Released By KeySpan Corporation News Release
March 04, 2003

KeySpan & Duke Energy Name Islander East President

BOSTON & NEW YORK --  KeySpan Corporation (NYSE:KSE) and Duke Energy (NYSE:DUK) announced today that Charles A. Daverio, a near 30-year veteran of KeySpan, has been appointed president of Islander East Pipeline Company.


The appointment is effective immediately.


Islander East is an equal partnership involving subsidiaries of the two companies: KeySpan Energy Development Company and Duke Energy Gas Transmission.


"Chuck Daverio's appointment as president is another significant step in the development of Islander East," said Robert B. Catell, chairman and chief executive officer of KeySpan Corporation. "Islander East will bring much-needed supplies of cleaner-burning natural gas to
New York and Connecticut. Chuck's leadership will provide the focus and direction that will be critical in making that a reality."


Daverio will oversee the construction and operation of the proposed 24-inch diameter, 50-mile-long Islander East pipeline that received Federal Energy Regulatory Commission approval last month. It will initially transport 260,000 dekatherms per day of natural gas, enough to heat 600,000 homes. The added pipeline capacity created by Islander East will increase and diversify access to natural gas supplies and enhance the competitive price of the fuel for the area.


"We couldn't be more pleased to have someone with Chuck Daverio's experience and expertise heading Islander East," said Tom O'Connor, president of Duke Energy Gas Transmission. "He will be a real asset as we move forward in building the pipeline and enhancing the security and reliability of the region's natural gas supply."

 

Islander East will transport natural gas from Connecticut to Long Island, providing an extremely important new source of supply that will help meet growing commercial and residential demand for the fuel in the greater New York City area. The natural gas to be transported originates from recently developed reserves near Sable Island, off the coast of Nova Scotia in Atlantic Canada. It will move to Connecticut and Islander East via the interstate natural gas pipeline grid.


Daverio has been with KeySpan for nearly 30 years, serving most recently as vice president of energy supply. He began his career as an associate engineer, and held various managerial positions in its nuclear engineering department from 1979 through 1989. In 1990, he was named manager of gas supply and planning. In 1993, he was given additional responsibility for gas operations.


A member of the S&P 500, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.5 million gas customers and about 12,000 employees. KeySpan is also the largest investor-owned electric generator in
New York State and operates Long Island's electric system under contract with the Long Island Power Authority for its 1.1 million customers. With headquarters in Brooklyn, Boston and Long Island, KeySpan manages a portfolio of service companies. They include: KeySpan Energy Delivery, the group of regulated natural gas utilities; KeySpan Home Energy Services, a full-service energy company for residential and small commercial customers; and KeySpan Business Solutions, an integrated engineering, mechanical contracting and facility services company specializing in energy solutions for large commercial and institutional customers. KeySpan also has strategic investments in natural-gas exploration and production, pipeline transportation, distribution and storage, as well as Canadian gas processing and fiber-optic cable. For more information about the company, visit KeySpan's Web site at: http://www.keyspanenergy.com.


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: John Sheridan -- Duke Energy
Phone: 617/560-1444
24 Hour Phone: 704/382-8333
Email: jpsheridan@duke-energy.com
Contact: Andrea Staub -- KeySpan
Phone: 516/545-5052; pager: 516/824-1241
24 Hour Phone: n/a
Email: n/a