04/01/2011



## Progress Energy Carolinas to retire coal power plan t 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, se veral years ahead of the originally announced retirement schedule. The company plans to retire the plant, located nearLumberton, N.C., after it operates during the summ er’s period of high electricity demand to ensure su fficient power to supply customer needs. The utility had pre viously 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 r etirement was included in a report to the N.C. Util ities Commission today. “This is another significant milestone for North Ca rolina,” said Lloyd Yates, president and CEO of Pro gress Energy Carolinas. “The Weatherspoon Plant hasbeen a vital part of our ability to keep the lights on f or more than 60 years, and we commend the men and women who worked around the clock to make it a relia ble resource. We are proud of its record, and proud to be investing in new, clean technologies to power ou r region’s future.” The W.H. Weatherspoon Plant has three coal-fired un its with a total generating capability of 170 megaw atts (MW). It has provided cost-effective, reliable electricity to Eastern North Carolina since 1949. T he decision to advance the retirement date was made after an evaluation of system resource needs, investments needed to comply with upcoming state an d federal environmental regulations and the economi cs of continued operation. Part of the decision inc ludes the fact that a new gas-fired combined-cycle power plant at the company’s Richmond County Energy Compl ex will add 600 MW to the utility’s system when it comes online in June. The retirements of the utility’s other smaller, old er 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 reti red 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 plant s fueled by cleaner-burning natural gas will result in significant additional emission reductions, inc luding carbon dioxide, sulfur dioxide, nitrogen oxides, mercury a nd 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. Si nce then, the company has worked to ensure that as manyas 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. Weatherspoo n Plant, more than half have found work at other Pr ogress Energy locations, others plan to retire when the co al units are retired and the company continues to work with the remaining employees. In its annual N.C. Clean Smokestacks Act update, fi led today with the N.C. Utilities Commission, Progr ess Energy Carolinas reported that it has cut emiss ions of nitrogen oxides (NOx) by 68 percent and sulfur diox ide (SO2) by 71 percent from 2002 levels at the com pany’s coal-fired power plants in North Carolina. I n 2010, the company successfully met the state’s first redu ction target for NOx and continued to meet the redu ction target for SO2 emissions. In 2002, Progress Energy Carolinas joined a coaliti on of public officials, environmental organizations , citizen groups and businesses to support the Clea n Smokestacks Act. The legislation set a limit for SO 2 and NOx emissions from coal-fired power plants an d provided flexibility to meet those limits in the most costeffective way. The utility has nearly completed all emissions-control technology projects related to c omplying 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 Ralei gh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progr ess Energy includes two major electric utilities th at serve about 3.1 million customers in the Carolin as and Florida. The company has earned the Edison ElectricInstitute's Edison Award, the industry's highest h onor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. P ower and Associates Founder's Award for customer se rvice. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive ene rgy-efficiency programs, investments in renewable e nergy technologies and a state-of-the-art electrici ty system. Progress Energy celebrated a century of ser vice in 2008. Visit the company’s website at www.progress-energy.com

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# Press Release Page 1 of 1 Progress Energy Carolinas to retire coal power plant ahead of schedule

7/23/2012 https://www.progress

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