Richard B. Priory
Chairman of the Board
Chief Executive Officer

WE CALL UPON OUR DEEP AND PRINCIPLED MANAGEMENT CAPABILITY.

The right mix of skills and experience allowed us to redefine our corporate organization to respond to the market realities of 2002. The appointment of Fred Fowler to the role of Duke Energy’s president and chief operating officer was a strong and definitive move by our Board of Directors. Fred brings tremendous operational leadership, financial rigor and a solid track record of delivering results in both key areas. Congratulations and our deepest thanks to Bill Coley, who retired in February as president of Duke Power and as a member of Duke Energy’s Board of Directors. Bill provided strong leadership within our company and our community over the course of a distinguished 37-year career with the company. We wish him well.

These significant changes at the highest level of our company resulted in a number of positive moves within our operating businesses: Ruth Shaw succeeds Bill Coley as president of Duke Power; Tom O’Connor now serves as president of Duke Energy Gas Transmission; Rob Ladd is president of Duke Energy North America; Richard McGee continues as president of Duke Energy International; and Jimmy Mogg continues as chairman, president and CEO of Duke Energy Field Services. In making these changes and related realignments, we drew upon deep management bench strength and the talent needed to move us forward with good direction and momentum.

We are governed by an engaged and exacting Board of Directors. As more stringent governance standards have been proposed on many different fronts, we are in compliance with current standards and intend to meet all future requirements. We welcome Michael Phelps to our board, and thank Dennis Hendrix and Harold Hook for their years of dedicated service.