Progress Energy headquartered in Raleigh N

"We know 2009 will be a challenging year, but by continuingto effectively manage our business, we expect our ongoing earnings for 2009 tobe in the $2.95 to $3.15 per share range. In addition to our continued costmanagement strategies, we are also reducing our planned capital expendituresfor 2009 by approximately $250 million."The key earnings drivers in 2009 are projected to be revenue growthprimarily from new wholesale customers, AFUDC associated with new plantinvestment, continued cost management and lower depreciation and amortizationexpenses. These earnings drivers are projected to be partially offset byhigher pension expenses and increased financing costs. Earnings guidance for2009 reflects adjusted retail revenue expectations due to the slowing economy.The company also announced that results for 2008 are expected to be at thelower end of the previously announced range of $2.95 - $3.05 per share,primarily due to mild weather across the service territories in December andthe continuing impact of the slowing economy.The 2008 and 2009 ongoing earnings guidance excludes any impacts from theCVO mark-to-market adjustment, potential impairments and discontinuedoperations of other businesses. Progress Energy is not able to provide acorresponding GAAP equivalent for the 2008 and 2009 earnings guidance figuresdue to the uncertain nature and amount of these adjustments.The company will provide additional discussion of its 2008 and 2009earnings during its year-end earnings conference call on Feb 12 and itsanalyst meeting on Feb 27. The company will release additional details onaccessing these calls in late January.Progress Energy, headquartered in Raleigh, N.C., is a Fortune 250 energycompany with more than 21,000 megawatts of generation capacity and $9 billionin annual revenues.

The company observed its 100th anniversary in 2008.Progress Energy includes two major utilities that serve 3.1 million customersin the Carolinas and Florida. The company is the 2006 recipient of the EdisonElectric Institute's Edison Award, the industry's highest honor, inrecognition of its operational excellence. The company also is the firstutility to receive the prestigious J.D Power and Associates Founder's Awardfor customer service. Progress Energy is pursuing a balanced strategy for asecure energy future, which includes aggressive energy efficiency programs,investments in renewable energy technologies and a state-of-the-artelectricity system.

For more information about Progress Energy, visit thecompany's Web site at http:// .Caution Regarding Forward-Looking Information:This release contains forward-looking statements within the meaning of thesafe harbor provisions of the Private Securities Litigation Reform Act of1995. The matters discussed in this document involve estimates, projections,goals, forecasts, assumptions, risks and uncertainties that could cause actualresults or outcomes to differ materially from those expressed in the forward-looking statements.Examples of factors that you should consider with respect to any forward-looking statements made throughout this document include, but are not limitedto, the following: the impact of fluid and complex laws and regulations,including those relating to the environment and the Energy Policy Act of 2005;the anticipated future need for additional baseload generation and associatedtransmission facilities in our regulated service territories and theaccompanying regulatory and financial risks; the financial resources andcapital needed to comply with environmental laws and renewable energyportfolio standards and our ability to recover related eligible costs undercost-recovery clauses or base rates; our ability to meet current and futurerenewable energy requirements; the inherent risks associated with theoperation of nuclear facilities, including environmental, health, regulatoryand financial risks; the impact on our facilities and businesses from aterrorist attack; weather and drought conditions that directly influence theproduction, delivery and demand for electricity; recurring seasonalfluctuations in demand for electricity; the ability to recover in a timelymanner, if at all, costs associated with future significant weather eventsthrough the regulatory process; economic fluctuations and the correspondingimpact on our customers, including downturns in the housing and consumercredit markets; fluctuations in the price of energy commodities and purchasedpower and our ability to recover such costs through the regulatory process;our ability to control costs, including O&M and large construction projects;the ability of our subsidiaries to pay upstream dividends or distributions toProgress Energy; the length and severity of the current financial marketdistress that began in September 2008; the ability to successfully accesscapital markets on favorable terms; the stability of commercial credit marketsand our access to short-term and long-term credit; the impact that increasesin leverage may have on us; our ability to maintain our current credit ratingsand the impact on our financial condition and ability to meet our cash andother financial obligations in the event our credit ratings are downgraded;our ability to fully utilize tax credits generated from the previousproduction and sale of qualifying synthetic fuels under Internal Revenue CodeSection 29/45K; the investment performance of our nuclear decommissioningtrust funds and the assets of our pension and benefit plans; the outcome ofany ongoing or future litigation or similar disputes and the impact of anysuch outcome or related settlements; and unanticipated changes in operatingexpenses and capital expenditures. Many of these risks similarly impact ournonreporting subsidiaries. All such factors are difficult to predict, contain uncertaintiesthat may materially affect actual results and may be beyond our control.