DUKE ENERGY CONTINUES STRONG PERFORMANCE - POSTS FIRST QUARTER EARNINGS OF 74 CENTS A SHARE

CHARLOTTE, N.C. – Building on its positive momentum from 2000, Duke Energy today announced ongoing first-quarter 2001 earnings of 74 cents per share – a 51-percent increase over the 49 cents per share reported in first quarter 2000. Including one-time charges, basic earnings for first quarter 2001 were 61 cents per share – up 15 percent versus the 53 cents reported in first quarter last year. All 2000 numbers are adjusted for a Jan. 26, 2001, 2-for-1 stock split.

Revenues for the quarter increased 126 percent over the prior-year quarter to $16.5 billion, due to rapid expansion of the company’s North American and international competitive energy businesses. Overall earnings before interest and taxes (EBIT) were $1.27 billion for the quarter, a 48-percent increase from first quarter 2000.

"Duke Energy is converting smart strategy to bottom-line results," said Richard B. Priory, chairman, president and chief executive officer of Duke Energy. "We are aggressively executing our strategy – creating energy solutions for customers and positive results for shareholders."

The one-time charge for the quarter was a cumulative adjustment for a change in Financial Accounting Standards due to the adoption of FAS 133, which resulted in a 13 cent charge to first-quarter earnings, or $96 million after tax. Last year there was a one-time gain on the sale of LNG ships by International Energy ($54 million of EBIT, or 4 cents per share).

During the quarter, Duke Energy was recognized by several national publications for its performance. The company rose on the widely followed Fortune 500 – ranking 17^th on the list of the nation’s largest companies. Duke Energy was also named the Most Admired Company in its industry by Fortune. Duke Energy was 19^th in the Business Week 50 – a ranking of the best-performing companies in the Standard & Poor’s 500.

In its rankings, Fortune noted Duke Energy was in the Top 10 in five-year and 10-year revenue growth – illustrating the company’s consistent execution and performance over the past decade.

In March, Duke Energy successfully completed its concurrent public offerings of 28.75 million shares of common stock and $875 million of Equity Units – the largest combined equity and equity-linked transaction of all time by a U.S. energy company in the secondary market. The proceeds from this offering will be used for the repayment of short-term debt and investment in the company’s competitive businesses.

Due to a change in the method for allocating corporate costs at Duke Energy, 2000 EBIT numbers for the business units have been re-stated and are slightly different from those reported last year. This change did not affect the overall EBIT for the company.

Duke Energy’s Energy Services businesses, which include North American Wholesale Energy, International Energy and the Other Energy Services business segments, delivered EBIT of $428 million for first quarter -- a 208-percent increase over ongoing earnings in first quarter 2000.

North American Wholesale Energy, comprised of Duke Energy North America (DENA) and Duke Energy Merchants (DEM), continued to demonstrate the success of its merchant strategies by reporting quarterly EBIT of $348 million, a stellar 324-percent increase over first quarter 2000.

DENA continued to expand its North American energy business during the quarter. It has more than 13,600 megawatts of capacity in operation or under construction and plans to construct between 10 and 12 new merchant facilities every year through 2003. In first quarter, DENA announced plans to build more than 4,100 megawatts of new power generation capacity in time for summer 2002. DENA expects to announce plans for another 2,000 megawatts of capacity in second quarter.

During the quarter, a number of significant long-term natural gas and power contracts were originated with wholesale customers around assets owned and controlled by DENA. These contracts allow customers to take advantage of DENA’s risk management and physical optimization skills, while also locking in the value associated with DENA’s assets. Through these origination efforts, and DENA’s short-term trading and optimization, its trading and marketing business contributed solid results for the quarter.

Throughout the first quarter of this year, Duke Energy has conducted its business in California to supply the maximum possible electricity to meet the needs of the state while limiting the company’s exposure to less creditworthy counterparties. The company has managed the balance of questionable receivables to a lower level today and is confident that the $110 million reserve taken in fourth quarter 2000 is conservative and appropriate. No additional reserve has been taken.

The company continues to aggressively work with senior state government officials and other stakeholders to develop solutions to California’s electricity crisis. DENA announced in March that it had signed a memorandum of understanding with the California Department of Water

Resources (CDWR) for long-term power sales to the state totaling about $4 billion over a nine-year period. Discussions continue with CDWR to finalize the transaction.

DEM announced it had entered a 10-year transmix processing agreement with Kinder Morgan Energy Partners, L.P. (KMP) at KMP facilities in Pennsylvania, Illinois and Virginia. DEM will market the product after processing by KMP. The transaction is another example of DEM’s growing marketing efforts in the refined products business line.

