Progress Energy Provides 2009 Ongoing Earnings Guidance and Updates 2008 Guidance

January 5, 2009

RALEIGH, NC – January 5, 2009 – Progress Energy (NYSE: PGN) announced today it expects 2009 ongoing earnings guidance to be $2.95 to $3.15 per share.

In the midst of a global economic slowdown, our company is continuing to deliver superior service for our customers, create value for our shareholders and control our costs, said Bill Johnson, chairman, president and CEO of Progress Energy. We know 2009 will be a challenging year, but by continuing to effectively manage our business, we expect our ongoing earnings for 2009 to be in the $2.95 to $3.15 per share range. In addition to our continued cost management strategies, we are also reducing our planned capital expenditures for 2009 by approximately $250 million.

The key earnings drivers in 2009 are projected to be revenue growth primarily from new wholesale customers, AFUDC associated with new plant investment, continued cost management and lower depreciation and amortization expenses. These earnings drivers are projected to be partially offset by higher pension expenses and increased financing costs. Earnings guidance for 2009 reflects adjusted retail revenue expectations due to the slowing economy.

The company also announced that results for 2008 are expected to be at the lower end of the previously announced range of $2.95 – $3.05 per share, primarily due to mild weather across the service territories in December and the continuing impact of the slowing economy.

The 2008 and 2009 ongoing earnings guidance excludes any impacts from the CVO mark-to-market adjustment, potential impairments and discontinued operations of other businesses. Progress Energy is not able to provide a corresponding GAAP equivalent for the 2008 and 2009 earnings guidance figures due to the uncertain nature and amount of these adjustments.

The company will provide additional discussion of its 2008 and 2009 earnings during its year-end earnings conference call on Feb. 12 and its analyst meeting on Feb. 27. The company will release additional details on accessing these calls in late January.

Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energy company with more than 21,000 megawatts of generation capacity and $9 billion in annual revenues. The company observed its 100th anniversary in 2008. Progress Energy includes two major utilities that serve 3.1 million customers in the Carolinas and Florida. The company is the 2006 recipient of the Edison Electric Institute’s Edison Award, the industry’s highest honor, in recognition of its operational excellence. The company also is the first utility to receive the prestigious J.D. Power and Associates Founder’s Award for customer service. Progress Energy 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.

For more information about Progress Energy, visit the company’s Web site at