Progress Energy to Replace Coal Units

On October 1, 2009, the North California Utilities Commission (NCUC) approved Progress Energy Carolinas' plan to build new a natural gas-fueled power generation plant in Wayne County. The commission approved a certificate of public convenience and necessity for Progress Energy Carolinas' proposed 950-megawatt (MW) combined-cycle power plant, with a projected investment of about $900 million.

Raleigh, North Carolina-based Progress Energy Inc. (PGN - Snapshot Report) is engaged in both regulated electric operations (in southeastern US) and unregulated businesses, which include competitive power generation, energy marketing and trading, natural gas exploration and production, and synthetic coal production.

Progress plans to build the Wayne County plant near the HF Lee coal-fired facility located on the Neuse River in Wayne County near Goldsboro. Once the new plant becomes functional in 2013, the company plans to retire the three coal units at Lee, which entered service in 1950s and 1960s.

The natural gas-fueled plant is expected to create around 500 construction jobs over the 24-month building process, which is expected to start in 2011. The company also plans to improve gas supply in the region with the construction of a natural gas pipeline to the Wayne County site.

The new plant is expected to produce approximately 550 MW of additional electricity, while reducing overall emissions including carbon dioxide, nitrogen oxides, sulfur dioxide and mercury. The additional generating capacity may be used to meet the demands of a growing customer service area, cater to evolving environmental requirements and provide for additional resource flexibility.

The Lee plant has been a vital part of Progress’ resource for about 60 years. Replacing the plant with new, advanced-design, cleaner-burning plants will help ensure dependable, affordable power for its 1.5 million customers and for future generations. The company plans to file for a state air permit in the coming months.