Progress Energy

1. Progress Energy Don Cooke Lead Environmental Specialist don.cooke@pgnmail.com

2. Progress Energy www.progress-energy.com • 2.8 million customers • 23,000+ MW’s • 72,000 primary miles of distribution lines • 9,800 miles of transmission lines • 15,300 employees • $24 billion assets • $8 billion revenues • Fortune 250 company

3. Generating electricity

4. How electricity gets to your house

5. Fuel mixture

6. Economic Growth Trends Comparison of Growth Areas and Emission Trends US Gross Domestic Product Increased 158% Vehicle Miles Traveled Increased 143% Energy Consumption Increased 45% US Population Increased 36% Aggregate Emissions Decreased 29% (Six Principal Pollutants) Source: EPA Trends Report for 2000

7. Issues electric utilities are currently following… • Air – NOx, SOx, PM2.5, mercury, NSR, Clear Skies Initiative, Clean Smokestacks (NC), etc. • New Energy Policy – 2004 • The Blackout of 2003 • Alternative energy - “Green” power; fuel cells; etc. • Synfuel tax credit; EMF;……?

8. Energy Delivery 2003 Environmental Training For Facility Contacts Eastern Region2003 Environmental Training Energy Delivery Environmental Awareness Level II

9. ENVIRONMENTAL MANAGEMENT SYSTEM

10. Accountability For Environmental Performance • To ensure that accountability for environmental performance is clearly defined at all levels of the organization. • Ensures involvement/interest of management and other personnel whose actions most directly affect environmental performance.

11. Environmental Audits • Level I - Self-Assessments • Level II - Compliance Audits & Unannounced Compliance Inspections • Level III - Management/Programmatic Audits • Level IV - Performance/Practices Review • Environmental Audits - External

12. Environmental Awareness Program & Environmental Guidance Document • Level I - video • Level II - provides specific environmental information primarily to line organizations • Environmental Guidance Document - on Intranet

13. Environmental Index • Scale 0 - 5 • Monitors and measures environmental performance • Corporate incentive goal - cash and stock compensation

14. 2003 Environmental GoalComponent 1 Oil Spills The following is not considered a spill against the Index: a) less than 5 gallons of oil spilled to land; b) any oil spill caused by an “Act of God” (storms, etc.); c) any oil spill caused by a “Third Party”; d) any oil spill caused by minor fault operations of electrical equipment; e) a spill (excluding human error or negligence) that occurs on CP&L property with controlled access and no potential involvement for waters of the state.

15. Observe / Report Potential Leaking Equipment

16. Observe / Report Potential Leaking Equipment Rusted Padmounts Padmounts Installed Below Grade

17. 2003 Environmental GoalComponent 2 Environmental Training PGN ED Environmental Coordinators will provide a targeted Environmental training program for each Distribution Region and the Transmission Department. New linemen will continue to receive Environmental Awareness Level I and Level II as part of the Craft Training Program. (One point is awarded for completion of the training for each Region and for Transmission.)

18. 2003 Environmental GoalComponent 3 Non-PCB Initiative PGN Ed will develop and implement a program to remove from service transformers less than 10 kVA in size with a “P” in the serial number. This program will be designed to remove all of these targeted transfomers by the end of 2006. A risk-based approach will be utilized to customize the program for each Distribution Region.The program and annual targets will be implemented in each region during 2002. The Transmission Dept. will test and/or replace station service transformers in Transmission substations, as outages permit, to ensure all are non-PCB.

19. 2003 Environmental GoalComponent 4 Self Assessment Peer Reviews This goal is intended to improve the environmental self-assessment program by implementing a peer review process. Each peer review assessment team will consist of the site environmental contact and the region/area environmental coordinator accompanied by peers from other regions and/or other departments.. At least one peer review will be conducted for Energy Services functions

20. PGN’s Environmental Policy Progress Energy, Inc. Environmental Policy Environmental responsibility is a core value of Progress Energy. Progress Energy is committed to excellence in its environmental practices and performance, and acknowledges its responsibility to be a good steward of the natural resources entrusted to its management. Environmental factors will be an integral part of planning, design, construction and operational decisions. Further, Progress Energy shall: • Comply with local, state and federal environmental laws and regulations; • Maintain an environmental management system, including the use of objectives and goals to measure, track, drive and continually improve performance; • Ensure proper management of all wastes and pollutants;

21. PGN’s Environmental Policy • Be proactive in addressing environmental issues and in finding innovative solutions to protect and improve the environment; • Be vigilant in efforts to prevent environmental degradation and be prepared to act effectively in the event of an environmental emergency; • Ensure that employees and contractors are aware of this policy through communication, training, performance expectations and management accountability; and • Communicate environmental impacts and performance to stakeholders and support effective community efforts in environmental education, protection and conservation.

