News Release
Nov. 08, 2001

DUKE ENERGY ANNOUNCES ACQUISITION OF POWER PLANTS IN GUATEMALA

HOUSTON -- Duke Energy announced today that its international business unit, Duke Energy International (DEI), part of Duke Energy Global Markets, has acquired Grupo Generador de Guatemala y Cia., S.C.A. (Grupo Generador) from affiliates of Constellation Energy Group of Maryland.

Duke Energy will acquire two generating plants owned by Grupo Generador at Esquintla and Lake Amatitlan in Guatemala. The combined capacity of the plants is 167 megawatts. The addition of the two heavy fuel oil plants is part of Duke Energy’s Central American strategy of building an integrated regional energy business to include fuel diversity and cross-border energy trading. Duke Energy plans to expand the existing operations by the construction of an additional 160 megawatts of thermal power generation. The expansion, slated to be operational in the final quarter of 2002, is expected to have the lowest cost structure in the region.

"Guatemala is a key component of our regional strategy," said Duke Energy Global Markets President and Chief Executive Officer Bruce Williamson. "With the proximity of these facilities to our operations in El Salvador, this a logical next step in our expansion in the region."

Duke Energy initially acquired generating assets in Central America in 1999 as part of the privatization of government assets in El Salvador. The company has expanded the capacity of its generating plant at Acajutla, El Salvador, by nearly 50 percent to meet market demand. The expanded capacity at Acajutla, coupled with the assets acquired from Constellation Energy, will provide a solid platform for the continued growth of Duke Energy’s regional trading and marketing operation.

Duke Energy International, a subsidiary of Duke Energy, is a leading owner, operator and developer of integrated energy projects in Asia Pacific and Latin America. DEI's diverse investment and asset portfolio spans the entire energy value chain from exploration, production, gathering, processing and transportation of natural gas to generation, electric transmission and energy trading and marketing.

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.

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. These may include statements of plans and objectives for future operations, statements of future economic performance or assumptions or estimates. The accuracy of these forward-looking statements is subject to a wide range of business risks and changes in circumstances that are described in our reports that are filed from time to time with the Securities and Exchange Commission. Actual results and outcomes often differ from expectations.

Contact: Stephen B. Morisseau
Phone: 713/627-6514
24 Hour Phone: 704/382-8333
Email: sbmorisseau@duke-energy.com