PNY Piedmont Natural Gas Company, Inc.

 

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

For Annual Reports of Employee Stock Purchase, Savings
and Similar Plans Pursuant to Section 15(d) of the
Securities Exchange
Act of 1934

(Mark One)

þ		ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2009

OR

o		TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition period from                      to                     

Commission file number 1-6196

A. Full title of the plan and address of the plan, if different from that of the issuer named below:

Piedmont Natural Gas Company, Inc. 401(k) Plan

B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

Piedmont Natural Gas Company, Inc.
4720 Piedmont Row Drive
Charlotte, North Carolina 28210

 

 

Table of Contents

		Page
Piedmont Natural Gas Company, Inc. 401(k) Plan:
Cover Page			1
Report of Independent Registered Public Accounting Firm			2
Financial Statements—
Statements of Net Assets Available for Benefits as of December 31, 2009 and 2008			3
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2009			4
Notes to Financial Statements			5
Supplemental Schedule as of December 31, 2009
Form 5500, Schedule H, Part IV, Line 4i—Schedule of Assets (Held at End of Year)			15
EX-23.1

NOTE:		All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Statements of Net Assets Available for Benefits as of December 31, 2009 and 2008,
Statement of Changes in Net Assets Available for Benefits for the Year Ended December 31, 2009,
Supplemental Schedule as of December 31, 2009 and
Report of Independent Registered Public Accounting Firm

Report of Independent Registered Public Accounting Firm

To the Benefits Committee and Participants in
Piedmont Natural Gas Company, Inc. 401(k) Plan
Charlotte, North Carolina

We have audited the accompanying statements of net assets available for benefits of Piedmont Natural Gas Company, Inc. 401(k) Plan (the “Plan”) as of December 31, 2009 and 2008, and the related statement of changes in net assets available for benefits for the year ended December 31, 2009. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2009 and 2008, and the changes in net assets available for benefits for the year ended December 31, 2009, in conformity with accounting principles generally accepted in the United States of America.

Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of Form 5500, Schedule H, Part IV, Line 4i — Schedule of Assets (Held at End of Year) as of December 31, 2009, is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the United States Department of Labor Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ McGladrey & Pullen, LLP

Charlotte, North Carolina
May 7, 2010

Piedmont Natural Gas Company, Inc. 401(k) Plan

Statements of Net Assets Available for Benefits

December 31, 2009 and 2008

		2009				2008
Assets
Participant-directed investments (Notes 3, 6 and 7)		$	133,807,593			$	104,480,312
Receivable — due from broker for securities sold			—				56,423
Receivable — employee contributions			—				500,705
Receivable — employer contributions			—				316,197
Cash			1,300,955				336
Total assets			135,108,548				105,353,973
Liabilities
Due to broker for securities purchased			1,300,955				56,762
Net assets available for benefits at fair value			133,807,593				105,297,211
Adjustment from fair value to contract value for interest in common collective trust relating to fully benefit-responsive investment contracts			(145,875	)			1,570,394
Net assets available for benefits		$	133,661,718			$	106,867,605

See Notes to Financial Statements.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Statement of Changes in Net Assets Available for Benefits

Year Ended December 31, 2009

Additions to net assets attributed to:
Investment income:
Net appreciation in fair value of investments (Note 3)		$	17,134,348
Interest, dividends and other			2,180,641
Total investment income			19,314,989
Contributions:
Employer’s			4,915,744
Participants’			7,790,888
Participants’ rollovers			269,254
Total contributions			12,975,886
Total additions			32,290,875
Deductions from net assets attributed to:
Benefits paid to participants			5,150,862
Expenses (Note 6)			345,900
Total deductions			5,496,762
Net increase			26,794,113
Net assets available for benefits:
Beginning of year			106,867,605
End of year		$	133,661,718

See Notes to Financial Statements.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 1. Description of the Plan

The following description of Piedmont Natural Gas Company, Inc. (the “Company”) 401(k) Plan (“the Plan”) is provided for general information purposes only. Participants should refer to the Plan document for more complete information.

General : The Plan is a defined contribution plan providing benefits to participating employees or their beneficiaries upon retirement, death or termination of employment (following a break in service, as defined in the Plan). As a result of a plan merger effective on October 1, 2001, participants’ accounts in the Company’s employee stock ownership plan (ESOP) were transferred into the Plan. Former ESOP participants may remain invested in Piedmont Natural Gas common stock in the Plan or may sell the common stock at any time and reinvest the proceeds in other available investment options.

