RALEIGH, N.C., Oct. 15, 2002 — Progress Energy has signed an agreement with Duke Power Co. to provide peaking generation capacity and energy to Duke from Progress Energy’s Rowan County Energy Complex near Salisbury, N.C.
The contract, which was signed on Sept. 25, runs from June 1, 2004, through May 31, 2008. Progress Energy, through its subsidiary Progress Ventures, Inc., will provide 153 megawatts of capacity and energy from the Rowan plant’s unit three, a simple- cycle natural gas-fired power plant.
Financial terms of the agreement were not disclosed. Contracts are currently in place for Progress Ventures to supply Duke with generating capacity from Rowan’s other two units, also simple-cycle natural gas-fired plants.
Peaking plants provide electric generation to meet high customer demand, especially on the hottest and coldest days of the year. Progress Ventures is the subsidiary of Progress Energy that manages the parent company’s portfolio of non-regulated generation. It currently has 1,550 megawatts of non- regulated peaking generation in operation, with an additional 1,550 megawatts under construction.
“We are pleased to secure yet another long-term contract for one of our non-regulated plants,” said Tom Kilgore, president of Progress Ventures. “Our marketing and trading strategy has always been based on the assets we own. Our emphasis will continue to be on securing long-term sales on those assets.”
“This contract is another example of the benefits of our developing competitive wholesale electricity market,” said Ellen Ruff, senior vice president of Asset Management for Duke Power. “Sometimes we build our own power plants to meet our customers’ needs and sometimes we secure power on the competitive wholesale market to meet their needs. Having a variety of choices ultimately ensures that our customers’ needs are met in the most economical way possible.”
Progress Energy is a Fortune 250 diversified holding company headquartered in Raleigh, N.C., with more than 21,500 megawatts of generation capacity and $8 billion in annual revenues. The company’s diverse portfolio includes two major electric utility companies, CP&L and Florida Power, as well as NCNG, Progress Rail, Progress Telecom and Progress Ventures, which manages the company’s non-regulated energy operations including fuel extraction, manufacturing and delivery; merchant generation; and energy marketing and trading.
These companies serve 2.9 million customers across the Southeast, providing electricity, natural gas, energy services and broadband capacity. For more information about Progress Energy, visit the company’s Web site at http://www.progress-energy.com/.
Source: Progress Energy, Inc.