News Release
April 17, 2002

SALE OF DUKE ENERGY'S ANDERSON WATER COMPANY COMPLETE

ANDERSON, S.C. – Duke Energy announced today the sale of the Anderson Water Company to the Anderson County Joint Municipal Water System and the city of Anderson.

 

“The closing represents many months of hard work by all parties,” said Richard Osborne, Duke Energy executive vice president. “This sale will ensure local ownership to best serve the interests of water customers in the Anderson area for many years to come.” 

 

The agreements for closing are two-fold. The first part represents the sale of the water treatment facility and the related water transmission system to the traditional wholesale customers forming the Anderson County Joint Municipal Water System. The second relates to the sale of the retail water system to the city of Anderson. As a result, the city of Anderson becomes a wholesale customer participant in and a member of the joint system.

 

“These agreements were developed, evaluated and revised for many months,” said Osborne.  “We believe that the final ownership agreements are carefully crafted to best serve the interests of water customers in the Anderson area. While purchasers from outside Anderson County did express serious interest in the water system, this transaction provides the best assurance that the needs of the communities will continue to be met.”

 

The sales agreements have been approved by the Public Service Commission of South Carolina, the U. S. Corps of Engineers, the South Carolina Department of Environmental Control, the Federal Communications Commission and all participating city and county commissions. The Anderson system represented the last municipal water system owned by Duke Energy.

 

Duke Energy announced the sale of the Anderson Water Company in October 1999. 

 

“Duke Energy’s interest in selling the water company was influenced by several factors,” said Osborne. “We knew that the water business was not an area Duke Energy planned to expand, and local ownership was determined to be the most desirable from a future operations and interest perspective. We are satisfied with the final agreements reached.”

 

The Anderson County Joint Municipal Water System and the city of Anderson’s ownership and operations of the facilities and delivery systems begin immediately.

 

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 $59 billion in 2001. 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: Guynn Savage
Phone: 704/382-8350
24 Hour Phone: 704/382-8333
Email: ghsavage@duke-energy.com