ALLENTOWN, Pa. -- PP&L Global, Inc., a subsidiary of PP&L Resources, Inc. (NYSE: PPL), and Duke Energy North America (DENA), the developer of North American power projects for Duke Energy (NYSE: DUK), today (7/26) reached an agreement to jointly complete the building of a gas-fired, combined-cycle power plant near Kingman, Ariz., with a nominal base-load capacity of 500 megawatts and a peak capacity of 600 megawatts.

In September 1998, PP&L Global announced state and local support for the project, known as the Griffith Energy Project, from the Arizona Siting Commission, the Mohave County Economic Development Authority and Mohave County leaders. The Griffith site is located near Arizona's border with Nevada, about 75 miles south of Lake Mead.

As part of the agreement, PP&L Global will transfer a 50 percent interest in the Griffith Energy Project to DENA, and DENA will fund 50 percent of the capital cost of the project. All major equipment for the project has been secured. The Griffith Energy Project is expected to be in service and producing power by mid-2001, according to Paul T. Champagne, president of PP&L Global.

"We are pleased to be joined by a company like DENA to advance the prompt completion of this project," said Champagne. "This is the second opportunity we have had to work with Duke Energy. PP&L Global and Duke Energy teamed up in the integrated Aguaytia Energy Project in Peru, which generates 160 megawatts of gas-fired electric generation and processes 3,700 barrels per day of natural gas liquids."

The agreement with DENA will advance PP&L Global's strategy of developing and acquiring power plants in key domestic markets of the United States even as we expand on the success of our overseas electric generation and distribution systems," said Champagne. "This project is in an excellent location, in a growing region of the Southwest, with significant demand for energy," he added.

PP&L Global and Houston-based DENA will share the management responsibility of an operating subsidiary, Griffith Energy, LLC, formed by PP&L Global last year to oversee construction and operation of the Griffith Energy Project. When completed, the project is expected to employ about 25 people.

PP&L Global also is pursuing the development of power plants in Wallingford, Conn., and at Martins Creek in northeastern Pennsylvania. Like the Arizona plant, these plants will use natural gas as the primary fuel in conjunction with a combined-cycle turbine design. This design is among the most efficient in today's electricity market and will further PP&L Resources' commitment to superior environmental performance.

PP&L Global now has investments and commitments totaling about $2.4 billion in Europe, Latin America and various U.S. locations. PP&L Global also is playing an essential role in PP&L Resources' five-year plan to more than double the size of its U.S. electricity generation portfolio to about 20,000 megawatts.

Duke Energy North America (DENA), a unit of Duke Energy, is a premier developer, owner and manager of wholesale electric generation projects throughout the United States, Mexico and Canada. DENA offers industry-leading expertise in project development, construction and operations as well as portfolio management including commercial transactions, risk management and energy trading and marketing.

Duke Energy is a global energy company with more than $26 billion in assets. Headquartered in Charlotte, N.C., the company reaches into more than 50 countries, producing energy, transporting energy, marketing energy and providing energy services. In the United States, Duke Energy companies provide electric service to about 2 million customers in North Carolina and South Carolina; operate interstate pipelines that deliver natural gas to various regions of the country; and are leading marketers of electricity, natural gas and natural gas liquids. Additional information about the company is available on the Internet at www.duke-energy.com