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Gas Pains for Customers, Taxpayers

RALEIGH — The secondary deal behind the purchase of North Carolina Natural Gas by Piedmont Natural Gas Co. could eventually cause customers’ rates to rise and diminish already faint hope that taxpayer-funded bond money will be repaid. Piedmont’s $417.5 million deal to buy NCNG from Progress Energy Inc. was accompanied by an agreement to also take on 50 percent of Eastern North Carolina Natural Gas. An expected future merger of ENCNG into Piedmont could mean the ability to recover bond funds gets lost, and ENCNG's operating losses may affect all of Piedmont's customers.

Paul Chesser
News

Natural Gas Efforts Got Political Push

RALEIGH — In 1998 voters approved, by a 51 percent to 49 percent ratio, $200 million in bonds to extend natural-gas pipelines to 22 unserved counties in the state. However, the weight of State Senate leader Marc Basnight’s influence apparently enabled political allies in eastern North Carolina to manage $188.3 million of the available funds. None of the money is likely to be paid back because the bond legislation doesn’t require it, and because the pipeline project isn’t expected to be economically feasible for decades, if ever.

Paul Chesser
News

Natural Gas Project Plays Role in Allegations

RALEIGH — In his pursuit to build ethanol plants in eastern North Carolina, DFI Group President William Horton says he unwittingly got on the wrong side of the most powerful politician in the state. Economic developers’ enthusiasm over Horton’s promise to bring jobs and a market for locally grown farm products was tempered by his deals with outsiders to deliver natural gas to his proposed plants. Horton attempted to work with South Carolina gas company SCANA Corporation and Texas-based El Paso Merchant Energy Corp. while Senate President Pro Tem Marc Basnight promoted a separate enterprise to get up to $200 million in taxpayer-backed bonds to build a pipeline in the east.

Paul Chesser

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