Profile: Progress Energy, Inc. (PGN)

Progress Energy, Inc. (Progress Energy), incorporated on August 19, 1999, is an integrated electric utility holding company primarily engaged in the regulated utility business. The Company’s wholly owned regulated subsidiaries, Carolina Power & Light Company (PEC) and Florida Power Corporation (PEF) (collectively, the Utilities), each a business segment, are primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North Carolina, South Carolina and Florida. The Utilities have more than 21,000 megawatts of regulated electric generation capacity and serve approximately 3.1 million retail electric customers, as well as other load-serving entities. The Utilities operate in retail service territories. The Corporate and Other segment primarily includes the operations of the Company and Progress Energy Service Company, LLC (PESC). In March 2008, the Company sold the remaining operations of Progress Fuels Corporation (Progress Fuels) subsidiaries engaged in the coal mining business.

Electric-PEC

PEC is a regulated public utility primarily engaged in the generation, transmission, distribution and sale of electricity in portions of North and South Carolina. At December 31, 2008, PEC had a total summer generating capacity (including jointly owned capacity) of 12,415 megawatts. PEC’s service territory covers approximately 34,000 square miles, including a substantial portion of the coastal plain of North Carolina extending from the Piedmont to the Atlantic coast between the Pamlico River and the South Carolina border, the lower Piedmont section of North Carolina, an area in western North Carolina in and around the city of Asheville and an area in the north eastern portion of South Carolina. At December 31, 2008, PEC was providing electric services, retail and wholesale, to approximately 1.5 million customers. Major wholesale power sales customers include North Carolina Eastern Municipal Power Agency (Power Agency), North Carolina Electric Membership Corporation and Public Works Commission of the City of Fayetteville, North Carolina. PEC has three hydroelectric generating plants: Walters, Tillery and Blewett. PEC also owns the Marshall Plant. The total summer generating capacity for all four units is 228 megawatts.

Electric-PEF

PEF is a regulated public utility engaged in the generation, transmission, distribution and sale of electricity in portions of Florida. At December 31, 2008, PEF had a total summer generating capacity (including jointly owned capacity) of 9,360 megawatts. PEF’s service territory covers approximately 20,000 square miles in west central Florida, and includes the areas around Orlando, as well as the cities of St. Petersburg and Clearwater. PEF is interconnected with 22 municipal and nine rural electric co-operative systems. At December 31, 2008, PEF was providing electric services, retail and wholesale, to approximately 1.6 million customers. Major wholesale power sales customers include Seminole Electric Cooperative, Inc., Reedy Creek Improvement District, Tampa Electric Company, Florida Municipal Power Agency and the city of Winter Park.

Corporate and Other

The Corporate and Other segment primarily includes the operations of the Company and PESC. PESC provides centralized administrative, management and support services to Progress Energy’s subsidiaries. Essentially all of the segment’s revenues are due to PESC’s services provided to the Company’s subsidiaries.