News Release
June 26, 2000

Columbia Electric and Duke/Fluor Daniel Execute Construction Contract for Pennsylvania Plant

HERNDON, Va. – Columbia Electric and Duke/Fluor Daniel (D/FD) announced today the execution of an engineering, procurement, and construction (EPC) contract for Columbia Electric’s Liberty Electric Power Project, a nominal 530-megawatt, combined-cycle power facility to be constructed in Eddystone, Pa.

Duke/Fluor Daniel will provide lump sum turnkey EPC and commissioning services for the plant that can serve the electric power needs of 250,000 homes. The contract value was not disclosed.

The plant will be erected on the former site of the Baldwin Steam Locomotive Foundry, returning a brownfield industrial site to productive use. The Liberty Electric Power Project will be among the first independent power projects constructed to operate in the newly deregulated electric generation industry in the Pennsylvania-New Jersey-Maryland (PJM) power pool that covers much of the heavily populated Mid-Atlantic region. This power pool is considered a major crossroads of the growing electric transmission grid over which utilities and other companies buy and sell electricity that they send to markets in Pennsylvania, New Jersey, Virginia, Delaware, Maryland, New York, Ohio and Washington, D.C.

"The Liberty Electric Project will provide clean, reliable, low-cost energy to the PJM marketplace, utilizing efficient, environmentally clean natural gas-fired generating units", said Michael J. Gluckman, president and CEO of Columbia Electric. Gluckman has led Columbia Electric’s development efforts of merchant electric generating projects since he joined Columbia in 1996.

"We are pleased to be selected by Columbia Electric to assist in their strategy of utilizing natural gas to produce low-cost electricity," said Clarence Ray, president and CEO of Duke/Fluor Daniel.

Detailed engineering for the natural gas-fired power plant is underway, with commercial operation planned for first quarter 2002. In addition to engineering activities, site preparation is underway. Heavy construction is scheduled to begin in July. At its peak, D/FD is expected to employ more than 450 workers at the plant site.

Columbia Energy Group, based in Herndon, Va., is one of the nation's leading energy services companies, with assets of approximately $7 billion. Its operating companies currently engage in nearly all phases of the natural gas business, including exploration and production, transmission, storage and distribution, as well as retail energy marketing, propane and petroleum product sales, and electric power generation. Information about Columbia Energy Group (NYSE:CG) is available on the Internet at: www.columbiaenergygroup.com.

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.

This news release contains "forward-looking statements" within the meaning of the Federal securities laws, including (1) statements concerning plans, objectives, expected performance and expenditures and (2) any and all underlying assumptions and other statements that are other than statements of historical fact. There can be no assurance that actual results will not differ materially due to various factors, many of which are beyond the control of Columbia Electric Corporation, Duke/Fluor Daniel, Duke Energy and/or Fluor Corporation including, but not limited to, competition, the timely availability of major equipment, regulatory and legislative changes, the receipt of acceptable third-party approvals, as well as changes in general economic and financial and commodity market conditions. Furthermore, historical results may not be indicative of the future performance of Columbia Electric Corporation, Duke/Fluor Daniel, Duke Energy or Fluor Corporation.

Contact: Michael McGarry
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Email: media_relations@duke-energy.com
Contact: Michael Fox
Phone: 703/561-6546
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Email: media_relations@duke-energy.com
Contact: Keith Karpe
Phone: 949/349-7661
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Email: media_relations@duke-energy.com
Contact: Danny Gibbs
Phone: 704/373-6680
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Email: dpgibbs@duke-energy.com