04/01/2011

Progress Energy Carolinas to retire coal power plant ahead of schedule

Utility meets 2010 clean air targets, prepares for further emission reductions

RALEIGH, N.C. (April 1, 2011) – Progress Energy Carolinas will shut down its W.H. Weatherspoon coal-fired power plant this fall, several years ahead of the 

originally announced retirement schedule.

The company plans to retire the plant, located near Lumberton, N.C., after it operates during the summer’s period of high electricity demand to ensure sufficient 

power to supply customer needs. The utility had previously announced plans to retire the plant by 2017 as part of a fleet-modernization effort that will result in the 

retirement of 30 percent of Progress Energy’s North Carolina-based coal-fired fleet. The accelerated retirement was included in a report to the N.C. Utilities 

Commission today.

“This is another significant milestone for North Carolina,” said Lloyd Yates, president and CEO of Progress Energy Carolinas. “The Weatherspoon Plant has been 

a vital part of our ability to keep the lights on for more than 60 years, and we commend the men and women who worked around the clock to make it a reliable 

resource. We are proud of its record, and proud to be investing in new, clean technologies to power our region’s future.”

The W.H. Weatherspoon Plant has three coal-fired units with a total generating capability of 170 megawatts (MW). It has provided cost-effective, reliable

electricity to Eastern North Carolina since 1949. The decision to advance the retirement date was made after an evaluation of system resource needs, 

investments needed to comply with upcoming state and federal environmental regulations and the economics of continued operation. Part of the decision includes 

the fact that a new gas-fired combined-cycle power plant at the company’s Richmond County Energy Complex will add 600 MW to the utility’s system when it 

comes online in June.

The retirements of the utility’s other smaller, older coal-fired units in North Carolina are on track. The coal units at the H.F. Lee Plant near Goldsboro are 

scheduled to be replaced by a natural gas plant in 2013; the Cape Fear Plant near Moncure will be retired by the end of 2014; and the coal units at the L.V. 

Sutton Plant near Wilmington will be replaced by a natural gas plant in 2014.

Converting the coal-fired generation to power plants fueled by cleaner-burning natural gas will result in significant additional emission reductions, including carbon 

dioxide, sulfur dioxide, nitrogen oxides, mercury and other pollutants.

When Progress Energy Carolinas announced its fleet-modernization plan, it employed about 260 people at the four coal-fired sites affected by the plan. Since 

then, the company has worked to ensure that as many as possible have jobs at the new gas-fueled power plants or opportunities to move to other positions at 

company facilities during the multiyear transition period. Of the 51 employees at the W.H. Weatherspoon Plant, more than half have found work at other Progress 

Energy locations, others plan to retire when the coal units are retired and the company continues to work with the remaining employees.

In its annual N.C. Clean Smokestacks Act update, filed today with the N.C. Utilities Commission, Progress Energy Carolinas reported that it has cut emissions of 

nitrogen oxides (NOx) by 68 percent and sulfur dioxide (SO2) by 71 percent from 2002 levels at the company’s coal-fired power plants in North Carolina. In 2010, 

the company successfully met the state’s first reduction target for NOx and continued to meet the reduction target for SO2 emissions.

In 2002, Progress Energy Carolinas joined a coalition of public officials, environmental organizations, citizen groups and businesses to support the Clean 

Smokestacks Act. The legislation set a limit for SO2 and NOx emissions from coal-fired power plants and provided flexibility to meet those limits in the most costeffective way. The utility has nearly completed all emissions-control technology projects related to complying with the Clean Smokestacks Act and expects to 

have invested a total of $1.05 billion. 

About Progress Energy 

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and 

approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and 

Florida. The company has earned the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence, and was 

the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. The company is pursuing a balanced strategy for a 

secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity 

system. Progress Energy celebrated a century of service in 2008. Visit the company’s website at www.progress-energy.com.

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