Fourth Quarter
 

Maritimes & Northeast Pipeline continued to receive regulatory approvals, keeping the project on track. The project has received all Canadian regulatory approvals. In the U.S., the FERC authorized construction of a 66-mile section of the pipeline and issued preliminary approval for the remainder of the facilities. Maritimes & Northeast is scheduled to begin transporting gas in 1999 from Sable Island reserves, off Nova Scotia, to markets in the Canadian Maritimes and the northeast U.S.

 
Conservationists applauded. Duke Energy and Crescent Resources announced a sale and one-time gift of 32,000 acres to the State of South Carolina, culminating what has been called one of the nation’s most significant conservation efforts. The spectacular section of the Blue Ridge Escarpment provides some of the most dramatic scenery and ecologically significant lands in the region.
 

Duke Power completed its final planned steam generator replacement project on Dec. 18. The nuclear generation department returned McGuire unit 2 to service after a world record outage of only 77 days. The outage team replaced the unit’s four massive steam generators, installed a state-of-the-art computer to aid plant operators, and performed extensive turbine and maintenance work. Earlier in 1997 the team replaced the Unit 1 steam generators in 94 days, $18 million under budget.

 
Power Services and United American Energy Corp. purchased 50 percent ownership interest in American Ref-Fuel Company. The $237 million purchase strengthens Duke’s power generation portfolio and merchant power strategy in the Northeast. American Ref-Fuel is the top-ranked waste-to-energy firm in New York and New Jersey, and third largest in the U.S.
 
Texas Eastern Transmission Corporation begins new service for Columbia Gas Transmission and CNG Transmission. Completed facilities and new long-term capacity leases have combined to provide the two companies new capacity in Pennsylvania as the most cost effective way for them to meet incremental needs of their natural gas customers.
 
Power Services announced its winning bid to purchase three power plants from PG&E Corporation for $501 million. Totaling 2,645 MW, the output from Morro Bay, Moss Landing and Oakland power plants can be coupled with Trading and Marketing’s skills to serve California’s newly competitive markets.
 
Duke Power customers and foundation ‘shared the warmth.’ More than 40,000 Duke Power customers contributed to the Share the Warmth program, which provides heating assistance through local social service agencies and organizations. The Duke Energy Foundation matches individual gifts, up to $50, up to a total of $500,000. For 1997, the Foundation and Duke customers combined to give $1.2 million.
 
U.S. Department of Energy awarded five-year, $2 billion contract to consortium that includes DE&S. Along with the Battelle Memorial Research Institute and the Research Foundation of the State University of New York, DE&S will manage and operate Brookhaven National Laboratory.
 
DukeNet Communications continued to extend its reach. Carolinas FiberNet L.L.C., a fiber optic network of which DukeNet is a partner, extended the network to northern Virginia and interconnections with Washington, D.C. BellSouth Mobility DCS, in which DukeNet owns a 20 percent interest, ended the year with 121,000 subscribed customers.
 
Duke/Fluor Daniel moved forward on Texas and European projects. Duke/Fluor Daniel began turnkey engineering, procurement and construction for the 440-MW Oxychem/Ingleside Cogeneration Plant in Texas. Also, Duke/Fluor Daniel and Conoco Global Power moved forward in developing an alliance in the development, engineering, procurement and construction of cogeneration and central heating plants in Europe.
 
Nature Conservancy of Texas honored Duke Energy with its 1997 Conservation Leadership Award. The award recognized a range of work, including educational activities, volunteer involvement and the company’s environmental standards.
 
DE&S completed its purchase of Yankee Atomic Electric Company’s Nuclear Services Division. The expansion will complement DE&S’ strong capabilities in decontamination, decommissioning and fuel management.
 
Mobile Bay Processing Partners announced a 300,000 Dth/d expansion of its Mobile Bay processing plant, under construction in Alabama. The expansion results from agreements with Coastal Oil & Gas Corporation and CNG Producing Company, which committed production from several blocks in the Gulf of Mexico.
 
Consortium purchased Irian Jaya generating plant. A consortium led by Duke Energy International purchased the three-unit 195-MW generating facilities being constructed by Duke/Fluor Daniel International in Indonesia to serve PT Freeport Indonesia Company’s mining and milling operations. Duke Energy International owns 42.86 percent of PT Puncakjaya Power, the Indonesian company established by the consortium to own and operate the power generating facilities.
 
Duke Power’s Bulk Power Marketing Group completed first full year of sales. FERC granted authority in 1996 for Duke to market up to 2,500 MW of its temporarily surplus capacity and associated energy at market rates in the wholesale bulk power market. In 1997 the group sold 1.9 million MWh, and has sold a total of 3 million MWh since April 1996.
 
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