News Release
March 10, 2003

UNIVERSITY OF MICHIGAN SIGNS AGREEMENT WITH DUKE ENERGY SUBSIDIARY

ANN ARBOR, MICH. – Engage Energy America has signed an agreement to provide electricity at a fixed price through June 2004 to the University of Michigan.  Engage, an indirect subsidiary of Duke Energy, will provide 180 million kilowatt-hours per year to the university on a firm, non-curtailable basis. This is an extension of an agreement already held by Engage. 

 

Agreements were signed for two portions of the Ann Arbor campus -- central campus and the hospital. As part of the university’s affiliation with the Experimental Retail Access program in Michigan, and in working closely with Engage to evaluate needs, opportunities were recognized that could result in an annual savings for the university of $2.4 million from standard electric business rates. 

 

“The University of Michigan has significant electricity needs, and it is important that we have the security of a long-term contract,” said Richard Robben, director of the University of Michigan’s plant operations. “In addition, our agreement provides that Engage will notify the university of opportunities to purchase renewable energy so that a percentage of the power purchased by the University of Michigan can come from renewable sources. In essence, we’ve committed to an agreement where we have certainty and savings with a market leader and that also provides for environmental considerations.”

 

“Enhancing relationships with existing customers demonstrates part of our marketing commitment to provide customer-focused and innovative solutions to the marketplace. This is a core strength of our company,” said Greg Harper, senior vice president of energy marketing for Duke Energy North America. “The comprehensive nature of the electric services and skills we bring to our customers is vital, and is a primary reason that we were able to extend this agreement with the university.”

 

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 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: Kate Perez
Phone: 713/627-6527
24 Hour Phone: 704/382-8333
Email: kcperez@duke-energy.com