Gaining the final regulatory approval necessary, Piedmont Natural Gas said the Securities and Exchange Commission (SEC) approved its requested exemption under the Public Utility Holding Company Act in connection with the pending purchase of North Carolina Natural Gas Corp. (NCNG) and 50% of Eastern North Carolina Natural Gas (ENCNG) from Progress Energy, Inc.

With the ruling in hand, Charlotte, NC-based Piedmont said it expects the transaction to close on September 30.

In October 2002, Piedmont Natural Gas had announced its plans to purchase NCNG for $417.5 million (see Daily GPI, Oct. 18, 2002). NCNG serves approximately 178,000 natural gas customers in eastern and southern North Carolina, including approximately 56,000 customers served by municipalities that are wholesale customers of NCNG. The purchase of NCNG will increase Piedmont’s number of customers served to more than 918,000 in North Carolina, South Carolina and Tennessee.

Piedmont is also purchasing Progress Energy’s equity interest in ENCNG for $7.5 million. ENCNG is a joint venture between Progress Energy and Albemarle Pamlico Economic Development Corp., which brings natural gas service to 14 counties in eastern North Carolina.

Earlier in October 2002, Piedmont completed its purchase of North Carolina Gas Service (NCGS), the North Carolina gas distribution division of NUI Corp. (see Daily GPI, Oct. 2, 2002). NCGS serves customers in Rockingham and Stokes counties, contiguous to Piedmont’s existing service territory.

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