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Duke Building 3 Plants, Selling 1

Duke Building 3 Plants, Selling 1

Duke Energy North America (DENA) announced the start of construction of three new merchant generation projects totaling 1,500 MW. At full capacity, each plant will burn about 3,300 MMBtu/hour. In a fourth deal, DENA announced the sale of its remaining 78.5% interest in the 500 MW Hidalgo Energy Facility to an affiliate of Calpine Corp. for $235 million.

DENA's portfolio currently includes 4,400 MW in operation; nine sites under construction totaling 4,500 MW; and an additional 14,800 MW in advanced development, scheduled for commercial operation by summer 2003.

DENA is constructing three new 500 MW gas-fired, combined- cycle, generating plants to serve growing demand and reliability needs in the southeastern and south-central United States. Construction has begun on the McClain Energy Facility in Newcastle, OK; and the Hinds Energy Facility in Jackson, MS; and will soon begin at the Attala Energy Facility, located between McAdams and Kosciusko, MS.

All three plants will be operational by second quarter 2001. Duke Energy's Texas Eastern Transmission will transport fuel to the two plants in Mississippi. The Oklahoma plant will be served by Oklahoma Natural Gas.

The Hidalgo Energy Facility being sold to Calpine is a 500 MW gas-fired, combined-cycle generation plant in Edinburg, TX. DENA broke ground on the facility this quarter and expects commercial operation to begin by June. The Hidalgo purchase includes a cash payment of $134 million and the assumption of $101 million of debt, which represents the completed cost of the plant.

Calpine also is building a 730-MW natural gas-fired facility in Edinburg, to serve the South Texas market. The Magic Valley facility is expected to be on line in the summer of 2001.

Joe Fisher, Houston

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