News Release
Feb. 10, 2003

DUKE ENERGY AND SACRAMENTO MUNICIPAL UTILITY DISTRICT SETTLE CONTRACT DISPUTE, RESTRUCTURE EXISTING CONTRACT

CHARLOTTE, N.C. – Duke Energy Trading & Marketing (DETM), a subsidiary of Duke Energy, and the Sacramento Municipal Utility District (SMUD) have settled their contract dispute and agreed to restructure an existing long-term, power-supply contract to provide more power to SMUD during certain high-load hours through December 2006. 

 

Under terms of the agreement, DETM will provide SMUD 100 megawatts of electricity during certain higher demand times compared to the previous contract delivery requirements of 50 megawatts around the clock through December 2006.  DETM will provide this electricity from the portfolio of its generation affiliate Duke Energy North America (DENA). Specific terms of the arrangement are confidential.  

 

Concurrently, SMUD has agreed to drop its Federal Energy Regulatory Commission complaint against DETM challenging the market-rate pricing of the existing power- supply contracts entered into with DETM during February and March of 2001.

 

“DETM and SMUD have worked cooperatively to reach an agreement that is in the best interests of all parties and will provide reliable supplies of electricity to consumers in Sacramento, Calif.,” said Robert T. Ladd, president of DENA. “Additionally, this agreement helps resolve concerns for both SMUD and DETM arising from California’s energy crisis while ensuring needed supplies of electricity continue to be available to consumers at reasonable prices.”

 

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 500 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: Pat Mullen
Phone: 805/595-5597
24 Hour Phone: 704/382-8333
Email: pwmullen@duke-energy.com