News Release
Dec. 14, 2000

DUKE ENERGY SELLS INTEREST IN OKLAHOMA MERCHANT POWER FACILITY

HOUSTON – Duke Energy business unit Duke Energy North America (DENA) today announced the sale of a 23-percent interest in a 500-megawatt merchant power plant under construction in McClain County, Okla., to the Oklahoma Municipal Power Authority (OMPA). Terms of the transaction were not disclosed.

DENA’s McClain Electric Generating Station is a combined-cycle, natural gas-fired merchant generation facility near Newcastle, Okla. Construction of the facility began in March, with commercial operation anticipated in summer 2001. DENA’s generation portfolio currently includes approximately 6,200 megawatts in operation, seven facilities under construction totaling 4,300 megawatts and 12,500 megawatts in advanced development scheduled for commercial operation by summer 2003.

"This transaction is another example of how Duke Energy's core commercial, development, engineering and construction skills enable the company to deliver quality projects to the regions where the demand is the greatest," said Jim Donnell, president and chief executive officer of DENA. "It also highlights how active portfolio management provides Duke Energy the opportunity to capitalize on being first to market."

"This purchase fits well into OMPA’s generation portfolio, serving as a highly efficient, quick-starting intermediate load unit on the OMPA system," said Harry Dawson, general manager of OMPA. "This is an opportunity for OMPA to acquire an interest in a modern, highly efficient gas-fueled plant, while benefiting from the economies of scale of a larger plant and the construction and operational experience of a company such as Duke Energy."

The McClain facility is being developed by a wholly owned subsidiary of DENA. The 23-percent interest sale to OMPA is expected to close by end of first quarter 2001.

Oklahoma Municipal Power Authority is an agency of the State of Oklahoma created by the legislature to serve cities and towns that own and operate their electric distribution systems and is governed by the members. OMPA presently supplies wholesale power to 35 municipally owned electric systems in Oklahoma, serving approximately 100,000 customers. More information is available on the Internet at: www.ompa.com.

Duke Energy North America (DENA) is Duke Energy’s Houston-based merchant energy company.

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: Jennifer Pierce
Phone: 713/627-5719
24 Hour Phone: 704/382-8333
Email: jmpierce@duke-energy.com
Contact: Drake Rice, OMPA
Phone: 405/340-5047, ext. 210
24 Hour Phone: 704/382-8333
Email: media_relations@duke-energy.com