SOUTHPORT, N.C. (October 18, 2004) -- Progress Energy's Brunswick Nuclear Power Plant, located near Southport, N.C., has "significant positive impacts" on four local counties -- Brunswick, Columbus, New Hanover and Pender -- according to a recent study conducted by two UNC Wilmington professors of economics.

"Prior to this study, very little was known about the power plant's economic impact to the area, although many people believed it to be substantial," said Dr. Claude Farrell, professor of economics at the University of North Carolina Wilmington. "The Progress Energy Brunswick Plant is certainly a major asset to the four-county regional economy and will continue to be in the future."

The Economic Impact Study revealed that the Brunswick Plant's impact on gross output in the four counties was $901 million dollars in 2003, which is 14 percent of the total regional output value for the area. A total of 2,030 jobs -- or 13 out of every 1,000 workers in the region -- are supported by the plant's operation through direct employment and by local companies providing materials and services, as well as through indirect means such as housing, retail and taxes.

"The Brunswick Plant supported $184.7 million in property income and $100.8 million in personal income, including $12.4 million of self-employment income in the region," said Dr. William W. "Woody" Hall Jr., professor of economics and director of the Center for Business and Economics Services at UNCW.

The study's report also indicates that the bulk of the facility's impact on economic output occurred in its host county of Brunswick. "In 2003, the facility supported $490.2 million in output, almost 40 cents out of every dollar of economic activity produced in the county," Dr. Hall pointed out.

In New Hanover County, almost $352 million or 8 percent of the county's total output was attributed to the Brunswick Plant. The facility supported 6 percent of total economic output in both Columbus and Pender counties in 2003.

In July 2004, Progress Energy contracted with Drs. Farrell and Hall to conduct a study of the impact the Brunswick Plant has on the local economy. "We are often asked how much of an economic impact our operations have on the communities located near our power plant," said Neil Gannon, Progress Energy vice president of the Brunswick Plant. "We felt it would be significant. This study confirms that we not only produce a vital product to the region, but also help to energize the economy."

Beyond the direct impacts to the economy such as employee salaries and payments for materials and supplies, there are also indirect and induced impacts that reflect the "ripple/multiplier effect" associated with operating and maintaining the facility. For example, a portion of every dollar received by employees and suppliers is re-spent in the local economy, and this recirculation generates additional income and revenue for the region. "The same can be said for the Brunswick Plant's impact on property taxes in the four-county region, with the facility supporting 3.7 percent of the value of all real property taxes," said Dr. Hall.

In Brunswick County, the economic output attributable to the Brunswick Plant in 2003 was calculated to be $490.2 million, almost 40 percent of the total county output. The facility provided directly and indirectly 3.2 percent of the county's total employment and 5.1 percent of the property tax collections. Approximately 540 of the Brunswick Plant's 1,000 full-time employees live in Brunswick County. "The Brunswick Nuclear Plant is the largest single stand-alone contributor to the Brunswick County economy with respect to income, employment and taxes," concludes Dr. Farrell.

For New Hanover County, the Brunswick nuclear facility supported 8 percent of the value of the total county economic output, nearly 1 percent of total county employment, and 2.8 percent of county property tax collections in 2003. Approximately 390 of the power plant's employees live in New Hanover County. "With the power plant located in Brunswick County, we did not originally expect the total economic output within New Hanover County to be $351.7 million and the facility's contribution to the county tax base to be $470 million, both of which are significant financial impacts to the county," said Dr. Farrell.

For Columbus and Pender counties, the Brunswick Plant supported 6 percent of the value of each of the total counties' output in 2003. In Columbus County, the facility supported 0.4 percent of total county employment and 2.6 percent of county property taxes. In Pender County, the Brunswick Plant supported 0.3 percent of total county employment and 5.8 percent of county property tax collections. "These are relatively large economic impacts for these more distant counties, due mostly to the plant employees who live in these counties as well as the enterprises that support the operation of the facility and the employees' families," said Dr. Farrell.

To view the entire report, please go to http://progress-energy.com/images/newsletter/economicimpact.pdf.

* * *

Dr. William "Woody" Hall Jr. has been a professor of economics at UNCW's Cameron School of Business since 1974. He earned his master's degree and Ph.D. from Clemson University and his bachelor's degree from Presbyterian College.

Dr. Claude Farrell has been a professor of economics at UNCW's School of Business since 1972. He earned his Ph.D., master's and bachelor's degrees from N.C. State University.

University of North Carolina Wilmington's Cameron School of Business focuses its business education on the technical, analytical and interpersonal skills students will need to lead the business world through the first half of the 21st century. Through such programs as the Center for Business and Economics Services, the Cameron School is committed to service to the community as well as to grow the intellectual capital of the region. All degree programs are fully accredited by the Association to Advance Collegiate Schools of Business International.

The Brunswick Nuclear Plant's two boiling water reactors generate approximately 1,800 megawatts of electricity, providing nearly 25 percent of the electricity utilized by Progress Energy's 1.3 million customers in the Carolinas. It is located on 1,200 acres at the mouth of the Cape Fear River and is owned jointly by Progress Energy (81.67 percent) and the N.C. Eastern Municipal Agency (18.33 percent).

The Brunswick units began commercial operation in 1975 and 1977 and are operated as "base load" generators of electricity, operating at full power continuously except when maintenance or refueling activities are needed. For more information or for answers to your questions, please call the Brunswick Plant Visitors Center at 910-457-2418.

Progress Energy (NYSE: PGN), headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,000 megawatts of generation capacity and $9 billion in annual revenues. The company's holdings include two electric utilities serving approximately 2.9 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering competitive generation, energy marketing, natural gas production, fuel extraction, rail services and broadband capacity. For more information about Progress Energy, visit the company's Web site at http://www.progress-energy.com.

# # #

Media Contacts:
UNC Wilmington Professor of Economics: Dr. William Hall - 910-962-3419
Progress Energy Corporate Communications: Mike McCracken - 910-457-2900