International Energy, comprised of the Latin American, Asia Pacific and European regional businesses of Duke Energy International (DEI), delivered EBIT of $76 million for the quarter. Absent the 2000 gain on the LNG ships, EBIT for International Energy rose 52 percent for the quarter. Overall revenues for International Energy were up 141 percent.

In Latin America, DEI strengthened its network of energy businesses by further integrating energy assets with trading and marketing activities. Strong performance in Brazil and Central America drove increased EBIT in Latin America. In Asia Pacific, DEI continued to move forward with construction of the Tasmania Natural Gas Pipeline, selecting a prime contractor and pipe supplier. When completed in 2002, the pipeline will connect with the Eastern Gas Pipeline, which began operations in 2000, further integrating DEI’s Australian gas and power assets.

DEI also achieved strong performance from its regional operations in Europe. Since launching its European operations just one year ago, DEI has expanded its regional natural gas trading operations as it concentrates on building gas and power trading capabilities across the continent.

"Our domestic and international businesses have succeeded in building energy platforms around the globe – leveraging Duke Energy’s operational strength and the company’s superior knowledge in the energy industry," Priory said.

Other Energy Services, comprised of DukeSolutions, Duke Engineering & Services and Duke/Fluor Daniel, reported EBIT of $4 million versus $7 million in 2000.

The Natural Gas Transmission segment reported first quarter EBIT of $175 million, an 11-percent increase over the $158 million in first quarter 2000. Results benefited from new businesses acquired last year – the East Tennessee Natural Gas Company and Market Hub Partners.

Also during the quarter, Natural Gas Transmission and a subsidiary of the Williams Cos. closed on the purchase of the Gulfstream Natural Gas System from Coastal Corp. The gas pipeline will provide natural gas to customers in Florida beginning in June 2002.

"Our Natural Gas Transmission unit is continuing to push ahead with new projects and ventures – delivering positive results as they build the infrastructure needed to meet the nation’s growing demand for natural gas," said Priory.

The Field Services business segment, which represents Duke Energy’s majority interest in Duke Energy Field Services (DEFS), reported EBIT of $123 million – 71 percent higher than last year’s quarter. Results were positively affected by the combination of Duke Energy’s gas gathering and processing businesses with Phillips Petroleum’s GPM Gas Corp. and the acquisition of assets from Conoco. DEFS is continuing to pursue operational efficiencies as a result of these combinations. EBIT also benefited from higher prices for natural gas liquids.

EBIT from Duke Energy’s franchised electric business was basically flat at $460 million versus $465 million for first quarter 2000. Lower industrial sales and increased nuclear outage costs dampened earnings. These factors were partially offset by increases in residential and commercial sales and the addition of more than 40,000 new customers. Total revenues for the business unit were $1.16 billion, up 4 percent from the prior-year quarter.

Residential sales rose 8.5 percent versus last year’s quarter and commercial sales increased 5.3 percent during the quarter. Industrial sales decreased 5.6 percent during the quarter.

The Duke Ventures business segment, comprised of Crescent Resources, DukeNet Communications and Duke Capital Partners, reported EBIT of $7 million for first quarter 2000 versus $18 million from the same period last year. The decrease in EBIT is primarily due to lower property sales at Crescent Resources.

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.

An earnings conference call is scheduled for 10 a.m. ET on Wednesday, April 18. Richard B. Priory, Duke Energy’s chairman, president and chief executive officer, and Robert Brace, executive vice president and chief financial officer, will discuss highlights. The conference call can be accessed via Duke Energy’s Web site at http://www.duke-energy.com or by dialing 800/946-0782 in the United States or 719/457-2657 outside the United States. The confirmation code is 443532. Please call in 5 to 10 minutes prior to the scheduled start time. A replay of the conference call will be available through April 30, 2001, by dialing 888/203-1112 with a confirmation code of 443532. The international replay number is 719/457-0820, confirmation code 443532. A replay also will be available on Duke Energy’s Web site by accessing the "investors" tab. Also on the site is the most recent Financial Bulletin to the investment community.

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include regulatory developments, the timing and extent of changes in commodity prices for oil, gas, coal, electricity and interest rates, the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets, the performance of electric generation, pipeline and gas processing facilities, the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects and conditions of the capital markets and equity markets during the periods covered by the forward-looking statements.

