News Release
March 15, 2000

DUKE ENERGY TO TRANSFER TEPPCO GENERAL PARTNER INTEREST TO FIELD SERVICES UNIT

HOUSTON – Duke Energy announced today that it will transfer its general partner interest in TEPPCO Partners, L.P., to its Denver-based Duke Energy Field Services (DEFS) business unit by the end of March 2000. TEPPCO’s headquarters will remain in Houston.

"We believe that this transfer improves TEPPCO’s and DEFS’ business position in the midstream natural gas industry and provides significant additional flexibility in pursuing acquisitions," said Fred Fowler, Duke Energy’s group president for energy transmission.

"We’re excited that the TEPPCO general partnership interest will be a part of the recently announced combination of the midstream natural gas businesses of Duke Energy and Phillips Petroleum," said Jim Mogg, president of Duke Energy Field Services.

TEPPCO Partners, L.P., is a publicly traded master limited partnership, which conducts business through two operating companies. TE Products Pipeline Company, Limited Partnership, is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States. TEPPCO Crude Oil, LLC, is a crude oil gathering, transportation, storage and marketing company operating primarily in Texas and Oklahoma.

DEFS is the nation’s largest producer of natural gas liquids (NGLs), one of the largest natural gas gatherers and marketers and one of the largest NGL marketers. The company operates 52 plants today in Wyoming, Colorado, Kansas, Oklahoma, New Mexico, Texas, along the Gulf Coast and in northwestern Alberta, Canada.

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