PWC Signs 20-Year Power Supply Agreement with Progress Energy

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PWC Commissioner Terri Union, General Manager, Steve Blanchard, and Commissioner Mike Lallier watch as Chairman Wilson Lacy (right) and Board Secretary Lou Olivera (left) complete the signing of the 20-year power supply contract with Progress Energy

June 10, 2009

PWC has accepted a deal with Progress Energy Carolina that will serve PWC's electricity needs for the next 20 years.

The agreement becomes effective July 1, 2012 and extends PWC’s & PE long association which spans numerous power supply agreements.  PWC has purchased power from PE (formerly Carolina Power & Light) since 1914.

“Our customers depend on PWC to provide reliable services at a reasonable price. PWC has been very diligent in the process of securing a new power agreement that puts us in the best position to continue to meet our customer needs with electric rates that are competitive with other local electric providers, ”  said Wilson A. Lacy, PWC chairman.  “The electric industry will continue to face many challenges meeting future growth and environmental requirements and it is reassuring that we can continue our established partnership with Progress Energy and meet these challenges together.”

PWC is PE’s largest municipal wholesale customer with a 500+ MW load. Last year, PWC purchased two billion kilowatt hours (kWh) and on average, PWC spends $100 million annually on power supply under current contract that ends June 30, 2012.  The estimated value of the new contract is $4 billion over the next 20 years.       

Currently, PWC operates the Butler-Warner Generation Plant under its existing agreement with Progress Energy.  Under the new contract, PWC will continue to maintain and operate the plant and the plant will be dispatched as needed to meet PE’s energy needs.        

“Fayetteville is a long-time customer and partner, and we are very pleased that we will continue to grow together well into the future,” said Lloyd Yates, president and CEO-Progress Energy Carolinas. “The contract assures Fayetteville and its citizens of a reliable, competitively priced supply of energy and enables Progress Energy to continue to pursue efficient regional resource planning that helps keep the cost of energy lower for all customers.”     

PWC is the largest municipal electric provider in North Carolina and the 35th largest (of over 2,000) in the country serving over 78,000 customers in the Fayetteville/Cumberland County area.  PWC is one of only six municipal electric systems in the U.S. to receive the American Public Power Association’s Diamond level designation of the Reliable Public Power Provider (RP3) award for providing consumers with the highest degree of reliable and safe electric service.  

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