News Release
Oct. 19, 2001

DUKE ENERGY NORTH AMERICA BREAKS GROUND ON NATURAL GAS-FIRED MERCHANT FACILITY IN LAS VEGAS

LAS VEGAS -- Duke Energy North America (DENA) will help light up the lights of Las Vegas, Nevada, and the western United States with construction of a 1,150-megawatt, natural gas-fired facility in southern Nevada.

Nevada Gov. Kenny Guinn and DENA officials will celebrate construction of Duke Energy’s Moapa -- a $600 million power plant -- during a groundbreaking ceremony today at the plant site, located north of Las Vegas in the Apex Industrial Area. The merchant facility will begin supplying energy to the wholesale market by summer 2003.

"On behalf of all Nevadans, I congratulate Duke Energy for breaking ground on its first power plant in our great state," Guinn said. "With this facility, Duke Energy sets the stage to become the reliable source for cleaner, efficient electricity for Nevada and becomes our partner for continued economic prosperity."

The power plant will be fueled by natural gas from the Kern River Pipeline and provide enough energy for approximately one million homes. The facility produces the type of cleaner, efficient and environmentally safe energy that local elected officials, community leaders and citizens recommended that Duke Energy North American employ.

Jim Donnell, president and chief executive officer of DENA, said building Duke Energy Moapa is just the first step towards what he expects will be a mutually beneficial relationship with Nevadans.

"Nevada is a great fit for Duke Energy’s business given the growing demand for electricity in the state and in the western United States," Donnell said. "Duke Energy welcomes the opportunity to work with the people of Nevada and make an investment in a project that will fuel the state’s economic growth and prosperity for years to come."

Duke Energy affiliate Duke/Fluor Daniel will build the facility, and work closely with local labor unions to complete the project. A peak work force of approximately 700 will be employed during the construction.

"DENA is an excellent company that is committed to building quality facilities and adding value to the communities they are a part of," said Dario Herrera, chair of the Clark County Commission. "Duke Energy’s Moapa power plant will add millions of dollars to the local tax base, improve local electricity reliability and provide the opportunity for future economic development."

Duke Energy North America currently owns 8,000 megawatts in operation and has 5,400 megawatts under construction scheduled to come on line by summer 2002.

Duke Energy’s growth earned it the No. 19 position on the 2000 Business Week 50 – an annual collection of the best performing companies in the Standard & Poor 500. For three consecutive years, the firm has been named the Most Admired Gas and Electric Utility by Fortune magazine and the Worlds Most Respected Utility by the Financial Times of London.

Duke Energy North America (DENA) is Duke Energy’s Houston-based merchant energy company.

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: Diana Vavrek
Phone: 805/459-7853; pager: 877/917-8357
24 Hour Phone: 704/382-8333
Email: davavrek@duke-energy.com