(Part 1 of EPA Carbon Dioxide Rules discussion)

In recent Member Advisory Committee (MAC) posts, we discussed the increasing role of natural gas in our electricity generation resource mix. We discussed that we think it is likely that natural gas will continue to increase from a 10 percent share in 2005 to at least a 40 percent share in 2030. As a result, a second interstate natural gas pipeline is planned from Pennsylvania to North Carolina. If natural gas prices were to stabilize at the lower end of its expected price range, we think that the 40 pecent share could possibly be much higher. This transition to natural gas in North Carolina is largely independent of new EPA rules on carbon dioxide.

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