Oct. 22, 2009 (PR Newswire) --

CHARLOTTE, N.C., Oct. 22 /PRNewswire-FirstCall/ -- Piedmont Natural Gas (NYSE: PNY) today announced an agreement with Progress Energy Carolinas (NYSE: PGN) to provide natural gas delivery service to the electric utility's recently announced state-of-the-art power generation facility to be built at Progress Energy Carolinas' Wayne County, N.C., energy complex. The plans call for Piedmont to construct 38-miles of 20-inch pipeline along with additional compression facilities to provide natural gas delivery service to the plant by July, 2012. Piedmont's investment in the pipeline and compression facilities is estimated at $85 million and is supported by a long-term service agreement with Progress Energy Carolinas.

Progress Energy Carolinas announced its plan for the new power plant August 18. The plan includes retiring three existing coal-fired units at the adjacent H.F. Lee Plant in Wayne County once the new gas-fueled units come online. Progress Energy Carolinas expects the new combined-cycle natural gas plant to increase the amount of electricity produced at the site while reducing overall emission rates for carbon dioxide by an estimated 60 percent, mercury rates by 100 percent, sulfur-dioxides by nearly 100 percent and nitrogen oxides by more than 95 percent.

Piedmont Natural Gas Chairman, President and CEO, Thomas E. Skains commented on the agreement, "We're excited about this opportunity to work with Progress to deliver clean and efficient natural gas to their new power generation facility. In addition to the environmental benefits associated with using natural gas at this new plant, the construction of the natural gas pipeline for this project will also add to our natural gas infrastructure in the eastern part of North Carolina and enhance future opportunities for additional economic growth and development."

Progress Energy Carolinas CEO and President, Lloyd Yates said, "We are pleased that our project is moving forward and that it will be the catalyst for extending natural gas supply more deeply into Eastern North Carolina. This is an important milestone for our customers and our company, as we bring a cleaner electricity generation technology to the region."

Forward Looking Statement

This press release contains forward-looking statements. These statements are based on management's current expectations and information currently available and are believed to be reasonable and are made in good faith.