News Release
Oct. 17, 2001

DUKE ENERGY BREAKS GROUND ON NEW POWER GENERATION FACILITY IN DEMING, NEW MEXICO

DEMING, N.M. -- Duke Energy North America (DENA) broke ground on a new 570-megawatt power plant in Deming, N.M., on Oct. 16. The Deming Energy Facility will supply electricity to New Mexico and the Southwest regional wholesale markets by mid-2003.

This state-of-the-art $250 million natural gas-fired plant will supply enough energy to light, heat and cool about 570,000 households, significantly adding to the availability of efficient and cleaner power in the region.

"On behalf of the citizens of the great state of New Mexico, I congratulate DENA for breaking ground on its first power plant in our state," said New Mexico Gov. Gary Johnson. "The Deming Energy Facility will provide critically needed generation capacity, add millions to the local tax base and provide the opportunity for future economic development."

Deming Mayor Sam Baca echoed the governor’s welcome and support for Deming Energy.

"Our city is very excited to welcome DENA to our community," said Mayor Baca. "The new power plant will benefit our city on many levels and we are pleased to help them celebrate this event."

Jim Donnell, president and chief executive officer of DENA, said the Deming Energy Facility is an excellent example of how a progressive local community and private enterprise can work together to ensure the necessary energy infrastructure is in place to support economic growth.

"The need for additional power plants in New Mexico and the Southwest is evident and our development team has been hard at work for more than a year to bring this power plant to Deming. The availability of efficient, reliable and clean energy go hand in hand with the ability of New Mexico to foster and maintain strong economic growth," Donnell said.

The Deming Energy Facility features combined-cycle, natural gas technology, which is environmentally superior and much more efficient than the technology used in older plants. It is called a combined-cycle facility because it will use two natural gas turbines and one steam turbine to produce electricity. The steam turbine utilizes the exhaust heat from the gas turbines to produce additional power. This recycling process makes the plant more efficient and helps to conserve valuable resources.

Duke/Fluor Daniel will build the facility. A peak work force of approximately 350 to 400 skilled workers will be employed during the construction. When complete, the facility will employ approximately 25 operation and maintenance professionals.

DENA 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 Financial Times of London.

Duke Energy North America 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 that $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 company traded on the New Your 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