DUKE ENERGY REPORTS SECOND QUARTER 2003 RESULTS

	News Release July 30, 2003	Close this window

DUKE ENERGY REPORTS SECOND QUARTER 2003 RESULTS

EPS of 46 cents includes 16 cents of gains from asset sales

Sound performance from regulated businesses

Quarterly results include improved performances from Duke Energy International and Field Services

Company surpasses 2003 goal of $1.5 billion in gross proceeds from asset sales, including $280 million of assumed debt

CHARLOTTE, N.C. - Duke Energy reported second quarter 2003 earnings of 46 cents per share, or $424 million in net income, compared to 57 cents per share, or $474 million net income in second quarter 2002.

This quarter's results included $237 million of pre-tax gains on sales of equity investments and assets, or 16 cents per share, compared with $61 million in pre-tax gains for second quarter 2002, or 4 cents per share.

For the first half of 2003, Duke Energy earned 71 cents per share, or $649 million in net income, which included a first quarter 18 cent, or $162 million, after-tax charge for the cumulative effect of a change in accounting principles. Before the effect of this change in accounting principles, Duke Energy earned 89 cents, or $811 million in net income, in the first half of 2003. The company earned $1.05 a share, or $856 million in net income, in the first half of 2002.

"We are executing on the strategic directives we laid out in January and operating our businesses with discipline and efficiency," said Richard B. Priory, chairman and chief executive officer. "2003 is proving to be another challenging year with a weak merchant energy sector and a sluggish economy. Despite these challenges, we still believe we will achieve full year 2003 results in the range of $1.35 -- $1.60 earnings per share (EPS) before a charge for the cumulative effect of a previously announced change in accounting principles.

"Our strategic divestitures have bolstered cash flow without drawing from the lifeblood of the company," Priory said. "Duke Energy is becoming a leaner, stronger and more agile competitor, backed by large, profitable, regulated businesses with predictable cash flows and earnings."

BUSINESS UNIT RESULTS

Consolidated Earnings before Interest and Taxes (EBIT) was $1.02 billion, which included $237 million in pre-tax gains on sales of equity investments and assets, compared with $1.06 billion in second quarter 2002, which included $61 million in pre-tax gains from asset sales. For the first half of 2003, EBIT was $1.99 billion, an increase of 9 percent over EBIT for the first six months of 2002. Below is a reconciliation of EBIT to net income:

($ in Millions )	Three Months Ended 6/30/03	Three Months Ended 6/30/02	Six Months Ended 6/30/03	Six Months Ended 6/30/02
EBIT, as defined below	$1,020	$1,057	$1,994	$1,827
Cumulative effect of change in accounting principles, net of tax	----	----	162	----
Income taxes	195	247	390	405
Minority Interest	60	62	112	94
Interest expense	341	274	681	472
Net income	$424	$474	$649	$856

Franchised Electric
Second quarter 2003 EBIT from Franchised Electric was $316 million, compared to second quarter 2002 EBIT of $388 million. Results were primarily affected by significantly cooler than normal weather during the quarter. In second quarter 2003, cooling degree days were 30 percent below average. By comparison, cooling degree days in second quarter 2002 were 22 percent above average. Additionally, results were lower due to higher depreciation and amortization costs of $26 million, primarily related to the North Carolina 2002 clean air legislation. Those reductions were partially offset by increased plant efficiency and slightly higher wholesale power sales.

Year-to-date EBIT for Franchised Electric was $770 million, compared with $772 million in 2002.

Natural Gas Transmission
The Duke Energy Natural Gas Transmission (DEGT) segment reported second quarter 2003 EBIT of $306 million, compared to $313 million in second quarter 2002. Results included a pre-tax gain of $31 million from the sale of DEGT's ownership interest in Alliance pipeline/Aux Sable processing plant. Second quarter 2002 results included a $27 million success fee associated with the completion of the Gulfstream Natural Gas System LLC, a 50-percent joint venture of DEGT.

During the quarter, Gulfstream signed a 23-year agreement with Florida Power & Light Company (FPL) in which Gulfstream will provide up to 350 million cubic feet per day of firm natural gas transportation service to FPL for its Martin and Manatee power plant expansions beginning in 2005. With this agreement, Gulfstream will increase its pipeline capacity contracted to 65 percent with an average contract term of 21 years. Placed into service last year, Gulfstream is currently a 581-mile pipeline system with the capacity to deliver 1.1 billion cubic feet of natural gas each day to serve Florida's growing energy needs.

