historical societies and state historic preservation offices in Texas, Arkansas, Missouri, Illinois, Indiana, Ohio, West Virginia, Pennsylvania and New Jersey – the nine states traversed by the two pipelines.

"The Inch Lines were built during a period of extreme national emergency," said Robert B. Evans, president of Duke Energy Gas Transmission (DEGT). "The lines were a major part of the U.S. war effort and represented a significant achievement in pipeline technology in terms of sheer size and scope. The Big Inch and Little Big Inch represented an outstanding accomplishment in efficient and rapid corporate organization and industry-government cooperation."

The Inch Lines were built in 1942-43 for the U.S. government by War Emergency Pipelines Inc. for the purpose of transporting crude oil from the prolific oil fields of East Texas and refined petroleum products from the Gulf Coast to refining and distribution areas near New York City and Philadelphia.

The lines served as a transportation alternative to tankers that were sunk by German submarines. The Inch Lines also supplied large volumes of export petroleum to the East Coast so that the small number of surviving tankers could meet the demands of the European war fronts with the shorter-haul distance across the Atlantic.

At the end of the war, the Inch Lines became part of the war surplus property. Formal bids were submitted in early 1947 with the winning bid going to Texas Eastern Transmission Corp. (TETCO). After the sale, the Inch Lines were converted for the transmission of natural gas. The portion of the Inch Lines currently owned by TETCO is part of a 10,300-mile pipeline system connecting Gulf Coast-area natural gas supplies with markets in the Gulf Coast, Central, Mid-Atlantic and New England states.

DEGT operates 12,000 miles of natural gas pipelines that include TETCO, Algonquin Gas Transmission Co., East Tennessee Natural Gas Co. and with other partners, Maritimes & Northeast Pipeline. Together, these companies transport 8 percent of the natural gas consumed in the United States.

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: Gretchen D. Krueger
Phone: 713/627-4072
24 Hour Phone: 704/382-8333
Email: gdkrueger@duke-energy.com