[Federal Register Volume 67, Number 183 (Friday, September 20, 2002)]
[Notices]
[Pages 59321-59322]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-23885]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 35-27568]


Filings Under the Public Utility Holding Company Act of 1935, as 
Amended

September 13, 2002.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated under the Act. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendment(s) is/are available for public 
inspection through the Commission's Branch of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by October 8, 2002, to the Secretary, Securities and Exchange 
Commission, Washington, DC 20549-0609, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in the case of an attorney at law, 
by certificate) should be filed with the request. Any request for 
hearing should identify specifically the issues of facts or law that 
are disputed. A person who so requests will be notified of any hearing, 
if ordered, and will receive a copy of any notice or order issued in 
the matter. After October 8, 2002, the application(s) and/or 
declaration(s), as filed or as amended, may be granted and/or permitted 
to become effective.

Progress Energy, Inc. et al. (70-9659)

    Progress Energy, Inc. (``Progress Energy''), a registered holding 
company, and its indirect wholly-owned nonutility subsidiary, Progress 
Ventures, Inc. (``Progress Ventures'') (together, ``Applicants''), both 
of 410 South Wilmington Street, Raleigh, NC 27602, have filed a post-
effective amendment to their application-declaration in this filing 
under sections 9(a) and 10 of the Act and rule 54 under the Act.
    Progress Energy owns, directly or indirectly, all of the issued and 
outstanding common stock of three public-utility subsidiaries: Carolina 
Power & Light Company (``CP&L''), which generates, transmits, purchases 
and sells electricity in parts of North Carolina and South Carolina; 
Florida Power Corporation (``Florida Power''), which generates, 
transmits, purchases and sells electricity in parts of Florida; and 
North Carolina Natural Gas Corporation (``NCNG''), which distributes 
gas at retail in parts of North Carolina. Collectively, CP&L, Florida 
Power and NCNG are referred to as the ``Utility Subsidiaries.'' 
Together, the Utility Subsidiaries provide electric service and natural 
gas or gas transportation service to approximately 2.9 million 
wholesale and retail customers in parts of North Carolina, South 
Carolina and Florida. Progress Ventures is an intermediate nonutility 
holding company that holds interests in several ``exempt wholesale 
generators'' (``EWGs''), as defined in section 32 of the Act, and 
energy-related companies within the meaning of rule 58 that are engaged 
in synthetic fuels production.

[[Page 59322]]

    By order dated December 12, 2000, in this filing (``December 2000 
Order''),\1\ the Commission authorized Progress Energy, the Utility 
Subsidiaries and Progress Energy's direct and indirect nonutility 
subsidiaries, among other things, to engage in a program of external 
and intrasystem financing and to organize and acquire the equity 
securities of specified types of new subsidiaries through September 30, 
2003 (''Authorization Period''). Among other specific authorization 
granted by the December 2000 Order, the Commission authorized Progress 
Energy, through its nonutility subsidiaries, to invest up to $500 
million (''Investment Limitation'') in connection with the acquisition 
or construction of certain types of nonutility energy-related assets in 
the United States that are incidental to their energy marketing 
activities (''Energy-Related Assets'') or in the equity securities of 
existing or new companies substantially all of whose physical 
properties consist or will consist of Energy-Related Assets.\2\
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    \1\ See Progress Energy, Inc. et al., Holding Co. Act Release 
No. 27297. The December 2000 order was modified by orders dated 
September 20, 2001 and March 15, 2002, Holding Co. Act Release Nos. 
27440 and 27500, respectively.
    \2\ Energy-Related Assets are defined under the December 2000 
Order to include natural gas production, gathering, processing, 
storage and transportation facilities and equipment, liquid oil 
reserves and storage facilities, and associated facilities.
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    Applicants state that Progress Ventures entered into a letter of 
intent with Westchester Gas Company, a nonassociate company, to acquire 
approximately 215 producing gas wells, 52 miles of intrastate pipeline 
and 170 miles of gas gathering lines located in Texas and Louisiana. 
The transaction closed on April 29, 2002. Progress Ventures paid a 
total consideration of $148 million, which includes $128 million in 
Progress Energy common stock and $20 million in cash.
    Applicants now request a supplemental order of the Commission to 
increase the Investment Limitation from $500 million to $1 billion. 
Progress Energy, through Progress Ventures, states that it is actively 
considering several other investments in Energy-Related Assets similar 
to the Westchester Gas assets. Applicants state that investment in 
Energy-Related Assets represent an important component of Progress 
Ventures' overall strategy to diversify its portfolio of assets and 
earnings. In addition, Applicants state investments in Energy-Related 
Assets are intended to provide a fuel hedge for Progress Ventures' 
merchant generation plants.\3\
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    \3\ Progress Ventures states that it currently has approximately 
3,100 MW of gas and oil fired merchant generation in operation or 
under construction and may expand its merchant generation portfolio 
by another 2,800 MW over the next few years through acquisitions or 
new installations.
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    Applicants further state that, although Progress Ventures has not 
identified any additional investments in Energy-Related Assets at this 
time, its current business plan contemplates additional investments of 
this type that would, in the aggregate, exceed the remaining authorized 
amount under the Investment Limitation (approximately $350 million 
following the Westchester Gas transaction). Applicants assert that the 
proposed increase is reasonable and would represent a prudent use of 
capital for a company the size of Progress Energy.
    All other terms, conditions and limitations contained in the 
December 2000 Order, as modified by the September 20, 2001 and March 
15, 2002 orders, shall remain the same.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 02-23885 Filed 9-19-02; 8:45 am]
BILLING CODE 8010-01-P