2. Caution Regarding
Forward-Looking Statements
F d L ki St t t
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
py
10-K and 10-Q forms.
3. Major Di
M j Discussion Topics
iTi
St ateg c ge da
Strategic Agenda
Financial Overview
Balanced Strategy for Growth
Regulation and Public Policy
4. Profile of who we are:
Two High-Performing Electric Utilities
T Hi h P f i El t i Utiliti
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
• 5,000 employees
South • 34,000 sq. mile service area
• 18 plants, 82 units
Carolina
Progress Energy Florida
• 9,400 MW capacity
Florida • ~1.7M customers
• 2 2% cust. growth (7
2.2% t th (7-yr CGR)
• $4.7B total revenue
• $13B total assets
• 4,000 employees
• 20,000 sq. mile service area
, q
Service Area
• 14 plants, 65 units
5. Core Strategic Focus
Foc s
Progress Energy ● Achieve financial objectives
Carolinas
while excelling in fundamentals
PGN ● Ad t to new energy landscape
Adapt t ld
Progress Energy
● Leverage prospects for growth
Florida
Integrated Energy Service Company
Serving the Carolinas and Florida
Power Power Power Customer
Generation Transmission Delivery
y Service
6. Strategic A
St t i Agenda
d
Achieve long-term annual EPS growth of 4-5%
g g
Excel in the fundamentals
Pursue Balanced Solution to secure energy future
Confront new energy realities together with
gy g
regulators, policymakers and customers
Sustain financial strength and flexibility during
g y g
nuclear construction
7. Critical S
C iti l Success Factors
Ft
Safety &
Operational
Excellence
Financial
Financial
Objectives
Objectives
STRONGER
A Balanced
A Balanced
Solution Financial
Employee
FUTURE
Solution
Engagement & Strategy Objectives For Customers,
,
Strategy Shareholders
Performance for Growth
for Growth and Employees
Customer
Customer
Satisfaction
Satisfaction
Constructive
Regulation &
Public Policy
8. Long-Term Financial Objectives
L T Fi i l Obj ti
Achieve our 4-5% EPS growth objective
g j
Preserve an investment grade credit rating
Maintain dividend growth
Keep rate increases reasonable to customers
p
Fund Levy and capital investments in the rest of
the business
9. 2008 O
Ongoing E
i Earnings G id
i Guidance
$ 95 $3 05 per share
$2.95 - $3.05 pe s a e
$2.91 trailing 12-month ongoing EPS
4Q-07 actual EPS of $0.40 included:
♦ 2¢ unfavorable weather
¢
♦ 13¢ regulatory depreciation / amortization
(Harris, CSA and GridSouth)
10. Strong Liquidity Position*
St Li idit P iti *
$ in millions
PGN Revolving Credit Facilities Debt Maturity Profile
Program Term Amount Expiration Issuer 2009 2010 2011 2012
PGN 5 Years $ 1,130 5/3/12 PGN $ – $ 100 $ 700 $ 450
PEC 5 Years 450 6/28/11 PEC 400 6 – 500
PEF 5 Years 450 3/28/11 PEF – 300 300 –
Total $ 400 $ 406 $1,000 $ 950
$ 2,030
* As of September 30, 2008.
11. Critical S
C iti l Success Factors
Ft
Safety &
Operational
Excellence
Financial
Objectives
Employee STRONGER
A Balanced
Employee
FUTURE
Solution
Strategy g g
Engagement &
Engagement & For Customers,
,
Shareholders
Performance
Performance
for Growth and Employees
Customer
Satisfaction
Constructive
Regulation &
Public Policy
12. Critical S
C iti l Success Factors
Ft
Safety &
Operational
Excellence
Financial
Objectives
STRONGER
A Balanced
Employee
A Balanced Solution FUTURE
Solution
Engagement & For Customers,
,
Strategy
Strategy for Growth Shareholders
Performance
for Growth and Employees
Customer
Satisfaction
Constructive
Regulation &
Public Policy
14. Energy Efficiency and Alternative Energy
E Effi i d Alt ti E
Energy Efficiency and DSM Alternative Energy
• NCUC approved four new programs • North Carolina solar
– EnergyWise – 1 MW on former landfill in
– Residential Home Advantage Haywood County
– CIG New Construction – 1.2 MW at our Sutton Plant near
– CIG Retrofit-Custom Wilmington
– 1 MW at SAS in Cary
• NCUC reviewing Distribution System
• Plug-in hybrid electric vehicle
Demand-Response (DSDR)
– Invest $260M by 2012 partnership with NC State University
– Reduce peak demand by 250 MW
• Florida PPAs
• NCUC hearing on rider scheduled for – 40 MW biomass
December 17-18, 2008 – 60 MW municipal solid waste
Note: CIG = Commercial, Industrial, and Government.
