Duke Power selects Cherokee County, S.C., site for new plant

CHARLOTTE, N.C., Aug. 9, 2001 — Duke Power has selected a site in Cherokee County, S.C., for its newest energy facility, a 640-megawatt, natural gas-fired power plant, company officials said today.

State officials expressed support for the plant’s role in the region’s economic growth.

“As this region grows, community and business leaders must reach out beyond their boundaries to achieve the next level of growth for their area,” Governor Jim Hodges said. “We are pleased that Cherokee County took the steps needed to make this a reality.”

“Duke Power brings more than a $300 million project to Cherokee County,” Secretary of Commerce Charles S. Way Jr. said. “Duke Power brings increased opportunities for new jobs and a better way of life for people who live and work in the region.”

The new plant will be located off Elm Road near Blacksburg, S.C. Duke Power expects to begin construction in January 2002 and plans to have the Mill Creek Station operational in summer 2003.

“The Mill Creek power plant will be a tremendous asset as we continue providing reliable, competitively priced electricity to our two million customers in North Carolina and South Carolina,” said Duke Power President Bill Coley. “Over the last five years we’ve added almost 300,000 new customers,” he said. “We have an adequate supply of electricity today, but we see the need for new peaking generation to support the region’s economic growth.”

Coley added that the cooperative spirit and progressive thinking of Blacksburg’s mayor and city leaders and Cherokee County officials were instrumental in the company’s decision. “We appreciate all their support and look forward to a continued role in the community,” he said.

The eight-unit, combustion turbine plant is designed to operate as a “peaking” plant, providing electricity primarily during the periods when customers’ use of electricity is at its greatest — the hottest parts of summer days and the coldest parts of winter days.

Duke Energy business unit Duke/Fluor Daniel (D/FD) will design and construct the plant. So far in 2001, D/FD has been awarded contracts for more than 10,000 megawatts from generating companies in North America.

Coley said that the company will hold a site in Rowan County, N.C., for future use. That site had also been under consideration for this energy facility.

Duke Power, a business unit of Duke Energy (NYSE: DUK – news), is one of the nation’s largest electric utilities and provides safe, reliable, competitively priced electricity to approximately two million customers in North Carolina and South Carolina. Duke Power operates three nuclear generating stations, eight coal-fired stations, 31 hydroelectric stations and numerous combustion turbine units. Total system generating capability is 19,375 megawatts. More information about Duke Power is available on the Internet at: www.dukepower.com.

Duke Energy, a diversified multinational energy company, creates value for customers and shareholders through an integrated network of energy assets and expertise. Duke Energy manages a dynamic portfolio of natural gas and electric supply, delivery and trading businesses — generating revenues of more than $49 billion in 2000. Duke Energy, headquartered in Charlotte, N.C., is a Fortune 100 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.