Corporate Responsibility Letter From CEO Executive Summary Company Overview	Customers Balanced Solution for Growing Energy Demand Reliable Power Customer Satisfaction	Communities Community Investments Economic Development Supplier Diversity Stakeholder Engagement	Environment Environmental Management Global Climate Change Renewable and Alternative Energy Advanced Vehicle Technologies Air Quality Water Resources Waste Management Remediation Natural Resources Research and Development	Employees Health and Safety Engaged Employees	Shareholders Corporate Governance Ethics Program Financial Highlights	Conclusion GRI Index Safe Harbor for Forward-Looking Statements Employee Recognition

In 2009, we will invest $5.5 million in EPRI research programs and projects. Of this, approximately $1.7 million will be related to global climate change policies and carbon reduction options, renewable energy, end-use efficiency and electric transportation. This represents a continuation of the significant levels of funding established last year and demonstrates our commitment to the advancement of alternative energy.

The Progress Energy Foundation contributed $150,000 in the fourth quarter of 2005 to the Carolina Environmental Program at the University of North Carolina at Chapel Hill for the program’s SEEED project. SEEED is an education and research project that encourages faculty and graduate students to examine sustainable energy. The Progress Energy grant is used for applied research that will be useful to our company and the broader energy and policy community.

Additional environmental partnerships
PowerTree Carbon Company
In 2003, we joined 24 other electric power companies to establish the PowerTree Carbon Company, LLC. The companies have committed $3 million to establish six bottomland hardwood reforestation projects in the Lower Mississippi Alluvial Valley (LMAV) states of Louisiana, Mississippi and Arkansas. As the trees grow, they will capture 1.6 million tons of CO2 from the atmosphere and provide critical habitat for wildlife.

Southeast Regional Carbon Sequestration Partnership
We partnered with the Southern States Energy Board, EPRI and other utilities on a carbon sequestration study dedicated to the development and deployment of carbon-sequestration technology in the 11 states in the Southeast. The goal of the two-phase study is to identify and evaluate options for sequestering CO2 in the ground. The first phase was completed in early 2007 and concluded that most of the power plants in the Carolinas are underlain by geologic units that are not suitable for long-term storage of large volumes of CO2. This means that long-distance pipelines would be required to reach geologic sinks.

Asia-Pacific Partnership
The Asia-Pacific Partnership on Clean Development and Climate is a multi-nation public-private partnership among government and private sector entities to promote investment in clean energy technologies. We are participating in the Power Generation and Transmission Task Force and sharing information on best practices in generation and transmission system efficiency as well as DSM programs. In February 2008, two of our employees attended a best practices session in India. Progress Energy is helping efforts to expand the electronic media exchange with India regarding their areas of interest. A pilot program is being developed and should be operational by mid-2009. Progress Energy hosted a meeting of the partnership in April 2009.