Released By CP&L, Duke Energy, SCANA News Release
Oct. 16, 2000

GRIDSOUTH FILES WITH FERC TO ESTABLISH RTO

CHARLOTTE, N.C. – CP&L Energy, Duke Energy and SCANA Corporation will file today with the Federal Energy Regulatory Commission their joint request to establish GridSouth Transco LLC as a Regional Transmission Organization (RTO).

GridSouth will be responsible for operating and planning the companies' combined transmission systems. It is anticipated GridSouth will become a for-profit, investor-owned transmission company that is independent of the three founding companies.

The filing is the result of FERC Order 2000, which requires all transmission owners that are not yet part of a FERC-approved RTO to file plans by today for forming or joining an RTO. The commission's goal is to have all transmission owners in the country operating under an RTO by Dec. 15, 2001.

"Our purpose in forming GridSouth is to provide an open and robust wholesale electricity market for the area," said Erik Hansen, CP&L Energy vice president – system planning & operations. "Using this regional approach to managing the transmission network will be an effective and efficient way to accomplish that goal."

The companies announced their intent to form GridSouth in July. GridSouth held a series of five public meetings in August and September to give stakeholders the opportunity to provide input to the planned filing with FERC. In addition, GridSouth has established its own web site, www.gridsouth.com, which will continue in operation throughout the development and implementation of the new transmission company.

"Ultimately, we'd like to see a transmission company that spans the Southeast, and we are open to other southeastern utilities becoming part of GridSouth," Jim Hinton, Duke Energy's senior vice president – electric transmission, said. "Broad participation will help us create a system that meets our customers' needs."

The new transmission company will be headquartered in Charlotte. GridSouth will be governed by an independent board of directors – i.e., no board member will have either an economic interest in or an affiliation with any of the market participants or the three founding utilities. Day-to-day operations will likewise be under the supervision of an independent senior management team. The new company will provide for a Stakeholder Advisory Committee through which all stakeholders, including CP&L Energy, Duke Energy and SCANA, will have input into the evolution of GridSouth's market rules and operations.

"Now the hard work of actually putting together GridSouth begins," said Charles White, SCANA's general manager of transmission planning and system control. "In developing the relationships among GridSouth, the three utilities and other market participants, we will work to ensure that our current customers continue to receive reliable, low-cost service."

Headquartered in Raleigh, CP&L Energy (NYSE: CPL), through its subsidiary, Carolina Power & Light, provides electric service for 1.2 million customers in its 30,000-square-mile service area in eastern and western North Carolina and South Carolina.

Duke Energy (NYSE: DUK) is headquartered in Charlotte. Its Duke Power business unit provides electric service to 2 million customers in its 22,000-square-mile service area in central and western North Carolina and South Carolina.

Columbia, S.C.-based SCANA (NYSE: SCG), is the parent company of South Carolina Electric & Gas, which serves 525,000 electric customers in its 15,000-square-mile service area in central and southern South Carolina.

Together, the three utilities operate more than 22,000 miles of transmission line and approximately 34,500 megawatts of electric generation.

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Securities Exchange Act of 1934. The forward-looking statements are subject to various risks and uncertainties. Discussion of factors that could cause actual results to differ materially from management's projections, forecasts, estimates and expectations may include factors that are beyond the company's ability to control or estimate precisely. Factors include, but are not limited to, actions in the financial markets, weather conditions, economic conditions in the company's service territories, fluctuations in energy-related commodity prices, conversion activity, other marketing efforts and other uncertainties. Other risk factors will be detailed from time to time in the companies' SEC reports.

Contact: Keith Poston (CP&L)
Phone: 919/546-3611
24 Hour Phone: 919/546-6189
Email: media_relations@duke-energy.com
Contact: Joe Maher (Duke Energy)
Phone: 704/382-8323
24 Hour Phone: 704/382-8333
Email: jmaher@duke-energy.com
Contact: Roger Schrum (SCANA)
Phone: 803/217-7777
24 Hour Phone: 803/256-0349
Email: media_relations@duke-energy.com