Duke/Fluor Daniel Wins Contract to Operate and Maintain Indiana Energy Facility.

CHARLOTTE, N.C.--(BUSINESS WIRE)--Aug. 25, 1998--Duke/Fluor Daniel Tuesday announced that it has been awarded a 15-year contract by Cokenergy Inc., a unit of Primary Energy, to provide operations, maintenance and management (OM&M) services for the 94-megawatt Indiana Harbor HRC Facility in East Chicago, Ind. Duke/Fluor Daniel's contract value was not disclosed.

Duke/Fluor Daniel had previously provided turnkey design and construction services for the facility, which consisted of a flue gas conditioning system and a steam turbine generator-based bottoming cycle energy facility. The facility became operational in June 1998.

"Cokenergy's Indiana Harbor Facility represents cogeneration in its truest sense," said Ted Rosiak, Jr., vice president of Operations & Maintenance for Duke/Fluor Daniel. "Cokenergy is utilizing waste heat from a new coking facility to produce needed process steam and electricity for the Inland Steel Indiana Harbor Plant. In addition, the sulfur dioxide scrubbers and baghouse significantly reduce emissions which would be otherwise vented to the atmosphere during the production of coke."

Duke/Fluor Daniel will be responsible for development of plant procedures, staffing and management of the operations, and maintenance of the power generation equipment, flue gas conditioning systems and the cogeneration steam delivery system.

Primary Energy Inc., a wholly owned subsidiary of NIPSCO Industries Inc. (NI), develops and manages energy projects for large industrial customers, providing competitive responses to their energy needs.

NI (NYSE:NI) is an energy-based holding company with headquarters in Merrillville, Ind. Its holdings include regulated electric, water and natural gas utilities and a natural gas pipeline, and non-regulated businesses, which are primarily energy focused.

Duke/Fluor Daniel was formed in 1989 by Duke Energy Corp. and Fluor Daniel. It provides comprehensive engineering, procurement, construction, operations and maintenance/technical services for fossil-fueled electric power generation facilities worldwide.

Duke Energy Corp. (NYSE:DUK) is a global energy company with more than $24 billion in assets. Duke Energy companies provide electric service to about 2 million customers; operate pipelines which deliver 12 percent of the natural gas consumed in the United States; and are leading marketers of electricity, natural gas and natural gas liquids. Globally, the companies develop, own and operate energy facilities and provide engineering, management, and operating and environmental services.

Fluor Daniel, the principal subsidiary of Fluor Corp. (NYSE:FLR), is a leading engineering, construction, maintenance and diversified services company with more than 50 offices worldwide.

Fluor Corp. releases are available on Fluor's Corporate News on the Net site at http://www.businesswire.com/cnn/flr.htm.

    CONTACT:  Fluor Corporation
               Lisa Boyette, Media Relations
               949/975-3652
               Lila Churney, Investor Relations
               949/975-3909
                     or
               Duke Energy Corporation
               Randy Wheeless
               704/382-8379 (Office)
               704/382-8333 (24-Hour)