Progress Energy Carolinas Seeks Fuel Rate Decrease in South Carolina

Proposal will reduce annual cost by more than $24 for typical household

FLORENCE, SC –  May 7, 2009 – Progress Energy Carolinas today filed a request to lower the fuel rate charged to its South Carolina customers. If approved, the decrease will result in a monthly savings of about $2.05 for a residential customer using 1,000 kilowatt-hours (kWh), and an annual savings of more than $24.

The costs of coal, natural gas and other fuels used to generate electricity rose significantly over the last decade but stabilized in late 2008 and early 2009. Progress Energy Carolinas is asking the Public Service Commission of South Carolina (PSC) to approve a $13.3 million decrease in the fuel component of its rates. If approved, the decrease would take effect July 1.

If approved, the average decrease would be about 2 percent for residential customers; 2.3 percent for commercial customers and 2.7 percent for industrial customers.

The fuel portion of the company’s rates is adjusted annually by the PSC to reflect the actual cost of fuel the utility uses to produce electricity to meet customer demand. By law, Progress Energy does not make a profit from the fuel charge.

The other major component of the rates, the base rate, has not increased since 1988.

Progress Energy’s power plants, including the H.B. Robinson Nuclear Plant near Hartsville, have been recognized nationally for sustained reliable and efficient performance. That performance, coupled with the company’s diversity of power plant resources, has helped to keep fuel expenses as low as possible for customers.

We continue to do all we can to generate and deliver energy and great customer service as efficiently and cost-effectively as possible, said Melody Birmingham-Byrd, vice president of Progress Energy Carolina’s Southern Region, which includes all of the company’s South Carolina service area. We are pleased to be able to lower prices for our customers, and we’ll continue to work hard to increase efficiency, while continuing to meet our customers’ and regulators’ expectations for reliable and environmentally sound service.

Progress Energy encourages customers to learn all they can about using energy wisely – to save energy and money. Customers can save up to 20 percent on their energy costs by making simple changes at home. Cleaning air filters, replacing incandescent light bulbs with compact-fluorescent bulbs, adjusting the thermostat and sealing windows and doors can result in noticeable savings. For more energy-efficiency tips, visit www.savethewatts.com. Customers also can learn about energy-efficiency programs and incentives at www.progress-energy.com.

Progress Energy (NYSE:PGN)

Progress Energy (NYSE:PGN) , headquartered in Raleigh, N.C., is a Fortune 500 energy company with more than 21,000 megawatts of generation capacity and $9 billion in annual revenues. Progress Energy includes two major electric utilities that serve approximately 3.1 million customers in the Carolinas and Florida. The company has earned the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence, and was the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. The company is pursuing a balanced strategy for a secure energy future, which includes aggressive energy-efficiency programs, investments in renewable energy technologies and a state-of-the-art electricity system. Progress Energy celebrated a century of service in 2008. Visit the company’s Web site at www.progress-energy.com.