News Release
June 30, 2003

DUKE ENERGY COMPLETES SALE OF INTEREST IN AMERICAN REF-FUEL

CHARLOTTE, N.C.   –   Duke Energy North America (DENA) announced the closing of an agreement to sell its 50-percent ownership interest in Duke/UAE Ref-Fuel for $306 million to Highstar Renewable Fuels LLC, an affiliate of American International Group Inc., and DLJ Merchant Banking Partners III L.P., and its affiliated co-investors, each managed by Credit Suisse First Boston Private Equity. Duke/UAE Ref-Fuel owns American Ref-Fuel Company, a holding company for six waste-to-energy facilities in the northeast United States.   

The facilities, located in Connecticut, Massachusetts, New Jersey, New York and Pennsylvania, convert municipal solid waste into energy and have a gross capacity of 380 megawatts.

"Closing this sale is an important part of our on-going restructuring efforts, as we continue to re-align our asset portfolio,” said Robert T. Ladd, president of DENA.  “We are squarely focused on maximizing the value of our wholesale merchant generation fleet.”

“With the closure of this sale, Duke Energy has now closed on asset sales of more than $1 billion in 2003,” said Richard B. Priory, chairman and chief executive officer. “We are well on our way to our previously stated goal of $1.5 billion in gross proceeds from asset sales this year.”

Duke Energy North America is Duke Energy’s North American merchant energy business. Duke Energy North America’s generation portfolio currently includes about 15,000 megawatts in operation.

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.

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; the effectiveness of the company's risk management and internal controls systems; the timing and extent of changes in commodity prices for oil, 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 gas and electric markets; the performance of electric generation, pipeline and 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.

Contact: Terry Francisco, Duke Energy
Phone: 704/373-6680
24-Hour Phone: 704/382-8333
e-mail: thfrancisco@duke-energy.com
Contact: Kate Perez, Duke Energy North America
Phone: 713/627-6527
24-Hour Phone: 704/382-8333
e-mail: kcperez@duke-energy.com