News Release Jan. 09, 2002

HOUSTON -- Duke Energy International’s subsidiary Grupo Generador de Guatemala y Cia S.C.A. broke ground today on a new 165-megawatt thermal generation plant in San Jose, Guatemala. The $150 million project is scheduled for completion by November 2002.

The new plant will initially use heavy fuel oil and is capable of using advanced emulsified fuel, which is a technically advanced low-cost fuel not traditionally used in Central America.

The groundbreaking ceremony was attended by President Alfonso Portillo and members of the Guatemalan cabinet. “The construction of this technically advanced generation plant is a key component of Duke Energy’s strategy of building an integrated regional energy business,” said Richard McGee, president and chief executive officer of Duke Energy International. “We are very pleased to make this significant investment so soon after our initial entry into Guatemala. By using new technologies and diversifying fuels, we plan to be one of the lowest-cost generators in the market.”

In November 2001, Duke Energy acquired two generating plants at Esquintla and Lake Amatitlan in Guatemala. Combined with other Central American assets acquired in 1999 as part of the privatization of government assets in El Salvador, Duke Energy has a solid platform for the continued growth of its regional trading and marketing operation.

Duke Energy International, a subsidiary of Duke Energy, builds, through development or acquisition, regional energy businesses that include natural gas and power facilities, and energy trading and marketing operations. These regional businesses in Latin America, Asia Pacific and Europe provide a full range of innovative and competitively priced energy services.

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