News Release
February 17, 2004

DUKE POWER CONTRACTS FOR POWER SUPPLIES FROM COMPETITIVE WHOLESALE POWER MARKET

CHARLOTTE, N.C. – Duke Power has finalized its “Request for Proposals” (RFP) and signed a series of contracts with Progress Energy Ventures and Dynegy Power Marketing for peaking power totaling 619 megawatts from 2006 to 2010. 

“The RFP process allows Duke Power to embrace cost-effective solutions provided by regional power plants to meet the increasing demand for electricity in our service territory in North Carolina and South Carolina,” said Sandra Meyer, Duke Power’s executive vice president of customer service, sales & marketing. “In recent years, Duke Power has evaluated whether to secure power on the competitive wholesale market or build our own power plants. Having a variety of choices ultimately helps to ensure that we can reliably meet our customers’ demand for electricity as economically as possible.”

The power will come from Progress Energy Ventures’ Rowan County power plant and Dynegy’s Rockingham County power plant. Duke Power has previously contracted power from both plants, which are located in North Carolina. The price of the contracts is confidential.

Peaking power is used to meet customers’ electricity needs during times of high demand.

Competitively purchased power combined with Duke Power’s highly efficient nuclear and coal-fired plants play an important role in keeping the company’s base rates at 1986 levels and 20 percent below the national average. In 2002 and 2003, Duke Power’s nuclear plants had a capacity factor of 95.2 percent and 90.7 percent respectively (lower in 2003 due to scheduled outages). The company’s coal-fired plants were commercially available 98 percent of the time in 2002 and 97.6 percent in 2003. 

Duke Power, a business unit of Duke Energy, is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity and value-added products and services to more than 2 million customers in North Carolina and South Carolina. In 2004, Duke Power celebrates 100 years of service. The company operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system generating capability is approximately 19,900 megawatts. More information about Duke Power is available on the Internet at: www.dukepower.com.

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. 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: Tom Williams
Phone: 7045/373-4743
24-Hour Phone: 704/382-8333
e-mail: tcwillia@duke-energy.com