Duke Power Preparing Combined Construction and Operating License; Selects Westinghouse AP1000 Reactor Design - Duke Energy

News Release
October 26, 2005

Duke Power Preparing Combined Construction and Operating License; Selects Westinghouse AP1000 Reactor Design

CHARLOTTE, N.C. – Duke Power confirmed today it is preparing a combined construction and operating license (COL) application for new nuclear generation. The application is for two Westinghouse Advanced Passive 1000 (AP1000) reactors at a site to be named following the conclusion of its current site selection study.

Pursuit of the COL application, which is expected to be submitted to the U.S. Nuclear Regulatory Commission within the next 24-30 months, is part of the company’s long-term generation planning process, and will allow Duke Power to keep new nuclear generation as an option for meeting its customers’ future energy needs.

“Our employees have proven that nuclear generation can provide safe, reliable and cost-effective electricity for our customers,” said Brew Barron, Duke Power chief nuclear officer. “Preparing this application provides us the option to continue using a diverse fuel mix in the future.”

Duke Power’s selection of the Westinghouse AP1000 reactor design allows the company to rely on proven, safe nuclear technology and progressive innovation as it considers a new nuclear power plant. The AP1000 design is based on the same Westinghouse pressurized water reactor (PWR) technology that has achieved thousands of successful reactor-years of operation throughout the world.

Westinghouse PWR technology is currently in use at the Duke Power-operated McGuire and Catawba nuclear stations.

Westinghouse is partnering with The Shaw Group Inc., a global engineering, design, construction and operations firm, on engineering work for this project.  

“The selection of the AP1000 reactor technology is a significant milestone for this project,” said Bryan Dolan, nuclear projects managing director. “We are pleased this work is moving forward.”

In preparing to meet future customer needs, Duke Power is also continuing to evaluate potential new, state-of-the-art coal and combined-cycle plants, and is seeking bids from the wholesale power market.

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.

This document includes 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. Although Duke Energy believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors could cause actual results to differ materially from those in the forward-looking statements herein are discussed in Duke Energy’s 2004 Form 10-K and other filings with the Securities and Exchange Commission. 

Contact: Rita Sipe
Phone: 704/382-8609
24-Hour Phone: 704/382-8333 (option 1)
e-mail: rbsipe@duke-energy.com