20030147 Ver 2_Approval Letter_20080211

~QF WArF9o Michael F. Easley, Governor
~~ ~i William G. Ross Jr., Secretary
~ ~ North Carolina Department of Environment and Natural Resources
p ~ Coleen H. Sullins, Director
Division of Water Quality
February 11, 2008
Mr. Charles Gates, Vice President -Fossil Generation
Progress Energy Carolinas, Inc.
410 S. Wilmington Street
Mailcode: PEB 7A1
Raleigh, NC 27601
Re: Yadkin-Pee Dee Project for Tillery and Blewett Falls Reservoirs,
Rockingham, Stanly, Anson, Richmond and Montgomery Counties
DWQ #2003-0147, Version 2.0; Federal Energy Regulatory Commission
Project Number 2206
APPROVAL of 401 Water Quality Certification
Dear Mr. Gates:
Attached hereto is a copy of Certification No. 3730 issued to Progress Energy Carolinas, Inc.
dated February 11, 2008. In addition, you should get any other federal, state or local permits
before you go ahead with your project including (but not limited to) Solid Waste, Sediment and
Erosion Control, Stormwater, Dam Safety, Non-discharge and Water Supply Watershed
regulations.
If we can be of further assistance, do not hesitate to contact us.
Sincerely,
~~ w
~~ ~;
Coleen H. Su ins
C S/j rd
Attachments: Certificate of Completion
cc: Mike Lawyer, DWQ Fayetteville Regional Office
Rob Krebs, DWQ Mooresville Regional Office
File Copy
Central Files
Mailing list from Public Hearing
Tom Reeder, DWQ
401 Oversight/Express Review Permitting Unit
1650 Mail Service Center, Raleigh, North Carolina 27699-1650 N'o~ ethCarolina
2321 Crabtree Boulevard, Suite 250, Raleigh, North Carolina 27604 ~Clturlllh~
Phone: [phone] /FAX [phone] /Internet: http://h2o.enr.state.nc.us/ncwctlands
An Equal Opportunity/Affirmative Action Employer - 50% Recycled110% Post Consumer Paper

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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Honorable Gene McLaurin, Mayor, City of Rockingham
Gerrit Jobsis, American Rivers, Southeast Division
Heather Preston, Water Quality Division, South Carolina Bureau of Water
Adam Rigsbee, Restoration Systems
Steve Reed, NC Division of Water Resources
Gene Ellis, Alcoa Power Generating Inc., Yadkin Division
Ms. Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission
Filename: Progress Energy 401 version 1.5

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
3 of 36
NORTH CAROLINA 401 WATER QUALITY CERTIFICATION
THIS CERTIFICATION is issued in conformity with the requirements of Section 401 Public Laws
92-500 and 95-217 of the United States and subject to the North Carolina Division of Water
Quality (DWQ) Regulations in 15 NCAC 2H, Section .0500 to Progress Energy Carolinas, Inc. to
continue the operation of hydropower dams at Tillery and Blewett Falls Reservoirs in
Rockingham, Stanly, Anson, Richmond and Montgomery Counties, North Carolina, pursuant to
an application filed on the 11th day of May of 2007, the Comprehensive Settlement Agreement
dated June 29, 2007 and in additional correspondence received December 13, 2007.
The application and supporting documentation provide adequate assurance that the proposed
work will not result in a violation of applicable Water Quality Standards and discharge
guidelines. Therefore, the State of North Carolina certifies that this activity will not violate the
applicable portions of Sections 301, 302, 303, 306, 307 of PL 92-500 and PL 95-217 if
conducted in accordance with the application, the supporting documentation, and conditions
hereinafter set forth.
This approval is only valid for the purpose and design submitted in the application materials and
as described in the Public Notice. If the project is changed, a new application for a new
Certification is required. If the property is sold, the new owner must be given a copy of the
Certification and approval letter and is thereby responsible for complying with all conditions of
this Certification. Any new owner must notify the Division and request the Certification be
issued in their name. Should wetland or stream fill be requested in the future, additional
compensatory mitigation may be required as described in 15A NCAC 2H .0506 (h) (6) and (7).
If any plan revisions from the approved site plan result in a change in stream or wetland impact
or an increase in impervious surfaces, the DWQ shall be notified in writing and a new
application for 401 Certification may be required. For this approval to be valid, compliance with
the conditions listed below is required.
Conditions of Certification:
1. No waste, spoil, solids, or fill of any kind shall occur in wetlands, waters, or riparian
areas beyond the footprint of the impacts depicted in the Certification. All construction
activities, including the design, installation, operation, and maintenance of sediment and
erosion control Best Management Practices, shall be performed so that no violations of
state water quality standards, statutes, or rules occur;
2. Sediment and erosion control measures shall not be placed in wetlands or waters to the
maximum extent practicable. If placement of sediment and erosion control devices in
wetlands and waters is unavoidable, they shall be removed and the natural grade
restored within six months of the date that the Division of Land Resources has released
the project;
3. The Applicant shall identify and report in writing existing and proposed consumptive uses
to NCDWQ and the N.C. Division of Water Resources (NCDWR). The Applicant shall
report the existing or projected (as appropriate) average consumptive withdrawal and
maximum capacity for each withdrawal. The applicant shall report existing consumptive
uses to NCDWQ and NCDWR within 60 days of the acceptance of the License and shall

