Duke Energy Carolinas Breaks Ground on $425 Million Allen Steam Station Emissions ''Scrubber'' - Duke Energy

News Release
Sept. 21, 2006

Duke Energy Carolinas Breaks Ground on $425 Million Allen Steam Station Emissions ''Scrubber''

CHARLOTTE, N.C. – Duke Energy Carolinas has broken ground on a project that will reduce sulfur dioxide emissions by approximately 95 percent at Allen Steam Station, a 1,140-megawatt power plant located on the shores of Lake Wylie in Belmont.

"This project demonstrates our commitment toward improving air quality in North Carolina, helped by the ingenuity and hard work of companies such as Duke Energy," said Bill Ross, secretary of the North Carolina Department of Environment and Natural Resources. "North Carolina's landmark Clean Smokestacks Act calls for substantial emissions reductions at coal-fired power plants across the state, and Duke Energy has responded to that challenge. As a result, our citizens will breathe cleaner air and enjoy a better quality of life."

The project is expected to cost approximately $425 million and is the third of four power plants Duke Energy is installing sulfur dioxide scrubbers on in North Carolina. The projects stem from the passage of the state's 2002 "Clean Smokestacks" legislation.

"We are eager to move ahead with this scrubber project, which will substantially reduce Allen Steam Station's emissions," said Bill Mc Collum, Duke Energy's group vice president for regulated generation. "The project builds on other emissions work across our fleet and will ensure the Allen plant continues to provide our customers with competitively priced power for decades to come. 

"We expect to complete the initial phase of our first scrubber project at Marshall Steam Station in Catawba County this November, and we have completed 35 percent of our scrubber project at our Belews Creek Steam Station in Stokes County," Mc Collum added.

Duke Energy will complete its Marshall, Belews Creek, Allen and Cliffside steam station scrubber projects by the end of 2010 – three years before the 2013 schedule outlined in the Clean Smokestacks legislation. When all four scrubber projects are complete, approximately 90 percent of Duke Energy's coal production in the Carolinas will have sulfur dioxide emission scrubbers installed.  

These investments are in addition to the company's work to comply with the federal Clean Air Act that has dramatically reduced nitrogen oxide emissions. In addition, all of Duke Energy Carolinas' smaller coal plants are installing or have recently installed advanced technology to reduce nitrogen oxide emissions. 

The scrubber removes sulfur dioxide by injecting a mixture of limestone and water into the emissions stream. The Allen Steam Station project is expected to be completed in 2009. 

Duke Energy's coal-fired power plants have been ranked among the nation's most efficient for more than 30 years, which reduces fuel costs and lowers overall emissions.

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, including 28,000 megawatts of regulated generating capacity in the United States. Duke Energy's Carolinas operations include a diverse mix of nuclear, coal-fired, natural gas and hydroelectric generation that provides 19,900 megawatts of safe, reliable and competitively priced electricity to more than 2.2 million electric customers in a 22,000 square mile service area of North Carolina and South Carolina. 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: www.duke-energy.com.

Contact: Thomas C. Williams
Phone: 980-373-4743
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