Peat was traded to Carolina in exchange for Colin Forbes.  Link is below.  Due to his unfortunate injury and the way other guys have stepped up this year, I feared that we wouldn't see Peaty back up here.  I'm sorry to see him leave because the guy had heart.  Good luck to him in Carolina/Lowell.  Welcome back to Forbes.  He'll be assigned to Hershey initially.  He was always around for a call-up replacement.  It's unfortunate for him that he never learned to play to his size -- 6'4" and 224 lbs.  He sometimes showed flashes of being a good steady journeyman who could knock people off the puck and pitch in some goals.  However, at other times, he'd be invisible on the ice.  Oh well...I would have settled for anyone with more than one season of experience playing defense after that horrible meltdown in last night's game.  The Caps deserved to lose for the way they played, especially in the last 10 minutes or so.  It drove me nuts. 

http://www.washingtoncaps.com/news/news.asp?story_id=3705

Here's part of a post on official by the4thline, says it better than I ever could:

the4thline

Today, 01:11 PM Post #19

Member Group: Members Posts: 334 Joined: 12-September 05 Member No.: 2,246

Good luck to Peaty, I hope he turns out to be another Alex Henry. This trade within the division could come back and bite us if he can turn things around. I had heard from someone who had "insider information" that Peat and Hanlon had a falling out 2 years ago and he was essentially done with the Caps Org. before the season began. After being sent down to Hershey he asked to be traded, hence his crappy play and being scratched the last week or so. Hopefully he gets a fresh start and brings the pain against us later this season.