Duke Energy Gas Transmission Plans Expansion of its Algonquin Gas Transmission System on Cape Cod - Duke Energy

News Release
April 26, 2006

Duke Energy Gas Transmission Plans Expansion of its Algonquin Gas Transmission System on Cape Cod

HOUSTON – Duke Energy Gas Transmission (DEGT) plans to expand its Algonquin Gas Transmission system by constructing a new 3.5 mile, 18-inch diameter natural gas pipeline in the Cape Cod towns of Sandwich and Bourne, Mass.   

“The Cape Cod Lateral will provide KeySpan with firm natural gas transportation service to continue reliably supplying the growing Cape Cod market,” said Bill Yardley, vice president, marketing, business development and customer service.

The proposed pipeline and related facilities will provide KeySpan with 38,000 dekatherms per day (Dth/d) under a 15-year agreement. A member of the S&P 500, KeySpan Corporation (NYSE: KSE) is the largest distributor of natural gas in the Northeast, with 2.6 million gas customers and almost 10,000 employees.

“Over the past few years, we’ve experience increased demand for natural gas on Cape Cod as more homeowners are catching onto the benefits of this clean and environmentally friendly heating fuel,” said Nicholas Stavropoulos, president of KeySpan Energy Delivery. “This project, if approved, will provide additional capacity and enable KeySpan to maintain system reliability and enhance delivery capability throughout the Cape Cod area.”

The project, filed April 21 with the Federal Energy Regulatory Commission, plans to seek appropriate federal, state and local permits during 2006 and early 2007. In order to minimize impacts, the majority of the proposed route follows existing utility corridors. Construction is expected to commence next spring, with a projected in-service date of November 2007.

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For more than a half-century, DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connect natural gas supply sources to premium markets. Based in Houston, Texas, the company's assets include more than 18,500 miles of transmission pipeline and more than 250 billion cubic feet of storage capacity in the United States and Canada. DEGT also has natural gas gathering, processing and distribution assets and natural gas liquids operations that are among the largest in Canada. More information can be found at: http://www.degt.duke-energy.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: John Sheridan
Phone: 617/560-1444
24-Hour Phone: 704/382-8333
e-mail: jpsheridan@duke-energy.com