News Release
August 23, 2004

NATIONAL ENERGY BOARD APPROVES PIPELINE TOLL SETTLEMENT

CALGARY, AB -- The National Energy Board (NEB) has approved Duke Energy Gas Transmission’s (DEGT’s) two-year negotiated agreement for mainline service tolls on its British Columbia pipeline system.

The two-year agreement – the fourth consecutive agreement of its kind on DEGT’s BC Pipeline - identifies final tolls for 2004 on the pipeline, as well as a method for determining 2005 tolls.

The negotiation process with customers commenced in December 2003. On April 1, DEGT advised the NEB that an agreement for tolls on its BC mainline had been reached.

“This is a tremendous achievement for both DEGT and our customers, and will provide toll stability on the BC Pipeline for this two-year period,” said Gary Weilinger, DEGT West’s vice president of marketing. “In addition, we will be implementing new services on our system which provide customers with increased flexibility,” he continued.

As a result of this agreement, customers’ tolls for mainline transmission service on the northern segment of the pipeline will decrease by 11.5 per cent in 2004, and will increase by 1 percent on the southern segment of the pipeline for the same year.

“We appreciate the collaborative efforts of our customers throughout this negotiation process and applaud the National Energy Board for facilitating and encouraging negotiated settlements,” stated Duane Rae, DEGT West’s vice president of regulatory, lands and business development.

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 17,500 miles of interstate transmission pipeline and about 250 billion cubic feet of storage capacity in Canada and the United States. More information on DEGT can be found at:  http://www.duke-energy.com/businesses/companies/degt.asp

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: Toni Beck
Phone: 403-699-1510
24-Hour Phone: 704-382-8333
e-mail: tbeck@duke-energy.com