ST. PETERSBURG, Fla. (March 31, 2006) -- Progress Energy Florida (PEF) today filed a plan with state regulators that will continue to improve air quality by reducing power plant emissions at its Anclote and Crystal River plants. The company's Integrated Clean Air Compliance Plan will meet federal environmental rules by adding emission controls to these plants.

The Clean Air Interstate Rule (CAIR), Clean Air Mercury Rule (CAMR) and Clean Air Visibility Rule (CAVR) are regulations put into effect by the federal government to improve air quality by requiring significant reductions in nitrogen oxides (NOx), sulfur dioxide (SO₂) and mercury emissions from fossil-fueled power plants.

The first compliance dates fall in 2009, providing a short timeframe in which to plan, design, build and install controls. To meet these federal environmental rules, PEF expects to invest approximately $736 million in capital costs through the end of 2016. As with all major projects, the company will continue to review cost estimates and schedules.

The costs associated with rule compliance are not unusual given the highly complex technologies that must be installed at the plants. A petition to recover those costs, which will likely occur once the equipment is in service, has also been filed with the Florida Public Service Commission.

Summary of Progress Energy Florida's Compliance Plan

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.

Caution regarding forward-looking statements:

Some of the statements provided in this release include forward-looking information, in addition to historical information. Progress Energy Florida cautions that there can be no assurance that such expected results will be realized and that there are various important factors that could cause actual results to differ materially from those indicated in the forward-looking statements, such as, but not limited to (i) changes in government regulations (including environmental regulations); (ii) weather and other natural phenomena; (iii) factors affecting the overall cost of the project, including such things as cost overruns, additional design requirements and price increases; (iv) political, legal, market and economic conditions; (v) timely completion of applicable permitting requirements and regulatory approvals; and (iv) other factors, whether discussed above or in reports filed by Progress Energy Florida (and its affiliates) with the Securities and Exchange Commission, including its most recent Form 10-K filed March 10, 2006. The company expressly disclaims any duty to update the forward-looking information presented in this release.

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Media contact: Progress Energy Florida24-hour media line (866) 520-6397