DUKE POWER AND CSX SETTLE RAIL RATE CASE - Duke Energy

News Release
June 29, 2005

DUKE POWER AND CSX SETTLE RAIL RATE CASE

CHARLOTTE, N.C. – Duke Power has reached a settlement agreement with CSX Transportation to resolve a railroad transportation rate case initiated in December 2001 and currently being considered by the United States Surface Transportation Board. 

Duke Power’s settlement with CSX includes a separate multi-year rail transportation contract at rates comparable to tariff rates that Duke Power has been paying since 2002. It also provides for beneficial access for rail transportation from new coal suppliers. Specific settlement details are confidential.

“We are pleased to have resolved the CSX case which has been pending before the Surface Transportation Board,” said Paul Newton, vice president and general counsel for Duke Power. “The contract will help keep our rail rates stable and provides economical options for purchases of coal from new sources. Like the recent settlement with Norfolk Southern regarding rail rates, these benefits will be passed on to customers annually in our fuel clause adjustment.” 

Duke Power, a business unit of Duke Energy, is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity and value-added products and services to more than 2 million customers in North Carolina and South Carolina. The company operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system generating capability is approximately 19,900 megawatts. More information about Duke Power is available on the Internet at: http://www.dukepower.com.

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: Tom Williams
Phone: 980/373-4743
24-Hour Phone: 704/382-8333
e-mail: tcwillia@duke-energy.com