News Release
Feb. 07, 2001

DUKE ENERGY FIELD SERVICES AFFILIATE TO MARKET PROPANE IN NORTHEAST

DENVER – Duke Energy Field Services (DEFS) today announced that an affiliate company soon will begin marketing propane in the northeastern United States under an agreement with TE Products Pipeline Company, L.P. (TEPPCO), one of the nation’s major transporters of propane and other liquefied petroleum gases.

Beginning May 1, Duke Energy NGL Services will market propane from the Providence, R.I., terminal owned and operated by TEPPCO. One of the nation’s leading gatherers and processors of natural gas, DEFS produces more natural gas liquids like propane, butane and ethane than any other company.

"Entering a new market further enhances our position as a leading marketer of propane and paves the way for growth," said Bill Waldheim, president of Duke Energy NGL Services. "This agreement will establish Duke Energy NGL Services as a prominent purchaser and seller of propane in the Northeast. Our vast experience as a provider of risk management and other services to the propane community, combined with the solid asset bases and physical presence of DEFS and TEPPCO, will bring real value to future customers in this new marketing region."

Preparation activities, such as initial customer contacts, will start in March. Interested parties should contact Rick Paul, vice president of sales, at 713/627-6280 for more information.

TEPPCO Partners, L.P. is a publicly traded master limited partnership, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates natural gas liquid pipelines; is engaged in crude oil gathering, transportation, storage and marketing; and owns a 50 percent interest in Seaway Crude Pipeline Company and an undivided ownership interest in the Rancho and Basin Pipelines. Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, LP, is the general partner of TEPPCO Partners, L.P. For more information, access TEPPCO’s Web site at www.teppco.com.

DEFS, headquartered in Denver, Colo., is a midstream energy company that gathers, processes, transports, markets and stores natural gas and produces, transports and markets natural gas liquids (NGLs). The company is one of the nation’s largest natural gas gatherers, the largest producer of NGLs and one of the largest NGL marketers. DEFS operates in 11 states and across five of the largest natural gas producing regions in North America. The company owns and operates 71 plants and 57,000 miles of pipeline, and its operating territory extends from western Canada to the Gulf Coast.

DEFS was formed by combining the Duke Energy and Phillips Petroleum natural gas gathering and processing businesses. Duke Energy owns approximately 70 percent of the joint venture and Phillips Petroleum owns about 30 percent. More information is available about the company at www.defs.com.

Phillips is an integrated petroleum company with interests around the world. Founded in Bartlesville, Okla., in 1917, the company has 12,400 employees and $20.6 billion of assets, and had $21.2 billion of revenues in 2000.

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: Liz Johnson
Phone: 713/627-5011
24 Hour Phone: 704/382-8333
Email: evjohnson@duke-energy.com