Duke Energy Income Fund

Duke Energy Income Fund

December 18, 2006 14:35 ET

Duke Energy Income Fund Declares December Distribution and Provides Tax Information

CALGARY, ALBERTA--(CCNMatthews - Dec. 18, 2006) - Duke Energy Income Fund (the "Fund") (TSX:DET.UN) has declared a monthly distribution relating to the period December 1, 2006 to December 31, 2006, of $0.07 per unit payable on January 15, 2007 to unitholders of record on December 29, 2006.

Since the Government of Canada announced proposed changes to the taxation of trusts on October 31, 2006, the management of the Fund and Duke Energy Facilities LP ("DEF LP") has received numerous inquiries regarding the tax pools of DEF LP's subsidiaries. The following information is presented in response to those inquiries.

As of September 30, 2006, subsidiaries of DEF LP had approximately $316 million of unutilized tax pools, consisting primarily of class 41 undepreciated capital costs.

The Fund owns a 53.8 percent indirect interest in DEF LP. The Fund's practice to date has been to minimize taxes payable by the Fund and its subsidiaries. Going forward, the Fund will continue to use tax planning as part of its overall business strategy to enhance unitholder value. No assurance can be given on the level of tax pools in the future or the extent to which these pools or any other tax deductions may or will be utilized.

As previously announced on November 7, 2006, and subject to regulatory approval, the Fund will be renamed Spectra Energy Income Fund effective January 1, 2007. This name change results from the spin-off of the natural gas business of Duke Energy Corporation ("Duke Energy") into a publicly traded entity which will be known as Spectra Energy Corp. Assuming completion of the spin-off effective January 1, 2007, units of the Fund will commence trading on the Toronto Stock Exchange under the symbol SP.UN on January 2, 2007.

Duke Energy Income Fund is an unincorporated open-ended trust established under the laws of the Province of Alberta and owns a 53.8 percent indirect interest in DEF LP which owns 100 per cent of Duke Energy Midstream Services Canada Corporation ("Duke Midstream"). Duke Energy indirectly owns the remaining 46.2 percent interest of DEF LP and is the sponsor of the Fund. Duke Midstream is one of the largest independent midstream operations in the Western Canadian Sedimentary Basin ("WCSB") with interests in thirteen natural gas processing plants with a net processing capacity of 904 mmcf/d and over 1,600 kilometres of natural gas gathering pipelines located throughout natural gas prone areas in the western extent of the WCSB. More information on Duke Energy Income Fund can be found at: http://www.dukeenergy incomefund.com.

About Duke Energy Gas Transmission

Duke Energy Gas Transmission (DEGT) is a North American leader in the long-haul transportation and storage of natural gas. For close to a century, DEGT and its predecessor companies have developed the critically important pipelines and related energy infrastructure that connects natural gas supply sources to premium markets. Based in Houston, Texas, the company's assets include about 17,500 miles of transmission pipeline and 250 billion cubic feet of storage capacity in the U.S. and Canada. DEGT also has natural gas gathering, processing and distribution assets and natural gas liquids operations that are among the largest in Canada. In June, Duke Energy announced a plan to separate its electric and gas businesses. DEGT, along with Duke Energy's 50 percent ownership in Duke Energy Field Services, expects to become a stand-alone, publicly traded company known as Spectra Energy Corp. Spectra Energy is expected to begin trading on the New York Stock Exchange as an independent company on Jan. 2, 2007. More information can be found at: http://www.degt.duke-energy.com.

Duke Energy is a diversified energy company with a portfolio of natural gas and electric businesses, both regulated and unregulated, and an affiliated real estate company. Duke Energy supplies, delivers and processes energy for customers in the Americas. 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: http://www.duke-energy.com.

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