Progress Energy plans gas-powered plant near Wilmington

Progress Energy said Friday that it plans to build a $600 million power plant fueled by cleaner-burning natural gas as it phases out coal-fired units in North Carolina.

The Raleigh-based utility filed an application with the North Carolina Utilities Commission to build the 600-megawatt generation unit on the grounds of an existing coal-fired power plant near Wilmington.

Progress Energy Carolinas said it is negotiating to extend a major new natural gas pipeline to the site, which would provide a cleaner energy source.

If approved, construction on the plant could begin in 2011, and the plant could start generating power by 2014.

Progress Energy said earlier this month it will close 11 coal-burning power plants in North Carolina that don't have equipment to contain air pollution by 2017.