Duke Energy Gas Spin-Off To Be Named ''Spectra Energy'' - Duke Energy

News Release
Oct. 30, 2006

Duke Energy Gas Spin-Off To Be Named ''Spectra Energy''

HOUSTON – Duke Energy’s existing natural gas business will be called Spectra Energy Corp when the operations become a stand-alone, publicly traded company, targeted for Jan. 1, 2007.

Once the separation is complete, Spectra Energy will consist of the business unit now known as Duke Energy Gas Transmission and Duke Energy’s 50 percent ownership interest in Duke Energy Field Services, which recently announced its new name - DCP Midstream.

The Spectra Energy name replaces Gas SpinCo, Inc. (GasCo), the temporary name given to the natural gas business.

Spectra Energy will operate primarily in three sectors of the natural gas industry: transmission and storage, distribution, and gathering and processing. The stock is expected to be traded on the New York Stock Exchange under the listing symbol SE. 

"Spectra Energy will be well-positioned to pursue significant growth opportunities and respond to the evolving needs of our customers, while providing value for our shareholders," said Fred Fowler, who currently serves as president of Duke Energy Gas and will become chief executive officer of Spectra Energy Corp. "Our reputation for providing safe, reliable, cost-effective and environmentally responsible natural gas services will serve us well in a market that is primed for infrastructure expansion."

"Spectra – plural of the word spectrum – reflects the broad range of our businesses, assets and strategic market presence," Fowler said.

Spectra Energy LogoThe logo that accompanies the Spectra Energy name was designed to signify momentum and growth. The two aligned arcs also represent Spectra Energy’s leading market position in both the United States and Canada.  

"We are excited about the new company and our new name," said Fowler. "We have a strong and experienced leadership team in place, and strategic assets that will help us become one of the premier North American natural gas companies dedicated to continuing to deliver solid, sustainable results."

Duke Capital will be renamed Spectra Energy Capital and the Duke Energy Income Fund will be renamed Spectra Energy Income Fund.

Background

Duke Energy proposed separating its natural gas business from the company’s electric business when the merger with Cinergy was announced in May 2005. In June, Duke Energy’s board of directors unanimously authorized management to pursue a plan to spin off Duke Energy’s natural gas businesses to Duke Energy shareholders. Once the transaction is completed, Duke Energy’s shareholders will own 100 percent of the equity in both Duke Energy and Spectra Energy.

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For more than three quarters of a century DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connects natural gas supply sources to premium markets. Based in Houston, Texas, the company's assets include about 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in the U.S. 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.

Headquartered in Denver, Duke Energy Field Services (DEFS) is a midstream energy company that gathers, treats, compresses, processes, transports, markets, and stores natural gas and produces, fractionates, transports, trades, and markets natural gas liquids (NGLs). The company is one of the nation's largest natural gas gatherers, the largest NGL producer, and one of the largest NGL marketers. DEFS was formed through the combination of Duke Energy and ConocoPhillips’ natural gas gathering and processing businesses. More information can be found at http://www.defieldservices.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.

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. Duke Energy cannot provide any assurances that the separation or any of the proposed transactions related thereto will be completed, nor can it give assurances as to the terms on which such transactions will be consummated. The transaction is subject to certain conditions precedent, including final approval by the Board of Directors of Duke Energy.

These risks and uncertainties include, among other things, risks inherent in the contemplated separation and related transactions and borrowings and costs related to the proposed transactions; distraction of Duke Energy and its management as a result of the proposed transactions; 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 are set forth in the Duke Energy, 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: Gretchen Krueger
Phone: 713-627-4072
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