Duke Energy to Lower Water Level at Lake James to Facilitate Dam Strengthening and Hydro Station Move MORGANTON, N.C. – Duke Energy will lower the water level at Lake James by up to 15 feet starting later this year, with less impact continuing through next spring and summer.

Duke Energy is notifying lake residents and businesses this week so they can begin making any necessary arrangements for their boats or properties during lower lake levels.

The lake lowering is prompted by requirements from the Federal Energy Regulatory Commission (FERC) that Duke Energy strengthen the three dams it operates on Lake James to increase dam stability in the event of a severe seismic event.

Duke Energy has completed work on two of the dams – Paddy Creek Dam and Catawba Dam. Construction is scheduled to begin in 2012 on improvements to the third dam – Linville Dam.

“The Linville Dam remains very safe today, but this federally required project will further reinforce its durability and reliability for those living downstream,” said Carol Goolsby, vice president of Duke Energy’s hydro fleet.

To facilitate the strengthening work on the Linville Dam in 2012, the dam’s existing electricity generating station (Bridgewater Hydro Station) must be permanently removed. A replacement hydro station is being built several hundred yards downriver. At the peak of construction, the new hydro station project will employ a workforce of more than 150 people, coming largely from the local area.

The work includes repairs to the station’s intake structure, which will require Duke Energy to gradually lower the lake level in November and December to about 85 feet (15 feet below full pond).

After completing the intake work in February, Duke Energy will allow the lake to refill to about 92 feet (eight feet below full pond) through the spring to support walleye fish spawning and limited recreational access.

In May 2011, Duke Energy will again lower Lake James – this time to about 90 feet (10 feet below full pond) to begin the process of connecting the new hydro station to the intake pipe. Since neither the old nor the new, under-construction hydro station will be operating from late May through September 2011, one of the normal outlets that moves water downstream will be temporarily closed during this five-month construction period. Once at 90 feet, the lake will begin to immediately refill based on rainfall.

Substantially lowering Lake James’ water level – in advance of the hydro station work – will reduce the amount of water that otherwise could spill over the lake’s Paddy Creek and Catawba dam spillways during the temporary closure of the normal Linville Dam outlet.

This action will provide added protection against potential high water for downriver residents and businesses in the event of lengthy periods of heavy rain during the May to September 2011 construction timeframe.

“We do not take the decision to temporarily lower Lake James lightly, but it is necessary to complete the required dam and hydro station work,” Goolsby said. “We understand this work impacts residents, businesses and others who enjoy recreational activities on the lake, so we wanted to provide them as much advanced notice as possible,” she said.

Lake residents and businesses often repair docks and make shoreline improvements during periods of reduced lake levels. Those interested in doing so can contact Duke Energy Lake Services at 800-443-5193.

During the construction project, updates on lake levels will be available at

www.duke-energy.com/lakes/levels.asp or by calling 800-829-LAKE (5253). For more details, please visit our fact sheet with frequently asked questions.