Duke Energy Completes Sale of Commercial Marketing and Trading Business to Fortis - Duke Energy

News Release
Oct. 2, 2006

Duke Energy Completes Sale of Commercial Marketing and Trading Business to Fortis

CHARLOTTE, N.C. – Duke Energy today announced it has completed the sale of its commercial marketing and trading business to Fortis, the Benelux-based financial services group. On an after-tax basis, Duke Energy anticipates total cash proceeds of approximately US$475 million. The company does not expect to record a material gain on the sale. 

Under the agreement, Fortis purchased Cinergy Marketing and Trading, LP, and Cinergy Canada, Inc. at a base purchase price of approximately US$210 million.  In addition, Fortis paid approximately US$200 million for the portfolio of contracts, and an amount equal to the estimated net working capital associated with these companies at the time of close.

"We are pleased to see these quality assets find a home with a top flight firm such as Fortis,” said James E. Rogers, president and chief executive officer. “This exit from the commercial marketing and trading business is aligned with our company’s sharpened focus on growing core businesses that can be expected to contribute steady, stable earnings and dividend growth."

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

Forward-Looking Statements

This document includes statements that do not directly or exclusively relate to historical facts. Such statements may be considered "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. You can typically identify forward-looking statements by the use of forward-looking words, such as “may,” “will,” “could,” “project,” “believe,” “anticipate,” “expect,” “estimate,” “continue,” “potential,” “plan,” “forecast” and other similar words. The forward-looking statements reflect management’s intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from the forward-looking statements included in this document. These risks and uncertainties include, among other things, state, federal and foreign legislative and regulatory initiatives that affect cost and investment recovery, have an impact on rate structures, and affect the speed at and degree to which competition enters the electric and natural gas industries; the outcomes of litigation and regulatory investigations, proceedings or inquiries; the weather and other natural phenomena; the timing and extent of changes in commodity prices, interest rates and foreign currency exchange rates; general economic conditions, including any potential effects arising from terrorist attacks and any consequential hostilities or other hostilities; changes in environmental and other laws and regulations to which Duke Energy and its subsidiaries are subject or other external factors over which Duke Energy has no control; the effect of accounting pronouncements issued periodically by accounting standard-setting bodies; the amount of collateral required to be posted from time to time in Duke Energy’s transactions; competition and regulatory limitations affecting the success of Duke Energy’s divestiture plans, including the prices at which Duke Energy is able to sell its assets; the performance of electric generation, pipeline and natural gas processing facilities; the extent of success in connecting natural gas supplies to gathering and processing systems and in connecting and expanding natural gas and electric markets; conditions of the capital markets and equity markets during the periods covered by the forward-looking statements; and opportunities for Duke Energy’s business units, including the timing and success of efforts to develop domestic and international power, pipeline, gathering, liquefied natural gas, processing and other infrastructure projects. Additional factors that may affect the future results of Duke Energy are set forth in the Duke Power Company LLC and Cinergy Corp. filings with the Securities and Exchange Commission ("SEC"), which are available at www.duke-energy.com/investors/. Duke Energy undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact: Peter Sheffield
Phone: 980-373-4503
24-Hour Phone: 704-382-8333