News Release
Aug. 22, 2000

DUKE/FLUOR DANIEL REPORTS LOSS ON MICHIGAN PROJECT

CHARLOTTE, N.C. – Duke/Fluor Daniel (D/FD) reported today that it will incur a financial loss on a 730-megawatt power plant project at the Rouge complex in Dearborn, Mich. D/FD is providing engineering, procurement, construction, commissioning, start-up and testing services for the project.

D/FD is a partnership of Duke Energy and Fluor Daniel. For its share of the partnership, Duke Energy will take approximately a $40 million charge against third-quarter earnings. Previous loss estimates were accounted for earlier this year.

"This event will not be material to Duke Energy’s earnings and will not affect our earnings target for the year," said Richard J. Osborne, chief financial officer for Duke Energy. "We are confident that the events creating the loss from this project are isolated and D/FD will continue to be a solid contributor to the tremendous growth our Energy Services businesses are achieving."

D/FD is the world's leading fossil-fueled, power generation contractor based on revenues. In the second quarter, the company announced the execution of three contracts for plants totaling approximately 1,800 megawatts to be located in the eastern United States. D/FD completed construction and the start-up commissioning on four new Duke Energy North America (DENA) facilities in June and began construction on two new plants for DENA. D/FD serves as the operator of DENA’s newly commissioned Maine Independence Station and has assumed full operations of three DENA facilities in California totaling 2,617 megawatts.

Duke/Fluor Daniel, formed in 1989 by Duke Energy and Fluor Daniel, provides comprehensive engineering, procurement, construction and operating plant services for fossil-fueled electric power generation facilities worldwide.

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: Paul Mason
Phone: 704/373-4512
24 Hour Phone: 704/382-8333
Email: pemason@duke-energy.com
Contact: Jeremy Dreier
Phone: 704/382-8343
24 Hour Phone: 704/382-8333
Email: jwdreier@duke-energy.com