MARCH 2001 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended
	March 31,

(In millions, except where noted)	2001	2000^(d)

FRANCHISED ELECTRIC
Operating Revenues	$1,157	$1,115
Operating Expenses	748	669
Other Income	51	19

EBIT	$460	$465


Sales, GWh	19,362	20,554


NATURAL GAS TRANSMISSION
Operating Revenues	$282	$286
Operating Expenses	107	140
Other Income	-	12

EBIT	$175	$158


Throughput, TBtu	511	505


FIELD SERVICES
Operating Revenues	$3,398	$1,466
Operating Expenses	3,219	1,390
Other Income (Expenses)	-	(4)
Minority Interest Expense	56	-

EBIT	$123	$72


Natural Gas Gathered and Processed/Transported, TBtu/day	8.2	6.0
Natural Gas Liquids Production, MBbl/d	371.1	231.2
Natural Gas Marketed, TBtu/day	1.6	0.5
Average Natural Gas Price per MMBtu	$7.09	$2.52
Average Natural Gas Liquids Price per Gallon	$0.60	$0.50


NORTH AMERICAN WHOLESALE ENERGY
Operating Revenues	$12,015	$4,305
Operating Expenses	11,589	4,226
Other Income (Expenses)	(10)	4
Minority Interest Expense	68	1

EBIT	$348	$82


Natural Gas Marketed, TBtu/day	13.6	12.0
Electricity Marketed, GWh	60,685*	50,353
Proportional MW Capacity Owned (a)	10,054	6,889
Estimated Proportional Investment in Project Net Assets (a) (b)	$4,139	$1,606

*NOTE: North American Wholesale Energy sales for first quarter 2001 were originally reported as 56,933 Gwh. On April 20, 2001, it ws corrected to 60,685 Gwh.

INTERNATIONAL ENERGY
Operating Revenues	$502	$208
Operating Expenses	428	113
Other Income	9	14
Minority Interest Expense	7	5

EBIT	$76	$104


Proportional MW Capacity Owned (a)	4,847	4,205
Proportional Maximum Pipeline Capacity, MMcf/d (a)	363	332
Estimated Proportional Investment in Project Net Assets (a) (c)	$2,908	$2,882


OTHER ENERGY SERVICES
Operating Revenues	$118	$275
Operating Expenses	114	268

EBIT	$4	$7



DUKE VENTURES
Operating Revenues	$37	$34
Operating Expenses	30	16

EBIT	$7	$18




(a) Amount is as of the period end and includes projects under construction or under contract.
(b) Includes total proportional estimated costs to complete projects under construction or under contract of $526 million and $542 million as of March 31, 2001 and 2000, respectively.
(c) Includes total proportional estimated costs to complete projects under construction or under contract of $124 million and $90 million as of March 31, 2001 and 2000, respectively.
(d) Prior year amounts restated to conform to current year corporate cost allocation.

MARCH 2001 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended March 31,
	Three Months Ended March 31,

(In millions, except where noted)	2001	2000^(a)

COMMON STOCK DATA
Earnings Per Share (before cumulative effect of change in accounting principle)
Basic	0.74	0.53
Diluted	0.73	0.53
Earnings Per Share
Basic	0.61	0.53
Diluted	0.60	0.53
Dividends Per Share	0.275	0.275
Weighted Average Shares Outstanding
Basic	745	733
Diluted	752	735


INCOME
Operating Revenues	$16,491	$7,290

Earnings Before Interest and Taxes (EBIT)	1,269	859
Interest Expense	228	185
Minority Interests (b)	160	31
Income Taxes	327	250
Cumulative Effect of Change in Accounting Principle, net of tax	96	-

Net Income	458	393
Preferred Stock Dividends and Redemption Premiums	4	5

Earnings Available for Common Stockholders	$454	$388



CAPITALIZATION
Common Equity and Minority Interest	46%	46%
Preferred Stock	1%	1%
Trust Preferred Securities	5%	6%
Total Debt	48%	47%


SEC Fixed Charges Coverage	4.3	4.2
Total Debt	$13,090	$10,787
Book Value Per Share	13.11	12.59
Actual Shares Outstanding	771	735

CAPITAL AND INVESTMENT EXPENDITURES
Franchised Electric	$177	$177
Natural Gas Transmission	79	428
Field Services	46	128
North American Wholesale Energy	518	335
International Energy	23	447
Other Energy Services	5	11
Duke Ventures	174	64


EBIT BY BUSINESS SEGMENT (c)
Franchised Electric	$460	$465
Natural Gas Transmission	175	158
Field Services	123	72
North American Wholesale Energy	348	82
International Energy	76	104
Other Energy Services	4	7
Duke Ventures	7	18
Other Operations	(55)	(53)

Total Segment EBIT	1,138	853
EBIT attributable to Minority Interests	131	6

Total EBIT	$1,269	$859



(a) Share information has been restated to reflect the two-for-one stock split effective January 26, 2001.
(b) Includes expense related to preferred securities of subsidiaries of $46 million and $27 million for the three months ended March 31, 2001 and 2000, respectively.
(c) Prior year amounts restated to conform to current year corporate cost allocation.