DUKE ENERGY INKS HUMAN RESOURCES OUTSOURCING CONTRACT WITH HEWITT ASSOCIATES - Duke Energy

News Release
May 16, 2005

DUKE ENERGY INKS HUMAN RESOURCES OUTSOURCING CONTRACT WITH HEWITT ASSOCIATES

CHARLOTTE, N.C. -- Duke Energy today announced that Hewitt Associates, a global human resources services firm, has been selected to provide comprehensive HR back-office administrative services to the company’s U.S. and Canadian employees and retirees.

Under the seven-and-a-half-year contract, effective July 1, Duke Energy will outsource to Hewitt its back-office administration and related information technology systems in the United States and Canada, including payroll, active employee and retiree health and insurance enrollment and status, retirement plan administration, staffing and training enrollment and status, work force event and salary administration, and performance management administration. Other terms of the deal were not disclosed.

The contract will directly affect roughly 100 of Duke Energy’s 21,500 employees, with most of the affected employees located at the Charlotte headquarters site. Hewitt will offer employment to most of the Duke Energy employees performing the work covered in the contract. Ultimately, all Duke Energy’s U.S. and Canadian employees and benefit plan participants will see changes in the manner in which they access some HR information and/or how they perform certain HR-related functions.

“Hewitt currently provides back-office administration for Duke Energy’s retirement and retiree health and insurance plans, and we are confident this contract will be a successful continuation and expansion of that partnership. This will enable us to provide enhanced service to our employees and retirees, while providing a more efficient way to handle back-office human resources work,” said Chris Rolfe, Duke Energy vice president of human resources. “We are also pleased that many Duke Energy employees will continue to work with Duke Energy as Hewitt employees.”

With more than 60 years of experience, Hewitt Associates (NYSE: HEW) is the world’s foremost provider of human resources outsourcing and consulting services. The firm consults with more than 2,300 companies and administers human resources, health care, payroll and retirement programs on behalf of more than 300 companies to millions of employees and retirees worldwide. Located in 35 countries, Hewitt employs approximately 20,000 associates. For more information, please visit www.hewitt.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: Randy Wheeless
Phone: 704/382-8379
24-Hour Phone: 704/382-8333
e-mail: crwheele@duke-energy.com