15. Significant Rate Base Growth
Even Prior to New Nuclear
E Pi t N Nl
Progress Energy Carolinas¹
g gy Progress Energy Florida²
g gy
2008-2010E
2008-2010E
CAGR
CAGR
18%
5% $,
$9,000
$9,000
2001-2007 CAGR
$8,000
$8,000 5.0%
$7,000
$7,000
Retail Rate Base (x 1M)
Retail Rate Base (x 1M)
2001-2007 CAGR
$6,000
, $6,000 4.1%
4 1%
$5,000 $5,000
$4,000 $4,000
$3,000 $3,000
R
R
$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 $584M.
2. PEF rate base excludes Levy County nuclear capital expenditures.
16. CapEx Driving Earnings Growth – On Track
Total Project
j Cumulative Spent
p Expected
p
Major Generation Projects CapEx through 9/30/08 Completion Date
Carolinas
Clean Smokestacks $1.5-1.6B $ 986M 2013
Wayne County CT 90M 17M June 2009
Richmond County CCGT
600M 45M June 2011
(incl Transmission)
Florida
Environmental $ 1.2B $ 745M May 2010
Bartow Repowering
p g
690M 602M June 2009
(incl Transmission)
CR3 Nuclear Uprate 365M 73M Dec. 2011
CR3 Steam Generator
245M 110M Dec. 2009
Replacement
Note: Total project capital expenditures based on current estimates and exclude AFUDC.
17. Levy Nuclear Project in Florida
L Nl P j t i Fl id
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 and pre-construction
begin ~2010/11; safety-related
construction begins 2012/13
g
(1) Confidentiality obligations preclude us from discussing this further until the negotiations are completed.
18. Critical S
C iti l Success Factors
Ft
Safety &
Operational
Excellence
Financial
Objectives
Constructive STRONGER
A Balanced
Employee
FUTURE
Regulation &
Solution
Engagement & For Customers,
,
Strategy
for Growth Policy
Public Shareholders
Performance
and Employees
Customer
Satisfaction
Constructive
Regulation &
Public Policy
19. Regulatory Update
R lt Udt
Carolinas
♦ Clean Smokestacks amortization
♦ Harris depreciation
♦ Proposed fuel settlement in North Carolina
Florida
♦ Cost recovery includes the following clauses:
– Levy Nuclear Approved on
– CR3 Uprate Oct. 14, 2008
– Fuel
– Capacity Hearings held
– Environmental Nov. 4-6, 2008
– Energy Conservation
♦ Rates effective January 1, 2009
20. Supportive Florida Legislation 2006:
Nuclear I
Nl Investment Recovery
t tR
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 57.83% common equity)
Project
P j t cancellation cost recovery
ll ti t
22. Near-Term Financial Outlook
N T Fi i l O tl k
Maintain st o g liquidity pos t o
a ta strong qu d ty position
On track to achieve 2008 ongoing earnings
guidance of $2 95 - $3 05 per share
$2.95 $3.05
23. Long-Term Financial Objectives
L T Fi i l Obj ti
Achieve ou 4-5% EPS g o t object e
c e e our 5% S growth objective
Preserve an investment grade credit rating
Maintain dividend growth
Keep rate increases reasonable to customers
Fund Levy and capital investments in the rest
of the business
f th b i
26. Credit F iliti C
C dit Facilities Consortium*
ti *
$ in millions
Bank Total
J.P. Morgan Chase $ 225.0
Bank Tokyo-Mitsubishi 200.0
Barclays Capital 190.5
Bank of America 190.0
190 0
Citigroup 180.0
Wachovia 175.5
Royal Bank of Scotland 169.0
Bank of New York Mellon 120.0
120 0
SunTrust 115.0
Morgan Stanley 100.0
Goldman Sachs 100.0
Deutsche Bank
D thB k 95.0
95 0
UBS 80.0
BNP Paribas 50.0
BB&T 25.0
First Tennessee 15.0
Total $ 2,030.0
*As of September 30, 2008.
27. Current C dit R ti
C t Credit Ratings*
*
Moody’s Investors Standard Fitch
Services & Poor’s Ratings
Progress Energy
Outlook Stable Stable Stable
Corporate Credit Rating -- BBB+ BBB
Senior Unsecured Debt Baa2 BBB BBB
Commercial P
C i l Paper P-2
P2 A-2
A2 F-2
F2
Progress Energy Carolinas
Corporate Credit Rating A3 BBB+ A-
Commercial Paper P-2 A-2 F-1
Senior Secured Debt A2 A- A+
Senior Unsecured D bt
SiU d Debt A3 BBB+ A
Preferred Stock Baa2 BBB- A-
Progress Energy Florida
Corporate Credit Rating A3 BBB+ A-
Commercial Paper P-2 A-2 F-1
Senior Secured Debt A2 A-
A A+
Senior Unsecured Debt A3 BBB+ A
Preferred Stock Baa2 BBB- A-
FPC Capital I
Preferred Stock** Baa2 BBB- --
Progress Capital Holdings
Senior Unsecured Debt*** Baa1 BBB --
* As of November 5, 2008.
** Guaranteed by Progress Energy, Inc. and Florida Progress Corporation.
*** Guaranteed by Florida Progress Corporation.
