News Release
December 16, 2004

DUKE ENERGY ANNOUNCES EXECUTIVE ROTATIONS AND 2005 EPS INCENTIVE TARGET; ELECTS NEW BOARD MEMBER

CHARLOTTE, N.C. – Duke Energy’s board of directors today elected two executives to new positions as part of the company’s leadership development process. 

Martha B. Wyrsch, currently group vice president, general counsel and secretary of Duke Energy, will become president and chief executive officer of Duke Energy Gas Transmission (DEGT), reporting to President and Chief Operating Officer Fred Fowler.

Wyrsch will be responsible for operation of the company’s more than 17,500 miles of interstate natural gas pipelines and 250 billion cubic feet of storage capacity in the United States and Canada. She will serve on the company’s Expanded Executive Committee. To ensure an orderly transition, Wyrsch’s new position will be effective March 1, 2005. Her successor will be named at a later date.

Thomas C. O’Connor, currently president and chief executive officer of DEGT, will be attending Harvard University’s Advanced Management Program in spring 2005.  At the completion of that program, O’Connor will return to the company as a member of the Executive Committee with responsibilities for corporate strategy.

“These changes are part of our deliberate strategy to develop Duke Energy’s leadership bench strength for years to come,” said Paul Anderson, chairman of the board and chief executive officer. “Our board is committed to a thorough development and succession planning process, and we work hard at developing opportunities to identify and grow new leaders.

“One of our priorities is to develop a strong and deep management team at all levels of Duke Energy. Martha and Tom have done an outstanding job in their current areas of responsibility, and these reassignments will immerse them in other key areas of our business,” Anderson said.

Wyrsch joined Duke Energy in September 1999 as senior vice president, general counsel and secretary of Duke Energy Field Services. In August 2001, she was named senior vice president and general counsel of energy transmission and distribution, which included the pipeline businesses. She was named senior vice president of legal affairs in February 2003 and to her current position on Jan. 1, 2004.

Prior to joining Duke Energy, Wyrsch was vice president, general counsel and secretary of KN Energy Inc., now known as Kinder-Morgan Inc. A native of Laramie, Wyo., Wyrsch received a bachelor of arts degree in literature from the University of Wyoming and her law degree from George Washington University. She has also completed Harvard’s Advanced Management Program. Wyrsch serves on the University of Wyoming’s Institute for Environment and Natural Resources Board and the board of advisors for the George Washington University Law School.

O’Connor was named president and CEO of DEGT in December 2002.  Earlier that year, he had become president of DEGT’s U.S. operations in conjunction with Duke Energy’s acquisition of Canada’s Westcoast Energy Inc. He has been in leadership positions with Duke Energy’s pipeline operations since 1994.

A native of Lawrence, Mass., O’Connor joined the company in 1987 as supervisor of environmental compliance for Algonquin Gas Transmission in New England. O’Connor received a bachelor of science degree in biology and master of science degree in environmental studies from the University of Massachusetts at Lowell. He serves as chairman of the university’s Science Development Board.

In other action at today’s board meeting, Dennis Hendrix was re-elected as a member of the board. Hendrix is the former president, chairman and chief executive officer of PanEnergy Corporation. He was chairman of the PanEnergy board prior to that company’s merger with Duke Power to form Duke Energy in 1997. Hendrix served on the Duke Energy board until October 2002. He also serves on the boards of Allied Waste Industries Inc., Newfield Exploration Company and Grant Prideco Inc.

The board also approved the company’s 2005 earnings per share target for employee incentive bonuses. The target, which is tied to ongoing basic earnings per share, is $1.60 per share. The minimum, which is the threshold for any earnings related bonus payout, will also be tied to ongoing basic earnings per share and has been established at $1.45 per share.

The $1.60 and $1.45 ongoing basic earnings per share compensation target and minimum amounts, respectively, for 2005 represent non-GAAP financial measures as they exclude any "special items," as defined by the company. The most directly comparable GAAP measure is basic earnings per share that will be based upon reported earnings available for common stockholders for 2005. Due to the forward-looking nature of these non-GAAP financial measures, information to reconcile such non-GAAP financial measures to the most directly comparable GAAP financial measure is not available at this time as the company is unable to project any "special items" for 2005.

As previously announced, the company will host a call tomorrow at 10 a.m. to discuss growth plans for DEGT and respond to analysts’ questions. Investors and other interested persons can listen to the conference by dialing 800/946-0713, confirmation code 102929. International callers should use 719/457-2642. Please dial in 10-15 minutes prior to the scheduled start time. In addition, interested parties may see slides and listen to the audio of the conference call by accessing the investors’ section (http://www.duke-energy.com/investors/) of the company’s Web site at: http://www.duke-energy.com  .  A replay of the conference call will be available through Dec. 26, 2004, midnight ET. The replay number is 888/203-1112, confirmation code 102929. The international replay number is 719/457-0820, confirmation code 102929.

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: 980/373-4503
24-Hour Phone: 704/382-8333
e-mail: pvsheffield@duke-energy.com