News Release
July 31, 2001

DUKE/FLUOR DANIEL AWARDED CONTRACT FOR 1,150-MEGAWATT POWER PLANT IN OKLAHOMA

CHARLOTTE, N.C. – Duke/Fluor Daniel (D/FD) has been awarded a contract by Calpine Oneta Power, L.P., to perform engineering, procurement and construction (EPC) services for a 1,150-megawatt, combined-cycle, natural gas-fired power plant in Coweta, Okla.

The overall project is valued at $500 million, but the value of D/FD’s contract was not disclosed. Peak work force for the project is expected to be 600 workers. The facility is scheduled to begin commercial operation in early summer 2002 and is currently on target to meet that goal.

"From our perspective, two aspects of this contract stand out," said Jeff Faulk, president and chief executive officer of D/FD. "It is our first opportunity to work with Calpine Corporation -- widely regarded as a leading independent power producer. Second, as part of the overall EPC contract, we have effectively combined Calpine’s procurement requirements, preferred suppliers and commissioning capabilities with D/FD’s EPC contracting capabilities."

"We have been able to bring our capabilities together with D/FD in ways that significantly enhance the Calpine Oneta project and advance it toward commercial operation," said Doug Kieta, senior vice president of construction for Calpine Corporation. "This contract represents a significant step forward for the project, and such projects represent significant progress in meeting fast-growing energy demand in the United States."

So far in 2001, D/FD has been awarded EPC contracts for more than 10,000 megawatts of natural gas-fired power generation facilities.

Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. Calpine is focused on clean, efficient, natural gas-fired generation and is the world’s largest producer of renewable geothermal energy. Calpine has launched the largest power development program in North America. To date, the company has approximately 34,000 megawatts of base load capacity and 7,200 megawatts of peaking capacity in operation, under construction and in announced development in 29 states, the United Kingdom and Canada. The company is publicly traded on the New York Stock Exchange under the symbol CPN. For more information about Calpine, visit its Web site at www.calpine.com.

Duke/Fluor Daniel provides comprehensive engineering, procurement, construction and operating plant services for fossil-fueled electric power generating facilities worldwide. The general partnership of Duke Energy and Fluor Corporation is one of the largest power contractors in the world and has the largest U.S. market share for the engineering and construction of natural gas-fired power projects. D/FD operating plant services supports utility, merchant and cogeneration plants, including operations and maintenance contracts, capital projects, environmental retrofits and other major plant improvements. For more information visit www.dukefluordaniel.com.

With 2000 revenues of $10 billion, Fluor Corporation provides services on a global basis in the fields of engineering, procurement, construction, operations, maintenance, project management and business services.

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: Jeremy Dreier
Phone: 704/382-8343
24 Hour Phone: 704/382-8333
Email: jwdreier@duke-energy.com