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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report proposed new or expanded consumptive uses to NCDWQ and NCDWR within 30
days of receiving a request for the proposed new or expanded withdrawal and before
submitting any requests to FERC.
4. This Certification does not grant or affirm any property right, license or privilege in any
waters or any right of use in any waters. This Certification does not authorize any person
to interfere with the riparian rights, littoral rights or water use rights of any other person,
and this Certification does not create any prescriptive right or any right of priority regarding
any usage of water. No person shall interpose this Certification as a defense in any action
respecting the determination of riparian or littoral rights or other water use rights. No
consumptive user is deemed by virtue of this Certification to possess any prescriptive or
other right of priority with respect to any other consumptive user regardless of the quantity
of the withdrawal or the date on which the withdrawal was initiated or expanded. This
Certification issues on the express understanding of DENR that, pursuant to Federal
Power Act section 27, 16 U.S.C. § 821, the License does not establish or determine a
proprietary right to any use of water. It establishes the nature of the use to which a
proprietary right may be put under the Federal Power Act.
Continuing Compliance:
5. Progress Energy Carolinas, Inc. shall conduct its activities in a manner consistent with
State water quality standards (including any requirements resulting from compliance with
section 303(d) of the Clean Water Act) and any other appropriate requirements of State
law and federal law. If the Division determines that such standards or laws are not being
met (including the failure to sustain a designated or achieved use) or that State or
federal law is being violated, or that further conditions are necessary to assure
compliance, the Division may reevaluate and modify this Certification to include
conditions appropriate to assure compliance with such standards and requirements in
accordance with 15A NCAC 2H.0507(d). Before modifying the Certification, the Division
shall notify Progress Energy Carolinas, Inc.and the Federal Energy Regulatory
Commission, provide public notice in accordance with 15A NCAC 2H.0503 and provide
opportunity for public hearing in accordance with 15A NCAC 2H.0504. Any new or
revised conditions shall be provided to Progress Energy Carolinas, Inc.in writing, shall
be provided to the Federal Energy Regulatory Commission for reference in any Permit br
License issued by that agency and shall also become conditions of the FERC License
for the project. In addition, if the DO enhancement program as outlined in the
Relicensing Agreement does not result in meeting the DO or temperature water quality
standard, then this Condition shall be triggered to result in additional measures to meet
these standards.
Mitigation:
6. Compensatory mitigation shall be done as outlined in the Comprehensive Settlement
Agreement dated June 29, 2007 and as outlined below. DWQ shall be copied on the
property transfer, lease, and any related restrictive covenants for the property outlined in
the Comprehensive Settlement Agreement.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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Other Conditions
7. Aquatic Life Monitoring
Progress Energy shall conduct post-licensing monitoring of aquatic life below Tillery
Dam as outlined below. The purpose of the monitoring is to document the condition of
the aquatic community in the Pee Dee River from Tillery Dam to its confluence with the
Rocky River. In addition to the water quality monitoring as specified in the
Comprehensive Settlement Agreement dated June 29, 2007, the following biological
monitoring shall be required by Progress Energy Carolinas as outlined in DWQ's letter of
January 18, 2007 and Progress's response dated April 12, 2007. Progress Energy
Carolinas, Inc. shall submit a detailed monitoring plan including a specific monitoring
schedule with dates for written DWQ approval that addresses (at least) the following
items:
a. Location of monitoring -Two sites (TZ1 and TZ2) shall be used for this
monitoring with the exact monitoring location selected after site visit by DWQ
staff.
b. Frequency of monitoring - "Pre" and "Post" monitoring shall be conducted in
order to establish a baseline condition as well as determine any improvements in
that baseline condition as improvements in flow and dissolved oxygen (among
other improvements) occur with this project. "Pre" conditions shall be done
before flow and dissolved oxygen improvements are made to the dam's releases.
"Post" sampling shall be done every three (3) years for at least four (4) cycles
with written reports provided to DWQ on an annual basis for our written approval.
After the fourth cycle, DWQ and Progress Energy Carolinas, Inc. shall meet to
discuss the data collected in order to determine whether the monitoring needs to
continue for additional three-year cycles.
c. Type of monitoring -Monitoring shall be done for aquatic macrobenthos using
methodologies approved by the NC Division of Water Quality. The fish
community shall be sampled using methods similar to those used in the 2004
shallow water study to include tote barge electofishing, backpack electrofishing
and seining). In addition, the standard physical and chemical monitoring that is
routinely done during macrobenthos or fish sampling shall be conducted.
d. Timing of monitoring -Monitoring shall be done during the summer of each year
(July through August) and should be targeted within a three week window during
the annual sampling in order to reduce variability.
e. Success/recovery Criteria -
i. Aquatic macrobenthos -The success criteria for aquatic macrobenthos
shall be the standard NC DWQ qualitative rating system. Classification of
the community at least as "Good-Fair" shall be deemed successful for
aquatic macrobenthos.
ii. Fish -Success criteria for fish communities are less well developed at
this time. Therefore no strict success criteria are proposed for this
monitoring. However Progress Energy Carolinas shall report the fish
monitoring data in a format approved in writing by DWQ in order to
evaluate the response of the fish community to higher flows and higher
dissolved oxygen levels. If DWQ develops standard success criteria for
fish which are similar to the aquatic macrobenthos criteria, then this
Certification may be reopened to include those criteria in the future.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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Trigger date for Biological Criteria Evaluation - The success criteria for
macrobenthos shall be met by the end of 2020 unless DWQ agrees in writing that
conditions beyond the control of Progress Energy Carolinas (such as extended
drought or a chemical or sewage spill) make it impossible to meet this criteria. In
that case, DWQ shall specify in writing the alternate date for Progress Energy
Carolinas to meet this biological criteria.
8. Dissolved oxygen monitoring and improvement -Improvements to the dissolved oxygen
in the Yadkin River shall be done in compliance with the Comprehensive Settlement
Agreement. However, if dissolved oxygen levels are less than the applicable water
quality standard after those improvements, Progress Energy shall propose additional
measures to DWQ in order to meet that standard. Such measures as agreed upon in
writing by DWQ, shall be implemented by Progress Energy Carolinas at an agreed-upon
schedule.
9. Comprehensive Settlement Agreement -The Comprehensive Settlement Agreement
dated June 29, 2007 is hereby incorporated into this Certification by reference. If
Progress Energy Carolinas believes that any items of that Agreement are not pertinent
to water quality, then they shall so notify DWQ in writing for DWQ's written concurrence.
10. Weekend and holiday fluctuation of Blewett Falls Lake levels shall be limited to 2.0 feet
in order to provide access for recreational use unless the Low Inflow Protocol is in effect
or during maintenance activities. Alternatively, Progress Energy may propose to DWQ
to extend the boat ramps on Blewett Falls Lake to provide recreation access at a lower
lake elevation. If Progress Energy decides to pursue this approach, then additional
written DWQ approval is needed in order to satisfy this condition.
11. The Division shall be notified in writing within 24 hours of any deviations to the
Comprehensive Settlement Agreement proposed flow rates and lake level fluctuations.
Decreased flow shall be restored as soon as practical to the written satisfaction of DWQ.
12. DWQ shall be copied on the fish and eel passage schedule. Additional written approval
of DWQ is required once that plan is finalized with the US Fish and Wildlife Service and
NC Wildlife Resources Commission.
The following conditions are taken from the Comprehensive Settlement Agreement dated
June 29, 2007 and are hereby incorporated as conditions of this Certification.
I. Minimum Instream Flows and Other Stream Protection Measures
A. River Inflows from APGI's Yadkin Hydroelectric Project
Progress Energy's obligation to meet the minimum flow releases described herein is contingent
upon Progress Energy's Tillery Development receiving specified minimum flow releases from
Alcoa Power Generating Inc.'s Yadkin Hydroelectric Project. The following specified minimum
levels of inflow to Lake Tillery from Falls Dam are necessary for Progress Energy to meet its
minimum flow obligations:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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• February 1 to May 15 - 2,000 cfs as measured on an average daily basis;
• May 16 to May 31 - 1,500 cfs as measured on an average daily basis;
• June 1 to January 31 - 1,000 cfs as measured on an average daily basis.
B. Blewett Falls Plant
1. Minimum Flow Regime
From February 1 through May 15 of each year, the continuous minimum flow will be 2,400 cfs,
as measured at the existing USGS gage at Rockingham, to enhance spawning habitat in the
Pee Dee River downstream of the Blewett Falls Development. From May 16 through May 31 of
each year, a continuous minimum flow will be 1,800 cfs and for the remainder of the year, June
1 through January 31, the continuous minimum flow will be 1,200 cfs, all subject to allowable
variances described below. This Certification establishes a higher priority on the maintenance
of minimum flows than the maintenance of reservoir water levels. Therefore, infrequently,
events may require the prioritization of maintaining minimum flows over the reservoir water
levels identified in Section II of the Comprehensive Settlement Agreement.
2. Flow Adjustments to Enhance Fish Spawning
Progress Energy shall operate its Blewett Falls facility during certain times of the year in a
manner intended to enhance fish spawning conditions downstream of the Blewett Falls
Development as described and defined below. These time periods are referred to herein as
"flow adjustment operations" and they shall occur each year as either (a) one 14-day and one
10-day period or (b) five 5-day periods. In any event, these periods of flow adjustment to
enhance spawning will be characterized by the following:
• Flow adjustment operations shall occur between February 1 and May 15.
The specific time periods in each year will be decided upon by resource agencies,
Progress Energy, and Alcoa Power Generating Inc. (APGI) -collectively, the "Spawning
Flow Management Team". Other entities able to demonstrate relevant fisheries
expertise may participate in these discussions. If the option of one 14-day period and
one 10-day period is chosen, Progress Energy must be notified of the specific dates at
least 14 days prior to the start of each period. If the option of five 5-day periods is
chosen, Progress Energy must be notified of the entire schedule at least 10 days in
advance of the start of the first of the 5-day periods.
• Periods of flow adjustment operations shall be chosen by the Spawning Flow
Management Team based on interpretation of relevant factors that might include, but are
not limited to, water temperature and weather data, projected inflow conditions, and
observations of fish spawning behavior. If the option of five 5-day periods is
implemented, two of these periods must occur between April 15 and May 15.
• Because of concerns regarding the predictability of inflows over longer periods of time,
the individual flow adjustment periods must be separated by at least one week, unless
otherwise approved by Progress Energy.
• If a period of unusually low inflow to Blewett Falls Reservoir or a Low Inflow Protocol
("LIP") period occurs during a previously selected flow adjustment operation period, the

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Progress Energy Carolinas, Inc.
February 11, 2008
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release of the required minimum continuous flow (or in the case of an LIP event, the LIP
flow) will still be considered a flow adjustment period.
If a period of higher inflow to Blewett Falls Reservoir occurs during a selected flow
adjustment operation period, wherein there is a continuous operation of all commercially
available turbines in the Blewett Falls powerhouse, possibly accompanied by additional
spillage over the dam crest, this period will count as a flow adjustment period so long as
any interruptions in the continuous operation of all commercially available turbines are
infrequent and unscheduled.
• If a period of intermediate inflow to the Blewett Falls Reservoir occurs (flows in the range
of 3,000 to 6,000 cfs), Progress Energy will manage releases at the Blewett Falls
powerhouse as follows:
(1) If unregulated tributary inflow to the Pee Dee River above Blewett Falls
(particularly from the Rocky River) changes significantly during a designated flow
adjustment operation period, Progress Energy can respond to these changes in flow
as needed to manage reservoir operations by increasing or reducing the number of
turbines in operation without consideration to the limits described below in (2)
through (5). This would still be considered a flow adjustment period.
(2) Except as identified in (1) above, the upramp time of each turbine at Blewett
Falls will be no less than 30 minutes from off-line to full gate.
(3) Except as identified in (1) above, the downramp time of each turbine at Blewett
Falls from full gate to off-line will be in accordance with the following guidelines:
i. After the first operating unit is taken off-line, the second operating unit to
be taken off-line shall not be taken off-line for at least two hours after the first
operating unit was taken off-line.
ii. After the second operating unit is taken off-line, the third operating unit to
be taken off-line shall not be taken off-line for at least four hours after the
second operating unit was taken off-line.
iii. After the third operating unit is taken off-line, the fourth operating unit to
be taken off-line shall not be taken off-line for at least six hours after the third
operating unit was taken off-line.
(4) On the first day of any flow adjustment operation period, Blewett Falls must
commence such related operations no later than 8 a.m. to still be considered as a full
day of flow adjustment operation.
(5) On the last day of any flow adjustment operation period, Blewett Falls units can
begin to be taken off-line no earlier than 4 p.m. By example, the schedule below
would be considered a full day of a designated flow adjustment operation period if it
were the last day of such period:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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(i) 4 PM -- go from 5 units to 4 units
(ii) 6 PM -- go from 4 units to 3 units
(iii) 10 PM -- go from 3 units to 2 units
(6) If the five 5-day flow adjustment operation periods are chosen in any given year,
each period shall begin on a Monday morning and end on a Friday evening.
(7) If the one 14-day and one 10-day period is chosen in any given year, the actual
dates shall be such as to minimize the number of weekend days within the 14-day
period. For the 10-day period, there will be no more than 2 weekend days.
All decisions to be made by the Spawning Flow Management Team as outlined in this section
shall require consensus as specifically defined as follows in the Comprehensive Settlement
Agreement:
A resolution based on consensus shall have either the unanimous support of all Parties,
or at least no opposition from any Party. If a Party has no objection to the resolution but
does not specifically endorse it, the lack of opposition shall be considered to be support
of the resolution.
Progress Energy will prepare an annual report of the operations of the Blewett Falls
Development during the Flow Adjustment Operation periods consisting of meeting notes, flow
records from streamflow gages, and plant operations. The operations of the Tillery Plant during
the Flow Adjustment Period will be coordinated by Progress Energy and subject to dispatch by
Progress Energy in accordance with its system needs.
The first year of implementation of the Flow Adjustment Operations shall be the calendar year
following the year of license issuance. After five years of Flow Adjustment Operations, the
Spawning Flow Management Team shall evaluate the Flow Adjustment Operations and develop
recommended changes for consideration by the resource agencies and Progress Energy. Re-
evaluation at 5-year intervals may occur if determined necessary and if agreed to by the
Spawning Flow Management Team.
3. Minimum Flow Variance
The minimum flow regime will allow a variance for two 5-hour periods each year to reduce the
minimum flow release to just leakage flow for testing black-start capability of turbines at the
Blewett Falls powerhouse. These black-start tests will be restricted to occur only in October,
November, December, or January, when environmental effects of low flow fora 5-hour period
are expected to be minimal. Further, these tests shall not be conducted in October if a Stage
or greater Low Inflow Protocol event has been triggered.
In an effort to properly manage water during unusually low flow conditions, Progress Energy
shall participate in a Low Inflow Protocol (LIP) (see Section I.D). Minimum instream flows may
be reduced during these LIP periods in order to conserve water resources during periods of low
flow in the watershed.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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4. Minimum Flow Compliance and Monitoring
Progress Energy will maintain to the standards established by the USGS a continuous flow
monitoring gage at the site of the current Rockingham USGS gage and will provide flow data to
the public, via the Internet or other appropriate means, to be updated no less than every two (2)
hours. For the first ten (10) years after issuance of the New License, Progress Energy will
contract with the USGS for operation and maintenance of this gage. Annual reporting of flows
will be in accordance with normal USGS practices and procedures. Compliance with minimum
flows for the Blewett Falls facility will be measured at the Rockingham gage.
Progress Energy will maintain to the standards established by the USGS a continuous flow
monitoring gage at the site of the current Rocky River gage near the mouth of the Rocky River.
Progress Energy currently pays a portion of the cost of the maintenance of this gage. If for any
reason the funding of this gage by others is lost, then Progress Energy will be responsible for
the additional funding necessary to maintain the gage. However, the Applicant may elect to
discontinue the use of USGS as the provider of this service after the first ten (10) years
following the issuance of the new license.
Minimum releases requir-ed at the Blewett Falls Development shall be presumed to have been
met if flows recorded at the streamflow gage at Rockingham are within 5% of the required
minimum release, so long as the "true-up" procedure described below is implemented.
Progress Energy will prepare an annual report documenting its compliance with minimum
releases including any "true-up" periods. To the extent practicable, Progress Energy will "true-
up" minimum flows monthly; that is, flows falling below the minimum shall be offset by flows
greater than the minimum (during minimum release periods) in the same month for a reasonably
equivalent amount of time. If any instances of recorded lower-than-required minimum flows are
not properly compensated for in the month they occur, such compensation will occur as soon as
practicable in the next month, but no later than the 15th day of that month. Progress Energy's
annual report shall indicate all periods where a "true-up" was required and show how and when
the actual "true-up" occurred. The annual report shall be filed with the NCDENR - DWQ and
DWR, by March 31 of the following year. If any of the resource agencies have significant
concerns or comments on the report, a consultation meeting will be convened to discuss these
concerns. Such meeting shall be held within 45 days of the issuance of the report.
There shall be no "gaming" of the minimum flow variance allowed under this compliance
standard; that is, under no circumstance shall Progress Energy intentionally or willfully use the
existence of the variance and true-up mechanism to deliberately manipulate minimum flow
releases to coincide with demand for electricity. For example, a consistent record of lower-than-
required minimum flows during periods of high electrical demand shall be considered "gaming."
Certain LIP events require the release of 925 cfs as the "critical flow." The Applicant shall
endeavor to maintain this target flow; however, compliance will have been achieved if the flow
recorded during this event is between 900 and 950 cfs at the Rockingham gage.
C. Tillery Plant
1. Minimum Flow Regime
Progress Energy will provide a continuous year-round minimum flow at the Tillery Development
of 330 cfs except for a period of eight continuous weeks commencing as early as March 15, but

