DUKE ENERGY: SOUTHEAST SUPPLY HUB PROVIDES INTEGRATED SOLUTION TO FLORIDA/ALABAMA/MISSISSIPPI-AREA MARKET

Project Open Season Begins Today

HOUSTON – With ever-increasing demands for natural gas in the U.S. Southeast and in light of recent storm-related supply interruptions there, Duke Energy Gas Transmission (DEGT) is proposing an integrated solution to provide added flexibility and reliability to the southeastern market.

Beginning today, the company will conduct an open season for expressions of interest in firm services related to its “Southeast Supply Hub” project -- a new, integrated high-deliverability natural gas storage facility and pipeline supply header system dedicated to providing hub services to the region.

The open season allows shippers to express non-binding interest in the project through Feb. 28, 2005.

“The multiple hurricanes and tropical storms that impacted Gulf of Mexico gas production in 2004 put severe constraints on eastern Gulf supplies that serve the growing southeast natural gas marketplace,” said Tom O’Connor, president and chief executive officer of DEGT. “Clearly a regional need has been demonstrated for the southeast United States and particularly Florida to be connected to an integrated storage and header pipeline hub. As a leading developer of energy infrastructure, we’re well positioned to respond to this need.”

Initial project facilities are scheduled to be in service as early as mid-2007. DEGT’s proposed “County Line Storage” will be located in Greene County, Miss. This new salt cavern facility with an initial storage capacity of 6 billion cubic feet will interconnect with several interstate pipelines via a new 85-mile-long supply header pipeline capable of transporting 600,000 dekatherms per day initially. The header will be designed for bi-directional flow.

The anticipated interstate pipeline interconnections include Florida Gas Transmission, Transco and Gulfstream.

“The combination of a dedicated header system with integrated salt dome storage will provide the region with supply security and diversity as well as enhance development of a supply hub,” O’Connor said. “The project’s strategic location and multiple pipeline interconnects provide customers with ultimate flexibility for swing service.”

The storage and pipeline facilities will be expandable to 12 Bcf of storage and 1.2 Bcf/d of hub pipeline service as requested by firm market subscriptions.

Those seeking more information about the Southeast Supply Hub or wishing to submit requests for service should contact David Shammo, DEGT’s director of business development SE & Supply at 713/627-4419 or dashammo@duke-energy.com.

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