DUKE ENERGY COMPLETES SALE OF NEVADA FACILITY
CHARLOTTE, N.C. – Duke Energy has completed the sale of its Moapa merchant facility to Nevada Power Company for $182 million. Total sale proceeds and tax benefits for this transaction will be approximately $330 million. Announced in June, the sale includes the 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. “The sale of the Moapa facility is consistent with our plan to divest our partially completed merchant facilities, reduce our merchant exposure and better balance our portfolio,” said Fred Fowler, president and chief operating officer of Duke Energy. Already this year, Duke Energy has announced or closed asset sales that will provide the company with approximately $2.8 billion in proceeds including $650 million in tax benefits, and $840 million in debt reductions, significantly exceeding its 2004 divestiture target. 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.
| Duke Energy Corporation | | | | | | | Anticipated 2004 cash proceeds from asset sales announced and closed | | | | | | | | in millions | | | | | Pre-tax
Cash
Proceeds | | After-tax
Cash
Proceeds | | | Announced/Closed | | | | | |
| | | | | | | Discontinued operations: Australian Assets | | $1,245 | (1) | $1,231 | (1) | | Discontinued operations: Waha | | 62 | | 62 | | | DEGT: Inventory | | 10 | | 7 | | | DENA: Southeast Assets | | 475 | (4) | 975 | (4) | | DENA: Moapa | | 182 | | 330 | | | DENA: Other sales | | 89 | (2) | 122 | (2) | | DETM: Contracts (3) | | (78) | | (51) | | DEI: Cantarell | | 60 | | 60 | | Duke Capital Partners contracts | | 37 | | 37 | | Other: Caribbean Nitrogen Company | | 29 | | 24 | | Other: Other sales | | 39 | | 32 | | | |
| |
| | Total Proceeds 2004 | | $2,150 | | $2,829 | | | |
| |
| | | Rounded | $2,150 | | $2,800 | | | |
| |
| (1) Includes a non-cash debt assumption by the buyer of
approximately $840 million. | | | | | | (2) Net of $45 million cash payment to GE. | | | | | (3) The cash paid for this transaction is included in cash flows from
operating activities. | | | | | | (4) Includes a note receivable of approximately $50 million | | | | |
| Contact: |
Pat Mullen |
| Phone: |
805/595-5597 |
| 24-Hour Phone: |
704/382-8333 |
| e-mail: |
pwmullen@duke-energy.com |
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