News Release
May 02, 2001

DUKE ENERGY SELLS REMAINING INTEREST IN OKLAHOMA FACILITY

HOUSTON – Duke Energy North America (DENA) today announced the sale of its ownership interest in Duke Energy McClain (DEMc), the owner of a 77-percent interest in a 500-megawatt merchant power facility under construction in McClain County, Okla., to NRG Energy. Terms of the transaction were not disclosed.

The McClain Energy Generating Facility is a combined-cycle, natural gas-fired merchant generation facility located near Newcastle, Okla. Construction of the facility began in March 2000, with commercial operations anticipated to begin in summer 2001. DEMc closed on the sale of a 23-percent interest in the facility to the Oklahoma Municipal Power Authority in March 2001.

"Portfolio management is not new to Duke Energy. It’s just one of the ways in which we optimize the value of our regional energy businesses," said Jim Donnell, DENA president and chief executive officer. "The integration of trading and assets also enhances Duke Energy’s ability to capture value from the market and provides greater flexibility in managing our regional business positions. The McClain transaction is a great example of this approach. Although we have divested of our asset, we continue to serve customers and have significant activities in the Southwest Power Pool through our natural gas and power trading and origination business."

The sale of the McClain facility is expected to close in third quarter 2001.

Duke Energy North America (DENA) is Duke Energy’s Houston-based merchant energy company. DENA’s generation portfolio currently includes approximately 6,200 megawatts in operation; 10 facilities under construction totaling more than 5,500 megawatts; and 13,500 megawatts in advanced development scheduled for commercial operation by summer 2004.

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