1. Securing our Energy Future
Bill Johnson
Bill Johnson
Chairman, President and CEO
Chairman, President and CEO
Lehman Brothers
Lehman Brothers
CEO Energy/Power Conference
CEO Energy/Power Conference
September 4, 2008
September 4, 2008
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2. Caution Regarding
Forward-Looking Statements
This presentation includes information that is forward-looking in
nature. Many factors could cause the actual results to be
materially different than the forward-looking information provided.
These factors are discussed in more detail in the Company’s
most recent Form 10-K and Form 10-Qs.

3. Major Discussion Topics
1. Strategy overview
2. Near-term outlook
3. Nuclear expansion

4. Profile of who we are:
Two High-Performing Electric Utilities
North Carolina
Progress Energy Carolinas
• 12,400 MW capacity
• Over 1.4M customers
• 2.2% cust. growth (7-yr CGR)
• $4.4B total revenue
• $12B total assets
South • 5,000 employees
• 34,000 sq. mile service area
Carolina
• 18 plants, 82 units
Progress Energy Florida
• 9,400 MW capacity
Florida • Over 1.7M customers
• 2.2% cust. growth (7-yr CGR)
• $4.7B total revenue
• $13B total assets
• 4,000 employees
Service Area
• 20,000 sq. mile service area
• 14 plants, 65 units

5. Strategy Overview

6. Reaffirm core strategic focus:
Regulated Electric Utility Business
Achieve financial objectives
Progress Energy Carolinas while excelling in fundamentals
PGN Leverage prospects for growth
Adapt to new energy landscape
Progress Energy Florida and changing business model
Integrated Energy Company Serving the Carolinas and Florida
Foundation
Power Power Customer
Power
Generation Transmission Service
Delivery
>21,000 MW serving 3.1M customers
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7. Power Sector’s Challenge
Addressing both
climate change and demand growth
in new era of rising costs
while maintaining
a secure supply, reliable service and
affordable prices
and creating
shareholder value

8. PGN Balanced Solution Strategy

9. Strategic Agenda and Outcomes
Agenda Outcomes
1) Investor confidence to
1) Achieve annual EPS growth
enable access to capital
of 4-5%
2) Strong financial and
2) Excel in the fundamentals
operational foundation for
3) Pursue Balanced Solution growth
to secure energy future
3) Positioned for carbon-
4) Confront new energy constrained world
realities together
4) Effectively meeting needs
5) Sustain financial strength of customers
and flexibility during Levy
5) Ready to adapt to evolving
construction
business model
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10. Near-Term Outlook

11. Significant Rate Base Growth
Even Prior to New Nuclear
Progress Energy Carolinas¹ Progress Energy Florida²
2008-2010E
2008-2010E
CAGR
CAGR
18%
4% $9,000
$9,000
2001-2007 CAGR
Retail Rate Base (x 1M)
Retail Rate Base (x 1M)
$8,000
$8,000 5.0%
$7,000
$7,000
2001-2007 CAGR
$6,000 $6,000 4.1%
$5,000 $5,000
$4,000 $4,000
$3,000 $3,000
$2,000 $2,000
$1,000 $1,000
$0 $0
2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E 2001 2002 2003 2004 2005 2006 2007 2008E 2009E 2010E
Retail rate base Clause-related
(1) PEC rate base includes Clean Smokestacks Act expenditures in excess of $813M.
(2) PEF rate base excludes Levy County nuclear capital expenditures.

12. Major Near-Term Capital Projects
(1) Capital expenditures exclude AFUDC.
(2) Replacing 444 MW of oil steam units for a net increase of 715 MW.
(3) Company requesting NCUC to permit rate-basing expenditures above $569M.

