October 1, 2008

Progress Energy Carolinas Offers New Carbon-Offset Program to Its Customers

RALEIGH, N.C., Oct. 1 /PRNewswire-FirstCall/ -- Progress Energy Carolinas and NC GreenPower announced today that their North Carolina customers now have a simple way to offset, or balance, the impacts their personal carbon dioxide (CO2) emissions have on the environment. The new program, which allows customers to purchase carbon offsets with tax-deductible contributions on their monthly electric bills, is one more way the company is helping its customers protect the environment while managing energy costs.

(Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )

"We are committed to working with our communities to address the challenges of growing energy demand and global climate change. This program helps our customers to take action and reduce their personal carbon 'footprint' even as we are working to reduce ours on a company level," said Lloyd Yates, president and CEO of Progress Energy Carolinas. "For the last five years, our partnership with NC GreenPower has given our customers the opportunity to support renewable energy resources in our region. We are pleased to expand this relationship to now offer carbon offsets."

Everyone's daily activities, whether it's driving, flying or watching television, produce CO2 emissions. The carbon-offset program will take the monthly contributions and use them to fund projects that will prevent or capture CO2 or other greenhouse gas emissions. Examples of carbon-offset projects that are being considered include the collection and combustion of methane gas from landfills and reforestation initiatives. NC GreenPower will select projects that meet strict criteria defined by the Environmental Defense Fund, thus ensuring customer contributions are actually making a difference.

Each tax-deductible contribution of $4 will be used to offset, or mitigate, 500 pounds of carbon dioxide or carbon dioxide equivalent emissions. This is approximately the same as not driving for two weeks, for an average driver. For more information or to sign-up, visit http://www.progress-energy.com/ncgreenpower .

Progress Energy is working to reduce its CO2 emissions in several ways, including:

   -- Investing in new renewable and alternative energy projects, such as the      two 1-megawatt solar projects announced this summer   -- Pursuing license renewals for our existing hydroelectric and nuclear      power plants, which are important sources of reliable, carbon-free      electricity   -- Investing in new advanced-design nuclear power   -- Increasing the use of biofuels and hybrid vehicles in our corporate      fleet   -- Improving the efficiency in our corporate buildings through measures      such as installing compact fluorescent lighting   -- Funding research into innovative technologies, such as plug-in hybrid      electric vehicles and renewable energy storage technology   -- For more information on the company's actions to address global climate      change, please visit http://www.progress-energy.com/environment    

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 is observing its 100th anniversary in 2008. Progress Energy includes two major utilities that serve approximately 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 serves two fast-growing areas of the country, and the company is pursuing a balanced strategy for a secure energy future. That balance 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 http://www.progress-energy.com/ .

Photo: NewsCom: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-cAP Archive: http://photoarchive.ap.org/PRN Photo Desk, [email protected]

Progress Energy

CONTACT: Progress Energy Corporate Communications 24-Hour Media Line,+1-919-546-6189

Web site: http://www.progress-energy.com/http://www.progress-energy.com/ncgreenpowerhttp://www.progress-energy.com/environment