News Release
March 20, 2003

DUKE ENERGY SELLS OWNERSHIP INTEREST IN ALLIANCE AND AUX SABLE ASSETS

CHARLOTTE, N.C. – Duke Energy announced today it has reached an agreement to sell its 23.6-percent ownership interest in Alliance Pipeline, Alliance Canada Marketing and Aux Sable natural gas liquids plant to Enbridge Inc. and Fort Chicago Energy Partners L.P. for approximately US$245 million.

 

The transaction is expected to close by late March or early April, with the exception of a small ownership interest related to the U.S. segment of Alliance Pipeline, which is expected to close in October. That ownership interest represents about US$11 million of the proceeds. The sale is subject to necessary approvals under the Canadian Competition Act.

 

Alliance, a 36-inch diameter pipeline with a capacity of 1,550 million cubic feet per day of natural gas, extends 3,000 kilometers from Fort St. John in British Columbia to Chicago, Ill. The Aux Sable plant extracts natural gas liquids at the outlet of the Alliance Pipeline in Chicago.

 

Duke Energy obtained the minority ownership interest in Alliance, Alliance Canada Marketing and Aux Sable through its acquisition of Westcoast Energy in 2002.

 

“This sale of our minority interest in Alliance, Alliance Canada Marketing and Aux Sable is consistent with our overall North American portfolio management strategy and supports Duke Energy Gas Transmission’s objective of growing earnings before interest and taxes by 5 percent to 7 percent annually from 2003 through 2005,” said Richard B. Priory, chairman and chief executive officer of Duke Energy. “This transaction, along with our previously announced asset sales will bring the proceeds from sales of non-strategic assets to more than $600 million in 2003, surpassing our original goal."

 

Duke Energy Gas Transmission is a North American leader in developing energy infrastructure and connecting major natural gas supply basins to growing markets. The company's natural gas operations include more than 18,900 miles of interstate transmission pipeline and 250 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at www.degt.duke-energy.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.

 

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
Phone: 704/373-6680
24 Hour Phone: 704/382-8333
Email: thfrancisco@duke-energy.com
Contact: Danny Gibbs
Phone: 713/627-4060
24 Hour Phone: 704/382-8333
Email: dpgibbs@duke-energy.com