Progress Energy Florida Says Plant Expansion Expected to Save Money

Crystal River uprate estimated to save customers more than $2.6 billion in

fuel costs



22 Sep, 2006, 01:00 ET from Progress Energy Florida

    ST. PETERSBURG, Fla., Sept. 22 /PRNewswire/ -- Progress Energy Florida
 (PEF) has asked state regulators to approve increasing the output of the
 utility's Crystal River nuclear plant, a proposal that is expected to save
 billions of dollars for customers.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
 Increasing the plant's gross output from 900 megawatts (MW) to 1,080 MW
 will be enough to serve an additional 110,700 homes. (Based on
 approximately 615 homes per MW, the higher-output plant could serve about
 664,200 homes.) Because nuclear energy is the most cost-effective way to
 generate electricity, the uprate is expected to save customers more than
 $2.6 billion in gross fuel costs through 2036.
     "This innovative project is another way we are managing the rising
 costs of fossil fuels used to generate electricity," said Jeff Lyash,
 president and CEO of Progress Energy Florida. "Our diverse fuel mix of
 coal, oil, natural gas and nuclear already helps mitigate fuel-price
 volatility. Investing in and maximizing the efficiency of our power plants
 - especially our highly reliable and cost-effective nuclear unit - supports
 our balanced approach to meeting growing customer demand for safe, reliable
 and economical power."
     If approved by the Florida Public Service Commission, the uprate will
 take place in two stages: 40 MW will be added after equipment modifications
 during the 2009 refueling outage, and 140 MW will be added after upgrades
 to the reactor during the 2011 refueling outage. The project is estimated
 to cost about $382 million, which includes potential transmission-system
 improvements and compliance with environmental regulations.
     The Crystal River uprate project is not related to the company's plans
 to possibly add another nuclear plant in Florida. As previously announced,
 the company is evaluating sites for additional generation, including a
 potential nuclear unit, to meet Florida's growing needs for electricity.
 PEF's service area grows by about 30,000 to 40,000 new homes and businesses
 each year, and the company is planning now to ensure the infrastructure is
 in place to provide reliable service for future generations.
     Progress Energy Florida, a subsidiary of Progress Energy (NYSE:   PGN),
 provides electricity and related services to more than 1.6 million
 customers in Florida. The company is headquartered in St. Petersburg, Fla.,
 and serves a territory encompassing over 20,000 square miles including the
 cities of St. Petersburg and Clearwater, as well as the Central Florida
 area surrounding Orlando. Progress Energy is the 2006 recipient of the
 Edison Electric Institute's Edison Award, the industry's highest honor, in
 recognition of its operational excellence. In 2005, the company also
 received the prestigious J.D. Power and Associates Founder's Award for
 dedication, commitment and sustained improvement in customer service. For
 more information about Progress Energy, visit the company's Web site at
 www.progress-energy.com.
     Caution Regarding Forward-Looking Information:
     This document contains forward-looking statements within the meaning of
 the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995. Forward-looking statements, by their very nature, involve
 assumptions, risks and uncertainties that could cause actual results or
 outcomes to differ materially from those expressed in the forward-looking
 statements. For example, the expected amount of savings as a result of the
 plant expansion is based on various assumptions concerning usage and costs
 of fuel. The actual savings could differ from expected savings in the event
 that circumstances lead to a change in those assumptions. Any
 forward-looking statement speaks only as of the date such statement is
 made, and we undertake no obligation to update any forward-looking
 statement or statements to reflect events or circumstances after the date
 on which such statement is made.
 
 

SOURCE Progress Energy Florida
    ST. PETERSBURG, Fla., Sept. 22 /PRNewswire/ -- Progress Energy Florida
 (PEF) has asked state regulators to approve increasing the output of the
 utility's Crystal River nuclear plant, a proposal that is expected to save
 billions of dollars for customers.
     (Logo: http://www.newscom.com/cgi-bin/prnh/20020923/CHM008LOGO-c )
 Increasing the plant's gross output from 900 megawatts (MW) to 1,080 MW
 will be enough to serve an additional 110,700 homes. (Based on
 approximately 615 homes per MW, the higher-output plant could serve about
 664,200 homes.) Because nuclear energy is the most cost-effective way to
 generate electricity, the uprate is expected to save customers more than
 $2.6 billion in gross fuel costs through 2036.
     "This innovative project is another way we are managing the rising
 costs of fossil fuels used to generate electricity," said Jeff Lyash,
 president and CEO of Progress Energy Florida. "Our diverse fuel mix of
 coal, oil, natural gas and nuclear already helps mitigate fuel-price
 volatility. Investing in and maximizing the efficiency of our power plants
 - especially our highly reliable and cost-effective nuclear unit - supports
 our balanced approach to meeting growing customer demand for safe, reliable
 and economical power."
     If approved by the Florida Public Service Commission, the uprate will
 take place in two stages: 40 MW will be added after equipment modifications
 during the 2009 refueling outage, and 140 MW will be added after upgrades
 to the reactor during the 2011 refueling outage. The project is estimated
 to cost about $382 million, which includes potential transmission-system
 improvements and compliance with environmental regulations.
     The Crystal River uprate project is not related to the company's plans
 to possibly add another nuclear plant in Florida. As previously announced,
 the company is evaluating sites for additional generation, including a
 potential nuclear unit, to meet Florida's growing needs for electricity.
 PEF's service area grows by about 30,000 to 40,000 new homes and businesses
 each year, and the company is planning now to ensure the infrastructure is
 in place to provide reliable service for future generations.
     Progress Energy Florida, a subsidiary of Progress Energy (NYSE:   PGN),
 provides electricity and related services to more than 1.6 million
 customers in Florida. The company is headquartered in St. Petersburg, Fla.,
 and serves a territory encompassing over 20,000 square miles including the
 cities of St. Petersburg and Clearwater, as well as the Central Florida
 area surrounding Orlando. Progress Energy is the 2006 recipient of the
 Edison Electric Institute's Edison Award, the industry's highest honor, in
 recognition of its operational excellence. In 2005, the company also
 received the prestigious J.D. Power and Associates Founder's Award for
 dedication, commitment and sustained improvement in customer service. For
 more information about Progress Energy, visit the company's Web site at
 www.progress-energy.com.
     Caution Regarding Forward-Looking Information:
     This document contains forward-looking statements within the meaning of
 the safe harbor provisions of the Private Securities Litigation Reform Act
 of 1995. Forward-looking statements, by their very nature, involve
 assumptions, risks and uncertainties that could cause actual results or
 outcomes to differ materially from those expressed in the forward-looking
 statements. For example, the expected amount of savings as a result of the
 plant expansion is based on various assumptions concerning usage and costs
 of fuel. The actual savings could differ from expected savings in the event
 that circumstances lead to a change in those assumptions. Any
 forward-looking statement speaks only as of the date such statement is
 made, and we undertake no obligation to update any forward-looking
 statement or statements to reflect events or circumstances after the date
 on which such statement is made.
 
 SOURCE Progress Energy Florida