News Release
June 05, 2002

DUKE ENERGY REPORTS NO 'WASH' NATURAL GAS TRANSACTIONS

CHARLOTTE, N.C. -- Duke Energy is reporting to the Federal Energy Regulatory Commission (FERC) that it has not engaged in “wash,” “round trip” or “sell/buyback” natural gas transactions to boost revenues, volumes or prices. The company is filing a sworn affidavit with FERC today after conducting a thorough review of its natural gas trading activities in the western U.S. and Texas markets.

Duke Energy’s affidavit is in response to a May 22 inquiry by FERC to approximately 150 participants in the western
U.S. and/or Texas natural gas markets seeking information on “wash” transactions during 2000 and 2001. To comply, the company analyzed all its western U.S. and Texas natural gas transactions and found none that could be categorized as “wash” transactions.

Out of the more than 30,000 transactions, the company identified only three transactions that occurred simultaneously by prearrangement with the same counterparty for the same amount of natural gas at the same price. These transactions were done at the request of a counterparty and none were entered into by Duke Energy to boost Duke Energy’s revenues, volumes or prices. These three transactions represented a tiny fraction of the British thermal unit volume of Duke Energy’s natural gas transactions during that period in the western U.S. and Texas markets.

 

“The de minimis number of such transactions belies any intent or practice to inflate reported revenues, trading volumes or prices,” Duke Energy said in its filing.

 

The data being reported to FERC today is focused only on simultaneous natural gas transactions in the western U.S. and Texas markets. Initial data Duke Energy released on May 17 included its natural gas and power transactions that occurred between the same counterparties for the same terms on the same day. That report covered the period 1999 through 2001.

 

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 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: Terry Francisco
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com