News Release
May 31, 2002

DUKE ENERGY TO FERC: NO 'WASH' POWER 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” power transactions to boost revenues, volumes or prices. The company is filing a sworn affidavit with the FERC today after conducting a thorough review of its power trading activities in the western U.S. market.

“Our trading operation is measured on and fully focused on profitability and value creation and not on boosting revenue or trading volume,” said Jim Donnell, president and chief executive officer of Duke Energy North America. “Duke Energy did not and does not employ ‘wash’ transactions.”

Duke Energy’s affidavit is in response to a May 21 inquiry by the FERC to more than 100 participants in the western U.S. power market seeking information on “wash” transactions during 2000 and 2001. To comply, the company analyzed all of its western U.S. power transactions and found none that could be categorized as “wash” transactions.

 

Out of the more than 50,000 transactions, the company identified only 13 transactions that occurred simultaneously with the same counterparty for the same amount of power at the same price, and all were for legitimate business purposes. These 13 represented a tiny fraction of the megawatt-hour volume of Duke Energy’s power transactions during that period in the western U.S. market.

 

The data being reported to FERC today is focused only on simultaneous power transactions in the western U.S. market. Initial data Duke Energy released on May 17 included its North American Wholesale Energy segment’s gas and power transactions that occurred between the same counterparties for the same terms. That report covered the period 1999 through 2001. As requested by FERC, Duke Energy will file a report on gas trades in the western market on June 5.

 

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