News Release
June 28, 2001

DUKE ENERGY EXECUTES AN AGREEMENT TO ACQUIRE 400-MEGAWATT FACILITY IN SOUTHEAST UNITED STATES

HOUSTON– Duke Energy announced today it has entered into an agreement to acquire a 400-megawatt merchant generation facility from Enron North America. Acquisition of the Union County, Miss., natural gas-fired facility expands Duke Energy’s southeast generation portfolio. It further provides additional trading and structured origination opportunities throughout the eastern interconnect. Terms of the transaction were not disclosed. Closing of the transaction is anticipated to take place in early October 2001.

"The southeastern United States is one of the fastest growing regions of the country. By next year, Duke Energy will have added more than 4,800 megawatts of generation capacity to the region, breaking ground on our first facilities in 2000," said Duke Energy North America (DENA) president and chief executive officer Jim Donnell. "Acquisition of the Union County facility gives Duke Energy ready access to the Tennessee Valley Authority transmission system and supports our trading and structured origination efforts throughout the eastern region."

The North American Electric Reliability Council estimates the Southeastern Electric Reliability Council needs an additional 40,000 megawatts of generation capacity over the next decade to meet peaking demand. Given access to major transmission lines, the Duke Energy facility will be able to serve demand throughout the southeastern and midwestern United States.

DENA is Duke Energy’s Houston-based merchant energy company. DENA has 13,600 megawatts in operation and under construction across the United States. In addition to the Union County facility, DENA has a 520-megawatt facility in operation and two 640-megawatt facilities under construction in Mississippi with commercial operations set to start by summer 2002.

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