News Release
April 06, 2001

DUKE ENERGY STATEMENT REGARDING PACIFIC GAS & ELECTRIC COMPANY FILING FOR CHAPTER 11 REORGANIZATION

CHARLOTTE, N.C. -- We regret that the collective actions to mitigate Pacific Gas & Electric’s (PG&E) financial crisis were unsuccessful in keeping it from filing for Chapter 11 reorganization. However, the Chapter 11 filing provides a defined process to collect our past receivables and keep PG&E in business going forward.

Duke Energy had taken a number of aggressive steps to limit its financial exposure to uncertainties in California’s energy market, including the potential bankruptcy of the state’s investor-owned utilities. The company has also sold a significant portion of its energy output from its California plants through fixed-price, forward contracts to creditworthy entities.

Duke Energy continues to operate its power plants in California efficiently and effectively to supply the state’s energy needs. The company is working with federal and state officials and members of the state legislature to help California solve its electricity problems.

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 more than $49 billion in 2000. 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: Bryant Kinney
Phone: 704/382-2208
24 Hour Phone: 704/382-8333
Email: jbkinney@duke-energy.com