POLK COUNTY, FLA. (December 9, 2003) -- Progress Energy Florida has placed into service the second generating unit at its Hines Generation Complex in Polk County, Fla. The newly completed natural gas-fueled combined-cycle unit adds 516 megawatts (MW) of electric generating power to the Progress Energy power plant fleet.

"As the demand for electricity in Florida grows, Hines 2 builds on Progress Energy's commitment to retain a 20 percent reserve margin," said Bill Habermeyer, Progress Energy Florida's president and CEO. "We plan to continue to add new generation sources to serve our customers, utilizing the most cost effective, reliable and energy-efficient means."

A combined-cycle unit consists of two combustion turbine (CT) generators and a system for recovering exhaust heat from the CTs to produce steam, which generates more electricity by sending the steam through a steam turbine. For the same amount of fuel, the combined-cycle plant generates about 50 percent more electricity, making it highly efficient. The plant also will be equipped with state-of-the-art air emission controls.

Progress Energy currently has one 482-MW natural gas fueled combined-cycle plant operating at the Hines site. Construction on a third unit at Hines is scheduled to begin in February and will be completed December 2005. The company recently began the bidding process for a proposed fourth unit at the site.

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. For more information about Progress Energy, visit the company's Web site at: www.progress-energy.com.

Contact: Corporate Communications: (866) 520-6397