RESPONSIBILITY FOR FINANCIAL STATEMENTS

    The financial statements of Duke Power Company are prepared by management,
which is responsible for their integrity and objectivity. The statements are
prepared in conformity with generally accepted accounting principles
appropriate in the circumstances to reflect in all material respects the
substance of events and transactions which should be included. The other
information in the annual report is consistent with the financial statements.
In preparing these statements, management makes informed judgments and
estimates of the expected effects of events and transactions that are currently
being reported. 

    The Company's system of internal accounting control is designed to provide
reasonable assurance that assets are safeguarded and transactions are executed
according to management's authorization. Internal accounting controls also
provide reasonable assurance that transactions are recorded properly, so that
financial statements can be prepared according to generally accepted accounting
principles. In addition, the Company's accounting controls provide reasonable
assurance that errors or irregularities which could be material to the financial
statements are prevented or are detected by employees within a timely period as
they perform their assigned functions. The Company's accounting controls are
continually reviewed for effectiveness. In addition, written policies, standards
and procedures, and a strong internal audit program augment the Company's
accounting controls. 

    The Board of Directors pursues its oversight role for the financial
statements through the audit committee, which is composed entirely of directors
who are not employees of the Company. The audit committee meets with management
and internal auditors periodically to review the work of each group and to
monitor each group's discharge of its responsibilities. The audit committee also
meets periodically with the Company's independent auditors, Deloitte & Touche
LLP. The independent auditors have free access to the audit committee and the
Board of Directors to discuss internal accounting control, auditing and
financial reporting matters without the presence of management. 


(Signature OF Jeffrey L. Boyer)
Jeffrey L. Boyer 

Controller

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