News Release
Feb. 22, 2000

DUKE/FLUOR DANIEL SELECTED BY TEXAS INDEPENDENT ENERGY TO DESIGN TEXAS PLANT

CHARLOTTE, N.C. -- Duke/Fluor Daniel (D/FD) announced it has been awarded the engineering, procurement and construction contract (EPC) of the Odessa-Ector Power Project, a 1,000-megawatt, combined-cycle power plant owned by Texas Independent Energy (TIE).

Duke/Fluor Daniel will provide lump sum turnkey EPC and commissioning services for the greenfield power plant in Odessa, Texas. The contract value was not disclosed. This is the second 1,000-megawatt power plant project awarded to D/FD by TIE. An earlier project, Guadalupe, is under construction in Santa Clara, Texas.

Electricity from the Odessa-Ector Power Project will flow into the Electric Reliability Council of Texas (ERCOT) grid for sale to any of its members, which include Texas Utilities and West Texas Utilities along with numerous other utilities and co-ops across the state.

"With 2,000 megawatts of state-of-the-art technology on line by 2001, Texas Independent Energy will have the most efficient generation fleet in ERCOT," said Ray Luxton, president and general manager of Texas Independent Energy.

"We are pleased, once again, to be selected by Texas Independent Energy to assist in their strategy of producing environmentally clean, low-cost electricity," said Clarence Ray, president and CEO of Duke/Fluor Daniel.

Detailed engineering for the natural gas-fired Odessa-Ector power plant is underway, with commercial operation planned for the summer of 2001. Construction will begin this month, and at its peak, Duke/Fluor Daniel will employ more than 800 workers at the plant site.

Texas Independent Energy, a 50-50 joint venture between Panda Energy International Inc. and PSEG Global, was formed in 1999 to develop and operate high-efficiency, low-cost electric power generating plants in Texas.

Panda Energy International, a long-established privately held company headquartered in Dallas, is a recognized visionary in the development of independent merchant power plants. In addition to the Guadalupe project and a Paris, Texas, facility initiated earlier, it operates plants in North Carolina and Maryland and has additional projects under construction overseas in China and Nepal. Panda has also announced plans for a $400 million generating plant near El Dorado, Ariz., and a $200 million generating plant near Tulsa, Okla.

PSEG Global develops, owns and operates private power and distribution facilities. Currently they have 37 projects operating 5,000 megawatts, serving 25 million customers in Argentina, Brazil, Chile, China, India, Peru, the United States and Venezuela. PSEG Global (http://www.pseg.com/global/) is a subsidiary of Public Service Enterprise Group (NYSE: PEG http://www.pseg.com/). Together, PSEG Global and its N.J. utility affiliate, PSE&G, have interests in more than 15,000 megawatts of electric generating capacity and distribute power to a population of more than 10 million.

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 multi-national 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.

Fluor Daniel is the engineering, procurement and construction unit of Fluor Corporation (NYSE:FLR). In 1999 Fluor Corp. revenues were $12.4 billion. Additional information on Fluor Corp. is available on the Internet at: www.fluor.com.

Contact: Janice Carter (Panda Energy International)
Phone: 972-980-7159
24 Hour Phone: 704-382-8333
Email: media_relations@duke-energy.com
Contact: Shannon Civetta (PSEG)
Phone: 201-612-5449
24 Hour Phone: 704-382-8333
Email: media_relations@duke-energy.com
Contact: Keith Karpe (Fluor Corp)
Phone: 949-349-7661
24 Hour Phone: 704-382-8333
Email: media_relations@duke-energy.com
Contact: Liz Johnson (Duke Energy)
Phone: 713-627-5011
24 Hour Phone: 704-382-8333
Email: evjohnson@duke-energy.com