News Release
June 01, 2000

DUKE ENERGY GAS TRANSMISSION COMPLETES INTERCONNECTS BETWEEN ITS EAST TENNESSEE AND TEXAS EASTERN PIPELINE SYSTEMS

HOUSTON - Duke Energy Gas Transmission has opened interconnects between its East Tennessee Natural Gas Co. (ETNG) and Texas Eastern Transmission Corp. (TETCO) pipelines, paving the way for ETNG customers to access diverse natural gas supplies from the Gulf Coast region.

The interconnections also open the ETNG pipeline system to TETCO shippers and give Duke Energy integrated access to the southeast United States, a region where gas consumption is growing at an annual rate exceeding 4 percent -- double the national average.

To accommodate the anticipated growth of the region, East Tennessee is developing a new expansion of its system called Gateway. Open season for the Gateway Expansion will be held today through June 15, allowing shippers to submit non-binding elections for firm transportation capacity. Service will begin Nov. 1, 2001.

"The prompt interconnection of the two systems within two and one-half months of the ETNG acquisition is indicative of Duke Energy's focus on the East Tennessee market," said Robert Evans, president of Duke Energy Gas Transmission. "The Gateway Expansion provides shippers an excellent opportunity to take advantage of the new Texas Eastern interconnects just completed with ETNG."

The two pipelines interconnect at the company's Mt. Pleasant, Tenn., compressor station and again near the town of Hartsville, Tenn. Each interconnect is capable of delivering up to 400 million cubic feet a day of natural gas into the East Tennessee Natural Gas system.

East Tennessee's 1,100 miles of pipeline consist of two mainline systems in central Tennessee that converge near Knoxville and extend to a point near Roanoke, Va. The pipeline has a design capacity of approximately 700 million cubic feet per day and provides unbundled, open-access transportation and storage services to 40 local distribution companies and 16 industrial customers in the region.

The ETNG system is a supplier to customers in eastern and central Tennessee, southwest Virginia, northern Georgia and northern Alabama. The system also includes a 1.2 billion cubic feet per day liquefied natural gas storage facility near Knoxville.

Duke Energy also owns and operates natural gas pipelines known as Algonquin Gas Transmission Co., and with other partners, Maritimes & Northeast Pipeline. Combined with ETNG and TETCO, these companies deliver 8 percent of the natural gas consumed in the United States.

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.

Contact: Gretchen Krueger
Phone: 713 627-4072
24 Hour Phone: 704 382-8333
Email: gdkrueger@duke-energy.com