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Progress Energy Carolinas, Inc.
February 11, 2008
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no later than March 22, when a minimum flow of 725 cfs shall be provided to enhance American
shad spawning. This release of 725 cfs will start in 2010, or at the first passage of American
shad above Blewett Falls Dam, whichever is later.
2. Temperature of Minimum Flow Releases
Flows released at the Tillery Development for the purpose of meeting minimum flow
requirements will be done in such a way as to avoid skimming high temperature surface water
from the uppermost surface of Lake Tillery if high temperature gradients are found to occur in
the upper six inches of the lake.
3. Minimum Flow Compliance and Monitoring
Within 12 months of the New License becoming Final and Non-Appealable, Progress Energy
will install and maintain to the standards established by the USGS a continuous flow monitoring
gage below the Tillery Development near the State Highway 731 Bridge and will provide flow
data to the public, via the Internet or other appropriate means, to be updated no less than every
two (2) hours. For the first ten (10) years after issuance of the New License, Progress Energy
will contract with the USGS for operation and maintenance of this gage. Annual reporting of
flows will be in accordance with normal USGS practices and procedures.
Minimum releases required at the Tillery Development are presumed to have been met if flows
recorded at the streamflow gage near the Highway 731 Bridge are within 5% of the required
minimum, as long as the "true-up" procedure described below is implemented. Progress Energy
will prepare an annual report documenting its compliance with minimum releases including any
"true-up" period. To the extent practicable, Progress Energy will "true-up" minimum flows
monthly; that is, flows falling below the minimum shall be offset by flows greater than the
minimum (during minimum release periods) in the same month and for a reasonably equivalent
amount of time. If any instances of recorded lower-than-required minimum flows are not
properly compensated for in the month they occur, such compensation will occur as soon as
practicable in the next month, but no later than the 15th day of that month. Progress Energy's
annual report shall indicate all periods where a "true-up" was required and show how and when
the actual "true-up" occurred.
4. Other Stream Protection Measures
Progress Energy has agreed to conserve for purposes of stream protection various plots of land
it owns along the Pee Dee River in the vicinity of the Project. Conservation is achieved through
either donation of lands to the State of North Carolina or through the placement of restrictive
covenants on riparian lands and within shoreline buffer zones. These measures are described
in detail in Section IV.
D. Low Inflow Protocol
Progress Energy agrees to comply with the requirements of the Low Inflow Protocol (LIP) dated
February 2007, which was developed as part of the relicensing process. The complete text of
the LIP is also attached as Appendix B for inclusion in the 401 Water Quality Certificate.

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Progress Energy Carolinas, Inc.
February 11, 2008
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E. Implementation Schedule
Minimum instream flows will be commenced within 60 days of the receipt of a New License from
FERC that is Final and Non-Appealable, assuming that APGI's new license has been issued
prior to or concurrent with Progress Energy's license and that APGI has commenced, and
continues, the releases specified in Section I.A.
II. Reservoir Water Levels
A. Blewett Falls Plant
When inflows to Blewett Falls Reservoir are less than approximately 7,400 cfs, Progress Energy
shall maintain ayear-round water level regime at Blewett Falls Lake that allows for fluctuations
of up to 6 ft, between elevation 172.1 and 178.1 ft, except for system emergencies and LIP.
When flashboards are down, an additional 2 ft of drawdown to elevation 170.1 ft is necessary to
safely replace the flashboards.
During the bass spawning season, April 15 to May 15, Progress Energy will limit water level
changes to 2 ft to enhance bass spawning except when additional reservoir storage is
necessary to meet minimum flow release obligations (minimum flow releases will have priority
over lake elevations) or if the flashboards fail. In either of the exceptions noted above, Progress
Energy will endeavor to return to normal operations as soon as reasonably practical.
B. Tillery Plant
1. Water Levels
Progress Energy will follow aseasonally-based lake level management schedule at Lake Tillery
during the term of the New License. From December 15 through March 1, lake level
fluctuations will be limited to 3 ft between 274.3 and 277.3, unless use of reservoir storage is
needed to meet demand for electricity. If storage is needed for electrical generation purposes
during this period, Progress Energy may use the storage available between elevations 272.3 ft
and 277.3 ft, resulting in a maximum fluctuation of 5 ft. When used for these power-related
purposes, Progress Energy will normally cycle the reservoir within these elevation limits on a
daily or multi-daily basis. Water fluctuations up to 8 ft may occur during system emergencies,
and potentially be greater during~LlP periods.
From April 15 to May 15, Progress Energy will limit lake level changes to 1.5 ft below the water
surface elevation of the reservoir as measured on April 15 for bass spawning (higher elevations
are acceptable).
During all other periods of the year (except flood flow conditions), Progress Energy will maintain
lake level fluctuations to generally within 2.5 ft of full pool (elevation 277.3 ft measured at Tillery
Dam) on weekdays, and generally 1.5 ft of full pool on weekends and holidays.
2. Maintenance Drawdowns
Once in every 5-year period, Progress Energy will schedule a maintenance drawdown of up to
15 ft to occur on Lake Tillery within the September 15 to December 15 timeframe. This

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
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drawdown will allow Progress Energy to perform routine periodic maintenance and gate testing
that cannot be accomplished when the lake level is higher.
3. Public Information on Water Levels
Progress Energy will add a projection of the expected daily water levels for the day on their
existing 800-899-4435 public messaging service. For the first five years of the New License,
Progress Energy will also provide an annual notice on November 15 alerting the public to the
drawdown limits that apply between December 15 and March 1.
4. Emergency or LIP Water Level Variance
In the case of an LIP event, Lake Tillery and the other larger reservoirs in the basin will be
called upon to use some of their storage to augment downstream flows in a coordinated
manner. Management of flows and water levels during LIP events are contained in the LIP
attached hereto as Appendix B.
C. Compliance Monitoring
Annual reports on lake level compliance will be submitted to the North Carolina Division of
Water Quality (NCDWQ) and will include hourly readings of lake levels recorded at the both the
Tillery and Blewett Falls dams.
D. Implementation Schedule
The new reservoir level management regime will be initiated within 120 days of the New License
becoming Final and Non-Appealable.
III Water Quality
A. Blewett Falls Plant
1. Tailwater Water Quality
Progress Energy shall meet dissolved oxygen standards by December 2011. The
implementation schedule includes completion of field testing of DO enhancement options by
December 2008, and completing successful implementation of the best suited DO enhancement
technology by December 2011.
2. Compliance Monitoring
Progress Energy will provide monitoring of water temperature and dissolved oxygen.
Temperature and DO monitoring will occur immediately below the end of the Blewett Falls
tailrace with equipment installed by the Applicant in accordance with protocols approved by
NCDWQ. Annual compliance reports will be prepared by Progress Energy and submitted to
NCDWQ and FERC by April 15th of the following year.

