News Release
June 14, 2001

DUKE ENERGY BOOSTS CRITICAL ENERGY INFRASTRUCTURE; SIX FACILITIES DELIVERED IN 2001—ANOTHER 10 IN 2002

HOUSTON– Duke Energy announced it will add 3,400 megawatts of new generation capacity this summer by bringing six new projects online—the most by any energy company—in a bid to boost U.S. energy supply.

"President Bush’s National Energy Plan emphasizes the importance of adding energy infrastructure to meet the demand of the United States’ growing economy. Duke Energy is the only company to deliver six new projects to market in one summer," said Jim Donnell, president and chief executive officer of Duke Energy North America (DENA), which develops merchant plants to provide power to the competitive wholesale market.

The company also announced construction is underway on nine of 10 new facilities it has slated for operation in the summer of 2002. Those new plants will deliver another 6,700 megawatts--enough electricity to power 6.7 million homes.

"Duke Energy is working diligently to provide market-based solutions to address our country’s energy needs. We are investing heavily in our nation’s economy, adding the physical megawatts and miles of natural gas pipeline needed to deliver reliable energy to the regions of the country with the greatest demand," Donnell said.

Five new facilities have already come online this summer. They include the 520-megawatt McClain Generating Station in Oklahoma; the 520-megawatt Attala Energy Facility and the 520-megawatt Hinds Energy Facility, both located in Mississippi; the 640-megawatt Audrain Generating Station in Missouri and the 640-megawatt Lee County Generating Station in Illinois. The sixth facility, the 600-megawatt Griffith Generating Station in Arizona, is scheduled to begin operations in early July.

The six new facilities will serve wholesale customers in the Western System Coordinating Council (WSCC), the East Central Reliability Council (ECAR), the Southwest Power Pool (SPP) and the Southeastern Electric Reliability Council (SERC) regions. Once all the facilities are online, DENA’s operating merchant generation portfolio will total 7,600 megawatts. The company announced the divestiture of its interests in the Attala, Audrain and McClain facilities prior to commercial operations.

The 10 plants scheduled for operation in 2002 include the 640-megawatt Marshall County Generating Station in Kentucky; the 640-megawatt Southaven Energy Facility and the 640-megawatt Enterprise Energy Facility, both in Mississippi. Additionally the company has announced construction of six-combined cycle facilities in Arizona, Ohio, Arkansas, Georgia, and California. An announcement on DENA’s tenth 2002 facility, a 640 megawatt simple cycle plant will be made once final approvals are received.

On Friday, June 15 at 11 a.m. (EDT) Donnell will outline DENA’s business strategy and highlight its recent accomplishments on Duke Energy’s monthly investor chat series conference call. DENA is Duke Energy’s Houston-based merchant natural gas and power company. Details on the call may be found on Duke Energy’s investors’ website at www.duke-energy.com.

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