Employees become eligible to participate in the Plan on the first day of any pay period after they have completed thirty days of continuous service with the Company and attained age 18. The Benefits Committee of the Board of Directors of the Company controls and manages the operation and administration of the Plan. Wachovia Bank, N.A. (“Wachovia”) serves as the trustee of the Plan. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

Contributions : Employees are able to contribute up to 50% of eligible pay to the Plan on a pre-tax basis, up to the Tax Code annual contribution limit. Beginning January 1, 2008 (January 1, 2009 for employees covered under the bargaining unit contract in Nashville, Tennessee), employees are able to receive a company match of 100% up to the first 5% of eligible pay contributed. The Company automatically enrolls all newly eligible employees in the Plan as of January 1, 2008 (January 1, 2009 for employees covered under the bargaining unit contract in Nashville, Tennessee) at a 2% contribution rate unless the employee chooses not to participate by notifying the Plan trustee. For employees who are automatically enrolled in the Plan, the Company will automatically increase their contributions by 1% each year to a maximum of 5% unless the employee chooses to opt out of the automatic increase by contacting the trustee. If the employee does not make an investment election, employee contributions and matches are automatically invested in a diversified portfolio of stocks and bonds. Participants may invest in Piedmont stock up to a maximum of 20% of their account. Employees may change their contribution rate and investments at any time. Additional amounts may be contributed by the Company at the discretion of the Company’s Board of Directors. There were no discretionary Company contributions during the year ended December 31, 2009. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans.

Participant accounts : Individual accounts are maintained for each Plan participant. Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, and allocations of Company discretionary contributions, if applicable, and Plan earnings, and charged with any benefit payments and allocations of plan losses and expenses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s vested account.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 1. Description of the Plan (Continued)

Investments : Participants direct the investment of their contributions into various investment options offered by the Plan. Currently, the Plan offers eleven mutual funds, one common trust fund, one common collective trust fund, and one common stock fund as investment options for participants.

Vesting : All participant contributions and earnings thereon are fully vested and nonforfeitable upon allocation to the participants’ accounts. A participant will become 100% vested in his employer matching contributions after the participant completes six months of service.

Participant loans : Participants may borrow from their fund accounts a minimum of $1,000 up to a maximum of $50,000 or 50% of their account balances, whichever is less. The loans are secured by the balance in the participant’s account and bear interest at the average yield of five-year U.S. Treasury notes. Interest rates on loans range from 6.77% to 8.53% at December 31, 2009. Principal and interest are paid ratably through payroll deductions.

Payment of benefits : Upon termination of service, the vested balance of a participant’s account will be paid to the participant, or, in the case of death, to the spouse or beneficiary, if any, in a single, lump sum of cash or common stock as permitted by the Plan.

Note 2. Summary of Significant Accounting Policies

Basis of accounting : The accompanying financial statements of the Plan are prepared under the accrual method of accounting.

Use of estimates : The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the financial statements and accompanying notes. Actual results could differ from those estimates.

Investment contracts : Fully benefit-responsive investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan.

The Plan invests in investment contracts through a collective trust in the Union Bond & Trust Company Stable Value Fund. The statements of net assets available for benefits presents the fair value of the investments in the collective trust as well as the adjustment of the investment in the collective trust from fair value to contract value relating to the investment contracts. The statement of changes in net assets available for benefits is prepared on a contract value basis.

Investment valuation and income recognition : Investments are reported at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 7 for disclosure of our fair value measurements.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 2. Summary of Accounting Policies (Continued)

We utilize market data or assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated or generally observable. We primarily apply the market approach for recurring fair value measurements and endeavor to utilize the best available information. Accordingly, we use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. We are able to classify fair value balances based on the observance of those inputs into the fair value hierarchy levels as set forth in the fair value accounting guidance.

Following is a description of the valuation methodologies used for our investment assets measured at fair value. There have been no changes in the methodologies used at December 31, 2009 and 2008.

Common stock funds : Valued at the closing price reported on the active market on which the individual securities are traded.

Mutual funds : Valued at the net asset value (“NAV”) of shares held by the Plan at year end.

Common trust fund : Valued at the NAV of the funds in which it participates at year-end.

Common collective trust fund : Valued based on information provided by the trustee and using the audited financial statements of the common collective trust at year end.

Participant loans : Valued at amortized cost plus accrued interest, which approximates fair value.

