N.C. Collaborative Regional Transmission Plan Update – Supplemental Report

Raleigh, N.C. —Participants in the North Carolina Transmission Planning Collaborative (NCTPC) have published a Supplemental Report that updates the 10-year (2007-2017) Collaborative Transmission Plan (2007 Plan) to include two additional electric transmission system projects deemed critical for ensuring a continued reliable flow of electricity and robust transmission access in the state.

Participants include Duke Energy Carolinas, Progress Energy Carolinas, North Carolina Electric Membership Corporation and ElectriCities of North Carolina.

An ongoing assessment of needs by the transmission-operating members of the Collaborative indicated the need for the additional projects after the 2007 Plan had been submitted. The projects are needed to accommodate confirmed requests for transmission service under the Open Access Transmission Tariff (“OATT”) of Progress Energy Carolinas.

The 2007 Plan initially published in January 2008 included 17 major projects with a total estimated cost of $400 million. The 2007 Supplemental Plan includes 18 major projects (after adding two newly identified projects to the list and removing one in-service project from the list) with a total estimated cost of $523 million. The difference in the total estimated cost of the two plans is primarily attributable to (1) the estimated costs of $115 million for the two new major projects and (2) the revised estimated costs for some of the other Progress Energy projects included in the plan.

In addition to providing the updated plan, the Supplemental Report also discusses transmission issues associated with meeting anticipated load requirements in the Progress Energy Carolinas western N.C. region.  Solutions for the western region are still under development.  The 2007 Supplemental Report can be viewed on the NCTPC Web site at www.nctpc.org/nctpc under the Reference Documents section.

The major transmission projects identified in the updated 2007-2017 Collaborative Transmission Plan are expected to be implemented over the 10-year planning horizon by the transmission owners to preserve system reliability and supply requested transmission service. These planned projects are part of an annual planning process and are subject to change based on evolving system conditions. Work is continuing on the 2008 study and those Collaborative Transmission Plan results are expected to be published at the end of this year.

“The Commission continues to view the NCTPC process as a model for an open, collaborative regional transmission planning process that provides benefits to all North Carolina consumers,” said Jim Kerr, a commissioner on the North Carolina Utilities Commission and past-president of the National Association of Regulatory Utility Commissioners (NARUC). “These positive results confirm my belief in the value of collaborative regional planning in addressing state and federal objectives.”

The NCTPC was established in May 2005 to provide the Participants and other stakeholders an opportunity to participate in the electric transmission planning process for North Carolina, and to develop a single coordinated transmission plan for North Carolina electric utilities that includes reliability and enhanced transmission access considerations.  Among the group’s top priorities is the goal of balancing costs, benefits and risks associated with the use of transmission and generation resources.

“The completion of this Supplemental Study and the subsequent improvements in theTransmission Plan is another important milestone in the process and shows the continued benefits of collaboration.” said Ed Ernst, OSC Chair.

The NCTPC process includes active participation of other market participants and other stakeholders through a Transmission Advisory Group (TAG), which is open to all interested parties. If you are interested in joining the TAG or receiving future information related to this NCTPC process, you can go to the NCTPC Web site at www.nctpc.org/nctpc and sign up for the TAG distribution list.

The NCTPC process includes the use of an Independent Third Party (ITP) consultant to act as a facilitator for the development and conduct of the NCTPC process. This role includes Chairing the TAG and soliciting input from the other stakeholders through the open TAG meetings. The ITP consultant for the NCTPC process is Gestalt, now part of Accenture LLP, www.gestalt-llc.com.

If you have any comments or questions on the NCTPC process or specifically on the 2007-2017 Collaborative Transmission Plan Study Report, please contact Ed Ernst, NCTPC Chair (via email heernstjr@duke-energy.com or phone 704-382-5027).

For media inquiries, please contact corporate media relations at each entity:

Duke Energy Carolinas

 – Tim Pettit; 704.382.4850; tjpettit@dukeenergy.com

ElectriCities of NC (municipals)

 -Rebecca Agner, (919)760-6334; ragner@electricities.org

Progress Energy Carolinas

– Mike Hughes, (919) 546-7274; mike.hughes@pgnmail.com

NCEMC (co-ops)

 – Jane Pritchard, (919) 875-3104, jane.pritchard@ncemcs.com