DUKE ENERGY GAS TRANSMISSION INCREASES SCALE AND SCOPE OF WESTERN CANADIAN OPERATIONS - Duke Energy

News Release
February 24, 2005

DUKE ENERGY GAS TRANSMISSION INCREASES SCALE AND SCOPE OF WESTERN CANADIAN OPERATIONS

CALGARY, ALBERTA – Duke Energy Gas Transmission (DEGT) announced today that it will integrate into DEGT’s operations in western Canada, the Canadian operations of Duke Energy Field Services (DEFS) and ConocoPhillips’ interest in its Empress system.  The announcement follows today’s news that Duke Energy and ConocoPhillips have signed an agreement to restructure the DEFS joint venture.

The DEFS Canadian business consists of natural gas gathering and processing facilities in Alberta and British Columbia.  The Empress system operations include natural gas liquids extraction and fractionation facilities in Alberta, related liquids transportation and storage operations, and a Calgary-based logistics group.

“These businesses are a very good strategic fit with DEGT’s operations in western Canada,” said Doug Haughey, president, DEGT West. “The combination of great people and great assets will dramatically increase the scale and scope of DEGT’s operations in the region.”   

The transaction is subject to customary government and regulatory approvals and is expected to close in the second quarter or third quarter of 2005.

Duke Energy Gas Transmission is a North American leader in developing energy infrastructure and connecting major natural gas supply basins to growing markets. The company’s natural gas operations include more than 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in Canada and the United States. 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.

Contact: Toni Beck
Phone: 403/699-1510
24-Hour Phone: 704/382-8333
e-mail: tbeck@duke-energy.com