News Release
Nov. 16, 2000

DUKE ENERGY BREAKS GROUND ON MOSS LANDING MODERNIZATION PROJECT

MOSS LANDING, Calif. – Duke Energy North America’s (DENA) Moss Landing Power Plant, known as "Mighty Moss," is getting cleaner and even more mighty as a $525 million plant modernization moves forward with today's groundbreaking ceremony at the site. Following the groundbreaking, there will be nature hikes and an evening reception and dinner at the Elkhorn Slough National Estuarine Research Reserve.

"Since we announced our plant modernization in December 1998, we have worked with our Moss Landing neighbors, the environmental community and the citizens of Monterey County to develop a project that we can all be proud of," said Mark Seedall, DENA director of electric modernization. "We are removing 19 massive oil tanks and eight 225-foot stacks, reducing the existing plant’s air emissions and building a modern power plant to help California meet its needs for more electricity. This project represents a win for the community, a win for the environment and a win for the state’s electricity consumers."

The power plant site, which first produced electricity in 1950, currently generates 1,500 megawatts. When the modernization is completed by summer 2002, the site will generate 2,560 megawatts and be the largest power plant in California and one of the cleanest and most efficient power plants in the nation. It will generate enough wholesale electricity to serve approximately 2.5 million households.

"Moss Landing's modernization program is important for Duke Energy and for the state of California," said Jim Donnell, president and chief executive officer of DENA. "Just two and one-half years after our acquisition of Moss Landing we are finally able to deliver what we promised -- a cleaner, more efficient, state-of-the-art electric generation facility. California desperately needs the 2,560 megawatts that will be produced from this facility and thousands of megawatts more. Our investment in this project demonstrates Duke Energy's commitment to providing real solutions to solve California's electricity shortage."

Upon completion of the project, DENA will eclipse The Pebble Beach Company as Monterey County’s largest taxpayer. The modernization project also features more than $12 million in funding to improve nearby roads, coastal access, fire protection and to fund protection measures for the nearby Elkhorn Slough watershed and habitat. In addition, DENA crafted a $3.5 million agreement with the local Moss Landing community for economic vitality initiatives and a $1 million agreement with four Monterey County environmental organizations for additional monitoring activities that were not required as part of the project’s permitting effort.

"We have owned power plants in California only since July 1998 and are committed to the communities where we have operations," said Bill Hall, vice president of DENA’s western region. "Our Moss Landing Power Plant modernization clearly indicates this, and we are eager to continue to follow through with our commitments to improve this site and help deliver the new generation this state so desperately needs."

For more information about DENA’s California operations, power plant modernization plans and position on California’s electricity crisis, see the Web site www.duke-energy.com/California.

The Moss Landing Power Plant is owned by a wholly owned subsidiary of DENA.

DENA is a leading wholesale energy services company. DENA and its affiliates including Duke Energy Trading and Marketing provide natural gas and power supply and services and risk management products to wholesale energy producers and users. DENA also develops, owns and manages a portfolio of merchant generation facilities.

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.

Note for members of the media: DENA will hold an audio conference today at 11 a.m. Pacific Time on the Moss Landing Power Plant modernization permitting process, our perspective on California's electricity crisis and how western electricity and natural gas markets work. Featured speakers include Mark Seedall, DENA director of electric modernization, Bill Hall, DENA vice president of western operations, and Jeff Stokes, executive vice president of DENA’s western region.

Media representatives should dial 888-422-7128 and provide confirmation code 546766 to participate in the call.

A replay of the call will be available until November 23 by calling 877-471-6581 and providing the code 169674.

Contact: Tom Williams
Phone: 805-595-4270
24 Hour Phone: 877-364-5170
Email: tcwillia@duke-energy.com
Contact: Paul Mason
Phone: 704-373-4512
24 Hour Phone: 704-382-8333
Email: pemason@duke-energy.com