News Release
Oct. 12, 2000

ALGONQUIN ANNOUNCES HUBLINE FILING

BOSTON – Algonquin Gas Transmission Co., a unit of Duke Energy Gas Transmission, filed on Oct. 10 an application seeking Federal Energy Regulatory Commission (FERC) approval to construct the HubLine project, an offshore natural gas pipeline extending from Beverly, Mass., to Weymouth, Mass.

HubLine, an expansion of Algonquin’s system, is designed to meet the needs of the rapidly growing northeast energy market while contributing substantial economic and environmental benefits to the region. HubLine will connect the existing Algonquin pipeline system with the Maritimes & Northeast Pipeline allowing transportation of natural gas from offshore Nova Scotia, Canada, to markets in New England and throughout the Northeast.

"Energy consumers are demanding more and more natural gas," said Robert Evans, president of Duke Energy Gas Transmission. "Local distribution companies continue to grow their markets through conversions and service area expansions, new and more efficient gas-fired electric generating plants are being built and existing power plants are converting to gas.

"HubLine ensures that sufficient supplies will be available to meet this demand. Delivering reserves from the newly developed eastern Canada region into the eastern end of the Algonquin system near Boston will provide the region with greater energy reliability and security as well as increased supply competition."

The HubLine project involves the construction of approximately 30 miles of 24-inch mainline pipeline primarily offshore between Beverly and Weymouth along with ancillary facilities onshore. Additionally, an approximately five-mile, 16-inch lateral pipeline is proposed to Deer Island in Boston Harbor. Algonquin’s commitment to environmental stewardship along with stringent review by a variety of state and federal agencies will help protect the ecologically sensitive areas of Boston Harbor.

"The proposed route was selected to minimize impacts to the environment, landowners and the greater Boston community. In the coming months, we will continue to review the route and solicit input from people interested in the project so we can construct the pipeline safely and in strict compliance with all environmental regulations," Evans said.

"Algonquin will use proven underwater construction techniques to ensure pipeline integrity and worker safety as well as minimize ecological disturbance in Boston Harbor as we build this significant addition to the eastern Massachusetts energy infrastructure."

Maritimes & Northeast Pipeline filed an application with FERC on Oct. 10 for an extension from its existing facilities to the proposed start of the HubLine project.

Duke Energy Gas Transmission, the Houston-based Duke Energy business responsible for the company’s interstate natural gas pipeline operations, manages 12,000 miles of natural gas pipelines known as Texas Eastern Transmission Corp., Algonquin Gas Transmission Co., East Tennessee Natural Gas Co., and with other partners, Maritimes & Northeast Pipeline. Together, these companies transport 8 percent of the natural gas consumed in the United States. DEGT also owns natural gas salt cavern facilities in Texas and Louisiana with a total storage capacity of 23 billion cubic feet.

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: John P. Sheridan
Phone: 617/560-1444
24 Hour Phone: 704/382-8333
Email: jpsheridan@duke-energy.com