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Progress Energy Carolinas, Inc.
February 11, 2008
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B. Tillery Plant
1. Tailwater Water Quality
Progress Energy shall meet dissolved oxygen standards by December 2011. The
implementation schedule includes completion of field testing of various DO enhancement
options by December 2008, and completing successful implementation of the best suited DO
enhancement technology by December 2011.
2. Compliance Monitoring
Progress Energy will provide continuous monitoring of water temperature and dissolved oxygen
Temperature and DO monitoring will occur below the Tillery Plant with equipment installed by
the Applicant in accordance with protocols approved by NCDWQ. The final location of DO
monitoring near the Highway 731 Bridge will be determined based upon further testing of DO
enhancement technologies and resulting patterns of DO concentrations in the Tillery tailwater.
Annual compliance reports will be prepared by Progress Energy and submitted to NCDWQ and
FERC by April 15th of the following year.
C. Total Maximum Daily Load Processes
If, during the term of the new license, any Total Maximum Daily Load (TMDL) processes are
required for the Yadkin-Pee Dee River (or its tributaries) within the Project Boundary of the
Yadkin-Pee Dee Project or on the Pee Dee River immediately downstream of either Tillery
Reservoir or Blewett Falls Reservoir, the Applicant will participate in these processes.
Participation would be expected to include, for example, providing any existing water quality
sampling or flow release data and participating in relevant stakeholder technical teams.
IV. Additional Stream Protection Measures
For the purpose of providing additional protection to stream and riparian habitats within the river
corridor potentially affected by Project operations, Progress Energy will undertake certain
measures as follows:
(1) the donation to the State of North Carolina of certain parcels of undeveloped land
owned by Progress Energy bordering the Pee Dee River;
(2) the placement of restrictive covenants for conservation purposes on certain parcels of
undeveloped land owned by Progress Energy adjacent to Project-affected waters; and
(3) the leasing of certain lands owned by Progress Energy to the State of North Carolina for
the term of the new license.
Each of the measures referenced above are more fully described below.
A. Lands to Be Donated to the State of North Carolina
Within five years of the issuance of the New License for the Project that is Final and Non-
Appealable, Progress Energy will donate to the State of North Carolina various tracts of land it
owns along the Pee Dee River below Blewett Falls Dam on both the east and west river banks

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Progress Energy Carolinas, Inc.
February 11, 2008
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extending from Blewett Falls Dam to below the Highway 74 bridge and including lands adjacent
to the highly valued river shoals located below Highway 74. These lands also include the
Gabbro Slopes area above Highway 74 and valuable riparian and wetland complexes on the
East and West river banks. These lands to be donated, which have a total acreage of
approximately 1600 acres, are depicted in the attached Appendix C.
Within five years of the issuance of the New License for the Project that is Final and Non-
Appealable, Progress Energy will also donate to the State of North Carolina lands it presently
owns along the eastern bank of the Pee Dee River extending downstream from the Highway
731 bridge for approximately four (4) contiguous miles. These lands to be donated, which have
a total acreage of approximately 300 acres and will provide a protected riparian corridor along
the east shore of the Pee Dee River, are depicted in the attached Appendix C.
Until these lands are donated to the State of North Carolina, the Parties agree that interim land
management by the Applicant will use reasonable efforts to conform to the following forestry
management practices where timbering is scheduled:
(1) For loblolly pine plantations that are 30 or more years old, thin to approximately 30
trees/acres.
(2) For pine/hardwood mixed stands that are 30 or more years old, after consultation with
NCWRC, thin to approximately 30 trees/acre.
(3) For 15 to 30 year old stands of loblolly pine, thin to approximately 60 trees/acre.
(4) Reserve the ability to clear-cut parcels up to 25 acres in size where best management
practices would dictate (not including any environmentally significant areas) but only
after consultation with NCWRC and DWQ.
(5) Leave an undisturbed buffer of not less than 100 feet in width along the Pee Dee River
and along both sides of any streams.
(6) Predominantly hardwood stands will not be timbered.
The Applicant represents that it is responsible for providing reliable electric service to its
customers within North and South Carolina. To that end, from time to time the Applicant
constructs electrical transmission lines within its service area. The Applicant represents that
such lines are located only after consideration of many factors, including potential impacts to
homes, businesses, schools, roads, and other infrastructure; cultural and historic resources;
sensitive environmental features and natural areas; and other factors. Nothing in this 401
Certificatoin (1) is intended specifically to prohibit the Licensee from planning, designing, and
constructing a transmission or distribution line through, over or across lands described above by
this Certification or (2) shall obviate any duty to obtain all necessary regulatory, environmental,
or other approvals. The parties recognize that the rights, duties, obligations of this 401
Certification and the actions taken pursuant to this certificate (such as the preservation of lands
described herein) may be considered in any proceeding regarding a transmission or distribution
line.
Each party assumes responsibility for its own costs associated with deed transfers described
herein.

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Progress Energy Carolinas, Inc.
February 11, 2008
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B. Lands Subject to a Restrictive Covenant
Progress Energy will place a restrictive covenant for conservation purposes on certain lands it
owns known as the "Diggs Tract" along the Pee Dee River below the Highway 74 bridge, which
is depicted in the attached Appendix D. Within twelve (12) months of the issuance of a New
License for the Project that is Final and Non-Appealable, Progress Energy will execute, deliver
and cause to be recorded covenants and restrictions establishing a buffer zone adjacent to the
river that would be at least 100-ft-wide along the entire tract. Within the buffer zone, activities to
be allowed would be limited to such activities as selective clearing and controlled burning in
accordance with a forest management plan approved by NCDENR, limited unimproved foot
trails not to exceed 4 ft in width and a single boat access point to the river. Foot trails generally
parallel to the river shall be no closer to the river than 50 feet. There shall be no more than
three trails perpendicular to the river within the buffer zone. Except to accommodate the above
allowable activities, the following shall be prohibited within the buffer zone: filling, draining,
flooding, dredging, impounding, clearing, burning, cutting or destroying vegetation, cultivating,
excavating, erecting, overnight camping, constructing, releasing wastes, or otherwise doing any
work within the buffer zone, introducing exotic species into the buffer zone (except biological
controls pre-approved by NC DWQ); and from changing the grade or elevation, impairing the
flow or circulation of waters, reducing the reach of waters, and any other discharge or activity
requiring a permit under clean water or water pollution control laws and regulations, as
amended. The following are expressly excepted from the prohibited activities: (a) cumulatively
very small impacts associated with hunting, fishing, and similar recreational or educational
activity, consistent with the continuing natural condition of the property; (b) removal or trimming
of vegetation hazardous to persons or property; and (c) restoration or mitigation required under
law. No permanent structures would be allowed within the 100-ft buffer zone.
Within twenty four (24) months of the issuance of the New License that is Final and Non-
Appealable, Progress Energy will also place a restrictive covenant for conservation purposes on
Project lands it owns in the Grassy Islands area located at the upper reaches of Blewett Falls
Lake, which are depicted in the attached Appendix D. This area contains large bottomland
hardwood forests and an oxbow swamp with a large stand of Black Gum. These are highly
valued wetland resources of regional significance. The restrictive covenant would be defined to
permit only certain non-consumptive uses of the lands, including fishing, hunting, hiking, bird-
watching, and other low-density recreation activities. Prohibited activities will be identical to
those described above for the Diggs Tract.
Within twenty four (24) months of the issuance of the New License that is Final and Non-
Appealable, Progress Energy will place a restrictive covenant for conservation purposes on
certain lands it owns near the mouth of the Uwharrie River, which are depicted in the attached
Appendix D. The lands to be protected by a restrictive covenant include (1) those extending
from Dutchman's Creek downstream to the tip of the peninsula on the south side of the mouth of
the Uwharrie River and (2) those at the upper end of the "bay," created by the above peninsula,
that are classified as of December 2006 as Environmental/Natural Areas in the Shoreline
Management Plan, stopping at the first tract of land classified as Impact Minimization Zone.
The restrictive covenant will allow only certain non-consumptive uses of these lands, such as
fishing, hunting, hiking, bird-watching, and other low-density recreation activities. Prohibited
activities will be identical to those described above related to the restrictive covenants to be
applied to the buffer zone of the Diggs Tract.

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Progress Energy Carolinas, Inc.
February 11, 2008
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Until these lands are protected by covenant, the Parties agree that interim land management by
the Applicant will use reasonable efforts to conform to the following forestry management
practices where timbering is scheduled:
(1) For loblolly pine plantations that are 30 or more years old, thin to approximately 30
trees/acres.
(2) For pine/hardwood mixed stands that are 30 or more years old, after consultation with
NCWRC, thin to approximately 30 trees/acre.
(3) For 15 to 30 year old stands of loblolly pine, thin to approximately 60 trees/acre.
(4) Reserve the ability to clear-cut parcels up to 25 acres in size where best management
practices would dictate (not including any environmentally significant areas) but only
after consultation with NCWRC and DWQ.
(5) Leave an undisturbed buffer of not less than 100 feet in width along the Pee Dee River
and along both sides of any streams.
(6) Predominantly hardwood stands will not be timbered.
The Applicant represents that it is responsible for providing reliable electric service to its
customers within North and South Carolina. To that end, from time to time the Applicant
constructs electrical transmission lines within its service area. The Applicant represents that
such lines are located only after consideration of many factors, including potential impacts to
homes, businesses, schools, roads, and other infrastructure; cultural and historic resources;
sensitive environmental features and natural areas; and other factors. Nothing in this 401
Certification (1) is intended specifically to prohibit the Applicant from planning, designing, and
constructing a transmission or distribution line through, over or across lands described above by
this Certification or (2) shall obviate any duty to obtain all necessary regulatory, environmental,
or other approvals. The parties recognize that the rights, duties, obligations of this 401
certificate and the actions taken pursuant to this Certification (such as the preservation of lands
described herein) may be considered in any proceeding regarding a transmission or distribution
line.
Each party assumes responsibility for its own costs associated with the deed transfers and
restrictive covenants described herein.
C. Lands to be Leased
Progress Energy will lease to the State of North Carolina for the term of the new license, and at
the present lease rate, lands it currently owns between Morrow Mountain State Park and the
Pee Dee River, which lands are depicted in the attached Appendix E. These lands are in the
vicinity of and include the existing boat launch area at Morrow Mountain State Park. The lease
shall be negotiated and executed within twelve (12) months of the issuance of the New License
that is Final and Non-Appealable.