22. AIR

23. Open Burning • Generally, open burning of refuse and wastes is prohibited. • State and regional regulatory agencies do allow certain types of open burning (such as for land clearing) • Must have prior approval from regulatory agencies.

24. WATER

25. Sedimentation & Erosion Control • NC • >1 acre of land disturbance must have an approved erosion control plan. • SC • <2 acres of land disturbance must have an erosion control plan submitted. • >2 acres must have approved plan. • certain T&D maintenance and construction activities are exempted subject to compliance with a Policy & Procedures manual filed with SC Public Service Commission.

26. Sedimentation & Erosion Control Land Disturbance

27. Sedimentation & Erosion Control Engineering Controls

28. Sedimentation & Erosion Control Silt Fence

29. Sedimentation & Erosion Control Temporary Gravel Construction Entrance / Exit

30. Wetlands • Hydrology + Soil + Vegetation • Dredging, ditching, filling, operation of heavy equipment, and the construction of roads or power lines which may impact rivers, lakes, streams, wetlands, and estuarine areas are regulated. • Permits - Nationwide, Individual • If wetlands are avoided, no permit is required.

31. Hydrology Water within 12 inches of surface

32. Hydric Soil Note color change at about 6 inches

33. Hydrophytic Vegetation Sphagnum Moss Pitcher Plant Creeping Blueberry

34. WetlandsWhy are they important? • Improve water quality - filter • Enhance water quantity - act as sponge • Provide habitat for fish and wildlife Transmission Line ROW

35. River Basin Riparian Rules • Neuse River Basin • Tar-Pamlico River Basin • Protected zones • Zone 1 - a 30’ wide area measured perpendicular to the stream • Zone 2 - a 20’ wide area starting at the edge of Zone 1 and measured perpendicular to the stream • Special 10’ zone adjacent to the stream • No structures (poles) allowed • Special vegetation management required

36. River Basin Riparian Rules • Underground and Overhead activities in Zone 2 require no special measures (parallel to stream) • Overhead activities in Zone 1 • for ROW width of <150 ft., follow Best Management Practices (BMP) • for ROW width of >150 ft., plans must be approved by State • Underground activities in Zone 1 (crossing or parallel) • for ROW width of <40 ft., follow BMP • for ROW width of >40 ft., plans must be approved by State

37. PROTECTING NATURAL RESOURCES

38. Endangered & Threatened Species Red-Cockaded Woodpecker Bald Eagle

39. Endangered & Threatened Species Cooley’s Meadowrue (endangered) Michaux’s Sumac (endangered)

40. Endangered SpeciesCase Study • On June 14, 1999 PGN employees changed out a pole adjacent to a Red-Cockaded Woodpecker nesting tree while replacing lighting for a college parking lot. • An unidentified observer called US Fish & Wildlife to complain that PGN activities were interfering with the feeding of Red-Cockaded Woodpecker fledglings by an adult bird. • PGN employees were unaware of the endangered species site or the complaint to US Fish & Wildlife.

41. Endangered SpeciesCase Study • A US Fish & Wildlife employee inspected the nesting site the next day in response to the complaint. • The inspector requested that PGN delay activities at the pole adjacent to the active nest until the fledglings matured (approximately 8 days). • The inspector stated that other PGN work in the area would not disturb the red-cockaded woodpeckers.

42. Light Pole & Active Nest

43. Close Up of Nest Cavity

44. The Nest Tree was Marked With the Sign and Tag Below

45. Adult Bird Feeding Fledglings

46. Lessons Learned • This tree was marked on the opposite side of the nest cavity. • If the wildlife agency is contacted and provided the tag # of the nest site or other information on the location, they will advise on allowable work activities. • Endangered Species can be found in Urban Areas.

47. Lessons Learned • Regulatory agencies must investigate complaints. • Don’t rely on the customer to advise you of endangered species activities. • Customer knew about the nest but failed to inform PGN personnel. • Contact your Environmental Coordinator if you encounter or suspect endangered species activity at a work site.

48. Endangered Plant Sign

49. Migratory Birds • 3 species not protected • pigeon • starling • english sparrow. • Permits are required to: • relocate active nests. • remove inactive nests.

50. Pesticides/Herbicides • General Use Pesticides • Restricted Use Pesticides • NC - have a valid Public Operators license or work under the supervision of an employee with a valid license. • Follow all label directions. • Store pesticides properly.