On December 8, 1997, Duke Energy Capital Trust I (the Trust), issued $350 million of its 7.2% trust preferred securities, at an $11 million discount, representing preferred undivided beneficial interests in the assets of the Trust. Payment of distributions on such preferred securities is guaranteed by the Corporation, but only to the extent the Trust has funds legally and immediately available to make such distributions. The Trust is a statutory business trust, of which the Corporation owns all the common securities, established for the purpose of issuing and selling such preferred securities and investing the gross proceeds in the 7.2% Series A Junior Subordinated Notes of the Corporation due September 30, 2037.