News Release
April 21, 2004

DUKE ENERGY ISSUES STATEMENT ON CHARGES AGAINST FORMER EMPLOYEES FOR SCHEMES TO DEFRAUD THE COMPANY

HOUSTON -- The U.S. Attorney in Houston today issued indictments against three former Duke Energy Trading and Marketing Inc. employees, charging them with participating in schemes to defraud Duke Energy.

According to the U.S. Attorney’s indictment, the three former employees:   “did knowingly devise, intend to devise, and participate in a scheme to defraud and to obtain money and property from Duke Energy by means of materially false and fraudulent pretenses, representations and promises, and material omissions ….”

Duke Energy issued the following statement on the U.S. Attorney’s announcement:

The individuals named in today’s indictments were at one time employed by Duke Energy but no longer work for the company. Duke Energy is reviewing its options for restitution and may take actions, pending the outcome of these indictments.

In 2002, Duke Energy identified issues related to the Eastern trading operations – and took swift action to address them. At that time, we brought these matters to the attention of the government entities examining industry trading activities.

We have cooperated with the U.S. Attorney in Houston and other government agencies throughout their investigations.

The company recorded, in 2002, all the appropriate financial adjustments associated with the activities cited by the U.S. Attorney in today’s announcement. The financial implications were not material to Duke Energy.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in North America and selected international markets. In 2004, the company celebrates a century of service with the 100th anniversary of its electric utility Duke Power. Headquartered in Charlotte, N.C., Duke Energy 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: Peter Sheffield
Phone: 704/373-4503
24-Hour Phone: 704/382-8333
e-mail: pvsheffield@duke-energy.com