News Release Dec. 17, 2001

City of North Little Rock to Save More Than $2.2 Million in Energy Costs

HOUSTON– Duke Energy announced that its Duke Energy North America unit (DENA) has been awarded a long-term power supply contract with the city of North Little Rock, Ark. This full-requirements-service contract, which includes load-serving and forecasting for the city’s local utility, spans nearly five years from July 2002 through March 2007. 

DENA has offered North Little Rock a 1.4-percent rate reduction from current pricing, resulting in projected savings of $2.2 million over the course of the contract.  

“In addition to proving themselves extremely competent, skilled and reliable, Duke Energy came in with a very competitive rate, allowing our city to save money and redirect it to other local projects and needs,” said Patrick H. Hays, mayor of North Little Rock. “We look forward to expanding our relationship with Duke Energy beyond power and into the community through efforts that spark goodwill and economic growth.”

The North Little Rock Electric Department serves approximately 37,000 customers with a peak demand in the 260-megawatt range. Thirty miles southeast, Duke Energy is constructing the Hot Spring Generating Facility, a 620-megawatt merchant power plant that will be operational in late spring 2002. This plant is among five other Duke Energy facilities in the southeast United States producing more than 3,300 megawatts of power that is available, along with market traded power, to support energy demand in North Little Rock.

In addition to real-time transmission support in the Houston-based control center, DENA plans to assist North Little Rock in achieving control area approvals. Control area status will provide the city with increased flexibility in transmitting power and utilizing Duke Energy resources, broadened capabilities for load control and ancillary services, and more reliable supply and scheduling services.

“This multi-year, multi-million-dollar contract is an indication of continued strength and opportunity in the energy sector. It is an honor to be the power provider of choice for the city of North Little Rock. We look forward to utilizing Duke Energy’s broad portfolio, technology and intellectual capital to provide full requirements service to other municipalities," said Mitch Davidson, senior vice president of origination with DENA.

Duke Energy North America (DENA) is Duke Energy’s Houston-based merchant energy company. DENA currently owns 8,000 megawatts in operation and has 5,400 megawatts under construction scheduled to come on line by summer 2002.

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.