ELECTRIC OPERATIONS

Duke Power's customer base in North Carolina and South Carolina grew by 2.8 percent across all classifications in 1999. Electricity sales decreased slightly by 0.6 percent compared with 1998. Duke Power's reputation has been built on everything from technical and operational expertise to what is nationally regarded as the best in customer service. The inaugural Financial Times Energy Award for Best Electric Company recognized Duke Power's almost 100 years of "safe, reliable, competitively priced electricity and outstanding customer service . . . ." Electric Light & Power Magazine ranked Duke's coal-fired power plants the most fuel-efficient in the U.S. for the 25th consecutive year – an unparalleled achievement. Its nuclear system had its best year ever in 1999, achieving a capacity factor of 90 percent, setting records for productivity and producing almost 55 million MWh for the year. Duke Power earned the highest rating for customer service for U.S. electric utilities, according to the American Customer Satisfaction Index, based on customers' actual experiences. Electric Operations continues its traditional emphasis on customer service and value while leading efforts to bring additional benefits that can be realized with well-ordered restructuring initiatives.

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