News Release
Dec. 11, 2000

TEXAS EASTERN TRANSMISSION ANNOUNCES INCREMENTAL EXPANSION EXPANSION PROJECT FOR MID-ATLANTIC AND NORTHEAST SHIPPERS

Open Season Set for Dec. 11 – Jan. 12

HOUSTON -- Texas Eastern Transmission Corp. (TETCO) announced today an open season for its Texas Eastern Incremental Market Expansion, or TIME, a new project to bring additional supplies of natural gas to the growing mid-Atlantic and Northeast markets. TIME will combine unsubscribed existing capacity with incremental firm capacity to create a low-cost expansion option for Texas Eastern shippers.

During the open season (Dec. 11 -- Jan. 12, 2001) shippers can submit non-binding nominations to move gas from the Gulf Coast, Chicago/Lebanon lateral and other receipt points on the TETCO system to delivery points in the Northeast. By utilizing existing capacity that initially served Midwest markets, TIME will enable TETCO to reconfigure its existing pipeline system and with modest additions to existing facilities provide significant increased capacity to mid-Atlantic and Northeast markets at existing approved rates.

"TIME is a unique market solution that will allow our shippers to subscribe for additional capacity from liquid supply points on the TETCO system at the same competitive rate as imbedded capacity," said Robert B. Evans, president of Duke Energy Gas Transmission. "By reconfiguring existing unsubscribed capacity to meet customers' needs, TETCO can efficiently deliver cost-effective and flexible services even at lower volumes. There is no large threshold requirement."

In recent years, the Northeast and mid-Atlantic markets have experienced renewed growth in traditional markets as well as the construction of new electric generation. With its ability to bring the capacity to market quickly, TIME is well-positioned to capture this growth.

"By redirecting existing capacity and reducing, to the greatest extent possible, its reliance on new construction, TIME provides efficient market solutions while minimizing landowner and environmental impacts," Evans said. "TIME’s market-responsive features also allow phasing volumes in to meet the market's timing."

Houston-based Duke Energy Gas Transmission manages 12,000 miles of natural gas pipelines including Texas Eastern Transmission Corporation, Algonquin Gas Transmission Company, East Tennessee Natural Gas Company and with others, Maritimes & Northeast Pipeline. DEGT also owns salt cavern storage facilities in Texas and Louisiana with a total storage capacity of 23 billion cubic feet.

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: Liz Johnson
Phone: 713/627-5011
24 Hour Phone: 704/382-8333
Email: evjohnson@duke-energy.com