News Release
April 09, 2001

DUKE ENERGY RESPONDS TO GOVERNOR DAVIS’ ADDRESS

Duke Energy released the following statement in response to the television address delivered by California Governor Gray Davis Thursday evening, April 5:

MORRO BAY, Calif. (April 5, 2001) -- "Duke Energy continues to work with federal and state regulators, Governor Davis and his staff as well as members of the state legislature to help California solve its electricity crisis. We are running our power plants at historically high levels to keep consumers’ lights on. To help California meet its power requirements for the future we are building new power generation with investors’ dollars, not taxpayer dollars. We are continuing to work with local air quality districts to make our existing and new California power plants as clean as possible and to help ensure our existing power plants are fully available for the summer ahead.

Duke Energy has conducted its business according to all rules established by California’s 1996 electricity deregulation legislation as developed by the state’s political bodies and regulators. As we approach a summer in California that will undoubtedly produce more blackouts for the state’s citizens, everyone should be focused on immediate electricity conservation measures and longer-term initiatives to increase the supply of electricity. Time spent pointing fingers or trying to create villains is time wasted and much better spent developing solutions for California’s consumers and managing the state’s crisis."

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. For more information about Duke Energy North America's California operations, see our web site at www.duke-energy.com/California.

Contact: Tom Williams
Phone: 805/595-4270 (phone); 877/364-5170 (pager)
24 Hour Phone: 704/382-8333
Email: tcwillia@duke-energy.com