October 21, 2008

Progress Energy Receives Approval to Build Natural Gas-Fueled Power Plant

The North Carolina Utilities Commission has approved Progress Energy Carolinas's plan to build a natural gas-fueled power plant in Richmond County, North Carolina, as part of its balanced strategy for meeting the growing energy needs of the region.

The state regulatory commission issued a certificate of public convenience and necessity for construction of the plant, with a rated capacity of 600MW, on the existing site of Progress Energy's Richmond County Energy Complex near Hamlet. The site currently has 1,231MW of electric generation, fueled primarily by natural gas.

Progress Energy announced the plan to build the new plant in October 2007. Part of the estimated investment of $700 million to $750 million includes a 64-mile, 230kV electric transmission line between the power plant and an electric substation in Cumberland County. The North Carolina Utilities Commission has not yet issued an order regarding the transmission portion of the project.

To meet a June 2011 in-service date, site preparation will begin in early 2009. Construction will not begin until the project has received an air permit from the state of North Carolina.