News Release
Feb. 07, 2001

DUKE ENERGY ADDRESSES DEMAND FOR ELECTRICITY: 6,000 MEGAWATTS TO BE DELIVERED BY SUMMER 2002

HOUSTON, TX – Duke Energy North America (DENA) today announced it will build more than 6,000 megawatts of new power generation capacity in time for summer 2002 demand. At that time, DENA’s operating merchant generation portfolio will exceed 15,000 megawatts.

The new generation will serve markets in the Western System Coordinating Council (WSCC), the East Central Reliability Council (ECAR) and the Southeastern Electric Reliability Council (SERC) regions.

DENA has begun or soon will begin construction activity on six merchant generation facilities totaling more than 4,000 megawatts. The facilities include: the 570-megawatt Maricopa Energy Facility in Maricopa County, Ariz.; the 620-megawatt Washington Generating Facility located in Washington County, Ohio; the 620-megawatt Hot Spring Energy Facility in Hot Spring County, Ark.; Murray Generating Facility I and II, two 620-megawatt facilities located on the same site in Murray County, Ga; and lastly the previously announced 1,040-megawatt modernization of the Moss Landing facility in California. All are expected to begin commercial operation by mid-2002.

Further, DENA plans to announce an additional 2,000 megawatts of generation capacity that also would be ready summer 2002. Individual sites and related information will be disclosed in the second quarter.

"Duke Energy remains focused on supporting robust wholesale competition and delivering quality merchant generation facilities to serve the United States’ increasing thirst for energy," said Jim Donnell, DENA president and chief executive officer. "Duke Energy’s expertise in development, construction and operations, energy logistics and risk management is unique as is its ability to quickly identify opportunities and execute. No other company to my knowledge can deliver six new projects to market in 2001 and another 10 or so projects the following summer. The addition of these new and upgraded facilities will expand and strengthen our regional energy businesses as well as enhance our ability to deliver reliable service to our customers and value for our shareholders."

All the announced facilities were designed by Duke/ Fluor Daniel (D/FD) with environmental and permitting services provided by Duke Engineering & Services. D/FD also will build and operate the facilities.

DENA is Duke Energy’s Houston-based merchant energy company. Currently, DENA’s merchant portfolio includes 6,200 megawatts of generation located in the western, midwestern and eastern regions of the United States. By summer 2001, DENA will deliver six new merchant facilities totaling 3,400 megawatts. DENA also has more than 13,500 megawatts in advanced development and will construct between 10 and 12 new merchant facilities every year through 2003, expanding its merchant portfolio to more than 23,000 megawatts.

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