ASHEVILLE, N.C. (Dec. 1, 2006) -- Progress Energy Carolinas announced today plans to build a new power plant in Buncombe County, N.C., adjacent to the former landfill located near the town of Woodfin. This new plant will allow the company to meet the region's need for reliable electricity.

The 130-megawatt combustion turbine (CT) power plant is scheduled to become operational in December 2009, and will be fueled by ultra-low sulfur oil, a new fuel that burns efficiently and meets North Carolina's air quality standards for minimal emissions.

Progress Energy is committed to providing a dependable and cost-effective source of power that meets the needs of growing communities. The company's balanced approach focuses on energy efficiency and conservation and provides for additional investment in renewable energy sources, while modernizing existing plants using state-of-the-art technology and investing in new generating plants.

"Progress Energy already uses a broad mix of generation resources -- including nuclear, coal-, oil- and natural gas-fired plants and hydroelectric energy -- to meet the needs of our customers in the Carolinas," said Fred Day, president and CEO of Progress Energy Carolinas. "That's important because it helps protect customers from volatility in price and supply of any single fuel source. On behalf of our customers, we will continue to use a generation mix that ensures reliable service, rate stability and environmental stewardship."

Progress Energy will invest an estimated $72 million in the Buncombe County power plant, which will provide peaking power for Progress Energy's 150,000 customers in western North Carolina. Peaking power plants generally run less than 10 percent of the time to meet short periods of heightened customer demand during the hottest and coldest days of the year.

Progress Energy is committed to environmental responsibility. The Buncombe County CT plant will be built to meet today's stringent air emission and environmental standards. The company is also investing significantly in continued emission reductions at the Asheville Plant in Skyland.

Progress Energy is seeking a long-term lease option with the Buncombe County government for approximately 78 acres adjacent to the closed Buncombe County landfill, located near the town of Woodfin. The site was selected after an extensive evaluation process, which investigated more than 30 potential sites in Buncombe and surrounding counties. The closed landfill site was selected because of its access to existing transmission lines, eliminating the need to build significant new infrastructure.

The company currently purchases the electricity produced from a project developed in partnership with Enerdyne Properties and N.C. GreenPower, a nonprofit program working to encourage the development of renewable energy resources for North Carolina's power supply. The 1-megawatt plant located near the landfill extracts methane gas from the capped landfill and burns it to produce electricity, creating a cleaner landfill environment while providing a stable and reliable source of energy.

Progress Energy will host an open house in mid-January to give area residents an opportunity to learn more about the project. Representatives will be available to answer questions and share information about the technology, siting process, schedule, environmental considerations and other information.

Progress Energy Carolinas, which serves 1.4 million customers in North Carolina and South Carolina, is a subsidiary of Progress Energy. Headquartered in Raleigh, N.C., Progress Energy is a Fortune 250 diversified energy company with more than 23,000 megawatts of generation capacity and $10 billion in annual revenues. The company's holdings include two electric utilities serving approximately 3 million customers in North Carolina, South Carolina and Florida. Progress Energy's nonregulated operations include energy marketing. Progress Energy is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. In 2005, the company also received 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 progress-energy.com.

Progress Energy media contacts:

Ken Maxwell, Community Relations Manager -- West Region at (828) 258-5019

Progress Energy Carolinas 24-hour media line at (877) 641-6397