Dynegy is moving forward with final permitting and constructionof its 800 MW generating facility in Rockingham County, NC.Construction will begin upon receipt of final environmental permitsand the plant will be in service in June of 2000.

“This project exemplifies Dynegy’s strategy to develop a diverseportfolio of generation assets to combine with our establishedenergy marketing and trading capabilities,” said CEO Chuck Watson.”This project will increase our generation portfolio to more than5,000 MW capacity and we will announce additional new projects likeRockingham in the near future.”

Duke Energy’s electric utility unit, Duke Power, signed anintegrated power purchase agreement Sept. 30 with the Dynegyproject affiliate Rockingham Power LLC to purchase 600 MW ofcapacity and energy from the facility. The agreement is for threeand a half years beginning July 1, 2000. Additional terms provideDuke Power with the option to extend its purchases for up to fiveyears, and allow Dynegy to make wholesale power sales to othercompanies when Duke Power is not using its capacity. The balance ofthe power from Rockingham will be utilized in Dynegy’s powermarketing business.

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