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Duke Energy and Alinda Capital Partners Complete DukeNet Communications Joint Venture Dec. 21, 2010

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CHARLOTTE, NC -

Duke Energy Corp. and investment funds managed by Alinda Capital Partners LLC (collectively, “Alinda”) have completed the formation of a joint venture to grow DukeNet Communications, LLC (“DukeNet”). DukeNet also announced the closing of a $150 million senior-secured credit facility.

Duke Energy and Alinda previously announced an agreement on June 25, 2010, to form the joint venture. Affiliates of Alinda acquired 50 percent of the ownership interests in DukeNet from an affiliate of Duke Energy in exchange for $137 million in cash plus certain purchase price adjustments. Duke Energy’s affiliate continues to own the remaining 50 percent of DukeNet.

The new $150 million credit facility has a five-year maturity and will provide DukeNet with capital for continued expansion of its telecommunications network, future acquisitions and general corporate purposes. The facility was arranged by RBC Capital Markets, Wells Fargo Securities and BNP Paribas, with participation by CoBank, The Bank of Nova Scotia, Regions Bank, First Tennessee Bank, ING Capital, SunLife Assurance Company of Canada, and Brown Brothers Harriman.

About DukeNet
Headquartered in Charlotte, N.C., DukeNet develops and manages fiber optic communications systems, primarily in the southeastern United States. DukeNet’s network controls more than 5,300 miles of fiber optic capacity and offers a range of solutions to meet wholesale and enterprise customers’ bandwidth needs. More information about DukeNet is available at www.dukenet.com.

About Alinda Capital Partners
Alinda Capital Partners LLC is an independent, American-owned firm that is the largest manager in the United States of pension assets for investment in infrastructure, with over $7 billion of assets under management. Alinda’s investors are predominantly pension funds for public and private sector workers, and include some of the largest institutional investors in the world. Infrastructure companies in which Alinda has ownership interests operate in more than 300 cities in the United States, as well as in Canada, the United Kingdom and the Netherlands. These businesses serve over 125 million customers annually and employ approximately 15,000 people. For more information, visit www.alinda.com.

About Duke Energy
Duke Energy is one of the largest electric power holding companies in the United States. Its regulated utility operations serve approximately 4 million customers located in five states in the Southeast and Midwest, representing a population of approximately 11 million people. Its commercial power and international business segments own and operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

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: Duke Energy - Greg Efthimiou
Phone: 704-382-1925
24-Hour Phone: 800-559-3853
e-mail:
Contact: Alinda Capital-Antonia Schwartz
Phone: 212-838-6496
24-Hour Phone: 646-404-3385
e-mail:

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