Year-to-date EBIT for DEGT was $729 million, compared with $579 million in 2002.

Duke Energy North America
Duke Energy North America (DENA) reported EBIT of $211 million in second quarter 2003, compared to EBIT of $196 million in second quarter 2002. Results for the second quarter included a pre-tax gain of $175 million from the sale of DENA's ownership interest in American Ref-Fuel. Second quarter 2002 results included a $46 million increase from the appreciation of the fair value of the mark-to-market portfolio as a result of applying improved and standardized valuation modeling techniques to all North American regions. Lower operating results in second quarter 2003 were due to decreased spark spreads, a reduction in mark-to-market earnings, and higher depreciation expenses related to the addition of 2,535 megawatts of new capacity.

Year-to-date EBIT for DENA was $234 million, compared with $250 million in 2002.

International Energy
For second quarter 2003, Duke Energy International (DEI) reported EBIT of $111 million, nearly doubling second quarter 2002 EBIT of $57 million. This quarter's performance was positively impacted by improved gas marketing results in Europe and cost-reduction efforts. Results for the quarter were also positively impacted by $37 million related to a favorable regulatory audit in Brazil and early termination of a natural gas sales contract. These results were partially offset by the change in the values of the Brazilian real and the Mexican peso against the U.S. dollar, from the second quarter of last year.

Year-to-date EBIT for DEI was $165 million, compared with $114 million in 2002.

Field Services
The Field Services business segment, which represents Duke Energy's 70-percent interest in Duke Energy Field Services (DEFS), reported second quarter 2003 EBIT of $76 million compared to $41 million in second quarter 2002. The effects of higher natural gas prices and hedging results related to the price movements of natural gas liquids (NGL) offset the favorable impact of higher NGL prices during the period. Results were positively impacted by a pre-tax gain on sale of assets of $18 million and a pre-tax gain on sale of TEPPCO class B units of $11 million. In second quarter 2002, results were negatively impacted by $13 million due to increased reserves primarily related to imbalances with customers and suppliers and a storage inventory write-down charge.

Year-to-date EBIT in 2003 for Field Services was $109 million compared to $76 million in 2002.

Other Operations
Other Operations, including Crescent Resources, DukeNet Communications, Duke Capital Partners, Duke/Fluor Daniel (D/FD), Duke Energy Merchants and Energy Delivery Services, reported EBIT of $18 million in second quarter 2003, compared to EBIT of $128 million in second quarter 2002.

Results were affected by reduced results at D/FD and Duke Capital Partners. D/FD's second quarter 2002 results were positively impacted by the completion of 10 plants. Second quarter 2002 results from Other Operations also benefited from $68 million in pre-tax gains on the sales of water operations, the former Duke Engineering & Services business and Duke Energy Merchants' interest in Canadian 88, offset by a pre-tax loss of $7 million due to the sale of DukeSolutions.

Year-to-date EBIT in 2003 for Other Operations was negative $8 million compared to $145 million in positive EBIT in 2002.

On July 9, Duke Energy and Fluor Corporation announced that D/FD, a partnership between affiliates of the two companies, will be dissolved. The partners will wind down the business over the next two years.

INTEREST EXPENSE

Interest expense was $341 million for second quarter 2003, compared to $274 million for second quarter 2002. The increase was primarily due to reduced capitalized interest at DENA resulting from significantly lower plant construction activity in 2003.

CASH FLOW

For the six months ending June 30, 2003, cash flow from operations was $1.9 billion, compared to $1.5 billion for the first six months ending June 30, 2002. In 2003, Duke Energy expects cash flow from operations, which includes ongoing real estate sales at Crescent Resources, combined with proceeds from divestitures at other business units, to more than adequately fund capital expenditures of approximately $3 billion and the approximately $1 billion needed to fund the $1.10 per share dividend.

Earlier this month the company announced that it had surpassed its 2003 goal of realizing more than $1.5 billion in gross proceeds from asset sales, including $280 million in assumed debt. Proceeds in excess of the amounts needed to help fund capital expenditures and pay the dividend will be available to pay down debt. The company believes it will pay down approximately $1.8 billion in debt and trust preferred securities this year and $5.5 billion in debt and trust preferred securities by the end of 2005.

