News Release
May 01, 2001


HOUSTON – Duke Energy Gas Transmission (DEGT) today begins a month-long open season to determine shipper interest in a new natural gas supply and transportation option the company is evaluating, called the Alabama-Georgia Energy System.

Driven by the need to fuel new, cleaner-burning electric generation for the growing southeastern region and to serve industrial demand in Alabama and Georgia, DEGT is studying construction of an interstate pipeline that would originate in the greater Mobile Bay area and traverse the southern portion of both states.

"According to several independent reports, the region served by the Southeastern Electric Reliability Council (SERC) is in need of significant new generation capacity, and this increased demand is the direct result of unprecedented growth in the region," said Robert B. Evans, president. "DEGT is excited about working with the region’s power producers and industrial customers in both states to provide the natural gas transportation service to meet this demand growth."

The open season, or invitation for potential customers to express interest in the project, ends at the close of business on May 31. For more information on the open season, contact Dave Weathers at 713/627-4773.

SERC is projected to experience a 25-percent increase in electric demand by 2008. To address a portion of that demand, DEGT is evaluating a transmission pipeline that initially would deliver 250,000 to 500,000 dekatherms per day (Dth/d) of firm transportation to this growing region.

Project facilities would likely consist of 20-inch and 26-inch diameter pipeline and compression, originating near the Destin Pipeline gas processing plant in Pascagoula, Miss., and interconnecting with the Mobile Bay Processing Partners gas processing plant in Coden, Ala., and other pipelines in the area before moving east into Georgia.

The project would consider the construction of laterals, where applicable, to reach markets along the system.

Duke Energy Gas Transmission operates 12,000 miles of natural gas pipelines including Texas Eastern Transmission, LP, Algonquin Gas Transmission Co., East Tennessee Natural Gas Co., and with other partners, Maritimes & Northeast Pipeline. DEGT also is a partner in the proposed Gulfstream Natural Gas System. 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: Gretchen Krueger
Phone: 713/627-4072
24 Hour Phone: 704/382-8333