News Release
June 23, 2004

DUKE ENERGY ANNOUNCES SALE OF NEVADA FACILITY

CHARLOTTE, N.C. -- Duke Energy announced today an agreement to sell its Moapa facility to Nevada Power Company for $182 million. 

The Moapa facility is a partially completed 1,200-megawatt, combined-cycle generating facility located in Clark County, Nev., that is currently in a construction deferral. Duke Energy has two other facilities in a deferred construction status, Grays Harbor in Washington and Deming in New Mexico.

“Consistent with our January decision to reduce exposure in the merchant energy sector, we have been looking for a partner or a buyer for our deferred construction projects,” said Fred Fowler, president and chief operating officer of Duke Energy. “Even before this sale, we had exceeded our asset divestiture target of $1.5 billion for 2004, and with this transaction we continue delivering on our plan to strengthen the balance sheet and to sharpen Duke Energy’s merchant focus on key markets going forward.”

The sale is subject to approval by the Public Utilities Commission of Nevada and is expected to close in the fourth quarter. 

TRANSACTION BACKGROUND

Plant

  • 1200-megawatt, combined-cycle facility in Clark County, Nev.
  • Original groundbreaking:  October 2001
  • Approximately 50 percent complete

Financial Implications

  • Sale Price                                                                  $182 million
  • Expected Tax Benefit                                                $148 million
  • Approximate Cash Benefit                                        $330 million
  • Realized price/kilowatt                                              $275/kilowatt   
  • Annualized reduction in DENA cost due to sale         $14 million

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
Contact: Pat Mullen
Phone: 805/595-5597
24-Hour Phone: 704/382-8333
e-mail: pwmullen@duke-energy.com