News Release
Feb. 02, 2000

GE Power Systems to Supply $4 Billion in Equipment and Services To Duke Energy North America

SCHENECTADY, N.Y., Feb. 2 -- In one of the largest commitments of its type in the history of the U.S. power industry, GE Power Systems today announced that it has completed a multi-year effort and secured agreements totaling nearly $4 billion to supply power generation equipment and services to Duke Energy North America. (Photo: http://www.newscom.com/cgi-bin/prnh/20000202/NYW033 )

The agreements consummate more than two years of negotiation for the supply of equipment and services that will be used to meet unprecedented electric growth in the U.S. market. The agreements cover the purchase of 84 gas turbines, 17 steam turbines and long-term services agreements for up to 23 merchant power plants across the country.

When completed, the power plants will produce more than13 gigawatts of power for the wholesale U.S. market. The units ordered by Duke Energy North America represent enough electricity to power up to six million homes. Duke Energy North America, a subsidiary of Duke Energy, is a leading developer, owner and manager of wholesale merchant power plants in North America.

GE gas and steam turbines, with their associated auxiliary equipment, have been shipped to four projects currently under construction. In addition, construction activities will begin on six more projects during the first half of 2000 with subsequent turbine and auxiliary equipment shipments to support summer peaking requirements in 2001 and 2002,respectively.

The remaining equipment will be shipped from 2000 through 2002with the intent of supporting the regional summer load growth in several U.S. markets. The services agreements will provide major maintenance and spare parts over a 12-year period from the date of installation on the Duke Energy North America projects.

"We are very excited to play a leading role in Duke Energy North America's commitment to bring their customers more efficient, more environmentally friendly power," said Robert L. Nardelli, president and chief executive officer of GE Power Systems. "Duke Energy North America needs to provide reliable and efficient power at the lowest possible life cycle costs, and we are confident that both our technology and our long-term services capabilities will help Duke Energy North America in this effort."

All of the GE gas turbines included in the agreement with Duke Energy North America will be equipped with advanced Dry Low NOx (DLN) combustion systems for emissions control. GE is the only gas turbine manufacturer that can guarantee nitrogen oxide levels of 9 parts per million. The GE DLN systems also produce extremely low levels of other gaseous emissions such ascarbon monoxide and volatile organic compounds.

"The combination of the GE turbine initiative and the services agreements adds to Duke Energy North America's first mover advantage, allowing us to enter markets early knowing we have equipment ready to back up our development efforts. The new services agreement further secures our position and ability to maintain and operate our facilities at optimal levels," said James M. Donnell, president and chief executive officer, Duke Energy North America. "With the GE partnership we have again capitalized upon market timing. It is the same market philosophy that we bring to managing our generation portfolio."

GE's ability to supply cost-effective, long-term services played a key role in winning these commitments from Duke Energy North America. Ricardo Artigas, president of GE Energy Services, the global services arm of GE Power Systems, explained: "When facing the competitive pressures of deregulation, power producers want service relationships with companies that can help them extract the greatest sustained efficiency and reliability from their power plants. With our global resources and experience, we are uniquely positioned to offer the industry's most aggressive and comprehensive program of services for energy facilities ranging from large land-based power plants to remote offshore oil platforms. "

A long-term services contract meets the expectations of the customer by bringing together advanced GE technology and Six Sigma Quality practices to assure maximum power plant equipment performance, reliability and availability throughout the life cycle of the plant," Artigas added.

Equipment and Project Description The commitments from Duke Energy North America include 36 7FA advanced technology gas turbine-generators and up to 48 7EA gas turbine-generators, plus 17 steam turbines.

The following projects have been specifically identified:

-- GE will supply a STAG(TM) 207FA combined-cycle system, consisting of two 7FA gas turbine-generators and one steam turbine-generator, to Duke Energy North America for the Maine Independence Station power plant in Veazie, Maine, near Bangor.

Contact: Bryant Kinney
Phone: 704-382-8333
24 Hour Phone: 704-382-8333
Email: jbkinney@duke-energy.com