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Media Advisory: Drought Worsens and Lake Levels Drop Aug. 3, 2007

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CHARLOTTE, NC -

With only two-thirds of normal rainfall recorded for this time of year, boaters and other recreational users are encouraged to use caution and examine their surroundings for potential hazards when on Catawba-area lakes and waterways. Duke Energy is also urging everyone to conserve water.

Persistent drought conditions across the region are causing lake levels to decline in the Catawba-Wateree River basin. While some areas have received isolated showers, substantial widespread rainfall is needed for the entire basin. Unfortunately, weather forecasts for the next two weeks indicate only scattered thunderstorms or showers. Without significant rainfall in the near term, lake levels will continue to drop.

Duke Energy, along with more than 70 major water users who signed the Catawba-Wateree Comprehensive Relicensing Agreement, is taking voluntary steps to help conserve water. The company has significantly reduced hydroelectric generation for the past several months and will continue this strategy in order to help manage the system during this drought.

Water conservation is everyone’s responsibility and conserving water is particularly important during times of drought. Simple steps such as reducing lawn watering, postponing washing vehicles and turning the water off while brushing teeth can help make a difference.

Two boat ramps closed this week as a result of the drought on Lake Wylie at the Copperhead boat access area in Mecklenburg County, N.C. As dry conditions continue, assessments of other boat ramps are underway and more closings may occur.

Visit http://www.duke-energy.com for current lake level information and water conservation tips.

Duke Energy's Carolinas’ operations include nuclear, coal-fired, natural gas and hydroelectric generation. That diverse fuel mix provides nearly 21,000 megawatts of safe, reliable and competitively priced electricity to more than 2.3 million electric customers in a 24,000-square-mile service area of North Carolina and South Carolina.

Duke Energy, one of the largest electric power companies in the United States, supplies and delivers energy to approximately 4 million U.S. customers. The company has nearly 37,000 megawatts of electric generating capacity in the Midwest and the Carolinas, and natural gas distribution services in Ohio and Kentucky. In addition, Duke Energy has more than 4,000 megawatts of electric generation in Latin America, and is a joint-venture partner in a U.S. real estate company.

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: Marilyn Lineberger
Phone: 704-382-6848
24-Hour Phone: 704-382-8333
e-mail:

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