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Duke Power's Belews Creek and Marshall coal-fired power plants were ranked the two most efficient in the U.S. by Electric Light & Power magazine in 1998. Designed, built and operated by Duke Power, the plants produced more electricity per ton of coal than any other plants. Duke Power coupled efficiency and reliability with its generation system to deliver quality service to customers and earnings growth to shareholders.

Duke Energy's global power generation portfolio grew by 3,483 MW in 1998. Duke Energy Power Services (Power Services) completed the purchase of Morro Bay, Moss Landing and Oakland power plants in California. From July 1 to December 31, 1998, they generated 4,245,000 MWh of electricity under the Duke Energy banner. Duke Energy Trading and Marketing (Trading and Marketing) secured the plants' natural gas fuel supply and marketed their output. Power Services has proposed to modernize two of the plants to increase efficiency and output, reduce emissions and lower plant profiles along the scenic California coast.

Power Services has led the development of new power generation in the Northeast U.S. by bringing Bridgeport Energy Project's Phase I on line in Connecticut in time to meet 1998 summer load demand, while Duke/Fluor Daniel began construction of the 520 MW Maine Independence Station in Veazie, Maine, on their behalf. Many plants have been proposed for the region on the heels of newly available Canadian and U.S. natural gas, but Duke Energy's plants will be among the first of the new plants to serve the region.

Veazie, Maine, Town Manager Bill Reed and Maine Independence Project Director Rufus Kellam inspect construction progress. Said Reed: "The people of Veazie welcome this project and Duke Energy Power Services - not only for the economic impact of the project but for their commitment to our community and state."

Duke Power's Oconee Nuclear Station took a bold step to lead the industry for another generation when it became only the second nuclear plant in the U.S. to apply to the Nuclear Regulatory Commission for an operating license extension. Community support in the upstate region of South Carolina has been strong.

Duke Energy Power Services focused on both excellent plant operations and community relations with its newly acquired California assets. (upper left) Duke Energy people built partnerships with community leaders and environmental groups, including one which operates the state's largest marine mammal rescue center for such species as elephant seals.

Duke/Fluor Daniel is building this 440 MW combined cycle cogeneration plant for Occidental Chemical Corporation and Conoco Global Power. Located at Ingleside, Texas, it will become operational in 1999.