RALEIGH, N.C., Oct. 3, 2003 — Progress Energy announced Wednesday that it has completed the sale of NCNG, a local natural gas distribution company, to Piedmont Natural Gas Co. of Charlotte, N.C. Net proceeds from the $425 million sale will be used to reduce overall corporate debt.
“The sale of NCNG is part of Progress Energy’s strategy to focus on our core business — the end-use electricity market,” said Don Davis, executive vice president, Progress Energy. “While Progress Energy will continue to hold investments in proven natural gas reserves to support our electric supply strategy, retail natural gas distribution no longer fits with our overall corporate strategy. The proceeds from the sale will be used to pay down debt and improve our balance sheet.”
The sale included Progress Energy’s investment in EasternNC, a joint venture with the Albemarle Pamlico Economic Development Corporation (APEC) to bring natural gas service to 14 counties in eastern North Carolina. EasternNC was Progress Energy’s only other retail natural gas distribution holding.
Progress Energy (NYSE: PGN – News), headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $8 billion in annual revenues. The company’s holdings include two electric utilities serving more than 2.8 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering competitive generation, energy marketing, natural gas production, fuel extraction, rail services and broadband capacity. For more information about Progress Energy, visit the company’s Web site at http://www.progress-energy.com.