The state regulatory commission on Oct. 13 issued a certificate of public convenience and necessity for construction of the plant, with a rated capacity of 600 megawatts (MW), on the existing site of Progress Energy's Richmond County Energy Complex near Hamlet. The site currently has 1,231 MW of electric generation, fueled primarily by natural gas.

Progress Energy announced the plan to build the new plant in October 2007. Part of the estimated investment of $700 million to $750 million includes a 64-mile, 230-kilovolt electric transmission line between the power plant and an electric substation in Cumberland County. The N.C. Utilities Commission has not yet issued an order regarding the transmission portion of the project.

Current plans call for the power plant to be in service in mid-2011 to meet the region's growing demand for electricity. In-service dates are subject to change based on changes in customer growth, wholesale load forecasts, changes in expected levels of energy-efficiency participation and renewable energy availability, among other factors.

To meet a June 2011 in-service date, site preparation will begin in early 2009. Construction will not begin until the project has received an air permit from the state of North Carolina. That review is under way.

The project is a critical part of Progress Energy Carolinas' ability to meet the growing needs of its Carolinas customers. Even in the current economic downturn, the company expects its service area to grow by more than 20,000 new homes and businesses this year.

Average household use of electricity has increased by about 50 percent in the last three decades as home size has grown and as the use of electronics has expanded in support of modern lifestyles and businesses. The system of electricity production and delivery must keep pace with that growth.

The planned Richmond County addition is intermediate-level electric generation, meaning it will operate 20 to 60 percent of the time to meet fluctuating customer demand for electricity.

The plant will use combined-cycle technology, in which exhaust heat is captured and used to generate additional electricity, to make the plant highly efficient. The plant design and fuel type also will help ensure very low emissions.

State-of-the-art power plants are one component in Progress Energy's balanced energy strategy for meeting future needs.

The company also is moving forward with new energy-efficiency programs and is pursuing renewable and alternative energy supplies, including solar energy and electricity produced from biofuels and agricultural wastes.

The N.C. Utilities Commission recently approved four new efficiency and demand-side management programs, and Progress Energy has signed contracts to purchase the output of two megawatt-sized solar photovoltaic power plants under construction in North Carolina. Additional efficiency programs are in development, and the company expects to announce additional renewable energy projects before the end of the year.

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