ST. PETERSBURG, Fla. (March 23, 2006) -- Progress Energy Florida is implementing an innovative pilot project designed to assist families in low-income neighborhoods with escalating energy costs.

In conjunction with Pinellas County Urban League, the Florida Department of Community Affairs, and the St. Petersburg Water Resources Department, Progress Energy will install energy-efficiency improvements in about 300 homes and apartments. Customers also will learn simple ways to manage their energy use.

"This is an opportunity to help an entire neighborhood better manage the escalating costs of fuel and energy," said Vincent M. Dolan, vice president of regulatory and customer relations for Progress Energy Florida. "Plus, the educational side of the program will allow families to continue to benefit from the energy-efficiency measures for years to come."

The Neighborhood Energy Saver pilot begins today in Palmetto Park in the Midtown area of St. Petersburg. The project will install energy-efficiency improvements in homes and also will educate families on saving money. This door-to-door approach is unique because it impacts an entire neighborhood and because of its outreach -- families will learn how to continue the energy-efficiency measures.

"The Department of Community Affairs identified the St. Petersburg Front Porch community as a perfect fit for Progress Energy's Neighborhood Energy Saver pilot program," said Esrone McDaniels, director of the DCA's Office of Urban Opportunity. "When a program can help citizens in low-income areas save money on their energy bills and learn how to keep those costs down permanently, it is an ideal partnership for a Front Porch community."

The project will include improvements at no cost to participants, including:

• Compact fluorescent lighting
• Water-heater wraps and insulation for water pipes
• Water conservation shower heads and faucets
• Refrigerator-coil cleaning and brush
• A year's supply of air filters
• Additional weatherization measures

Homeowners are expected to save as much as $150 a year in energy costs. Progress Energy will decide by the end of the summer whether to expand the pilot project across its service territory. For more information on energy efficiency tips that all homeowners can benefit from, visit www.progress-energy.com/save.

Progress Energy Florida, a subsidiary of Progress Energy (NYSE: PGN), provides electricity and related services to more than 1.5 million customers in Florida. The company is headquartered in St. Petersburg, Fla., and serves a territory encompassing over 20,000 square miles including the cities of St. Petersburg and Clearwater, as well as the Central Florida area surrounding Orlando. Progress Energy is the 2005 recipient of the prestigious J.D. Power and Associates Founder's Award for dedication, commitment and sustained improvement in customer service. For more information about Progress Energy, visit the company's Web site at www.progress-energy.com.

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Media contact: Progress Energy Florida 24-hour media line (866) 520-6397