News Release
Nov. 01, 2000

DUKESOLUTIONS TO ACQUIRE POWER FACILITIES FROM WASTE MANAGEMENT, INC.

CHARLOTTE, NC -- DukeSolutions has reached an agreement to acquire eight independent power facilities and associated assets from a wholly-owned subsidiary of Waste Management Inc.

DukeSolutions will invest approximately $100 million in the facilities, including purchase price and planned improvements. Expected revenues over the next 15 years could exceed $1 billion.

The assets to be acquired include cogeneration and renewable energy facilities in California, Pennsylvania, Maine and Florida with total electric power generating capacity of 244 megawatts. The facilities provide steam and chilled water under long-term contracts with industrial and institutional customers and long-term electricity under long-term electric sales contracts with Southern California Edison, Pacific Gas & Electric, Maine Public Service, Florida Power Corporation and Pennsylvania Power and Light.

DukeSolutions will own and operate the facilities, leveraging its position as a leader in long-term energy management by implementing efficiency and productivity upgrades and related services that are aligned with Duke Energy core business competencies. Other Duke Energy companies

will provide complementary services including operations and maintenance services from Duke Engineering & Services and commodity supply and hedging from Duke Energy North America.

Acquisition of these assets highlights DukeSolutions’ capability to own and manage a wide range of generation/cogeneration facilities to meet customer needs and further enhances its presence in the commercial and industrial retail marketplace.

"This acquisition will expand our 'inside-the-fence' presence in the industrial and institutional markets and will help balance the corporate portfolio with regard to the merchant positions of Duke Energy North America and Duke Energy International, " said Keith G. Butler, chief operating officer at DukeSolutions. "The successful operations of these facilities, along with our current operations, will further demonstrate DukeSolutions’ ability to help our clients more effectively manage their energy infrastructure."

DukeSolutions is one of the fastest growing energy services companies in North America. The company helps customers make the most of their assets and increase cash flow and earnings by providing integrated energy solutions that reduce costs and improve energy efficiency. Serving industrial, commercial, institutional and governmental customers, DukeSolutions implements a full range of energy services including energy supply and logistics, reliability and risk management, on-site utility, information management and efficiency and productivity services. DukeSolutions is a wholly owned subsidiary of Duke Energy, one of North America’s premier global energy companies. Additional information about the company is available on the Internet at http://www.dukesolutions.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.

 

Contact: Rick Wirth
Phone: 704/373-6611
24 Hour Phone: 704/373-6611
Email: rfwrith@duke-energy.com
Contact: Sarah Voss Waste Management
Phone: 713/394-2154
24 Hour Phone: 713/394-2154
Email: