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Press Release

04/27/2006

Progress Energy files license renewal application with FERC for its Tillery and Blewett hydroelectric plants

RALEIGH, N.C. (April 27, 2006) - On April 26, Progress Energy submitted a license renewal application to the Federal Energy Regulatory Commission (FERC) to relicense the Tillery and Blewett hydroelectric plants in North Carolina. Since 2003, the company has worked with stakeholders, including plant neighbors and local, state and federal agencies, to develop an application that balances the need for generation from the plants with environmental impacts and recreational activities.

"The company's application strikes a balance between competing uses and interests for this public resource," said Phil Lucas, project manager. "We believe this application will allow Progress Energy to continue to operate the facilities in a safe, economical manner during the next license term while maintaining environmental stewardship."

In 1958, the Federal Power Commission, predecessor of FERC, issued Carolina Power & Light a 50-year license for the project.

The Tillery Plant, located near Mt. Gilead, N.C., has a generating capacity of 86 MW and the Blewett Plant, located near Rockingham, N.C., has a generating capacity of 22 MW. The plants are an integral part of the Progress Energy system and are used to provide electricity for nearly 80,000 homes in the Carolinas. These plants have operated safely since the facilities were built in 1912 (Blewett) and in 1928 (Tillery).

To learn more about Progress Energy's hydroelectric plants and the license application process, go to http://www.progress-energy.com/aboutenergy/powerplants/hydro/index.asp.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 diversified energy company with more than 24,500 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 also includes nonregulated operations covering merchant generation, energy marketing and natural gas exploration. Progress Energy was the 2005 recipient of 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 http://www.progress-energy.com.

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