The project consists of two plants -- Tillery and Blewett Falls. The Tillery Development, located near Mt. Gilead, N.C., has a licensed capacity of 84 MW and the Blewett Falls Development, located six miles west of Rockingham, N.C. has a licensed capacity of 24.6 MW.

During the relicensing process, Progress Energy will work closely with state, federal and local government officials, as well as community leaders and others, to identify and consider the various needs and priorities for the resource, including environmental, cultural, recreational, economic and electric generation issues. Progress Energy will conduct public site visits at the plants on Tuesday, March 25. The company will hold public meetings at 1:30 p.m. and 7 p.m. on Wednesday, March 26, at Cole Auditorium, Richmond Community College in Hamlet, N.C. These meetings will allow the agencies and the public an opportunity to provide comments concerning the company's Initial Consultation Document (ICD) and to identify potential issues related to the two plants.

"The Tillery and Blewett Falls hydroelectric plants are an integral part of the system we use to meet the needs of millions of people in the Carolinas," said W.S. "Skip" Orser, president-Energy Supply for Progress Energy. "We look forward to working cooperatively with the agencies and communities that have a stake in the continued successful operation of both plants."

The Tillery and Blewett Falls plants have been operated safely by Progress Energy Carolinas and its predecessors since the facilities were built in 1928 and 1912, respectively. In 1958, the Federal Power Commission, the predecessor of the Federal Energy Regulatory Commission (FERC), issued to Carolina Power & Light a 50-year license for the project, designated as FERC No. 2206. This initial license expires April 30, 2008. Progress Energy is initiating the relicensing process for the Project with the submittal of this ICD.

Located within an area known as the Uwharrie Lakes region of the Yadkin- Pee Dee watershed, the two plants are an important part of Progress Energy's diverse fleet of power plants that provide power to communities in the Carolinas. These lakes were created as a result of the construction of six hydroelectric developments. The Tillery and Blewett Falls developments are the two farthest downstream of these six developments.

Progress Energy (NYSE: PGN - News), headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 21,900 megawatts of generation capacity and $8 billion in annual revenues. The company's holdings include two electric utilities serving more than 2.7 million customers in North Carolina, South Carolina and Florida. Progress Energy also includes nonregulated operations covering merchant generation, energy marketing, natural gas exploration, 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.

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