News Release
May 17, 2002

DUKE ENERGY REITERATES TRADING STRATEGY

CHARLOTTE, N.C. -- Duke Energy confirmed today that none of its energy trades were done to inflate revenues or trading volumes.

“Our trading operation is measured on and fully focused on profitability and value creation,” said Jim Donnell, president and chief executive officer of Duke Energy North America. “We engage in trading for three purposes -- to serve customers’ needs, to profitably grow our business and to optimize the value of our energy assets. All of our business activities are done with the express goal of generating earnings.”

 

Duke Energy has analyzed its trades for the three-year period from 1999 through 2001 to identify those trades which may have some of the characteristics of sell/buy-back trades. Identified trades accounted for less than 1 percent of the company’s trading and marketing revenues. These trades are commonly conducted to validate real-time prices. None of these trades were entered into to increase volume.

 

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