Our Level 1 inputs are quoted prices (unadjusted) or NAVs in active markets that we have the ability to access as of the reporting date and consist of investments in common stock funds, mutual funds and a common trust fund. Level 2 inputs which are inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly corroborated or observable as of the reporting date and generally use valuation methodologies, consist of a common collective trust fund as discussed in “Investment contracts” above. The common collective trust fund is a Level 2 input as a participant has the ability to redeem his investment at the contract value at that point in time. Level 3 inputs include significant pricing inputs that are generally less observable from objective sources which consist of participant loans.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date. Net depreciation includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 2. Summary of Significant Accounting Policies (Continued)

Management fees and operating expenses charged to the Plan for investments in the mutual funds and common trust fund are deducted from income earned on a daily basis and are not separately reflected. Consequently, management fees and operating expenses are reflected as a reduction of investment return for such investments.

Contributions : Contributions from employees of the Plan Sponsor and matching contributions from the Plan Sponsor are recorded in the year in which the employee contributions are withheld along with the applicable matching contribution. All employee and employer contributions are participant directed.

Payment of benefits : Benefit payments to participants are recorded when paid.

Expenses : As provided by the plan document, administrative expenses (excluding certain trustee and fund management expenses) of the Plan are paid by the Company.

Subsequent events : We monitor significant events occurring after the balance sheet date and prior to the issuance of the financial statements to determine the impacts, if any, of events on the financial statements to be issued. All subsequent events of which we are aware were evaluated through the filing date of this Form 11-K.

Accounting pronouncements: The Company adopted the Financial Accounting Standards Board (“FASB”) guidance related to the FASB Accounting Standards Codification (“ASC”) and the Hierarchy of Generally Accepted Accounting Principles (“GAAP”). This statement identifies the sources of accounting principles and the framework for selecting the principles used in the preparation of financial statements of nongovernmental entities that are prepared in conformity with GAAP in the United States of America. This statement replaces prior guidance related to the hierarchy of GAAP and establishes the FASB ASC as the source of authoritative accounting principles by the FASB. Rules and interpretative releases of the Securities and Exchange Commission (“SEC”) under authority of federal securities laws are also sources of authoritative GAAP for all SEC registrants. The adoption of this guidance did not have any impact on the Plan’s financial statements.

In April 2009, the FASB issued additional guidance for determining fair value when the volume and level of activity for the asset or liability have significantly decreased and identifying transactions that are not considered orderly. The additional guidance was effective for interim and annual reporting periods ending after June 15, 2009. The adoption of this provision had no material impact to the Plan’s financial statements.

In May 2009, the FASB issued guidance addressing the accounting for and disclosure requirements of events or transactions that occur after the balance sheet date, but before the financial statements are issued. The Plan adopted the guidance as of December 31, 2009, as it was effective for interim and annual periods ending after June 15, 2009. In February 2010, the FASB issued accounting guidance that, among other things, requires management to evaluate subsequent events through the date the financial statements are issued with the SEC and no longer requires that an SEC filer disclose the date through which subsequent events have been reviewed. The Company adopted the amendments upon issuance with no material impact to the Plan’s financial statements.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 2. Summary of Significant Accounting Policies (Continued)

In January 2010, the FASB released accounting guidance that requires new fair value measurement classification disclosures and clarifies existing disclosures. The guidance requires disclosures about transfers into and out of Levels 1 and 2 of the fair value hierarchy, and separate disclosures about purchases, sales, issuances and settlements relating to Level 3 measurements. It also clarifies the existing fair value disclosures regarding valuation techniques, inputs used in those valuation models and at what level of detail fair value disclosures should be provided. The guidance is effective for interim and annual reporting periods beginning after December 15, 2009, except for the disaggregation of the Level 3 activity, which is effective for interim and annual periods beginning after December 15, 2010. The guidance is not expected to materially impact the Plan’s current fair value disclosures.

Note 3. Investments

The Plan’s investments that represent 5% or more of net assets available for benefits as of December 31, 2009 or 2008, which includes the fully benefit-responsive contracts as described in Note 2, are as follows:

		December 31,
		2009				2008
Enhanced Stock Market Fund of Wachovia — 177,889 and 181,041 units, respectively		$	15,056,077			$	12,119,013
Piedmont Natural Gas Stock Fund — Payroll — 340,756 units			*				7,118,568
American Funds The Growth Fund of America (A) — 497,907 and 430,710 shares, respectively			13,607,792				8,820,949
Union Bond and Trust Company Stable Value Fund —** 1,364,514 and 1,362,500 units, respectively			31,089,243				28,739,915
Dodge & Cox Income Fund — 1,082,562 and 913,153 shares, respectively			14,030,006				10,766,077
Dodge & Cox Stock Fund — 108,683 and 87,960 shares, respectively			10,448,782				6,541,617
Munder Mid Cap Core Growth Fund (A) — 310,309 shares			6,913,690				*
American Funds Europacific Growth Fund (A) — 246,334 and 216,942 shares, respectively			9,444,446				6,076,540

