Report: 50-100 Percent Jump in N.C. Electric Bills Possible if Duke, Progress Build...

Report: 50-100 Percent Jump in N.C. Electric Bills Possible if Duke, Progress
Build 4 Unneeded Nuclear Plants and Duke Finishes Cliffside Coal-Fired Power
Plant

Study by Duke University Economist Highlights Energy Efficiency and Renewables
as Path to Avoiding Costly New Plants and Shutting Down Many Existing Coal
Plants.

DURHAM, N.C., March 31 /PRNewswire-USNewswire/ -- North Carolina homeowners
could see their utility bills climb between 50-100 percent if Duke Energy and
Progress Energy are allowed to proceed with four nuclear plants and if Duke
completes the new Cliffside coal plant. Any need for these plants could be
replaced with modest increases in energy efficiency, cogeneration, and
renewable power, according to a major new study produced by the former chair
of the Duke University Economics Department for NC WARN (North Carolina Waste
Awareness & Reduction Network).

The report is being issued against a national backdrop in which more than 60
of 150 planned coal-fired power plants already have been stopped and many more
are likely to be halted. NC WARN issued the report today ahead of a filing
this week in which the group is contesting the long-range utility demand
forecasts and the supposed need for the new power plants.

The NC WARN news event to release the report was made possible with support
from the Civil Society Institute and TheClean.org (http://www.TheClean.org).

Titled "NORTH CAROLINA'S ENERGY FUTURE," the NC WARN report states:
"Electricity rates for most North Carolina customers will increase
dramatically if new coal-fired and nuclear power plants are successfully
completed by Duke Energy and Progress Energy. Our analysis of recent filings
by both companies shows that even with a growing population, North Carolina
can eliminate the need to risk $35-40 billion on new plants. This can be
accomplished through modest increases in energy efficiency, cogeneration and
renewable power sources, and if necessary, by using a large oversupply of
electricity in the Southeast. ... Electricity from new nuclear plants will
cost three to five times as much as the power now being generated by Duke
Energy and Progress Energy. Even the lower end of that range is much more
costly than energy-saving programs, and the nuclear price tag makes all forms
of renewable energy attractive in North Carolina, especially when many of them
enjoy declining costs."

Progress Energy is proposing two new reactors at the Shearon Harris nuclear
plant near Raleigh, while Duke Energy wants to build two reactors in Gaffney,
South Carolina, not far from Charlotte. If completed, each of the four
reactors is likely to cost ratepayers in North and South Carolina between $8
and $12 billion. Duke Energy is building a large coal-burning plant at
Cliffside, scheduled to open in 2012, with costs currently estimated at $2.4
billion. Costs for some or all of the plants could balloon even further when
financing problems, construction cost increases and other delays are taken
into account.

Report author John Blackburn, PhD, professor emeritus of economics, said:
"This report shows that, based on the utilities' numbers and the modest
changes noted above, electricity demand can be reduced by up to 3,700
Megawatts (MW) within 15 years, avoiding the need for any new plants and
allowing retirement of 7 to 9 existing coal-fired units. The utilities'
record on energy efficiency remains very weak; both forecast only minuscule
efficiency savings over the next 15 years. By contrast, an
independently-administered efficiency program such as the NC SAVE$ ENERGY
proposal would avoid the utilities' conflict of interest between building
expensive power plants -- upon which profits are based -- and selling less
electricity."

Dr. Blackburn has conducted research into energy efficiency and renewable
energy over more than two decades. He has authored two books and numerous
articles on the future of energy, and has served on the Advisory Boards of the
Florida Solar Energy Center and the Biomass Research Program at the University
of Florida. He has testified before the N.C. Utilities Commission in several
utility dockets on energy efficiency and renewable energy.
Report co-author John Runkle, environmental attorney, NC WARN, said: "North
Carolina consumers need to take note at what is happening right now in
Florida, where Progress Energy already has applied for a 31 percent rate
increase, driven in large part by escalating nuclear power costs. ... The
average residential electricity bill in North Carolina is currently $100 per
month, with larger homes generally using more electricity than smaller ones.
If the proposed coal and nuclear plants are built, electricity rates will
increase dramatically. Sufficient information is available to conclude that
Progress Energy rates would rise by at least half, or an average of $50 each
month, for each residence. This assumes that the current cost estimates for
the new nuclear plants will not escalate as they have done over the last four
years even while new units remain on the drawing board. If that happens, home
electricity bills could easily double."

According to the report: "Upcoming carbon regulation will also drive up the
price of coal-fired power, giving even more impetus to efficiency programs and
new renewable energy." The report outlines four things Duke Energy and
Progress Energy can do to avoid the risks associated with building the new
nuclear and coal-fired power plants:
1. Stop impeding progress toward real energy efficiency. Through proven
programs growing at a modest pace, efficiency can be increased at least
1% per year through 2023. Twenty other U.S. utilities and
municipalities
have already achieved at least this much.
2. Bring on renewable energy as required by the 2007 Energy Bill, Senate
Bill 3. At least 7.5% of electricity from new renewable sources is well
within reach, especially as prices for solar equipment continue
declining
and as North Carolina joins other mid-Atlantic states in developing its
large wind energy potential.
3. Make modest increases in load control programs to soften demand peaks.

4. Add cogeneration (combined heat and power), a proven resource that is
largely untapped in North Carolina.

Other highlights of the report include the following:
-- "If nuclear plant cost estimates continue rising, power bills could
easily double by the time they are built. New nuclear reactors are
likely to cost $8-12 billion each if they are ever completed. In the
1980s, dozens of U.S. nuclear plants were cancelled during
construction,
and now, serious delays and design problems have emerged. This could
leave customers with large rate hikes for abandoned projects, since
under the 2007 NC Energy Bill, corporate stockholder risks are largely
shifted to ratepayers. In early 2008, Wall Street lenders insisted
they
will not finance new plants without 100% loan guarantees by
taxpayers."

-- "...Duke Energy is currently seeking permission to sell more
electricity and is soliciting at least nine cities and other large
customers outside its service area for wholesale contracts. Existing
ratepayers would subsidize these new power sales by paying for the new
plants needed to meet that demand. If approved by the N.C. Utilities
Commission, this deal would add customers whose electricity usage
exceeds the 800 MW capacity Duke Energy says it must build at the
Cliffside coal-fired plant."

ABOUT NC WARN

NC WARN (North Carolina Waste Awareness & Reduction Network) is a member-based
nonprofit tackling the accelerating crisis posed by climate change -- by
working for a swift North Carolina transition to energy efficiency and clean
power. In partnership with other citizen groups, NC WARN uses sound scientific
research, advocacy and public education and involvement. For more
information, visit http://www.ncwarn.org.

EDITOR'S NOTE: A streaming audio recording of the news event will be
available on the Web as of 6 p.m. EDT on March 31, 2009 at
http://www.ncwarn.org.

SOURCE NC WARN, Durham, N.C.

Leslie Anderson, +1-703-276-3256, landerson@hastingsgroup.com, for NC WARN,
Durham, N.C.