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Progress Energy Carolinas, Inc.
February 11, 2008
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V Other Miscellaneous Protection, Mitigation and Enhancement Measures
A. Blewett Falls Plant
1. Shoreline Management
The shoreline management practice for Blewett Falls Lake will prohibit private access, except
normal foot access, to the lake across Project lands except at the designated public access
areas. By this measure, shoreline management shall focus on natural resource protection to
preserve the largely undisturbed nature of the Blewett Falls impoundment. Additional written.
approval from DWQ is required for changes to the shoreline management plan.
2. Blewett Falls Lake Sediment Survey
Five years following the issuance of the New License that is Final and Non-Appealable,
Progress Energy will conduct a sediment survey in Blewett Falls Lake and a gravel recruitment
survey in the Blewett Falls tailwater. The gravel recruitment survey will repeat the study
conducted by Progress Energy during the relicensing process. If results indicate that there is
still no significant problem related to gravel recruitment, then Progress Energy will conduct
another survey after an additional 10 years.
B. Tillery Plant
1. Implementation of Shoreline Management Plan
Progress Energy will implement and enforce the existing Tillery Shoreline Management Plan
(SMP) approved by the FERC by order dated November 24, 2004.
Appendix B
Low Inflow Protocol for the Yadkin & Yadkin-Pee Dee River Hydroelectric Projects
GOAL
The fundamental goal of this Low Inflow Protocol (LIP) is to take staged actions in the Yadkin-
Pee Dee River Basin needed to delay the point at which available water storage in the Yadkin
Hydroelectric Project (Federal Energy Regulatory Commission -FERC No. 2197) and the
Yadkin-Pee Dee Hydroelectric Project (FERC No. 2206) (collectively, projects) reservoirs is fully
depleted while maintaining downstream flows. This LIP is intended to provide additional time to
increase the probability that precipitation will restore streamflow and reservoir water elevations
to normal ranges. The amount of additional time that is gained during implementation of this
LIP depends on the diagnostic accuracy of the trigger points, the amount of regulatory flexibility
available to operate the projects, and the effectiveness of the projects' operators and the water
users in working together to implement required actions and achieve significant water use
reductions. It is assumed that water users in the Yadkin-Pee Dee River Basin not subject to this
LIP must comply with all applicable State and local drought response requirements.
More specifically, this LIP establishes procedures for adjusting operations during periods of low
inflow to the Yadkin Hydroelectric Project owned and operated by Alcoa Power Generating Inc.

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Progress Energy Carolinas, Inc.
February 11, 2008
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(APGI) and the Yadkin-Pee Dee River Hydroelectric Project owned by Carolina Power & Light
Company and operated by Progress Energy Carolinas, Inc. (PE) (collectively, Licensees) during
the term of the new FERC licenses issued for these projects. The provisions of this LIP should
be interpreted in a manner consistent with all other provisions of the new FERC licenses.
OVERVIEW
This LIP will be implemented during periods when there is not enough water flowing into the
projects' reservoirs to meet the projects' Required Minimum Instream Flows while maintaining
reservoir water elevations within Normal Operating Ranges. This LIP provides trigger points and
operating procedures that the Licensees will follow for the projects. This LIP also specifies water
withdrawal reduction measures for other water users in portions of the Yadkin-Pee Dee River
Basin.
The Licensees will provide flow from storage in the projects' reservoirs to support hydroelectric
generation and to provide Required Minimum Instream Flows in accordance with their
respective new FERC licenses. During periods of normal inflow, reservoir water elevations will
be maintained within their Normal Reservoir Operating Ranges. During times that inflow is not
adequate to provide Required Minimum Instream Flows and maintain reservoir water elevations
within their Normal Reservoir Operating Ranges, the Licensees will reduce releases for
hydroelectric generation. If reservoir storage continues to drop and climatologic or hydrologic
conditions worsen until trigger points defined in this LIP are reached, the Licensees will
implement additional provisions of this LIP, including meeting with the designated agencies and
water users to discuss the need for actions pursuant to this LIP. If conditions worsen,
progressive stages of this LIP will allow additional use of the available water storage inventory,
while conserving water storage volumes through required reductions in LIP Flows and required
reductions in water withdrawals.
Implementation of this LIP and movement between the various stages are based on
measurements of Stream Gage Three-Month Rolling Average Flow, U. S. Drought Monitor
Three-Month Numeric Average, and the High Rock Reservoir water elevation. The calculation of
these triggers and specific thresholds associated with each stage are detailed in this LIP.
Recognizing that improvements to this LIP may be identified during the new FERC license
period, this LIP will be re-evaluated as defined in Key Definitions, Facts and Assumptions No.
18.
KEY DEFINITIONS, FACTS, AND ASSUMPTIONS
1. Low Inflow Watch or Low Inflow Condition - A period of time when there is not enough water
flowing into the projects' reservoirs to meet the projects' Required Minimum Instream Flows
while maintaining reservoir water elevations within Normal Reservoir Operating Ranges.
2. LIP Flows -For the purposes of this LIP, this term refers to the flows defined in Table 6.
3. Required Minimum Instream Flows -For the purposes of this LIP, this term includes the
minimum flow requirements included in the new FERC licenses for the projects.
4. Public Information Obligations -The Licensees will develop and provide information on their
respective websites to inform the public on reservoir water elevations, project releases,

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Progress Energy Carolinas, Inc.
February 11, 2008
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usability of public access areas, reservoir inflows, meteorological forecasts, Historic and
Actual Stream Gage Three-Month Rolling Average Flow calculations, U.S. Drought Monitor
Three-Month Numeric Average calculations, LIP status, YPD-DMAG meeting summaries,
and implementation of maintenance or emergency operation plans.
5. Stream Gaqe Three-Month Rolling Average Flow -The three-month rolling average of
streamflow will be calculated at the following USGS stream gages:
• Yadkin River at Yadkin College (02116500)
• South Yadkin River near Mocksville (02118000)
• Abbotts Creek at Lexington (02121500)
• Rocky River near Norwood (02126000)
This flow will be calculated on the last day of each month by averaging the monthly average
of the current month and the two preceding months. The sum of the three-month rolling
average for these four gage stations will be compared to the Historic Stream Gage Three-
Month Rolling Average Flow for the corresponding period.
6. Historic Stream Gaqe Three-Month Rolling Average Flow -The daily flow for each of the
four designated USGS stream gages has been used to calculate a monthly average flow for
the period of record 1974 through 2003. Because the USGS only began gaging flows for
Abbotts Creek in 1988, the historical average for this gage will be based on the period 1988
through 2003. The historic three-month rolling average flow for each month of the year,
presented in Table 1, was calculated on the last day of each month of the year by averaging
the monthly average flow for each month and the preceding two months. The use of the
period of record 1974 through 2003 to calculate the historic three-month rolling average flow
will be evaluated every five years during the review of this LIP (see Key Definitions, Facts,
and Assumptions No. 18).
Table 1. Historic Stream Gaqe Three-Month Rolling Average Flow
For Evaluation of
Flow Trigger on: Average of daily flows
during: Historic Three-Month
Rolling
Avera a Flow, cfs
January 1 Oct-Nov-Dec 4,000
February 1 Nov-Dec-Jan 5,200
March 1 Dec-Jan-Feb 6,250
April 1 Jan-Feb-Mar 7,700
Ma 1 Feb-Mar-A r 7,550
June 1 Mar-Apr-May 6,850
Jul 1 A r-Ma -Jun 5,350
August 1 May-Jun-Jul 4,200
Se tember 1 Jun-Jul-Au 3,600
October 1 Jul-Aug-Sep 3,200
November 1 Au -Se -Oct 3,300
December 1 Sep-Oct-Nov 3,550
7. Full Pond Elevation -Also referred to as "Full Pond", this is the elevation of a reservoir
(measured in feet, USGS datum [NGVD 1929]) that corresponds to the point at which water

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Progress Energy Carolinas, Inc.
February 11, 2008
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would first begin to spill from each reservoir's dam if the respective Licensee took no action.
This elevation corresponds to the lowest point along the top of the spillway (including
flashboards) for reservoirs without flood gates; and to the lowest point along the top of the
flood gates for reservoirs that have flood gates. The Full Pond Elevation for each projects'
reservoirs is listed in Table 2.
Table 2. Full Pond Elevations
Reservoir Full Pond Elevation
(feet, USGS datum -NGVD 1929)
Hi h Rock 623.9
Tuckertown 564.7
Narrows 509.8
Falls 332.8
Tiller 278.2
Blewett Falls 178.1
8. Normal Reservoir Operating Range -The band of reservoir water elevations within which
the Licensees normally attempt to maintain a given reservoir on a given day. Each reservoir
has its own specific Normal Reservoir Operating Range, bounded by Full Pond Elevation
and Normal Minimum Elevation. If net inflows to the reservoir are within a reasonable
tolerance of the average or expected amounts, project equipment is operating properly, and
if maintenance or emergency operation plans have not been implemented, reservoir water
elevation excursions outside of the Normal Reservoir Operating Range should not occur.
The new FERC license for the Yadkin Project includes operating curves that establish the
Normal Reservoir Operating Range for each Yadkin Project reservoir.
9. Normal Minimum Elevation (NME) -The elevation of a reservoir (measured in feet, USGS
datum [NGVD 1929)) that defines the bottom of the reservoir's Normal Operating Range for
a given day of the year. NME for each of the projects' reservoirs is listed in Table 3.
Table 3. Normal Minimum Elevations (feet, USGS datum -NGVD 1929)
Month High
Rock Tucker-
town Narrows Falls Tillery Blewett
Falls
Full Pond 623.9 564.7 509.8 332.8 278.2 178.1
Januar 1 613.9 561.7 504.8 328.8 273.2 172.1
Februar 1 613.9 561.7 504.8 328.8 273.2 172.1
March 1 transition 561.7 504.8 328.8 275.7 172.1
A ril 1 619.9 561.7 504.8 328.8 275.7 172.1
Ma 1 619.9 561.7 504.8 328.8 275.7 172.1
June 1 619.9 561.7 504.8 328.8 275.7 172.1
Jul 1 619.9 561.7 504.8 328.8 275.7 172.1
Au ust 1 619.9 561.7 504.8 328.8 275.7 172.1
Se tember 1 619.9 561.7 504.8 328.8 275.7 172.1
October 1 619.9 561.7 504.8 328.8 275.7 172.1
November 1 transition 561.7 504.8 328.8 275.7 172.1
December 1-15 613.9 561.7 504.8 328.8 275.7 172.1
December16-31 613.9 561.7 504.8 328.8 273.2 172.1

