Progress Energy to Buy Power from Landfill Gas in North Carolina

Date: September 27, 2010

Source: Progress Energy

Progress Energy Carolinas adds Wayne County landfill gas to growing renewable energy portfolio

A new, greener future is taking shape for the Wayne County Landfill as it becomes a source for renewable energy. Progress Energy Carolinas and Methane Power, Inc., have signed an agreement under which Methane Power will build and operate a 3-megawatt (MW) landfill gas-to-energy facility on the Wayne County Landfill. The utility will purchase the generated electricity and use it to serve the needs of its customers.

The Wayne County facility will begin operation by the end of 2010 and is expected to produce roughly 25,000 megawatt-hours of electricity per year, which is equivalent to the annual energy demand of about 1,800 average residential customers. The facility will capture methane gas, a potent greenhouse gas, that is emitted from the Wayne County Landfill and use that gas to fuel three internal combustion engines to generate electricity.

Methane Power has made a $5 million investment in Wayne County to construct the new facility. According to Lewis Gay, vice president of Methane Power, landfill gas is one of the most economical renewable options available in North Carolina and it uses proven technology.

"Methane Power is pleased to be a part of this project working with the innovative leadership of Wayne County and Progress Energy Carolinas," said Gay. "We are dedicated to providing North Carolina with as much renewable energy as possible from landfill gas."

This project adds to Progress Energy Carolinas' rapidly growing portfolio of renewable energy projects. The utility has three other landfill gas-to-energy projects in North Carolina: a 1-MW plant in Buncombe County, a 4-MW plant in Craven County and a 6.4-MW plant in Sampson County.

"We are committed to partnering with our communities to invest in cost-effective and reliable alternative energy resources, such as landfill gas," said Lloyd Yates, president and CEO of Progress Energy Carolinas. "Projects such as this one are helping to address the challenges of growing energy demand and global climate change."

Progress Energy Carolinas has signed contracts for more than 50 MW of renewable energy, mainly from solar and biomass resources, since 2007. For more information on Progress Energy's renewable energy projects, please visit www.progress-energy.com/environment.

About Methane Power, Inc.

Methane Power, Inc. is a renewable energy developer. The company's main focus is on landfill gas-to-energy projects, involving the development of municipal solid waste landfills to generate saleable energy in the form of electricity, medium-Btu gas or high-Btu gas for direct consumption in industrial plants, please visit www.methanepower.net.

About Progress Energy

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 22,000 megawatts of generation capacity and approximately $10 billion in annual revenues. Progress Energy includes two major electric utilities that serve about 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company's website at www.progress-energy.com.

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