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          Project No. 432-104


               UNITED STATES OF AMERICA 115 FERC *62,011FEDERAL ENERGY
                                REGULATORY COMMISSION

          Progress Energy Carolinas, Inc.                                  
                                                       Project No. 432-104

             ORDER REVISING RECREATION FLOW RELEASES UNDER ARTICLE 407  
                               (Issued April 04, 2006)

               On February 23, 2006, Progress Energy Carolinas, Inc.
          (licensee) requested approval for revising Schedule 2
          recreational flow releases for the Walters Hydroelectric Project
          No. 432 pursuant to license article 407.[1]  The licensee
          proposes the Schedule 2 releases commence four weeks prior to
          Memorial Day weekend and end after the scheduled Saturday release
          on Labor Day weekend.  The project is located on the Pigeon River
          in Haywood County, North Carolina, just upstream of the State of
          Tennessee.

               Article 407 requires the licensee to release, from the
          powerhouse, water to provide at least 1,200 cubic-feet-per-second
          (cfs) flows in the vicinity of the existing Brown's Bridge
          located one mile downstream, between the hours of 2:00 p.m. and
          6:00 p.m. on not less than three days each week, commencing two
          weeks before Memorial Day weekend and persisting for two weeks
          after Labor Day weekend.  In addition, article 407 permits the
          licensee to change the days, hours and amounts of the Schedule 2
          releases with written approval of the Commission and the
          Tennessee Wildlife Resources Agency (TWRA).

               Paragraph (c) of article 407 allows the licensee to revise
          Schedule 2 recreation flow releases with approval from the
          Commission and the TWRA.  The licensee provided letters of
          concurrence from the Pigeon River Rafting Association and TWRA
          dated January 12, 2006, and February 13, 2006, respectively, in
          its filing.  The proposed revisions are in the public interest
          and should, therefore, be approved. 

          The Director orders:
               
               (A) Paragraph (b) of article 407 for the Walters
                  Hydroelectric Project No. 432 is revised to read: 
               
               "The Schedule 2 releases will be maintained for the four
               weeks prior to Memorial day weekend through the scheduled
               Saturday release on Labor Day weekend."
               
               (B) This order constitutes final agency action. Requests for
          rehearing by the Commission may be filed within 30 days from the
          date of issuance of this order, pursuant to 18 CFR * 385.713.





                                             John E. Estep
                                             Chief, Land Resources Branch
                                             Division of Hydropower 
                                             Administration and Compliance



          Footnotes

          [1] See 69FERC*61,168, issued November 4, 1994.