Duke Confirms Plans to Construct Nuclear Reactors

LCG, October 27, 2005--Duke Power yesterday announced that it is preparing a combined construction and operating license (COL) application to construct two nuclear reactors. Duke Power, a business unit of Duke Energy, plans to submit the COL application to the U.S. Nuclear Regulatory Commission (NRC) within the next 24-30 months.

In May 2005, Duke Power filed plans with the North Carolina Utilities Commission regarding the potential addition of 2,200 MW of generating capacity adjacent to three existing power plants, with total costs of more than $2.3 billion. As an alternative to adding a new coal-fired plant at its Cliffside Steam Station, Duke identified the option of pursuing a new nuclear power plant.

Duke plans to use Westinghouse Electric Co.'s Advanced Passive 1000 (AP1000) reactors, which are each able to generate 1,100 MW of electricity. The AP1000 design incorporates passive safety features that rely upon natural forces, such as gravity, in order to reduce reliance on active, mechanical systems, like pumps and valves. According to Westinghouse Electric, the AP1000 is scheduled to receive Design Certification in December 2005.

Duke already uses Westinghouse Electric's pressurized water reactor technology, upon which the AP1000 is based, at the Duke Power-operated McGuire and Catawba nuclear stations near Charlotte, North Carolina. The site for the two new reactors will be identified after the completion of its current site selection study, which includes 14 potential sites in the Carolinas.

Duke is a participant in NuStart Energy Development, LLC, a consortium founded in 2004 to support the development of new nuclear power stations. Other participants include Exelon, Entergy, Southern Company, Constellation, Progress Energy, the Tennessee Valley Authority, Florida Power & Light, EDF International, and the two reactor vendors, GE and Westinghouse Electric.