News Release
March 11, 2004

GRAND JURY INVESTIGATION OF DUKE POWER CONCLUDES WITH NO ACTION

CHARLOTTE, N.C. –The Department of Justice closed its grand jury investigation into issues related to Duke Power’s regulatory reporting, concluding that no action is warranted against the company or its employees. The company was informed of this outcome in a letter received late yesterday from the U.S. attorney for the Western district of North Carolina. 

“We are pleased that this review is complete and that this issue is now behind us,” said Ruth Shaw, president of Duke Power Company. “The U.S. attorney and grand jury have done a thorough and professional review of the regulatory issues, spanning more than a year and over 110,000 pages of Duke Power documents. We are gratified that they concluded there was no basis for further action or review.” 

The grand jury review related to the North Carolina and South Carolina utility commissions’ 2002 audit of Duke Power’s regulatory reporting from 1998 to 2000. Duke Power entered into settlement with the state utilities commissions in late 2002 and acknowledged errors and areas of differences in professional opinions. The U.S. attorney notified Duke Power of its inquiry in February 2003. The company fully cooperated with the investigation.

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