The company also to sign new agreements with Jennings and Reddick

ST. PETERSBURG, FLA. (January 7, 2004) - The city commission of Apopka today formally approved a new 30-year electric utility franchise with Progress Energy Florida. Through its franchise, Progress Energy serves nearly 13,000 customers in Apopka.

"Progress Energy has been a good partner to the City of Apopka for many years," said Apopka City Manager Richard Anderson. "We firmly believe that Apopka residents are best served by a continuation of that partnership."

A "franchise" is an agreement between a municipality and Progress Energy describing how the company will work within a city's public rights-of-way. The agreement authorizes Progress Energy to collect and remit to a municipality 6 percent of revenues, often referred to as a "franchise fee," which the municipality may use for a variety of purposes.

Progress Energy completed a new 30-year franchise with Jennings, a town in Hamilton County, on Tuesday, Jan. 6. The company also is expected to formalize a new agreement with the Town of Reddick in Marion County later this week. Once complete, Progress Energy will have signed new franchise agreements with more than 32 cities and towns in Florida since 2001.

"We look forward to continuing our long-term relationships with Apopka, Jennings and Reddick," said Billy Raley, vice president of Progress Energy Florida's North Central Region. "Progress Energy's priority is to provide reliable service to all of our customers, and we will continue working in partnership with the leaders of these communities to build upon that pledge."

Progress Energy Florida is two years through its three-year Commitment to Excellence plan. The initiative includes an overall investment of more than $100 million to improve reliability and customer service, reduce rates and increase generation reserve.

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, Clearwater, as well as the Central Florida area surrounding Orlando. For more information about Progress Energy, visit the company's Web site at: <http://www.progress-energy.com>.

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