Duke Energy Increases Ownership Interest in Peru Facility - Duke Energy

News Release
March 29, 2006

Duke Energy Increases Ownership Interest in Peru Facility

HOUSTON -- Duke Energy International (DEI) has closed on two transactions which increased its ownership in the Aguaytia Integrated Energy Project (Aguaytia) to 64.9 percent.

Aguaytia is an integrated energy project located in the Amazon Basin of Peru. The project’s scope includes the production and processing of natural gas, sale of LPG (liquefied petroleum gas) and natural gas liquids and the generation, transmission and sale of electricity from a 169-megawatt power plant. Through separate transactions with affiliates of El Paso Corporation and PPL Corporation, DEI acquired an aggregate of an additional 27.1 percent interest in Aguaytia for a combined purchase price of approximately $31 million. The other partners in the project are Maple Gas and Conduit Capital Partners.

“Aguaytia is one of the most successful integrated energy projects in Latin America,” said Richard K. McGee, president of DEI. “Through these two transactions, we have solidified a majority interest in a strong project in a growing and important market.” 

Duke Energy International owns and operates power generation facilities, and engages in the sale and marketing of electric power and natural gas.  Its primary focus is on power generation activities in Latin America. In addition to Aguaytia, DEI owns a portfolio of hydro and thermal plants located in northwestern Peru with an installed capacity of 533 megawatts.

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 that could cause actual results to differ materially from those in the forward-looking statements herein include legislative and regulatory developments; general economic conditions, including any potential effects arising from terrorist attacks, the situation in Iraq and any consequential hostilities or other hostilities; the level of creditworthiness of counterparties to Duke Energy’s transactions; the  timing and extent of changes in commodity prices for oil, natural gas, coal, electricity and interest rates; the timing and success of efforts to develop domestic and international power, pipeline, gathering, processing and other infrastructure projects; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and other factors discussed in Duke Energy's 2005 Form 10-K and other filings with the Securities and Exchange Commission.

Contact: Kate Perez
Phone: Office: 713/627-6527; Cell: 713/822-8418
24-Hour Phone: 704/382-8333
e-mail: kcperez@duke-energy.com