News Release
Jan. 24, 2001


MORRO BAY, Calif. (Jan. 24, 2001) -- Duke Energy announced today that it has submitted bids in the California Department of Water Resources (DWR) Request for Bids (RFB) for Energy Purchase program. Terms of the bids were not disclosed in accordance with the confidentiality restrictions in the RFB.

"We submitted credible bids in the process outlined by DWR," said Jeff Stokes, Duke Energy North America executive vice president, western region. "We look forward to hearing the results of the process from DWR and the next steps they intend to take. Assuming appropriate credit assurances are provided, we hope to be one of the electricity suppliers chosen."

Duke Energy entered its bid through its trading unit, Duke Energy Trading and Marketing.

In other activity this week in California, Duke Energy announced that it is making good progress with major prescheduled maintenance outages at Duke Energy North America’s (DENA) Moss Landing Unit 6 and South Bay Unit 3. The Moss Landing maintenance began in October; the South Bay outage began this month. The primary purpose of both outages is to install pollution control equipment as required under the company’s air permits with the State of California. This equipment will reduce the units’ nitrogen oxide emissions by 85 percent.

The company expects Moss Landing Unit 6 to return to service by the end of January with the South Bay unit returning in March.

"I’m proud of the work the teams at all our generating stations have done over the last several months as the depth of California’s energy crisis became evident," said Bill Hall, vice president, western region operations. "Our employees have been working shifts 24 hours a day, seven days a week to ensure Moss Landing is returned to service as soon as possible and they are equally committed to the work at South Bay. The employees who operate our other units have worked tirelessly to keep them operating flat out."

Year-end results show that Duke Energy’s California power plants generated more than 50 percent more electricity in 2000 than they did in 1999, with some of the 30-50 year old plants having their best operating years ever.

Also this week, Duke Energy developed procedures for use with the California Public Utilities Commission (CPUC) inspectors who request entry to Duke Energy power plants during outages.

"It is clear the CPUC will increase the inspections it initiates at generating facilities," said Hall. "We have been operating without any formal mechanism to ensure that the inspectors do not impair their own safety, the safety of our personnel, or ongoing plant operations. We believe that the policy we have put in place will enable this to occur."

As part of its new policy, Duke Energy is asking CPUC inspectors to give the company at least one hour’s notice prior to arrival to ensure that power plant staff are available and that the visit will not impact returning a unit to service.

"Duke Energy is committed to working with CPUC personnel inspecting our plants," Hall said. "We have admitted all previous inspectors - none of whom has found any evidence of wrongdoing. However, there have been occasions when these visits have impacted the work of our employees in repairing a unit and returning it to service, resulting in lost generation to consumers. These are the types of situations we are trying to prevent through better coordination with inspectors. Our desire is to be open with inspectors to ensure the CPUC has full knowledge of our operations," Hall concluded.

More information about Duke Energy’s California operations and the California energy crisis may be found at

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:


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