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

Stakeholder engagement
Successful stakeholder engagement requires a commitment to actively listen, build relationships and collaborate with others to achieve objectives. We believe that constructive engagement benefits both Progress Energy and our stakeholders, and we have embraced it as an integral tool to learn what is important to our customers, communities and shareholders. We value the relationships we have built with our key stakeholders, including:

• Customers,
• Employees,
• Shareholders,
• Federal, state and local government leaders,
• Economic development leaders,
• Federal and state regulators,
• Nonprofit and nongovernmental organizations, and
• Colleges and other educational institutions.

Our external relations, corporate communications and investor relations organizations develop and maintain these stakeholder relationships through a variety of means. These include face-to-face meetings, public workshops, open houses and focus group research. These conversations ensure that we understand the needs and expectations of our stakeholders so that we can continue to meet them.

Working together for better decisions
One of the best examples of how Progress Energy involves stakeholders in our business planning is the siting of new transmission lines. Selecting and evaluating proposed transmission routes and building lines is a complex, multiyear effort, and we have learned that our ultimate success depends on being transparent, inclusive and responsive throughout our decision-making process. We work closely with affected communities, state regulators and other interested parties from the outset of project planning through construction and operation.

Public information workshops are held for any major transmission enhancement to explain the need for new transmission and gather input on various routes for the needed facilities. We publicize these workshops through the local media and by sending letters to landowners whose property lies within 200 feet of any proposed route. At the workshops, company representatives are on hand to answer questions about the need for the line, proposed routes, project schedule, engineering and other topics.

Feedback from participants is used to evaluate and rank the line options. For example, some residents might cite avoiding residences as the most important factor to use when evaluating route alternatives, while others might prefer minimizing impacts to environmentally sensitive areas or cultural resources. When a final proposed route is chosen, we communicate this decision by sending a letter to everyone who attended the public meeting(s) on the project and meeting individually with affected property owners.

Consensus-based policies and regulations
Our company is committed to maintaining a constructive legislative and regulatory climate to ensure that we can continue to provide reliable and affordable energy to our customers. We routinely communicate with elected officials on energy issues and advocate clear, thoughtful policies that provide shared benefits. Our company’s employee Political Action Committee (PAC) also makes corporate contributions to candidates and political parties. All government and political activities are handled in compliance with Progress Energy’s Code of Ethics, and political contributions are disclosed as required by law.

One recent success in using a constructive, transparent process to produce a consensus solution was the comprehensive North Carolina energy bill passed in 2007. This law created the first renewable energy and energy-efficiency portfolio standard in the Southeast. It allows us to aggressively pursue renewable energy and energy-efficiency programs, while giving us assurances on cost recovery for qualified energy-efficiency and demand-side management programs; reagents used in power plants to improve air quality; and investments in renewable and energy-efficiency technology research and development. The law was the result of several months of negotiations among a diverse stakeholder group, including Progress Energy, other utilities, regulators, large industrial customers, consumer advocates and environmental organizations.

We continue to seek additional ways to engage with stakeholders and communities as we plan for demand growth in our service territories. This engagement takes many forms, including both informal and formal processes. Our goal is to ensure that varied perspectives are represented as we make critical decisions about serving our regions’ growing energy needs.