LIQUIDITY AND CAPITAL RESOURCES

Duke Energy's consolidated capital structure as of June 30, 2003, including short-term debt, was 55 percent debt, 37 percent common equity, 4 percent minority interests and 4 percent preferred securities.

Under various credit facilities, Duke Energy, Duke Capital and other subsidiaries had the ability to borrow up to $4.7 billion as of June 30, 2003. The companies had borrowings and letters of credit outstanding under these programs of approximately $1.6 billion as of June 30, 2003, resulting in unused capacity of approximately $3.1 billion. The company also had approximately $1.5 billion in cash and cash equivalents as of June 30, 2003.

ADDITIONAL INFORMATION

Additional information, including EPS reconciliation data and a schedule for Duke Energy Field Services gas volume and margin by contract type, can be obtained at Duke Energy's second quarter 2003 earnings information Web site at: www.duke-energy.com/investors/earnings/.

FINANCIAL MEASURES

The primary performance measure used by management to evaluate segment performance is EBIT, which at the segment level represents all profits (both operating and non-operating) before deducting interest and taxes, and is net of the minority interest expense related to those profits. Management believes EBIT is a good indicator of each segment's operating performance as it represents the results of our ownership interests in operations without regard to financing methods or capital structures.

On a consolidated basis, EBIT is also used as one of the measures to assess performance and represents the combination of operating income and other income and expenses as presented on the consolidated statements of income. The use of EBIT as one of the performance measures on a consolidated basis follows the use of EBIT for assessing segment performance, and we believe EBIT is used by our investors as a supplemental financial measure in the evaluation of our consolidated results of operations.

EBIT should not be considered an alternative to, or more meaningful than, net income, operating income or cash flow as determined in accordance with generally accepted accounting principles (GAAP). Duke Energy's EBIT may not be comparable to a similarly titled measure of another company.

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.

An earnings conference call for analysts is scheduled for 10 a.m. ET today. The conference call can be accessed via the investors' section of Duke Energy's Web site or by dialing 800/946-0786 in the United States or 719/457-2662 outside the United States. The confirmation code is 159448. Please call in five to 10 minutes prior to the scheduled start time. A replay of the conference call will be available by dialing 888/203-1112 with a confirmation code of 159448. The international replay number is 719/457-0820, confirmation code 159448. A replay and transcript also will be available by accessing the investors' section of the company's Web site. The presentation may include certain non-GAAP financial measures as defined under SEC rules. In such event, a reconciliation of those measures to the most directly comparable GAAP measures will be available on our investor relations Web site at: www.duke-energy.com/investors/financial/gaap.

This document includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include legislative and regulatory developments; the outcomes of litigation and regulatory proceedings or inquiries; general economic conditions, including any potential effects arising from terrorist attacks and any consequential hostilities or other hostilities; the effectiveness of the company's risk management and internal controls systems; the timing and extent of changes in commodity prices for oil, natural gas, coal, electricity and interest rates; the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding natural gas and electric markets; the performance of electric generation, pipeline and natural gas processing facilities; the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and other factors discussed in Duke Energy's filings with the Securities and Exchange Commission.

Media Contact:	Terry Francisco
Phone:	704/373-6680
24 Hour Phone:	704/382-8333

Analyst Contact:	Greg Ebel
Phone:	704/382-8118

JUNE 2003 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	Three Months Ended June 30,		Six Months Ended June 30,

(In millions, except where noted)	2003	2002	2003	2002

COMMON STOCK DATA
Earnings Per Share (before cumulative effect of change
in accounting principles)
Basic	$0.46	$0.57	$0.89	$1.05
Diluted	$0.46	$0.56	$0.89	$1.04
Earnings Per Share
Basic	$0.46	$0.57	$0.71	$1.05
Diluted	$0.46	$0.56	$0.71	$1.04
Dividends Per Share	$0.550	$0.550	$0.825	$0.825
Weighted-Average Shares Outstanding
Basic	902	831	899	809
Diluted	903	834	900	813