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 3. Investments (Continued)

The Plan invests in a fully benefit-responsive investment contract through the Union Bond & Trust Company (“Union”) Stable Value Fund (“Fund”). Union maintains the contributions in a general account. The account is credited with earnings on the underlying investments and charged for participant withdrawals and administrative expenses. The objective of the Fund is to provide a diversified group of investments offering competitive levels of yield consistent with stable fixed-income methodology. The Fund seeks to achieve this objective by investing in conventional, synthetic and separate account investment contracts issued by life insurance companies, banks and other financial institutions.

Market value events may limit the ability of the Fund to transact at contract value with the issuer. Such events may include but are not limited to: Fund administration is amended or changed, merger or consolidation of investors, group terminations or layoffs, implementation of an early retirement program, termination or partial termination of the Fund, and failure to meet certain tax qualifications.

The fair value of the investment contract at December 31, 2009 and 2008 was $31,089,243 and $28,739,915, respectively. The average yield earned based on actual earnings was 2% at December 31, 2009.

During the year ended December 31, 2009, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:

Common trust fund — equity — Enhanced Stock Market Fund of Wachovia		$	3,150,728
Common collective trust fund — Stable value			598,856
Common stock fund — Piedmont Natural Gas Stock Fund			(1,062,954	)
Mutual funds:
Balanced			852,198
Fixed income			1,090,832
Equity			9,418,856
International equity			2,935,004
Other			150,828
Total mutual funds			14,447,718
Net appreciation in fair value of investments		$	17,134,348

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 3. Investments (Continued)

The Plan’s participants invest in various investment securities offered by the Plan. These investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities will occur and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.

Note 4. Federal Income Tax Status

The Plan has filed for a determination letter from the Internal Revenue Service regarding the Plan’s qualification under Section 401(a) and the related trust’s tax-exempt status under the provisions of Section 501(a) of the Internal Revenue Code (“IRC”). The Benefits Committee believes the Plan is currently designed and is being operated in compliance with the applicable requirements of the IRC. The Benefits Committee will make any changes deemed necessary to ensure that the Plan is granted tax-exempt status.

Note 5. Plan Termination

Although it has not expressed any intention to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.

Note 6. Exempt Party-in-Interest Transactions

Certain plan investments are shares of mutual funds and units of participation in a common trust fund managed by Wachovia. Wachovia is the trustee as defined by the Plan, and therefore, these transactions qualify as exempt party-in-interest transactions. Fees paid by the Plan to Wachovia for investment management services amounted to $270,274 for the year ended December 31, 2009.

At December 31, 2009 and 2008, the Plan held 354,417 and 340,756 units, respectively, of common stock of the Company, the sponsoring employer, with a cost basis of $5,365,652 and $4,995,402, respectively, and fair value of $6,277,041 and $7,118,568, respectively. During the year ended December 31, 2009, the Plan recorded dividend income on the common stock of the Company of $221,066.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 7. Fair Value of Financial Instruments

The Plan’s assets as reported in the Statement of Net Assets Available for Benefits as “Participant-directed investments” are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and their consideration within the fair value hierarchy levels. The following tables set forth, by level within the fair value hierarchy, the Plan’s assets at fair value as of December 31, 2009 and 2008:

		December 31, 2009
						Significant
		Quoted Prices				Other				Significant
		in Active				Observable				Unobservable
		Markets				Inputs				Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Mutual funds:
Small cap		$	8,919,712			$	—			$	—			$	8,919,712
Mid cap			8,818,433				—				—				8,818,433
Large cap			24,056,574				—				—				24,056,574
Foreign			12,460,921				—				—				12,460,921
Moderate allocation			6,297,086				—				—				6,297,086
Bond funds — intermediate and inflation adjusted			15,513,246				—				—				15,513,246
Common stock fund			6,277,041				—				—				6,277,041
Common trust fund			15,056,077				—				—				15,056,077
Common collective trust fund			—				31,089,243				—				31,089,243
Participant loans receivable			—				—				5,319,260				5,319,260
Total assets at fair value		$	97,399,090			$	31,089,243			$	5,319,260			$	133,807,593

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 7. Fair Value of Financial Instruments (Continued)

