News Release
Jan. 10, 2000

DUKE/FLUOR DANIEL TO BUILD PRIMARY ENERGY FACILITY AT LTV’S INDIANA HARBOR PLANT

EAST CHICAGO, IND.–Primary Energy Inc. and Duke/Fluor Daniel (D/FD) today announced that they have signed an agreement to develop, engineer and construct a blast furnace gas-fired cogeneration facility at LTV’s East Chicago plant.

The plant, to be built at LTV’s Indiana Harbor Works, will generate 50 megawatts of energy primarily from byproduct fuels but also will use some natural gas. The project cost is estimated at $60 million and is scheduled to begin construction in the spring of 2000 with completion in fall 2001.

"This is yet another example of Primary Energy and D/FD’s collective commitment to find solutions to customers’ needs in the domestic energy market," said Clarence Ray, president of Duke/Fluor Daniel.

This project will enable Primary Energy, a subsidiary of NiSource Inc., to generate electricity by using existing byproduct fuels.

The new cogeneration facility is designed to reduce operating costs and provide a reliable, low-cost source of electric power for LTV. LTV will be responsible for the operation and maintenance of Primary Energy’s facility.

"Primary Energy has set a standard of service based on our customers’ expectations that we will help them control energy costs," said Gary Neale, NiSource, Inc. chairman, president and chief executive officer.

"This project allows for the expansion of clean power technologies without construction of significant new infrastructure," said Joe Turner, president of Primary Energy. "In addition, the existing electric capacity that will be freed up from the system will be utilized by Northern Indiana Public Service Company’s growing customer base throughout northern Indiana."

This partnership between Primary Energy and D/FD has resulted in four projects to date and more than 850 megawatts of generating capacity. Additional facilities previously developed by Primary Energy and with EPC services provided by D/FD include:

LTV is a leading producer of value-added flat-rolled steel for demanding applications in the automotive, appliance and electrical-equipment industries. LTV is also the leading producer of welded tube products, bimetallic wire, and a major manufacturer of pre-engineered metal buildings.

Primary Energy, Inc., a wholly owned subsidiary of NiSource Inc., invests in and manages projects that optimize energy productivity, while reducing operating costs for large, energy-intensive industrial and commercial complexes. Primary Energy specializes in on-site electric and steam-generating facilities and acts with strong customer focus to assure its customers’ objectives are being met. Primary Energy currently has 393 MW of generation and has contracts for an additional 575 MWs. Target markets include the steel, refining, chemical, food products and pulp and paper industries in North America. Information about Primary Energy is available via the Internet at www.primaryenergy.com.

NiSource Inc. (NYSE:NI) is a holding company whose primary business is the distribution of electricity, natural gas and water in the Midwest and Northeast United States. The company also markets utility services and customer-focused resource solutions along a corridor stretching from Texas to Maine. Additional information may be accessed on the Internet at www.nisource.com.

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

Duke Energy Corporation (NYSE: DUK) is a global energy company with more than $29 billion in assets. Headquartered in Charlotte, the company reaches into more than 50 countries producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to approximately two million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the internet at: www.duke-energy.com.

Fluor Daniel Inc. is the engineering, procurement and construction subsidiary 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.

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