INCOME
Operating Revenues	$5,268	$3,873	$11,573	$7,181

Earnings Before Interest and Taxes (EBIT)	1,020	1,057	1,994	1,827
Interest Expense	341	274	681	472
Minority Interest Expense (a)	60	62	112	94
Income Taxes	195	247	390	405
Cumulative Effect of Change in Accounting Principles,	-	-	(162)	-
net of tax and minority interest

Net Income	424	474	649	856
Dividends and Premiums on Redemptions of	7	4	10	7
Preferred and Preference Stock

Earnings Available for Common Stockholders	$417	$470	$639	$849


CAPITALIZATION
Common Equity			37%	36%
Preferred Stock			1%	1%
Trust Preferred Securities			3%	3%

Total Common Equity and Preferred Securities			41%	40%
Minority Interest			4%	7%
Total Debt			55%	53%


Fixed Charges Coverage, using SEC guidelines			2.6	2.7
Total Debt			$22,766	$22,010
Book Value Per Share			$17.38	$17.89
Actual Shares Outstanding			904	832

CAPITAL AND INVESTMENT EXPENDITURES
Franchised Electric	$310	$323	$486	$567
Natural Gas Transmission (b)	233	253	431	2,290
Field Services	31	74	62	184
Duke Energy North America	97	785	257	1,521
International Energy	18	136	43	217
Other Operations (c)	79	171	148	305
Other	(43)	(36)	3	-
Cash acquired in acquisitions	-	-	-	(77)

Total Capital and Investment Expenditures	$725	$1,706	$1,430	$5,007



EBIT BY BUSINESS SEGMENT
Franchised Electric	$316	$388	$770	$772
Natural Gas Transmission	306	313	729	579
Field Services	76	41	109	76
Duke Energy North America	211	196	234	250
International Energy	111	57	165	114
Other Operations (c)	18	128	(8)	145
Other	(80)	(131)	(111)	(238)

Total Segment and Other EBIT	958	992	1,888	1,698
EBIT Attributable to:
Minority Interests	46	42	92	56
Third Party Interest Income	8	15	11	56
Foreign Currency Remeasurement Gain	8	8	3	17

Total EBIT	$1,020	$1,057	$1,994	$1,827


(a) Includes financing expenses related to securities of subsidiaries of $28 million and $35 million for the three months ended June 30, 2003 and 2002, respectively, and $55 million and $70 million for the six months ended June 30, 2003 and 2002, respectively.
(b) 2002 six months ended amount includes $1.7 billion (net of cash acquired) paid to Westcoast Energy shareholders related to the acquisition.
(c) Beginning in 2003, Other Energy Services and Duke Ventures were combined into Other Operations.

JUNE 2003 QUARTERLY HIGHLIGHTS (unaudited)

	Three Months Ended June 30,		Six Months Ended June 30,
	Three Months Ended June 30,		Six Months Ended June 30,

(In millions, except where noted)	2003	2002	2003	2002

FRANCHISED ELECTRIC
Operating Revenues	$1,110	$1,162	$2,361	$2,275
Operating Expenses	809	790	1,622	1,536
Gain on Sale of Assets	-	-	1	-
Other Income	15	16	30	33

EBIT	$316	$388	$770	$772

Sales, GWh	19,415	20,418	41,458	39,939


NATURAL GAS TRANSMISSION
Operating Revenues	$692	$621	$1,660	$1,071
Operating Expenses	421	361	988	579
Gain on Sale of Assets	-	-	1	-
Other Income (a)	45	62	79	99
Minority Interest Expense	10	9	23	12

EBIT	$306	$313	$729	$579

Proportional Throughput, TBtu	742	702	1,824	1,372


FIELD SERVICES
Operating Revenues	$1,924	$1,376	$4,377	$2,510
Operating Expenses	1,861	1,333	4,268	2,432
Gain on Sale of Assets	26	-	26	-
Other Income (b)	24	11	39	19
Minority Interest Expense	37	13	65	21

EBIT	$76	$41	$109	$76

Natural Gas Gathered and Processed/Transported, TBtu/day	7.9	8.4	7.9	8.4
Natural Gas Liquids Production, MBbl/d	361.5	392.0	368.3	390.4
Average Natural Gas Price per MMBtu	$5.41	$3.40	$6.00	$2.86
Average Natural Gas Liquids Price per Gallon	$0.49	$0.37	$0.54	$0.34