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Progress Energy Carolinas, Inc.
February 11, 2008
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10. Public Water System -For the purposes of this LIP, a Public Water System is any publicly
or privately owned water system that supplies potable water to the public having an
instantaneous withdrawal capacity of one million gallons per day or more, and withdraws
from storage in the projects' reservoirs.
11. Non-Public Water User -For the purposes of this LIP, aNon-Public Water User is any
publicly or privately owned water withdrawer that withdraws water for uses other than
supplying potable water to the public, having an instantaneous withdrawal capacity of one
million gallons per day or more that withdraws from storage in the projects' reservoirs.
12. U.S. Drought Monitor - A synthesis of multiple indices, outlooks, and news accounts
(published by the U. S. Department of Agriculture) that represent a consensus of federal and
academic scientists concerning the drought status of all parts of the United States. Typically,
the U.S. Drought Monitor indicates intensity of drought as DO-Abnormally Dry, D1-Moderate,
D2-Severe, D3-Extreme and D4-Exceptional. The current U.S. Drought Monitor and
explanatory material can be found at http://www.drought.unl.edu/dm/monitor.html.
13. U.S. Drought Monitor Three-Month Numeric Average - If the U.S. Drought Monitor has a
designation ranging from DO to D4 as of the last day of a month for any part of the Yadkin-
Pee Dee River Basin that drains to the Blewett Falls development, the basin will be
assigned a numeric value for that month. The numeric value will equal the highest U.S.
Drought Monitor designation (e.g. D0=0, D1=1, D2=2, D3=3 and D4=4) for any part of the
Yadkin-Pee Dee River Basin draining to Blewett Falls development as of the last day of the
month. A normal condition in the basin, defined as the absence of a drought designation, will
be assigned a numeric value of negative one (-1). A rolling average of the numeric values of
the current month and previous two months will be calculated by APGI at the end of the
month and designated as the U.S. Drought Monitor Three-Month Numeric Average for
purposes of this LIP.
14. Critical Reservoir Water Elevation -The reservoir water elevation (measured in feet, USGS
datum [NGVD 1929]) below which a Public Water System intake, Non-Public Water User's
intake, or hydropower plant located on the reservoir cannot operate under normal
conditions. Critical Reservoir Water Elevations are defined in Table 4.
Table 4. Critical Reservoir Water Elevation
Critical Reservoir
Reservoir Water Elevation Type
measured at the dam
feet USGS Datum - NGVD1929
Hi h Rock 599.9 24 ft below full ool) H dro ower Production
Tuckertown 560.7 4 ft below full ool Public Water Su I
Narrows 486.8 23 ft below full ool Public Water Su I
Falls 322.8 10 ft below full ool H dro ower Production
Tiller 268.2 10 ft below full ool Public Water Su I
Public Water Supply/ Hydropower
Blewett Falls 168 (10.1 ft below full pool) Production

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Progress Energy Carolinas, Inc.
February 11, 2008
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15. Critical Flow -The flows from the projects that are necessary to prevent long-term or
irreversible damage to aquatic communities consistent with the resource management goals
and objectives for the affected stream reaches and necessary to provide some basic level of
water quality maintenance in affected river reaches. For the purposes of this LIP, the
Critical Flows are defined as follows:
• Falls Development -the Critical Flow from the Falls Development is equal to 770 cfs
measured on a daily average basis.
• Tillery Development -the Critical Flow from the Tillery Development is the same as
required minimum instream flow as defined in the new FERC license for Yadkin Pee-
Dee River Hydroelectric Project.
• Blewett Falls Development -the Critical Flow from the Blewett Falls Development is
925 cfs measured on a continuous basis.
16. Organizational Abbreviations -Organizational abbreviations include Alcoa Power
Generating Inc. (APGI), Progress Energy (PE), NC Department of Environment and Natural
Resources (NCDENR), North Carolina Division of Water Resources (NCDWR), North
Carolina Division of Water Quality (NCDWQ), North Carolina Wildlife Resources
Commission (NCWRC), South Carolina Department of Natural Resources (SCDNR), South
Carolina Department of Health and Environmental Control (SCDHEC), the United States
Fish and Wildlife Service (USFWS), High Rock Lake Association (HRLA), Badin Lake
Association (BLA), and South Carolina Pee Dee River Coalition (SCPDRC).
17. Yadkin-Pee Dee River Basin Drought Management Advisory Group (YPD-DMAG) -The
YPD-DMAG is established to facilitate implementation and review of this LIP. Members of
the YPD-DMAG agree to comply with this LIP. Membership on the YPD-DMAG is open to
one representative from each of the following organizations:
• APGI
• PE
• NCDWR
• NCDWQ
• NCWRC
• SCDNR
• SCDHEC
• USFWS
• Duke Power
• HRLA
• BLA
• Lake Tillery homeowners representation
• SCPDRC
• All owners of a Public Water System intake or aNon-Public Water User's intake that
withdraw from storage in one of the projects' reservoirs.
The Licensees will share the responsibility to notify NCDWR of a Low Inflow Condition.
NCDWR and SCDNR will share responsibility to coordinate with the YPD-DMAG including
notifying, setting agendas, leading discussions, and providing call/meeting summaries.
Regardless of the Low Inflow Condition, coordination will include a meeting convened
annually by NCDWR during April to discuss issues relevant to this LIP. Membership in the