		December 31, 2008
						Significant
		Quoted Prices				Other				Significant
		in Active				Observable				Unobservable
		Markets				Inputs				Inputs
		(Level 1)				(Level 2)				(Level 3)				Total
Mutual funds:
Small cap		$	5,349,691			$	—			$	—			$	5,349,691
Mid cap			5,696,756				—				—				5,696,756
Large cap			15,362,566				—				—				15,362,566
Foreign			7,606,199				—				—				7,606,199
Moderate allocation			5,251,176				—				—				5,251,176
Bond funds — intermediate and inflation adjusted			12,089,416				—				—				12,089,416
Common stock fund			7,118,568				—				—				7,118,568
Common trust fund			12,119,013				—				—				12,119,013
Common collective trust fund			—				28,739,915				—				28,739,915
Participant loans receivable			—				—				5,147,012				5,147,012
Total assets at fair value		$	70,593,385			$	28,739,915			$	5,147,012			$	104,480,312

In the December 31, 2008 schedule above, the Plan reclassified $28,739,915 of its common collective trust fund investment from Level 3 to Level 2 (to conform to the current year presentation) to reflect the type of inputs available for determining fair value.

Level 3 Gains and Losses

The table below sets forth a summary of changes in the fair value of the Plan’s level 3 assets for the year ended December 31, 2009.

Piedmont Natural Gas Company, Inc. 401(k) Plan

Notes to Financial Statements

Note 7. Fair Value of Financial Instruments (Continued)

		Participant
		Loans
		Receivables
Balance, beginning of year		$	5,147,012
Realized gains			—
Unrealized gains relating to instruments still held at the reporting date			—
Purchases, sales, issuances and settlements (net)			172,248
Balance, end of year		$	5,319,260

Note 8. Reconciliation of Financial Statements to Form 5500

The following is a reconciliation of net assets for benefits per the financial statements to the Form 5500:

		December 31
		2009				2008
Net assets available for benefits as presented in these financial statements		$	133,661,718			$	106,867,605
Adjustment from fair value to contract value for fully benefit-responsive investment contracts			145,875				(1,570,394	)
Net assets available for benefits per the Form 5500		$	133,807,593			$	105,297,211

The following is a reconciliation of the net increase in net assets available for benefits per the financial statements to Form 5500:

		Year Ended
		December 31,
		2009
Total net increase per the financial statements		$	26,794,113
Change in adjustment from fair value to contract value for fully benefit-responsive investment contracts			1,716,269
Total net income per the Form 5500		$	28,510,382

Piedmont Natural Gas Company, Inc. 401(k) Plan

Form 5500, Schedule H, Part IV, Line 4i — Schedule of Assets (Held at End of Year)
December 31, 2009

		Description of investment
		including maturity date,
Identity of issuer, borrower,		rate of interest, collateral,		Current
lessor, or similar party		par or maturity value		value
*Enhanced Stock Market Fund of Wachovia		Common trust fund, 177,889 units		$	15,056,077
*Piedmont Natural Gas Stock Fund		Common stock fund, 354,417 units			6,277,041
*Evergreen Special Values Fund (A)		Mutual fund, 283,696 shares			5,046,957
American Funds The Growth Fund of America (A)		Mutual fund, 497,907 shares			13,607,792
American Funds Balanced Fund (A)		Mutual fund, 388,469 shares			6,297,086
Union Bond & Trust Company Stable Value Fund**		Common collective trust fund, 1,364,514 units			31,089,243
Dodge & Cox Stock Fund		Mutual fund, 108,683 shares			10,448,782
Columbia Mid Cap Value Fund (Z)		Mutual fund, 171,908 shares			1,904,743
T. Rowe Price New Horizons Fund		Mutual fund, 151,398 shares			3,872,755
Munder Mid Cap Core Growth Fund (A)		Mutual fund, 310,309 shares			6,913,690
Dodge & Cox Income Fund		Mutual fund, 1,082,562 shares			14,030,006
American Funds Europacific Growth Fund (A)		Mutual fund, 246,334 shares			9,444,446
Thornburg International Value Fund		Mutual fund, 119,087 shares			3,016,475
American Century Inflation Adjustment Bond Fund Advisor		Mutual fund, 106,975 shares			1,483,240
*Various participants		Loans to participants, at interest rates from 6.77% to 8.53% with maturities ranging from 2010 to 2024			5,319,260
				$	133,807,593

All investments are participant directed; therefore, cost information has not been presented.

SIGNATURE

The Plan . Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.

Exhibit Index

23.1		Consent of Independent Registered Public Accounting Firm — Piedmont Natural Gas Company, Inc. 401(k) Plan

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