DUKE ENERGY NORTH AMERICA
Operating Revenues	$962	$409	$2,358	$667
Operating Expenses	945	220	2,327	420
Other Income (c)	187	21	196	16
Minority Interest (Benefit) Expense	(7)	14	(7)	13

EBIT	$211	$196	$234	$250

Actual Plant Production, GWh (d)	4,510	4,704	9,620	8,571
Proportional MW Capacity in Operation			15,206	12,671


INTERNATIONAL ENERGY
Operating Revenues	$366	$219	$748	$508
Operating Expenses	266	179	597	414
Other Income	16	23	24	31
Minority Interest Expense	5	6	10	11

EBIT	$111	$57	$165	$114

Sales, GWh	5,318	5,014	10,077	9,946
Proportional MW Capacity in Operation			4,887	4,971
Proportional Maximum Pipeline Capacity in Operation, MMcf/d			363	363


OTHER OPERATIONS
Operating Revenues	$435	$159	$991	$347
Operating Expenses	425	140	1,014	309
(Loss) Gain on Sale of Assets	(8)	61	(20)	46
Other Income	17	48	36	60
Minority Interest Expense (Benefit)	1	-	1	(1)

EBIT	$18	$128	$(8)	$145


(a) For 2003, other income includes approximately $31 million gain on sale of the Alliance/Aux Sable equity investment.
(b) For 2003, other income includes approximately $11 million gain on sale of Teppco Class B shares.
(c) For 2003, other income includes approximately $175 million gain on sale of the American Ref-Fuel Company equity investment.
(d) Represents 100% of GWh.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (In millions, except per share amounts)


			Three Months Ended June 30,		Six Months Ended June 30,
			Three Months Ended June 30,		Six Months Ended June 30,

			2003	2002	2003	2002

Operating Revenues
	Sales of natural gas and petroleum products		$2,980	$1,191	$7,065	$2,172
	Generation, transmission and distribution of electricity		1,492	1,582	3,234	3,169
	Transportation and storage of natural gas		415	447	832	773
	Trading and marketing net margin (loss)		63	425	(27)	669
	Other		318	228	469	398

		Total operating revenues	5,268	3,873	11,573	7,181

Operating Expenses
	Natural gas and petroleum products purchased		2,642	1,245	6,174	2,139
	Fuel used in electric generation		261	312	698	627
	Net interchange and purchased power		118	122	243	230
	Operation and maintenance		963	823	1,681	1,660
	Depreciation and amortization		454	397	903	741
	Property and other taxes		134	132	275	259

		Total operating expenses	4,572	3,031	9,974	5,656

Gain on Sale of Other Assets, net			18	61	8	46

Operating Income			714	903	1,607	1,571

Other Income and Expenses
	Equity in earnings of unconsolidated affiliates		16	100	50	109
	Gain on sale of equity investments		219	-	233	14
	Other income and expenses, net		71	54	104	133

		Total other income and expenses	306	154	387	256
Interest Expense			341	274	681	472
Minority Interest Expense			60	62	112	94


Earnings Before Income Taxes			619	721	1,201	1,261
Income Taxes			195	247	390	405

Income Before Cumulative Effect of Change in			424	474	811	856
Accounting Principles
Cumulative Effect of Change in Accounting Principles,			-	-	(162)	-
net of tax and minority interest

Net Income			424	474	649	856
Dividends and Premiums on Redemptions of Preferred and			7	4	10	7
Preference Stock

Earnings Available For Common Stockholders			$417	$470	$639	$849

Common Stock Data
	Weighted-average shares outstanding		902	831	899	809
	Earnings per share (before cumulative effect of change
	in accounting principles)
		Basic	$0.46	$0.57	$0.89	$1.05
		Diluted	$0.46	$0.56	$0.89	$1.04
	Earnings per share
		Basic	$0.46	$0.57	$0.71	$1.05
		Diluted	$0.46	$0.56	$0.71	$1.04
	Dividends per share		$0.550	$0.550	$0.825	$0.825

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (In millions)

