Progress Energy Florida receives approval from state for nuclear plant

ST. PETERSBURG, Fla. (Aug. 11, 2009) -- Florida's governor and Cabinet, serving as the Siting Board, took a significant step toward securing Florida's energy future today by certifying Progress Energy Florida's plans to build two state-of-the-art nuclear power plant units in Levy County.

After a lengthy review process, Gov. Charlie Crist and his Cabinet unanimously approved the company's site certification application (SCA). The SCA includes a detailed analysis of the potential environmental impacts of the proposed plant and related transmission lines.

"This is an important milestone for the proposed Levy plant," said Vincent M. Dolan, Progress Energy Florida's president and chief executive officer. "Carbon-free nuclear power is a strategic asset in our statewide effort to become energy-independent, to reduce our reliance on more volatile-priced fossil fuels, and to provide a balanced approach to meet the challenges of growth and climate change."

Today's vote is the second of three major approvals needed before the company can begin building the nuclear plant. In July 2008, the Florida Public Service Commission approved the "needs case" for the plant. The last remaining major decision is from the Nuclear Regulatory Commission (NRC), which is expected by early 2012.

Progress Energy Florida owns about 5,100 acres in southern Levy County for the potential construction of two nuclear reactors. If built, the new plant would employ approximately 800 full-time, high-paying positions, generate another 1,000 to 2,000 indirect jobs and employ about 3,000 people at the height of construction.

Progress Energy filed the SCA with the Florida Department of Environmental Protection in June 2008. After review by the DEP and a series of public hearings, an administrative law judge supported approval in spring 2009. Today's approval by the Siting Board is one step in a lengthy process to ensure that nuclear energy remains a viable resource option for the future.

Earlier this year, the company announced an adjustment to the construction schedule for the Levy plant that shifted the timetable from the original in-service date of 2016 by a minimum of 20 months. The company is continuing to pursue the Levy County project. A new project timeline depends on negotiations currently under way with the engineering, procurement and construction vendors.

Despite what is expected to be a short-term economic downturn, Progress Energy Florida's service area remains one of the fastest-growing regions in the country. As the fourth-largest state, Florida ranks third nationally in per-capita energy consumption. Over the past three decades, the average size of a new home has grown by nearly 50 percent and uses 30 percent more electricity. Since the Crystal River nuclear plant came online in the mid-1970s, the company's customer base has more than doubled.

If approved and built, the project would be among the first nuclear plants in the country to be constructed on a greenfield site in more than 30 years, and it would involve development of one of the single largest transmission infrastructure projects in Florida's history.

Caution regarding forward-looking statements
This release contains forward-looking information within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Progress Energy, Inc. cautions that prospective rates are dependent on a number of factors that are not within the control of the company. These factors include the cost of fuel, adverse weather, energy demand, the costs to comply with environmental and other regulations, taxes and other factors. Additionally, regulatory approval of requested fuel price cost adjustments cannot be guaranteed by the company. The company expressly disclaims any duty to update any of the forward-looking information.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.6 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing more than 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy Florida is pursuing a balanced strategy for a secure energy future. That balance includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com.

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