News Release
March 07, 2000

DUKE ENERGY NORTH AMERICA ANNOUNCES SALE OF REMAINING STAKE IN HIDALGO ENERGY FACILITY

HOUSTON — Duke Energy North America (DENA) today announced the sale of its remaining 78.5-percent interest in the 500-megawatt Hidalgo Energy facility to an affiliate of Calpine Corporation for $235 million.

The Hidalgo Energy facility is a 500-megawatt, natural gas-fired, combined-cycle generation facility located in Edinburg, Texas. DENA broke ground on the facility in first quarter 1999 and expects commercial operations to commence by June 2000. The sale to Calpine is subject to all appropriate government approvals.

"Although we have sold this facility, I must emphasize that our experience in Edinburg has been very positive," said Jim Donnell, president and chief executive officer of DENA. "The economic development efforts and leadership of Edinburg’s government and business leaders helped make the construction of this power generation plant a reality. The clean energy produced by this stateof-the-art facility will enhance regional energy reliability and promote further economic development in the Rio Grande Valley."

"Duke Energy has been a great corporate citizen and a full participant in our community life," said Edinburg Mayor Joe Ochoa. "We extend congratulations to Calpine and look forward to working with them as the new owners and operators of one of Edinburg’ s most important assets."

Headquartered in Houston, Texas, DENA is a leading provider of competitively priced wholesale energy. DENA develops, owns and manages a portfolio of environmentally friendly, competitively priced merchant generation throughout the United States. DENA is a wholly owned subsidiary of Duke Energy.

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: Richard A. Fernandez
Phone: 713/627-5984
24 Hour Phone: 888/487-5557
Email: media_relations@duke-energy.com