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Duke Energy Selects Route for Rail Spur to Serve New Coal Gasification Power Plant May 6, 2009

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PLAINFIELD, IND. -

Duke Energy has selected a rail spur route to serve its new Knox County power plant.

The company is building a technologically advanced coal gasification plant to replace its 1940s-vintage Edwardsport power plant near Vincennes. The rail spur will be about eight miles long. It will stretch from the new plant to a connection point with the Indiana Southern Railroad just south of Sandborn.

After evaluating several choices, the company selected a route that will generally run along the former railroad line that once served the current Edwardsport Station. The rail spur will extend north through Westphalia and on to Sandborn.

“After carefully evaluating several possible routes and input from public workshops, we believe this route is the best overall choice for the community, the environment and the project,” said Jack Stultz, who will manage the new plant. “We know that some residents may have concerns over this choice, and we will do our best to address their issues.”

Although Duke Energy acquired the former railroad line last November, the company will need to purchase additional land rights from property owners along the rail spur route. Over the next several weeks, Duke Energy will be contacting those affected.

Construction of the rail spur is expected to begin in 2010. The goal is to have it available for use when the new plant begins operating in 2012. The rail spur will allow Duke Energy to move sulfur byproducts from the new plant to resale markets. Proceeds from the sale of these byproducts can help offset the operating costs of the new plant for customers.

The rail spur also will give the company a transportation alternative for delivering coal to the plant. While no decision has been made on whether to transport coal by train or truck to the plant, having a transportation option could help reduce operating costs for customers as well as truck traffic.

Duke Energy Indiana’s operations provide 6,500 megawatts of electricity capacity to approximately 775,000 customers, making it the state’s largest electric supplier.

Duke Energy is the third largest electric power holding company in the United States, based on kilowatt-hour sales. Its regulated utility operations serve approximately 4 million customers located in five states – North Carolina, South Carolina, Indiana, Ohio and Kentucky -- representing a population of approximately 11 million people. Duke Energy’s commercial power and international business segments operate diverse power generation assets in North America and Latin America, including a growing portfolio of renewable energy assets in the United States.

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: Angeline Protogere
Phone: 317-838-1338
24-Hour Phone: 800-559-3853 (DUKE)
e-mail:

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