Duke Energy's Edwardsport and Cliffside Advanced Coal Projects Awarded $258.5 Million in Federal Tax Credits - Duke Energy

News Release
Nov. 30, 2006

Duke Energy's Edwardsport and Cliffside Advanced Coal Projects Awarded $258.5 Million in Federal Tax Credits

CHARLOTTE, N.C., - The U.S. Department of Energy announced today that Duke Energy's proposed state-of-the-art Edwardsport Integrated Gasification Combined Cycle (IGCC) and Cliffside pulverized coal plant projects were awarded $133.5 million and $125 million in federal "clean coal" tax credits respectively. The award represents the maximum amount of federal tax credits available to individual projects in each technology category under the 2005 Energy Policy Act. The total amount of tax credits announced today is $1 billion for nine clean coal projects.

"We are gratified the federal government has validated what has been our objective for our Edwardsport and Cliffside projects from the beginning – to advance environmentally sound coal technology and put it to work on behalf of our customers," said Duke Energy President and CEO James E. Rogers. "Receiving these credits represents major milestones for these projects, and we are eager to continue to move them forward in the regulatory review process."

Both projects would be built on Duke Energy power plant sites and include the retirement of existing coal units. The 630-megawatt Edwardsport IGCC project is located in Edwardsport, Ind., and is currently being reviewed by the Indiana Utility Regulatory Commission. The 1,600-megawatt Cliffside project is located in Cliffside, N.C., and is currently being reviewed by the North Carolina Utilities Commission.  For more information about each project, see Duke-Energy.com/newgeneration and look under New Coal Generation.

The 2005 Energy Policy Act initiated a wide range of action, including the authorization of tax credits and incentives. Those authorizations included $1.65 billion in tax credits to spur investments in advanced clean coal power plants.  

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.

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