News Release
June 21, 2001

DUKE ENERGY STATEMENT: COMPANYS CALIFORNIA POWER PLANT OPERATIONS PERFORMANCE HAS IMPROVED UNDER ITS OWNERSHIP

CHARLOTTE, N.C. -- "Duke Energy’s California employees have established a record of excellence in California power plant operations, producing 50-percent more electricity in 2000 than in 1999. Allegations concerning Duke Energy’s operations in the state are baseless, and the improved output of these plants demonstrates this point unequivocally.

"Our employees have followed the directions of the California Independent System Operator and the rules established for the California market. Employees of our company have been committed to keeping the lights on for over 100 years and their efforts in California are leading to even higher power plant output in 2001 than in 2000.

"Despite these historically high production levels, forced outage levels (a key measure of reliability) have been improved under Duke Energy ownership than when the plants were owned by the state’s utilities and are better than national industry averages. Since Duke Energy’s entry into the California market in mid-1998, the company embarked on aggressive programs to improve plant performance across the board. Our employees’ efforts in plant operations, maintenance and environmental management have been totally focused on ensuring the plants are reliable sources of electricity for California consumers.

"Continued accusations, repetitive investigations and inflammatory rhetoric concerning the company’s operations in the state are distracting attention from the true issue of solving California’s energy crisis. Duke Energy continues to deliver real energy solutions for Californians through superior operations and the 1,060-megawatt expansion of its Moss Landing Power Plant."

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: Tom Williams
Phone: 877/364-5170, pager
24 Hour Phone: 704/382-8333
Email: tcwillia@duke-energy.com
Contact: Cathy Roche
Phone: 704/373-4860
24 Hour Phone: 704/382-8333
Email: csroche@duke-energy.com