				Six Months Ended June 30,
				Six Months Ended June 30,

				2003	2002

CASH FLOWS FROM OPERATING ACTIVITIES
	Net income			$649	$856
	Adjustments to reconcile net income to net cash provided by
		operating activities:
		Depreciation and amortization (including amortization of nuclear fuel)		972	789
		Cumulative effect of change in accounting principles		162	-
		Net realized and unrealized mark-to-market and hedging transactions		(42)	(27)
		Gains on sale of equity investments and other assets, net		(241)	(60)
		Changes in working capital and other		388	(12)

			Net cash provided by operating activities	1,888	1,546


CASH FLOWS FROM INVESTING ACTIVITIES
		Capital and investment expenditures, net		(1,430)	(3,300)
		Acquisition of Westcoast Energy Inc., net of cash acquired		-	(1,707)
		Proceeds from the sale of equity investments and other assets
			and collections on notes receivable	1,279	267
		Other		(51)	93

			Net cash used in investing activities	(202)	(4,647)


CASH FLOWS FROM FINANCING ACTIVITIES
		Proceeds from:
			Issuance of long-term debt	1,707	2,743
			Issuance of common stock and the exercise of stock options	150	211
		Payments for the redemption of long-term debt and guaranteed
			preferred beneficial interests, and net change in notes payable
			and commercial paper	(2,387)	165
		Dividends paid		(524)	(459)
		Other		(7)	238

			Net cash (used in) provided by financing activities	(1,061)	2,898


	Net increase (decrease) in cash and cash equivalents			625	(203)
	Cash and cash equivalents at beginning of period			857	290

	Cash and cash equivalents at end of period			$1,482	$87

CONSOLIDATED BALANCE SHEETS (In millions)


			June 30, 2003 (Unaudited)	December 31, 2002


ASSETS

Current Assets
	Cash and cash equivalents		$1,482	$857
	Receivables		6,111	6,766
	Inventory		1,179	1,134
	Unrealized gains on mark-to-market and hedging transactions		2,601	2,144
	Other		1,162	952

		Total current assets	12,535	11,853


Investments and Other Assets
	Investments in unconsolidated affiliates		1,625	2,066
	Nuclear decommissioning trust funds		803	708
	Goodwill, net of accumulated amortization		3,747	3,747
	Notes receivable		535	589
	Unrealized gains on mark-to-market and hedging transactions		3,168	2,480
	Other		1,717	1,645

		Total investments and other assets	11,595	11,235


Property, Plant and Equipment
	Cost		50,953	48,677
	Less accumulated depreciation and amortization		13,219	12,458

		Net property, plant and equipment	37,734	36,219


Regulatory Assets and Deferred Debits
	Deferred debt expense		256	263
	Regulatory asset related to income taxes		1,022	936
	Other		1,036	460

		Total regulatory assets and deferred debits	2,314	1,659









	Total Assets		$64,178	$60,966

CONSOLIDATED BALANCE SHEETS (In millions)


			June 30, 2003 (Unaudited)	December 31, 2002



LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

Current Liabilities
	Accounts payable		$5,259	$5,590
	Notes payable and commercial paper		737	915
	Taxes accrued		653	156
	Interest accrued		332	310
	Current maturities of long-term debt and preferred stock		936	1,331
	Unrealized losses on mark-to-market and hedging transactions		2,164	1,918
	Other		1,820	1,770

		Total current liabilities	11,901	11,990


Long-term Debt			21,095	20,221


Deferred Credits and Other Liabilities
	Deferred income taxes		5,157	4,834
	Investment tax credit		171	176
	Unrealized losses on mark-to-market and hedging transactions		2,195	1,548
	Other		4,744	3,784

		Total deferred credits and other liabilities	12,267	10,342


Commitments and Contingencies

Guaranteed Preferred Beneficial Interests in Subordinated
	Notes of Duke Energy Corporation or Subsidiaries		1,166	1,408


Minority Interests			1,884	1,904


Preferred and Preference Stock
	Preferred and preference stock with sinking fund requirements		23	23
	Preferred and preference stock without sinking fund requirements		134	134

		Total preferred and preference stock	157	157


Common Stockholders' Equity
	Common stock, no par, 2 billion shares authorized; 904 million
		and 895 million shares outstanding as of June 30, 2003
		and December 31, 2002, respectively	9,389	9,236

	Retained earnings		6,314	6,417
	Accumulated other comprehensive income (loss)		5	(709)

