News Release
May 01, 2001

DUKE ENERGY FIELD SERVICES AFFILIATE TO ACQUIRE PROPANE WHOLESALER IN NORTHEAST

DENVER – A Duke Energy Field Services (DEFS) affiliate will acquire Gas Supply Resources Inc. (GSR) to expand its propane supply points for customers in the New England area. The affiliate company, Duke Energy NGL Services, will integrate GSR’s propane terminal operation into its existing import facility at Providence, R.I.

Today, Duke Energy NGL Services will begin marketing propane from its newly acquired rail terminals along with volume from the Texas Eastern Products Pipeline Company and Providence import facility. The company plans to optimize the distribution of propane in the New England area creating value for its customers in the process.

"Expanding our propane supply locations further enhances our position as a leading marketer of propane and paves the way for growth," said Bill Waldheim, president of Duke Energy NGL Services. "This transaction will further establish the company as a prominent purchaser and seller of propane in the Northeast. Our ability to offer customers multiple propane supply locations should reduce transportation costs and enhance value to the customers at these facilities."

Duke Energy NGL Services plans to keep the propane sales offices at Lebanon, N.H., and Cincinnati, Ohio, in place to serve customers in this region. John Pratt should be contacted at 800/807-7288 for further information regarding the operations in this region.

DEFS is a premier North American midstream energy company that leads or is among the nation’s leaders in the gathering, processing, transportation, marketing and storage of natural gas and the production, transportation and marketing of natural gas liquids (NGLs). DEFS’ 2,600 employees operate in 11 states and across five of the largest natural gas producing regions in North America, extending from western Canada to the Gulf Coast. The company owns and operates 65 plants and 57,000 miles of pipeline. The Denver-based company had revenues of $9.1 billion and assets of $6.1 billion in 2000. DEFS also owns the general partner of TEPPCO Partners, L.P., a publicly traded master limited partnership.

DEFS was formed by combining the Duke Energy and Phillips Petroleum natural gas gathering and processing businesses. Duke Energy owns approximately 70 percent of the joint venture and Phillips Petroleum owns about 30 percent. More information is available about the company at www.defs.com.

Phillips is an integrated petroleum company with interests around the world. Headquartered in Bartlesville, Okla., the company has 12,400 employees and $20.5 billion of assets, and had $21.2 billion of revenues in 2000.

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 Long
Phone: 303/605-1731
24 Hour Phone: 704/382-8333
Email: telong@duke-energy.com