Duke Energy is an integrated energy and energy services provider with the ability to offer physical delivery and management of both electricity and natural gas throughout the United States and abroad. Duke Energy provides these and other services through seven business segments:

• Electric Operations
• Natural Gas Transmission
• Field Services
• Trading and Marketing
• Global Asset Development
• Other Energy Services
• Real Estate Operations

These segments were defined as a result of Duke Energy adopting SFAS No. 131, "Disclosures about Segments of an Enterprise and Related Information."

Electric Operations generates, transmits, distributes and sells electric energy in central and western North Carolina and the western portion of South Carolina (doing business as Duke Power or Nantahala Power and Light). These electric operations are subject to the rules and regulations of the FERC, the North Carolina Utilities Commission (NCUC) and the Public Service Commission of South Carolina (PSCSC).

Natural Gas Transmission, through its Northeast Pipelines, provides interstate transportation and storage of natural gas for customers primarily in the Mid-Atlantic and New England states. Until the expected sale of the Midwest Pipelines in early 1999, Natural Gas Transmission also provides interstate transportation and storage services in the midwest states. See further discussion of the proposed sale of the Midwest Pipelines in Note 14 to the Consolidated Financial Statements. The interstate natural gas transmission and storage operations are also subject to the rules and regulations of the FERC.

Field Services gathers, processes, transports and markets natural gas and produces and markets NGLs. Field Services operates gathering systems in ten states that serve major gas-producing regions in the Rocky Mountain, Permian Basin, Mid-Continent and Gulf Coast areas.

Trading and Marketing markets natural gas, electricity and other energy-related products across North America. Duke Energy owns a 60% interest in Trading and Marketing's operations, with Mobil Corporation owning a 40% minority interest.

Global Asset Development develops, owns and operates energy-related facilities worldwide. Global Asset Development conducts its operations primarily through Duke Energy Power Services, LLC (Duke Energy Power Services) and Duke Energy International, LLC (Duke Energy International).

Other Energy Services provides engineering, consulting, construction and integrated energy solutions worldwide, primarily through Duke Engineering & Services, Inc., Duke/Fluor Daniel and DukeSolutions, Inc.

Real Estate Operations conducts its business through Crescent Resources, Inc., which develops high quality commercial and residential real estate projects and manages forest holdings in the southeastern United States.

Business Segment Data
(In millions)	Unaffiliated Revenues			Intersegment Revenues			Total Revenues			EBIT			Depreciation and Amortization			Capital and Investment Expenditures			Segment Assets
Year Ended December 31, 1998
Electric Operations	$	4,626		$	--		$	4,626		$	1,513		$	522		$	586		$	13,073
Natural Gas Transmission		1,426			102			1,528			702			215			290			4,996
Field Services		2,094			545			2,639			76			80			304			1,893
Trading and Marketing		8,614			171			8,785			122			11			8			3,233
Global Asset Development		237			82			319			80			31			1,027			2,061
Other Energy Services		436			85			521			10			12			41			376
Real Estate Operations		181			--			181			142			6			217			724
Other Operations		(4	)		26			22			2			32			27			848
Eliminations		--			(1,011	)		(1,011	)		--			--			--			(398	)
Total Consolidated	$	17,610		$	--		$	17,610		$	2,647		$	909		$	2,500		$	26,806
Year Ended December 31, 1997
Electric Operations	$	4,401		$	--		$	4,401		$	1,282		$	498		$	743		$	12,958
Natural Gas Transmission		1,468			104			1,572			624			229			247			5,059
Field Services		2,481			574			3,055			157			71			157			1,855
Trading and Marketing		7,411			78			7,489			44			7			18			1,857
Global Asset Development		109			14			123			5			9			348			988
Other Energy Services		343			33			376			18			6			47			223
Real Estate Operations		124			--			124			98			4			223			594
Other Operations		(28	)		--			(28	)		(120	)		17			245			941
Eliminations		--			(803	)		(803	)		--			--			--			(446	)
Total Consolidated	$	16,309		$	--		$	16,309		$	2,108		$	841		$	2,028		$	24,029
Year Ended December 31, 1996
Electric Operations	$	4,498		$	--		$	4,498		$	1,419		$	481		$	610		$	12,625
Natural Gas Transmission		1,470			86			1,556			595			228			194			5,186
Field Services		2,216			421			2,637			152			59			531			1,709
Trading and Marketing		3,773			41			3,814			58			4			7			1,404
Global Asset Development		65			7			72			--			7			35			522
Other Energy Services		183			21			204			20			3			39			130
Real Estate Operations		114			--			114			88			4			115			446
Other Operations		(17	)		--			(17	)		(38	)		3			19			727
Eliminations		--			(576	)		(576	)		--			--			--			(383	)
Total Consolidated	$	12,302		$	--		$	12,302		$	2,294		$	789		$	1,550		$	22,366

Duke Energy's reportable segments are strategic business units that offer different products and services and are each managed separately. Management evaluates segment performance based on earnings before interest and taxes (EBIT). Segment earnings before interest and taxes, presented in the accompanying table, includes intersegment sales accounted for at prices representative of unaffiliated party transactions. Segment assets are provided as additional information in the accompanying table and are net of intercompany advances, intercompany notes receivable and investments in subsidiaries.

Other Operations primarily includes communication services, water services and certain unallocated corporate costs.