News Release
June 21, 2001


BOSTON AND NEW YORK – Islander East Pipeline Company L.L.C. has filed an application with the Federal Energy Regulatory Commission (FERC) to construct, own and operate about 50 miles of interstate natural gas pipeline that will transport natural gas to growing markets in Connecticut, New York City and Long Island, N.Y. Islander East is an equally owned, limited liability company formed between subsidiaries of Duke Energy and KeySpan Corporation.

Islander East, expected to be in service in 2003, will transport key additional volumes of natural gas to meet the energy needs of this region, which is growing at a greater rate than other parts of the country. Through interconnections to virtually every major supply basin in North America, including recently developed natural gas reserves in eastern Canada, Islander East will further supplement the natural gas supplies necessary to fuel new and existing gas-fired, electric generating plants as well as local distribution companies in the area.

"The Islander East project will help us respond to the increasing demand for natural gas in Connecticut, New York City and on Long Island," said Robert Evans, president of Duke Energy Gas Transmission (DEGT), the managing partner for Islander East. "Increased access to newly developed reserves will provide a secure, reliable source of natural gas to the area. Islander East will meet the stringent federal, state and local requirements for approval, and we will continue to work with landowners, public officials, community and environmental organizations and other interested parties throughout the FERC process."

"The environmental benefits of natural gas continue to stimulate growth in residential, business and industrial markets in the Northeast," said Robert B. Catell, chairman and chief executive officer of KeySpan. "This growth will continue as more people switch their homes and workplaces to natural gas and as new natural gas-powered, electric generating plants come on line. By bringing natural gas from a newly developed basin in Atlantic Canada, Islander East will enhance the reliability and competitive cost of energy in the New York metropolitan area. The development of Islander East is consistent with KeySpan’s strategy of increasing and diversifying energy supplies while strengthening our position in the northeast energy market."

The proposed Islander East mainline pipeline will extend from Connecticut across Long Island Sound to Wading River, N.Y., with proposed connections to KeySpan’s Long Island delivery system. Islander East facilities will consist of approximately 50 miles of new, 24-inch diameter pipeline. Additionally, Algonquin Gas Transmission Company is proposing certain upgrades to its system in Connecticut that will interconnect with Islander East – approximately 13.7 miles of existing parallel pipelines will be upgraded and a new compressor station will be constructed in Cheshire, Conn. Algonquin is a unit of DEGT.

A member of the S&P 500, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.4 million gas customers and more than 13,000 employees. KeySpan is also the largest investor-owned electric generator in New York State and operates Long Island’s electric system under contract with the Long Island Power Authority for its 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan also manages a portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, a full-service energy company for residential and small commercial customers; and KeySpan Business Solutions, a full-service energy company for business customers. KeySpan also has strategic investments in natural gas exploration and production, pipeline transportation, distribution and storage, as well as Canadian gas processing and fiber-optic cable. For more information about the company, visit KeySpan’s Web site at:

Duke Energy Gas Transmission manages 12,000 miles of natural gas pipelines including East Tennessee Natural Gas Co., Texas Eastern Transmission, LP, Algonquin Gas Transmission Co. and with other partners, Maritimes & Northeast Pipeline. DEGT also owns natural gas salt cavern facilities in Texas and Louisiana with a total storage capacity of 24 billion cubic feet.

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:

Contact: John P. Sheridan, Duke Energy
Phone: 617/560-1444
24 Hour Phone: 704/382-8333
Contact: Edward Yutkowitz, KeySpan
Phone: 718/403-2503
24 Hour Phone: n/a
Email: n/a