Western Carolinas Modernization Project In the past four decades, customers’ electricity use has more than doubled in and around the Asheville area. Peak power demand has more than tripled in Duke Energy Progress’ Western region, which serves 160,000 customers in nine western North Carolina counties. And, demand is expected to grow by more than 15 percent in the next decade. In May, we announced a comprehensive, longer-term solution to cost-effectively serve customers. In November 2015, a revised modernization plan for the region was announced to meet the region’s power demand that is better fit for the community. The proposal balances public input, environmental impacts and our need to provide customers with safe, reliable and affordable electricity. Key components of this $1.1 billion investment are scheduled to be completed by 2020 and include: •R etiring coal units at the Asheville Plant and continuing ongoing coal ash excavation and ash basin closure operations •B uilding two new natural gas-fired combinedcycle units totaling 560 megawatts and solar generation facilities at the Asheville Plant site RETIREMENT OF COAL UNITS The Asheville Plant has served the region well since 1964 and will continue to serve customers until the new natural gas plant comes on line. Duke Energy expects to retire the two coal-fired units, totaling 376 megawatts, by 2020. March 2016 •L everaging energy efficiency, demand side management, renewables and technology programs and initiatives to help meet peak demand •M odernizing existing transmission and distribution lines, substations and equipment NATURAL GAS PLANTS AND SOLAR GENERATION The two new natural gas-fired combined-cycle units will have a capacity of approximately 560 megawatts, which is enough electricity to serve nearly 448,000 homes. The units are scheduled to begin serving customers in late 2019. Duke Energy will work with the local gas distribution company to upgrade an existing gas pipeline to accommodate and serve our proposed combined cycle units with a firm fuel supply. After coal ash excavation work is complete, Duke Energy plans to add a solar facility at the Asheville plant site. The modernization project will also include engaging the community with energy efficiency, demand side management, renewables and technology programs and initiatives to help manage peak demand. TRANSMISSION AND DISTRIBUTION PROJECTS Duke Energy plans to meet increased power demand and ensure long-term reliability by expanding and modernizing existing transmission and distribution equipment. Reducing water usage The new natural gas-fired combined-cycle plants will remove all thermal impacts to Lake Julian. Investing in our air With the retirement of the coal plant and the investments in new, highly efficient technologies, the company expects to reduce annual emissions. Compared to statistics of the Asheville coal plant in 2014, the revised project is estimated to result in: 45% reduction of NOx 99% reduction of SO2 60% reduction of CO2 per megawatt-hour Note: The percentages above are conservative and include both phases of the modernization project. Final percentages will be determined after the company receives environmental permits. March 2016