CHARLOTTE, N.C., Feb. 21 /CNW/ -- Duke Energy announced today that it has
begun to implement a comprehensive plan to refund and refinance substantially
all of the approximately $883 million portfolio of tax exempt auction rate
bonds issued on behalf of its utility subsidiaries.
(Logo: http://www.newscom.com/cgi-bin/prnh/20040414/DUKEENERGYLOGO )
The subsidiaries, Duke Energy Carolinas LLC, Duke Energy Ohio Inc., Duke
Energy Indiana Inc. and Duke Energy Kentucky Inc., will seek to refinance the
obligations through the issuance of an equivalent amount of tax exempt bonds
within the next several weeks. Duke Energy is pursuing the refunding plan in
reaction to increased interest rates payable on the auction rate bonds as a
result of recent difficulties in the auction rate securities market.
The refunding plan will be presented to Duke Energy's board of directors
at its meeting next week. Closing of the various refunding transactions is
subject to such pending internal approvals, as well as the approval of
applicable state or county financing authorities and utility regulators.
Duke Energy, one of the largest electric power companies in the United
States, supplies and delivers energy to approximately 4 million U.S.
customers. The company has approximately 36,000 megawatts of electric
generating capacity in the Midwest and the Carolinas, and natural gas
distribution services in Ohio and Kentucky. In addition, Duke Energy has more
than 4,000 megawatts of electric generation in Latin America, and is a joint-
venture partner in a U.S. real estate company.
Duke Energy's commercial power business has approximately 8,100 megawatts
of unregulated generation, primarily in the Midwest, including efficient
natural gas and coal-fired plants. Substantially all of the financial results
for this business are driven by sales to retail customers in Ohio under the
state's rate stabilization plan.
Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company
traded on the New York Stock Exchange under the symbol DUK. More information
about the company is available on the Internet at: www.duke-energy.com.
MEDIA CONTACT: Carl Chavis
ANALYSTS: Sean Trauschke
For further information:
For further information: Media, Carl Chavis, +1-513-419-5373,
+1-704-382-8333 (24-hour), or Investors, Sean Trauschke, +1-980-373-7905, both
of Duke Energy Web Site: http://www.duke-energy.com