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Progress Energy Carolinas, Inc.
February 11, 2008
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YPD-DMAG may be expanded based on a consensus of the members or at the direction of
FERC. The NCDWR will maintain an active roster of the YPD-DMAG, will prepare meeting
summaries of all YPD-DMAG meetings.
18. Revising this LIP -During the new FERC license period, the YPD-DMAG will be convened
by NCDWR and SCDNR at least once every five (5) years to review and, if necessary,
update this LIP. Decisions on modifications to the Licensees' responsibilities under this LIP,
if any, will be determined by consensus of the Licensees and the States of North Carolina
and South Carolina (specifically NCDWR, NCDWQ, SCDNR, SCDHEC) after consultation
with other members of the YPD-DMAG. Proposed modification to the Licensees'
responsibilities will be submitted to DWQ for review and approval as necessary.
Modifications to the responsibilities of other members (not the FERC licensees) of the YPD-
DMAG under this LIP, if any, will be determined by consensus of those members after
consultation with the Licensees. Approved modifications will be incorporated through
revision of this LIP. The YPD-DMAG may appoint an ad hoc committee to consider issues
relevant to this LIP. An issue such as the substitution of a regional drought monitor for the
U.S. Drought Monitor, if developed in the future, or proportional drawdown of storage
reservoirs during LIP stages are examples of items that may be considered.
19. Consensus - The unanimous support of all Parties, or at least no opposition from any
Party.
20. Water Withdrawal Data Collection and Reporting -The owners of all water intakes impacted
by this LIP are to comply with water use reporting requirements of the appropriate State
Agencies. The YPD-DMAG can request and should receive relevant water use information
from the appropriate state agency or directly from the owners of individual intakes.
21. Drought Response Plan Updates -All Public Water Supply System owners and Non-Public
Water Users subject to this LIP will review and update their drought response plans, or
develop a plan if they do not have one, to ensure compliance and coordination with this LIP,
including the authority to enforce the provisions outlined herein. Nothing in this LIP is
intended to prevent Public Water System owners or Non-Public Water Users from taking
more restrictive actions or from complying with any applicable law or regulation.
22. Relationship Between this LIP and Maintenance and Emergency Plans -Maintenance and
emergency plans outline the general approach the Licensees will take under certain
maintenance, emergency, equipment failure and other situations to continue practical and
safe operation of the projects; to maintain operations consistent with the new FERC license
conditions to the maximum extent possible; and to communicate with resource agencies and
the affected parties. Under these plans, temporary modifications to Required Minimum
Instream Flow releases, and the Normal Reservoir Operating Ranges are allowed.
Lowering projects' reservoir water elevations caused by situations addressed under
maintenance and emergency plans will not invoke implementation of this LIP. Also, if this
LIP has already been implemented at the time that a situation covered by these plans is
initiated, the Licensee may suspend implementation of this LIP until the maintenance or
emergency situation has been eliminated. Notification will be provided by the Licensees to
the State Agencies as soon as practicable.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
25 of 36
PROCEDURE
A Low Inflow Watch or Low Inflow Condition, as specifically defined below, will be triggered by
the combination of conditions defined in Table 5. This LIP will be implemented at Stage 0 and,
if the combination of conditions becomes more severe, the stage will increase in one stage
increments. The Licensees and other water users will follow the procedure set forth in this
section regarding communications and adjustments to flows and other water demands.
Table 5. Summary of LIP Triggers
Stream Gage Three-
US Drought Month Rolling
Stage High Rock Monitor Three- Average
Reservoir Elevation Month Numeric as a percent of the
Average Historical Avera e
< NME minus 0.5 ft and any or any
0 OR
< NME and ~ 0 or < 48
either
1 < NME minus 1 ft and , 1 or < 41
either
2 < NME minus 2 ft and ~ 2 or <35
either
3 < NME minus 3 ft and
either ~ 3 or <30
<'h of (NME minus
and
4 Critical Reservoir
either ~ 4 or <30
Water Elevation)
The LIP Flows set forth in Table 6 will be initiated on a monthly basis and are designed to
equitably allocate the impacts of reduced water availability in accordance with the goal of this
LIP. Initiation of this LIP will be based on analysis of the trigger conditions on the first day of
each month. The High Rock Reservoir water elevation as of midnight between the last day of
the previous month and the first day of the current month will be used in combination with the
U.S. Drought Monitor Three-Month Numeric Average and the Stream Gage Three-Month
Rolling Average Flow to determine the need to declare a Low Inflow Watch or change the stage
of Low Inflow Conditions.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
26 of 36
Table 6. LIP Flows~'~, cfs
High Rock Falls~Z~ Blewett FaIIs~2~
(daily average (daily average flow target) (continuous flow target~3~)
maximum flow tar et
Stage b 1
F
Feb 1-
May
Jun 1- Feb 1-
May
Jun 1- -
e
May
Jun 1-
May 16-31 Jan 31 May 16-31 Jan 31 May
15 16-31 Jan 31
15 15
0 2000 1500 1000 2000 1500 1000 2400 1800 1200
1 1450 1170 900 1450 1170 900 1750 1400 1080
2 1080 950 830 1080 950 830 1300 1150 1000
3 770 770 770 770 770 770 925 925 925
Additional measures may be determined by consensus of the Licensees and State
4 A encies. NCDWQ a royal of an additional measures will be re uired.
~ Consistent with the goal of this LIP to conserve water while maintaining
downstream flows, projects will be operated to achieve the target flows to the
extent practicable as a first priority and to supplement inflows equitably from
the storage reservoirs as a second priority.
z The LIP flow values shown in the table above reflect flow targets. These
values cannot be met exactly as shown and will likely vary slightly on a real
time basis from the values shown here. It is expected that the variances from
the target flows will be minimal. In Stages 0-2 the releases from Blewett Falls
will be within 5% of the target as measured at the USGS Rockingham gage.
In stages 3-4 the releases from Blewett Falls will be between 900-950 cfs as
measured at the USGS Rockingham gage.
s Local inflows to Blewett Falls Reservoir may be large even during extended low
inflow conditions. If at any time during the implementation of the LIP local
inflows to Blewett Falls Reservoir are large enough to fill Blewett Falls
Reservoir to full pond, the Downstream Licensee may temporarily increase
Blewett Falls eneration to avoid spill.
Stage 0 -Low Inflow Watch:
The Licensees will monitor High Rock Reservoir water elevations, the U.S. Drought Monitor and
the designated stream gages and will declare a Stage 0 Low Inflow Watch for the month if the
following conditions are present on the first day of the month:
• If the High Rock Reservoir water elevation is below the NME minus 0.5 ft under any
inflow or drought condition.
OR
• The High Rock Reservoir water elevation is below its NME.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
27 of 36
AND EITHER
• The U.S. Drought Monitor Three-Month Numeric Average for the Yadkin-Pee
Dee River Basin draining to Blewett Falls Development is greater than or
equal to zero.
OR
• The Stream Gage Three-Month Rolling Average Flow for the monitored
stream gages is less than 48% of the Historic Stream Gage Three-Month
Rolling Average Flow.
When a Stage 0 Low Inflow Watch is declared:
1. The Licensees will notify via email the NCDWR of a Stage 0 Low Inflow Watch as soon as
practicable but no later than three business days after the declaration.
2. The NCDWR will activate the YPD-DMAG and initiate monthly meetings or conference calls
to be held on the Monday before the second Tuesday. Monthly discussions will:
a. Review provisions of this LIP.
b. Clarify communication channels between the YPD-DMAG members.
c. Review hydrological status of the basin.
d. Review the roles of each YPD-DMAG member and discuss their plans for responding if
an elevated Low Inflow Condition is declared.
e. Review information reporting by YPD-DMAG members, including a storage history and
forecast from the Licensees, a water use history and forecast from each water user on
the YPD-DMAG, and state-wide drought response status (including, but not limited to,
impact to water quality, fisheries, wildlife, etc.) from the member agencies.
f. Public communications.
Stage 1 -Low Inflow Condition:
The Licensees will monitor High Rock Reservoir water elevations, the U.S. Drought Monitor and
the designated stream gages and will declare a Stage 1 Low Inflow Condition for the month if
the following conditions are present on the first of the month:
• The prior month LIP condition was Stage 0;
AND
• The High Rock Reservoir water elevation is more than 1 ft below the NME;
AND EITHER
• The U.S. Drought Monitor Three-Month Numeric Average for the Yadkin-Pee
Dee River Basin draining to Blewett Falls Development is greater than or
equal to 1.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
28 of 36
OR
• The Stream Gage Three-Month Rolling Average Flow for the monitored
stream gages is less than 41 % of the Historic Stream Gage Three-Month
Rolling Average Flow.
When a Stage 1 Low Inflow Condition is declared:
1. The Licensees will:
a. Notify NCDWR of declaration of a Stage 1 Low Inflow Condition via email as soon as
practicable but no later than two business days after the declaration.
b. Implement LIP Flows as detailed in Table 6 for each project by the seventh day of the
month in which a Stage 1 Low Inflow Condition is declared. To meet the LIP Flows for
Stage 1
• APGI will supplement Project inflows by drawing first from Narrows Reservoir until
the Narrows Reservoir drawdown below its NME matches the High Rock Reservoir
drawdown below its NME at the time that the Stage 1 Low Inflow Condition is
declared.
• APGI will supplement Project inflows by drawing from High Rock and Narrows
reservoirs approximately equally on afoot-per-foot basis below the Normal Minimum
Elevation (NME).
• PE will supplement Project inflows by drawing from either Tillery or Blewett Falls as
required.
c. Update their respective websites as noted in Key Definitions, Facts and Assumptions
No. 4.
d. Provide Public Water System intake owners and Non-Public Water Users with weekly
updates on reservoir water elevations and inflow of water into the projects' reservoirs.
2. If they have not already done so, NCDWR will coordinate with SCDNR to conduct monthly
meetings or conference calls to be held on the Monday before the second Tuesday. Monthly
discussions will:
a. Review provisions of this LIP.
b. Clarify communication channels between the YPD-DMAG members.
c. Review hydrological status of the basin.
d. Review the roles of each YPD-DMAG member and discuss their plans for responding if
an elevated Low Inflow Condition is declared.
e. Review information reporting by YPD-DMAG members, including a storage history and
forecast from the Licensees, a water use history and forecast from each water user on
the YPD-DMAG, and state-wide drought response status (including, but not limited to,
impact to water quality, fisheries, wildlife, etc.) from the member agencies.
f. Public communications.
3. Owners of Public Water System intakes will complete the following activities within 14 days
after a Stage 1 Low Inflow Condition is declared:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
29 of 36
a. Notify their water customers of the low inflow condition through public outreach and
communication efforts.
b. Request that their water customers implement voluntary water use restrictions, in
accordance with their drought response plans. At this stage, the goal is to reduce water
withdrawals by approximately 5% from the amount that would otherwise be expected.
These restrictions may include:
• Reduction of lawn and landscape irrigation to no more than two days per week (i.e.
residential, multi-family, parks, streetscapes, schools, etc).
• Reduction of residential vehicle washing.
c. Provide a status update to the YPD-DMAG on actual water withdrawal trends and
discuss plans for moving to mandatory restrictions, if they are required.
4. Non-Public Water Users on the YPD-DMAG will complete the following activities within 14
days after a Stage 1 Low Inflow Condition is declared:
a. Notify their employees and/or customers of the low inflow condition,
b. Request that their employees and customers conserve water through reduction of water
use, electric power consumption, and other means, and
c. Institute in-house conservation consistent with their drought management plan and
minimize consumptive uses to the extent feasible.
Stage 2 -Low Inflow Condition:
The Licensees will monitor High Rock Reservoir water elevations, the U.S. Drought Monitor and
the designated stream gages and will declare a Stage 2 Low Inflow Condition for the month if
the following conditions are present on the first of the month:
• The prior month LIP condition was Stage 1;
AND
• The High Rock Reservoir water elevation is more than 2 ft below the NME.
AND EITHER
The U.S. Drought Monitor Three-Month Numeric Average for the Yadkin-Pee
Dee River Basin draining to Blewett Falls Development is greater than or
equal to 2.
OR
• The Stream Gage Three-Month Rolling Average Flow for the monitored
stream gages is less than 35% of the Historic Stream Gage Three-Month
Rolling Average Flow.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
30 of 36
When a Stage 2 Low Inflow Condition is declared:
1. The Licensees will:
a. Notify NCDWR of a declaration of Stage 2 Low Inflow Condition via email as soon as
practicable but no later than two business days after the declaration.
b. Implement LIP Flows as detailed in Table 6 for each project by the seventh day of the
month in which a Stage 2 Low Inflow Condition is declared. To meet the LIP Flows for
Stage:
• APGI will supplement Project inflows by drawing from High Rock and Narrows
reservoirs approximately equally on afoot-per-foot basis.
• PE will supplement Project inflows by drawing from either Tillery or Blewett Falls as
required.
c. Update their respective websites as noted in Key Definitions, Facts and Assumptions
No. 4.
d. Provide Public Water System intake owners and Non-Public Water Users with updates
twice per week on reservoir water elevations and inflow of water into the system.
e. Continue participation in monthly or more frequent meeting or conference calls of the
YPD-DMAG
2. NCDWR will coordinate with SCDNR to conduct monthly YPD-DMAG meetings or
conference calls to be held on the Monday before the second Tuesday. Monthly discussions
will:
a. Review provisions of this LIP.
b. Clarify communication channels between the YPD-DMAG members.
c. Review hydrological status of the basin.
d. Review the roles of each YPD-DMAG member and discuss their plans for responding if
an elevated Low Inflow Condition is declared.
e. Review information reporting by YPD-DMAG members, including a storage history and
forecast from the Licensees, a water use history and forecast from each water user on
the YPD-DMAG, and state-wide drought response status (including, but not limited to,
impact to-water quality, fisheries, wildlife, etc.) from the member agencies.
f. Public communications.
3. Owners of Public Water System intakes will complete the following activities within 14 days
after the Stage 2 Low Inflow Condition is declared:
a. Notify their water customers of the continued low inflow condition and movement to more
stringent mandatory water use restrictions through public outreach and communication
efforts.
b. Require that their water customers implement mandatory water use restrictions, in
accordance with their drought response plans. At this stage, the goal is to reduce water
withdrawals by approximately 10% from the amount that would otherwise be expected.
These restrictions may include:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
31 of 36
• Limiting lawn and landscape irrigation to no more than one day per week (i.e.
residential, multi-family, parks, streetscapes, schools, etc).
• Eliminating residential vehicle washing.
• Limiting public building, sidewalk, and street washing activities except as required for
safety and/or to maintain regulatory compliance.
• Limiting construction uses of water such as dust control.
• Limiting flushing and hydrant testing programs, except to maintain water quality or
other special circumstances.
• Eliminating the filling of new swimming pools.
• Enforce mandatory water use restrictions through the assessment of penalties.
• Encourage industrial/manufacturing process changes that reduce water
consumption.
• Provide a status update to the YPD-DMAG on actual water withdrawal trends.
4. Non-Public Water Users on the YPD-DMAG will complete the following activities within 14
days after the Stage 2 Low Inflow Condition is declared:
a. Notify their employees and/or customers of the low inflow condition through public
outreach and communication efforts.
b. Request that their employees and customers conserve water through reduction of water
use, electric power consumption, and other means.
c. Institute in-house conservation consistent with their required drought management plans
and minimize consumptive uses to the extent feasible.
Stage 3 -Low Inflow Condition:
The Licensees will monitor High Rock Reservoir water elevations, the U.S. Drought Monitor and
the designated stream gages and will declare a Stage 3 Low Inflow Condition for the month if
the following conditions are present on the first of the month:
• The prior month LIP condition was Stage 2;
AND
• The High Rock Reservoir water elevation is more than 3 ft below the NME.
AND EITHER
• The U.S. Drought Monitor Three-Month Numeric Average for the Yadkin-Pee
Dee River Basin draining to Blewett Falls Development is greater than or
equal to 3.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
32 of 36
OR
• The Stream Gage Three-Month Rolling Average Flow for the monitored
stream gages is less than 30% of the Historic Stream Gage Three-Month
Rolling Average Flow.
When a Stage 3 Low Inflow Condition is declared:
1. The Licensees will:
a. Notify NCDWR of a declaration of Stage 3 Low Inflow condition via email as soon as
practicable but no later than 48 hours after the declaration.
b. Implement LIP Flows to designated Critical Flows as detailed in Table 6 for each project
by the seventh day of the month in which a Stage 3 Low Inflow Condition is declared. To
meet the Critical Flows:
• APGI will supplement Project inflows by drawing from High Rock and Narrows
reservoirs approximately equally on afoot-per-foot basis.
• PE will supplement Project inflows by drawing from either Tillery or Blewett Falls as
required.
c. Update their respective websites as noted in Key Definitions, Facts, and Assumptions
No. 4.
d. Provide Public Water System intake owners and Non-Public Water Users with bi-weekly
(twice each week) updates on reservoir water elevations and inflow of water into the
system.
e. Continue participation in monthly or more frequent meeting or conference calls of the
YPD-DMAG.
2. NCDWR will coordinate with SCDNR to conduct monthly YPD-DMAG meetings or
conference calls to be held on the Monday before the second Tuesday. Monthly discussions
will:
a. Review provisions of this LIP.
b. Clarify communication channels between the YPD-DMAG members.
c. Review hydrological status of the basin.
d. Review the roles of each YPD-DMAG member and discuss their plans for responding if
an elevated Low Inflow Condition is declared.
e. Review information reporting by YPD-DMAG members, including a storage history and
forecast from the Licensees, a water use history and forecast from each water user on
the YPD-DMAG, and state-wide drought response status (including, but not limited to,
impact to water quality, fisheries, wildlife, etc.) from the member agencies.
f. Public communications.
3. Owners of Public Water System intakes will complete the following activities within 14 days
after the Stage 3 Low Inflow Condition is declared:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
33 of 36
a. Notify their water customers of the continued low inflow condition and movement to
emergency water use restrictions through public outreach and communication efforts. At
this stage, the goal is to reduce water usage by approximately 20% from the amount that
would otherwise be expected.
b. Restrict all outdoor water use.
c. Implement emergency water use restrictions in accordance with their drought response
plans, including enforcement of these restrictions and assessment of penalties.
d. Prioritize and meet with their commercial and industrial large water customers and meet
to discuss strategies for water reduction measures including development of an activity
schedule and contingency plans.
e. Prepare to implement emergency plans to respond to water outages.
4. Non-Public Water Users on the YPD-DMAG will complete the following activities within 14
days after a Stage 3 Low Inflow Condition is declared:
a. Continue informing their customers of the low inflow condition through public outreach
and communication efforts.
b. Request that their customers conserve water through reduction of water use, electric
power consumption, and other means.
Stage 4 -Low Inflow Condition:
The Licensees will monitor reservoir elevations, the U.S. Drought Monitor and the designated
stream gages and will declare a Stage 4 Low Inflow Condition for the month if the following
conditions are present on the first of the month:
• The prior month LIP condition was Stage 3;
AND
• The High Rock Reservoir water elevation is less than 606.9 ft USGS (November 1
through March 1) or less than 609.9 ft USGS (April 1 through October 1).'
AND EITHER
• The U.S. Drought Monitor Three-Month Numeric Average for the Yadkin-Pee
Dee River Basin draining to Blewett Falls Development is greater than or
equal to 4.
OR
• The Stream Gage Three-Month Rolling Average Flow for the monitored
stream gages is less than 30% of the Historic Stream Gage Three-Month
Rolling Average Flow.
' Less than one half the distance between the NME and the Critical Reservoir Water Elevation.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
34 of 36
When a Stage 4 Low Inflow Condition is declared:
1. The Licensees will notify NCDWR via email as soon as practicable but no later than 48
hours after the declaration.
2. NCDWR will request a meeting of the YAD-DMAG within 5 days after the declaration of the
Stage 4 Low Inflow Condition for discussion to determine if there are any additional
measures that can be implemented to:
a. Reduce water withdrawals, reduce water releases from the projects or use additional
reservoir storage without creating more severe regional problems.
b. Work together to develop plans and implement any additional measures identified
above.
c. Communicate conditions to the public.
Additional measures may be determined by consensus of the Licensees and State Agencies
with NCDWQ approval as necessary.
Recovery from LIP Stages
Recovery from this LIP will be triggered by any of the three following conditions:
• Condition 1: All three triggers associated with a lower numbered LIP Stage are met.
OR
• Condition 2: High Rock Reservoir water elevations return to at or above the NME PLUS
2.5 ft.
OR
Condition 3: High Rock Reservoir water elevations return to at or above the NME for 2
consecutive weeks.
When any of these three conditions occurs:
1. The Licensees will take the following action:
a. Condition 1: The LIP recovery will be a general reversal of the staged approach
described above.
b. Condition 2: The LIP will be discontinued.
c. Condition 3: The LIP will be discontinued.
2. The Licensees will notify the NCDWR via email within 3 business days following attainment
of any of the conditions necessary to return to a lower stage of this LIP. Changes to less
restrictive Stages will be made:

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
35 of 36
a. Condition 1: on the first of each month if a slow recovery is indicated; or
b. Condition 2: immediately if High Rock Reservoir elevations are at or above the NME
PLUS 2.5 ft.
c. Condition 3: immediately if High Rock Reservoir elevations are at or above the NME for
2 consecutive weeks.
3. The Licensees will update their respective websites as noted in Key Definitions, Facts and
Assumptions No. 4.

Mr. Charles Gates
Progress Energy Carolinas, Inc.
February 11, 2008
36 of 36
Also, this approval to proceed with your proposed impacts or to conduct impacts to
waters as depicted in your application shall expire upon expiration of the FERC License.
If this Certification is unacceptable to you, you have the right to an adjudicatory hearing
upon written request within sixty (60) days following receipt of this Certification. This request
must be in the form of a written petition conforming to Chapter 1506 of the North Carolina
General Statutes and filed with the Office of Administrative Hearings, 6714 Mail Service Center,
Raleigh, N.C. 27699-6714. If modifications are made to an original Certification, you have the
right to an adjudicatory hearing on the modifications upon written request within sixty (60) days
following receipt of the Certification. Unless such demands are made, this Certification shall be
final and binding.
This the 11th day of February 2008
DIV OF WATER QUALITY
Coleen H. Sullins, 'rect'or
CS/jrd

Progress Energy
Buchanan Mitigation Lands
1532.9 Acres Donated
N. 1745745.81
E. 449448.87
Jti ~ ~
~y,.:a
7
N 1742{54.84
E. 428787.39
Le end N. 1741908.11
g E 414799.88
~ Pee Dee River
N. 1744923.02
~ Buchanan Mitigation Lands E. a183es.33
_. J M~~es
- DOT Roads o o.a o.s

Progress Energy
Almond Mitigation Lands
N 1883242 St
E 529758.51
4
Legend ~N.1887428.37
E. 513534.89
Almond Mitigation Lands ~~~
- Pee Dee River
DOT Roads
Miles
0 0.25 0.5 1

Progress Energy
Blewett Falls Mitigation Lands
S
~°'~.~>
Legend
~~,'~~ Restrictive Covenants
~ ~ Blewett Falls Lake
DOT Roads
Miles
0 0.25 0.5 7

Progress Energy
Tillery Mitigation Lands
~-
4
Legend
'////.~ 100 h Buffer Where Available
Restrigive Covenants Lands
PEC Property
® Lake Tillery
Feet
0 340 680 1.360

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