13. Regulatory Update
Florida
Carolinas
• No general rate case • Current rate settlement
expected near-term expires end of 2009
• Clean Smokestacks update • Aug. 29 – Filed annual fuel,
nuclear and environmental
• Sept. 16 – NCUC hearing costs with FPSC
on annual fuel case (Nov. 4-6 hearing)
• Sept. 17 – NCUC hearing: • Sept. 11-12 – FPSC
- REPS cost recovery hearing on nuclear cost
recovery
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14. Nuclear Expansion

15. A Well-Established, High-Performing
Nuclear Generation Fleet: 4,323 MW
Crystal River (1 PWR unit)
Brunswick (2 BWR units)
1977
1975-1977
838 MW (1)
1,875 MW (1)
91.78%
81.67%
ownership
ownership
Robinson (1 PWR unit)
Harris (1 PWR unit)
1971
1987
900 MW (1)
710 MW
83.83%
100%
ownership
ownership
(1) Capacities include joint owners’ share.

16. Strong Case for New Nuclear in U.S.
Federal climate policy expected in 2009-2010
Need for new baseload generating capacity
Need for fuel diversity and energy security
Nuclear is the only proven carbon-free,
baseload option that can be delivered at scale

17. Even Stronger Nuclear Case in Florida
Progress Energy Florida
Increasing nuclear share:
• reduces fuel costs
Purchased Oil/Gas 32%
• reduces price volatility
23%
• helps address carbon challenge
• strengthens fuel supply security
Nuclear
14% Coal
31%
Generation Output Mix in 2007
Output

18. Supportive Florida Legislation 2006:
Nuclear Investment Recovery
Pre-construction and licensing
Capacity cost recovery clause (CCRC)
Costs are recovered dollar for dollar
During construction
AFUDC is recovered through CCRC
8.848% AFUDC rate is locked until commercial operation
Annual prudence reviews
Completion
Base rate adjustment at in-service for capital costs
ROE and capital structure based on last approved
(currently 11.75% ROE on 57.8% equity)
Project cancellation cost recovery

19. Levy Nuclear Project in Florida
Location Technology # of units Capacity (MW) In Service
Levy County, Westinghouse Unit 1: 2016
2 ~2,200 total
Florida AP1000 Unit 2: 2017
• 8 miles NE of our Crystal
River Energy Complex
• Negotiating joint ownership
with multiple parties (1)
• Negotiating engineering,
procurement & construction
(EPC) agreement with
Westinghouse and Shaw
• Site prep & pre-construction
begin ~2010; safety-related
construction begins 2012
(1) Confidentiality obligations preclude us from discussing this further until19 negotiations are completed.
the

20. Regulatory Timeline for Levy Project
Mar. May June July Aug. Sept. Oct.
April
2008 2010 2012
Need Case Filed Hearing Vote Order
Cost Recovery Filed Hearing Order
Site Certification Filed (15 - 18 month review) Issued
Combined License Filed (3 - 4 year review) Issued
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21. Conclusion

22. Business Model for a “Pure Play”
Regulated Integrated Electric Utility
Sustain Operational Deliver Customer
Deliver Customer
Sustain Operational
Excellence Satisfaction
Satisfaction
Excellence
• Safety & environmental • Reliable and
• Safety & environmental • Reliable and
performance responsive service
Achieve Long-Term
performance responsive service
Financial Objectives
• Fleet performance • Affordable rates
• Fleet performance • Affordable rates
• Cost performance • Corporate citizenship
• Cost performance • Corporate citizenship
• Annual EPS growth ~ 4 - 5%
• Annual EPS growth ~ 4 - 5%
• Continue dividend growth
• Continue dividend growth
• Preserve investment-grade
• Preserve investment-grade
credit rating
credit rating
• Annual TSR of 8 - 10%
• Annual TSR of 8 - 10%
(at constant P/E)
Leverage Growth Maintain Constructive
(at constant P/E)
Leverage Growth Maintain Constructive
Prospects Regulation
Prospects Regulation
• Organic growth • Cost recovery
• Organic growth • Cost recovery
• Rate base expansion • Proactive proceedings
• Rate base expansion • Proactive proceedings
• Balanced approach • Open communications
• Balanced approach • Open communications

23. Value Proposition:
A Superior Risk-Adjusted Return
Attractive dividend yield with growth commitment
Long-term earnings growth supported by sales and rate
base growth
Clear business model with successful execution history
Balance sheet and credit metrics support strategy
A solid, low-risk, long-term holding

24. Q&A