News Release
March 16, 2004

DUKE ENERGY ANNOUNCES SALE OF SURPLUS EQUIPMENT

CHARLOTTE, N.C. -- Duke Energy announced the sale of surplus equipment to two separate counterparties for total proceeds of $138 million. The equipment included eight 7EA gas turbine-generators, two 7FA gas turbine-generators, two heat recovery steam generators and miscellaneous plant equipment. The proceeds represent the approximate net book value of those assets.

The sales were not subject to regulatory approvals and were closed during first quarter 2004. All items sold represented surplus equipment which had been held in storage since initial delivery.

“We are limiting further investment in the merchant energy sector and are maintaining a smaller, more focused generation fleet,” said Robert B. Evans, president of Duke Energy Americas. “These sales significantly reduce our inventory of surplus equipment and provide positive cash generation.”  

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: Kate Perez
Phone: 713/627-6527; Cell: 713/822-8418
24-Hour Phone: 704/382-8333
e-mail: kcperez@duke-energy.com