News Release
Nov. 29, 2001

DUKE ENERGY CONFIDENT ENERGY SECTOR WILL REMAIN STRONG

CHARLOTTEN.C. --  Duke Energy today expressed confidence in the vitality of the energy sector and said it had taken steps to manage its exposure during the very serious difficulties being experienced by Enron, including instituting a trading halt.

“Although we didn’t completely cease trading with Enron until yesterday, in the course of our normal credit practices, we took steps to limit our exposure to Enron. We currently have approximately $100 million in non-collaterized exposure to Enron. We are closely monitoring this unfortunate situation to determine if a provision against earnings is appropriate,” said Richard J. Osborne, executive vice president and chief risk officer for Duke Energy. 

Osborne was referring to Dynegy’s announcement that it is terminating the merger agreement with Enron and the decision by major rating agencies to downgrade Enron’s long-term debt below investment grade. 

“The market is larger than any one player and is very resilient. Enron’s role and activities in the energy market have significantly diminished over the past several weeks. And, market liquidity is provided by many active trading and marketing companies that have effective risk management practices and sound capitalizations,” Osborne noted.  

 “We at Duke Energy are committed to our customers and fulfilling our contracts and services without disruption. We also continue to see strong growth opportunities ahead and are extremely confident in our ability to achieve or exceed our financial targets this year and next,” Osborne said.

The company remains fully committed to deliver earnings growth within its stated guidance of 10 percent to 15 percent compound annual growth in earnings per share from a base of $2.10 in 2000. Based on the strong results reported for the first three quarters of this year, Duke Energy had previously communicated it will likely exceed 15 percent earnings growth in 2001. Yesterday’s developments do not change that view.

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 CharlotteN.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 Hillings Epstein
Phone: 704/382-1221
24 Hour Phone: 704/382-8333
Email: jhepstein@duke-energy.com