News Release
October 11, 2004

DUKE ENERGY TO CONDUCT AUCTION OF MORRO BAY CAPACITY

HOUSTON – Duke Energy will be conducting an auction for the electric generation capacity of its Morro Bay units 3 and 4. The Morro Bay facility is located 12 miles north of San Luis Obispo, Calif., and is connected through the Western Electric Coordinating Council. Units 3 and 4 have a capacity of 325 megawatts each.

All qualified bidders are encouraged to participate in the auction which will be conducted according to the following schedule:

Oct. 11, 2004

Auction terms issued

Oct. 18, 2004 (4 p.m. CT)

Notice to participate forms due

Nov. 5, 2004 (4 p.m. CT)

Bids due

More information about bidder qualifications, the Morro Bay facility and the auction rules can be obtained from James Mackey, manager, energy marketing, Duke Energy; jbmackey@duke-energy.com or 713/989-1727.

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: http://www.duke-energy.com.

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