ST. PETERSBURG, FLA. (June 25, 2008) -- Progress Energy has established a new department to set the company's strategies to meet growing energy demand and address global climate change through the use of advanced technologies and new energy-efficiency programs.

The Efficiency and Innovative Technology Department, headed by one of the company's senior officers, will lead the company's efforts to aggressively expand the use of renewable and alternative energy resources and invest in innovative energy technologies such as plug-in hybrid vehicles. The new department will also head the expansion of the company's energy-efficiency and demand-side management (DSM) programs.

"Energy efficiency, DSM programs and renewable technology are playing an increasingly significant role in Progress Energy's strategy to ensure a secure energy future for the growing communities that we serve," said Bill Johnson, chairman, president and chief executive officer of Progress Energy. "Providing the electricity needed to run homes and businesses today and in the future while addressing global climate change requires new, innovative thinking. We recognize that our customers' needs are changing, and we are committed to finding new ways to meet those needs every day."

This team will aggressively pursue cost-effective renewable energy projects, including new power plants fueled by solar energy and biomass, installation of solar photovoltaic (PV) systems at local schools and investments in hydrogen fuel cells. It will also design a first-of-its-kind distribution system demand-response system to reduce peak demand and delay the need for new power plants. Another priority for the new department is developing the necessary utility infrastructure to support the widespread use of plug-in hybrid electric vehicles and other innovative transportation technologies.

"Energy technology is changing constantly, and this move will provide senior-level leadership, accountability and the benefit of a single organization committed to driving innovation and managing our many new initiatives on behalf of our customers," said Jeff Lyash, president and chief executive officer of Progress Energy Florida.

The new department will also oversee the development and implementation of the company's portfolio of energy-efficiency and demand-side management programs. In Florida, Progress Energy has the most advanced energy-efficiency program in the nation and has provided 11.4 billion kilowatt-hours of energy savings since 1981. In the Carolinas, the company has proposed several new programs to help its customers save energy and money, including filing five new programs with the North Carolina Utilities Commission in April 2008. The company expects to file additional programs in the Carolinas this year.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy company with more than 21,000 megawatts of generation capacity and $9 billion in annual revenues. The company will observe its 100th anniversary in 2008. Progress Energy includes two major utilities that serve 3.1 million customers in the Carolinas and Florida. The company is the 2006 recipient of the Edison Electric Institute's Edison Award, the industry's highest honor, in recognition of its operational excellence. The company also is the first utility to receive the prestigious J.D. Power and Associates Founder's Award for customer service. Progress Energy serves two growing areas of the country, and the company 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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