Released By Duke Energy, Williams,KeySpan News Release
July 21, 2000

Cross Bay Pipeline Files Application With FERC

HOUSTON — Cross Bay Pipeline Company, L.L.C., a limited liability company formed by subsidiaries of Williams (NYSE:WMB), Duke Energy (NYSE:DUK) and KeySpan Corporation (NYSE:MN), has announced the filing of an application with the Federal Energy Regulatory Commission (FERC) to increase natural gas deliveries into the New York City metropolitan area by 125,000 dekatherms per day.

At a cost of $59.5 million, the Cross Bay project will include the transfer of ownership of approximately 37 miles of Williams’ existing Transco Lower New York Bay Extension to the L.L.C.; an expansion of those existing facilities through construction of a 16,000 horsepower compressor station in Middlesex County, N.J.; pipe replacement; and system modifications.

Once the compressor station construction and pipeline modifications are completed, the Cross Bay facilities will form a new interstate pipeline system extending from Middlesex County across Lower New York Bay all the way to Nassau County, N.Y. The pipeline will have a total capacity of more than 600,000 dekatherms per day, of which 125,000 dekatherms per day of incremental capacity will be available to Cross Bay shippers.

"By expanding the capacity of these existing facilities, Cross Bay Pipeline Company will be able to create an important gas transportation alternative for New Jersey and New York markets in an economical, efficient manner with minimal impact on the environment," the project partners said.

Williams and Duke Energy each have a 37.5 percent ownership interest in Cross Bay, while KeySpan owns 25 percent. Construction is scheduled to begin in July 2001. The project has a proposed in-service date of Dec. 1, 2002.

Williams, through its subsidiaries, connects businesses to energy and communications. The company delivers innovative, reliable products and services through its extensive networks of energy-distributing pipelines and high-speed fiber-optic cables. Williams information is available at www.williams.com.

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

KeySpan Corporation is a holding company including two utilities that distribute natural gas to 1.6 million customers in New York City and on Long Island. The merger with Eastern Enterprises (NYSE:EFU) would make KeySpan Energy the largest natural gas distribution company in the Northeast with 2.4 million customers. Other KeySpan companies market a portfolio of unregulated energy-related services in the Northeast, operate electric generation plants on Long Island and in New York City, and provide operating and customer services to one million electric customers of the Long Island Power Authority. KeySpan also has investments in gas exploration and development, primarily through The Houston Exploration Company (NYSE: THX); domestic pipelines and storage; and international activities, including gas processing in Canada, and gas pipelines and local distribution in Northern Ireland.

Portions of this document may constitute "forward-looking statements" as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the "safe harbor" protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.

 

Contact: John Sheridan
Phone: (617) 560-1444
24 Hour Phone: (704) 382-8333
Email: jpsheridan@duke-energy.com
Contact: Chris Stockton (Williams)
Phone: (713) 215-2010
24 Hour Phone: (704) 382-8333
Email: christopher.l.stockton@williams.com
Contact: Robert Mahony (KeySpan)
Phone: (718) 403-2503
24 Hour Phone: (704) 382-8333
Email: rmahony@keyspanenergy.com