News Release
April 27, 2005

DUKE ENERGY GAS TRANSMISSION AGREES TO ACQUIRE STORAGE AND PIPELINE ASSETS IN VIRGINIA FROM AGL RESOURCES

Acquisition will grow DEGT’s high-deliverability, natural gas salt storage position in the mid-Atlantic and lead to enhanced supply options for East Tennessee Natural Gas Pipeline shippers

HOUSTON – Duke Energy Gas Transmission (DEGT) announced today it has agreed to acquire natural gas storage and pipeline assets in southwest Virginia and a 50-percent interest in Saltville Gas Storage LLC (Saltville Storage) from units of AGL Resources for $62 million.

DEGT – already a 50-percent owner in Saltville Storage – will become sole owner upon closing.

The transaction is expected to close in the third quarter of this year.

“We believe this transaction will benefit DEGT in several ways,” said Martha B. Wyrsch, president and chief executive officer of the company.

“The acquisition will allow us to grow our high-deliverability salt cavern storage position in one of our market areas as well as grow the customer base of our East Tennessee Natural Gas (ETNG) system. Also, as we work to add the infrastructure that attaches more regional natural gas supply to ETNG, the acquisition of these assets will enhance our value by providing shippers with more supply alternatives and greater transportation flexibility.”

Saltville Storage, which began commercial operation in summer 2003 and is expandable, currently has a working gas capacity of about 2 billion cubic feet (Bcf). The geologic formation in the area provides for the only salt cavern storage in the mid-Atlantic market area.

In addition to Saltville Storage, other hard assets involved in the transaction include a nearby previously developed salt cavern and related facilities with a working gas capacity of about 1 Bcf, a 77-mile-long, 8-inch-diameter natural gas pipeline known as the P-25 line and the Early Grove storage field.

The P-25 pipeline stretches from Saltville to Radford, Va., running parallel to ETNG. The Early Grove facility, site of the first natural gas discovery in Virginia, is a depleted underground natural gas reservoir and related assets with a working gas capacity of about 1.5 Bcf.

“As natural gas supply remains tight and in anticipation of coming volumes of liquefied natural gas (LNG), high deliverability storage will play an increasingly important role in managing natural gas price volatility and meeting peak winter demand,” said Wyrsch.

“We are pleased to be strengthening our mid-Atlantic position with the acquisition of these strategic assets. DEGT will look to maximize the value of our acquisition and expand capacity as warranted as we seek to continue providing cost-effective services to our customers.”

DEGT plans to expand Saltville Storage as market demand dictates. The company already owns and operates more than 32 Bcf of high deliverability salt cavern working gas storage capacity in the Gulf Coast region at its Moss Bluff, Texas, and Egan, La., facilities and is working to develop other like facilities.

AGL Resources (NYSE: ATG), an Atlanta-based energy services holding company, serves 2.3 million customers in six states through its utility subsidiaries - Atlanta Gas Light, Elizabethtown Gas in New Jersey, Virginia Natural Gas in Norfolk, Florida City Gas, Chattanooga Gas, and Elkton Gas in Maryland. A Fortune 1000 company that ranks number 46 in the Fortune gas and electric utilities sector, AGL Resources reported 2004 revenue of $1.8 billion and net income of $153 million. The company also owns Houston-based Sequent Energy Management, an asset manager serving natural gas wholesale customers throughout the East and Midwest.  As a 70 percent owner in the SouthStar partnership, AGL Resources markets natural gas to consumers in Georgia under the Georgia Natural Gas brand.  AGL Networks, the company's telecommunications subsidiary, owns and operates fiber optic networks in Atlanta and Phoenix.  The company also owns and operates Jefferson Island Storage & Hub, a high-deliverability natural gas storage facility near the Henry Hub in Louisiana.  For more information, visit www.aglresources.com.

Duke Energy Gas Transmission is a North American leader in developing natural gas energy infrastructure, connecting major natural gas supply sources to growing markets. Based in Houston, Texas, the company’s assets and operations include more than 17,500 miles of transmission pipeline and about 250 billion cubic feet of storage capacity in Canada and the United States along with gathering, processing and distribution operations in Canada. More information on DEGT can be found at:  http://www.duke-energy.com/businesses/companies/degt.asp.

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 the Americas. 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.

This release includes statements that do not directly or exclusively relate to historical facts. Such statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Those statements represent Duke Energy’s intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside Duke Energy’s control and could cause actual results to differ materially from the results expressed or implied by those forward-looking statements. Those factors include:  state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures, and affect the speed at and degree to which competition enters the electric and natural gas industries; industrial, commercial and residential growth in Duke Energy’s service territories; the weather and other natural phenomena; changes in environmental and other laws and regulations to which Duke Energy and its subsidiaries are subject or other external factors over which Duke Energy has no control; the results of financing efforts, including Duke Energy’s ability to obtain financing on favorable terms, which can be affected by various factors including Duke Energy’s credit ratings and general economic conditions; opportunities for Duke Energy’s business units, including the timing and success of efforts to develop domestic and international power, pipeline, gathering, liquefied natural gas, processing and other infrastructure projects; the performance of electric generation, pipeline and gas processing facilities; the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding gas and electric markets; and other factors described in the company's 2004 Form 10-K and other SEC filings. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than Duke Energy has described. Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Danny Gibbs
Phone: 713/627-4060
24-Hour Phone: 704/382-8333
e-mail: dpgibbs@duke-energy.com