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NCNG Shareholders Approve Acquisition

NCNG Shareholders Approve Acquisition

Shareholders of North Carolina Natural Gas Corp. (NCNG) approved the company's acquisition by Raleigh, NC-based Carolina Power & Light. The companies are awaiting approval by the North Carolina Utilities Commission and the South Carolina Public Service Commission. CP&L anticipates commission approval and completion of the acquisition in July.

More than 97% of the NCNG shares represented voted in favor of the acquisition. About 70% of the total shares were voted.

CP&L announced Nov. 11, 1998, that it would acquire NCNG for $354 million in company stock, as part of CP&L's plan to become a total energy provider for its customers (See Daily GPI Nov. 12, 1998). NCNG distributes gas to 178,000 customers in eastern and central North Carolina. CP&L provides electricity and energy services to 1.2 million customers in the Carolinas.

The merger is intended to move CP&L along on its goal of becoming a one-stop energy shop and large regional energy company. "We have plans for significant additions of gas-fired power plants over the next 10 years to meet our customers' needs. Access to a competitively priced gas supply is integral to our long-term strategy," said CP&L CEO William Cavanaugh III at the time the deal was announced.

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