Aiming to be “as strong a company in Latin America as it is inNorth America,” Duke Energy International agreed to exchange $405million for Dominion Resources’ portfolio of hydroelectric, naturalgas and diesel power generation businesses – totaling 1,200 MWgross capacity – in Argentina, Belize, Bolivia and Peru. In thelast week Duke Energy International has pledged to purchase 3,800MW of generation capacity in Latin America in three separatetransactions for about $1.285 billion.

The transaction is expected to be completed before the end ofthe year.

“This purchase, along with our recent successes in Brazil and ElSalvador, positions Duke Energy International to become LatinAmerica’s first truly regional power generation and energy tradingand marketing company,” said Duke Energy International PresidentBruce A. Williamson.

In Argentina Duke will be picking up Dominion’s 54% interest inthe 98 MW natural gas-fired Alto Valle power station and 98% of the450 MW Cerros Colorados hydroelectric station. In Bolivia thetransaction involves 50% controlling interest in the 126 MW EmpresaElectrica Corani hydroelectric business.

In Peru Dominion is selling a 30% joint controlling ownershipinterest in Empresa de Generacion Electrica NorPeru S.A. withcurrent capacity of 423 MW, principally hydroelectric power, withsome thermal generation capacity. The business is scheduled tohave 520 MW of capacity when an expansion program is completedlater this year. And in Belize Duke will have 95% interest in the25 MW Mollejon hydroelectric facility.

Previously Duke won out in the July 30 privatization of ElSalvadorian generating companies with a bid of $125 million forcontrolling interest in 275 MW of thermal power generation. It willassume operational control of Generadora Acajutla SA de CV andGeneradora Salvadorena SA de CV, presently part of the utilityComision Ejecutiva Hidroelectrica del Rio Lempa.

Duke also said it will spend $75 million on modernization ofGeneradora Acajutla which will add about 155 MW of combined-cycleelectric generation. In announcing the investment Duke pointed outEl Salvador is the second largest economy in Central America and isone of the most stable countries in Latin America politically andeconomically.

In Brazil two days earlier Duke beat out one other bid at theprivatization auction of Sao Paulo state’s electric generationcompany, Paranapanema, at $680 million, paying a whopping 90% overthe base offering price.

With its latest prospective purchases, Duke’s portfolio of LatinAmerican assets will include operations and ownership interests inabout 5,900 MW of power generation, 125 miles of natural gaspipeline and 245 miles of electric transmission located throughoutArgentina, Brazil, El Salvador, Chile, Ecuador and Peru.

Duke Energy International a subsidiary of Charlotte, NC-basedDuke Energy, is a leading owner, operator and developer ofintegrated energy projects in Asia Pacific – primarily Australia -and Latin America. Its asset portfolio spans the energy value chainfrom exploration, production, gathering, processing andtransportation of natural gas through to generation, electrictransmission and energy trading and marketing.

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