News Release
Oct. 31, 2000

TEXAS EASTERN FILES FOR $137 MILLION ANNUAL RATE REDUCTION

HOUSTON – Texas Eastern Transmission Corporation (TETCO) has asked the Federal Energy Regulatory Commission to approve rate reductions of approximately $137 million annually for its interstate pipeline customers. The requested rate reduction is made possible primarily by the company’s accelerated recovery of FERC Order 636 transition costs.

The new rates are proposed to be effective on Dec. 1. A typical TETCO customer transporting gas from Louisiana to the Northeast would realize a rate reduction of about 19 percent under the reduced rates. In addition, customers will have the assurance that TETCO's base rates will not increase for at least three years.

TETCO’s accelerated transition cost recovery is directly attributable to the company’s rate initiative agreed to in a 1998 settlement – a settlement agreed to by all of TETCO’s customers. In addition to accelerating the recovery of Order 636 transition costs, TETCO agreed in the settlement to reflect a lower depreciation expense in its rates.

"We are extremely pleased to have completed the recovery of our Order 636 transition costs, thereby removing these costs from our rates," said Robert B. Evans, president, Duke Energy Gas Transmission. "Our customers will see a significant reduction in rates starting this winter and TETCO will have the benefit of more attractive rates, making its services more competitive. This is truly a win-win situation for TETCO and its customers."

Houston-based Duke Energy Gas Transmission manages 12,000 miles of natural gas pipelines including Texas Eastern Transmission Corporation, Algonquin Gas Transmission Company, East Tennessee Natural Gas Company, and with others, Maritimes & Northeast Pipeline. DEGT also owns salt cavern storage 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: Gail Schutz
Phone: 713/627-4060
24 Hour Phone: 704/382-8333
Email: gbschutz@duke-energy.com