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 RALEIGH, N.C., Aug. 27 /PRNewswire/ -- Carolina Power & Light Co. (CP&L) (NYSE: CPL) and the North Carolina Electric Membership Corporation (NCEMC) have reached agreement on a long-term contract that will govern electric power supplies and coordination between the two organizations. Final agreement is dependent upon approval by the Federal Energy Regulatory Commission (FERC) and the Rural Electrification Administration (REA).
 NCEMC is the power supply arm of Carolina Electric Cooperatives, the network of electric cooperative organizations in North Carolina.
 In a joint statement, CP&L Chairman and Chief Executive Officer Sherwood H. Smith Jr. and Carolina Electric Cooperatives Executive Vice President Wayne D. Keller said the agreement marks a new era between the two organizations. The agreement will enable the two companies to meet the electric power requirements of their customers better and further support economic development and the creation of new jobs in North Carolina.
 One result of this agreement is that NCEMC and CP&L have settled cases that were pending before FERC. Specifically, NCEMC will withdraw its competing application for an operating license for CP&L's Walters Hydroelectric Plant in western North Carolina. In addition, NCEMC will withdraw its objections before FERC to CP&L's contract for the purchase of 400 megawatts of electricity from Duke Power Co. (NYSE: DUK).
 Under the terms of the agreement, NCEMC may gradually assume full responsibility, subject to certain limitations, for meeting the electricity needs of its members. The agreement allows NCEMC to use the CP&L transmission system for transferring power from its own resources and also to make even more efficient use of its load management program. NCEMC agreed to give CP&L notice before building its own generating facilities or before choosing another power supplier.
 NCEMC supplies wholesale power to 27 rural electric cooperatives serving more than 1.6 million North Carolinians. Seventeen of these 27 cooperatives serve assigned territories dispersed throughout the territory assigned to CP&L. CP&L serves approximately 1 million customers in a 30,000-square-mile service area in central and eastern North Carolina, an area around Asheville in western North Carolina and the northeastern portion of South Carolina.
 -0- 8/27/93
 /CONTACT: Jay Johnson or Jane Pritchard of Carolina Electric Cooperatives, 919-872-0800 or 1-800-662-8835, or Wade Pridgen or Kyle Hampton of CP&L, 919-546-6189/

CO: North Carolina Electric Membership Corporation; Carolina Power and
 Light Co.; Duke Power Co. ST: North Carolina IN: UTI SU:

CM -- CH006 -- 6704 08/27/93 15:15 EDT
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Publication:PR Newswire
Date:Aug 27, 1993

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