News Release
Oct. 30, 2000

DUKE ENERGY MOVES FORWARD WITH FOUR MAJOR SOLUTIONS TO CALIFORNIA'S POWER SUPPLY SHORTFALL AND HIGH RETAIL PRICES

MORRO BAY, CALIF. – Moving forward on its commitment to provide solutions for California's troubled electricity market, Duke Energy North America (DENA) today outlined four initiatives to address the state's power supply shortfall and high retail prices.

"Duke Energy North America is committed to continue playing a major role to help California address its electricity shortfall and the high prices many felt this summer," said Bill Hall, vice president of the Western region for DENA. "The Cal-ISO has said the state will face a 5,000-megawatt shortfall during next summer’s peaks, and supplies will continue to be tight in 2002 and 2003. It's critical that all players in the state’s electricity market work together with state and federal officials to solve this problem."

Hall said DENA, a wholly owned subsidiary of Duke Energy, has taken four steps in the past week that will bolster the California market.

 

These steps to enhance the California electricity market build on proposals Duke Energy made to Governor Gray Davis in August, which included an offer to provide up to 2,000 megawatts of electricity to incumbent utilities at $50 per megawatt hour for a five-year period. The company's leadership is continuing discussions with PG&E and other California utilities to help them mitigate their retail customers’ exposure to high wholesale electricity prices.

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.

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. Bill Hall, vice president of DENA’s California operations, and Nancy DeSchane, vice president of DENA’s western trading operations, will discuss the major solutions DENA is moving forward with to help address California's electricity crisis.

Media representatives should dial 800/946-0722 and provide confirmation code 440110 to participate in the call. The call will be replayed later this afternoon. Dial 888/203-1112 for the replay and use the same confirmation code above.

Contact: Tom Williams
Phone: 805/595-4270
24 Hour Phone: 704/382-8333
Email: tcwillia@duke-energy.com