DBRS Releases Report on Duke Capital LLC

Dominion Bond Rating Service (“DBRS”) has issued a credit report today on Duke Capital LLC (“Duke Capital” or the “Company”). The report provides the detailed rationale for DBRS’s confirmation, and removal of the Company’s ratings from “Under Review with Developing Implications” on September 20, 2005.

The report also incorporates an analysis of recent events at Duke Capital, including the Company’s November 2005 agreement to transfer substantially all of Duke Energy North America’s (“DENA”) portfolio of derivative contracts to Barclay’s Capital by January 3, 2006, in exchange for a payment of about US$0.7 billion. The payment will be largely offset by the receipt of net collateral as Barclays Capital becomes the counterparty on the contracts. (DENA is a wholly owned subsidiary of Duke Capital.)

A copy of the September 20, 2005, press release is available at www.dbrs.com.