		Total common stockholders' equity	15,708	14,944

	Total Liabilities and Common Stockholders' Equity		$64,178	$60,966

Supplemental Disclosures Quarter Ended June 30, 2003



Duke Energy Corporation

	2Q03

Mark-to-market Portfolio (in billions)	$0.3

Daily Value at Risk (DvaR) (in millions)

95% Confidence Level, One-Day Holding Period, Two-Tailed
Average for the Period	$13



Duke Energy North America

(in millions unless stated otherwise)	Q-T-D June 30, 2003

	Proprietary Trading	Structured Contracts	Owned Assets	Total
Merchant Energy Gross Margin	Proprietary Trading	Structured Contracts	Owned Assets	Total

Mark-to-market gross margin	$10	$59	$-	$69
Accrual gross margin (loss)	n/a	(38)	185	147

Total Gross Margin	$10	$21	$185	216


Reconciliation to Segment EBIT:
Plant depreciation				(58)
Plant operating and maintenance expenses				(72)
General and administrative and other expenses				(50)
Gain on sale of American Ref-Fuel				175

DENA Segment EBIT				$211



Owned Assets - Merchant Plant Production
and Hedging Information	2003 *	2004	2005

Estimated available production (millions of MWh)	47	99	108
Combined cycle	38	80	86
Peaker units	9	19	22

Estimated production (millions of MWh)	16	34	37
Combined cycle	15	32	35
Peaker units	1	2	2

Hedges
Estimated production hedged	93%	85%	68%
Average price hedged ($/MWh)	$50	$44	$39

* Information for 2003 is for the remainder of the year only
(July - December).

Supplemental Disclosures Quarter Ended June 30, 2003



Duke Energy North America (continued)

(in millions)


Maturity/Source of Fair Value of	2003	2004	2005	2006	2007	Over5 Years	TotalFair Value
Energy Contract Net Assets	2003	2004	2005	2006	2007	Over5 Years	TotalFair Value

Proprietary Trading
Actively quoted prices and other external sources	$65	$116	$-	$(1)	$-	$6	$186
Modeled	9	18	11	20	(1)	(7)	50

	$74	$134	$11	$19	$(1)	$(1)	$236

Structured Contracts
Actively quoted prices and other external sources	$73	$14	$19	$3	$(1)	$(1)	$107
Modeled	(18)	(40)	(31)	29	34	71	45

	$55	$(26)	$(12)	$32	$33	$70	$152


Owned Assets
Actively quoted prices and other external sources	$290	$355	$149	$8	$-	$-	$802
Modeled	-	-	78	161	124	223	586

	$290	$355	$227	$169	$124	$223	$1,388


	Total Fair Value of Energy Contract Net Assets *						$1,776



* Total Fair Value of Energy Contract Net Assets represents the combination of amounts presented as assets and liabilities related to unrealized gains or losses on mark-to-market and hedging transactions for Duke Energy North America.


Terms of Reference


Estimated Available Production
Represents the amount of electric power capable of being generated from owned merchant assets, after adjusting for scheduled maintenance and outage factors. For simple cycle facilities, only peak demand periods were included in this calculation.

Estimated Production
Represents the amount of power expected to be sold in a future period. This figure is based on economic projections modeled by Duke Energy personnel.

Estimated Production Hedged
Represents the portion of estimated production which has been sold.

Owned Assets
Represents activity around energy assets owned or leased, including hedges of power sales and fuel purchase requirements and tolls, transmission, transportations and storage contracts that hedge owned assets. Normal purchases and sales associated with such assets are included in the Merchant Energy Gross Margin table, yet excluded from the Maturity/Sources of Fair Value of Energy Contract Net Assets table. Economic hedges of Owned Assets that do not meet hedge accounting standards will still be classified as Owned Assets in the Merchant Energy Gross Margin table.

Proprietary Trading
Standardized contracts entered into to take a market view, capture market price changes or put capital at risk.

Structured Contracts
Non-standard contracts not associated with owned or leased assets and involving significant tailoring of terms to meet customer needs, and associated hedges. This category includes tolls, transmission contracts, transportation contracts and storage contracts,except those that hedge Owned Assets. Economic hedges of Structured Contracts that do not meet hedge accounting standards will still be classified as Structured Contracts in the Merchant Energy Gross Margin table.