News Release
June 28, 2002

DUKE ENERGY SELLS INTEREST IN WASHINGTON ENERGY FACILITY

HOUSTON -- Duke Energy business unit Duke Energy North America (DENA) and EPCOR Power Development Corporation (EPDC), a subsidiary of EPCOR Utilities Inc. (EPCOR), today announced the sale of DENA’s 60-percent ownership interest in the 249-megawatt Frederickson energy facility under construction near Seattle to EPDC. This transaction, valued at approximately U.S.$118 million, is expected to close by the end of third quarter, pending regulatory approvals. Upon closing, EPCOR will have 100-percent ownership of the facility.

 

Duke Energy gained an interest in the Frederickson facility following the acquisition of Canadian-based Westcoast Energy in March 2002. DENA is responsible for managing that interest. The sale of the Frederickson facility is consistent with Duke Energy’s strategy to evaluate and manage the assets gained through the Westcoast Energy acquisition as part of the company’s overall merchant generation portfolio.

 

Frederickson is a combined-cycle, natural gas-fired merchant generation facility located south of Seattle and east of Tacoma, Wash. Construction of the facility began in May 2000 and commercial operation is scheduled for this summer. Terms of the purchase and sale agreement provide for a well-planned ownership and management transition of this facility.

 

“The Frederickson facility transaction is consistent with Duke Energy’s portfolio management approach to business,” said Jim Donnell, DENA president and chief executive officer. “We make buy-and-sell decisions around our assets in order to recycle capital for ongoing development and business endeavors.”

 

“In North America, competition in the generation sector occurs on a continental basis. By consolidating our ownership in Frederickson Power, EPCOR is able to more effectively respond to the ongoing need for power in the Pacific Northwest and contribute to economic growth in the region. Today's announcement is very much in keeping with EPCOR's current business strategy to focus on growth markets in generation where there's also potential to develop other parts of our business,” said Brian Vaasjo, president, EPCOR Energy Division.

 

EPCOR is one of Canada's top providers of energy and energy-related services and products. EPCOR owns and operates power plants, electrical transmission and distribution networks; builds and operates water and wastewater treatment facilities and infrastructure; and provides power, water and natural gas to its expanding customer base. With $4 billion in assets and a customer base of 1.9 million, EPCOR is headquartered in Edmonton, Alberta, and has operations throughout Alberta, British Columbia, Ontario and the U.S. Pacific Northwest. More information about EPCOR can be found on our Website at www.epcor.ca.

 

Duke Energy North America (DENA) is Duke Energy's Houston-based merchant energy company. DENA's generation portfolio currently includes approximately 8,000 megawatts in operation. Eleven plants under construction will come on line this quarter, adding 6,700 megawatts to its portfolio.

 

  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: Bethany Vetters, DENA
Phone: 713/627-6301
24 Hour Phone: 704/382-8333
Email: bbvetters@duke-energy.com
Contact: Barbra Korol, EPCOR
Phone: 780/412-8840
24 Hour Phone: n/a
Email: bkorol@epcor.ca