In compliance with FERC Order 2000, SCANA, CP&L Energy andDuke Energy have discussed the formation of an independent regionaltransmission organization (RTO). The three companies would empowerthe proposed RTO to be known as GridSouth, with the responsibilityof planning and operating their transmission systems.

GridSouth will initially assume a range of operational andplanning responsibilities to ensure equal and non-discriminatoryaccess to the grid. During the initial stages, CP&L, Duke andSCANA will retain ownership of their existing transmissioninfrastructures.

“The intent of our three companies is to move the RTO towards abroad, regional independent transmission company that spans theSoutheast,” stated Duke Energy Chairman Richard B. Priory. “This isan important first step towards a system that is more responsive tocustomers’ needs and at the same time creates value forshareholders.”

Presentations of the initial proposal to public stakeholders arescheduled to take place during regional public meetings in Augustand September. At least four meetings will be held to explain theRTO’s plans and solicit comments from public stakeholders. Thefirst meeting will discuss a general overview of the plannedGridSouth RTO and will be held in Charlotte, NC, on Aug. 2. Threemore meetings that will deal with specific issues are planned forCharlotte and Raleigh, NC, and Columbia, SC.

“In complying with FERC Order 2000, we will work to ensure thatour customers continue to receive the reliable, low-costelectricity service that they have come to expect,” said ScanaChairman William B. Timmerman.

Upon completion of the meetings, the RTO proposal will be filedwith the Federal Energy Regulatory Commission not later than Oct.16. This would go along with FERC’s plan to have all utilities inRTOs by Dec. 15, 2001. As of Aug. 2, time schedules of meetings andinformation about the proposed RTO can be found on the web athttps://www.gridsouth.com.

“Taking a regional approach to transmission is both efficientand ultimately beneficial to all of our customers,” said WilliamCavanaugh, CP&L’s chairman. “Planning for and operatingtransmission on a regional basis should make our alreadycompetitive wholesale electricity markets even more robust.”

Combined, the three utilities own and operate more than 22,000miles of transmission line and about 34,500 MW of electricitygeneration.

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