News Release
Sept. 07, 2000

DUKE ENERGY NORTH AMERICA SELLS MERCHANT GENERATION FACILITY

HOUSTON – Duke Energy North America (DENA) today announced the sale of a 500-megawatt merchant power facility under construction in central Mississippi to PG&E National Energy Group for an undisclosed sum. The sale of DENA's Attala Energy Facility is subject to regulatory approval and is expected to close by the end of third quarter.

Attala is a combined cycle, natural gas-fired merchant generation facility located between McAdams and Kosciusko, Miss. Construction of the facility began last March and commercial operation is scheduled for summer 2001. DENA’s generation portfolio currently includes approximately 6,100 megawatts in operation; seven facilities under construction totaling 3,300 megawatts, excluding Attala; and 13,500 megawatts in advanced development scheduled for commercial operation by summer 2003.

"Given the United States' critical need for new electricity supply, now is the time to be building generation. Duke Energy's core commercial, development, engineering and construction skills enable us to analyze markets and deliver quality projects in record time," said Jim Donnell, president and chief executive officer of DENA. "Our portfolio management approach to business allows Duke Energy to realize the inherent value of being first to market when presented with the opportunity to sell our assets."

The development of the Attala facility highlights Duke Energy’s diverse in-house capabilities. Duke Engineering & Services provided support services to the Attala project; Duke/Fluor Daniel is the lead engineering and construction company; and Duke Energy's Texas Eastern Transmission system will transport natural gas to fuel to the facility.

Based in Houston, Duke Energy North America (DENA), is a leading energy company. DENA, and its affiliates, including Duke Energy Trading and Marketing, supply competitively priced energy, integrated logistics and asset optimization services as well as risk management products to wholesale energy producers and users across North America. To better serve its customers and support its market positions, DENA develops, owns and manages a portfolio of merchant generation facilities. DENA is a wholly owned subsidiary of Duke Energy.

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: Jennifer Pierce
Phone: (713) 627-5719
24 Hour Phone: (704) 382-8333
Email: jmpierce@duke-energy.com