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Notes to Consolidated Financial Statements for the
Years Ended December 31, 2001, 2000 and 1999

14. PREFERRED AND PREFERENCE STOCK

1.

Summary of Significant Accounting Policies
2.

Business Acquisitions and Dispositions
3.

Business Segments
4.

Regulatory Matters
5. Joint Ownership of Generating Facilities
6. Income Taxes
7. Derivative Instruments, Hedging Activities and Credit Risk
8. Investment in Affiliates and Related Party Transactions
9. Property, Plant and Equipment
10. Debt and Credit Facilities
11. Nuclear Decommissioning Costs
12. Guaranteed Preferred Beneficial Interests in Subordinated Notes of Duke Energy or Subsidiaries
13. Minority Interest Financing

14.

Preferred and Preference Stock
15. Commitments and Contingencies
16. Common Stock and Equity Offerings
17. Stock-Based Compensation
18. Employee Benefit Plans
19. Quarterly Financial Data (Unaudited)
20. Subsequent Event
AUTHORIZED SHARES OF STOCK AS OF DECEMBER 31, 2001 AND 2000
Par Value Shares
(In millions)
Preferred Stock $ 100 12 .5
Preferred Stock A $ 25 10 .0
Preference Stock $ 100 1 .5


As of December 31, 2001 and 2000, there were no shares of preference stock outstanding.

PREFERRED STOCK WITH SINKING FUND REQUIREMENTS
Dollars in millions
Year Issued

Shares Outstanding
at December 31, 2001

 December 31
Rate/Series 2001 2000
6.20% D (Preferred
    Stock A)		 1992 –   $ –     $ 20
6.30% U 1992 –     –     13
6.40% V 1992 130,000     13     13
6.75% X 1993 250,000     25     25
Total   $ 38     $ 71


The annual sinking fund requirements are $13 million for 2002 and $2 million each year for 2003 through 2006. Additional redemptions are permitted at Duke Energy’s option.

PREFERRED STOCK WITHOUT SINKING FUND REQUIREMENTS
Dollars in millions
Year Issued

Shares Outstanding
at December 31, 2001

 December 31
Rate/Series 2001 2000
4.50% C 1964 175,000   $ 18     $ 18
7.85% S 1992 300,000     30     30
7.00% W 1993 249,989     25     25
7.04% Y 1993 299,995     30     30
6.375% (Preferred
    Stock A)		 1993 1,257,185     31     31
Auction Series A 1990 750,000     75     75
Total   $ 209     $ 209


The call provisions for outstanding preferred stock specify redemption prices not exceeding 104% of par value, plus accumulated dividends to the redemption date.