News Release
Dec. 19, 2002


HOUSTON -- Duke Energy announced today that it is restructuring its Duke Energy North America business, naming a new leadership team and consolidating the company’s operations to its Houston office.


As previously announced, Robert T. Ladd has been named president and chief executive officer of Duke Energy North America to lead the restructuring effort and build the business for future success.  Ladd most recently was president and CEO of Duke Capital Partners. Prior to joining Duke Energy, Ladd spent 20 years in finance and banking including corporate finance and global restructuring positions.


“The new Duke Energy North America will focus on customer service and efficient operations and will be committed to operate according to Duke Energy’s values, developed over nearly 100 years of service,” said Ladd. “Our efforts will maximize the value of our portfolio of assets while improving efficiencies, strengthening our culture and leveraging our core capabilities and expertise.”


Regional marketing offices will be maintained in Houston, Salt Lake City and Calgary to provide customer support throughout North America. The company’s trading and marketing operations in Salt Lake City and Calgary will be restructured to further improve management and controls and gain efficiencies through consolidation opportunities with the Duke Energy Trading and Marketing operation in Houston.


Ladd also announced functional business areas and the leadership team for the new organization:


·         Curtis Davis will become senior vice president, energy generation.  Energy Generation will include plant operations, asset development and asset management for Duke Energy North America. Davis was most recently senior vice president for fossil and hydroelectric generation for Duke Energy Generation Services.


·         Nancy DeSchane will continue as president and CEO of trading and marketing operations and provide transitional leadership for two new business areas -- Energy Marketing and Energy Management. The Energy Marketing business will provide solutions to customers’ energy needs including energy supply, transportation, and risk management. The Energy Management business will focus on supporting Energy Marketing’s efforts by providing physical logistics and optimization and will coordinate with Energy Generation to capture maximum value from plant operations. The function will also pursue trading positions in gas, power and petroleum.


·         Kirk Michael has been named senior vice president for strategic development and will manage the areas of strategic planning, acquisitions and divestitures and regulatory policy.  Michael was previously senior vice president and chief financial officer for the company’s former Energy Services group.


·         Lon Mitchell will continue to serve as senior vice president and chief financial officer for Duke Energy North America.


“Our energy marketing function will be a key focus area for us going forward,” said Ladd. “This team will manage and coordinate sales activities around all our assets based on our knowledge of customer needs.”


Duke Energy North America’s consolidation and restructuring will result in a reduction of approximately 275 employees across its operations and locations, including reductions in support staff organizations and in addition to reductions announced in October. The remaining Duke Energy North America work force will total just over 1,000. Severance and relocation costs to the company will be around $15 million with ongoing general and administrative cost savings being approximately $30 million annually. All affected employees will have a separation date of Jan. 31, 2003, at the earliest, and will receive a severance package.


“We are moving quickly to position the organization for stability and certainty and look forward to a productive 2003 and beyond as we implement this business model,” added Ladd.


Duke Energy is a diversified multinational energy company with an integrated network of energy assets and expertise. The company manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses – meeting the energy needs of customers throughout North America and in key markets around the world. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK. More information about the company is available on the Internet at:


Contact: Bryant Kinney
Phone: 713/627-5961
24 Hour Phone: 704/382-8333
Contact: Deb Witmer
Phone: 713/627-5848
24 Hour Phone: 704/382-8333